China Aus Free Trade Agreement

ChAFTA will enhance trade and investment between countries by reducing barriers to labour mobility and improving temporary access to temporary access within the existing immigration and employment safeguards of each country. The Australian government will use the trade bloc, modelled on the European Union in the Indopapacific region, to re-enter China into multilateral negotiations and end trade disputes that have affected a dozen Australian industries and threatened $20 billion in exports. If fully implemented, 99.9% of Australia`s resource, energy and production exports will be dumped in China duty-free. The China-Australia Free Trade Agreement (ChAFTA) came into force on December 20, 2015. Australian Trade and Investment Minister Andrew Robb, a signatory to ChAFTA, said: "This historic agreement with our largest trading partner will support future economic growth, job creation and a higher standard of living by increasing trade in goods and services and investment. China, with its 1.4 billion people and rapidly growing middle class, offers Australian businesses huge opportunities for the future. ChAFTA will strengthen export dynamics and give Australia`s exports an advantage over major competitors from the United States, Canada and the EU. In addition, Australia is likened to competitors from countries such as New Zealand and Chile, which have already negotiated trade agreements with China. After nearly a decade and 21 rounds of intense negotiations, Australian Prime Minister Tony Abbott and Chinese President Xi Jinping this week launched a sweeping free trade agreement. ChAFTA exports 85% of Australia`s exports to China duty-free after entry into force, with an increase of 93% in four years and 95% if fully implemented.

Although many details are not yet complete (official documents will be signed in 2015), the government estimates that the agreement will generate $18 billion in economic benefits (1.1% of GDP) over a decade. Senator Birmingham said the RCEP is the world`s largest free trade agreement, accounting for 30% of global GDP and 30% of the world`s population. This is the first time that major trading partners china, South Korea, Japan and Australia have joined together to reach an agreement that reduces dependence on a patchwork of bilateral agreements. ChAFTA offers significant benefits to Australia`s energy resources and exports. With the entry into force, 93% of Australia`s resources, current energy and industrial exports will enter China duty-free and 99.9% if fully implemented. It is important that the recently introduced 3% coking rate be immediately abolished and that the 6% tariff for thermal coal be abolished within two years. The trade agreement between Xi Jinping and Donald Trump is "the other disruptive factor" in the current context, she said, because it required China to buy a certain amount of goods from the United States, "which means they won`t buy that from us or anyone else."