Trade and Investment Minister Andrew Robb. (Photo Credit: Government of Australia/FIS
AUSTRALIAWednesday, November 19, 2014, 01:30 (GMT + 9)
China-Australia Free Trade Agreement (ChAFTA) will offer substantial new benefits for Australians, such as economic gains, jobs and higher living standards through the reduction of the tariffs to zero over four years.
“Australian businesses will have unprecedented access to the world’s second largest economy. It greatly enhances our competitive position in key areas such as agriculture, resources and energy, manufacturing exports, services and investment,” the Minister for Trade and Investment’s release stated.
Trade and Investment Minister Andrew Robb and Commerce Minister Gao Hucheng have signed a Declaration of Intent in the presence of Australian Prime Minister Tony Abbott and Chinese President Xi Jinping at Parliament House in Canberra.
Both countries have undertaken to conduct respective legal reviews of the concluded text and prepare Chinese and English language versions for signature in 2015.
According to General Manager Trade and Market Development with the Australian Seafood Cooperative Research Centre, Jayne Gallagher, with the successful conclusion of the China FTA, the industry will increase its market development efforts and focus on building preference for Australian seafood products, businesses.com informed.
"We will be able to compete on a level playing field. The winners from the FTA include the consumers in China who will be able to purchase Australia’s premium quality seafood at a more affordable price,” pointed out Gallagher.
On full implementation of ChAFTA, more than 85 per cent of Australian goods exports will be tariff free, rising to 93 per cent in four years. Some of these goods are currently subject to tariffs of up to 40 per cent.
Among Australia’s products that will be traded without tariffs are those from the dairy industry, beef and lamb, horticulture products. Besides, the restrictive tariffs affecting a wide range of seafood, including abalone, rock lobster, and southern bluefin tuna will also cease within four years.
The ministerial release reported that a key feature of ChAFTA is a built-in mechanism to allow for further liberalisation and the expansion of market access over time, including a first review mechanism within three years. This places Australia in a strong position to secure additional gains as China undergoes further economic reform into the future.
“ChAFTA contains investment provisions which will boost and diversify our bilateral investment relationship with China. The Chinese Government estimates total outbound investment of USD 1.25 trillion over the next 10 years,” the release adds.
According to South Australian Rock Lobster Advisory Council executive officer Justin Phillips the agreement will allow their industry to better compete with other countries like New Zealand and Chile, who already enjoy full access to that lucrative Chinese market, ABC Rural informed.
Another sector that welcomes the measure is the Northern Territory Seafood Council, who hopes the free trade agreement with China will open up export opportunities for Top End barramundi.
Like many in the primary sector, Shawn McAtamney, general manager for Independent Seafood Producers (ISP), would have preferred an immediate end to the tariffs. But he believes the tariff removal will also enable a wider range of product to be exported.