But a free trade agreement with China will also strengthen Australia`s competitiveness without exporting resources and promote export diversification. As was generally expected, ChAFTA has notably gained better access to China`s emerging agriculture and services markets. This should help Australia revive growth towards non-resource resources – a significant economic padding when the mining boom ends. With ChAFTA, China offered Australia its best service obligations to date in a free trade agreement (with the exception of China`s agreements with Hong Kong and Macau). Others, which successfully guarantee free trade agreements with China, have benefited from a sharp increase in trade flows. For example, Chinese imports from New Zealand have increased by more than 450% since the entry into force of the China-New Zealand Free Trade Agreement in October 2008. China`s total imports increased by only 50% over the same period (Chart 6). The Phase 1 trade deal between Xi Jinping and Donald Trump is “the other disruptive factor” in the current environment, she said, because it forced China to buy a certain amount of goods from the United States, “which means they won`t buy this from us or anyone else.” Australia and China signed the China-Australia Free Trade Agreement (ChAFTA) on 17 June 2015, which will enter into force on 20 December 2015. Trade negotiations have secured many future benefits for Australian business with Australia`s largest trading partner, China.

It is mainly those who work in the agriculture, manufacturing, services, investment, resources and energy sectors who benefit. China has also agreed to a special clause that recognizes Australia as a “most-favoured-nation” (MFN). This allows Australian companies to access the same agreements that China refuses to enter into in free trade agreements with other nations (such as the United States) that could offer better access to the Chinese market. Dr. Jeffrey Wilson, a research director at the Perth USAsia Center, said the free trade agreement reached by the Abbott government in 2015 “is not worth the paper it`s written on today,” given the steps Beijing is taking. The trade expert found that the WTO`s Appellate Body had already fallen behind schedule and had been hampered by the blocking of Trump`s appointments. It understood that it could be years before it was completed and that it had heard concerns from some exporters that such a measure could “make matters worse” in the wider trade dispute. “But on the other hand, how much worse can it be?” There will be a work and holiday agreement in which Australia will grant Chinese nationals up to 5,000 visas for work and holidaymakers.

[7] The free trade agreement was signed between the two countries on June 17, 2015 in Canberra, Australia. [4] The agreement will follow the usual treaty-making process, where it will enter into force when China reviews its domestic legal and legislative procedures and, in Australia, through the inter-two-three treaties of the Australian Parliament and the Senate Committee on Foreign Affairs, Defence and Trade References. [4] Madeleine King, spokeswoman for the Trade Policy Lab, also strongly supported the Morrison government`s plan to take China to the World Trade Organization over barley tariffs, a move that trade experts have warned could take up to three years. ChAFTA will strengthen export momentum and give Australian exports an advantage over major competitors from the US, Canada and the EU. It also puts Australia on an equal footing with competitors from countries like New Zealand and Chile, which have already negotiated trade deals with China. After nearly a decade and 21 rounds of intensive negotiations, Australian Prime Minister Tony Abbott and Chinese President Xi Jinping shook hands this week on a comprehensive free trade agreement. . . .