China-Australia Free Trade Agreements
Frequently asked questions
China and Australia since the substantive conclusion of the FTA negotiations to the formal signing of the agreement, have carried out what work?
On November 17, 2014, during the state visit to Australia, President Xi Jinping, together with Prime Minister Abbot, confirmed and announced the substantive conclusion of the China-Australia FTA negotiations. The delegations of China and Australia subsequently launched a negotiated verdict and agreed to the text of the agreement.
On 5 February 2015, all the negotiating results were confirmed and the results of the negotiations were drafted. In June, all the legal texts of the Agreement were finalized and the parties had completed their respective domestic procedures for the formal signing of the agreement. The preparations for the formal signing of the agreement between the two countries are ready.
What is the significance of the signing of the China-Australia FTA?
The China-Australia FTA has achieved a comprehensive, high quality and balanced goal, which is of great significance.
The China-Australia Free Trade Agreement is an important decision made by the Party Central Committee and the State Council to implement the strategy of opening to the outside world. It is to implement the 18th Plenary Session of the 18th Central Committee of the Communist Party of China and to build a new system of open economy and to build a high standard free trade area network An important and solid step.
The signing of the agreement fully demonstrates that China has the confidence and ability to establish closer trade relations with the trading partners and will continue to deepen the reform and push forward the opening up.
China-Australia FTA will also comprehensively enhance bilateral economic and trade cooperation, further promote the flow of funds, resources and personnel between the two countries, and promote the economic complementarity between the two countries to a lasting and in-depth direction, so that both producers and consumers are widely beneficial. According to the Australian International Economic Research Center preliminary forecast, China-Australia FTA will pull Australia’s GDP growth of 0.7 percentage points, driving China’s GDP growth of 0.1 percentage points.
China and Australia together with major powers in the Asia-Pacific region and the world’s major economies, the FTA will provide a solid pedal for the Asia-Pacific Free Trade Zone (APTA) process, which was decided by the 22nd APEC informal meeting last year, to promote economic integration for the Asia-Pacific region Process, to achieve lasting stability and prosperity to play a positive role in promoting.
When will the China-Australia FTA be effective?
After the formal signing of the China-Australia FTA, the two countries will fulfill their respective domestic approval procedures. Upon completion of the ratification process, the two governments will determine the specific effective time through diplomatic channels and take notes with each other so that the agreement will enter into force as soon as possible.
What are the main characteristics of the China-Australia FTA as compared with other FTAs signed by China?
The China-Australia FTA is the first time that China has negotiated a free trade agreement with the major developed economies with large economic aggregates. It is also the highest free trade agreement between China and other countries that have signed trade liberalization.
In the area of trade in services, Australia is the first country to make a pledge of trade with China on a negative list. “Investment facilitation arrangements” is the first time that developed countries have made special facilities for engineering and technical personnel under Chinese investment.
As a result, the negotiations were officially launched in April. May 2005 to July 2013, the two countries held a total of 19 rounds of negotiations, made great progress at the same time, difficult problems have failed to achieve a breakthrough.
Australia is the second in the world through the FTA negotiations on the “holiday work visa arrangements” and Chinese professionals to make a commitment to my country, but also as of now to the relevant Chinese access to the largest number of developed countries.
Why China and Australia to sign a free trade agreement?
Australia is an important trade and investment partner in China. It is a well-known western member of China’s gross domestic product (GDP), the world’s top 12 developed economies, the OECD and the Group of Twenty, and has a mature market economy and a matching Legal system and governance model, in the Asia-Pacific region and the world has an important influence.
At present, China is Australia’s largest cargo trading partner, the largest source of imports and the largest export destination. Australia is China’s second largest overseas investment after Hong Kong’s second largest destination. China and Australia have strong economic complementarities and have great potential for cooperation in the fields of mineralization, agricultural products and industrial products. China and Australia signed a trade agreement to help further close trade and investment relations between the two countries, and better achieve mutually beneficial win-win situation.
How will the China-Australia FTA affect the economic and trade relations between the two countries?
The China-Australia FTA has greatly reduced the threshold of bilateral trade and investment, and established a more open, convenient and standardized institutional arrangement for the future development of bilateral economic and trade relations.
It will help deepen the potential of cooperation between the two countries, further promote the two-way flow of funds, resources and personnel, comprehensively promote and deepen bilateral economic and trade relations, enhance the level of cooperation, to enrich the comprehensive strategic partnership between the two countries to provide an important content.
China-Australia FTA will play a role in the economic integration of the Asia-Pacific region?
The 22nd APEC Leaders’ Informal Meeting Decided to Start the Asia-Pacific Free Trade Zone Process, China and Australia, while the Asia-Pacific region is an important country, the China-Australia FTA will be a solid foundation for the Asia-Pacific Free Trade Area and will help promote Asia-Pacific Economic integration process, to promote the Asia-Pacific economies, the depth of integration and common development.
China-Australia FTA in the field of goods trade to achieve the overall level of liberalization?
The China-Australia FTA has reached a high level of liberalization in the field of goods.
China’s 96.8% of the tariff will be liberalized, and the use of linear tax reduction is a simple and direct way to reduce the tariff, which 5 years to complete the tax reduction of 95% of the tax rate, the remaining product tariff transition period of not more than 15 years The
All of Australia’s products are fully taxed and liberalized to 100% in China, with 91.6% of tariffs falling to zero when the agreement comes into effect, 6.9% of the tariffs falling to zero in the third year of the agreement, and 1.5% Tariff duties are reduced to zero in the fifth year of the entry into force of the agreement.
From the perspective of trade, China’s liberalization of products from Australia’s imports accounted for 97% of total imports from Australia, which entered into force when the tariff is reduced to zero imports of products accounted for 85.4%, 5 years, tariffs reduced to zero Of the product imports accounted for 92.8%.
When the Australian Agreement comes into effect, the import of goods is reduced to zero, and the total import volume of China is 85.4%. The import of goods with zero tariffs in the three years is 98.4%. All tariffs will be reduced to zero in five years.
FTA signing date and Tax rate
- China – Georgia
- China – Australia
- China – South Korea
- China – Switzerland
- China – Iceland
- China – Costa Rica
- China – Peru
- China – Singapore
- China – New Zealand
- China – Chile
- China – Pakistan
- China – ASEAN
- China – Hong Kong – Macau
FTA process of negotiating
- China – GCC
- China – Japan and South Korea
- China – Sri Lanka
- China – Maldives
- China – Israel
- China – Norway
- China – Pakistan
- China – Singapore High grade
- China – New Zealand High grade
- China – Chile High grade