SOURCE: THE BULLETIN PANAMA
Food products, manufacturing and tourism are sectors that Australians will benefit from this treaty, according to the Australia China Business Council.
Australia and China signed a free trade agreement after more than ten years of negotiations. Its aim is to boost growth and job creation by reducing tariffs in various sectors.
The trade ministers of Australia, Andrew Robb, and China, GAO Hucheng, signed the treaty in Canberra. Beijing has called it the most liberal it has negotiated. Robb emphasized that the agreement will open the Chinese market to Australian investment in primary sector products and services.
“This landmark agreement will bolster our current business relationship with our largest partner, and will be a catalyst for future growth through goods, services and investment,” said Robb. Australian Prime Minister. Tony Abbott said that with this agreement, along with others recently signed with Japan and South Korea, 95 percent of Australian exports will soon be free of tariffs.
“This is a single and historic day for our two countries. It changes our country for the better, our region will change for the better, our world will change for the better,” Abbott said after the signing.
China, which in early June signed a free trade agreement with South Korea, is the first trading partner of Australia with a flow of goods and services between the two countries that reached $160,000 million.
The agreement will allow 85% of Australian exports to enter the Chinese market free of duties, a figure that will increase to 95% once it has been fully implemented. So far, Australian products pay import rates of up to 40%. Australia, meanwhile, removed the 5% duty on Chinese electronics and appliances.