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What Is The Trade Agreement Australia Made With China

ChAFTA will strengthen export momentum 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. In Australia, the debate is intense: is China repulsively against accusations that it has mistreated coronavirus? Could this be the beginning of a trade war as observed between the United States and China? Tariffs on Australian wine of 14 to 30 per cent are introduced within four years, while restrictive tariffs on a wide range of seafood products, including abalone, stone boom and southern bluefin tuna, will also be suspended within four years. For example, Australian beef exports to China are currently taxed at almost 19%, while comparable exports from New Zealand arrive almost duty-free in the Chinese market. In the coming years, ChAFTA will counteract this advantage and offer Australia the same terms as any other country that signs a free trade agreement with China in the future. Negotiations for a free trade agreement with China began in 2005 under the Howard administration and were languishing between 2007 and 2013. The benefits for Australians exporting goods to China are significant and extend to the removal or reduction of tariffs, larger quotas for certain limited goods, and streamlined custom processes. A total of 98% of Australian products exported to China are admitted tax-free or at preferential prices. Essentially, the negotiated terms have given Australia a significant competitive advantage in the Chinese market over some of our major competitors such as the United States, Canada, the EU and New Zealand, particularly in our agri-food and processing sector. Among the key results, 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. There will be a labour and leave agreement in which Australia will grant up to 5,000 visas to Chinese nationals for work and vacationers. [7] The free trade agreement between the two countries was signed on June 17, 2015 in Canberra, Australia. [4] The agreement will follow the usual contracting process, during which it will enter into force when China completes its domestic legal and legislative procedures and in Australia, the review by the Standing Committee on the Treaties of the Australian Parliament and the Committee on Foreign Affairs, Defence and Trade of the Senate. [4] Australia`s relationship with China is not happy at the moment.