Chinese Minister of Commerce Gao Hucheng and Australian Minister of Trade and Investment Andrew Robb formally signed the Free Trade Agreement between the Government of the People’s Republic of China and the Government of Australia on June 17 in Canberra, Australia, on behalf of the governments of the two countries. Australian Prime Minister Abbott attended the signing ceremony. After 10 years of free trade negotiations, Australia has officially entered the palace of “marriage” in free trade with China.
Negotiations on the China-Australia Free Trade Agreement were launched in April 2005 and lasted for ten years. Through the joint efforts of both parties, President Xi Jinping and Australian Prime Minister Abbott jointly confirmed and announced the substantive conclusion of the negotiations during the state visit to Australia in November 2014. The official signing of this agreement has laid the foundation for the two countries to perform their respective domestic ratification procedures and make the agreement effective as soon as possible.
According to the preliminary prediction of the Australian Center for International Economic Research, the China-Australia Free Trade Agreement will boost Australia’s GDP growth by 0.7% and China’s GDP growth by 0.1%. Xu Hongcai, director of the Economic Research Department of the China Center for International Economic Exchange, pointed out that the conclusion of the free trade agreement negotiations with Australia will play a demonstrative role in the free trade agreement negotiations with Japan.
The China-Australia Free Trade Agreement covers more than a dozen fields such as goods, services, and investment, and has achieved the goal of “comprehensive, high-quality, and balanced interests”. It is the overall level of trade and investment liberalization that my country has negotiated with other countries so far. One of the highest free trade agreements.
In the field of goods, both sides have products that account for 85.4% of the export trade volume and will immediately achieve zero tariffs when the agreement comes into force. After the transitional period of tax cuts, Australia will eventually achieve zero tariffs and the proportion of trade volume will reach 100%; China will achieve zero tariffs and the proportion of trade volume will reach 96.8% and 97%, respectively. This greatly exceeds the 90% tax reduction level in general free trade agreements.
According to preliminary estimates, after the signing and implementation of the China-Australia Free Trade Agreement, China’s exports to Australia will receive a total of approximately US$1.66 billion in tariff reductions. Within three years of the agreement’s entry into force, approximately US$1.6 billion in tariff reductions will be realized. As far as Australia is concerned, its exports to China will receive approximately US$1.01 billion in tariff reductions, of which approximately US$300 million can be reduced or exempted on the effective date of the agreement.
In the bilateral trade between China and Australia, the proportion of industrial products, especially energy ores products, is very high. On the day of signing, my country’s imported coking coal and alumina tariffs will be reduced from 3% and 8% to zero from the date of entry into force of the agreement. Tariffs on imported Australian thermal coal will be reduced from 6% to zero within two years.
Australia is a major developed economy with a large economic aggregate and a major exporter of global agricultural products and energy and mineral products. It has a mature market economy system and a matching legal system and governance model. The signing of the China-Australia Free Trade Agreement is an important and solid step taken by my country in accelerating the process of forming a global-oriented high-standard free trade area network. It will comprehensively deepen reforms for my country under the “new normal” and build a new open economic system. Will play an important role in promoting. The China-Australia Free Trade Agreement is also a free trade agreement signed between my country and another important economy in the Asia-Pacific region after South Korea. This is of great significance for promoting the regional comprehensive economic partnership (RCEP) and the Asia-Pacific Free Trade Area (FTAAP) process, as well as accelerating the process of economic integration in the Asia-Pacific region, and achieving common regional development and prosperity.
The signing of the China-Australia Free Trade Agreement is an important milestone in the development of economic and trade cooperation between China and Australia. China and Australia have always been important trade and investment partners for each other. The bilateral economic and trade relations have developed rapidly, and the scale of trade and investment has continued to expand. In 2014, the bilateral trade volume between China and Australia was 136.9 billion US dollars, 16 times that of 2000. As of the end of 2014, the total amount of Chinese investment in Australia was approximately US$74.9 billion. At present, Australia is my country’s second largest destination for overseas investment after Hong Kong. my country is Australia’s largest trading partner in goods, the largest source of imports and the largest export destination. After the China-Australia Free Trade Agreement takes effect, it will further promote the flow of funds, resources and personnel exchanges between the two countries, and promote the complementary economic advantages of the two countries to develop in a lasting and in-depth direction, which will benefit the industries and consumers of the two countries and benefit the people of the two countries. .
This is another positive signal for my country, which is embarking on the Made in China 2050 plan, in the industrial field. According to the statistics of the Casting Order Network, the quotations of some orders involving imported ore have begun to decrease, and the duty-free market for raw materials has implications for die-casting manufacturers based in the field of casting. Profound.