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China and Australia signed Free Trade Agreement

Nov 17, 2014 18:39 IST


China and Australia on 17 November 2014 signed Free Trade Agreement (FTA). The agreement was witnessed by the President of China Xi Jinping and Prime Minister of Australia Tony Abbott.  

It will ensure 85 percent of all exports of Australia will enter China tariff-free and will rise to 93 percent within four years and 95 percent when it is in full force.

The Free Trade agreement includes
• The agreement gives Australian dairy farmers, wine-makers and other sectors tariff-free access to the huge market of China within a few years.
• It will put eventual removal of tariffs on dairy products, live animal exports, resources and energy products.
• Tariffs on all resources and energy products will be removed within two years.
• Beef and sheep farmers will benefit from the abolition of tariffs ranging from 12-25 percent over next nine years.
• All tariffs on dairy products will be scrapped within four to eleven years.
• Lock in zero tariffs on major exports like iron ore, gold, crude petroleum oil and LNG.
• All tariffs on horticulture and live animal exports will be eliminated, while wine makers tariff will be cut up to 14-30 percent
• Wool producers will be able to export another 30000 tonnes of clean wool on top of existing quotas.
• However, cotton, wheat, sugar and rice and oilseeds industries have missed out.

The agreement will open up markets worth billions of dollars and create jobs for the both the countries. With this agreement Australian farmers will have advantage like New Zealand, Chile and ASEAN competitors who enjoyed the benefits of FTA with china.

Meanwhile, China is seeking greater access for its investment projects. China will pursue peaceful development with Australia and other nations.

Is this article important for exams ? Yes22 People Agreed
Read more Current Affairs on: China , Australia , Free Trade Agreement

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