After a decade of negotiations and talks, Australia and China are going to enter into a free trade agreement together. The deal will be drafted and signed in 2015 and will promote the existing economic relations between the countries.
This deal will benefit Australia, for it will provide local winemakers, dairy farmers, and other professionals tariff free access to Chinese markets. 85% of Australian export to China (including beef, leather and minerals) will be freed from tariffs. The Chinese market is quite substantial in size and it will prove to be a goldmine for Australian suppliers in the future. China, on the other hand, will be able to export shoes, vehicles, clothes and electronics into Australia, duty free. China will also be able to invest up to the tune of 1.02 billion in the Australian market, without being subject to governmental review. Regulations in the service sectors of both the countries will be loosened.
Australia has been promoting it’s relationship with South Asian countries over the past few years. The area is valuable in terms of trade, and in terms of market. This is the third economic fair trade agreement Australia has signed with a South Asian country in the past year- previously, treaties were signed with South Korea and Japan.