The China-Australia Free Trade Agreement (ChAFTA) was signed in June 2015 after about a decade of negotiations between the two countries. This agreement has been hailed by both nations as a significant milestone in promoting trade and investment between them.
Under the trade agreement, Australia now enjoys tariff reductions on a wide range of exports to China, including its main exports such as beef, dairy, wine, and barley. The agreement also provides greater access to the Chinese market for Australian service providers, such as education and healthcare providers.
In turn, China also benefits from the agreement by gaining greater access to Australia’s natural resources and agricultural products, such as wool, cotton, and minerals. Additionally, the agreement allows Chinese investors to invest up to A$1.15 billion in non-sensitive agricultural projects without requiring approval from the Australian government.
The agreement has been a boon for Australian businesses, particularly those in the agriculture sector. Since the agreement’s implementation, Australian exports to China have increased substantially. The two countries have also forged closer economic ties, with Chinese investment in Australia growing significantly in recent years.
However, the ChAFTA has not been without controversy. Some critics have raised concerns about the impact of the agreement on Australian jobs, arguing that the increased competition from Chinese imports could harm local industries. There have also been concerns about the impact of Chinese investment on Australia’s sovereignty and national security.
Despite these concerns, the ChAFTA remains a significant achievement for both nations. By facilitating greater trade and investment between China and Australia, the agreement has helped to strengthen their economic relationship and promote mutual prosperity. As both countries continue to grapple with the fallout from the COVID-19 pandemic, the ChAFTA is likely to play an increasingly important role in their economic recovery efforts.