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Business Connections
Connect with Australia China businesses through our online marketplace. Job Connections
A new way for Australians and Chinese to find employment in each others countries.
Events Connections
Click images below for the many EVENTS in China and Australia
Book Connections
The site to find the many books on China.
Back Issues
| FTA is an achievable goal | | Print | |
| Nov/Dec 2008 | |
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There is every reason to believe a free trade agreement between Australia and China is possible writes ACBC chairman, Kevin Hobgood-Brown. Since the initiation of Free Trade Agreement discussions with China over three years ago,the ACBC has been a staunch supporter. Since the 11th round of negotiations held in Beijing in late June, commitments have been made by both sides to re-intensify the work of the negotiating teams. By committing ourselves to a China FTA that is comprehensive and that addresses all aspects of our respective economies, negotiations have necessarily focused on sensitive areas, such as access of Australian service providers to the domestic Chinese economy and the flow of Chinese labour into the Australian economy, to name just two. During an address to an ACBC supported luncheon in Brisbane last month, Mr. Long Yongtu, the former head of China's negotiating team for WTO accession, emphasized the sensitivity of agriculture to China - an activity in which hundreds of millions of Chinese citizens still earn their livelihood. There are areas of sensitivity on both sides, yet with some mutual flexibility and firm commitments over time, a comprehensive agreement is possible. An FTA with China provides us with the opportunity to create the right conditions for our bilateral economic relationship to grow and diversify. It will provide a framework in which many of the other things that Australians are good at, such as our service industries and agriculture, can participate in the expanding Chinese economy on an equal footing with their domestic Chinese counterparts. Currently, resources are our largest export to China. We can be justifiably proud of our resources industry, but our domestic economy is essentially driven by the services sector, which represents 80 percent of the employment in Australia. Services are the potential future of our economic relationship with China. The services sector in China is substantially smaller than is normally found in OECD countries. Australian service providers can play a very constructive role in growing and enhancing the competitiveness of the Chinese services sector. This will create more jobs at home and create a deeper engagement between our respective economies. But in order for Australian services providers to pursue these opportunities, a number of barriers to market entry in China need to be relaxed or eliminated. This is a principal goal of our negotiators in the FTA talks. Similar opportunities and challenges exist for Australian agriculture, which is also a key thrust of the negotiations. Common ground has been identified in some areas, but the real challenge is ahead of us in forging sensible compromises that will allow our two economies to continue to benefit from each other's strengths. The current phase of the FTA discussions take place in an environment in which Chinese investment in Australia is increasing. At an ACBC event in Melbourne recently, Treasurer Wayne Swan confirmed that our long standing advocacy of free and open trade and investment remains solid. Recent decisions of the Foreign Investment Review Board have demonstrated this commitment. Increased Chinese investment in Australia adds a new element to the FTA discussions, particularly as many Australian companies seeking to invest in China continue to struggle with market entry barriers. Significant benefits to both economies will result from a reduction of these barriers over time. Negotiating an FTA with China is an important trade priority of the Rudd government, but success will require significant further work.ACBC members will have an opportunity to hear a first-hand assessment of the FTA progress from Trade Minister Simon Crean when he delivers the annual China Oration in Melbourne on December 8. We are honoured to have Minister Crean deliver the China Oration this year and hope to see you at this important event. ■ For more information on this event please contact the ACBC Victoria Branch T: +61 3 9347 3939 or E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
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