At last, after spending a decade with efforts in certain settlements, China has opened its markets having the opportunities worth billions of dollars for Australia, said Australian government.
There is a free trade agreement (FTC) signed between both the countries during the short address of Chinese President Xi Jinping to Canberra’s parliament.
This FTC will certainly bring huge opportunities mainly for dairy and cattle farms, agriculture and other sectors to enjoy the tariff-free trading with one of the World’s biggest market China in the upcoming years. In the mean time, China is finding out bright opportunities for its potential investments in Australia.
The president of China attended the G20 summit in his bilateral visit to Australia. He addressed the parliament by showing its intention for peaceful trading development with Australia and others.
Tax-free trading:-
Ministers from China and Australia signed a Declaration of Intent on Monday, however the agreement will be signed in 2015 after the draft is translated and legally reviewed, a statement said.
Both the ministries have signed over an undertaking of intent on last Monday, and will duly seal the agreement in 2015, once the draft would be thoroughly verified and translated, statement passed by ministry’s spokesperson.
Tony Abbott, Prime Minister of Australia talked about the deal saying, “it is a first that brings closer a gigantic economy alongside a major economy. China has never signed such a comprehensive charter with any country across the world before this.”
Parliamentary Secretary Josh Frydenberg said the agreement meant "up to 95% of our exports over time will enter the Chinese market tariff-free".
This free trading agreement will prove to be a sparkling break mainly for the Australian dairy and beef sectors which will be facilitated from tax-free trading. The secretary of parliament Josh Frydenberg reported that the agreement shows that equivalent to 95% of the trading with China will be passed through a ‘tariff-free environment’.
During the last two decades, the bilateral trading relationships between two countries has achieved substantial pace and now the situation shows that China has become the leading mutual trading partner of Australia, stated by Australian Department of Foreign Affairs and Trade.
The total trade taking place between China and Australia was valued at A$150bn in 2013 and this agreement will add A$20bn into that figure, however, the complete set of benefits is about to be released, said Foreign trade ministry.
Australia seems to increase its dairy and agriculture trading with china as a result of this deal but unfortunately, the state was unsuccessful to get the tax exemption over the products like rice, sugar, wheat and cotton.
The senior member of Australia’s Liberal party and a senator, Bill Heffernan informed the “Say No!” statement of Chinese president that staying afloat currently in Australian territory will definitely give them a major edge.
In his speech to Canberra parliament, Mr Xi shared his views that China is willing to resolve all the geographical issues with its neighboring states through diplomatic dialogues. He further stated that “China never believes on the use of power for attaining strategic goals.”