Australia and China set to sign free trade deal

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Agriculture Minister Barnaby Joyce refused to reveal details of the deal, but said he was confident it would be “extremely well received”.

Australia and China were expected to ink a multi-billion dollar free trade deal later Monday (Nov 17) during a visit by President Xi Jinping, officials said.

Agriculture Minister Barnaby Joyce refused to reveal details of the deal, but said he was confident it would be “extremely well received”. The FTA would boost agricultural exports and help counter the downturn in mining which hurts the Australian economy.

“If we can alleviate that in some way by exports in dairy and exports of beef and exports of wine, horticultural produce, fish, then that is a good outcome for us,” Joyce told ABC radio.

The Australian Financial Review said the agreement “will liberate more than 90 per cent of Australian exports from tariffs over the next four years”.

Australian financial services providers would have access to China second only to that of providers in Hong Kong and Macau, both part of China. This would include sectors such as banking, securities, futures and insurance, the daily said.

The Sydney Morning Herald said the deal should open up “billions of dollars in new markets for Australian exporters”. It would allow dairy farmers tariff-free access to China’s lucrative infant formula markets without restrictive safeguard caps that apply to New Zealand.

Existing 30 per cent tariffs on Australian wine sold to China would be eliminated over four years, the Herald said. China is Australia’s biggest trading partner, with the two-way flow exceeding A$150 billion (US$131 billion).

The trade talks began in 2005, but stalled last year over agriculture and China’s insistence on removing investment limits for state-owned enterprises. Over the past year Australia has sealed free trade deals with Japan and South Korea.

With China’s insistence on removing investment limits for state-owned enterprises, the two sides have struggled to seal agreement with Beijing since talks began in 2005.

The scheduled post-G20 summit visit by President Xi became a target to finalise the marathon negotiations. Xi was due to address the Australian parliament in Canberra on Monday afternoon.

Parliamentary Secretary to the Prime Minister Josh Frydenberg told ABC radio the FTA would prove “a game-changer” and be worth up to US$18 billion to the Australian economy over the next few years.

“It will supercharge our trade with China,” he said. “Up to 95 per cent of our exports over time will enter the Chinese market tariff free.” China sought greater access to invest in Australia, Frydenberg added.

The FTA is expected to cover an array of issues, including agricultural tariffs and quotas, manufactured goods, services, temporary entry of people and foreign investment.

Last week, Canberra unveiled a deal to ship to China one million Australian cattle worth A$1 billion (US$860 million) in an agreement that will double the size of the live export industry.

 

 

Source : Channel News Asia | November 17, 2014

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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One Response to Australia and China set to sign free trade deal

  1. shantiepc says:

    Reblogged this on EndPoint Consultants and commented:
    In our increasingly connected world it’s good to keep up with global business news.

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