China Australia Free Trade Agreement Meaning

171. The ChAFTA includes a binding mechanism for the settlement of disputes between States, which is consistent with previous free trade agreements and the WTO system. Most of Australia`s substantive obligations in the area of chafta are governed by this mechanism, with the exception of those contained in the chapters on electronic commerce; sanitary and phytosanitary measures; technical barriers to trade; and certain aspects of the free movement of natural persons. 148. The most important commitment under the Australian Investor Advantage Investment Chapter is that China undertakes to extend to Australian investors the most favourable treatment it accords to any other investment partner in a subsequent agreement. As a result, Chinese calls for better access to investment and more short-term work visas have proven electorally unpopular and politically uninsurent for both coalition authorities and Australian laboratories. The free trade agreement has also faced stiff opposition from Australian manufacturing and trade unions, who fear competition from cheap Chinese products and labour. In mid-2012, the stalemate in the negotiations led Craig Emerson, then trade minister, to announce that Australia would only seek a partial free trade agreement focused on agriculture. However, replacing Julia Gillard as prime minister in July 2013, Kevin Rudd prioritized the signing of a comprehensive free trade agreement. 14. Not only does chAFTA give Australian exporters a direct competitive advantage over countries that do not have trade agreements with China, but it also contains an integrated program to negotiate further market access and liberalization in the future. 139.

For the first time, China has made comprehensive treaty commitments with respect to financial services, including the approval of provisions on transparency, regulatory decision-making and tightening of applications for licences for financial services. China also pledged to establish a future work programme to enable continued market access in the financial services sector, while advancing economic reform and liberalization. Under the Free Trade Agreement, a Financial Services Committee is established, which provides for regular cooperation between Chinese and Australian financial supervisors on issues of mutual interest and will enable issues arising from bilateral financial services relations to be addressed quickly and effectively. The China-Australia Free Trade Agreement (ChAFTA) entered into force on 20 December 2015. This first free trade agreement (FTA) gives Australia a considerable advantage in its trade relations with China, now the world`s largest economy. The potential benefits to Queensland will be significant in key industries of agriculture, agriculture, mining, manufacturing and a wide range of services. 183. Australian agricultural stakeholders were widely consulted throughout the negotiations, including through close communication with high-level industry federations, particularly during the final phase of the negotiations.

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