By Jonathan Pavetto, Consultant
The Chinese – Australia Free Trade Agreement (ChAFTA) has been celebrated as a major victory for the Australian Government, consumers and exporters – and rightly so. The Australian Government has secured the best ever market access provided to a foreign country on an economy-very wide range of products and services. The standout winners in this deal are certainly those in the farming community.
ChAFTA not only delivers on the core economic themes of the government (jobs and growth) but it also is a major win for consumers, with cheaper vehicles, household goods, electronics and clothing on its way to Australian shops.
Perhaps the most important part of ChAFTA is the lack of negative impact on the Australian economy. The agreement will open up the booming Chinese market to an economy-wide range of different sectors, while retaining its election commitments on inward investments by State Owned Enterprises (SOEs). The agreement will also boost jobs in export industries without undermining employment in existing industries, as the majority of Chinese imports are not produced in Australia anyway.
Adding to the other successes of the Japanese and Korean FTAs, key figures within the Australian Government should certainly be proud of their efforts.
For the key outcomes of the ChAFTA, follow this link: http://dfat.gov.au/fta/chafta/fact-sheets/key-outcomes.html