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      Economy

      China-Australia FTA to boost economic ties

      1
      2015-06-18 10:33Xinhua Editor: Gu Liping

      China and Australia inked a landmark free trade agreement (FTA) on Wednesday after a decade of negotiations, opening up fresh business opportunities for the two countries.

      The China-Australia FTA (ChAFTA), signed by Chinese Commerce Minister Gao Hucheng and Australian Trade and Investment Minister Andrew Robb, is expected to provide the catalyst for future growth across a range of areas including goods, services and investment.

      "The signing of the ChAFTA will provide a better platform and an improved institutional guarantee for the two countries to complement each other with advantages and conduct close win-win cooperation," said Chinese President Xi Jinping in a message to Australian Prime Minister Tony Abbott.

      Xi said China will work with Australia to take the opportunity to promote sustainable and stable development of the comprehensive strategic partnership as well as peace and prosperity in the region and the world.

      While addressing the signing ceremony, Gao said the ChAFTA has "monumental significance" in bilateral relations and will "boost economic cooperation and provide strong impetus to the economic growth of the two countries."

      Of all such agreements involving China, it contains "the highest level of overall trade and investment liberalization", Gao noted.

      "The agreement secures better market access for Australia to the world's second largest economy, improves our competitive position in a rapidly growing market, promotes increased two-way investment and reduces import costs," said Robb.

      According to the pact, more than 85 percent of goods trade will be tariff-free on day one of the ChAFTA, rising to over 95 percent on full implementation after a transitional period.

      Iron ores and concentrates, coal, gold, education-related travel services and copper are China's top five imports from Australia, while clothing, telecom equipment and parts, computers, furniture, toys and sporting goods are the top five exports.

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