Australian Free Trade Agreement With China

There will be a work and holiday agreement in which Australia will grant Chinese nationals up to 5,000 visas for work and holidaymakers. [7] The free trade agreement was signed between the two countries on June 17, 2015 in Canberra, Australia. [4] The agreement will follow the usual treaty-making process, where it will enter into force when China reviews its domestic legal and legislative procedures and, in Australia, through the inter-two-three treaties of the Australian Parliament and the Senate Committee on Foreign Affairs, Defence and Trade References. [4] Before entering the Chinese market, there are a number of factors to consider, including culture, politics and corporate etiquette. Austrade can help Australian companies become familiar with local market conditions and help develop export opportunities through a number of merchant and Australian services. Despite double-digit growth of about 7.5 percent, the IMF expects China`s $17.6 billion economy to overtake the United States this year and become the world`s largest in terms of purchasing power parity. For this purpose, Australian beef exports to China are currently taxed at almost 19%, while comparable exports from New Zealand enter the Chinese market almost duty-free. ChAFTA will thwart this advantage in the coming years and offer Australia the same conditions as those offered to any other country that signs a free trade agreement with China in the future. Deloitte has extensive experience in helping companies of all sizes manage governance and compliance issues raised by IFRS to achieve best practices. The establishment of the China-Australia Free Trade Area not only facilitates trade and investment between the two countries, but also contributes to the stability of development in the Asia-Pacific region and the liberalization of world trade. The first round of negotiations took place in Sydney on 23 May 2005.

ChAFTA also means that 95% of Chinese products imported into Australia will be duty-free after four years, resulting in considerable savings on entry components. This will reduce business costs and increase Australia`s export competitiveness. China is by far Australia`s largest market for energy resources and products. In 2013-14, Australia exported more than $90 billion in resources, energy, and industrial products to China.

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