Tuesday, 2 June 2015
Who will benefit from the China-Australia Free Trade Agreement (ChAFTA)
Prime Minister Abbott and President Xi announced the conclusion of negotiations for the China-Australia Free Trade Agreement (ChAFTA) on 17 November 2014. The agreement will unlock substantial new opportunities and benefits for Australians.
Australian companies will have significantly improved access to China’s market. Here are the key areas and industries that will benefit from the Free Trade Agreement:
l Elimination of tariffs on beef, sheep meats imports within 9 years and 8 years respectively
l Elimination of tariffs on dairy products
l Elimination of tariffs on wine within 4 years
Resources, Energy and Manufacturing
l Elimination of tariffs on all resources and energy products
l Elimination of tariffs on vitamins, health products and pharmaceutical products
Trade in services
l Australian law firms will be allowed to link up with Chinese law firms in the Shanghai Free Trade Zone (SFTZ).
l China will list 77 Australian private higher education institutions registered on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS)
l Australian companies will be allowed to invest in specified value-added telecommunications services in the SFTZ. These commitments provide greater certainty for Australian telecommunications investments in the SFTZ.
l Australian service providers will be allowed to construct, renovate and operate whole Australian-owned hotels and restaurants in China
l China will permit Australian medical service suppliers to establish wholly Australian-owned hospitals and profit-making aged care institutions in China.
Is your business well positioned before you tap into the China consumer market and benefit from the Free Trade Agreement? Are you considering setting up a China entity (Wholly Owned Foreign Enterprise) to facilitate the investment and trading activities between Australia and China?
Need more information?
John Barclay -Email
Teresa Tam - Email
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