The benefits for Australians exporting goods to China are significant and extend to the removal or reduction of tariffs, larger quotas for certain limited goods, and streamlined custom processes. A total of 98% of Australian products exported to China are admitted tax-free or at preferential prices. Essentially, the negotiated terms have given Australia a significant competitive advantage in the Chinese market over some of our major competitors such as the United States, Canada, the EU and New Zealand, particularly in our agri-food and processing sector. The main results are that the new innovative Investment Facilitation Agreements (IFAs), which will operate under Australia`s current visa system, will also provide businesses with greater flexibility to respond to unique economic and labour market challenges. The IFA will be available for large infrastructure projects of more than $150 million, which will strengthen investment in this key area and create jobs and greater economic prosperity for all Australians. The China-Australia Free Trade Agreement (ChAFTA) came into force on December 20, 2015. Australian Trade and Investment Minister Andrew Robb, a signatory to ChAFTA, said: “This historic agreement with our largest trading partner will support future economic growth, job creation and a higher standard of living by increasing trade in goods and services and investment. China, with its 1.4 billion people and rapidly growing middle class, offers Australian businesses huge opportunities for the future. ChAFTA will strengthen export dynamics and give Australia`s exports an advantage over major competitors from the United States, Canada and the EU. In addition, Australia is likened to competitors from countries such as New Zealand and Chile, which have already negotiated trade agreements with China. The China-Australia Free Trade Agreement (ChAFTA) came into force on December 20, 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 the key industries of agriculture, agriculture, mining, manufacturing and a wide range of services.
Others, who have succeeded in securing free trade agreements with China, have benefited from a sharp increase in trade flows. For example, China`s imports from New Zealand have increased by more than 450% since the China-New Zealand Free Trade Agreement came into force in October 2008. China`s total imports increased by only 50% over the same period (Chart 6). ChAFTA offers Australia significant preferential market access: more than 85% of Australian products exported to China (in value terms in 2013), now come into force duty-free after entry into force and increase to 93% after four years and 95% if chAFTA is fully implemented. ChAFTA gives Australia an advantage over our major agricultural competitors, including the United States, Canada and the European Union.