China Free Trade Deal a win for region

The signing of Australia’s Free Trade Agreement with China will build on the positive outcomes already generated by recent trade deals with Korea and Japan; creating jobs, economic growth and greater prosperity in the region.Our FTAs with Korea and Japan are only months old and we are already seeing increased exports compared to a year ago, and the big thing for our region is the removal of coal tariffs,” Mr Christensen said.ChAFTA will remove tariffs on coal as well as almost all Australian resources and energy products and will also open up more opportunities for Australian services.This move is good news for the coal industry and will go a long way towards securing jobs for the workers of the Mackay region.The three per cent tariff on coking coal goes as soon as the FTA comes into play, and the six per cent tariff on thermal coal drops by two per cent immediately, with the remainder progressively phased out over two years.This deal gives us a market advantage with our largest resources partner, and eases pressure on the coal industry.Other benefits will flow to the region through significantly improved access for mining and extractive services.Businesses that provide technical and field services or consulting services in the resources industry will benefit under what is the best deal on services that China has offered to any FTA partner. Signed in Canberra by the Minister for Trade and Investment Andrew Robb and China’s Commerce Minister Gao Hucheng, the landmark China-Australia Free Trade Agreement (ChAFTA) secures improved market access to the world’s second largest economy for businesses – large and small.Under ChAFTA, 95 per cent of Australian goods exports will be tariff free when fully implemented.  This includes the abolition of tariffs on our clean, green, premium agricultural products, as well as on a range of Australian manufactured goods such as pharmaceutical products, car engines, plastic products and processed food.ChAFTA provides new or significantly improved market access in areas including banking, health & aged care, tourism, legal, construction, telecommunications and education services.ChAFTA not only improves our competitive position in a rapidly growing market; it also promotes increased two-way investment and reduces import costs including the removal of the five per cent tariff on Chinese manufacturing exports, electronics and white goods.Together with the Japanese and Korean agreements, ChAFTA will enhance our vital trade and investment relationships in the lucrative Asian region for decades to come.The full ChAFTA text is available online at: dfat.gov.au/chafta, along with detailed fact sheets and handy reference guides.