China and Australia have sealed a major free trade agreement worth billions، giving both nations equally fruitful benefits.
This free trade agreement would serve for the Australian agricultural sector to have tariff free access to massive Chinese markets، while China would benefit in greater access to investment projects in Australia.
Ministers from both nations signed on the Declaration of Intent، reaching the finale of decade-spanned works towards the deal، but it will not be effective before the end of 2015، when all the legal points have been drafted and translated regarding the partnership.
“This has been a 10-year journey، but we have finally made it،” Prime Minister Tony Abbott stated with joy، at ceremony in Canberra.
Meanwhile، Chinese President Xi Jingping has said in a statement، that China government will take effort and steps to deepen cooperation with Australia and other nations as well.
Mr. Xi said that the agreement would “create a high-level platform and provide better institutional arrangements for our economic cooperation. The Chinese government is ready to enhance dialogue and co-operation with relevant countries to jointly maintain freedom of navigation and safety of maritime rules،”.
The key winners from this deal are the Australian agricultural sector، particularly dairy farmers and winemakers who would be able to enjoy tax and tariff free access into the Chinese market.
This agreement would allow Chinese to export their already set transaction of clothes and electronics، tariff free to Australia، and also for its investors given power play to invest in Australia. Forecasted threshold of investment is expectant to rise، from $216 million to $1.078 billion in Australia.