The Australian and Chinese governments signed a long-awaited free trade agreement in a ceremony in Canberra on Wednesday, freeing up trade between the two countries.
The historic agreement, signed by Australia's Trade Minister Andrew Robb and China's Commerce Minister Gao Hucheng finalized negotiations that began ten years ago and followed the Declaration of Intent signed in November by the two countries' leaders, Australian Prime Minister Tony Abbott and Chinese President Xi Jinping.
In celebrating the signing on Wednesday, Abbott said that the China-Australia FTA (ChAFTA) signified a mutual trust between the two countries. He said the agreement was much more than just a deal with the world's coming economic superpower, it was "proof of Australia's trust in China."
"Today is a truly historic step forward in our comprehensive strategic partnership," Abbott said. "I hope all of you will remember today. One day we will be able to say to our children and grandchildren that, yes, we were there the day this extraordinary agreement was signed between our two countries."
A statement released by the Chinese government said the signing of ChAFTA was a significant development because, of all the free- trade agreements involving China, this one boasted "the highest level of overall trade and investment liberalization."
The statement said Australia was the second largest destination, after Hong Kong, for China's overseas investment. "It is expected ChAFTA will facilitate the flow of capital, resources and people and benefit industries and consumers in both countries," it said.
Upon full implementation of the agreement, tariffs will be lifted on 95 percent of Australian exports, hurdles will be lowered for Chinese businesses to invest in Australia and more visas granted for Chinese on working holidays.
Australians will soon benefit from the cheaper cost of electronics and whitegoods, and their spending on these items is expected to boost the economy.
Chinese consumers, meanwhile, should have great access to goods such as Australian beef, dairy products, wine and boutique whisky, as well as niche Australian products such as sea cucumbers, opal products and even deer velvet. The reduced tariffs on these items will make them much more affordable.
