Decipher China-Australia FTA.docVIP

Decipher China-Australia FTA 　　Chinese president Xi Jinping had a meeting with Australian Prime Minister Tony Abbott in Canberra on November 17， after which the two announced the substantial end of the ChinaAustralia free trade agreement negotiation. This means after about 10 years’ efforts， the China-Australia free trade agreement negotiation finally came to a positive end. 　　China， the world’s second largest economy， is going to open its market to the Australian agricultural products and services， while Australia is going to ease the limitation over Chinese investment into its affluent resources. The agreement， which has the milestone significance， will bring about a lot of benefits to people and economic development of China and Australia in the next few years. 　　 Australian agricultural products as the biggest beneficiary 　　According to the agreement， Australia is to lower the tariff rate for all products from China to zero， while China is to do the same thing to most of the Australian products. Among them， more than 85% of the products exported from Australia will enjoy the zero tariff rate immediately the agreement takes effect. The proportion is going to be increased to 93% in four years， and 95% of the Australian products is free of tariffs when the agreement is fully implemented. 　　The Australian agricultural products are apparently the biggest beneficiary. China and Australia are hugely different from each other in the development level of agriculture. Particularly， when the food safety problem is getting increasingly prominent in China， there will be more advantageous agricul- tural products to China with the nullification of tariffs. 　　For example， China is going to lower the tariff rate for dairy products from Australia to zero in four to eleven years. According to David Dukes， the Commerce Counselor in Australian Embassy in China， the exports volume from of dairy products from Australia to China has doubled from 2008 to 2013. Last year the ex