The China-Australia Free Trade Agreement is in Australia's national interest? Premier Albert Boao Forum supports it
"Chinatown"-Official media of Chinese Australians
On the morning of July 7th, the 30 Boao Financial Services Forum was grandly opened in Sydney. More than 2015 representatives from 28 countries and regions in the Asia-Pacific gathered at Four Seasons Hotel Sydney. In his opening speech, Australian Prime Minister Abbott once again expressed his firm support for the China-Australia Free Trade Agreement, emphasizing the core significance of trade liberalization in promoting Australia's economic growth, and urged the Labor Party to stop slandering the China-Australia FTA.
ACB News "Australia Finance Online" reported that Abbott said that the core driving force of the country’s economic development lies in trade, and Australia’s prosperity stems from trade. “We can become more prosperous and influential because we have seized many trade opportunities. ". Abbott first reviewed the history of the China-Australia FTA. He mentioned that in 2001, the then Prime Minister of Australia, Mr. Bob Hawke, participated in the creation of the Boao Forum for Asia. He recognized more deeply and earlier than many others that Australia’s future prosperity lies in its trade cooperation with China. . Subsequently, driven by the efforts of former Prime Minister John Howard, China and Australia formally launched FTA negotiations.
"After ten years of negotiations, Australia is about to realize Mr. Hawke's vision. The China-Australia Free Trade Agreement will be passed by the Congress in the next few months and will come into effect," he said. The decisive significance is essential to our long-term prosperity, just like the Australian dollar’s floating exchange rate system and the deregulation of the banking industry in the 80s.”
China-Australia FTA benefits Australia's agriculture, mining, and financial services industries
The China-Australia FTA will remove the export tariff barriers faced by Australian agricultural products, covering beef, dairy, lamb, red wine, gardening and seafood. The Australian Meat and Livestock Association (MLA) expects that the meat and livestock industry will receive 110 billion Australian dollars in economic benefits over the next ten years. 99.9% of Australia's resources, energy and manufacturing products will gradually achieve zero tariffs within four years. According to estimates by the Australian Mining Association, the tariff cost savings in bilateral mineral energy trade can be as high as nearly A$6 million.
The signing of the China-Australia FTA will benefit Australia and China at the same time, and promote the development of the Asia-Pacific region and the world in a better direction. "(China-Australia FTA) will bring job growth to Australians for generations to come, open new markets for our companies, and bring investment opportunities that can create win-win results for the Chinese and Australian people," Abbott said. This is an agreement that is extremely equal in nature. Our two countries will gain unprecedented market access to each other."
It is worth noting that compared with any other FTA partner country in China, Australia has obtained the most extensive and in-depth market access, and its trade flexibility is second only to Hong Kong and Macau Special Administrative Regions. Australian banks will be able to open branches in China, Australian funds can make overseas investments on behalf of qualified Chinese institutions, and Australian insurance companies can provide third-party motor vehicle insurance services in China.
"There are more than 40 people in the financial services industry in Australia. The signing of the China-Australia FTA will make their jobs more secure and bring new development opportunities to this important industry," Abbott said.
In the China-Australia FTA, Australia has significantly relaxed the approval thresholds for Chinese private companies to invest in Australia, and China will be able to enjoy a competitive position with other major Australian trading partners. Australian investors investing in China will be protected by the investor-state investment dispute settlement mechanism. Abbott pointed out that similarly, the provisions on labor mobility in the FTA are designed to protect the integrity of the domestic labor market and allow companies to hire skilled workers in labor shortage areas.
Australia’s opposition Labour Party recently challenged the Coalition in the form of a vote in the National Convention. The leader of the Labour Party Bill Shorten claimed that the China-Australia FTA had “major flaws” and hoped to revise the agreement document on the introduction of overseas labor standards, salary status and Requirements for skills testing.
In response, Abbott said in his speech that all people working in Australia will comply with Australian salary levels and working environment regulations, and must meet Australian qualifications. "This is both fair and reasonable, and we have reached an agreement on this."
At present, Australia's negotiations on the Pan-Pacific Strategic Partnership Agreement (TPP) have entered the final and most critical stage. Abbott stated that the China-Japan-Korea FTA and TPP, "These free trade agreements are extremely important to our country, to our business, and our children and grandchildren, and must not be sacrificed on the short-sighted political altar of xenophobia."
"I hope our opposition party will no longer be confined to old ideas and indulge in the fear of the past."
South Korea-Australia, Japan-Australia free trade agreement is positive
The benefits of free trade are clearly visible. The free trade agreement between Australia and China, Japan and South Korea covers nearly 40% of Australia's bilateral trade in goods and services. Although the Korea-Australia Free Trade Agreement and the Japan-Australia Free Trade Agreement came into effect for only a few months, they have clearly stimulated the growth of Australia’s exports.
In the last 12 months, Australia's exports of frozen high-quality beef cuts to South Korea have increased by 34%, and exports to Japan have increased by 56%. The export of macadamia nuts to South Korea more than doubled, and the export of rolled oats to Japan increased by 66%. Exports of red wine, lamb meat, gardening and other products all increased to varying degrees.
Sydney-based nutraceutical company RBK Nutraceuticals' export sales to a large customer in South Korea increased 170% in a year. The China-Australia FTA will come into effect soon, and the inquiries received by RBK from China are also increasing. South Australia’s Barossa Valley winery Seppeltsfield has recently concluded several deals, and sales of high-end red wines to China will more than triple to 400 million liters, accounting for about 10% of Australia’s total red wines to China (related links).
Abbott said the above-mentioned companies, as well as thousands of other companies across Australia, are confirming that FTA can promote stronger business development and create more jobs for Australians. "With the current global economy full of uncertainties, I am often asked about the future of the Australian job market. I think the answer is very clear: future jobs should be found in the future market. All our efforts around the free trade agreement All are to enter a better market, promote trade, and increase employment."
He called on the Labor Party to cherish the memory of history and listen to the voices of the sages: "As former Minister of Trade Simon Crean said,'World trade can double the economic growth. If people want to find employment opportunities, obtain higher incomes, open trade It is the only way."
Abbott cautioned that the Labour Party faced a personality test: it first welcomed the China-Australia FTA, but now wants to stop it. The China-Australia FTA agreement has been reached. Backlashes and changes to any part will bring huge risks to Australian business, exports and employment.
The Australian government’s industry modelling study revealed that if the China-Australia FTA fails to follow the timetable set by Minister Rob, Australian producers will suffer hundreds of millions of losses (for details, see "Labor Party hinders China-Australia FTA being criticized for ignoring industry interest").
For a long time, Australia has not only achieved its own prosperity by exporting coal, iron ore and natural gas to Asian markets, but also made important contributions to regional resource, food and energy security.
Abo pointed out that freer trade is the key to achieving a strong and prosperous economy and building a safe and stable Australia. It will strengthen and deepen the friendly relations between Australia and countries in the region. "Australia has nothing to lose, it must gain."
Article reprinted from ACB News "Australia Finance Online"
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