Home / Knowledge / News / Textiles / Australia, China conclude negotiations for FTA
Australia, China conclude negotiations for FTA
17
Nov '14
Australian Prime Minister Tony Abbott has announced the completion of negotiations for a China-Australia free trade agreement (FTA). Subsequently, Australian Trade and Investment Minister Andrew Robb and Chinese Commerce Minister Gao Hucheng signed a Declaration of Intent, undertaking to prepare the legal texts in both languages for signature.
 
Under the deal, said to be ‘the deal of a lifetime for Australia’s economy’, 85 per cent of all Australian exports will enter China duty-free. This will rise to 93 per cent within four years and 95 per cent when the deal is fully in force in more than a decade. Some of these goods are currently subject to tariffs of up to 40 per cent.
 
Under the FTA, China will get better access to Australian wool, while Australia will get Chinese textiles and apparel at lower prices.
 
“China-Australia FTA will add billions to the economy, create jobs and drive higher living standards for Australians,” said Abbott. “Australian businesses will have unprecedented access to the world’s second largest economy. It greatly enhances our competitive position in key areas such as agriculture, resources and energy, manufacturing exports, services and investment,” he added.
 
The negotiations for the China-Australia FTA have been going on since 2005 and it covers a complex series of agreements on agricultural tariffs and quotas, manufactured goods, services and investment.
 
China is Australia’s largest trading partner, with bilateral trade in goods and services crossing Au$150 billion in 2013—a substantial increase from about one-fourth of this amount of trade between the two countries a decade ago.
 
Australia’s Department of Foreign Affairs and Trade said rapid urbanisation and a growing middle class in the country of over 1.36 billion makes the FTA “vital to Australia’s future economy and prosperity”.
 
Meanwhile, the Australian Wool innovation (AWI) has welcomed the finalisation of the China-Australia FTA. In addition to the existing Tariff Rate Quota (287M kg on raw wool at 1%), the FTA delivers a duty free Country Specific Quota (CSQ) of 30M kg clean wool. The CSQ is to increase by 5 per cent compound pa over 8 years to 45M kg, AWI said.
 
About 75 per cent of Australian raw wool is exported to China, and in 2013, the value of Australian wool exports to China was $1.9 billion, according to AWI.
 
In recent months, Australia has signed similar agreements with Japan and South Korea. (RKS)
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search