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    The China Australia Free Trade Agreement Signed The Biggest Beneficiaries Of Shoes And Clothing Enterprises.

    2015/6/19 10:54:00 13

    China Australia FTAShoes And Clothing EnterprisesBenefit From

    After ten years of negotiations, the Sino Australian FTA agreement was finally formally signed. The signing will enable China to export Australian goods to enjoy higher tariff relief. According to the preliminary calculation, the reduction rate is 97%. Clothing, shoes and hats, Electronics and other labor-intensive products have become the biggest beneficiaries.

       The agreement is "high in gold content".

    The Sino Australian FTA agreement covers more than ten fields of goods, services, investments and so on. It has achieved the goal of "comprehensive, high-quality and balanced interests". It is one of the highest level of trade and investment liberalization agreements with other countries so far.

    In the field of goods, each side has 85.4% of the total volume of export trade, and will achieve zero tariff immediately when the agreement comes into effect. After the tax cut transition period, Australia will eventually achieve zero tariff ratio and trade volume ratio will reach 100%, and China will achieve 96.8% and 97% of the total tariff volume and trade volume respectively. This greatly exceeds the 90% level of tax reduction in general FTA.

    "No matter comparing the FTA signed by China with other countries, or comparing the FTA signed by Australia just with Japan and South Korea, China Australia FTA is at a relatively high level in terms of trade and investment liberalization, and has made a series of important breakthroughs." Industry experts say.

    In the field of service trade, Australia is the first country to make a pledge of trade in services with China's negative list. The "investment facilitation arrangement" is the first time that developed countries have made special facilitation arrangements for engineering and technical personnel in China.

       The five category of "made in China" is most beneficial.

    Tariff relief is the most important part of the FTA.

    According to the two sides agreement, China enjoys higher tariff relief products, mainly including clothing and Leatherwear Electronics and machinery, other manufactured goods, steel and metal products, and chemical products; Australia will receive higher tariff relief products that are concentrated in energy, steel and metal products, as well as beef, wool, other agricultural products and dairy products in agricultural products.

    Zhao Jianglin, a researcher at the Asia Pacific Research Institute of the Chinese Academy of Social Sciences, said in an interview with the Shanghai Daily reporter that "Australia's exports to China are mainly green agricultural products, while China's exports to Australia are mainly concentrated on industrial products. The trade structure of the two countries has strong complementarities, and the FTA will help stabilize trade between the two sides."

    According to preliminary estimates, after the signing of the Sino Australian free trade agreement, China's exports to Australia will receive a total tariff reduction of about 1 billion 660 million US dollars. The agreement will come into effect in about 3 years, which will be about 1 billion 600 million dollars or 96.45% of the tariff relief.

    "For China's export enterprises, Australia will eventually achieve zero tariff tariffs and trade volume will account for 100%, and the tax transition period is not more than 5 years. When the agreement comes into effect, the tariff and trade volume of agricultural products with zero tariffs will reach about 99%, and industrial products will reach about 91% and 81%. Our export products and enterprises will have better export opportunities. The relevant director of the Ministry of Commerce said.

    The responsible person further pointed out that China's textile, clothing and leather products, electronic and mechanical equipment, steel and metal products, minerals, chemical and transport equipment and other products will have greater export growth potential, and the export scale will further expand.

    At the same time, the implementation of FTA in China and Australia is likely to make beef, beverages and tobacco products. Textiles, Apparel and leather products, minerals, chemicals and transportation equipment, other agricultural products and other manufactured goods have achieved growth in domestic output.

    Zhao Jianglin pointed out that when the tariff decreases, it will stimulate consumption, and the FTA has a stimulating period of 5 to 10 years for trade growth. Therefore, the growth rate and trade scale of bilateral trade between China and Australia will increase significantly in the future.

    In recent years, trade between China and Australia has developed rapidly, and the scale of trade has continued to expand. The scale of bilateral trade increased from US $8 billion 454 million in 2000 to US $136 billion 950 million in 2014, with an average annual growth of 22%, which is 16 times that of 2000.

    After the signing of the FTA between China, South Korea and China in the following month, the "circle of friends" in China's free trade area has expanded to 14, involving 22 countries and regions. This will become an important step for China to speed up the construction of a global standard free trade network.

    The Minister of Commerce said that the signing of the FTA between China and Australia will effectively promote bilateral trade growth, strengthen economic ties and exchanges between China and Australia, and promote friendly exchanges between the two peoples.


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