China, Australia seal major free trade agreement

PanARMENIAN.Net - China and Australia have sealed a major free trade agreement, as Chinese President Xi Jinping made a rare address to parliament in Canberra.

The deal, the result of a decade of talks, will open up markets worth billions of dollars, Canberra says. It will give Australian dairy farmers, winemakers and other sectors tariff-free access to the huge Chinese market within a few years, according to BBC News.

Meanwhile, China is seeking greater access for its investment projects.

Xi is on a state visit to Australia following the G20 summit. In his speech to parliament, he vowed China would pursue peaceful development with Australia and other nations.

Australian Prime Minister Tony Abbott described the deal as the first China had concluded "with a substantial economy, with a major economy; and it's the most comprehensive agreement that China has concluded with anyone".

It would be the third FTA signed by Canberra this year, following similar agreements with South Korea and Japan.

In the past two decades, trade between Australia and China has grown substantially, with China now Australia's largest two-way trading partner, according to the Australian Department of Foreign Affairs and Trade. In 2013, trade between the two countries was worth A$150bn.

Parliamentary Secretary Josh Frydenberg said the agreement meant that "up to 95% of our exports over time will enter the Chinese market tariff-free".

In his comments to parliament, Xi said the agreement would "create a high level platform and provide better institutional arrangements for our economic cooperation".

Along with pledging deeper co-operation with Australia, Xi also said China was willing to resolve territorial disputes with its neighbors in a peaceful manner.

"The Chinese government is ready to enhance dialogue and co-operation with relevant countries to jointly maintain freedom of navigation and safety of maritime rules," he said.

China is embroiled in territorial disputes in the South China Sea and East China Sea with several countries including Japan, Vietnam and the Philippines.

Xi said China would never use force to achieve Beijing's goals.

The key points of the deal: -Gives Australian exporters wider access to the lucrative Chinese market and private Chinese investors more freedom to put their money in Australia.

-About 85% of Australian exports into China will not incur tariffs, including dairy, beef, leather, mineral commodities and horticulture. Set to increase to cover nearly all exports in coming years.

-Chinese exports to Australia such as clothes, shoes, vehicles and electronics will be tariff-free.

-Threshold for Chinese investment in Australia without need for a government review raised to A$1.078bn from A$248m.

-Service sectors in both countries will benefit with freer access to industries such as healthcare, tourism, construction, banking and insurance.