The Prime Minister on Mon 17.11.2014, announced the completion of negotiations for a China-Australia Free Trade Agreement.
With a view to maximising the benefits of the FTA for business, Australia and China have also agreed to review their bilateral taxation arrangements, including relief from double taxation.
Key outcomes under the China-Australia FTA include:
- More than 85% of Australian goods exports to China will be tariff free upon entry into force, rising to 93% in 4 years. Some of these goods are currently subject to tariffs of up to 40%.
- On full implementation of the Agreement, 95% of Australian goods exports to China will be tariff-free.
- China’s tariffs on coking coal will be removed on day one, with the tariff on thermal coal phasing out over 2 years.
In the Agreement, China has offered Australia its best ever services commitments in an FTA (other than China’s agreements with Hong Kong and Macau). Australian legal services, financial services, education, telecommunications, tourism and travel, construction and engineering, health and aged care services, mining and extractive industries, manufacturing services, architecture and urban planning, as well as transport, among others, will all benefit from being able to do business in China more easily. For example, Australian law firms will be able to establish commercial associations with Chinese law firms in the Shanghai Free Trade Zone (SFTZ). This will allow them to offer Australian, Chinese and international legal services through a commercial presence, without restrictions on the location of clients.
[LTN 223, 18/11/14]