Free Trade Agreement: Australia, China mark happy day

Australia has formalised the most liberal trade deal China has in a move Tony Abbott says will change the world for the better.

Prime Minister Tony Abbott shakes on the China Australia Free Trade Agreement with China’s Minister of Commerce Gao Hucheng.

Tony Abbott has hailed the signing of the China-Australia free trade agreement as a “happy day between friends” that finalises an “extraordinary agreement” between the two countries after ten years of negotiations.

Following a formal signing of the deal in Canberra today, the Prime Minister said the “momentous and historic” agreement affirmed China’s place as Australia’s largest trading partner.

“When these negotiations were first launched, (former Prime Minister John Howard) said that they would be complicated. He said that they would be challenging, and he said that they would be difficult.

“But he also said that they were worth persevering with.

“Our shared optimism and enthusiasm meant that success would eventually be achieved and today we have realised that vision and achieved that success.”

Promising “fine beef and good wine” for the growing Chinese middle class, Mr Abbott said the economic rise of China was “the greatest advance of prosperity ever seen in the history of mankind”.

“This is a momentous day. It’s a happy day between friends. It is the day that we seal the deal,” he said.

“It will change our countries for the better, it will change our region for better, it will change our world for the better.”

Chinese commerce Minister Gao Hucheng said the CHAFTA deal was of major significance and would benefit the industries and consumers of both countries.

“(The FTA) has the highest degree of liberalisation of all the free trade agreements that China has so far signed,” Dr Gao said through a translator.

“This signing is going to provide us with more open, convenient and regulated institutional arrangements for our trade and investment exchanges going forward.”

Trade Minister Andrew Robb said the agreement between the two countries, which will deliver a $20 billion boost to trade by 2035, had required a “super effort” of goodwill and hard work.

“It will take our relationship to another level,” he said.

The comments came as Mr Robb and Dr Gao formally signed the new China Australia Free Trade Agreement, known as CHAFTA at the National Gallery of Australia.

Labor’s trade spokeswoman Penny Wong said the opposition would closely scrutinise the text of the deal when it a tabled later today.

“This is a very important agreement, China is critical to Australia’s future prosperity,” Ms Wong told Sky News.

“We want to look at the agreement, make sure it grows the economy, grows jobs.”

She said the party would also scrutinise clauses relating to temporary skilled migration and details of Investor State Dispute Settlement arrangements which give foreign investors certain legal rights if Australia’s laws harm investment.

Unions have also raised concern about the deal undermining Australia’s workforce.

Under Investment Facilitation Agreements (IFAs), Chinese companies can bring in workers for projects of $150 million or more to allow increased labour flexibility.

Australian Council of Trade Unions president Ged Kearney said she was concerned about the agreement’s impact on unemployment and local jobs.

“Free trade agreements must support local jobs and industry and all indications are that the deal with China does not,” she said.

“There must be strong rules around labour market testing and labour mobility clauses in the China free trade deal to ensure local jobs are protected.”