Australia-China FTA Conference in Shenzhen

28-29 June 2006

On 28-29 June, the Department of Foreign Affairs and Trade, together with the Chinese Ministry of Commerce (MofCOM), the China Development Institute (CDI), and the Asian Economics Centre (AEC) at Melbourne University, co-sponsored a conference on an Australia-China Free Trade Agreement in Shenzhen, China on 28-29 June.

The first day, along with the keynote addresses, was focused on manufacturing, resources and investment and intellectual property.  Senior industry figures from Australia talked about specific experiences in China, outlined their expectations for the FTA (including that it should be comprehensive and mutually liberalising, eliminate the maximum number of tariffs on Australian exports into China, substantially improve the enforcement in China on intellectual property rights and reform other major trade barriers) and highlighted some of the benefits which could flow from a comprehensive agreement.  Useful points were made about Australia’s capabilities, the dynamic relationship our two countries already enjoy and the contrasts between our regimes of regulation in areas like investment.  Australian speakers also made powerful points, however, about our own sensitivities in this negotiation, especially in the manufacturing sector.

Chinese speakers on day one comprised mainly officials and academics.  There was wide acknowledgement of the complementarities between our two economies and of the desirability of Australia as a closer trading partner.  The Chinese took the opportunity, as we had expected, to highlight their sensitivities and concerns – on services and agriculture as well as goods – in familiar terms.  The speakers on intellectual property demonstrated that, while China has made significant progress towards improving its IP regime, this will continue to be a difficult issue in the FTA negotiations.

Day two of the conference had more of an academic focus and sessions covered a range of trade policy issues of mutual interest.  The Australian speakers on Rules of Origin (ROOs) made a useful contribution to the FTA process by emphasising the potential for the change of tariff classification approach to deliver optimal outcomes for business, consumers and administrators compared with the regional value content system.  The Chinese side confirmed that China Customs is committed to a high quality FTA and wants to work towards ROOs representing mutual benefit and administrative efficiency.  They noted that China Customs is consulting Chinese industry on its preferred approach.  Other sessions were interesting and the discussion spirited but they clearly demonstrated the Chinese inclination to not push the boundaries of their existing WTO rights and obligations.

Overall, the conference demonstrated the breadth of Australia’s interest in these important sectors of the FTA negotiation and also made clear its sensitivity on manufacturing. 

Copies of the papers and presentations by Australian speakers are provided as links on the program below.  Chinese papers will follow in due course.

Day 1 - Opening Session

Chairs:
Associate Professor Gary Magee, Deputy Director, Asian Economics Centre, University of Melbourne
LI Jinkui, Senior Researcher, China Development Institute
Speakers:
Professor Glyn Davis, Vice-Chancellor, University of Melbourne;
LI Luoli, Secretary General, China Development Institute (CDI)

Day 1 - Manufacturing

Chair:
Dr Rod Maddock, General Manager, Research Services, Commonwealth Bank
Speakers:
Ms Heather Ridout, CEO, Australian Industry Group
Professor WANG Dashu, School of Economics, Peking University
Panellists:
Mr Graham Kraehe AO, Chair, Bluescope Steel
XIAO Zhenyu, Director, Bureau of Foreign Trade and Economic Cooperation of Guangzhou Municipality
Mr Steve Falconer, CEO, Air International Thermal Systems
RUAN Zongze, Vice President, China Institute of International Studies

Day 1 - Intellectual Property

Chair:
REN Xiao, Sector Chief, Asia Pacific Studies, Shanghai Institute for International Studies
Speakers:
Ms Kimberlee Weatherall, Associate Director, Intellectual Property Research Institute of Australia, University of Melbourne
ZHAO Hong, Representative Assistant, Office of Representative for Trade Negotiation, MofCom
Panellists:
Dr Ian Heath, Director General, IP Australia
Chen Zhonghua , Secretary General, State Intellectual Property Office of China
Mr Kevin Hobgood-Brown, Chair, Australia-China Business Council and Partner, Deacons
LU Huibo, District General Manager, Lenovo Shenzhen District

Day 1 - Resources and Investment

Chair: 
Dr John Edwards, Chief Economist, HSBC Australia
Speakers:
LIAO Xiaoqi, Vice Minister, Ministry of Commerce
Mr Mark Paterson, Secretary, Department of Industry Tourism and Resources
HUANG Jianzhong, Dean, Department of International Economics and Business, School of Economics, Xiamen University
Panellists:
Mr Ross McCann, Managing Director, Qenos
SONG Yufang, Vice Director General, China Minerals Corporation
Mr Chad Blewitt, Practice Leader Major Markets, Rio Tinto
NIU Gensheng, Board Chairman, Inner Mongolia Mengniu Dairy Industry (Group) Co Ltd
Mr George Gilboy, China Country Manager, Woodside

Day 1 – Summing Up

Chair:
GUO Wanda, Vice Secretary General, China Development Institute (TBD)
Speakers:
Mr Ric Wells, Head, China FTA Task Force, Department of Foreign Affairs and Trade
YU Jianhua, Vice Director General, Department of WTO Affairs, MofCom

Day 2 – Experience and Lessons from other FTAs

Chair:
LIU Zhanjun, General Manager, Shenzhen Neptunus Bioengineering Holdings Co Ltd (TBD)
Speakers:
Dr Russell Hillberry, University of Melbourne
ZHU Wenhui, Commentator, Phoenix TV; Guest Researcher, CDI
Panellists:
Dr Rob Waschik, La Trobe University
Associate Professor John Romalis, University of Chicago
REN Xiao, Sector Chief, Asia Pacific Studies, Shanghai Institute for International Studies
Dr Milton Churche, Department of Foreign Affairs and Trade
HAN Feng, President, Australia, New Zealand and South Pacific Studies Centre, Chinese Academy of Social Sciences

Day 2 - Rules of Origin

Chair:
Dr Milton Churche, Coordinator (Goods and Government Procurement), Department of Foreign Affairs and Trade
Speakers:
Associate Professor Donald MacLaren, University of Melbourne
KANG Qiang, Vice Director General, Department of Tax Collection and Administration, General Administration of Customs of China
Panellists:
Mr Andrew Rice, National Manager, Australian Customs Service,
ZHU Faming, Gongbei Customs, General Administration of Customs of China

Day 2 – Trade Remedies

Chair:
HAN Feng, President, Australia, New Zealand and South Pacific Studies Centre, Chinese Academy of Social Sciences
Speakers:
Professor Martin Richardson, ANU
SONG Heping, Vice Director General, Bureau of Industry Injury Investigation, MofCom
Panellists:
Dr Mary Amiti, IMF
LUO Jin, Sector Chief, Bureau of Fair Trade for Imports and Exports, MofCom

Day 2 – Dispute Settlement Procedure, Business Law and Enforcement

Chair:
Associate Professor Gary Magee, Deputy Director, Asian Economics Centre, University of Melbourne
Speakers:
Professor Jeff Waincymer, Monash University
RONG Min, Vice-Sector Chief, Department of Treaty and Law, MofCom
Panellists:
Dr Andrew Mitchell, University of Melbourne
Prof XU Donggen, School of Law, Shanghai Jiaotong University(TBC)
Mr Simon Farbenbloom, Assistant Secretary, Department of Foreign Affairs and Trade
WANG Zhongmei, Senior Researcher, Australian Research Center, Shanghai Academy of Social Sciences

Day 2 – Wrap-up

Chair:
ZHU Wenhui, Commentator, Phoenix TV; Guest Researcher, CDI
Speaker:
Associate Professor Sisira Jayasuriya, Melbourne University
WANG Qinhua, Director General, Department of Import and Export of Electromechanical Products, MofCom
Thank-you Remarks:
LI Luoli, Secretary General, China Development Institute