Australia-China Free Trade Agreement
Photo credit: Jakub Halun. Wikimedia Commons file:20090529_Great_Wall_8185.jpg
China market snapshot
- GDP: US$5.878 trillion (2010)
- GDP per capita: US$4,382 (2010)
- GDP growth: 10.3 per cent (2010)
- Population: 1. 3414 billion (2010)
- Trade with Australia: $105.306 billion (2010)
About the Australia-China Free Trade Agreement negotiations
Australia and China share a strong and rapidly growing trade and economic relationship. Further strengthening and deepening this relationship is a major priority for both countries, with both governments committed to sustaining the impressive trade and investment performance achieved in the past two decades. In that time, China has become Australia’s largest two-way trading partner and vital to Australia’s future economic prosperity.
On 18 April 2005, Australia and China agreed to commence negotiations on a Free Trade Agreement (FTA) following consideration of a joint FTA Feasibility Study. The study was completed in March 2005, and concluded that there would be significant economic benefits for both Australia and China through the negotiation of an FTA.
The negotiations are complex, covering an array of issues, including agricultural tariffs and quotas, manufactured goods, services, temporary entry of people and foreign investment.
Key interests and benefits
- The removal or reduction of the tariff and non-tariff barriers affecting bilateral trade in goods, which could, in particular, reduce transaction costs and improve efficiency.
- Reduction or removal of regulatory barriers which restrict services in order to support improved trade flows across goods and services of interest to both economies.
- Implementation of measures to encourage more foreign investment between Australia and China, providing a firm foundation for the future economic relationship.
News
Seventeenth round of negotiations - November 2011
The 17th round of negotiations was held in Beijing on 22 to 24 November 2011. Negotiators discussed the range of outstanding issues.
Update: Seventeenth round of negotiations
Sixteenth round of negotiations - July 2011
The 16th round of negotiations on the Australia-China Free Trade Agreement (FTA) was held in Canberra from 5-7 July 2011. Both sides used the round to undertake a stocktake of each others' positions and sensitivities and to clarify the status of the text to date.
Update: Sixteenth round of negotiations
Prime Minister injects momentum into China FTA talks - April 2011
Prime Minister Gillard called for more meaningful progress towards the conclusion of the Australia-China FTA during her visit to Beijing in April 2011.
The Prime Minister said:
“…free trade is good for Australia. Freer trade is good for Australia and China, so we will keep working through it, even though it is an agreement with some areas of sensitivity.”
- Speech to the Australia China Economic and Co-operation Trade Forum, 26 April 2011.
- Transcript of interview with Sabra Lane, Beijing, 28 April 2011.
Fifteenth round of negotiations - 6 July 2010
The 15th round of negotiations on the Australia-China Free Trade Agreement (FTA) was held in Beijing from 28 to 30 June. This round continued the positive approach that developed at the 14th round in February, which had been the first round since December 2008. Both sides vigorously pursued their concerns and interests in a constructive manner. Many difficult and sensitive issues remain to be resolved.
Update: Fifteenth round of negotiations
Fourteenth round of negotiations - 3 March 2010
The 14th round of negotiations on the Australia-China Free Trade Agreement (FTA) was held in Canberra from 24 to 26 February. This was the first round since December 2008, a hiatus of 14 months. Overall the 14th round proved to be a positive re-engagement between the two sides and served to consolidate work done so far. Discussions were held in a constructive manner with each side acknowledging the momentum generated by recent high-level discussions, and the many difficult and sensitive issues that remain to be resolved.
Update: Fourteenth round of negotiations
Thirteenth round of negotiations - 17 December 2008
The 13th round of negotiations on the Australia-China Free Trade Agreement (FTA) was held in Beijing from 1 to 5 December. In regard to market access for goods, the two sides continued the discussion on their respective sensitivities to tariff liberalisation, as begun at the 12th negotiating round.
Update: Thirteenth round of negotiations
Twelfth round of negotiations - 3 October 2008
The 12th round of negotiations on the Australia-China Free Trade Agreement (FTA) was held in Canberra from 22 to 26 September. As foreshadowed at the 11th negotiating round, the two sides began more intensive discussions on their respective sensitivities to tariff liberalisation. Australia pressed China to explain why it was characterising as sensitive a range of agricultural products of interest to Australia. The two sides also discussed the outcomes of the joint wool study.
Update: Twelfth round of negotiations
Eleventh round of negotiations - 27 June 2008
The eleventh round of negotiations on the Australia-China Free Trade Agreement (FTA) was held in Beijing from 16 to 20 June 2008. This was the first round since the Prime Minister agreed with his Chinese counterpart in April 2008 on the "unfreezing" of the negotiations, and since the Minister for Trade agreed with China's Commerce Minister to implement a more intensive work program.
Update: Eleventh round of negotiations
Tenth round of negotiations - 1 November 2007
The tenth round of the Australia-China FTA negotiations was held in Canberra on 22-26 October. While we narrowed our differences on some issues and made useful changes to the proposed text of the agreement, overall progress in the negotiations continued to be slow.
Update: Tenth round of negotiations
Ninth round of negotiations - 29 June 2007
The ninth round of the Australia-China Free Trade Agreement negotiations was held from 18 to 22 June in Beijing. Useful progress was made in some areas, but there is no sign of significant movement on market access issues in general.
Update: Ninth round of negotiations
Eighth round of negotiations - 12 April 2007
The eighth round of the Australia-China FTA negotiations was held from 26 to 30 March in Beijing. Useful market access discussions on trade in services continued and talks began on barriers to trade in investment. Progress was also made in discussion of some technical areas of the FTA.
Update: Eighth round of negotiations
Seventh round of negotiations - 20 December 2006
The seventh round of the Australia-China FTA negotiations was held in Canberra from 11 to 15 December 2006. Australia and China tabled their requests and offers on market access for goods (including agriculture) and lists of barriers affecting market access requests on a range of services.
Update: Seventh round of negotiations
Sixth round of negotiations - 14 September 2006
The sixth round of the Australia-China FTA negotiations was held in Beijing from 31 August to 6 September 2006. Discussions were useful, but market access negotiations on goods did not begin as planned. In preliminary talks, both sides agreed that China would need to provide more detailed information to enable the negotiations to commence. No timeframe was set but Australia is pushing for an early start. In the meantime, Australia's tariff offer is on hold.
Update: Sixth round of negotiations
Fifth round of negotiations - 26 May 2006
The fifth round Australia-China FTA negotiations took place in Beijing from 22-24 May 2006. At this meeting both sides started to consider the possible shape and content of an agreement. This followed several meetings with the Chinese in a detailed information exchange about our respective trade and investment regimes. Useful progress was made in a range of areas on drafting the architecture of an agreement during the fifth round, and both sides will start to negotiate actual provisions for access to each others' markets from the next meeting.
Update: Fifth round of negotiations
Fourth round of negotiations - 3 March 2006
The fourth round Australia-China FTA negotiations took place in Canberra from 27 February to 2 March 2006. This was the first substantive negotiating meeting to be held in Australia.
Update: Fourth round of negotiations
Third round of negotiations - 11 November 2005
The third negotiating meeting on the Australia-China Free Trade Agreement (FTA) was held in Beijing from 2 to 4 November 2005. The Australian and Chinese delegations included officials from a wide range of agencies. (A list of the agencies represented from both sides can be found in our report of the second negotiating meeting.) The Department of Foreign Affairs and Trade led the delegation for Australia, and the Ministry of Commerce led the delegation for China.
Update: Third round of negotiations
Second round of negotiations - 1 September 2005
A second negotiating meeting on the Australia-China Free Trade Agreement (FTA) was held in Beijing from 22-24 August. This was the first substantive meeting between officials on the FTA negotiations (the first meeting, held in Sydney in May, covered procedural issues).
Update: Second round of negotiations
First round of negotiations - 26 May 2005
The first round of talks, held in Sydney on 23 May, focused on procedural issues, including confirmation that the Chinese negotiating team will be led by Zhang Xiangchen, an experienced negotiator and Deputy Director General of WTO Affairs in the Chinese Ministry of Commerce.
Update: First round of negotiations
Submissions
We continue to welcome submissions from individuals and groups on issues relevant to the negotiation of an FTA with China.
Submissions need not be lengthy, and may build on or refer to submissions previously made. Authors of submissions should advise whether they authorise their name and/or the text of their submission to be posted on this website.
General guidance on preparing submissions
Send submissions or comments to
- Email: chinafta@dfat.gov.au
- Mail:
China FTA Coordinator
Free Trade Agreement Division
Department of Foreign Affairs and Trade
RG Casey Building
John McEwen Crescent
Barton ACT 0221
DFAT has received submissions related to both the FTA Feasibility Study and ongoing negotiations on an FTA, from a wide range of interested parties including industry, professional and non-government bodies, companies, unions, individuals and state and local governments. Many of these have come from peak industry and business organisations.
Copyright and content
Copyright in submissions resides with the author(s), not with the Department of Foreign Affairs and Trade.
The views expressed in these submissions are the views of the author(s) and should not be understood as reflecting the views of the Department of Foreign Affairs and Trade.
Submissions received
- Abalone Association of Australasia Incorporated first submission [PDF]
- Abalone Association of Australasia Incorporated second submission [PDF]
- Abalone Council Australia Ltd [PDF]
- Adsteam Marine Ltd [PDF]
- ALCOA
- Alex Malik [PDF]
- Altium Ltd [PDF]
- ANZ Group
- Apple & Pear Australia
- ASPECT Melbourne Pty Ltd [PDF]
- Association of Consulting Engineers Australia [PDF]
- Aust Vice-Chancellors Committee [PDF]
- Australasian Performing Right Association Limited (APRA) / Australasian Mechanical Copyright Owners Society (AMCOS)
- Australia China Business Council (Victoria) [PDF]
- Australia Tibet Council [PDF]
- Australian Automotive Aftermarket Association [PDF]
- Australian Chamber of Commerce (Beijing) [PDF]
- Australian Chamber of Commerce and Industry Cover letter | [PDF]
- Australian Chicken Meat Federation Inc
- Australian Conservation Foundation [PDF]
- Australian Cotton Industry Council Ltd
- Australian Cotton Shippers Association
- Australian Dairy Industry Council Inc [PDF]
- Australian Electrical & Electronic Manufactures' Association First submission | Second submission | Third submission
- Australian Fair Trade & Investment Network (AFTINET) First submission | Second submission
- Australian Federation Against Copyright Theft First submission
- Australian Film Commission [PDF]
- Australian Food and Grocery Council First submission | Second submission
- Australian Horticultural Exporters Association [PDF]
- Australian Industry Group [PDF]
- Australian Labor Party - Geelong West Branch [PDF]
- Australian Manufacturing Workers' Union [PDF]
- Australian Nurses Federation [PDF]
- Australian Nursing and Midwifery Council [PDF]
- Australian Oilseeds Federation
- Australian Plantation Products & Paper Industry Council [PDF]
- Australian Pork Limited [PDF]
- Australian Prawn Farmer's Association [PDF]
- Australian Steel Institute [PDF]
- Australian Stock Exchange [PDF]
- Australian Tyre Manufacturers' Association [PDF]
- Australian Wine and Brandy Corporation [PDF]
- Australian Wool Innovation Ltd. [PDF]
- Australian Wool Processors Council Inc [PDF]
- Avcare Ltd [PDF]
- AWB Limited
- Basell Australia Pty Ltd
- Beat Knoblauch & Associates
- Benedict Coyne first submission
- Benedict Coyne second submission
- BHP Billiton
- BlueScope Steel
- BRADSAL - National Coating Company Pty Ltd [PDF]
- Building Products Innovation Council (BPIC) [PDF]
- Business Council of Australia
- Business Development Services Australia [PDF]
- Carindale Wines [PDF]
- Carpet Institute of Australia Ltd [PDF]
- CBH Group
- Cement Industry Federation
- Central Queensland University [PDF]
- ChevronTexaco Australia first submission
- ChevronTexaco Australia second submission
- Clayton Utz [PDF]
- Commonwealth Bank
- Conference of Leaders of Religious Institutes in New South Wales [PDF]
- Copyright Agency Limited [PDF]
- Coral Sea Studios
- CPA Australia [PDF]
- CPA Australia Hong Kong Division [PDF]
- Dairy Australia [PDF]
- David Smith [PDF]
- Deloitte Touche Tohmatsu (Deloitte) [PDF]
- Department of Education and Training, Western Australia [PDF]
- Dibbs Abbott Stillman [PDF]
- Dr Peter Thorn [PDF]
- Dr Thomas Faunce, Australian National University [PDF]
- Dr Turlough F. Guerin [PDF]
- Edith Knight First submission | Second submission
- EGR [PDF]
- Elders Australia Ltd
- Engineers Australia First submission | Second submission
- Falun Gong Human Rights Working Group [PDF]
- Federal Chamber of Automotive Industries [PDF]
- Federation of Automotive Products Manufacturers [PDF]
- Fisher Adams Kelly [PDF]
- Flight Centre Ltd
- Ford Motor Company
- Furnishing Industry Association of Australia [PDF]
- GENENG PTY LTD [PDF]
- Gift and Homewares Australia [PDF]
- Global Foundation Secretariat
- Goodman Fielder Ltd
- Growcom [PDF]
- Holden
- Horticultural Market Access Committee (HMAC)
- Horticulture Australia Ltd
- Hunt & Hunt [PDF]
- Hydro Tasmania [PDF]
- Ian Quin [PDF]
- Institute for International Business, Economics and Law; University of Adelaide [PDF]
- Institute of Patent and Trade Mark Attorneys [PDF]
- Insurance Australia Group First submission | Second submission
- Jak Fruit [PDF]
- Julie D'Alcorn [PDF]
- JML Australia
- John Cole and Ruth Hill [PDF]
- Kembla Products
- Law Institute of Victoria [PDF]
- Lawyers for Animals [PDF]
- LiveCorp
- Mahinder Lall [PDF]
- MasterFoods ANZ (Mars)
- Mayne Group Ltd [PDF]
- Meat & Livestock Australia
- Media Entertainment & Arts Alliance [PDF]
- Medical Devices Industry Action Agenda [PDF]
- Minerals Council [PDF]
- Murray Valley Citrus Marketing Board [PDF]
- National Association of Forestry Industries (NAFI) [PDF]
- National Farmers Federation
- Northern Territory - Minister for Asian Relations and Trade [PDF]
- One Steel
- Penrice Soda Products
- Plastics and Chemicals Industries Association [PDF]
- Q Concepts First submission | Second submission
- Qantas
- Qenos
- Queensland Nurses' Union [PDF]
- Ricegrowers' Association of Australia Inc
- Richardson Business Consultants Pty Ltd [PDF]
- RJ Quirk Consulting RJ Quirk Consulting
- Royal Australian Institute of Architects [PDF]
- Science Industry Action Agenda [PDF]
- South Australian Aquaculture Council Inc
- South Australian Government
- Southedge Seeds Pty Ltd [PDF]
- Stephen Thornton [PDF]
- Supply Line (Australia) Pty Ltd [PDF]
- Symex Holdings Ltd First submission | Second submission
- Tanda International Pty Ltd [PDF]
- Telstra Corporation
- Textile & Fashion Industries of Australia [PDF]
- Textiles, Clothing and Footwear Union of Australia first submission
- Textiles, Clothing and Footwear Union of Australia second submission
- Thomas Winch Company (Qld) Pty Ltd [PDF]
- Toyota
- Trade Mark Investigation Services (TMIS) [PDF]
- UnitingCare NSW/ACT [PDF]
- Victoria - Minister for Manufacturing [PDF]
- Victorian Government [PDF]
- Viscopy Ltd [PDF]
- WA Chamber of Commerce & Industry [PDF]
- WA Fishing Council
- Warren Cauliflower Group Inc [PDF]
- Western Australia - Department of Industry and Resources
- Western Australian Farmers Federation (Inc) [PDF]
- Windsor Farm
- Winemakers Federation of Australia [PDF]
- World Organisation to Investigate the Persecution of Falun Gong [PDF]
For business
Doing business in China
Austrade has identified potential opportunities for Australian suppliers of goods and services in a number of sectors. Austrade's China country page supplies general information on doing business and on specific export opportunities. The Austrade website has a database that can be searched by industry.
Resources
Joint Feasibility Study
Other resources
- Information about China and its economy
- Modelling the Potential Benefits of an Australia-China Free Trade Agreement (PDF, 572 KB)
- Modelling the Potential Benefits of an Australia-China Free Trade Agreement: Impact on Australian States and Territories (PDF, 128 KB)
- Memorandum of Understanding (PDF, 64 KB) between the Department of Foreign Affairs and Trade of Australia and the Ministry of Commerce of the People's Republic of China on the recognition of China's full market economy status and the commencement of negotiation of a free trade agreement between Australia and the People's Republic of China
Text of the Trade and Economic Framework
Trade and Economic Framework between Australia and the People's Republic of China
Studies by the Department's East Asia Analytical Unit
- China's Industrial Rise: East Asia's Challenge (October 2003)
- China Embraces the World Market (November 2002)
Media releases
- 23 May 2005 - First Round of Australia - China FTA Negotiations Begins
- 19 April 2005 - Vaile Welcomes China FTA Negotiations
- 13 April 2005 - Time is Right to Enter into FTA Negotiations with China
- 10 March 2005 - Vaile Announces Excellent Progress on Joint FTA Feasibility Study with China
- 7 March 2005 - Vaile Seeks to Finalise Australia-China FTA Feasibility Study
- 28 April 2004 - Australia-China Trade Relations Set to Expand
- 28 April 2004 - Australia and China Fast Track FTA Study
- 31 March 2004 - Australia-China Free Trade Agreement Joint Feasibility Study: Call for Submissions
- 16 January 2004 - Good Start for Australia-China Joint Study on FTA
- 23 October 2003 - Australia-China Trade and Economic Framework
Transcripts
- 10 March 2005: Press Conference - Beijing
- 17 August 2004: Media Conference, Beijing
- 16 August 2004: Doorstop Interview, St Regis Hotel Beijing
- 1 March 2004: Doorstop Parliament House Canberra
Speeches
- 13 August: Australia and China's Shared Interests - Security and Strategic Dimensions - Speech by Minister for Foreign Affairs
- Closing Speech at the Australia-China FTA Conference - Future Directions, 13 August 2004 - Speech by Dr Ashton Calvert
- Opening Speech at the Australia-China FTA Conference - Strategic setting: Common Future, 12 August 2004 - Speech by Dr Ashton Calvert
Background Briefings
- 11 August 2004: Background Media briefing by DFAT Official on Australia-China Free Trade Agreement Scoping Study
- 19 April 2004 - Background briefing by senior DFAT officials on Trade Minister Mark Vaile's forthcoming visit to China
Text of the Trade and Economic Framework
Studies by the Department's East Asia Analytical Unit
- China's Industrial Rise: East Asia's Challenge (October 2003)
- China Embraces the World Market (November 2002)
Contact us
For further information, please contact DFAT's Free Trade Agreement Division:
- Email: chinafta@dfat.gov.au
- Fax: (+61 2) 6261 2187
- Mail:
China FTA Coordinator
Free Trade Agreement Division
Department of Foreign Affairs and Trade,
R. G. Casey Building, John McEwen Crescent
BARTON ACT 0221
For media enquiries, please call DFAT Media Liaison Section (+61 2) 6261 1555.
