CANBERRA (Reuters) - Australia sealed a landmark free trade agreement (FTA) with its top trade partner China on Monday, concluding a decade of negotiations.
Once the framework of the deal signed by Australian Prime Minister Tony Abbott and Chinese President Xi Jinping in Canberra is fully implemented, 95 percent of Australia’s exports to China will be tariff free.
The following is a look at key elements of the deal, the most extensive signed by China with another country, according to Abbott.
Dairy: removal of all tariffs of up to 20 percent in four to 11 years.
Beef: removal of tariffs of 12 to 25 percent over nine years.
Wine: removal of all tariffs, 14 to 20 percent, over four years.
Horticulture: removal of all tariffs up to 30 percent in four years.
Wool: Australia-only duty free quota.
Cotton, rice, sugar wheat: review in three years.
Live animal exports: removal of tariffs of 10 percent in four years.
Coking coal: removal of 3 percent tariff from start of FTA.
Thermal coal: removal of 6 percent tariff in two years.
Copper: removal of tariffs, 1 to 2 percent, from start of FTA.
Alumina: removal of 8 percent tariffs.
Health: Australian owned hospitals and aged care facilities allowed to be established in China.
Tourism: Australian operators allowed to build and operate hotels and restaurants in China.
Financial: Yuan clearing bank designated in Sydney allowing overseas trading of China’s currency for the first time.
Chinese private direct investment in Australia under A$1.08 billion($945 million) will not require approval from the Foreign Investment Review Board (FIRB), brings into line with United States and Japan.
FIRB approval still required for agricultural land over A$15 million and agribusiness over A$53 million and for all investment in media, telcos, defense.
FIRB approval still required for investment by state-owned enterprises.
Chinese-owned companies registered in Australia allowed to negotiate project-based labor agreements for infrastructure development projects worth more than A$150 million.
A Work and Holiday visa to be granted to up to 5,000 educated Chinese nationals each year, allowing them to holiday in Australia for up to 12 months, as well as undertake short term work and study.
Reporting by Jane Wardell; Editing by Jeremy Laurence