(MENAFN- Kuwait News Agency (KUNA)) The Chinese and Australian governments signed a long-awaited free trade agreement on Wednesday, further opening up trade between the two countries, state-run Xinhua News Agency reported.
The landmark deal, signed by Australia's Trade Minister Andrew Robb and China's Commerce Minister Gao Hucheng in Canberra, finalized negotiations that began 10 years ago, the report said.
The pact made Australia the biggest developed economy to sign an FTA with China. More than 85 percent of Australia exports to China, its largest trading partner, will enter duty-free when the pact comes into effect, and 95 percent of goods will be duty-free upon full implementation in 11 years' time.
Furthermore, 5,000 working holiday visas will be granted to Chinese citizens each year and Chinese private businesses will be encouraged to invest in Australia.
"The unprecedented agreement we have signed today will not only enhance trade between our two countries, but also too, our investment," Australian Prime Minister Abbott was quoted as saying at the signing ceremony.
"Far more than trade, investment in another country is a sign of trust. The fact that China, over the years, has invested almost as much in our economy as it has in the US - an economy around 12 times our size - is a sign of trust in Australia," Abbott said.
The FTA with China, which already makes up almost a quarter of the Australian total trade, is expected to facilitate growth in not only Australian goods but also provide an encouraging boost to the services sector, including tourism, translation, real estate, environmental services, financial services, as well as medical and aged-care. China will benefit from the introduction of technical consulting by Australian mining suppliers in coal bed methane and shale gas extraction.
The China-Australia FTA will come into effect later in the year when the respective parliaments approve the legislation.
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