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What does the China-Australia free trade agreement mean for you? Essay Example

  • Category:
    Business
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    178

Article Summary

Chinese Australia free trade agreement is in the process of being signed which will take several years. Once signed, the agreement will make 95% of the Australian exports to China tax free. This implies that Australian producers, manufacturers and service providers who have been using Chinese market will benefit from increased access. Service providers will have a chance to access Chinese market which allows them to own and access businesses in China. Australian business will have an increase in volumes exported to China. Australian consumers will enjoy cheap goods and services from China which includes household goods, clothing, electronics and vehicle parts. According to the economists, Australia businesses are set to benefit from the deal. This is especially the service industries which accounts for a large output in Australia. This will support Australia rebalancing act from the mining based growth to non-mining sectors of the country’s economy (Hutchens, 2014).

References

Hutchens, G., 2014, What does the China-Australia free trade agreement mean for you? Sydney Morning Herald: Federal Politics, Retrieved 19th November 2015, http://www.smh.com.au/federal- politics/political-news/what-does-the- chinaaustralia-free-trade-agreement-mean-for-you- 20141117-11oj7z.html