China and Australia Free Trade Agreement (ChAFTA) and its Impact on Businesses

Chinese Trade and Investment Law
China and Australia Free Trade Agreement (ChAFTA)

Abstract
The aim of this essay is to evaluate ChAFTA and its positive and negative impact on
Australian and Chinese businesses. This essay will address the impact of ChAFTA on Australia
goods exports and service suppliers to understand how it creates trading opportunities for
them. This essay evaluated the background of ChAFTA and an overview to understand its
impact on the economic growth of the countries and evaluate how businesses can manage
this agreement. This topic is selected because this is a significant agreement which supports
the growth of Australian economy and it provides various trading opportunities to
Australian businesses.
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Table of Contents
Introduction............................................................................................................................. 3
Background.............................................................................................................................. 4
Objectives of ChAFTA............................................................................................................... 5
Overview of policies and outcomes of ChAFTA........................................................................6
Benefits of ChAFTA...................................................................................................................7
Negative of ChAFTA..................................................................................................................8
Impact on Australian Goods Exporters.....................................................................................8
Agriculture sector.................................................................................................................9
Energy sector........................................................................................................................9
Impact on Australian service suppliers...................................................................................10
Opportunities for investors................................................................................................11
Provisions for Australian consumers and businesses.........................................................13
How businesses can manage this agreement.........................................................................13
Conclusion.............................................................................................................................. 14
Bibliography........................................................................................................................... 15
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Introduction
In this essay, the China and Australia Free Trade Agreement (ChAFTA) will be evaluated to
understand why this agreement has formed between the two nations along with various
aspects of this agreement. Australia is one of only a handful of developed countries which
have entered into a Free Trade Agreement (FTA) with China. This agreement has formed
between the two nations in 2015 which has created new trading opportunities for
Australian businesses in China.1 This essay will analyse the background of ChAFTA to
understand why this agreement was formed between the two nations. This essay will
evaluate the key objectives based on which ChAFTA was signed by the government of
Australia and China. The overview of ChAFTA will be evaluated in this essay to determine
the outcomes of this agreement. Both positive and negative impacts of ChAFTA on the
countries, businesses and individuals will be assessed in this essay. The impact of ChAFTA on
Australian goods exporters and service suppliers will be analysed in this essay to understand
the influence of this agreement on Australian businesses. Various policies and concessions
provided by ChAFTA will be evaluated in this essay to determine key opportunities for
investors and impact on consumers. Lastly, this essay will analyse how businesses can
effectively manage this agreement, and a conclusion will be drawn.
1 Liu Ying and Zhang Weijia, ‘The Future Development of Rules for Trade in Financial Services in China’s Free
Trade Agreements: From the Perspective of the TPP ‘, (2016) (2) Journal of WTO and China.
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