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Opinion / Op-Ed Contributors

Seize historic opportunities in the FTA: Create a brilliant future of China-Australia commercial relations

By Gao Hucheng (Chinadaily.com.cn) Updated: 2015-06-17 15:42

A New Model for High-level Liberalization

China-Australia FTA has set a successful example for cooperation in the Asia-Pacific region. Though both are major economies in the world, China is the largest developing country whereas Australia is a mature developed economy. The two countries have distinctively different cultural backgrounds, different levels of development, complementary industrial structures and some differences in values. After a decade of negotiations, China and Australia have eventually reached a comprehensive and high-standard Free Trade Agreement with balanced interests. The agreement is not only an embodiment of the bright prospects of complementary and win-win cooperation between the two countries, but also, in itself, a step forward towards more inclusive and diversified global economic governance.

China-Australia FTA has made pragmatic explorations in many areas of opening-up. Take trade in services for example, which is a stumbling block in international trade negotiations. The two countries have vastly different administrative regimes and core concerns. But through candid and practical consultations, Australia finally agreed to open its services sector in a negative-list approach, while China, based on its WTO accession commitments, will open part of its services sector in a positive- list approach and commit to adopting a negative-list approach in future negotiations with Australia in this area.

China-Australia FTA is a major step towards Asia-Pacific economic integration. The 22nd APEC Economic Leaders Meeting in 2014 decided to launch the process of building the Asia-Pacific Free Trade Area (APFTA). It requires the concerted efforts of all parties to fulfill this vision. Now a free trade agreement has been signed between two major economies—China and Australia, and the two sides have agreed to jointly explore the further opening of the services sector by adopting a negative- list approach. It is the shared belief of the two countries that China-Australia FTA, once upgraded, will be a strong boost to the development of high-level economic and trade arrangement in the Asia-Pacific region, and play a leading and demonstration role in the further opening up of the region.

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