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Sino-Australian FTA talks set to enter 'substantive' stage

By Ding Qingfen (China Daily)
Updated: 2006-10-24 08:36

The total trade volume between the two countries grew at an annual rate of about 40 per cent between 2003 and 2005.

Bilateral trade reached US$27.3 billion last year, up 34 per cent year-on-year. The figure for this year had already reached US$23.5 billion by the end of September, up 19 per cent year-on-year.

Six rounds of talks have already taken place between the two countries, with the latest ending last month. These discussions have dealt with procedures, areas, criteria and laws, and more importantly, signed an FTA memorandum and an agreement on accepting China's market economy status in April 2005.

"The major achievement we have got is obtaining a much better understanding of each other and a better knowledge about challenges," said Wells.

Regarding these challenges, Wells said that many Australian manufacturing firms regard a potential FTA as "a threat," as they believe it would result in huge quantities of low-cost and high-quality Chinese goods heading to the country.

"We feel pressure from them, and we need significant concessions from China," stressed Wells.

On the other hand, China is sensitive in terms of the agricultural and service sectors, he added.

In agriculture, Chinese industry insiders have been worried about the negative impact that Australian dairy and wool products would have on the domestic market.

Wells added: "I can understand China's sensitivity, as service sector would be the biggest beneficiary in Australia."

"Although we have technology and know-how that China needs, we don't mean to pose any threat to China, we can pursue a partnership with China," said Wells.