How the FTA with China will affect seniors 90



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After over a decade of negotiations and discussions, the government has finally confirmed they’re signing off on a historic Free Trade Agreement (FTA) with China. Trade Minister Andrew Robb and Chinese Commerce Minister Gao Hucheng have formalised the deal in Canberra yesterday which will create a new level of depth to the China-Australia relationship.

The only question that everyone is asking right now, is how will it affect us?

According to Prime Minister Tony Abbott, it will have a profound impact on our future. “It will change our countries for the better, it will change our region for the better, it will change our world for the better,” the Prime Minister said.

He also noted that the success is the legacy of previous Prime Minister John Howard saying, “Today we realise the vision of former PM John Howard who launched these negotiations a decade ago”.

A FTA brings both great advantages but also some risks for Australia and our people. So here’s the good, the bad and the ugly of what this all means.


Cheaper products 

Australia will be removing the existing 5% tariff on Chinese electronics, clothing, cars and whitegoods. This means that that they’re all likely to get a lot cheaper. Predictions show that this is likely to put an additional $4,500 back in the pockets of each household over the next 20 years. The Australian reports that this is boosted by the FTAs with South Korea, China and Japan – all complimentary to the Chinese FTA.


Better access to Chinese markets 

Perhaps the most significant change is how this will affect Australian businesses. Currently exports to China face tariffs of up to 40% making it a difficult market to access. The agreement will ensure that 85% of all Australian exports now enter China tariff-free and this will rise to 95% when the FTA comes into full force. China is already the highest trade parter of Australia with the two-way flow of goods and services exceeding $160 billion annually.

This is particularly good news for high-demand industries and products grown or manufactured in Australia such as Australian beef, dairy, wine, whiskey, sea cucumbers, opal products and deer velvet.

Peter Arkell, Chairman of the Australian Chamber of Commerce in Shanghai, Peter Arkell told the ABC: “I think it’s a momentous thing that’s happened”.

“This has been pretty landmark stuff that’s been negotiated,” Mr Arkell said.

“I hope there’s going to be a lot of Australian business now that maybe had been reluctant about entering into China, worried about some of the so-called barriers, that they can now feel confident this is a place that they can do business”.


Economic Boost

The FTA will give the Australian economy a significant boost that will be leveraged by two key things. Firstly, Australian jobs are expected to grow by about 9000 per year as businesses expand due to the additional exports and according to the CIE by 2035 this will have created around 178,000 jobs. The second thing is that the extra two way spending will inject an incredible volume of money into the economy coming to around $20 billion spend on Australian products – a growth of 11.1% by 2035. Conversely, we’ll be contributing an additional $46 billion to Asian spending.


The biggest concern with the FTA so far is whether or not Visas will be easier to obtain by Chinese people, therefore encouraging them to come to Australia for work at low wages effectively outdoing the average Australian for a job, something that Labor senator Penny Wong made clear when speaking to the media today. She recognised the importance of the FTA to Australia but said Labor will scrutinise every detail of the new deal.


So tell us, are you happy Australia and China are strengthening their relationship? Share your thoughts on this in the comments below… 

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  1. the biggest negative for me is that some products coming from China are not as high a standard as those we formerly made ourselves. product performance and life span are more important than just getting a cheaper product

  2. good bye jobs hello higher unemployment

    1 REPLY
    • Not just higher unemployment but this will bring down the working conditions of those who are employed. It’s Work Choices by stealth. I’m glad I’m not in the workforce any longer.

  3. Here they go again, good market but the goods comin the other way are crap, crap and more crap. Imigration should not be part of the deal they can stay where they are, not get a free ride to the promise land.

  4. First sold out to the Japs. What was left sold to the Chinese (at least they wont bring in anymore moslems )

    5 REPLY
    • and for your information you bigoted ill informed peon china has a very large muslim community

    • nor do we I understand you’re lack of understanding but like us there’s good and bad in every religion muslims are not bad people in fact i flew with ethiad airline to here in spain a muslim owned airline we stopped in Abu dubi no problem no hate no violence no hijabs
      lovely people and what laws have we changed in Australia ??

    • I cant walk into a bank or servo with a helmet on but they are allowed to go into them with a tea towel covering their face dont say they have not changed laws dor them (end)

    • Agree with you Kevin Simmons. Got us all eating Halal, whether we want to or not, then there is the burka thing. I am definitely not a bigot or a racist, my granddaughter is half Pakistani. But Muslim is not a race, but a religion, and a way of life, and if allowed, their extremist element would do what they have been telling everyone who will listen in the UK, and other Western countries, that Allah will rule the world, and his soldiers will behead anyone who will not bow down. I have been all over China, and their Govt would nip any of this in the bud. You don’t see burka’s anywhere in China. And Dave Milne, this is an opinion page, so more understanding, hey, instead of the name calling. Nobody is calling the whole Muslim population, Bad. I do worry that Western Countries are in for a bad time, dealing with the Muslim extremists. If Hitler had as many like minded people in as many countries of the world as there are Muslims today, the world would be a lot different …we’d be speaking Japanese.

  5. How will this help Australia? The people that will be employed will be in China, cheap goods will flood the market forcing the few manufacturers we have left out of business

  6. I try very hard to buy things produced in Australia as I like to keep our work force employed and so my kids in a job. I don’t see that either way that I personally will be affected positively by this FTA.
    Also when we export meat etc the price of that commodity roses at home, just a thought,

  7. What was the deal about in respect to Chinese ownership of even more of our freehold land?
    Where can we read the truth about this?

    1 REPLY
    • Same in NZ, Roger, causing a housing crisis in Auckland, with house prices going thru the roof, and locals unable to raise the 20% deposit needed to apply for a home loan thru a bank….govt rules. There are companies springing up, who take the overseas buyer thru the process needed to buy a house in NZ, for a commission!

  8. Over all the FTA with China will see huge benefits for Australia. As an individual I doubt my life will change dramatically.

  9. To bring in their own workers is the greatest travesty Tony the Foney has ever inflected on the Australian Public. Let us PLEASE get rid of this brain dead P>M>

  10. I know I’m being pessimistic but I believe retailers will still charge us the same and will keep the extra profits for themselves.

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