China-Australia FTA (Free Trade Agreement) and China-ROK FTA came into force on December 20, 2015, benefiting the three countries' people.
Although 20 percent of trade between the two countries has become tariff-free on December 20, the impact of the FTA will only be felt in the long run. It will take ten years to remove tariffs on about 70 percent of bilateral trade, and an additional decade to finally remove 90 percent of the tariffs.
However, the FTA's importance reaches beyond trade as it promotes competition and cooperation between businesses in China and the ROK, and it will be a step toward regional integration, analysts say.
Hailed as "historic" and "landmark" by the Australian Minister for Trade and Investment Andrew Robb, the China-Australia Free Trade Agreement (ChAFTA) enables more than 86 percent of Australia's goods exports to China duty free, worth more than 90 billion AU dollars (65 billion U.S. dollars).
Once the agreement is fully implemented, 96 percent of Australian goods will enter China duty free, while 100 percent of Chinese exports to Australia will enjoy zero-tariff treatment.
Iron ores and concentrates, coal, gold, education-related travel services and copper are China's top five imports from Australia, while clothing, telecom equipment and parts, computers, furniture, toys and sporting goods are the top five exports to Australia.
Chinese enterprises and consumers will have greater access to natural resources and finished products like high-quality food. Australians will also benefit from cheaper China-made garments and electronic gadgets.
Trade Minister Andrew Robb said tariffs have been cut on a range of important Australian exports including dairy, beef, lamb, wine, seafood, fruit and vegetables, processed foods, vitamins and health products.
Tariffs on coking coal (with exports worth 4.8 billion U.S. dollars in 2014-15) have been eliminated, while the phased elimination of tariffs on non-coking coal also started.
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