Free Trade Agreement Between China and Australia

Topics: International trade, Economy of Australia, People's Republic of China Pages: 2 (668 words) Published: October 12, 2008
Free Trade Agreement between Australia and China

China, Australia’s second larges export destination, is a growing economy. The labours in china are really cheap, so a lot of companies set up new manufactures in China and close down manufactures in other countries. A Chinese is satisfied getting 800 yean month, three meals a day and a bed to sleep. There are also people, who are willing to work for even lower labours. So if Australia would have a FTA with china it could profit from the fast growth and development of China. China’s growing manufacturing industry needs large volumes of raw materials, which could be supplied by Australia. “Most Farmers and key agricultural exporters –wool, beef, dairy and grains- have set up their sights on an FTA” (Philip Hopkins,Ian Porter). The mineral export to China would also benefit from a FTA as well as the services-section. I think the growing economy will affect the live-standard of the Chinese population. The companies move to China, so there are a lot of jobs. When the people have work they earn money, which they can spend on good products. I think the people, who have enough money, prefer to buy product with high quality. So they buy imported goods, which have a higher quality then the Chinese products. Supermarkets have an increasing role in China. Supermarkets require a quality standard. So Australia, which can deliver high-quality goods, will have increasing exports. Now, the Chinese have also credit cards, which will increase the spending level. The population of Australia would also profit from a FTA, because there will be more products from China. The products from China are cheap compared to the Australian. China could import a lot of cheap food, so that the Australian don’t have to spend that much money on food. So the FTA would lift the living-standard of the Australians. “An agreement to remove all barriers would lift the GDP of both counties in 2015 by 0.4 per cent” (Tim Colebatch,economics editor). “The...
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