House Of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Immigration and Border Protection the Honourable Peter Dutton MP)

Conclusion

194. It is in Australia's interests to enter ChAFTA, given the negotiated text:

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delivers commercially meaningful market access gains that will benefit Australian agricultural producers, energy and mineral resources exporters, service providers, consumers and investors;

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allows Australian exporters to capitalise on the opportunities created by the growth in China's middle class and the increased orientation of its economy towards consumption and services;

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delivers faster and deeper market access gains than those possible through multilateral WTO or regional negotiations;

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is consistent with WTO requirements for free trade agreements; and

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complements Australia's efforts to seek additional trade liberalisation from China through the WTO and regional mechanisms.

195. It should be noted that the removal of tariffs on merchandise imports will lead to reductions in tariff revenue, although this would be offset over time by the second-round effects of increased economic activity.