With the G20 now done and dusted, MPs gather in Canberra for a
special sitting of the parliament. China’s president Xi Jinping will
address the parliament, and ink a new free trade deal with Canberra. All
the developments, live
I’ll come back to detailing outcomes, but I need to digress briefly to cover the formal remarks on the proposed FTA from Tony Abbott and Xi Jinping.
History, the prime minister says. History.
Tony Abbott:
Agriculture:
History, the prime minister says. History.
Tony Abbott:
I think we’ve heard from the president of speech of historical significance so this is not just a historical day for Australia with the signing of our free trade agreement, it is a historical day for China with some of the statements that the president has chosen to make to the Australian parliament about the democratisation of China and the fundamentally ethical approach that China intends to take with its partners, with its neighbours in its region and in the wider world.
Agriculture:
- Tariffs on dairy to go within four to eleven years.
- The beef tariff (between 12 and 25%) to go within nine years.
- Tariffs on live animal exports (10%) to go within four years.
- Removal of sheep meat tariffs (12 to 23%) over eight years.
- Wine tariffs gone in four years (14 to 20%).
- Horticulture tariffs “mostly” gone in four years (up to 30%).
- Barley tariff (3%) gone.
- Seafood tariffs gone in four years.
- Tariffs on coking coal gone immediately on the agreement taking effect.
- Tariffs on thermal coal (currently 6%) gone in two years.
- A bunch of nuisance tariffs on copper and alloys, alumnium oxide, nickel, aluminium waste and other energy products – gone.
- Four year phase out on 10% tariffs on pharmaceuticals – including vitamins.
- Four year phase out on tariffs on manufactures, like car engines, plastics and centrifuges.
Free trade agreement – three key issues at a glance
The embargo on details of the China FTA has just been lifted.
I’ll walk this through step by step for the remainder of the afternoon, but in this first post I’ll cut very quickly to the chase.
This deal is a two stage process: there are concrete agreements now, and then there’s a mechanism to pursue the issues that could not be resolved now.
In the too hard basket:
I’ll walk this through step by step for the remainder of the afternoon, but in this first post I’ll cut very quickly to the chase.
This deal is a two stage process: there are concrete agreements now, and then there’s a mechanism to pursue the issues that could not be resolved now.
In the too hard basket:
- The screening thresholds for investment by Chinese state owned enterprises. As I flagged on the live blog earlier today, the Chinese wanted a better deal. Australia rebuffed that request for now. All investment by Chinese state owned enterprises will be screened by the Foreign Investment Review Board. So the current arrangements remain in place.
- Also left out of the FTA: wool, oil seeds, cotton, sugar and rice. No progress in this free trade agreement. It will be interesting to get play back from the Nationals and the farmers federation about that.
- There is an investor state dispute clause. A safe prediction: this will be very controversial.
Decoding the Xi address
Just before we get into the virtual FTA – a couple of very quick thoughts on that Xi speech. It was a very interesting outing.
If we cut through all the proverbs and the people-to-people links (Lord the Chinese love that phrase), Xi wanted to send a few clear messages.
Here are the messages.
If we cut through all the proverbs and the people-to-people links (Lord the Chinese love that phrase), Xi wanted to send a few clear messages.
Here are the messages.
- We are the big guy in Asia. You need not be afraid of us, because our intentions are peaceful. We have known war, and we don’t want to visit that horror on others.
- But take note: we are the big guy in Asia. We are the Asia-Pacific power. We will assert our rise in the region, and we will do it on our own terms.
- It’s a message of course for America and for the world – and an interesting follow on from the climate agreement Xi struck with America last week, and president Obama’s contributions over the past few days.
- The grown ups, the great contemporary powers, are speaking in Australia, and over the heads of Australia.
The parliamentarians like the rock and the wall.
Warmer applause marks the conclusion of the Xi address. I swear looking at the sun makes you go blind. I’m digging in behind that.
Warmer applause marks the conclusion of the Xi address. I swear looking at the sun makes you go blind. I’m digging in behind that.
Now we are deep cross over dreaming.
We are the rock. China is the wall.
Xi:
We are the rock. China is the wall.
Xi:
As the Chinese saying goes, true friendship exists only when there is an a binding commitment to pursue common goals. I am confident that with our joint efforts, the friendship between Chinese and Australian people will span over mountains and oceans, such friendship will withstand rain and storm and be a strong and everlasting as the majestic Uluru rock in central Australia, and the Great Wall in northern China.
The Australians often say that those who lose dreaming are lost. As Chinese and Australian people strive to fulfil our respective dreams, let us join hands and work shoulder to shoulder to create a brighter future for China/Australia comprehensive strategic partnership. And enhance peace, stability, and prosperity in the Asia Pacific.