FTA feasibility study to conclude
(China Daily)
Updated: 2005-03-11 08:48

China and Australia are expected to complete a joint feasibility study into a Free Trade Agreement (FTA) within this month.

"All issues of major importance have been resolved during my meeting with China's Minister of Commerce, Bo Xilai, in finalizing the joint study," Australian Trade Minister Mark Vaile said yesterday at a press conference in Beijing.

The ministers' discussion included a number of issues related to the feasibility study, such as agriculture, services and manufacturing.

Once the remaining details of the feasibility study were solved, the recommendations would be submitted to the governments of both sides.

"We expect them to be considered before our Prime Minister's visit to China in April," said Vaile.

He said Australia would grant market economy status to China at the same time that the two countries launch the FTA negotiations.

The ministers agreed that all products and services must be included in any future FTA negotiations.

The joint feasibility study, announced as part of the trade and economic framework signed by Australia and China in October 2003, was due for completion by October this year.

The study covers goods, services, investment and other issues, such as intellectual property and transparency.

Following good progress, the trade ministers of the two countries agreed last April that the completion of the FTA study could be fast-tracked.

The visiting Australian trade minister also met Ma Kai, minister of the National Development and Reform Commission, and Li Changjiang, minister of China's General Administration of Quality Supervision, Inspection and Quarantine, to discuss developing the energy and resources trade and agricultural market access issues.

Australia was the ninth-largest trade partner of China and China was Australia's third-largest trade partner in 2004.

Bilateral trade rose over 50 per cent year-on-year to US$20.39 billion in 2004.

China's exports to Australia stood at US$8.84 billion, reflecting an increase of 41.1 per cent, while China's imports from the country reached US$11.55 billion, up 58.3 per cent year-on-year.

Great potential for development remains in the trade relations between the two countries as Australia's trade with China only accounted for some 1.8 per cent of the total trade volume of China's top 10 trade partners last year.

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