Long march before FTA
The Age, Melbourne
Long march before FTA
By Mary-Anne Toy, Beijing
31 March 2007
Australia’s free trade agreement talks with China concluded their eighth round in Beijing with little progress, despite many "technically useful" discussions.
"We have a long, long way to go," a senior Australian official said yesterday.
It had been agreed at the last round of talks in Canberra in December that China would table an improved offer on reducing its tariffs, but this week Chinese officials said they were unable to do so, blaming lack of time and "other reasons". Australian negotiators said they were not prepared to discuss any further details of their tariff offer until the Chinese side did so.
On the equally sensitive issue of services, both sides have now put in their requests for the removal or reduction in barriers in the areas of telecommunications, transport, tourism, environment, sport and mining. But Australian officials said there appeared little sign that China was ready to move on any of Australia’s requests.
Almost a day was spent discussing investment barriers in the mining industry, where Australian companies hope to make significant gains, after the Australian side identified a long list of regulatory impediments.
Despite the warmth of China-Australia relations, marked by the high number of bilateral visits and the personal backing of President Hu Jintao and Premier Wen Jiabao for the FTA negotiations, the Federal Government has been dampening expectations of an early breakthrough.
Australia hopes to cement its strong trading relations with China by becoming the first major Western economy to conclude an FTA with China. Australia is seeking increased access to China’s markets in wheat, wool, beef and sugar and especially in the growing services sector, but faces considerable resistance, despite Canberra’s arguments that Australian industries are too small to swamp China’s.
The ninth round of talks is due in mid-June, with the venue yet to be decided.
