New agreement with China to drive economic co-operation

Today, Isigned an important agreement with China's Commerce Minister Zhong Shan thatwill underpin greater trade and investment between our two countries.

The agreement signals our intentionto commence reviews of the services and investment elements of theChina-Australia Free Trade Agreement (ChAFTA), and to review our InvestmentFacilitation Arrangement Memorandum of Understanding, by the end of the year.

ChAFTA already supports increasedservices trade and investment flows by providing improved access and increasedregulatory certainty for Australian business. Following these reviews, we willwork with China to further reduce barriers to trade in services, agree onadditional protections for investors and open up new commercial opportunities.

Both parties agreed to bring theinvestment review forward by one year, reflecting the priority we attach toenhancing two-way investment.

This new agreement builds upon thesuccess of ChAFTA. After only one year, the benefits are clear – in 2016, winesales were up 38 per cent to $470 million, skin care products by 82 per cent,and the value of fresh lobster exports quadrupled.

ChAFTA has given Australianbusinesses a competitive advantage that is driving Australian exports andcreating new jobs.

ChAFTA is the most favourable tradedeal China has ever done with a developed economy. It has put Australianexporters in pole position to capitalise on China's growing middle class andtheir increasing demand for the high quality goods and services Australia offers.

Business is booming for those whohave taken advantage of the preferential access the agreement offers. Theresults we are seeing are fantastic and they are only going to get better astariffs continue to fall before being eliminated altogether.

The Turnbull Government will continue to pursue anambitious free trade agenda and agreements like ChAFTA to fuel our economy andcreate more jobs.