Generally, the paper "China Australia Free Trade Agreement Advantages to China" is a good example of a micro and macroeconomic case study. The trade agreement was made in order to create better certainty for the exporters in the industry by locking in the zero tariffs on the major resources and products. The tariffs are going to go down for other energy products and resources such as the elimination of 3 percent tariffs on coking coal as well as the 6 percent tariff on thermal coal by January 2017. In the past, the Australian producers and exporters were at a competitive advantage as compared to the other nations within regions that had free trade agreements with China in place because of the significant tariffs that the exporters faced.
The new trade agreement provided that Australia and China were to get an advantage over the major agricultural competition. The China Australia Free Trade Agreement is going to come up with important chances for manufacturers like tariffs which are eliminated or reduced to make the manufacturers more competitive within the growing scene of the market.
This agreement is going to see an elimination of tariffs within a number of industry sectors from manufacturing to pharmaceuticals. Australia is the largest service import market for China with an industry rate that exceeded $8.8 billion in 2014. The China Australia Free Trade Agreement is going to come up with Australia’ s best service commitments with the inclusion of a provision for definitively improved access to the market that has not been seen in the previous trade agreements done with other nations. Education industry The Chinese Australian Free trade Agreement is going to allow the private higher education providers that have access to Australia’ s corresponding higher education market.
Australia may list the Chinese private higher education facilities on the Ministry of education website for the region. Health and palliative care The healthcare and palliative care sector is going to be allowed to establish wholly-owned Australian hospitals in Shanghai, Tianjin and other well-known provinces. There are also going to be Chinese owned aged care facilities established in Australian urban centers without locational restrictions.
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retrieved from http://www.wsj.com/articles/china-to-ease-limits-on-overseas-investments-1432841526
Zhen, S. (2015). Manufacturers step up search for low cost alternative to China. South China
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