Australia signs off on China trade deal

Australia signs off on China trade deal
By admin


Yesterday saw Australia’s relationship with China grow from the exchange of natural resources to a strategic relationship centred around travel and cultural exchange.

China has offered Australia its services commitments in a Free Trade Agreement (FTA), including new market access for Australian travel intermediaries such as travel agents to establish subsidiaries in China.

AFTA congratulated the Australian Government for finalising the China–Australia Free Trade Agreement (ChAFTA) which was signed yesterday by the Prime Minister of Australia, The Hon. Tony Abbott MP and President of China, Xi Jinping.

The agreement delivered a number of wins for the Australian travel sector, including a new Chinese Consul for South Australia assisting in visa facilitation for Australia’s visiting China, and the implementation of the new Colombo plan to allow Australian’s to study in China.

Tourism Accommodation Australia (TAA) has also welcomed the agreement, saying Australia’s hotel and tourism sector could be a major benefactor from the closer ties.

In particular, TAA welcomed the announcement from the Federal Government that would see Australia grant visas for up to 5000 Chinese work and holiday makers annually, in addition to 1800 Chinese skilled workers made eligible to apply for 457 work visas.

Commenting on the changes to the visa arrangements, acting CEO for TAA, Carol Giuseppi, said that the timing of the announcement was particularly important.

“Australia is undergoing the largest expansion of its hotel sector in over 20 years, with new hotel developments across the country, so it will be beneficial to have access to a pool of labour to work in both existing and new hotels,” Giuseppi said.

But she also commented the hospitality sector would benefit even further if the Working Holiday Visa programme was extended from 12 months to 24 months duration, with a corresponding increase in the working portion of this from six months to 12 months.

However one tourism body is unimpressed with the China-Australia agreement, with Tourism & Transport Forum (TTF) stating that it does nothing to reduce the barriers to travel between the two countries.

TTF chief executive officer Margy Osmond said that while the FTA is a great breakthrough, it ignores the biggest game-changed for Australia’s largest services export.

“The FTA frees up the movement of goods between Australia and China, but it does not free up the movement of people between the two countries,” Osmond said.

“Just last week the US and China announced a scheme granting visitors from each other’s country 10-year visas. Australia is being left behind and reform is needed to help restore Australia’s competitive position.”

 “The tourism industry generates $100 billion in expenditure every year and directly employs more than 540,000 people, and visa reform would see that economic contribution become even bigger.”

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