China and Australia Revamp Trade Pact

Memorandum signals deeper economic cooperation ahead of FTA’s 10th anniversary.

China and Australia have solidified their commitment to strengthening economic ties by signing a crucial memorandum of understanding (MoU) to enhance their Free Trade Agreement (FTA). This key agreement was reached in the presence of top leaders, highlighting its strategic importance.

Boosting Bilateral Trade

The MoU aims to improve the implementation and review of the existing FTA, which was first established in 2015. As the agreement approaches its decade-long milestone, this initiative underscores a mutual desire to foster continued growth in trade and investment between the two nations. The pact has historically delivered significant economic advantages and cultivated robust bilateral cooperation.

Under the new accord, both countries have committed to a joint review process. This review is designed to identify potential areas for enhancement and expansion, ensuring the FTA remains adaptive to shifting global economic landscapes. This forward-looking approach signals a dedication to promoting long-term cooperation and strengthening institutional support for their economic relationship.

Focus on Future Growth

The newly inked agreement is set to pave the way for a comprehensive review. Chinese media reports indicate that this process will actively seek opportunities to promote greater trade and investment liberalization. The objective is to ensure the FTA continues to be a responsive and effective framework for China-Australia economic relations.

This strategic collaboration aims to ensure the agreement remains relevant and beneficial amidst evolving global and regional economic dynamics. For instance, bilateral trade between Australia and China reached AUD 210.2 billion in 2022-23, demonstrating the significant economic interdependence (Department of Foreign Affairs and Trade).