Speaking in Beijing last week, Hooke said a Free Trade Agreement (FTA) between China and Australia would provide a critical government-to-government framework for strengthening an already impressive trade and investment relationship.

 

“Even though Australian and Chinese companies are strongly investing in a long-term partnership, there will be greater certainty in security of supply and market access for both partners under a formal trade and investment agreement,” he said.

 

“There is no guarantee that Australia will continue to be a preferred and major supplier to China’s burgeoning demand for resources. In an increasingly globalised industry, with converging global supply, Australia will continue to be challenged as a strategic location for the supply of minerals and energy.”

 

Hooke said negotiating a bilateral FTA provided an opportunity to remove practical obstacles to two-way trade and investment in the exploration, production, processing and trade in minerals and related technology and services.

 

He said an FTA would need to deal with China’s reform commitments to the World Trade Organisation, specifically tariffs, non-tariff barriers (standards, testing, customs, and quarantine), intellectual property regulation and enforcement, anti-dumping administration, and trade distortions caused by China’s state trading enterprises.

 

The agreement would also focus on reforming “beyond border” measures that restrict trade and investment and add significantly to the cost of doing business.

 

Hooke said technical cooperation was a critical element of the FTA, with Australia able to assist Chian with mine safety practices and technology, leading environmental practice and technologies, energy efficiencies, emerging clean coal technologies, and education and skills development.

 

“Mining technology and services exports from Australia match wine exports, and 60% of the world’s mining software is written in Australia,” he said.