Australian Officials Say China Trade Deal Close

China and Australia, which have been trying to set up a bilateral free trade agreement for years, are determined to sign a deal by the end of this year, Australia’s trade chief said on Tuesday after talks with Chinese leaders.

But there has been little sign of a breakthrough despite Prime Minister Tony Abbott’s expressed intent to seal an agreement before November.

Australian Trade and Investment Minister Andrew Robb said the deal with China was on track, but declined to give details of talks, saying he didn’t want to “put his cards on the table”.

“The conclusion was that it was doable this year. It could be completed, and that both governments are determined to bring it to completion later this year,” Robb said after meeting with Xu Shaoshi, the chairman of China’s powerful economic planning agency, the National Development and Reform Commission.

“There is a negotiation, so anything can happen. But we’re both confident and we went through in some detail what ground had to be covered, including agriculture,” Robb told reporters.

Free trade talks have been stymied by Beijing’s concerns over opening markets to Australian food. There are fears in Australia that an influx of cheap Chinese goods could threaten domestic producers facing a strong local currency and high costs.

China has expressed worries over Australia’s stringent approval process on foreign investment by state-owned enterprises. Canberra, like many of China’s trading partners, wants Beijing to improve access to key industries in which foreign investment is currently restricted.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza