A trade deal signed with great fanfare between China and Australia has been touted as a major step towards Australia shifting its economy from a “mining boom” to a “dining boom,” but the reality is likely to be more sobering.
Australia is looking to replace its reliance on exports of minerals such as coal and iron ore as mining investment wanes and demand begins to dwindle. The government would prefer to expand its food and agricultural exports to capitalize on a rapidly growing Asian middle class.
It has high hopes for the proposal for a free trade agreement (FTA) signed on Monday by Prime Minister Tony Abbott and Chinese President Xi, but the more likely winner from the deal is the services sector.
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