The Analysis On China-Australia FTA Necessity And Economic Effect

Enter the twentieth Century, with the development of global economy, the economic globalization and regional economic integration have become two big marked characteristics of world economic development, of which, the integration of regional economy is developing more rapidly. From 1948 to 1994,GATT received the number in connection with the goods trade agreement was 124,from 1995 to 2005,WTO acceptance the number of the regional trade agreements was 206, as the rapidest growth period of regional trade agreement. According to statistics, at present, the world has more than 1200 free trade area, of which 15 developed countries have established 425,67 developing countries have set up 775.As the second largest economy, second country in trade and the largest developing country, China is actively involved in WTO as the main body of the global multilateral trade system at the same time, more attention has been paid to regions or areas of bilateral or multilateral system greatly accelerated the pace of regional economic integration. As of 2011 July, China has established 16 free trade areas with 28 countries and regions in five continents.There have important strategic and complexity between China and Australia negotiations on the free trade area. On the one hand, Australia has special status in the Asia-Pacific geopolitical, diplomacy and resources and economic aspects, and has apparent complementary with China. The establishment of a free trade area helps to alleviate the contradiction between rapid development of Chinese economy and the sources of energy, raw materials and other resources. Since 1972 the establishment of diplomatic, the bilateral economic and trade relations is stability in the long-term. In 2010, the bilateral trade amounted to 88092 million dollars, an increase of 46.5%, reached 2.96% in the proportion in China's foreign trade, of which, China exported 27226 million dollars to Australia, an increase of 31.9%, accounting for 1.73% of China's total export value; China imported of 60866 million dollars from Australia, an increase of 54.1%, accounting for 4.36% of China's total imports. By 2010, Australia had become the seventh largest trading partner of China, the fourteenth largest export market and sixth largest source of imports, at the same time, China has become Australia's largest trading partner, the first largest source of imports and the largest export market. On the other hand, as the western developed country, Australia wants to gain more access to the market from the FTA negotiations, at the same time, Australia takes the strict quality safety standards to domestic agricultural products, high tariffs to the import of textile industry. These become the focus on free trade area negotiation. In April 18 2005, the two countries signed" The commencement of negotiation of a free trade agreement between China and Australia" in Beijing, July 5 2011, bilateral free trade agreement negotiations has been carried out in the sixteen round.This paper using a large amount of new data, not only introduced the Chinese and Australian trade current situation, but also respectively introduced their investment current situation, analyzed China and Australia's foreign trade market structure and product structure, and made a comparison. Secondly, detailed analyzed the Chinese and Australian bilateral economic and trade situation, combined with the trade intensity index and trade competitiveness index, in-depth excavation of bilateral trade potential, finally, analyzed the effect of Chinese and Australian free trade area. On this foundation, gave policy recommendations to the development of China-Australia economic and trade relations and the establishment of bilateral free trade area.The main conclusions are:one, Chinese and Australian foreign trade market structure shows a concentration and similarity features, both concentrated in Japan, Korea, the European Union and the United States; two, bilateral trade grew rapidly and complementary, China mainly exports electronic products and equipment, machinery and equipment,the furniture and textile products and other industrial products, Australian mainly exports mineral products, base metals and raw materials and other primary products; three, compared with Australia exports to China, China's export strength index on the low side, export capacity is weak, and China's trade deficit is increasing.