Share

Australia, China trade deal on the cards

Sydney - Chinese President Xi Jinping's upcoming visit to the remote island state of Tasmania underscores Australia's push to ramp up agricultural exports, with the two countries on the verge of signing a free trade agreement.

Australia is attempting to transition from a reliance on exports of minerals such as coal and iron ore to expanding its food and agricultural exports to a growing Asian middle class, moving from a "mining boom" to a "dining boom".

A free trade agreement with China would be a huge boost for that aim and Tasmania, the only Australian state with a ban on genetically modified food crops and animal feed, is at the heart of the country's high-end production.

China is already Australia's largest trading partner, with two-way trade of about $150bn in 2013. But China has been concerned about opening its markets to Australian food and unhappy with strict Australian limits on investment by China's state-owned enterprises.

In Australia, meanwhile, ownership of farmland by foreign investors is a sensitive issue, but Prime Minister Tony Abbott has made reaching an agreement with China a priority.

Expectations are high that a deal will be announced after Xi's visit for the Group of 20 summit in Brisbane.

Xi will follow his Australian state visit with a trip to New Zealand, which already has a free trade agreement with China, benefiting from phased out tariffs in its key dairy industry.

On the eve of Xi's visit, Australian officials said a separate deal was almost agreed for Australia to eventually export up to 1 million head of cattle a year to China, worth about a$1bn ($856m), to help meet a growing appetite for red meat.

Tasmania has found a range of its high-end produce, from beef, to salmon and the mustard-like wasabi, in great demand in Asia.

Xi will be presented with a "Bobbie Bear", a lavender and wheat stuffed soft toy that became a craze in China after actress Zhang Xinyu said it was her favourite bedtime companion, when he visits Hobart next week.

Media said Xi would also hold talks on using Hobart as a base for its Antarctic territory, where it has been rapidly expanding its presence.

China's official Xinhua news agency reported this week that China plans to install a satellite facility in Antarctica, where it is also building its fifth station and planning an airstrip.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.20
-0.2%
Rand - Pound
23.90
-0.3%
Rand - Euro
20.45
-0.3%
Rand - Aus dollar
12.32
-0.2%
Rand - Yen
0.12
-0.4%
Platinum
947.20
-0.3%
Palladium
1,023.50
-0.6%
Gold
2,385.69
+0.3%
Silver
28.37
+0.5%
Brent Crude
87.11
-0.2%
Top 40
66,617
-0.9%
All Share
72,677
-0.8%
Resource 10
62,814
-0.8%
Industrial 25
97,435
-1.0%
Financial 15
15,400
-0.5%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders