Occasional Paper Release - "China-Australia Free Trade Agreement: Implications for Canada"

5 March 2015

In the wake of the recently concluded China-Australia Free Trade Agreement (ChAFTA), the China Institute at the University of Alberta has released a paper on the subject of the discussions held between the two countries. The intent of ChAFTA is to facilitate trade and reduce tariffs and investment barriers, which is expected to contribute an estimated AU$20 billion (C$19.9 billion) to bilateral trade.

This issue is of topical importance to Canadian business, as the ChAFTA stands as the most comprehensive trade agreement China has completed with a major Western economy. ChAFTA can be expected to pose both significant challenges for Canadian trade into China, as well as opportunities to learn and observe from the Australian experience. Some Canadian exports which compete with Australian products for market share in the Chinese economy are potentially at risk.

“Aware of the purchasing power of China’s growing middle class, Australia has made the promotion of agricultural and service exports central to the agreement, both sectors being of importance to Canadian industries,” China Institute Director Gordon Houlden noted.

Read the full paper here.