Ian Macfarlane on the China-Australia FTA: Eliminating barriers to investment

BEIJING – In an interview with Caixin media, Australia’s Minister of Industry and Science, Ian Macfarlane, on Australia’s recently signed free-trade agreement with China, Macfarlane says the focus of the agreement is on market access and investment opportunities, and that the details are not fully fleshed out (see ATI April 20115). “We do want to make sure (we) eliminate barriers to investment between our two countries, and the FTA will definitely address that,” he is quoted as saying.

Tollowing are the main takeaways of the interview:

On whether separate FTAs with Japan and South Korea will lead to increased competition: “The relationships with Japan, China and South Korea rely on different elements . . . for instance, the China FTA is a very, very comprehensive and broad FTA. FTA’s aren’t about taking away competition. They are about providing market access and investment opportunities in both directions, in addition to the necessary technology and science that goes into education and research.”

On China’s future role in developing Australia’s Northern Territory: “China is already involved in the Northern Territory’s mining and gas industries, in addition to several others … the Chinese want to build plants there [and are] involved in agriculture, as well. They’ve invested in the sugar cane industry, and have expressed interest about investing elsewhere. There are definitely a lot of good opportunities for China in northern Australia.”

On local complaints about Chinese investors raising property prices in Australia: “…I don’t think you can attribute rising house prices to Chinese investors specifically. We established a set of rules, as well as an application process, for purchasing property in Australia … [and] investment from China has been very good for Australia. Had the Chinese not bought [Queensland cotton-growing operation] Cubbie Station, then that property would have been broken up.” www.webershandwick.cn (ATI).