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After 10 years of marathon negotiations, the China-Australia Free Trade Agreement (ChAFTA) was signed in 2015. One of the major breakthroughs was the arrangement made to liberalize trade in the agricultural sector. This article reviews and assesses the actual implementation of the ChAFTA, revealing that trade liberalization in agriculture presents both opportunities and challenges for the two countries. Since the enforcement of the ChAFTA in December 2015, Australian agricultural products have gained greater access to the Chinese market, bringing enormous opportunities to Australian farmers and businesses. The import growth also satisfies Chinese consumers’ growing demand. Beyond that, it brings unprecedented competition to Chinese food and agricultural companies, pushing them to improve product quality and incorporate corporate social responsibility principles into their daily business operations. Meanwhile, Australia and China face huge challenges. For Australia, in the face of aggressive and well-endowed competitors such as New Zealand and the United States, how to gain and maintain a competitive advantage in the Chinese market is an ongoing battle. For China, with more foreign agricultural products entering the Chinese market, how to restructure its own agricultural industry to achieve the maximum efficiency is a priority that needs to be addressed with care. However, both the Chinese government and the Australian government have demonstrated a strong will to collaborate. They are capable of overcoming any difficulties and challenges that they may come across. This article predicts a promising future for the China-Australia agricultural trade. |
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