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Australia and China have a longstanding relationship with a high level of interaction on trade, investment, education and tourism. China is of great significance to Australia as a bilateral, regional and multilateral partner; it is a significant member of the WTO, a major player m APEC, Australia's largest trading partner in 2007, and a major source of migrants, students and tourists. Australia is also of great importance to China; in 2007 Australia was China's 7th largest import source and 15th largest export destination (DFAT 2008). This paper uses a merchandise trade analysis to show how Australia and China perform in bilateral economic relations and the trend of the trade between them. Findings suggest that there is a robust and continuing growth trend between the two economies based on a strongly complementary trading relationship. The relative importance of one to the other is stronger and more significant, especially China's significance to Australia. Trade liberalisation in goods by eliminating tariffs will be a crucial component of a possible FTA between Australia and China. |
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