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China Australia Free Trade Agreement

1. Free trade agreements are created

Answer -  

The Free Trade Agreements also known as FTAs are one of the best ways to open foreign markets to the exporters of the United States. The trade agreements help in the reduction of barriers to the exports of the United States and at the same time, it also protects the interests of the United States and improvises the rule of law in the partner country of the FTA (Grzegorz & Masaaki, 2017).

Trade agreements are when two or more than two nations agree on the terms and conditions of trade between them. They determine the duties and the tariffs that countries are to impose on exports and imports. All types of trade agreements impact international trade (Tan, Sun & Lau, 2013). If the client is inside the boundaries of the country and the provider is outside the nation then the exchange of service is termed as import. A free trade agreement is made between nations to regulate this exchange by imposing rules and laws on the parties to the agreement. Exports on the other hand means goods that are made in the resident country however sold beyond the borders. The countries between whom the agreement is signed tend to free up themselves from trade restrictions and aim to expand business opportunities between them. They generally lower the rate of tariffs and lay trade status one another (Yang & Martinez-Zarzoso, 2014). The most difficult agreements to negotiate is multi lateral agreements. These are between more than three countries. With the increasing number of participants in the agreement, the level of negotiation is also difficult. They are very complex in nature and it is because of its complexity that countries have their own requests and needs. However, once they are negotiated they are very powerful as they cover a large part of the area geographically. The largest multilateral agreement is the North American Free trade agreement. The legal ........

time, it also protects the interests of the United States and improvises the rule of law in the partner country of the FTA (Grzegorz & Masaaki, 2017).

Trade agreements are when two or more than two nations agree on the terms and conditions of trade between them. They determine the duties and the tariffs that countries are to impose on exports and imports. All types of trade agreements impact international trade (Tan, Sun & Lau, 2013). If the client is inside the boundaries of the country and the provider is outside the nation then the exchange of service is termed as import. A free trade agreement is made between nations to regulate this exchange by imposing rules and laws on the parties to the agreement. Exports on the other hand means goods that are made in the resident country however sold beyond the borders. The countries between whom the agreement is signed tend to free up themselves from trade restrictions and aim to expand business opportunities between them. They generally lower the rate of tariffs and lay trade status one another (Yang & Martinez-Zarzoso, 2014). The most difficult agreements to negotiate is multi lateral agreements. These are between more than three countries. With the increasing number of participants in the agreement, the level of negotiation is also difficult. They are very complex in nature and it is because of its complexity that countries have their own requests and needs. However, once they are negotiated they are very powerful as they cover a large part of the area geographically. The largest multilateral agreement is the North American Free trade agreement. The legal status of free trade agreements at an international level is binding by nature. The parties to the agreement need to abide by the trade rules and law that is set by them and they need to follow the same. In case the parties to the contract fail to follow the rules in the proper manner then they shall be penalised as per the law set in the agreement (Petri et al., 2014).

History of ChAFTA

Answer - 

The China Australia Free Trade Agreement (ChAFTA) is a bilateral trade agreement between the governments of Australia and China. Since the time the negotiations began, twenty one negotiating rounds was completed. The deal was successfully completed and the details of the deal were published in media on 17th November 2014. The details were released in public nearly ten years ten years after the first round of negotiations started in the year 2005. The free trade agreement was signed between the countries in the year 2015. The agreement finally came into force in the year 2015 on 20th December (Marks, 2015). The agreement was executed when the Chinese Government completed its legal processes and the Parliament of Australia completed their review.

In the opinion of the Australian Department of Foreign Affairs and Trade in the year 2014, China was regarded as Australia’s largest market of export for both services and goods. It was also a good source of foreign investment and the same accounted about seventy five percent of the total exports. The Prime Minister of Australia, Tony Abbott and the President of China announced that the negotiations for the ChAFTA started on 17th November, 2011. On implementation of the agreement, it was seen that about ninety five percent of the trade that existed between China and Australia would be free from tariff (Petri, Plummer & Zhai, 2014). The agreement was signed on 17th June (Solís & Katada, 2015). The agreement followed the usual treaty making process according to which, the same shall come into force when China shall complete their legislative and legal processes and when in Australia the Australian Parliament shall complete their review.

The China Australia Free Trade Agreement (ChAFTA) is a bilateral trade agreement between the governments of Australia and China. Since the time the negotiations began, twenty one negotiating rounds was completed. The deal was successfully completed and the details of the deal were published in media on 17th November 2014. The details were released in public nearly ten years ten years after the first round of negotiations started in the year 2005 (Tan, Sun & Lau, 2013). The free trade agreement was signed between the countries in the year 2015. The agreement finally came into force in the year 2015 on 20th December. The agreement was executed when the Chinese Government completed its legal processes and the Parliament of Australia completed their review.

Objectives of ChAFTA

Answer - 

China is considered as the largest trading partner for Australia. Trade and investment is one of the primary motives that would lead to Australia’s prosperity in the future. In the year 2016, China bought more than 93 billion dollars of Australian exports and this means that more than quarter of Australia’s exports was bought by China. China is the best market of agriculture, services and resources. Chinese investment in Australia has been continuously growing in the recent years and the same is about to reach 87 billion in the ongoing year.

The China Australia Free Trade Agreement came into execution in the year 2015 on 20th December. The same was formed between the two countries knowing Australia’s successful and large commercial association with China. The agreement was executed with the aim to secure the Chinese markets for Australia and also for better access to Chinese goods, services, business interests and investment (Heilman et al., 2014).

China buys Australia’s agricultural outcome than any other country in the world. In the year 2016, this market was about 10 billion dollars to farmers. The agreement allows Australia to take advantage over their major competitors such as European countries, Canada and United States (Van Hoa & Harvie, 2016). In the field of agriculture and with the help of the agreement, the agreement completely removed tariff over barley of Australia and sorghum. In the coming years, it is expected that there will be reduction in tariff in other agricultural products as well.

China, by Fay, is the largest market for Australia’s energy and resources. In the year 2016, Australia exported more than 73 billion dollars energy, resources and other products. Since the year 2015, more than 92 percent of these products from Australia shall enter into duty free trade and most of the tariffs be removed from the year 2019. On proper execution of the free trade agreement, more than 99 percent of Australia’s energy, resources and exports shall be duty free when they would enter China (Yang & Martinez-Zarzoso, 2014). Trade and investment is one of the primary motives that would lead to Australia’s prosperity in the future. In the year 2016, China bought more than 93 billion dollars of Australian exports and this means that more than quarter of Australia’s exports was bought by China. China is the best market of agriculture, services and resources. Chinese investment in Australia has been continuously growing in the recent years and the same is about to reach 87 billion in the ongoing year (Li, Wang & Whalley, 2014).

Benefits and drawbacks for Australia

Answer - 

The Chinese Market has been a boom because of their ever increasing percentage of the population that comes online and becomes part of the digital business. It is expected by the year 2018 that more than seventy percent of Chinese inhabitants will start shopping online more than once in a week. Doing business in China was probably the last thing one would consider doing when one started their digital company in Australia. Despite the fact that there were no trade barriers, ChAFTA was removed (Yao & Whalley, 2016). The FTA has made it possible for the companies to take advantage of the economic growth in China and offer their services and products to a very growing market with very low involvement of risk. Moreover, Chinese consumers and businesspersons are very open to goods that are offered to them by western companies (Marks, 2015).

There was no reduction on ice, wool, wheat, cotton, maize or rice. Moreover, there were also limitations on the export and import of beef, dairy products and milk and if the limitations were exceeded then Australia has to pay custom duties to China. The Foreign Investment Review Board screening of Chinese investments shall have the duty to conduct screening of investments in the non sensitive sectors. Moreover, Chinese investors shall who will be investing more than 150 million dollars shall have additional rights to bring in temporary migrant workers to Australia without any testing of local labour market (Bergsten, Hufbauer & Miner, 2014).

The Chinese Market has been a boom because of their ever-increasing percentage of the population that comes online and becomes part of the digital business. It is expected by the year 2018 that more than seventy percent of Chinese inhabitants will start shopping online more than once in a week. Doing business in China was probably the last thing one would consider doing when one started their digital company in Australia. The FTA has made it possible for the companies to take advantage of the economic growth in China and offer their services and products to a very growing market with very low involvement of risk. Thus, China and Australia both are enjoying advantages as well as disadvantages because of the free trade agreement. Australia particularly has received more pros than cons as compared to the cons.

Solve the as ChAFTA can be enforced against either China or Australia

Answer - 

The China Australia Free trade agreement is a landmark trade agreement that was formed between Australia and China in the year 2015. The agreement was formed to lower the trade barriers between two countries and it would unlock vast opportunities for the business of Australia in the largest market in Asia. The agreement would also provide vast opportunities for China in Australia. Years before the agreement was signed, China had already established firm control over the market of Japan. China is also regarded as one of the largest foreign buyer in Australia and other fisheries products with the import of total number of nine billion dollars. The main imports of China are goods that are manufactured and the same that is more than 17 billion dollars in the year 2014.

The entry of both the countries as part of the trade agreements in the year 2015 is aimed to broaden and deepen the relationship of trade. New opportunities in the service sector are been opened up and there shall be law firms who will be able to continue to do business in China for the very first time. In the year 2016, Australia exported more than 73 billion dollars energy, resources and other products. Since the year 2015, more than 92 percent of these products from Australia shall enter into duty free trade and most of the tariffs be removed from the year 2019. On proper execution of the free trade agreement, more than 99 percent of Australia’s energy, resources and exports shall be duty free when they would enter China. As per the agreement, China offers Australia with their best services of all times and it offers best commitments of all times. China is considered as the largest trading partner for Australia. Trade and investment is one of the primary motives that would lead to Australia’s prosperity in the future. In the year 2016, China bought more than 93 billion dollars of Australian exports and this means that more than quarter of Australia’s exports was bought by China. China is the best market of agriculture, services and resources. Chinese investment in Australia has been continuously growing in the recent years and the same is about to reach 87 billion in the ongoing year.

The China Australia Free Trade Agreement (ChAFTA) is a bilateral trade agreement between the governments of Australia and China. Since the time the negotiations began, twenty one negotiating rounds was completed. The deal was successfully completed and the details of the deal were published in media on 17th November 2014. The details were released in public nearly ten years ten years after the first round of negotiations started in the year 2005. The free trade agreement was signed between the countries in the year 2015. The agreement finally came into force in the year 2015 on 20th December. The agreement was executed when the Chinese Government completed its legal processes and the Parliament of Australia completed their review.

 

 

Question 2:

Compare and contrast how the international commercial disputes resolved in ICJ and the DSB of the WTO with the High Court of Australia, and the ACICA using examples.

According to Bergsten, Hufbauer & Miner (2014), the ICJ has two tasks mainly i.e. the first task is the peaceful dispute resolution made between the states as per the public international law. Besides, another task is the establishment of the reports made within the international organs and organisations of the ACICA. From the Article 36, it is been mentioned in the ICJ that the competent do matters that are listed in Charta. On using the IRAC method and implementing it in the question, it could only defined about the issues, Rule, Analysis and a conclusion.

Besides, the interpretation made in Charta is also a major part of it. However, ICJ is anticipated in contracts, which are been expressed by the parties heavily. In order, it is been analyzed that the decisions by ICJ are defined on the international law so that the article 28 (II) comes to a decision with the ICJ provided feature. However, it could also be analyzed that the ICJ defined on the article 3 is composed of 15 judges with the ad-hoc judge having a dispute (Anderson & Yotov, 2016). Rather, it is quite influential that ICJ has come to real tribunal only when the execution for the decisions made is guaranteed. Moreover, the decision of ICJ is more of obligation than the judgement. If the state does not execute well, then the coherence with the international law might apply the economic and the diplomatic pressure. From Article 59, if the statute decisions are binding, then the decisions must be enforced with the international organs.

According to Bergsten, Hufbauer & Miner (2014), after the analysis has been made on the dispute resolution of ICJ and WTO, few pros and cons have to be assessed and compared. This would be however been discussed with approaches that could be defined in future. Besides, there must not be any clear definition to international court but there must be criteria to characterize the international courts. It must be effective to say that the courts must have a long standing to be permanent or not. Further, it is also been analyzed that the international legal instruments must not be applied to the international law for deciding to the cases (Cavusgil et al. 2014). The cases that are been decided should have the rules and procedures that exist and cannot be modified with the parties. It is also intended that there must be around 17 Courts at present and there must be a criteria to hold the International Court of Justice and the World Trade organisations. Unlike, this can never be related to the ICJ, which has been resolved in a commercial matter effectively.  ICJ is effective but not that universal because of the disputes defined between the states. From the article 95 of the UN Charta, this would allow its members to bring cases before another court comes in the situation to be competent in jurisdiction with the ICJ (Grzegorz & Masaaki, 2017). Moreover, this also opens door of WTO and the Dispute Resolution where all the states been defined with the International Court should take a justice even if all the members of the ACICA are called by the Universal jurisdiction.

It is also been analyzed that the international commercial disputes are resolved in ICJ with the High Court of Australia, and the ACICA assesses the major guidelines to compare on how these are being developed with the arbitration institutions. According to Heilmann, Rudolf, Huotari & Buckow (2014), it is intended that the new guidelines been set would be applied on the territorial body that has secretary appointments administered by ACICA. However, this would also include arbitrations which are been analyzed with the UNCITRAL Arbitration Rules. Besides, the ICJ defined could also be expressed with the non-ACICA administered process with the consultation with ACICA. Accordingly, the guidelines were set also help to encourage transparency with the appointment, remuneration and duties of the tribunal secretaries (Irwin, 2015). This includes an example where it is been highlighted about the requirement which most of the parties need a consent from the modification of terms when decided with the appointment made as per the arbitral secretaries. Moreover, it could also be intended that the ACICA guidelines also match the institutional attempts that could regulate use of the arbitral secretaries so that it can form uniform standards in developing a good practice (Kawai & Wignaraja, 2013). Thus, a key difference that can be found is the various guidelines, which requires party consent form during the appointment made for the arbitral secretaries.

Alternatively, a broad spectrum could be found with the permanent bodies that are been supported by The Hague (ICJ), Hamburg (ITLOS) or the Geneva (WTO Appellate Body). This is quite effective because this is been supported by the secretariat or the registry. In case, it is also been intended that the Rule intended is the set of procedures, which are mainly being capable to be modified with a framework that cares on how situation is to be decided (Kohl, Brakman & Garretsen, 2016). It is also been analyzed that the Rules of the Court of ICJ with High Court of Australia, and the ACICA could be revised periodically so that the effective working procedures work well. In case, it is also been reprimanded that the consultation body must be unique so that there could be modified changes to the circumstances been developed. Rather, it is pertinent that the judicial bodies are mostly permanent and has a long life to participate in reinforcing the culture with good continuity. Moreover, it is been defined that the ICJ does consist of 15 jurists that are been elected by ACICA.

Another thing is the dominance of the actors that are been defined by the inter-state judicial bodies and these are very important to the ICJ. As such it been analyzed that around 193 members of ICJ Statute have the capability to appear in the court and take contentious cases evidently (Li, Wang & Whalley, 2014). For this situation, in case of all the instances, the Court’s jurisdiction must be limited to the terms and this would hence forth be granted. However, the treaties providing court’s jurisdiction are not that limited to make declarations accepting Court’s compulsory conditions of jurisdictions. Thus, it is fiscally intended that any such disputable party having any convention must resolve the subject matter very well.

The concluding point defined for this subject analyzes some conclusions that have effective discussion to be analyzed. It is been well concluded that the enforcement have settled out the decisions, which are not that straight forward but despite few proposals intended by the World Forum, it is concluded by the World Environment Court with a strong judgment that the environmental chamber and uncertainty do constitute environmental dispute when being opposed to investment discipline. On following this, it is very much productive to pursue the policy route so that integration can be done with agreements and institutions, which are being fully informed. Another thing is that many institutions listed from this can also benefit on the enhanced ability that could deal with the environmental output when defined with the spectrum of ICJ and the DSB of the WTO with High Court of Australia and ACICA.

 

 

References:

Anderson, J. E., & Yotov, Y. V. (2016). Terms of trade and global efficiency effects of free trade agreements, 1990–2002. Journal of International Economics99, 279-298.

Bergsten, C. F., Hufbauer, G. C., & Miner, S. (2014). Bridging the Pacific: Toward Free Trade and Investment between China and the United States. Peterson Institute for International Economics.

Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia.

Grzegorz, M., & Masaaki, T. (2017). The European Union-Japan Trade Cooperation-Towards a Free Trade Agreement.

Heilmann, S., Rudolf, M., Huotari, M., & Buckow, J. (2014). China’s shadow foreign policy: parallel structures challenge the established international order. China Monitor18.

Irwin, D. A. (2015). Free trade under fire. Princeton University Press.

Kawai, M., & Wignaraja, G. (2013). Patterns of free trade areas in Asia.

Kohl, T., Brakman, S., & Garretsen, H. (2016). Do trade agreements stimulate international trade differently? Evidence from 296 trade agreements. The World Economy39(1), 97-131.

Li, C., Wang, J., & Whalley, J. (2014). China's Regional and Bilateral Trade Agreements (No. w19853). National Bureau of Economic Research.

Marks, S. V. (2015). The Asean–China Free Trade Agreement: Political Economy In Indonesia. Bulletin of Indonesian Economic Studies51(2), 287-306.

Petri, P. A., Plummer, M. G., & Zhai, F. (2014). The effects of a China-Us free trade and investment agreement.

Solís, M., & Katada, S. N. (2015). Unlikely Pivotal States in Competitive Free Trade Agreement Diffusion: The Effect of Japan's Trans-Pacific Partnership Participation on Asia-Pacific Regional Integration. New Political Economy20(2), 155-177.

Tan, H., Sun, A., & Lau, H. (2013). CO 2 embodiment in China–Australia trade: The drivers and implications. Energy Policy61, 1212-1220.

Van Hoa, T., & Harvie, C. (Eds.). (2016). New Asian regionalism: responses to globalisation and crises. Springer.

Xin, L. (2014). A general equilibrium analysis of the TPP free trade agreement with and without China. Margin: The Journal of Applied Economic Research8(2), 115-136.

Yang, S., & Martinez-Zarzoso, I. (2014). A panel data analysis of trade creation and trade diversion effects: The case of ASEAN–China Free Trade Area. China Economic Review29, 138-151.

Yao, D., & Whalley, J. (2016). The China (Shanghai) Pilot Free Trade Zone: Background, Developments and Preliminary Assessment of Initial Impacts. The World Economy39(1), 2-15.