Explanatory Memorandum
(Circulated by authority of the Minister for Immigration and Border Protection the Honourable Peter Dutton MP)Implementation and review
196. Following the conclusion of negotiations in November 2014, the text of ChAFTA will be translated and undergo legal verification before it is signed. Both English and Mandarin versions will be official versions of the agreement. Following Cabinet and Executive Council approval, the finalised FTA text will be signed by representatives of the Australian and Chinese governments. The full text of the FTA will be released publicly once the agreement is signed. Following signature, the text will be tabled in Parliament and examined by the Joint Standing Committee on Treaties.
197. Implementation of ChAFTA will require changes to: the Customs Act 1901; the Customs Tariff Act 1995 and associated regulations; the Foreign Acquisitions and Takeovers Regulations 1989; and the Life Insurance Regulations 1995. In addition, a Determination will be required under the Migration Act 1958.
198. Once domestic processes are completed, including amendments to relevant legislation and regulatory changes, Australia and China will exchange diplomatic notes advising that the ratification process has been completed by both Parties. Both Parties are aiming for entry into force during 2015.
199. The provisions of ChAFTA comprising the 'built-in agenda' set a range of reviews to deepen liberalisation and expand market access. For the bilateral goods trade, China and Australia will review ChAFTA within three years with a view to expanding market access, followed by further reviews at least every five years. For services, China and Australia will consult within three years, with a view to progressive liberalisation of measures affecting trade in services, followed by subsequent reviews. Both Parties have agreed to a broad cooperation agenda in a range of sectors including financial services, legal services, education and Traditional Chinese Medicine (TCM). The Investment Chapter includes a commitment on future negotiations to expand market access and further develop investment protections. ChAFTA contains a commitment to negotiate a reciprocal agreement on government procurement after the completion of China's negotiations to join the WTO Government Procurement Agreement.