China-Australia relations: both sides point fingers, saying ‘letter and spirit’ of trade agreement not honoured
- When the China-Australia Free Trade Agreement (ChAfta) was signed five years ago, both Canberra and Beijing agreed to review it at least every five years
- Neither China nor Australia has shown the enthusiasm or willingness to further upgrade their bilateral trade relations, given their worsening trade dispute
The first five-year review of the historic free-trade deal between China and Australia appears dead in the water as the two countries continue their war of words with little sign of a truce in the escalating bilateral conflict.
With the anniversary of the China-Australia Free Trade Agreement (ChAfta) fast approaching on December 20 – the agreement states that a review should be completed by that date – neither side has made visible moves to undertake the previously agreed-upon review that was intended to deepen and expand trade.
Instead, each is accusing the other of going against the spirit of free trade.
The souring of the bilateral relations between the two countries does not bode well for the possibility of any expansion of the trade deal. Although not having a review means that, at a minimum, there will be no change in their two-way trade based on a previously agreed favourable tariff schedule, which offers zero taxes on many products.
But it also means that Beijing and Canberra would be wasting an opportunity to talk about their trade disputes and political differences.