Arthur Sinodinos (NSW, Liberal Party, Cabinet Secretary) Share this | Hansard source

I thank Senator Bernardi for his question and for his ongoing interest in trade and investment globally. The China-Australia Free Trade Agreement is a big opportunity for jobs and exports in Australia. We all know that but we need to put this in an even bigger context—that is, the transformation of the Chinese economy over the last four or five decades. The biggest poverty reduction initiative in global history is the economic development of China. What we have done in this agreement, which was started 10 years ago and concluded under this government, is put ourselves on the ground floor of the next stage of the transformation of this great economy, which will dominate the Asia-Pacific in decades to come.

It is important for us to recognise under this agreement that 95 per cent of our exports to China will enter duty free and we will have opportunities for Australian business in a wide range of sectors—agriculture, processed foods, resources and energy. What is important here is, as they transform to greater reliance on domestic consumption as the incomes of Chinese people go up, their demand for processed foods, their demand for advanced manufacturing, their demand for advanced services will increase and Australia has a capacity across the board to service those needs. This agreement puts us in the box seat to meet those requirements.

It is estimated that ChAFTA will deliver more than $18 billion of benefits to Australia over the coming decade. So embracing free trade and modernising our economic relationship with China will be a pillar of our future prosperity in the region. By drawing China more and more into the global system of rules, we also encourage a much more peaceful Asia-Pacific.