John Williams (NSW, National Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann, representing the Minister for Trade and Investment and the Treasurer. Will the minister inform the Senate how the China-Australia Free Trade Agreement will benefit Australian exporters, particularly in the services sector?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Williams for that question. The China-Australia Free Trade Agreement is, of course, a great win for Australia and it is particularly a great win for our services sector. This is important, because services today constitute about 72 per cent of Australia's economic activity. China is indeed Australia's largest services market, with exports in services in 2013 valued at about $7 billion. China has offered Australia the best-ever services commitments in a free trade agreement—other than China's agreements with its own regions, Hong Kong and Macau.

Most valuably, the market opening includes new or significantly improved market access for Australian banks, insurers, securities and futures companies, law firms and professional services suppliers—education services exporters, as well as health, aged care, construction, manufacturing and telecommunications services—to businesses in China. China is already Australia's largest education services export market, worth about $4 billion in 2013. China will list all Commonwealth registered private higher education institutions on its Ministry of Education website, enabling an additional 77 institutions to the existing 105 Australian institutions to increase their profile and marketing across the Chinese markets. This means more money for Australia; it means more jobs. It is part of our plan to build a stronger, more prosperous economy, where everyone can get ahead.

China will provide new market access for Australian companies to undertake joint construction projects. With Chinese counterparts in Shanghai, Australian companies will be exempted from business restrictions— (Time expired)

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister advise the Senate how the China-Australia Free Trade Agreement will assist access by Australian financial services providers to the Chinese market?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Our world-class financial services sector does extremely well under this free trade agreement. China has committed to deliver new or improved market access to Australian financial services providers in the banking, insurance and funds management areas, as I said in response to the primary question. China has allowed overseas trading of China's currency in Australia for the first time, improving the efficiency of cross-border renminbi transactions. China has also allowed Australia's funds management industry enhanced access to the Chinese onshore securities market—an area of significant potential growth for Australian businesses.

For the first time in an FTA, China has committed to allow Australian insurance providers access to China's lucrative statutory third-party-liability motor vehicle insurance market without imposing establishment or equity restrictions. China has agreed to a reduced waiting period for Australian banks to engage in local currency business, from three years to one year, and removed the minimum— (Time expired)

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will the minister inform the Senate how the China-Australia Free Trade Agreement will grow and boost employment in the financial services sector?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I refer Senator Williams to a statement that was released by the Financial Services Council of Australia, where they pointed out:

The agreement builds the architecture Australia needs to export financial services in the Asian century …

I am quoting from their release. They say:

Australia is only the fourth country in the Asian region to be granted an RQFII quota—

that is, the renminbi qualified institution investor quota—

There are only 12 countries with this recognition.

They also say:

The agreements go further than any existing arrangements that China has with other countries which is a testament to the high level of expertise in Australia's funds management industry …

…   …   …

China presents an enormous opportunity for the Australian funds management industry, and the Government should be congratulated for negotiating this landmark agreement …

That is what the Financial Services Council said. Not only have we got great deals for specific parts of the financial services sector; we also agreed to establish— (Time expired)