WHEN the loud shirts, limousine convoys and security details of 19 of the world’s 20 most developed countries have left Brisbane the legacy for regional Australia will be trade, and leading the opportunities on this occasion will be China.
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While the ceremony and international posturing has been played out in Brisbane and Canberra, agreements like the free trade deal with China will bring benefits to regional areas which have been spectators at this grand diplomatic and political event.
A free trade agreement with the country which is already Australia’s largest trading partner will improve access for existing exports and create export opportunities for new products and for services which are the growth area in our economy.
All of this will help create prosperity for Australians and bring some of the security that China is also seeking.
As Australians watch the price of iron ore and coal decline after the peak in the mining boom we should have some understanding of what is driving Chinese interest in a trade deal.
To be overly dependent on one customer buying raw materials is imprudent to say the least, but to be over dependent on one supplier, particularly when that supplier is supplying food to the most populous country on earth, could be disastrous.
Both countries understand the benefits of free and open trade and the pitfalls of being too reliant on one trading partner or one commodity.
As Chinese demand for imported food grows in line with its growing prosperity, China will continue to negotiate trade agreements around the globe.
Australia must be prepared to supply the commodities China wants but at the same time pursue other opportunities in other markets.
Critics of deals with China point to an imbalance in the rules governing investment in each other’s economies but they fail to see that the dependence runs both ways.
It is true China will push for investment opportunities here but it is also opening the Chinese market to investment by Australian companies in education, health care and other services in addition to commodities.
Neither country sees the deal as monogamous but it must still be built on good faith and honesty.