Submission: Australian Government Review of the China-Australia Free Trade Agreement (ChAFTA)
Australia’s free trade relationship with China is a central pillar of Australia’s trade and investment architecture.
The China–Australia Free Trade Agreement (ChAFTA) has been in force for ten years, during which time economic conditions, industrial priorities and climate risks and opportunities have evolved significantly. To assess how ChAFTA has operated in practice, and whether it remains fit for purpose, the Government is undertaking a General Review of the Agreement.
ASFI has made a submission to the review, focusing on how trade policy settings can better support sustainable investment, emerging green industries and cross-border capital flows between Australia and China.
The submission sets out three core messages:
Environmental goods should be prioritised within ChAFTA, including through consideration of an Environmental Goods List as a practical mechanism to reduce barriers to trade in low-emissions and environmentally beneficial goods, while supporting alignment with regional trade frameworks.
Trade agreements alone are not sufficient to unlock sustainable capital flows, and should be complemented by broader coordination across trade, foreign, development and climate finance policy to support investment in emerging green commodities and supply chains.
Greater alignment of green and transition finance standards is critical to reducing information gaps, lowering perceived investment risk and enabling capital to flow more efficiently across borders, including in hard-to-abate sectors.
Access the full submission below.