LAWYERS WELCOME FREE TRADE TALKS BETWEEN CHINA AND AUSTRALIA
July 09, 2008 | BY
clpstaff &clp articles &China and Australia will hold a new round of free trade talks in Beijing in the next few days, making it the eleventh round of talks on free trade agreement…
China and Australia will hold a new round of free trade talks in Beijing in the next few days, making it the eleventh round of talks on free trade agreement (FTA) since 2004.
Lawyers welcome this news as the FTA can not only liberalize trade between the two countries but can also encourage more Australian firms to open branches in China.
“For a law firm that wants to have greater opportunities in China, [the FTA] can relax the requirements of hiring Chinese staff and allow foreign firms to have further association with the local firms in China,” said Iain Sandford, deputy director of the international trade group at Minter Ellison.
But the FTA negotiation is still in the early stages, and the talks held last year resulted in little progress. The pace was then quickened only after the China visit of Australian Prime Minister Kevin Rudd in April.
“There's still a lot of work to be done,” Sandford said. “Many stake holders in Australia demand an agreement with higher quality.”
China is Australia's largest trading partner, and last year, the trade volume between the two countries reached US$43.8 billion, according to China's Ministry of Commerce. Sectors such as food, education, manufacturing, financial services, and minerals are the most popular trading areas between the two countries; Australian enterprises are particularly interested in exploring resources in China. Once the agreement is signed, Sandford expects to see greater demands from clients and more business activity in these sectors.
Cultural and language differences could be one challenge for foreign lawyers as it is important for lawyers to communicate with their clients, Sandford said. Cross broader work is helpful as cooperation between two countries' lawyers can lead to more interaction, allowing them to learn from each other's practices and cultures.
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