Australia Pushes China for FTA
When Australia's Prime Minister John Howard visits China
next week, he will ask for afree-trade agreement with
his hosts, which are now Australia's third largest trading
partner.
The trip will mark the first meeting between Howard and
the new Chinese leadership, President Hu Jintao and Premier
Wen Jiabao since they came to power in March.
Two way trade between China and Australia now totals
A$21.2 billion. Australia's exports are now mostly iron
ore, wool and crude petroleum. China is the third largest
source of imports, which include computers, toys and textiles.
John Howard, who has been in power since 1996, is anxious
to close a deal with Guangdong province worth A$25 billion
to supply 3.3 million tons annually of liquefied natural
gas (LNG) over 25 years. If it happens, this would be
the largest single export deal for Australia.
The Australian Bureau of Agricultural and Resource Economics
says that there are bright prospects for LNG on China's
east coast, with four provinces expected to import 11-14
million tons every year by 2015.
Howard is expected to also discuss China's role in defusing
the North Korea nuclear crisis.
Although China and Australia found themselves taking
opposing views on Operation Iraqi Freedom, the US-led
invasion of Iraq and overthrow of Saddam Hussein, the
two sides have not allowed political differences to get
in the way of growing economic and cultural ties.
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