Free trade agreement signed between Australia and China; the latter seems to benefit the most

On Wednesday Australia and China signed a free trade agreement in Canberra.

"This agreement will give our nations unprecedented access to each other's markets," commented Australia's Prime Minister Tony Abbott, adding that it would also be positive for the wider Asia-Pacific region.

After it comes in effect, the agreement will reduce red tape for Chinese businesses investing in Australia and abolish 95 percent of tariffs for Australian exports to China.

Australia's economy is currently experiencing hard times, as it has been hurt by a Chinese slowdown and a drop in demand for natural resources. Australia's biggest trading partner is China, with the two-way flow currently exceeding $123 billion.

Charges of up to 40 percent are currently levied on goods from Australia, says Deutsche Welle. However, the agreement will annul this, meaning energy products and virtually all resources can now flow freely.

Australian agricultural products, ranging from wine to dairy products, will have duties lifted too.

Chinese companies will be at advantage from concessions on foreign investment.

A tariff on Chinese electronics and white goods, which is now 5%, will also be cut.

Analysts caution that the pact will allow Chinese firms to import cheaper workers from China to work in Australia.

Allen Hicks from the Electrical Trades Union commented that:

"Any claimed benefits from this FTA will pale into insignificance compared to the lost opportunities for working Australians and the impact that will have on our society."

In recent years, Australia has already signed similar agreements with Japan and South Korea. Meanwhile, China plans a regional free trade area of the Asia-Pacific in the near future.