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China Australia Investment Agreement

[91] Catherine Hanrahan, `HR, Coders and Manufacturing: Occupations Most Affected by 457 Visa Changes`, ABC News (online), April 20, 2017 , archived in . First, these higher thresholds already apply to Australia`s other trading partners, known as “contract investors” in FIRB policy, including Chile, Japan, Korea, New Zealand and the United States. As a result, Chinese investors have no advantage over their competitors over FIRB accreditation. Because China has well targeted the ChAFTA negotiations, the FIRB review process is the most restrictive element of Australia`s foreign investment system. [51] A FIRB declaration is required for foreign investments that exceed the value thresholds set by the FIRB Directive – usually the value of the Australian target business or, as far as agricultural enterprises are concerned – the value of investments. The FIRB Directive, which for the first time incorporated Australia`s chAFTA obligations, was published in December 2015. The latest FIRB directive, currently in force, was published on 1 July 2017. [52] [37] Luke Nottage, `Compromised Investor-State Arbitration in China-Australia FTA`, East Asia Forum (online), July 1, 2015 , archived at . In order to assess the impact of these rules and material exemptions on Chinese investment in Australia, it should first be noted that they are below Australia`s commitments under its recent free trade agreements with major trading partners. Japan and Korea, for example, are the fourth and eighteenth investors in Australia, respectively. [40] Under both the Korea-Australia Free Trade Agreement (2014) (`KAFTA`) and the Japan-Australia Economic Partnership Agreement (2015) (`JAEPA`), Australia`s investment and investor protection obligations go beyond non-discrimination requirements; to ensure minimum standards of treatment (fair, fair treatment, expropriation and compensation, transfers of investment returns and restrictions on benefit requirements for foreign investors). [41] These additional commitments also existed in Australia`s former free trade agreements with major trading partners such as the United States[42] (Australia`s largest investor) and Singapore[43] (the fifth largest investor in Australia).

ChAFTA`s limited coverage also does not reflect good Chinese practices. For example, the recently concluded free trade agreement between China and Korea[44] (which comes into force at the same time as ChAFTA) and the China-New Zealand Free Trade Agreement[45] (the first free trade agreement with a Chinese-developed economy) cover these additional obligations. [46] An explanation of the limited scope of ChAFTA could be related to the bilateral investment agreement between China and Australia (ILO), which came into force on 11 July 1988 and remains in force. [47] Given that the ILO had already covered most of these obligations (transfer, expropriation and fair and equitable treatment), it may be unnecessary for ChAFTA to reiterate these obligations. This observation is supported by Article 1.2.2 of the ChAFTA, which states that “[d] in this agreement the existing rights and obligations of a contracting party, in accordance with …

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