New Aus PM to Ink Trade Pact with China in 12 mos

Newly-minted Australian Prime Minister Tony Abbott has pledged to complete trade talks with China - which date back to 2005 - in the next 12 months. The two sides have already held 19 rounds since the negotiations began.

Neighbouring New Zealand already has its own agricultural trade deal with China, which the Australian leader credits as added incentive to bring Canberra’s talks with Beijing to a rapid close. “They managed to go from start to finish much more quickly than we have been able to manage over the last few years of the former government,” Abbott told reporters.

The Australian Prime Minister took office just last month, after his party won a landslide election victory again Labor, which had been in power for the previous six years. Improved trade ties with China had also been a stated government priority under the tenures of both of Abbott’s predecessors, Kevin Rudd and Julia Gillard.

Despite the push to finalise a deal, trade observers note that major hurdles - such as disagreement on how to deal with investments from state-owned enterprises, or agricultural market access - remain, and could slow down the process.

Abbott is set to visit China next year, by invitation from Chinese President Xi Jinping. However, the Australian Prime Minister has conceded that it is unlikely the trade pact could be finalised before the trip.