A Free Trade Agreement between Australia and China

The main aim of this thesis is to give a general overview of the bilateral, economic and foreign relationship between Australia and China by reflecting their positions in the international environment. In this case study a great emphasis is put on the prospective Free Trade Agreement between Australia and China and the impact such an agreement could have. In support of the examination of this thesis, articles, books and the internet were used when analyzing the prospective FTA. To expand the scope of the study A.T. Kearny Globalization Index 2007 was used to measure how globalized Australia and China are. After an examination of the economic background of the countries and their international context it became clear that the prospective FTA will benefit both countries. Apparently a comprehensive bilateral FTA will also deliver benefits faster to the parties involved, and beyond what can be achieved through the WTO; therefore both research questions were answered in an affirmative way. All aspects of the case study reached consensus to the effect that the prospective FTA would be the most beneficial step for Australia and China in their FTA speculations. It can be stated with a reasonable degree of certainty that such an agreement would strengthen and develop the diplomatic and economic relations between Australia and China