China and Australia have signed a declaration of intent on a landmark free trade deal after about a decade of negotiations.
Australian Prime Minister Tony Abbot and visiting Chinese President Xi Jinping witnessed the signing ceremony Monday at parliament in the capital, Canberra.
Under the pact, China is expected to open up markets to Australian farm exporters and the services sector, while easing restrictions on Chinese investment in Australia. All tariffs on Australian resources will be scrapped, along with duties on beef and sheep exports. The trade deal will also make it easier for Australian banks, insurance companies and universities to do business in China.
Prior to the signing, President Xi told the Australian parliament that his goal is to double China's national income by 2020 and create a modern socialist country. He said Beijing is dedicated to upholding peace. He received a standing ovation at the end of his address.
Critics of the free trade agreement believe it could raise food prices for Australian consumers.