Sunday, April 13, 2014

China and Australia to Hasten FTA (Free Trade) negotiation. Wants an agreement quickly. Sydney to be an Official Yuan trading exchange.



China and Australia have been in FTA (Free Trade Agreement) negotiations since 2005.  Now China  and Australia are rushing and get an agreement set between them.  

China has signed FTA agreements with 31 countries so far.  There are 18 trade zones.  They have been expanding the use of Yuan with those agreements.  The U.S. dollar used to be the currency traded between every country for all goods.  That is why the U.S. dollar had always been in demand and accepted everywhere.

Portion from the signed agreements link above:

Among the current batch of agreementsChina has signed 12 free trade agreements (FTA)with countries and regions including the ASEANSingaporePakistanNew Zealandand Chilea Closer Economic Partnership Arrangement (CEPAbetween the Mainland and Hong Kongand an Economic Cooperation Framework Agreement (ECFAbetween the Mainland and TaiwanWith the exception of the FTAs between China and Iceland and China and Switzerlandwhich have not yet become effectivethe other ten FTAs have been implemented.

To understand what China has been doing since 2008, here is an article from 2009 how China began expanding the accepting of Yuan in trade and agreements they made.  Since then China has set up Yuan exchanges and has been trading without the U.S. dollar involved.    I have written about China's agreements with Brazil and all the other BRICS and the dropping of the U.S. dollar between them.   Last Year BRICS formed an emergency currency exchange between them.   Last year, they did a cross border loan exchange before the RMB became international.   In 2012, BRICS signed a local currency exchange agreement. 

China has been discussing with Australia a FTA but has never gotten anything worked out between them.  But now both are wanting to rush an agreement between them.  Why is that?  What do they know that we don't?

I believe it comes to what is happening with Russia and Ukraine.   I believe China and Australia knows the U.S. dollar is going to be imploding soon when Russia completely drops it in trading.  After Russia drops the dollar, those countries that were too fearful of the wrath of the U.S. (they saw what happened to Iraq, Libya, tried on Syria) from an invasion and destruction of the country, if one dared dropped the dollar.  We will see many countries trading with Russia, including Europe (if they want gas) through Gold, Ruble or maybe even the Yuan for goods/energy.

From link:  Notice almost every sentence has something about 'rushing, hurried, as soon as possible'.


China and Australia on Saturday voiced hope to hasten negotiations on a Free Trade Agreement (FTA) and strike a deal as soon as possible.


"It is a common aspiration of businessmen from both countries and also an important consensus reached by leaders of the two countries to speed up the FTA negotiations," Wang said.

Wang called on both governments to meet halfway and show flexibility in the FTA negotiations to make tangible progress at an early date.

For his part, Abbott said development of economic and trade relations between Australia and China had moved rapidly in recent years and he expected an FTA deal at the earliest possible opportunity.


Right there... the words being used says a LOT!  The article does not mention a currency that would be used.  But all you have to do is read this article out on April 11 2014 about Sydney becoming an official offshore trading exchanged for the Yuan.

Portion from above article:

CANBERRA, April 11 (Xinhua) -- Australia and China have agreed to enhance offshore market development of the Renminbi (RMB) and the central banks of both countries are working together on potential future clearing and settlement arrangements in Sydney, Treasurer Joe Hockey said in a press release on Friday.
Once the arrangements are finalised, it will place Sydney alongside Hong Kong, Singapore and Taiwan as an official trading hub for the yuan, the Australian Financial Review reported.
"Australia is at the forefront of countries working with China to support international use of the RMB," Hockey said, " Australian banks and their Chinese counterparts have worked hard to promote direct trading of the two currencies."
Monthly trading volumes have increased more than seven-fold in the past year to 2.4 billion U.S. dollars from 324 million U.S. dollars equivalent before direct trading.
Last April during then Prime Minister Julie Gillard's visit to China, both countries announced a direct exchange between the Aussie dollar and the Renminbi.The Australian dollar has become the fourth most traded currency on China's Foreign Exchange Trading System and "there is significant potential for this market to grow", said the treasurer.


With all of this information above. Those who are paying attention know something is happening with the U.S. dollar and it is not good. The rush to get an FTA agreement between Australia and China, with China, Australia opening up an international currency exchange in Sydney proves the writing is on the wall for the U.S. dollar.

The only questions left are: How much longer does the dollar have? How soon will Russia, China, Middle East, and Australia drop the dollar completely for trade between them?




1 comment:

  1. The sooner my government closes this deal the better, then they can kick the fucking yanks out of Darwin and let Obama's Pacific Pivot sink!

    ReplyDelete