Australia and China have been negotiating a Free Trade Agreement (FTA) for over nine years and are looking close to an agreement by the year’s end. However, the countries need to face-up to resolving the sensitive issues of visas and land purchase rights in order to realise the hope of having a deal in place by the end of the year.

China is particularly keen on Australia’s agricultural sector but remains concerned that labour entry requirements and land purchase rights are too rigid, according to a report by the ABC.

“I think the Australian side can actively examine the existing labour admission system and visa approval procedures and take some necessary reforms. There is no doubt that appropriate adjustment of the admission policy of foreign labour, necessary reform of overseas workers visa approval system, and allowing foreign investors to have more autonomy and to bring some overseas workers will help to introduce more investment especially from China,” Mr Li Mr Li told a conference on food and agriculture organised by the Australia China Business Council.

According to the ABC report, many Australian farmers and the government want foreign investment in agriculture. It says a report commissioned by ANZ Bank last year estimates the sector needs an extra 600 billion dollars by 2050 to bring it up to speed to take advantage of the opportunities

Chinese investors are thought to hold 1 per cent or less of Australian farmland. It's the area that might prove the most difficult for Australians to feel comfortable with.

David Sackett, Managing Director of the investment and management company Growth Farms, wants a level headed debate.

“I think it's going to be a very emotive debate as we go into this free trade agreement process, then I would ask the question, not so much should people own land here, but what do we need for a viable, dynamic, successful ag-sector and capital is a key issue. I think the second question is where does that capital come from? So why don't we move the debate up to talking about the need for capital and the benefits of capital into agriculture and agribusiness and then worry secondarily about where it comes from,” said Mr Sackett.

Australia's Agriculture Minister and National Party deputy leader, Barnaby Joyce says agricultural land is a sensitive issue for all nations. He said, “Before it goes to review and the reviews that are generally approved, it's 15 million dollars for agricultural land, 53 for agribusiness and one dollar for state-owned enterprises and that is, in fact, the most liberal form of investment in the whole of our South East Asian region. Other nations are vastly more prescriptive than that.

Australia was the first developed economy China engaged in free trade talks. But has yet to reach an agreement whilst China has gone on to sign bilateral deals with New Zealand and others.