China and Australia have signed a Free Trade Agreement (CHAFTA) this week which mainly aims to increase market access to China for Australian resources, beef and wine exporters as well as services providers while boosting access of Chinese carmakers and electronics producers to the Australian market.

Prime minister, Tony Abbott told the media that the agreement would give each nation unprecedented access to each other’s markets: “It means duty-free entry for 99.9% of our resources, energy and manufacturing exports within four years...Australian services providers, financial, education, health and aged care will have new access to China’s services sector…Australian consumers will pay less for cars, for clothes, for electronics and other goods imported from China,” said Mr Abbot.

The CHAFTA is also set to allow more Chinese workers including tradespeople to work in Australia on temporary skilled migration visas.

According to an ABC report, in the fine print of the agreement the entry and temporary stay for up to four years with the possibility of staying longer will be granted to "contractual service suppliers" from China.

The agreement defines such suppliers as a Chinese person "who has trade, technical or professional skills and experience and who is assessed as having the necessary qualifications, skills and work experience accepted as meeting Australia's standards".

The person would be an employee of a local company or a Chinese firm that has a service contract in Australia.

Under the agreement, up to 1,800 people per year, working as either Chinese chefs, Wushu martial arts coaches, Mandarin language tutors or Chinese medicine practitioners, would be allowed to enter Australia as contractual service suppliers.

The agreement also allows Chinese machinery installers and equipment servicers to work in Australia for up to three months.

Additionally, Chinese companies involved in infrastructure projects worth $150 million or more will be able to bring in Chinese workers under an Investment Facilitation Arrangement. The project will need to be approved by the Australian Government and will have to be in food and agribusiness, resources and energy, transport, telecommunications, power supply and generation, environment or tourism.

The Chinese workers will however have to meet English language standards, have appropriate qualifications and experience and be sponsored by the Australian Immigration Department.

Chinese companies will not need to advertise project jobs locally before recruiting workers from overseas similar to Enterprise Migration Agreements. Those agreements were introduced under Labor on projects worth $2 billion or more.

Plans for a new pilot ‘10-year visitor visa' for Chinese travellers, were also announced extending the recently announced three year arrangement.

The initiative will, it is hoped, boost repeat visits from Chinese travellers. China is Australia’s top tourist source market and it is estimated that by 2020, more than 200 million Chinese people will be travelling to global destinations including Australia.

The ChAFTA also includes 'Work and Holiday' visas for Chinese citizens, with up to 5,000 available annually.

Minister for Trade and Investment Andrew Robb said the total agreement secures better market access for Australia to the world’s second largest economy, improves Australia's competitive position in a rapidly growing market, promotes increased two-way investment and reduces import costs. It is a win for households and businesses alike, he said.

The Agreement requires a review by the Australian Parliament’s Joint Standing Committee on Treaties, and the Senate Foreign Affairs, Defence and Trade References Committee as well as Chinese authorities. Both countries are working to complete these steps and bring the Agreement into force as soon as possible.

The full text of the Agreement is available on line at: dfat.gov.au/chafta, along with materials to assist in understanding the Agreement.