MR# 1426 18 November 2014 Law Council welcomes the China – Australia Free Trade Agreement The Law Council of Australia welcomes the China – Australia Free Trade Agreement (ChAFTA) saying it heralds a new era in the relationship between the Australian and Chinese legal professions. Law Council of Australia President, Mr Michael Colbran QC, said the liberalisation of legal services in China has been a key priority for the Law Council under its International Strategy. “The ChAFTA includes strong outcomes on legal services and improved opportunities for Australian lawyers through increased bilateral trade and investment. “The ChAFTA secures the strongest commitments made by China on legal services under an FTA,” Mr Colbran said. The ChAFTA will permit commercial associations between Australian and Chinese law firms in the Shanghai Free Trade Zone (SFTZ) – an outcome which the Law Council has sought since 2008. “An Australian law firm operating in the SFTZ will be permitted to enter into a commercial association with a Chinese law firm and offer Chinese, Australian and international legal services. “There will be no restrictions on clients, meaning that the new entity will be able to provide legal services to clients from anywhere in China,” Mr Colbran said. The Law Council has long sought improvements to rules affecting the transfer of employees between offices in China and Australia. “Under the ChAFTA a mechanism will provide for the Law Council of Australia and the All China Lawyers’ Association (ACLA) to develop recommendations on secondment arrangements between Australian and Chinese law firms. “The Law Council has enjoyed a strong relationship with ACLA for over 20 years, reinforced by the Memorandum of Understanding reached between the two bodies in 1998,” Mr Colbran said. In addition to specific outcomes on legal services, the ChAFTA goes beyond China’s existing commitments to Australia under the World Trade Organization, providing higher levels of market access. “The reduction of barriers to trade will create a range of opportunities for Australian businesses in China which will mean new opportunities for Australian lawyers through additional advisory work. “The Law Council looks forward to reviewing the final text of the ChAFTA when it is released and to continuing to work with ACLA to promote mutually beneficial opportunities for the Australian and Chinese legal profession,” Mr Colbran concluded. Vanessa Kleinschmidt, Director, Government and Corporate Affairs P. 02 6246 3716 // M. 0408 014 110 E. [email protected] // www.lawcouncil.asn.au