I'm a little confused by this aspect of the China - Australia FTA, still under negotiation:
AUSTRALIA'S biggest-ever bilateral trade deal is set to grow much bigger, with China agreeing to a special ratchet clause that will ensure that future benefits conferred to other countries will flow automatically to Australia.
The much-coveted "most favoured nation" (MFN) provisions in the China-Australia free trade agreement (ChAFTA) have been kept under wraps at the request of Chinese negotiators, who were pursuing a parallel deal with South Korea.
Trade Minister Andrew Robb confirmed the MFN provisions in an interview with Fairfax Media.
"This is huge, I think," said Mr Robb. "It means that we will automatically receive the same treatment provided by China to any other country in the future including the EU and the United States."
...
Mr Robb told Fairfax Media that the MFN provisions will apply to investment and services chapters.
He said a separate review mechanism has been built into the 'goods' provisions, which will apply three years after the agreement enters into force and then every five years thereafter.
"On most fronts, if not all, those will be protected, locked in, in the future when China make concessions with other countries," said Mr Robb.
Is anyone following this, and can explain what is going on? I can sort of imagine some of it, but other parts confuse me. For example, what is the review mechanism in the goods agreement?
Do other FTAs have something similar to all of this?
