China and Australia signed a long-awaited Free Trade Agreement (FTA) on June 17 in Canberra, Australia.
The agreement ensures 85 percent of all Australian exports enter China tariff-free and 95 percent when the deal is in full force.
Australia will eventually reduce tariffs to zero on all goods imported from China.
The FTA also includes opening-up of numerous service sectors, a simplified review procedure for investments, most-favored-nation treatment, favorable market access rules and market transparency.
Chinese commerce minister Gao Hucheng and Australian Minister for Trade and Investment Andrew Robb inked the agreement.
At the ceremony Prime Minister Abbott said the "unprecedented" and "monumental" pact was the "next chapter" in strong relations between the two countries.
"This deal today is history-making for both our countries," he said. "It will change our countries for the better. It will change our region for the better. It will change our world for the better.
He said the "extraordinary" agreement had opened the vast Chinese market to further Australian investment, primary products and services, while facilitating further Chinese investment in Australia.
The landmark signing finalized negotiations that started ten years ago and followed the Declaration of Intent signed in November by Australian Prime Minister Tony Abbott and Chinese President Xi Jinping.
Negotiations on the FTA concluded in November last year.