After nearly 10 years of negotiations, Australia finally secured its long-awaited free-trade agreement with China. That means Prime Minister Tony Abbott essentially made good on his 12-month deadline for inking a deal with the country’s largest trading partner.

And this latest development builds upon the success of recent free-trade agreements (FTA) the Abbott government signed with Japan and South Korea, the country’s second- and third-largest export destinations, respectively.

While China accounted for 27.4%, or USD141.6 billion, of Australia’s total trade last year, it absorbed 35.2%, or USD91.6 billion, of the country’s total exports. As such, the Australian economy’s prospects for future growth are closely aligned with the Middle Kingdom.

According to Minister for Trade and Investment Andrew Robb, the landmark deal, which was signed on Monday, will remove tariffs on 85% of Australian exports upon entry into force, with that number rising to 93% in four years.

And on full implementation, 95% of Australian exports to China will be tariff free. The trade minister notes that some of these goods are currently subject to tariffs of up to 40%.

Among the big winners are Australia’s resource and agriculture sectors.

The vast majority of Australia’s exports to China consist of crucial commodities such as iron ore and coal, with resource exports totaling more than USD82.3 billion last year. The FTA removes tariffs on all resources and energy products, including iron ore and coking coal.

And in 2013, China bought USD8.7 billion worth of Australian agricultural products. The country’s meat and dairy industries will now enjoy the same access to Chinese markets as New Zealand.

Tariffs on dairy products, which had been as much as 20%, will be phased out over a period of four years to 11 years. And Australia’s beef and sheep farmers will also benefit from the removal of tariffs that previously ranged from 12% to 25%.

While certain sectors will certainly benefit from the deal, the effect on Australia’s overall economy may not be all that significant. The one study produced by economists in support of an FTA back in 2005 concluded that such a deal would lift Australian gross domestic product (GDP) by five-tenths of a percentage point over the course of a decade.

And analysts and fund managers believe that positive effects from the deal on publicly traded companies will only become apparent over the long term, in part because some changes in tariffs are phased in gradually.

Still, the deal will definitely help Australian companies whose goods and services cater to China’s burgeoning middle class. Indeed, over the long term, the FTA gives Australia an opportunity to establish more robust trade in services ranging from healthcare to insurance.

“When you consider that most of our exports to China, so far, are resources based, the non-resources part of exports to China is really quite small and so you’re talking about maybe doubling the services exports over the next five years,” Credit Suisse analyst Damien Boey told The Sydney Morning Herald.

While the Abbott government has had its ups and downs since its ascendance last year, the prime minister has already delivered trade deals that will redound to the benefit of key sectors and the overall economy for the long term.