A Free Trade Agreement ( Fta ) After The G20 Summit

Since Australia’s first free trade agreement (FTA) with New Zealand in 1983, Bilateral and Multilateral FTA’s have been a great advantage and focus in securing economic prosperity for Australia. Australia’s two-way trade in goods and services was A$616 bn in 2012. Australia has seven FTAs currently in force with New Zealand, Singapore, Thailand, US, Chile, ASEAN (with New Zealand) and Malaysia. Together, these countries account for 28% of Australia’s total trade, which displays the great benefit of bilateral FTAs to the Australian economy. Additionally, there are four bilateral FTA negotiations currently in place, two of which are substantial trading partners; China, being Australia’s largest export market (A$78.7 bn) and Japan, being Australia’s second largest export market (A$49.8 bn). The Japanese Free Trade Agreement has been negotiated, and will be a great benefit to the Australian economy, especially the agricultural sector, for example tariffs on beef

The Buying and selling, importing and exporting of goods and services, between two or more countries that have no limits or quotas or barriers or unbalanced tariffs is the dictionary definition for a free trade agreement (FTA). There are both advantages and disadvantages attached to FTA’s which is shown in figure 8.0.

The Asia-Pacific Economic Cooperation was founded in 1989 with the aim to manage the growing interconnection and trade between the 21 members and to improve the economic and political links. The APEC is assisting to reduce the costs of importing and exporting goods between the Asia-Pacific countries. The members of the APEC include Australia, Brunei Darussalam, Canada, Chile, China, Hong Kong-China, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei, Thailand, United States, and Vietnam. Together these nations improve the trade between the Asia-Pacific. China still remains Australia’s biggest trading partner. Since Australia’s trade links with the Asia-Pacific have grown, trade accounts for over 42% of the GDP (compared to only 32% in 1990 when relations with the Asia-Pacific were not as strong). Australian trade policies and agreements are focussed primarily on the Asia-Pacific region as eight of the largest export markets are found there. Australia has realised that the Asia-Pacific region is the most important area for trade as geographically it is close and it holds manufactured goods that Australia needs. Members of the APEC now hold over 70% of Australia’s total exporting and importing of goods and services. The rise of China’s influence on the world due to such advances in technology has influenced Australia to trade more with countries around the Asia-Pacific. Australia’s continued trading with the Asia-Pacific has helped to push Australia’s economic

The FTA would also improve productivity and availability of resources. This would push Australia in to being close to the leading economies of the world in the long-term view.

Last year Australia imported $287.8 billion in goods from China, up from $51.5 billion a decade ago, according to the Australian Commerce Department (Asia Education, The University of Melbourne 2005). Although Australia is importing its many goods from china and reducing the cost, Australia also have to consider the unemployment rate and safety issues with these imported goods from Asia.

This essay analyses the Australian-China bilateral relationship since 1945 and in particular its political significance to Australia. Many global factors have influenced this relationship, including the advent of the Cold War, the Korean War, the Vietnam War and the collapse of the Soviet bloc European nations. In addition, internal political changes in Australia and China have both affected and been affected by the global changes. It will be analysed that Australia’s bilateral relationship with China has always had a sharp political edge but that approaching the new millenium economics and trade considerations are shaping Australias and for that matter Chinese politics.

Since 1993, China has experienced uninterrupted trade supplies and in 2013, China has overtaken the US as the world’s largest trading nation. As an economy highly integrated into the global trade system, the country benefited from a steady improvement in its term of trade since 2000. The country has multiple bilateral and multilateral trade agreements that opened new markets for its product. A Free Trade Agreement (FTA) between China and ASEAN nations which came into effect in the beginning of 2010, created the world’s third largest free trade area in terms of nominal GDP. China established FTA with nations like Korea, Peru, Pakistan, Singapore and etc.

The structure of those in charge of oversight for the FTA is the United States-Israel Bilateral Joint Committee. This group is tasked with providing structure for discussing the enhancement of trade and issues of mutual concern and is headed by the United States Trade Representative and the Foreign Trade Administration of Israel’s Ministry of Industry, Trade, and Labor. This group meets annually and operates on a broad mandate that has allowed trade to be further liberalized in agricultural products and establish cooperation on standardization. A meeting of the group in December of 2009 demonstrates the committee’s method of operation as they met to exchange views on issues and concerns related to agricultural market access and

Asia Pacific Economic Cooperation (APEC) is the pre-eminent economic rally in Australia’s region. APEC’s goal is to drive an extensive trade and investment liberalisation and facilitation agenda. It is focused on structural reform as a means of raising competitiveness and the efficiency of trade and investment flows. It has helped Australia with building and strengthening ties with other countries such as Brunei, Singapore, Philippines and other countries in the region. In 2009, 70% of Australia’s trade is with APEC countries.

of markets, including the auto industry, and in the spotlight, the dairy and beef markets.

The development in the progress of China, India and Indonesia benefits Australia and contributes significantly to regional stability which extends opportunities for a successful and reciprocating business partnership instead of being aid dependent. Australia’s economical national interest is directly linked to the success, stability and peaceful interactions of its neighbours because these countries are also the first line of defence against many negative issues which could affect Australia (Department of Foreign Affairs and Trade 2016c). If these states remain to be wealthy and stable, they will respond better to efficiently to threats and complications in trade. In order to benefit from the trading relationships with the neighbouring countries, Australia needs to take advantage of the international economic opportunities and ensure we are focused on advancing in global economic, financial, investment and trade institutions. A globally integrated economy is crucial due to the growth which can be gained from an open trading system and foreign direct investment which secures our position in the economically advancing countries of the world and our own financial welfare (Wong 2017).

Australia’s main trading partners are China, Japan, the United States, Republic of Korea and Singapore. Nearly half of Australia’s trade activity in terms of imports and exports are with these 5 countries alone. Particularly with the recent growth of the Chinese economy, Australia’s chief trading partner, the country has seen growth in its exports. However very recently the growth of the Chinese economy has been slowing which is a risk to Australian exports.

In 1994, the leaders of the thirty-four democratic countries of the Western Hemisphere launched the process of creating a Free Trade Area of the Americas (FTAA). The FTAA will be established by 2010 with the aim of gradually eradicating barriers to trade and investment in the region. The final characteristics of the FTAA will be determined through negotiations by government officials from the thirty-four participating countries. The trade issues that are presently under discussion are: market access; investment; services; government procurement; dispute settlement; agriculture; intellectual property; antidumping, subsidies and countervailing duties; and competition policy. Guiding principles for these negotiations

Preferential Trade Area (PTA) is when countries in the same geographical region agree to eliminate or reduce tariff barriers on certain goods. Similar to PTA, the Free Trade area is when two or more countries agree to eliminate or reduce barriers to trade and freely import and export goods between each other. Members of a trade bloc who remove trade barriers internally, while imposing a uniform tariff on non-member countries is an example of a Customs Union. Members of a Customs Union will come together and negotiate tariff regulations with countries outside their bloc. One of the most comprehensive trade blocs is the Common Market. A Common Market is a major step towards economic integration. In a Common Market, bloc member countries are able to trade all economic resources without restraint. While other types of trade blocs primarily free up the trading of goods and services, the Common Market frees the flow of capital and labor between member nations. Also in the Common Market bloc tariffs and non-tariff barriers are removed, increasing free trade activity. Nations that belong to a Common Market must have

Prior to signing an FTA with China, Chile already had an extensive network of FTAs, by seeking an FTA with Chile; China was able to gain access within Chile’s network in order to avoid trade discrimination in the Americas.