Current Economic Issues- Individual Assignment

2438 WordsJun 11, 201210 Pages
Current Economic Issues (Individual exercise) (16 May 2012) By: To: Contents Introduction: 3 Part 1 3 Economic partnerships 3 How does this agreement increase value and earnings for NZ? 5 What are the non-trade? 6 Part 2 7 What is one specific NZ business sector from the proposed agreement? 7 What are the advantages or disadvantages to this business? 7 Modifications to the proposed agreement to augment possible advantages? 8 Conclusion 9 References 9 Introduction: This report will show how economic…show more content…
In 1983, NZ signed a free trade agreement with Australia called Closer Economic Relations (CER). At the time, it is the “most comprehensive bilateral FTA in the world“(MFAT). From this beginning, NZ set the benchmark and these agreements have become milestones, notably in 2005(effective 2006), the Trans-Pacific Strategic Partnership Agreement (P4) between Brunei, Chile, Singapore, and NZ. NZ and Singapore had bilateral agreements in NZSCER, and an RTA with ASEAN, Australia, and NZ called AANZFTA. This was new ground that symbolised the ability to start an agreement and allow inclusion of others through an accession clause (Elms 2012,April). Article 1.1.3 of the agreement, the main objective was creating a model that would attract other members from the Asia Pacific region and liberalise these economies (Main Document 2006). A free trade agreement is a strategic economic partnership. They are popular because you can build global relationships, understanding, and facilitate a bilateral agreement easier than a multilateral agreement e.g. the time taken to complete the DOHA round.(Shakur 2011,Oct) FTA’s improve access into other overseas markets; create rules for a more secure partnership. It is essential to ensure exporters competiveness that creates a level playing field among producers. Two reasons open markets in goods are important there is relatively limited trade and broad liberalization where members are linked by
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