2. Australia in a globalized world
With globalization, the world has become increasingly smaller when it comes to trade. Goods and trade can flow easier between different countries because of Free Trade agreements (FTAs). This means that international policies like multilateral, bilateral and regional free trade agreements are becoming more increasingly vital for countries. Multilateral trade agreement have traditionally been the most dominant approach with the World Trade Organization (WTO) who currently have 159 members. However, with so many members it also has a negative impact because of the difficulty of creating consensus agreement for example the disagreement on the agriculture which means that the Doha round is currently in…show more content… In addition, Great Britain became a member of the then European Economic Community (EEC) now the European Union (EU) and therefore moved away from trade in the British Commonwealth. The principle of the Closer Economic Relations agreement (CER) was therefore, agreed upon in with the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZERTA), also known as the Closer Economic Relations (CER) came into effect in 1983. In 1988, the two countries agreed to implement free trade in goods from 1990, with ongoing discussions for increased harmonization of competition policy, banking and accountancy regulations, as well as mutual links in migration, tourism, transport, and the relaxing of export subsidies between the countries. Points of friction remain on issues such as Australia 's strict quarantine laws According to the Australian High Commission website, the bilateral trade agreement amounts to AUD16 billion and New Zealand is now Australia’s fifth largest trading partner (CER, ND, NP).
With Bilateral FTAs, the two parties typical swap trade franchises as well as addressing trade related measurements such as investments and biosecurity. Since the bilateral FTA only involves trade between two parties, the negotiation can be conducted more easily than in the case of the multilateral FTAs. However, although it on paper seems to be a quick and easy way of conducting trade, it can also be seen as not really promoting