Free Trade In Australia

Free trade is the unrestricted purchase and sale of goods and services between countries without the imposition of protection such as tariffs and quotas. This enables economies to focus on their core competitive advantage(s), thereby maximizing economic output and fostering income growth for their citizens. Australian exports rose from $66.6 billion in 1990-91 to $300.4 billion in 2012-13, with an average growth in export volumes of 4.6 per cent per annum since 1990-91. This is reflective of Australia’s proactive actions to phase out protection since the 1970s. The major effects of domestic and global free trade and protection policies

Australia is a very culturally diverse country, meaning that it consists of many cultures and ethnicities from around the world. This diversity is mostly due to immigration,

The impact of globalisation has also changed the structure of Australia 's trade. There has been considerable growth in manufacturing and service industries with limited growth in the rural sector (Table 2). This reflects a combination of changes in world demand and domestic structural reforms.

But there are also disadvantages. While Australia’s wool industry and other sections of Australia’s economy would profit from the FTA, there are also losers. The car, clothing and vegetable industry could be destroyed by the Chinese exports, because the Chinese producers can offer their products much cheaper. “But they don’t face the same quality assurance condition and have access to cheap labour.”(the Age,April 20, 2005) China could swamp Australia with below-cost imports. The Australian producers aren’t competitive, so they will loose market shares. Before the negotiations begin, Australia has to recognize China as a market economy. “But the prices for Chinese products appear to be set by authorities instead of markets”(the Age, December 6,2004) and the products are often dumped, so a recognition would undermine Australia’s anti-dumping powers. Chinas rules of law in commerce are still underdeveloped and the economy isn’t fully transparent. If Australia recognises china as a market economy the minister isn’t required to resort surrogacy, where unreliable or no pricing information is available. So there would be Legislative or administrative changes needed to undertake action against predatory priced products dumped on the Australian market. Besides China’s benefits of this deal will be grater than the Australian ones, because China is

Australian-Indonesian relations are the foreign relations between the two countries, whether economically, politically, legally or socially. Australian-Indonesian relations involve an interaction in foreign policies between the two nations (Wolfsohn, 1951, p. 68). As long as Indonesia is Australia 's closest and largest neighbor, they are bound to have great international relations. These relations began as early as the 17th century and had only become enhanced with time (Daly, 2003, p. 397). The relationship has been defined by a conjoint growth trade of up to $14 between the years 2011-2012 which reports an increase from the previous economic year (Mark, 2012, p.402). These countries are members of various trade deals such as the ASEAN Regional Forum in addition to having close ties with education, defense, and leadership. Australia 's relationship with Indonesia is crucial, and lack of such could severely bruise the economy, and hence they need to keep united by ensuring the use of widespread media with beneficial input. Australia interacts with Indonesia in a way such as sporting activity, tourism, education, economic policies, youth exchange programs, cultures and above all their diplomacy (Okamoto, 2010, p.241).

The Australian Government has signed many Fair Trade Agreements with various countries and has joined the World Trade Organisation, who has assisted with the negotiations for these FTAs. The involvement in the WTO has resulted in many actions within Australia to promote fair and equal trading, such as the government giving subsidies to various producers, as well as products being marked with the FairTrade symbol, making it easy for customers to ensure that their products have been ethically

Free Trade Agreements (FTA) are international treaties that reduce barriers to trade and investment. Australia has many Free Trade agreements both multilateral and bilateral which provides Australia with better access to the market, and improved competitive position for Australian exports and reduces import costs for both Australian businesses and consumers. The publication “Trade at a Glance 2015” (Source 1) states that as of 2014, Australia’s Free Trade Agreements have accounted for 67% of their Trade. This demonstrates how trade agreements not only allows for Australia to earn money and support its economy, but to support its small businesses and companies. Using trade agreements to connect with other countries allows for easy access to

As a founding member of the World Trade Organization (WTO), Australia has always endeavored to further the cause of free and fair global trade. This goal is aligned with the fundamental principles that are embodied by the WTO such as non-discrimination between trade partners and open markets with lower trade barriers. Increasingly, however, the relevance of this organization is being called into question. A resurgence in the use trade restrictive measures, and the recent proliferation of Preferential Trade Agreements (PTAs)

Free trade doesn’t only have positive impacts, it also has negative impacts. All countries are different, they can be similar. For New-Zealand, the positive are relationship stronger. That the trade between Australia and Nez-Zealand develops under fair competition conditions. It will allow Australia and New-Zealand’s barriers trade to be eliminated. In Australia, the eliminated tariffs caused the beef exports to decrease by 28% in 2014-15, which increases the cost of beef for consumers in China. The positive impacts on Japan with the free trade agreement is that there is a better access on the legal communications.

The Australia–Japan partnership is one of Australia‘s strongest and most mature international trade relationships. The success and strength of the partnership can be attributed to the commonly held values of both countries, including a commitment to democracy, human rights and the rule of law, along with similar approaches to international security. Japan forms Australia's second-largest export market and third-largest source of foreign investment. Australia is a critical supplier to Japan of clean and safe food products as well as minerals and energy.

Australia is more dependent on export to china which will also having a trouble in terms of decline in chines economy.

The objectives of the paper are to introduce the China-Australia FTA (ChAFTA), signed by Chinese Commerce Minister Gao Huchengand Australian Trade and Investment Minister Andrew Robb, and describes benefits of the agreement for both sides. The ChAFTA has brought zero-tariff concessions for two countries. Especially in the mining industry and agriculture it has convenient policies, and Chinese people go to Australia also received employment policy support. In addition, this paper will also discuss the opportunities and challenges to China under the agreement. While benefit from the ChAFTA, China also faces problems in a passive position in the trading. China and Australia need to seek common ground and mutual understanding of each other 's interest demands, in order to smooth development, make the ChAFTA benefit more people and play a greater role in the future.

Australia has also stated that they would be interested in creating trade deals with the United Kingdom. In fact they stated that they would be interested in creating a free trade agreement with the United Kingdom post Brexit. Although they also stated that first they will look into free trade deals with the European Union as well. The United Kingdom and Australia already have a close relationship and will likely establish trade deals post Brexit.

As many nations of the world move towards economic protectionism, Australia may need to change its trade policies.

The World Trade Organisation (WTO) exists to implement trade rules amongst the nations (Robbins & Coulter, 2009). Agreements are negotiated by member nations in ‘rounds’ – one being the gathering in Doha which commenced in 2001. Subjects discussed included eliminating agricultural export subsidies, reducing export barriers to developing countries, facilitating trade, combatting ‘dumping’ practices along with other topics (WTO, 2016). Negotiations were abandoned at the end of 2015 after having failed to reach agreement on many topics, risking rendering the WTO irrelevant (Donnan, 2015).