Potential Advantages For Australia Essay

For many years now, Australia’s trade has continually been evolving and improving. Throughout most of the 1900’s, Britain was Australia’s main trading partner. Trade with Britain was 5 times greater than with

Tariffs exist in many different forms, and have various uses dependent on the economic situation and outlook. They can be specific such as a set tax per item, or ad valoreum, with a percentage tax per unit. (McEachern, 2015, p. 282) This paper will discuss function of each and the positive and negative effects of the use of these various tools.

NAFTA renegotiations, beginning on August 16th 2017, includes digital trading on account of a rise in online sales. Digital Trading is defined as the “scale of consumer products on the internet and the supply of online services” (Lighthizer). The Digital Trading issue arose due to the fact that online sales have increased as well as the block that current tariffs that places online trading between NAFTA countries. This block occurs because a tariff is placed on imported goods. A tariff is basically a tax imposed on goods that are imported into a country, whereas duty-free means import goods are tax free (“tariff” and “duty-free”). The Canadian limit on tax free goods is the lowest in the world while the U.S has the highest (Alini). Furthermore, Mexico has a $50 duty-free threshold, Canada a $20, and the United States a $800 (Gillespie). This means that

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.

In the last few decades, the number of immigrants has increased in Australia. The department of immigration started in 1945 and about 7000,000 immigrants have moved to Australia. The recent data showed that almost 23.9% of Australian residents were born aboard according to Department of Immigration and Citizenship (2008). Nearly 43 percent of residents were born aboard (Australian Bureau of Statistics, 2012). In addition, 2.8% of the world's immigrants lived in Australia, while only 0.3% of the world's population lived in Australia (UNDESA, 2013). Because of the huge number of immigrants’ Australian government set programmes to control the increase, which are integrating immigrants into its society and focusing on skilled migrants. This essay will examine how immigration is an advantage to Australia in terms of the integration program of immigrants in Australian society and the economic benefits for skilled immigrants.

From an academic standpoint, economists overall believe that free trade would benefit the economy more than instituting tariffs and non-tariff trade barriers. However, the reality is quite different. Politically, tariffs help to strike a balance between social welfare and the politicians’ goals. One theory is that campaign contributions are needed for re-election; and to achieve these funds, politicians will weigh this need against welfare-reducing protection for industry lobbyists (Magee, 2011). The models would suggest that the tariffs should actually be much higher than they are due to the low efficiency cost of tariffs compared to the substantial gains provided for the producers (Magee, 2011). However, developed countries actually have very low tariffs. There are six possible explanations for why developed countries have such low tariffs when the political theories behind why we have tariffs at all would suggest they should be higher.

› Independent economic modelling estimates that Australia’s free trade agreements with China, Japan and South Korea alone may create some 7,900 jobs in 2016 and over 14,500 jobs by 2020. › 1 in 5 jobs in the Australian economy involve trade-related activities. 3. Trade makes products cheaper for Australian households and businesses › Real prices for consumer products such as clothing, footwear, motor vehicles, household

With high salaries being offered overseas, highly skilled labour has been drawn from the Australia, as the value of the Australian dollar is low. In recent decades, the Australian Government has been moving Australia into the International market place, with ongoing structural reform taking place. The reforms in include tariff, financial market, tax and labour market reforms, with enhancements of the national competition policy and foreign investment rules. In the early 1980s the Australian tariffs used to be high, with the import duty close to 60 per cent. However, the Motor Industry Development Plan in 1984, led to a reduction in the tariff assistance. Therefore, meaning that the tariff rate on passenger vehicles and parts declined by 2.5 percentage points each year during the year of 1988 until 2000, with another reduction of 5 per cent in 2005. The treasury stated that the prime focus of reforms has been subject to the private sector in Australia for more competition from both domestic and international sources, but to improve the performance of public utilities. Financial traders, such as the car manufacturing industry, rely on low inflation, low interest rates, low current account deficit, high growth, budget surpluses and a small public sector, in order to make

The prices of these would also be lowered, encouraging purchases, therefore increasing profits and income of businesses and workers as a result. More employment opportunities would also be available as the related industries see widespread expansion. Overall, Australia’s economy would see an increase in GDP of between $4.1 to $6.4 billion by 2030 as a result, while the European Union would see an increase of approximately €4.9 billion ($8 billion). The multilateral agreement would also encourage European businesses to target Australian consumers, or even expand into the

Concerning the third case,numerous food and agricultural groups in the U.S were concerned that a free-trade agreement would not include their industry . Moreover, a free trade agreement would reduce/eliminate already low tariffs and synchronize regulations governing industries like pharmaceuticals and auto parts.

According to Free Trade Organization, Dan Ikenson, policy analyst, claims “Few trade policies engender more bitterness and international ill will than the U.S. antidumping law. For many years, that law has been the weapon of choice among domestic producers seeking to quell import competition.”(zeroing, April 27, 2004)

As a source of income, 2. To protect domestic industries since Imported goods will price higher if tariffs exist. For the exporters, these tariffs will as a barrier on their export since the cost of exporting will increase. In other words, the tariffs were repealed under CEPA will bring advantages to Hong Kong. Under the economic theory and economic model, if a country (China) repealed their tariffs, the price of its imported good will decrease and imported quantity will increase, which bring (economic) advantages on the exporter (Hong Kong) since its export will

I think a level of the tariff should be at 6.00%. I realize that imposing this tariff means that Uthania and Alfazia can also impose tariffs on cheese imported from us, but our balance of trade decreases to $4

Nonetheless, the real prices of certain commodities such as lamb, tobacco and beef have increased over time due to increasing world average income, which encourages world demand. Interestingly, developing countries, which form the predominant exporters of primary commodities, earn lower relative prices over time, for instance, palm oil arrives primarily from Indonesia and Malaysia and raw sugar arrives mostly from Brazil and Thailand. Contrariwise, the world suppliers of lamb are the United Kingdom, Spain and Australia and, moreover, 14% of world bovine meat arrives from the United States (Simoes, 2013). Therefore, it can be argued that greater advantages are granted to suppliers in developed countries than those in developing countries by trade liberalisation.

Trade Barriers: High tariffs are still maintained on exported products that compete with domestic industries in China (Office of United States Trade Reprehensive) . China’s tax regulations are into conformance with international standards (Parliament of Australia Senate) . Therefore at present, cut flower exports to China carry a 70 percent import tax, including cost of transport, plus a value-added tax of 17 percent (Richard Tomlinson, 1995) .