Australia`s First Free Trade Agreement

This was only Australia`s second free trade agreement (the first in 2003 with Singapore) and marked a turning point in Australian trade policy. NIEIR, An Assessment of the direct impact of the Australian-United United Free Trade Agreement on Australian Trade, economic activity and the costs of the loss of national sovereignty, prepared for the Australian Manufacturing Workers Union, May 2004, www.aph.gov.au/Senate/committee/freetrade_ctte/submissions/sub463att2.pdf, called 26 November 2008. In conjunction with the existing WTO Agreement on Plant and Health Protection (SPS), two committees are established in this Section to ensure compliance with the provisions of the SPS Agreement. The tax was set until the 1930s as in other industrialized countries, when Canada and the United States reduced their tariffs in a program of trade liberalization. On July 15, both houses of the U.S. Congress strongly supported the free trade agreement. The deal also received support from Democratic Party presidential candidate John Kerry. With respect to current trade flows, the IMF`s assessment has been more reliable, although U.S. imports have not increased by their expected amount and Australian industrial exports have declined. [17] Subject to certain exceptions and the non-participation of certain U.S. states, the agreement required each party to accord treatment no more favourable to the purchase of governments and public authorities than the most favourable treatment accorded to domestic goods, services and suppliers.

The question sometimes arises as to whether Australian companies, particularly small and medium-sized enterprises, use free trade agreements. A report published by PwC on the use of free trade agreements concluded that Australian companies benefit from the tariff advantages of our free trade agreements, including in our agreements with China, Japan and Korea. The report showed that 95% of Australian exports to Japan, which were eligible for lower tariffs under the Japan-Australia Economic Partnership Agreement, used the lowest tariff rate. Free trade agreements have also had a positive impact on business confidence, strategy, expansion planning and international investment. In general, the WTO does not support free trade agreements, as trade benefits and welfare gains are limited to the parties. The most-favoured-nation clause of the WTO agreement requires that any member advantage applied to one member state be applied to all member states (which maintains liberalization processes and benefits.”. . . .

Comments are closed.