How Many Free Trade Agreements Are There In Australia

Australia`s $13.6 billion trade deficit with the United States in 2007 is Australia`s largest trade deficit with each trading partner. As the trade deficit increased, two-way trade with the United States fell to a record high of 9.5% of total trade. Five years ago, the U.S. share of Australian trade was 14%. It is not clear whether the growing trade deficit with the United States and the decline in industrial exports to the United States are due to the AUSFTA or the delayed effect of the strong Australian dollar from early 2004 or a combination of the two factors. Australia has long been in favour of “non-discriminatory” trade liberalization. Over the years, Australia has committed to removing trade barriers and supported multilateral efforts by organizations such as the World Trade Organization. Free trade agreements (FAs) offer a competitive advantage to Australian businesses. By removing and removing certain barriers to international trade and investment, free trade agreements benefit Australian exporters, importers, producers and investors. Bilateral free trade agreements differ from multilateral agreements in that free trade agreements often have non-trade considerations. Studies indicate that free trade agreements offer little trade liberalization and a transition to a more liberal trade policy, particularly in the area of agricultural trade. On the contrary, free trade agreements are more often used to promote other non-economic, diplomatic and regional interests.

[2] On the other hand, proponents of the debate argue that free trade agreements complement and compete with the multilateral system and that they are essential if Australia is to continue to enjoy favourable market access for its exports. It is also argued that free trade agreements offer a more pragmatic approach to facilitating trade. The reason is that the small number of countries involved facilitates the obtaining of an agreement, and the agreement has a better chance of obtaining better quality with wider attention. Free trade agreements, it is said, are more than economic documents – they are an instrument of economic diplomacy. There is broad agreement within Australia that international trade is essential to the country`s long-term prosperity. However, there are differing views on how best to facilitate trade, i.e. whether it should be multilateral or through preferential trade agreements. The government has announced its intention to put trade and investment at the heart of its economic agenda.