Australia Bilateral Free Trade Agreements: Boosting the Country`s Economic Growth
The Australian government has been actively pursuing bilateral free trade agreements (FTAs) with various countries to promote economic growth and strengthen its trade relations. As of 2021, Australia has signed 14 bilateral FTAs with 18 countries, including China, Japan, South Korea, and the United States.
These agreements aim to remove trade barriers, such as tariffs and quotas, that prevent businesses from freely trading goods and services between countries. By eliminating these barriers, Australian businesses can access new markets and increase their competitiveness, which can lead to job creation and more significant economic growth.
The benefits of bilateral FTAs for Australia are clear. For example, the FTA with China, signed in 2015, provided Australian exporters with better access to the Chinese market, reducing tariffs on various goods such as beef, dairy, and wine. This resulted in a significant increase in Australian exports to China, which reached $160 billion in 2020.
Similarly, the FTA with Japan, signed in 2014, helped Australian businesses to trade more freely with Japan by providing benefits like lower tariffs on agricultural products and energy. This helped to increase Australian exports to Japan by 28% in 2019, representing $51 billion worth of goods.
Australia`s FTA with South Korea, signed in 2014, eliminated tariffs on many products, including beef, which has helped Australian beef exports to South Korea rise significantly. In 2020, South Korea was Australia`s fourth-largest beef market, with exports valued at $1.43 billion.
The Australia-United States Free Trade Agreement (AUSFTA), signed in 2004, has been critical in promoting trade and investment between the two countries. The agreement has opened up markets for both countries, benefiting industries like agriculture, manufacturing, and services such as finance and technology.
The bilateral FTAs have also helped to promote investment between Australia and its partnering countries. These agreements provide greater certainty for investors by reducing barriers to entry and providing legal protections for businesses operating in different countries.
In conclusion, Australia`s bilateral free trade agreements have been crucial in boosting the country`s economic growth by expanding trade opportunities and promoting investment between countries. These agreements have enabled Australian businesses to access new markets, resulting in job creation and increased competitiveness. As Australia continues to pursue new bilateral FTAs with other countries, the potential for economic growth and development continues to grow.