Ftas Not Yet in Force: Australian Free Trade Agreements
Ftas Not Yet in Force: Australian Free Trade Agreements
Recent years have seen remarkable growth in the trading relationship between India
and Australia, fuelled by the many complementarities between the two economies.
Two-way trade in goods and services has grown in value from $13.6 billion in 2007
to $24.3 billion in 2020.
India is the world's largest democracy and is a market of 1.3 billion people. Its
youthful population, diversified economy and growth trajectory present significant
opportunity for Australian business, including in education, agriculture, energy,
resources, tourism, healthcare, financial services, infrastructure, science and
innovation, and sport.
Australia’s services companies and professionals will benefit from new commitments
that make it easier to operate in the UK market, supporting the mutual recognition of
professional qualifications and greater certainty for skilled professionals entering the
UK labour market. Reflecting our deep people-to-people links, both countries will
offer enhanced opportunities to live and work temporarily in each other’s country.
● Trans-Pacific Partnership (TPP)
On October 5, 2015, Ministers of the 12 Trans-Pacific Partnership (TPP) countries –
Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New
Zealand, Peru, Singapore, United States, and Vietnam – announced conclusion of
their negotiations. The result is a high-standard, ambitious, comprehensive, and
balanced agreement that will promote economic growth; support the creation and
retention of jobs; enhance innovation, productivity and competitiveness; raise living
standards; reduce poverty in our countries; and promote transparency, good
governance, and enhanced labor and environmental protections. We envision
conclusion of this agreement, with its new and high standards for trade and
investment in the Asia Pacific, as an important step toward our ultimate goal of open
trade and regional integration across the region.
An ambitious and comprehensive FTA with the EU will assist with post-pandemic
economic recovery by providing new opportunities in a highly significant market for
Australian goods and services. It will provide Australian exporters with a competitive
edge and more choices about where they do business. Australian consumers and
companies stand to benefit through greater choice in goods and services at lower
prices.
The FTA builds upon Australia and the EU’s natural partnership, arising out of a
shared commitment to the rule of law, global norms and free and open markets. A
strong EU is vital to Australian interests in protecting and promoting a rules-based
international order. We want an FTA with the EU to set the benchmark for what can
be achieved between like-minded partners.
Australia and Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, Oman,
Qatar, Saudi Arabia, and the United Arab Emirates (UAE)) share a significant
economic relationship, encompassing trade and investment across a broad range of
goods and services.
The GCC is a key established market for a range of Australian exports including
agricultural products like live animals, meat, dairy, vegetables, sugar, wheat, and
other grains, as well as automotive and resources exports. The majority of
Australia’s goods trade with the Middle East is with the GCC, accounting for $11.8
billion in two-way goods trade in 2021. It is also a growing market for services and
investment, with strong opportunities in infrastructure, education and professional
services.
Free Trade Agreement negotiations with the GCC commenced in July 2007. Four
rounds of Australia-GCC FTA negotiations were held, with the last one occurring in
June 2009. Negotiations with the GCC were subsequently paused and there have
been no further negotiating rounds.
At the GCC Leader’s Summit in January 2021, the GCC renewed its interest in
pursuing an FTA with Australia (and other key countries) as a priority market.
Subsequent discussions have occurred between Australia and the GCC at
Ministerial and officials’ level on a potential resumption of negotiations.
Recent years have seen remarkable growth in the trading relationship between India
and Australia, fuelled by the many complementarities between the two economies.
Two-way trade in goods and services has grown in value from $13.6 billion in 2007
to $24.3 billion in 2020.
India is the world's largest democracy and is a market of 1.3 billion people. Its
youthful population, diversified economy and growth trajectory present significant
opportunity for Australian business, including in education, agriculture, energy,
resources, tourism, healthcare, financial services, infrastructure, science and
innovation, and sport.
The United Arab Emirates (UAE) is Australia’s largest trade and investment partner
in the Middle East. With $6.8 billion in two-way trade in 2020 (over $10 billion
pre-COVID), the UAE is Australia’s 19th largest export market globally for goods and
services.
Currently, Australia’s major exports include aluminium oxide, meat (beef, sheep, and
lamb), vehicle parts and accessories, and telecom equipment and parts. There are
further opportunities for Australian business in the UAE including in services,
agriculture, education and tourism, particularly given the UAE’s position as a regional
hub, and through increased investment and people-to-people links.
On 17 March 2022, then Minister for Trade, Tourism and Investment Dan Tehan and
HE Dr Thani bin Ahmed Al Zeyoudi Minister of State for Foreign Trade issued a joint
statement announcing Australia and the UAE’s intention to pursue a Comprehensive
Economic Partnership Agreement (CEPA).
A trade agreement with the UAE would be a first for Australia in the Middle East and
add to Australia’s existing network of trade agreements. The CEPA, a bilateral free
trade agreement, has significant potential to strengthen and deepen the dynamic
relationship between the two countries.
The 1994 Marrakesh Agreement, establishing the WTO, refers to the importance of
optimally using the world's resources in accordance with the objective of sustainable
development and seeking to protect and preserve the environment. The WTO
followed the lead of the 1992 Rio Conference on Sustainable development which
endorsed the idea of making trade and environment policy and practice as "mutually
supportive" as possible. Consistent with this, the role of the World Trade
Organization (WTO) in relation to trade and environment is to ensure that
environmental policies do not act as illegitimate cover for protectionist policies, and
that trade rules do not stand in the way of legitimate domestic environmental
protection.
Consideration of trade and environment issues within the WTO centers on the
Committee on Trade and Environment (CTE). The Committee's mandate is broad,
and provides opportunities for WTO members to raise a wide range of trade and
environment issues.
Australia and the Pacific Alliance launched negotiations for a Free Trade Agreement
(FTA) on 30 June. A regional trading bloc comprising Chile, Colombia, Mexico and
Peru, the Pacific Alliance's GDP was worth over USD $1.8 trillion in 2015-16. Over
the last decade, Pacific Alliance members had some of the fastest growing
economies in the region. The four countries, taken together, account for 37 per cent
of Latin America's population, 35 per cent of its nominal GDP, 46 per cent of its
exports, and 50 per cent of its total imports.
The Pacific Alliance is a growing market for Australian goods and services exporters.
In 2016, total two-way trade in goods and services with Pacific Alliance members
was worth $5.8 billion, more than double what it was ten years ago. An FTA with the
Pacific Alliance would provide Australian businesses with an opportunity to expand
our engagement with this growing market.
Pacific Alliance countries are also an attractive investment destination for Australia.
There are currently over 300 Australian businesses operating in Pacific Alliance
economies. An FTA would provide a platform for expanding and deepening these
relationships.