Free trade agreements (FTAs) are agreements between countries that promote trade by reducing or eliminating tariffs, quotas, and other barriers to trade. These agreements aim to increase economic growth and job opportunities by allowing countries to access new markets and increase their exports. Australia, with its highly developed economy and strategic location in the Asia-Pacific region, has signed several free trade agreements that have boosted its trade and investment relations.
Let`s take a closer look at some of the free trade agreements that Australia has signed:
1. Australia-United States Free Trade Agreement (AUSFTA)
The AUSFTA was signed in 2005 and has been a significant boost to Australian trade with the United States. Under the agreement, tariffs on many goods traded between the two countries were eliminated, and new opportunities opened up for businesses in both countries.
2. Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA)
ANZCERTA was signed in 1983 and is one of the world`s oldest and most comprehensive free trade agreements. It has led to a significant increase in trade between Australia and New Zealand, with both countries benefiting from increased investment and trade in goods and services.
3. Australia-Singapore Free Trade Agreement (ASFTA)
ASFTA was signed in 2003 and has provided Australian businesses with access to one of the most open and transparent economies in the world. Under the agreement, tariffs were eliminated on 99% of Australian exports to Singapore, creating new opportunities for Australian businesses in sectors such as education, tourism, and professional services.
4. Australia-China Free Trade Agreement (ChAFTA)
ChAFTA was signed in 2015 and is one of Australia`s most significant free trade agreements. It has further strengthened Australia`s economic relationship with China, its largest trading partner. Under the agreement, tariffs were eliminated on a range of Australian exports to China, including agricultural goods, resources, and manufactured goods.
5. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
The CPTPP is a free trade agreement signed by 11 Pacific Rim countries, including Australia, in 2018. The agreement covers areas such as goods and services trade, investment, intellectual property, labor, and the environment. The CPTPP has increased market access for Australian businesses in key markets such as Japan, Canada, and Mexico.
In conclusion, free trade agreements have played a significant role in Australia`s economic growth and trade relationships. With its strategic location in the Asia-Pacific region and a highly developed economy, Australia has signed several free trade agreements that have benefited its businesses and consumers. As a result, Australian companies now have access to new markets, reduced tariffs, and greater opportunities to compete globally.