Australian Trade Policy: Advantages and Disadvantages

Running head: ECONOMICS
Economics
Name of the student
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ECONOMICS
Australian trade policy
Executive summary
The report is about the trade policies of Australia. The first part of the report is the
introduction which states that Australia is very much into the free trade however there are
some restriction on imports for protecting the domestic industries. The second part consist of
analysis which states that the trade policies have both the disadvantages and advantage and
affects the economy, employment and the industries both positively and negatively. The last
part of the paper is the conclusion which states that trade protections have both advantage and
disadvantage.
Section 1: Introduction
Australia is currently known to have 12 free trade agreement with many countries all over the
world. The trade in Australia have been disrupted by a significant increase in the protectionist
measures. The trade agreements prudently are known to provide significant trade obligations
in areas like investment, public regulation and the environment. the international trade and
investment are very essential for the Australian economy as it provides jobs along with
prosperity. The international trade and the investment are known to open up opportunities for
the Australia’s in order to expand heir business. The location of Australia has also made the
country a major supplier to the markets of Asia Pacific region (Baum. and Friel 2017). The
government of Australia known to have a large number of policies which develops and
Australian business which involves in international trade. The goods that are imported in
Australia classification the trade agreements are known to improve the market access across
various areas in order to stimulate the competitiveness of the firms in Australia. The foreign
investment has help in building the economy of Australia and will also continue enhancing
the well being of the Australians. The foreign investment is known to supplement the

ECONOMICS
domestic savings since without the foreign investment, the production, income and the
employment will b\e quite lower in nature (Farsund and Daugbjerg 2017). Australia is also
known to participate in the international organizations such as the world trade organization,
APEC, G20 and the OECD helps in building the economic growth of Australia and
prosperity.
Section 2: Analysis
Presently Australia is known to have Free Trade Agreements in force with japan, Malaysia,
China, Korea, Thailand, US, Chile, New Zealand and the Association of South East.
Australia is known to benefit from one of the most favoured nations while engaging in the
international trade with the other member nations. Australia is also a member of world trade
organization and have known to negotiated with a number of bilateral as well as regional
trade agreements with the other nations.
The trade agreements of Australia which are presently in force are as follows:
Agreement Entry into force
Australia New Zealand Closer Economic
Relations Trade Agreement
01-Jan-83
Australia-US Free Trade Agreement 01-Jan-05
Australia-Thailand Free Trade Agreement 01-Jan-05
Australia-Chile Free Trade Agreement 06-Mar-09
Agreement Establishing the ASEAN-Australia-
New Zealand Free Trade Area
01-Jan-10
Singapore-Australia Free Trade Agreement 02-Sep-11
Malaysia-Australia Free Trade Agreement 01-Jan-13
Free Trade Agreement between the
Government of Australia and the Government
of the Republic of Korea
12-Dec-14
Agreement between Australia and Japan for
an Economic Partnership
15-Jan-15
Free Trade Agreement between the
Government of Australia and the Government
of the People’s Republic of China
20-Dec-15

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Presently Australia is also known to have engaged with five other free trade negotiations
which are under development where two are bilateral and the other three are plurilateral.
The two way trading
The two way trade of austral have reached the record of $600 billion in the year 2011. Iron
ore, coal gold, educational service are the important goods which is leading the exports of
Australia. In case of international trade when countries are known to import as well as export
the similar goods is termed as two way or interindustry trade. The reasons why the countries
import and export the similar goods are due to variations in cost of transportation and
seasonal effects. China is known to be Australia’s largest two-way trading partner export
market as well as import source.
Australia is known to be one of the most open countries in the word which have made a lot of
progress since 1980s for reversing the restrictive trade regime. In the year 2017, Australia had
been one of the largest trading partner of Hong Kong.
Australia benefits from trade
 Trade is known to promote economic growth and will also raise the income of the
household
The trade liberalisation have boosted the real gross domestic product of Australia by more
than 5 percent compared to the previous year and have lifted the real income of the Australian
household by over $8000 .
 The trade in educational is known to boost the economy of Australia and also
strengthen the educational institutions
The education services are known to be Australia’s largest service export commodity. In the
year 2018, the international students have known to spend almost $30 billion dollars in