Free Trade Agreements boost the Australian economy
Media release
3 May 2010
The Department of Foreign Affairs and Trade has lodged its submission to the Productivity Commission’s Review of Australia’s Free Trade Agreement’s (FTAs).
The Department’s submission discusses in detail the benefits achieved through Australia’s FTAs with ASEAN (together with New Zealand), Chile, New Zealand, Singapore, Thailand and the United States.
The submission also points to the potential of FTAs currently under negotiation: with China, Japan, Malaysia, the Republic of Korea, the Gulf Cooperation Council, and the Trans Pacific Partnership, to deliver significant additional benefits.
Minister for Trade, Simon Crean, welcomed the submission and noted the significant contribution Free Trade Agreements have made to Australia’s economic prosperity.
“Trade is a vital component of Australia’s strong economy and trade liberalisation is a sure-fire way to create jobs, boost productivity and lift real wages,” Mr Crean said.
“Let’s not forget that one in five Australian jobs is trade-related.”
“Australia’s comprehensive and high quality FTAs can be building blocks for multilateral and regional trade liberalisation.”
“We have shown ourselves to be capable of pursuing our objectives in the Doha Round while at the same time negotiating FTAs which support these objectives.”
“My Department’s submission recognises the Government’s activism on all trade fronts: at the multilateral level through the WTO, via our participation in regional institutions such as APEC and through our pursuit of bilateral and regional FTAs, to create a self-reinforcing network of trade commitments to the benefit of Australian exporters, a cascade effect,” Mr Crean said.
Specific FTA gains highlighted in the submission include:
- the Singapore-Australia FTA removed restrictions on the number of wholesale banking licences available to Australian banks in Singapore;
- the Australia-U.S. FTA ensured access for Australian business to the U.S. Federal and State government procurement markets for the first time; and
- the Australia-ASEAN-New Zealand FTA will eliminate tariffs on 96 percent of current Australian merchandise exports to ASEAN countries by 2020, with most of the liberalisation achieved over the next few years.
“ASEAN is the fastest growing region in the world and the AANZFTA is just the latest example of how trade liberalisation is good for Australian businesses, good for Australian workers and good for the Australian economy” Mr Crean said.
DFAT's submission to the Productivity Commission can be found at http://www.dfat.gov.au/trade/ftas.html.Media inquiries
- Trade Minister's Office: (02) 6277 7420
- Departmental Media Liaison: (02) 6261 1555