FTA

Question 1

WTO

Answer 1

• IGO dealing with the rules of trade between nations

*WTO rules promote free trade worldwide by reduced barriers + encouraging fair, transparent agreements

• The WTO has mechanism which states can use to resolve trade disputes

Question 2

ASEAN-Australia-New Zealand FTA (AANZFTA, 2015):

Answer 2

Reduced or eliminated tariffs on 97.7% of Australian exports to ASEAN countries.

Question 3

China-Australia FTA (ChAFTA, 2015):

Answer 3

Eliminated tariffs on almost all Australian exports to China, including resources + agricultural products, gave Australian service providers access to the Chinese market + opened the door for Chinese investment in Australia.

Question 4

*Pacific Agreement on Closer Economic Relations (PACER Plus, 2020)

Answer 4

Agreement between 8 PICs, Australia + New Zealand designed to support the development of PIC. Australia + New Zealand removed tariffs on goods from the Pacific islands + allowed great numbers of Pacific Islanders to obtain work visas

Question 5

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP, 2018):

Answer 5

Multilateral trade agreement ratified by 12 countries in Asia + the Americas (also UK). Parties agreed to remove 99% of tariffs, creating a free trade zone in the Pacific. Was to include the US, which withdrew during the 1s Trump administration.

Question 6

benefits of FTA: aus eco

Answer 6

*DFAT estimates that Australia receives a 12.6% increase in exports annually from an FTA

*2020-2021: Increased exports due to FTAs resulted in the creation of 40,360 jobs in agriculture

• 2022-2023: China-Australia FTA elevated average income of Australian households by $2600
• Productivity Commission has estimated that free trade has permanently lifted Australia’s GDP by 5.4% since 1990

Question 7

benefits of FTA: Participating in FTAs promotes peace + stability in the region

Answer 7

*FTAs create economic connections between states that promote interdependence

Diplomatic negotiations about trade can lead to cooperation in other areas (e.g. climate change)

Participating in regional FTAs allows Australia to project a cooperative image to other Indo-Pacific nations