International Trade Agreements
The Commonwealth Government has chief responsibility for advancing Australia’s interests in achieving better market access and trading conditions for Australian exporters.
At the same time, the South Australian Government provides input into the Commonwealth's trade policies, thereby advancing the interests of the State's businesses and exporters.
Through the Department of Foreign Affairs and Trade (DFAT), the Commonwealth advances market access and other issues through multilateral trade negotiations with the World Trade Organisation (WTO) and regional trading arrangements, such as Free Trade Agreements (FTAs), with individual countries.
International foreign and trade policy decisions have the potential to impact on South Australia. Commonwealth trade policy decisions can change South Australian trading patterns while foreign policy decisions not only impact on trade, but also have implications for other areas of State Government policy, such as social and environmental policy.
Through the Ministerial Council on International Trade, the South Australian Government is an active participant in Australia’s trade policy agreements, including the following:
Current FTAs
Australia-Chile FTA
On 30 July 2008, the Australian Minister for Foreign Affairs and his Chilean counterpart signed the Australia-Chile FTA.
South Australia will benefit from the Australia-Chile FTA through enhanced access to Chile's market and greater investment linkages in the mining, agriculture, viticulture, forestry, fishing and energy industriesSouth Australia will benefit from the Australia-Chile FTA through enhanced access to Chile's market and greater investment linkages in the mining, agriculture, viticulture, forestry, fishing and energy industries.
For further details on the Australia-Chile FTA negotiations, please visit the DFAT website.
World Trade Organisation Doha Round negotiations
The Doha round of multilateral trade negotiations was launched at the 4th Ministerial Conference of the WTO held on 14 November 2001 in Doha, Qatar.
Among other things the Doha Round mandated negotiations among WTO members to further progress global trade liberalisation in agriculture, industrial products and services.
Australia's key objective in the negotiations is to maximise market access outcomes for Australia in agriculture, services and industrial products. Agriculture will continue to be of central importance for Australia including the commitment to phase out export subsidies and seek reductions in domestic support.
Given that almost 40% of South Australia's exports comprise agricultural products, this outcome will be important for South Australia's exporters.
The Doha Round was almost concluded nearly two years ago, although Ministerial talks in the WTO broke down on 29 July 2008. South Australia was disappointed at the failure to secure an outcome. Despite the breakdown, significant progress was made on agriculture, industrial products and services.
Unfortunately, little progress has been made since July 2008.
Given its commitment to free trade, South Australia supports the Commonwealth's efforts to get the Doha Round back on track as quickly as possible.
Australia-United States Free Trade Agreement (AUSFTA)
On 8 February 2004 Australia’s Minister for Trade, Mr Mark Vaile, and the United States Trade Representative, Mr Robert Zoellick, concluded negotiations for the Australia-United States FTA (AUSFTA). The agreement came into force on 1 January 2005.
AUSFTA is a comprehensive FTA that covers all industries and sectors within the two economies, including services and investment. It is important to South Australia because of the significance of the US market for the State’s exporters, particularly in wine and automotive products. The South Australian Government supports AUSFTA.
When the Agreement came into force, it created significant new benefits and opportunities for exporters, including:
- Elimination of duties on over 97 per cent of United States tariff lines for Australia’s non-agricultural exports (excluding textiles and clothing).
- Improved access for Australian agriculture, with 66 percent of agricultural tariff lines going to zero from day one and a further nine per cent cut to zero within four years.
- Full access for the first time for Australian goods and services to the $200 billion market for United States federal government procurement.
- Enhanced legal protections that guarantee market access and non-discriminatory treatment for Australian service providers in the United States’ market, with only limited exceptions.
AUSFTA website
Thailand-Australia Free Trade Agreement (TAFTA)
The Thailand Australia FTA (TAFTA) came into force on 1 January 2005. The TAFTA has improved market access for goods and services, and facilitated trade in services and investment.
TAFTA has potential to impact on South Australia’s automotive, food, agricultural and textile, clothing and footwear sectors. Following is a summary of the TAFTA outcomes.
- Upon TAFTA's entry into force on 1 January 2005, Thailand eliminated its tariffs on approximately 2,934 tariff items, around 53 per cent of all items, accounting for 78 per cent of current Thai imports from Australia. Of these, only 206 items were previously duty free.
- A further 41 per cent of Thai tariffs will be phased to zero by 2010. These items cover 17 per cent of current trade.
- All remaining tariffs, including tariff rate quotas, will phase to zero in 2015 or 2020, with the exception of skim milk powder and liquid milk and cream, for which the tariff rate quotas will be eliminated in 2025.
- For agricultural products subject to tariff rate quotas prior to 1 January 2005, Thailand has either eliminated the tariff and quota restrictions or will expand access for Australia over a transition period varying according to the product, before final elimination of the tariff rate quota.
- All references to an "immediate" elimination of or reduction in tariffs mean immediately upon entry into force of the agreement (1 January 2005).
TAFTA website
Singapore-Australia Free Trade Agreement (SAFTA)
On 17 February 2003, the Minister for Trade, Mark Vaile, and the Minister for Trade and Industry of Singapore, George Yeo, signed the SAFTA.
Both countries made commitments in SAFTA that go beyond existing liberalisation obligations in the WTO and it is seen as a stepping stone towards further progress at the multilateral level. The agreement came into effect on 28 July 2003.
The SAFTA makes commitments on:
- Elimination of all tariffs from entry into force
- Restrictions on the number of wholesale banking licenses to be eased over time
- More certain, and enhanced operating environment for financial services suppliers
- Removal and easing of residency requirements for Australian professionals
- National treatment and market access commitments for Australian education providers
- The environmental services sector is now largely open to Australian businesses
- Co-operation on eliminating trade in goods infringing intellectual property rights.
An outcome of the first review of the SAFTA, which occurred on 14 July 2004, was the development of the State and Territory Governments’ comprehensive list of reservations (areas of the economy which governments do not wish to liberalise) in the trade in services and investment. These reservations, which deal with services and investment issues between the States and Territories of Australia and Singapore, came into affect after the first review of the SAFTA.
SAFTA website
Australia and New Zealand Closer Economic Relations (CER)
On 1st January 1983, Australia signed a Closer Economic Relations (CER) agreement with New Zealand. The CER is touted as the most comprehensive FTA of its kind in the world, delivering almost full trade liberalisation for Australia and New Zealand.
CER Website
Australia’s Upcoming Free Trade Agreements
Australia is currently negotiating the following bilateral and multilateral FTAs. These include:
For further details on Australia’s FTA negotiations, please visit the DFAT website
FTAs under consideration
Australia - India FTA
Australia - Indonesia FTA
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