Australia’s free trade agreements
The economy will see key benefits from the Government’s recently completed free trade agreements
The Government has recently completed three historic free trade agreements (FTAs) with China, Japan and Korea – our three largest export markets. These FTAs involve tariff reductions worth over $6 billion.
The FTAs will help attract investment in Australia, make key industries more competitive and increase opportunities for Australian businesses. This will help drive growth, increase productive capacity and create jobs. These FTAs also strengthen Australia’s economic links with the dynamic North Asia region. The FTAs achieve important reductions in tariffs and other trade barriers in key markets, driving improved access to international markets for Australian exporters. These reduced trade barriers make Australian exports – including from key Australian industries such as agriculture, resources and manufacturing – relatively cheaper and therefore more competitive.
Such reductions in trade barriers will also help boost the competitiveness of Australian exports in the services sector, which make a large contribution to Australia’s overall exports. For example, the China‑Australia FTA will enable Australian services providers to gain new access to China’s growing and already significant services sector – the largest contributor to China’s GDP.
Finally, reciprocal reductions in tariffs and other trade barriers in Australia will provide consumers with a greater variety of goods and services at lower prices.
For example, Toyota announced savings of up to $1,000 on the Corolla Hatch as a result of our FTAs.