Chapter 3 ( Free Trade Agreements)

Free Trade Agreements

Goal: To increase the profit and efficiency of the private sector by reducing the time and money spent on complying with different laws in the different states and territories they operate in.

Trade negotiations result in governments committing to free trade agreements > Free trade agreements are made between countries and to form trading regions

Example:

  • involving tariffs and customs duties on agricultural products like wheat and apples
  • two or more countries agree to standardise customs duties and tariffs, to reduce them or remove them
  • each country can export their produce to the other countries and sell it at a similar price as local produce

Examples of Free Trade Agreements involving Australia

  • China-Australia Free Trade Agreement
  • ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)
  • Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA)
  • Pacific Agreement on Closer Economic Relations-Plus (PACER-Plus)
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