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    Trade

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    Skyler Fuller
    Australia has become a wealthy economy through international trade, which accounts for over 20% of GDP. Trade relationships have shifted over time, with Britain originally the main partner due to colonization but distance making trade inefficient. Australia now primarily trades with East Asian and Pacific countries like Japan, China, and South Korea, exporting resources and importing manufactured goods. To stabilize trade relationships, Australia participates in agreements like the G20, APEC, and the WTO, and has bilateral deals like AUSFTA to reduce barriers and expand exports.

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    Trade

    Uploaded by

    Skyler Fuller
    18 views3 pages
    Australia has become a wealthy economy through international trade, which accounts for over 20% of GDP. Trade relationships have shifted over time, with Britain originally the main partner due to colonization but distance making trade inefficient. Australia now primarily trades with East Asian and Pacific countries like Japan, China, and South Korea, exporting resources and importing manufactured goods. To stabilize trade relationships, Australia participates in agreements like the G20, APEC, and the WTO, and has bilateral deals like AUSFTA to reduce barriers and expand exports.

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    Australia has become a wealthy economy through international trade, which accounts for over 20% of GDP. Trade relationships have shifted over time, with Britain originally the main partner due to colonization but distance making trade inefficient. Australia now primarily trades with East Asian and Pacific countries like Japan, China, and South Korea, exporting resources and importing manufactured goods. To stabilize trade relationships, Australia participates in agreements like the G20, APEC, and the WTO, and has bilateral deals like AUSFTA to reduce barriers and expand exports.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    18 views3 pages

    Trade

    Uploaded by

    Skyler Fuller
    Australia has become a wealthy economy through international trade, which accounts for over 20% of GDP. Trade relationships have shifted over time, with Britain originally the main partner due to colonization but distance making trade inefficient. Australia now primarily trades with East Asian and Pacific countries like Japan, China, and South Korea, exporting resources and importing manufactured goods. To stabilize trade relationships, Australia participates in agreements like the G20, APEC, and the WTO, and has bilateral deals like AUSFTA to reduce barriers and expand exports.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Trade

    Australia is the world’s thirteenth largest economy,


    which is notable due to the comparatively small
    population. One of the main components which have
    contributed to this wealth is trade, which ensures not
    only the prosperity of Australia’s economy but also
    its global relations and many bilateral (between two
    nations) as well as regional trade relationships have
    This graph shows the value of Australia’s good
    and services trade and clearly shows that it has been formed. However, along with these benefits,
    increased dramatically over the years (Approx.
    $125 billion increase from 1999 to 1009)
    there are also a few problems such as foreign debt, in
    which money is owed to other nations which is
    sometimes caused by our reliance on trade.

    In the earlier days of settlement, Australia’s main trading partner was Britain and the main
    reason for this was largely due to the fact that it was
    Britain that had colonised this new Australia, which
    didn’t have any trading partners originally.
    However, this trading relationship wasn’t very
    efficient due to the great distance between the
    European countries and Australia. Therefore, by the
    1960s, the Australian government recognised that
    geographically, the United States and the South-
    East Asian- Pacific region were much more suitable
    than Britain as trading partners and this lead to a Australia’s Exports to SE-Asia in 2009

    shift in trading policies in order to build a strong


    relationship between these areas and as a result of this, Australia’s five main trading partners
    today are Japan, the United States, China, New Zealand and South Korea.

    Australian exports to these countries consist of mainly primary resources such as ore, coal, oil
    and wool, with China becoming Australia’s largest export market in 2009, which accounts to
    $45 billion dollars (19.2% of total exports). In return, Australia imports many goods such as
    motor vehicles, clothing and electronic devices from countries such as the United States and
    China.
    In order for Australia’s trading relationships with the large number countries to be more
    stable and efficient, it has joined as well as formed many trading agreements.

    One of the major trade agreements in which Australia is involved in is the G20 (The Group of
    Twenty), which is a forum designed for the participating 19 countries. Finance Ministers and
    Central Bank Governors get together and discuss the global economic and financial
    challenges. An example of how this group has helped with the global economy is during the
    Global Financial Crisis, when they co-ordinated actions to boost consumer and business
    confidence, giving the economy a boost to start the recovery.

    The darker blue regions show the participants of this agreement (two-thirds of the world’s population) and they account
    for 80% of global trade.

    Another important group in which Australia is involved in is the APEC or the Asia-Pacific
    Economic Cooperation (1989), which was formed to accommodate the growing
    interdependence regarding trade between countries in this region. Australia was keen to join
    in this agreement as it meant that it would free up a lot of trade between Australia and the
    Asian-Pacific region, which is now Australia’s main trading target (all five of Australia’s
    main trading partners
    are a part of this
    agreement). The
    following graph shows
    how beneficial APEC is
    to Australia’s
    international investment
    position.
    Also, the World Trade Organisation (WTO) is the only global organisation that monitors and
    administers the rules of trade between countries and therefore, Australia is also a part of this,
    helping to assist the trade and economic development of developing countries.

    Lastly, an example of a bilateral agreement is the AUSFTA (Australia-United States Free


    Trade Agreement), which has been formed to negate the agricultural trade barriers between
    Australia and the United States and therefore to significantly expand exports such as meat.
    This agreement is a free trade agreement (FTA), which means that tariffs and other trade
    restrictions on goods as well as to a certain extent-services have to be eliminated under the
    WTO. These agreements improve access to international markets and Australia has formed
    FTAs with new Zealand, Singapore, Thailand, US and negotiations are currently underway
    with China, Malaysia, Chile and Japan.

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