Australia leads the way to Globalisation with triple FTA with Asia’s big three

Australia leads the way to Globalisation with triple FTA with Asia’s big three

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minutes 

UPDATED ON

January 8, 2019

AustraliaAustralia leads the way to Globalisation with triple FTA with Asia’s big three is talking with ministers from Japan, Korea and China to finalise Free Trade Agreements with the trio ahead of Tony Abbott‘s visit to Asia in April.

On Wednesday, Japan’s Farm Minister Yoshimasa Hayashi and Australia’s Trade and Investment Minister Andrew Robb failed to reach a consensus on tariff elimination. However, they confirmed negotiations would still be underway to obtain a win-win agreement after 7 years.

Specifically, Australia wants Japan to cut the current beef tariffs to 19% while Japan is only willing to go for around 30%. On the other hand, the Asian country wants Australia to slash its 5% auto tariff straight away.

If the deal goes through, Australia will become the first major farm exporting country to finalise a FTA with Japan, who has been the biggest importer of Australia’s beef.

The Australian beef industry is also awaiting the outcome of talks with Korea over the Korea-Australia free trade agreement (KAFTA), which is under ratification.

On Thursday, the upper house referred KAFTA to a Senate inquiry to get “the best deal Australia can get” for its producers. The country’s beef sector hopes the deal is ratified soon as the US – Australia’s major competitor in Korea’s beef market – has made faster progress regarding tariff slashing.

“There is a unique situation with Australia for both Japan and Korea, as there should be no competition in various sectors between Australia and Japan/Korea. If FTAs go through, we can expect to see synergies created from many supply networks, which will create value for everyone,” said Vivek Sood – CEO of Global Supply Chain Group.

Meanwhile, businesses are calling on Prime Minister Tony Abbott to finalise a FTA with China during his visit to country next month.

“It’s hard to overstate the importance and the strength of Australia’s relationship with China. China is now, by far, our largest trading partner. In some years, it’s our largest source of immigrants. And in most years, it’s our largest source of foreign tourists and students”, Mr Abbott said during an Asia Society Luncheon in Canberra.

The Department of Foreign Affairs and Trade says China’s trade with Australia reached $125 billion in 2012, with great opportunities for the beef and dairy industries.

However, critics point out China’s poor records in labour rights and environmental standards, which means compromising Australia’s standards for a FTA may be unethical.

Despite making no reference to China’s labour and environmental records, New Zealand signed an agreement with China back in 2008 and has greatly improved dairy and meat’s access to the Chinese market.

“In a globalized world, the quicker we can eliminate trade barriers and roadblocks, faster we can integrate Australian companies into the global 5-STAR Business Networks that run modern economies” said Vivek Sood, author of the book “The 5-STAR Business Network“. “Globalisation has been blamed by both the extreme right and extreme left for a host of economic ills facing various nations. Having seen the effects of globalisation at close quarters in more than 100 countries, I cannot disagree more. In my view the results attributed to globalisation are more attributable to other factors such as human malfeasance, institutionalized corruption even in the highest places, laziness, a sense of entitlement to riches without working for them and herd mentality leading to action without thinking and many such factors – all a small part of basic human nature.”


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  • When It comes Australia Mr. Sood you have very vast experience of being there since so long review over some of my research what I have been researching on the globalization of Australia is nowadays “Australia is at the Crossroads of Globalization”
    Hence,
    Foreign investment has allowed the Australian economy to flourish – slashing unemployment, doubling the country’s wealth and reducing the national debt. Once an isolated and lonely market, Australia has leveraged a trade to its advantage, with mining and other industries taking advantage of the fast-growing Chinese economy. Australia citizens remain content with globalization, largely because government policies increased competitiveness without reducing minimum wages or combating with labor unions. The country did remove most trade tariffs and opened its banking to foreign partners, creating a thriving investment climate. Another secret to the widespread satisfaction is that Australia has protected its poor by imposing means-testing for healthcare, pension, and prescription drug benefits. The country also retains a progressive tax system, placing the wealthy taxpayers in a higher bracket. Still, the country does have some problems, including long hours for workers, as well as a rise in materialism and an increasing income gap between rich and poor, and a low savings rate. But citizens are confident about their economy and future – suggesting that policymakers can control the effects of globalization (https://bit.ly/2N4emvM)

  • Didn’t so much idea about the economy. China has very unethical in labor class management. I read last time about it.

  • FTAs open up opportunities for Australian exporters and investors to expand their businesses into key overseas markets. FTAs can improve market access across all areas of trade, goods, services, and investment, and help to maintain and stimulate the competitiveness of Australian firms. This benefits Australian consumers through access to an increased range of better value goods, services, and imports.

  • Globalization has not given way to deglobalization; it has simply entered a different phase. This new era will bring economic and societal benefits, boosting innovation and productivity, offering people unprecedented, and often free, access to information, and linking consumers and suppliers across the world. But it will also be disruptive. After certain sectors fade away, certain jobs will disappear, and new winners will emerge.

  • This FTA doesn’t just reduce and eliminate tariffs and quotas, they also address behind-the-border barriers that impede the flow of goods and services between parties, encourage investment, enhance cooperation and can address other issues such as intellectual property, e-commerce, and government procurement. FTAs can increase Australia’s productivity and contribute to higher GDP growth by allowing domestic businesses access to cheaper inputs, introducing new technologies and fostering competition and innovation.

  • A big milestone achieved, I must say as this agreement can enhance the competitiveness of Australian exports in the partner market, and add to the attractiveness of Australia as an investment destination. It can continue to provide benefits to parties as the agreements are implemented, including through phase-ins and in-built agendas that encourage ongoing domestic reform and promote trade liberalisation.

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