3: Free Trade Agreements

What are Free Trade Agreements (FTA)

Agreements between two or more partner countries, removing the barriers to trade

Advantages of FTAs

Australian companies can more easily expand

Australian businesses are more competitive

Protections for investors and their investments

Importing is cheaper and easier

Disadvantages

Increased Competition

Reduced government assistance (ANZCERTA)

Prone to political relations (may become dependent)

Consumers import from other countries easily

Key Features of the AANZFTA

Between Australia, New Zealand and the ASEAN nations

Key Features:

• Reduction of 96% of tariffs on trade

• Easier travel for natural persons

• Country of Origin laws

• International Arbitration

• Protection for investors and investments

Key features of ANZCERTA

Between Australia and New Zealand

Key Features

• Elimination of government support

• Elimination of all tariffs

• Standardised food laws