Premium Essay

Australia Trade Policy

In: Business and Management

Submitted By lisale297
Words 2471
Pages 10
Table of content 1. Executive Summary page 2

2. Introduction page 2

3. Present Trade Position page 3 3.1 Current Account Deficit page 3+4 3.2 Net Foreign Debt page 4+5 4. Australia’s Trade Policy page 5 3.4 Trade Liberalization and Protection in Australia page 6 3.5 The Australian Dollar page 6 3.6 SWOT (Strength, Weakness, Opportunities Cost and Threat) Analysis page7 3.7 CBA for Structural Reform page 8

4. Conclusion page 9

5. Recommendation page 9+10

6. Reference page 11

1. Executive Summary
The purpose of this report was to analysis present of Australia’s trade position and prepared a plan for improving Australia’s position. Specific objectives were to identify key economic problems in term of trade and current account. Problems and solutions were found in the trade and current account though Carbon tax with high Australian dollar is likely to force radical structural reform on the economy and the manufacturing. The report recommends using structural reform to improve Australia’s trade position. Furthermore, Carbon tax initially acts against competitive international trade. In the long term, it can offer solutions to the two sector economy. 2. Introduction Since the onset of the East Asian economic and financial crisis in late 1997 the Australian economy has continued to record strong growth, despite many of Australia’s Asian major trading partners (MTPs) experiencing recession and a consequent slowdown in world economic growth. Therefore, this report will prepare a plan for improving Australia’s trade position and will focus on four areas: • Recommendations to improve Australia’s trade position • Identification of issues in the current trade environment which need…...

Similar Documents

Premium Essay

Trade Policy and Developing Countries

...Name: Institution: Course: Tutor: Date of submission: Trade Policy and Developing countries A number of developing countries have enabled the facilitation of their economies to develop recent centres of development internationally. International trade has enabled them to make an effective way to generate funds as a result of making trade. However, there has been uneven development and especially the poorest countries have managed a lesser share in the world economy. Many of these poor countries have been unable to make appropriate use of the markets that are opening around them or even try to balance losing tax revenue by developing ways of taxation, since the financial stability and internal structures of these countries are lacking in some ways. The upholding of barriers to trade and other protective measures continues by the need to keep the existing home control structures (Krueger, 45). The large numbers of developing countries highly dependent on agriculture have slow productivity rate and the trade barriers remaining are more than those for industrial goods. Industrial production has witnessed more investment by the emerging economies; this has facilitated the development and it has seen exports grow twice as much as agricultural exports, which comprise 80 percent of the total volume of exports of developing countries. It is necessary for developing countries to take free trade services and labour mobility (Colin, 42). Developing countries should develop......

Words: 808 - Pages: 4

Premium Essay

International Trade Theory and Policy

...International Trade Theory and Policy Institution Date The aim of this article is to discuss a number of issues associated with the international trade theory and policy. First, the motives, nature and purpose of the original General Agreement on Tariffs and Trade have been discussed in this article. Also, the extent to which this purpose was achieved in the first 6 rounds of negotiations has been discussed. The reasons that drove President Reagan and his administration to propose the eighth round of negotiations are also featured in this article. Lastly, the reasons why there is still a significantly steep “effective” tariff hampering global free trade, despite fairly low tariffs on final goods have also been discussed in this article. The General Agreement on Tariffs and Trade (GATT) was formed in1947. This was after the United Nation conference whose aim was to create the International Trade Organization failed.  The GATT came to an end in 1993. In 1995, the (World trade organization WHO) replaced GATT. GATT principal purpose was to boost fair trade by reducing and taking control of the trade tariffs amongst its member countries. In addition, it was responsible solving any trade disputes between the member countries.  Before it ended, The GATT had become interested in the intellectual property rights and the effects of global trade on the environment. The General Agreement on Tariffs and Trade had a provision known “as the most favored nation status.” GATT......

Words: 2289 - Pages: 10

Premium Essay

Trade Relation Between Australia and Indonesia

...Trade relation between Australia and Indonesia International trade is the exchange of goods and services between countries. The countries that are in the scope now are Australia and Indonesia. There are many advantages to international trade but countries must choose which goods or services to produce for export and which goods should it import. To be able to answer the question which good should country produce or import the concept of comparative advantage comes in hand. A country is said to have a comparative advantage in production of a good if it can produce better at a lower opportunity cost than another country. In the article above Australia are willing to form relationships and trade with Indonesia, due to the advantage of their economy. There are an estimated 15,000 Indonesian studying in Australia where they provide 500 million to the Australian economy. Furthermore Indonesia is a country with beautiful beaches and favourable climate has a comparative advantage output of tourist service. Indonesia receives about 1million tourist just from Australians. The international economics part of the course was used to analyze this course. The Australians gain low price vacation at a low price than the domestic one “It’s a cheap and easy option. A lot of people my age have gone [to Bali], or talk about going,” he said while the Australian issue 400 full scholarships to the Indonesian postgraduate to complete their masters. The two country benefits from each other. The...

Words: 661 - Pages: 3

Premium Essay

Trade Policy

...Trade policy A ‘‘‘commercial policy’’’ (also referred to as a trade policy or international trade policy) is a set of rules and regulations that are intended to change international trade flows, particularly to restrict imports. Every nation has some form of ‘‘‘trade policy’’’ in place, with public officials formulating the policy which they think would be most appropriate for their country. Their aim is to boost the nation’s international trade. Example ‘‘‘European Union’’’, Mercosur committee etc. The purpose of trade policy is to help a nation's international trade run more smoothly, by setting clear standards and goals which can be understood by potential trading partners. In many regions, groups of nations work together to create mutually beneficial trade policies. Trade policy can involve various complex types of actions, such as the elimination of quantitative restrictions or the reduction of tariffs. According to a geographic dimension, there is unilateral, bilateral, regional, and multilateral liberalization. According to the depth of a bilateral or regional reform, there may be free trade areas (wherein partners eliminate trade barriers with respect to each other), ‘‘‘custom unions’’’ (whereby partners eliminate reciprocal barriers and agree on a common level of barriers against no partners), and free economic areas (or deep integration as in, for example, the European Union, where not only trade but also the movement of factors has been liberalized, where a......

Words: 1390 - Pages: 6

Premium Essay

Cameroon Trade and Development Policies

...Diplomacy and International Relations – Spring Trimester 2010 Topic: Cameroon’s Trade and Development Policies: Analysis and recent Tendencies Student: ANYANGWE Fombang Claudius Course: International Trade and Development: 21st Century Issues Instructor: Prof. Dr. Gustavo Olivares Abstract: Cameroon was one of the few privileged countries to join the World Trade Organization (WTO) in 1995 as a founding member while establishing a Common External Tariff (CET) to enhance intraregional trade under the CEMAC economic bloc. This accession came at a time when Cameroon was implementing drastic structural reforms to handle the scourge of the great economic depression of the 1990s that spread as wildfire across most African countries. In struggling to advance the IMF-World Bank proposed structural reforms of economic liberalization and privatization, WTO was seen as an appropriate panacea for the devastated economic situation by providing a multilateral trading system where Cameroon could gain greater market access for its products and attract foreign direct investment. This paper analyzes the trade and development policies that Cameroon has adopted within the framework of the WTO and other economic partnership agreements in addressing the developmental and economic problems facing Cameroon. The study explores Cameroon’s past and ongoing negotiations geared towards the objectives for an open trade regime. The study concludes that despite the loopholes in WTO that disfavor......

Words: 2656 - Pages: 11

Premium Essay

Trade and Policy

...Royce of roses. They have huge heads and unusually vibrant colors, including 10 different reds, from bleeding heart crimson to a rosy lover's blush. Most of Ecuador's 460 or so rose farms are located in the Cayambe and Cotopaxi regions, 10,000 feet up in the Andes about an hour's drive from the capital, Quito. The rose bushes are planted in huge flat fields at the foot of ,\ I I i, . I I 1 I I nternational Trade Theory LEARNING OBJECTIVES: After 'IOU have read this chapter Understand you should: why nations trade with each other. Be familiar with the different theories explaining trade flows between nations. Understand why many economists believe that unrestricted free trade between nations will,raise the economic welfare of countries that participate in a free trade system. Be familiar with the arguments of those who maintain that government can playa proactive role in promoting national competitive advantage in certain industries. Understand the important implications holds for business practice. that international trade theory minimum wage. The farm also provides her with health care and a pension. By employing women such as Maria, the industry has fostered a social revolution in which mothers and wives have more control over their family's spending, especially on schooling for their children. For all of the benefits that roses have bought to Ecuador, where the gross national income per capita is only $1,080 a year, the industry has come......

Words: 2240 - Pages: 9

Premium Essay

Impact of Protectionism Trade Policy on Trade

... A Report On “Impact of protectionist trade policy on the domestic industry and economy” Course Name International Economics Course Code FIN: 2210 Submitted To: Shaikh Masrick Hasan Lecturer Department of Finance Jagannath University Submitted By: Sohel Rana On behalf of Group-06 2nd Year 2nd Semester, 6th Batch Department of Finance Jagannath University Date of Submission: 22-02-2014 Group Members SL. NO. | NAME | ID NO. | 1 | SOHEL RANA | B 110203076 | 2 | NURNOBY RAHMAN | 115234 | 3 | UZZWAL HALDER | B 110203046 | 4 | IMAM HOSSAIN | B 110203026 | 5 | FARHANA BHUIYAN | B 110203106 | 6 | SUMAIYA YASMIN | B 110203104 | 7 | HAFIZUR RAHMAN | B 110203025 | 8 | FATEMA AKTER | B 110203006 | 9 | KHALILUR RAHMAN | B 110203055 | 10 | TOHIDUL ISLAM | B 110203024 | Letter of Transmittal Shaikh Masrick Hasan Course Coordinator Money and Banking Dept. of Finance Jagannath University Subject: To submit a report on “Impact of protectionist trade policy on the domestic industry and economy” Sir With a great respect, we are informing you that we have prepared a report on “Impact of protectionist trade policy on domestic industry and economy.” We feel great pleasure for submitting this report to you, which......

Words: 5333 - Pages: 22

Premium Essay

White Australia Policy

...has been shaped by two disparate ideologies, the initial white Australia policy, and the current policy of multiculturalism. The white Australia policy comprised legislation designed to safeguard Australia as a nation reserved for white residents, whereas multiculturalism is a process that constructively integrates cultural diversity into the national identity. This essay argues that the white Australia policy has had a significant impact on Australian culture and continues to overshadow the success of multiculturalism. First, this essay explains the motivations and legislations that established the white Australia policy, and the subsequent effects on early Australian society. Next, it discusses the discarding of the white Australia policy and the implementation of multiculturalism. Finally, this essay assesses the impact of the white Australia policy on contemporary Australian culture. During the late 1800s there was public and political discussion as to Australia’s future as a white nation (Bulletin 1886). This was prompted by the frequent racial tension and sporadic violence between white settlers and Chinese immigrants. The 1901 parliamentary debates concerning immigration show that although a belief in white racial supremacy was predominant, commercial concerns and fears of invasion were also involved. For example, some members extolled the superiority of a ‘snow-white’ Australia (Commonwealth of Australia 1901 pp. 4626, 4648, 4666). Whereas, other members protested......

Words: 2845 - Pages: 12

Premium Essay

Bangladesh Trade Policy

...1 POLICY REFORMS AND TRADE LIBERALIZATION IN BANGLADESH I. MAIN FEATURES OF BANGLADESH ECONOMY GDP and its composition. During the fiscal year 2002-2003, the GDP of Bangladesh stood at around $52 billion. The growth rate of GDP has picked up in recent years. Thus, during 1980-90, it grew annually at 3.7 per cent on average, barely above the population growth rate. On the other hand, it approached an average annual rate of 5 per cent during 1991-2002. The relative shares of consumption and savings in the GDP witnessed modest changes during this period. In 1991, consumption accounted for over 86 per cent of the GDP, while in 2002 it fell to nearly 82 per cent. Correspondingly, the shares of savings in GDP rose by a quarter over this period. During the same period, the investment/GDP ratio increased from 17 per cent to 23 per cent. Within this, the ration of public investment to GDP remained stagnant around 7 per cent, while that of private investment increased from 10 per cent to 17 per cent of GDP. Changing sectoral distribution. As indicated by changes in the sectoral distribution of the GDP, the economy of Bangladesh underwent important structural transformations over the last three decades. At independence in 1971, agriculture was the dominant sectors accounting for over 55 per cent of the total GDP. The industrial sector was small, contributing less than 10 per cent of the GDP. The services including transportation and power accounted for the rest of the GDP.......

Words: 6665 - Pages: 27

Premium Essay

Trade Policies by Government

...apply trade policies yet they know that gains from trade is enhanced by free flow of goods and services into a nation? To protect domestic industry during its infancy period The government puts up policy for the benefit of the local industry. It protects the infant industries until when they can meet foreign competition, attain economies of scale and reflect the nation’s long-run comparative advantage. However, a nation may have potential comparative advantage in a commodity, but because it lacks technology and the initial small level of output, the industry will not be in a position to successfully compete with foreign firms unless government protects it. To protect labor intensive industries who employ unskilled workers In industrial countries protection to labor intensive industries is very crucial, as the low–wage workers would have great difficulty in seeking alternative employment if they lost their present jobs. To encourage the industry and confer greater external economies on society External economies refers to benefits to society at large, for instance, by training workers who then leave to work in other industries. In that case, there is likely to be underinvestment in the industry, because the industry does not receive the full benefit from its investment. Thereby, restriction of imports is put in place to encourage the industry and confer greater external economies on the society. To protect industries important to the national defense Trade......

Words: 897 - Pages: 4

Premium Essay

Eu & Tr Trade and Policies

...EU & Turkey, Trade and Policies, Summary Chapter 1: The formation of the European Union United Europe has been the vision of many statesmen since the Roman Empire, and more recently of philosophers/politicians (17th century (). Winston Churchill; spoke of European Federation (1951) but true fathers of borderless continent were: Robert Schuman and Jean Monnet (supported/complemented by Paul Henri Spaak and Jacques Delores). Why was Europe created: They wanted to avoid repetition of wars between Europeans (especially avoid another conflict between France and Germany). Germany wasn’t punished because Americans learned from WWI. To avoid repetitions politicians/intellectuals came up with free commerce, democracy, and individual freedoms. The sincere collaboration (early 1950s until today) made peaceful Europe possible. They also wanted to rebuild Europe equitably after WWII, to share vital resources to mutual benefit, to counter threat of communism, to leverage with USSR and US, and eliminate acute nationalism and racism. The importance of the EU to Turkey: 1. number 1 trading partner for Turkey 2. one of 4 world’s major powers 3. Turkey aspires to join the EU 4. Turkey needs Europe to be democratic 1951 – Paris (ECSC) 1st form of Europe-wide collaboration among states was ECSC (European Coal & Steel Community) in 1951 and was developed in free trade and commerce within the newly formed EEC (European Economic Community). ECSC was created......

Words: 6207 - Pages: 25

Premium Essay

Trade Policy

...Vidit Shah OVER VIEW  Composition & Direction of Foreign Trade  Foreign Trade Policy  India’s Foreign Trade Policy  Foreign Trade Policy 2015 – 2020 3 05/01/2016 Composition Of Foreign Trade • Composition of foreign trade means major commodity or sectors in which India is doing export and import. India is a very old participant in world trade. Its participation have been promoted by the opening of Suez Canal and speedy development of the ship building industry supplemented by the spread of industrial revolution in Europe and fast expansion of Indian railways. Composition Export Fuels, Capital Goods, Chemicals, Food Grains, Petroleum Products, Capital Goods, Pearls and Precious Gems, Iron and Steel Fertilizers, Edible Oil 05/01/2016 Import Manufactured goods textiles , Gems and Jewellery, Handicraft, Light machinery etc. 4 IMPORTS  It refers to goods that we buy from other countries.  At times of independence India was an agrarian economy.  Partition of our country has brought food shortage because wheat growing regions vested with Pakistan.  Hence India need to import in large quantities, food , cotton jute. Etc  With development of economy over these days, there occurred changes in composition of imports. The development required setting up of industries, modernization of agriculture etc.  Capital goods like machinery, chemicals, fertilizers ,metals, minerals petroleum products etc. are imported . ...

Words: 1778 - Pages: 8

Premium Essay

White Australia Policy

...The Immigration Restriction Act 1901 (White Australia Policy) was one of the world's oddest race-based government policies in that much of the impetus for it came from white men who liked and respected non-white races to the point they felt inferior by comparison. In addition, many of the opponents of the policy said extremely racist things when arguing for its abolition. Reflecting the nuanced psychological issues associated with it, the Act instructed migration officials to use a dictation test that allowed non-whites to be excluded without publicly acknowledging that they were being targeted for exclusion. In other words, it was widely understood to be an Act designed to exclude non-whites but officially it wasn’t. The reluctance to officially recognise the Immigration Restriction Act as a policy to exclude non-whites could be partly explained as flowing from the popularity of non-whites in Australia for much of the 19th century. Ironically, this could be seen as a legacy of Australia's penal foundations. Specifically, in 1820, nearly 80 per cent of the colonial population was a Convict, Emancipist or of Convict descent. As a consequence, the majority of the population were second class-citizens and the exclusive free settlers were the disliked minority. Race was insignificant compared to the stigma of criminality and the majority of the population shared that stigma together. An English newspaper of the time wrote: "Historically, the greatest rift has been......

Words: 300 - Pages: 2

Free Essay

Australia Foreign Policy

...Australia seems to be stuck between its economic interests, which lie with China and Asia, and traditional ties with the America. General Peter Leahy warns of US-China collision FORMER Australian army chief Peter Leahy has urged Australia to tread warily in expanding its military ties with the US to ensure they do not "lead to increased tension and even conflict" with China. [pic] the Australian, 12 April, 2012 Warning against becoming "caught" between the US as its security guarantor and China as its economic underwriter, Professor Leahy has welcomed Australia's decision to play host to US marines, but noted that "too much of a good thing" could put unnecessary pressure on China. His comments, in an opinion piece in today's edition of The Australian, came as the China Daily state-owned newspaper hit out at Australia's expanding links with the US, warning they could spark a collapse of trust and endanger Sino-Australian economic ties. In a strongly worded editorial, the newspaper yesterday also warned that the Gillard government's decision last month to ban Chinese communications giant Huawei from bidding for work in the $36 billion National Broadband Network had created the perception in Beijing that Australia wanted to obstruct Chinese companies. But, as US Secretary of State Hillary Clinton insisted her nation wanted close and peaceful relations with Beijing, Julia Gillard rejected the Chinese newspaper's suggestion that Australian foreign policy was...

Words: 1034 - Pages: 5

Premium Essay

Trade Policy

...Trade Policy Reforms in India Geethanjali Nataraj NCAER, New Delhi For the ICRIER-SABER workshop, 29-30 June p, 2009, New Delhi. Trade Policy in India • Trade Reforms form the crux of the economic reforms in India. • Export Promotion has been and continues to be a major thrust of India’s trade policy • Accordingly, policies have been aimed at creating a friendly environment by eliminating redundant procedures, increasing transparency by simplifying the processes involved in the export sector and moving away from quantitative restrictions, thereby improving the competitiveness of Indian industry and g p reducing the anti-export bias. • Steps have also been taken to promote exports through g g multilateral and bilateral initiatives and giving several incentives to exports to cope with all uncertainties at the global level. Features of Trade Policy Reform in India • • • • • Free imports and Exports Rationalization of tariff structure/reducing tariffs Decanalisation Liberalization of the exchange rate regime. Setting up of trading houses, SEZ’s and Export houses SEZ s promotion industrial parks. • Various exemptions under the EXIM policies to boost exports and imports and make the trade policy regime transparent and less cumbersome. p Towards a more open economy 1990 91 1990-91 Peak Import duties ( Manufactures ) Import Controls Trade goods)/GDP ratio ( %) Software exports ( & billion) Worker remittances ( $ billion) FDI ($ billion) g y Foreign currency reserves......

Words: 1174 - Pages: 5