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Features and role of FTA's - Coggle Diagram
Features and role of FTA's
ASEAN-Australian-New-Zealand-Free-Trade-Agreement (AANZFTA)
Australia's first multi-country FTA
Most comprehensive trade agreement ASEAN has ever negotiated
First time ASEAN embarked on FTA negotiations covering all sectors, including goods, services, investment and intellectual property simultaneously
January 1st 2010
Australia-New-Zealand-Closer-Economic-Relations-Trade-Agreement (ANZCERTA)
One of the most comprehensive bilateral FTA's in existance
Covers all trans-Tasman trade in goods, including agricultural products, and first to include free services
All tariffs and quantitative import or export taxes on trade in goods are prohibited under ANZCERTA
Contains measures to minimize market distortions in trade goods, through domestic industry assistance and export subsidies and incentives
Mutual recognition of goods and occupations removes technical barriers to trade and impediments to the movement of skilled personal. Workers moving between countries don't need to resit an exam or the like.
The harmonisation of trans-Tasman food standards through ANZFA (ANZ food authority) Agreement of 1995 means lower compliance costs for industry, fewer regulatory barriers and more customer choice.
The two way investment between Australia and New Zealand is worth more than $130 billion (2014)
Benefits and challenges to Australian owned businesses because of FTA's
Challenges
Increased competition in the home market from imports which are cheaper than Australian made products
Reduction of market share in Australia from competition
Benefits
FTA's help Australian businesses grow and attract investment.
Expand export markets for Australian businesses
Reduce imported input costs
Help Australian businesses
FTA's are designed to reduce the barriers to trade between two or more countries, which are in place to help and protect local markets and industries
Barriers to trade include tariffs, quotas and embargoes.
It allows a company to export their produce to other countries and sell it at a similar price to local companies, therefore forcing local businesses to become more efficient to keep up