The Republic Of Korea United States

Published Date: 02 Nov 2017

Abstract

Australia is stable, democratic society and culturally diverse economy which is among the strongest in the world. Australia’s economy is considered to be the strongest of the advanced economies in the OECD (Organization for Economic Co-operation and Development). As per 2011, it is the world’s thirteenth largest economy, with an commitment of ongoing economic reform and global engagement that would emphasize free trade and investment.

They are amongst the world’s biggest exporters of energy, agricultural commodities and minerals. It has developed competitive edge for the goods and services, which is including high-technological goods such as scientific and medical equipment, and also in processed food and wine. Main services exporting include tourism and education, and also financial and professional services. Selling of various services by Australian companies functioning overseas are providing a major contribution to their economy. Australia’s biggest trading partners are China, Japan, the Republic of Korea, United States, United Kingdom, Singapore, New Zealand and India. Australia’s trade success is now reflecting the country’s strong system of education, stable institution, skilled and flexible workforce, and rich natural resources.

The Australian administration helps Australian business to right of entry into export markets, through organizations such as the Export Finance and Insurance Corporation (EFIC) and Australian Trade Commission (Austrade). Austrade is the Australian Government’s trading, investing and educational promotion organization. Australia has an active role in a wide range of global and regional institutions, including G20 (Group of 20 major economies), the United Nations (UN), East Asia Summit (EAS), World Trade Organization (WTO), Asia–Pacific Economic Cooperation (APEC), Indian Ocean Rim Association for Regional Cooperation, Commonwealth, Organization for Economic Co-operation and Development (OECD), Pacific Islands Forum (PIF), Asia–Europe Meeting, Forum for East Asia – Latin America Cooperation (FEALAC).

Australian Minister Dr Craig Emerson, for Trade and Competitiveness, issued a statement on trade policy in Australia in April 2011. The statement presented five principles that guide our trade policy which are; Unilateralism, Non-discrimination, Separation, Transparency, Indivisibility of trade policy and economic reform.

The primary products of the Australia being imported and exported are listed below.

Primary exports - commodities: Coal, gold, iron ore, meat, alumina, wool, wheat, machinery and transport equipments.

Primary imports - commodities: Machinery and transport equipment, telecommunication equipment and parts; computers and office machines, crude oil & petroleum products

Australia and India have had few reasons in the past to develop systematic and significant levels of economic engagement. Currently, the movement of FDI between these two countries is still not very large but has a strong potential to grow over the short to medium term. The main items of import from Australia are coal, copper and copper ores, wool, non-monetary gold, fresh vegetables, cotton, silver, zinc, platinum, and aluminum.

Joint commissions like the India-Australia Business Council and Australia-India Business Council (AIBC) have very much promoted Indian exports to Australia in a big way. The major items that constitute Indian exports to Australia are Gems, pearls, and jewellery, Chemicals and its by products, Leather, leather goods, footwear, and travel goods, Agricultural products, Engineering goods and manufactures, Textile, clothing, and make up.

FTA is a trading agreement performed between any two countries providing the grant to their members of an exclusive favor & is a common type of regional trading agreements is basically what FTA is all about. FTA violates the Most Favored Nation (MFN) principles of being multilateral trade system on the other hand the WTO regulations is been accepted when following requirements are been followed.

Tariffs and other restrictions shall be lifted principally within 10 years.

All the trades shall be applied. No specific trade sector shall be excluded.

Tariffs and other restrictions for non-members shall be the same or diminished than those made before agreement.

Summary of the Project

Australia is stable, democratic society and culturally diverse economy which is among the strongest in the world. With a population which is more than 22.5 million, the entire continent is governing only one nation i.e. Australia. It’s the island and 6th largest nation in the world in geographical area which is also the biggest island, almost about size of main land US and 1 and 1/2 times of Europe’s size.

Australia’s economy is considered to be the strongest of the advanced economies in the OECD (Organization for Economic Co-operation and Development). As per 2011, it is the world’s thirteenth largest economy, with an commitment of ongoing economic reform and global engagement that would emphasize free trade and investment.

With low unemployment, inflation and government debt, the production of workforce is highly skilled because of the education system which is world- class , and which is strongest link with the rapid growing region in the world, the Asia–Pacific and Australian economy is set to prosper in near future.

The focus of Australia’s foreign & trade policy is to promote its security and long-term prosperity. In a rapidly changing environment it seeks to protect and advance Australia’s national interests, along with supporting a stable global order. Australia has been involved in the global efforts for building peace & security for decades, like it has been in promoting investment liberalization & global trade.

Trading is basically important to Australian economy. They are amongst the world’s biggest exporters of energy, agricultural commodities and minerals. It has developed competitive edge for the goods and services, which is including high-technological goods such as scientific and medical equipment, and also in processed food and wine. Main services exporting include tourism and education, and also financial and professional services. Selling of various services by Australian companies functioning overseas are providing a major contribution to their economy. Australia’s biggest trading partners are China, Japan, the Republic of Korea, United States, United Kingdom, Singapore, New Zealand and India. Australia’s trade success is now reflecting the country’s strong system of education, stable institution, skilled and flexible workforce, and rich natural resources.

Trade liberalization & economic reforms has been in heart of Australia’s Government policies for decades. Currently, Australia is a open market with very less restrictions on imports of the goods and services. While this process of opening up have been increasing productivity, stimulated growth and had made economy more dynamic and flexible. They have been proving boost with trade liberalizations –bilaterally, multilaterally and unilaterally. It’s is also working to give the strength to international economic collaboration in view to reduce the risks facing the world’s economy & to bolster growth. They are playing an active role into APEC, the G20, World Trade Organization and other trade forums. Australia have been also negotiating bilateral & regional agreements with a varied range of countries for strengthening trading and investment flows.

By the end of year 2012, Australia will be having experience more than 20 years of continuing economic growth, averaging 3.5% a year. Australian positive outlook is underpinned with the record pipeline of resource investments and solid growth in this commodity exports & strong fiscal position.

Australia is welcoming foreign investments & recognizing the main role it is playing in bolstering their economic growth, competitiveness and employment. Foreign investments are strengthening their links into regional & around the world’s supply chains. A vigorous strategic location, economy, track records of innovation are making Australia an eye-catching location for overseas investors. Stock of distant investment in the country was $2.0 trillion in 2011. A huge number of distant companies are register in Australia. Many having developing close links with home firms, which have been generating cooperation on R&D and resulted in Australian company becoming haggard into global and local supply chains.

The Australian administration helps Australian business to right of entry into export markets, through organizations such as the Export Finance and Insurance Corporation (EFIC) and Australian Trade Commission (Austrade). Austrade is the Australian Government’s trading, investing and educational promotion organization. It has been a widespread global network casing 102 locations in 55 different countries. EFIC is Australian Government’s export credit group. Its provide insurance solutions and finance to help Australian organizations to overcome financial barrier when seeking to export.

Australia is strongly committed to the rest of the world, not only because many people come from many parts of the world, but also the recognition that the long prosperity and security are closely linked to overall participation.

Australia was one of the founders of the United Nations and is the largest contributor at 12 of the regular budget and peacekeeping United Nations. Is firmly committed to build an international order based on the progress and protecting the interests of all nations and peoples. Australia has an active role in a wide range of global and regional institutions, including G20 (Group of 20 major economies), the United Nations (UN), East Asia Summit (EAS), World Trade Organization (WTO), Asia–Pacific Economic Cooperation (APEC), Indian Ocean Rim Association for Regional Cooperation, Commonwealth, Organization for Economic Co-operation and Development (OECD), Pacific Islands Forum (PIF), Asia–Europe Meeting, Forum for East Asia – Latin America Cooperation (FEALAC).

Australia has important bilateral relations and lasting ties with Indonesia, and strong ties with other ASEAN member countries in Southeast Asia. Australia also has close relationships with the key northern states of Asia: China, Japan and Korea, which are also our major markets.

Australia has important people in interpersonal relationships and increased trade and investment in the strategic importance of the Middle East. Africa, Australia has long bilateral relations, particularly with other Commonwealth nations and increased interest in trade and investment, particularly in the resource sector.

Australia had given an insignificant contribution in the Group of 20 major economics. The Group of Twenty (G-20), the premier forum in international economic cooperation with members from 19 countries and the European Union. The leaders of the finance ministers of the G-20 and the central bank governors meet regularly to address the economic and financial world.

The work of the G-20 to strengthen the global economy, reform of international financial institutions and improving financial regulation. In 2012, the G-20 has continued to focus on measures to support and sustain the global economic recovery, with a strong emphasis on the growth of employment and the promotion of trade.

Australia is a strong supporter of the attention of the G-20 on the promotion of free trade and the reduction of protectionism. Australia has strong financial sector, with national banks to perform well relative to their international counterparts during the global economic crisis. Our regulatory experience during this period is a useful contribution to the discussion in the G-20 forum to guide the development of better international financial standards. Australia is playing a major role in the work of a number of important development priorities, such as improving food security, improve access to financial services' growth with resilience "low growth, including encouraging green. Australia is actively involved in the agenda of the G-20 agriculture, focusing on the markets for agricultural products and agricultural productivity in the context of the global response to food security, including the G-20 issued by the Market Information System Agricultural Forum and rapid response. In 2011, Australia and France have jointly organized a seminar on the G20 "Re-energize global agricultural productivity," which helped to cope with the global decline in agricultural yields and reduce the gap between developed countries and development of national productivity.

The Asia-Pacific Economic Cooperation (APEC) was established in 1989. Its main objective is to promote economic prosperity & growth in the region, with a vision to create a regional economy without any interruption. APEC is pursuing these objectives through the trade facilitation, liberalization of trade and investment, and economic and technical cooperation. APEC aims are to strengthen regional economic integration through removing barriers to trade and investment, "border", improving the connectivity of the supply chain "at the border" along with improving the environment of businesses "behind the border. "He strives to improve the operating environment for businesses by decreasing the cost of cross-border trade and improving access to business information and simplify the regulatory and administrative processes. ABAC comprises up to three members of each of the 21 member countries, business representatives appointed by the APEC leaders. APEC basis of operations is open dialogue and non-binding commitments. Decisions within APEC are to be reached by commitments and consensuses are considered on a voluntary basis.

Australia APEC Australia was a founding member of APEC in 1989 and has played an active role in helping APEC meet its current state. Australia has contributed to advancing the work of the APEC current core of structural reform, regional economic integration, and targeted training through participation in more than 30 APEC fora (including committees, groups working sub-forums). Australia hosted APEC in 2007. It was important in the country and the region to strive towards achieving Bogor Goals of free investment and trade in Asia-Pacific region in 2020.

OECD, located in Paris, was founded in 1961. Since 1971 Australia has been the active member. The Organization provides independent analysis and evidence-based to help improve the economic well-being and social development of citizens in member countries and in the world. The OECD has no executive powers or financial, but it is based on persuasion and consensus, and derives its importance for the members of the high quality of analysis.

Today, Australia continues to provide valuable evidence-based OECD cross-country analysis of economic and social policies and guidance. The organization is an important source of detailed analysis of a wide range of topics of interest to Australia, including trade, environment, agriculture, climate change, global food security. We are actively involved in extensive programs of work of the OECD in major economic policy issues, labor market issues, statistics, digital and cyberspace, education, health, governance, migration and energy.

To achieve this objective, policies should be supported and complemented by regional and global efforts coordinated to maximize competition. Another lesson is the importance of free trade as a stimulant without a budget and production jobs over the long term. We work with the OECD to highlight the role of science, innovation and technology to contribute to productivity, competitiveness and low-carbon, and the importance of market mechanisms in the achieving cost lower transition.

Australian Minister Dr Craig Emerson, for Trade and Competitiveness, issued a statement on trade policy in Australia in April 2011. The statement presented five principles that guide our trade policy:

Unilateralism: In-operation, trade-related economic reform must take place in Australia without having to wait for various countries to reform their trading policies.

Non-discrimination: a discounted rate offered at each country has to offer.

Separation: foreign policy considerations should not be mixed with trade policy.

Transparency: "The public must be informed about the features and growth of international trade negotiations.

The indivisibility of trade policy & economic reform - trade policy and microeconomic policy are one the best trade policy is that economic reform.

The primary products of Australian nation being exported and imported are listed below.

Primary exports - Coal, gold, iron ore, meat, alumina, wool, wheat, machinery and transport equipments.

Primary imports - Machinery and transport equipment, telecommunication equipment and parts; computers and office machines, crude oil & petroleum products

The major trading in exports from Australian nation are done in the industries like Food, beverages and tobacco, Textile, clothing and footwear, Wood and paper products, printing, publishing and recorded media, Petroleum, coal and chemical products, Non-metal mineral products, Metal products, Machinery and equipment.

With this major exports and imports the Australian economy is also being growing and developing with the help of the industries that are well set in the different parts of the country like food processing, textile industry, motor vehicles, chemical industry, agricultural industry, horticulture, viticulture, live stocks, wool, cotton, coal & minerals and gold.

Until the mid-1980s, Australia textile industry had a large turn over. The decline had been witnessed till 2010. Since the 1980s, tariffs have steadily been brought down which resulted the cut of 17.5% to 10% on clothing, and 7.5–10% to 5% for footwear and other textiles products. As of 2012, four companies manufacture cars in Australia: GM, Holden, Ford, Toyota and Tomcar, Mitsubishi Motors Australia ceased production in March 2008. In return, Holden plans to inject over $1 billion into car manufacturing in Australia. Similarly, Agriculture and the sectors closely related with agriculture sector earn $155 bn-a-year for a 12 per cent share of Gross Domestic Product. Australian farmers own 135,879 farms, covering 60% of Australia’s farms. Agriculture and its closely related sectors earn $155 billion-a-year for a 12% share of GDP. Australian farmers and graziers own 135,996 farms, covering 61% of Australia’s landmass.

Many mining companies are into initial processing of the raw materials. Australia's agriculture takes help from the chemical industry. Southern island Tasmania produces 40 percent of the world’s raw materials for narcotic; some of these are locally converted into codeine and other pharmac by Tasmanian Alkaloids which is owned by the MNC like Johnson & Johnson.

Cereals, oilseeds and grain legumes are produced on a large scale in Australia for human consumption and livestock feed. In terms of the area and volume wheat is one of the greatest productions; Sugarcane is grown in tropical area, and is the unsubsidized industry is struggling to contend with the huge Brazilian sugarcane industry. The horticulture industry has traditionally provided Australians with all their fresh fruit and vegetables needs, with a smaller export industry. However, loosened border controls and increasing importers have threatened local industries. Australia has a large wine industry, and the value of wine exports surpassed A$2.3 billion in 2002-2003.Wine regions include the Barossa Valley in South Australia, Sunraysia in Victoria, Margaret River in Western Australia and the Hunter Valley in New South Wales.

Coal in Australia is mined primarily in Queensland, New South Wales and Victoria. It is used to generate electricity and 54% of the coal mined in Australia is exported, mostly to eastern Asia. Two forms of coal are mined in Australia, depending on the region: high-quality bituminous coal (black coal) and lower-quality lignite (brown coal). Australia is the fourth largest producer of coal, and by proportion exported, Australia is the largest exporter of coal in the world, with most of the exports going to Japan. Coal exports are Australia’s second-largest source of export income, after iron ore exports.

Gold has consistently been one of Australia’s major exports since the modern gold rush in the 1970s and 1980s. Gold exports, valued at A$15.0 billion, were Australia’s third ranked export commodity in 2010 after iron ore and coal. This represented 6.5 per cent of Australia’s total merchandise exports. Some countries have strong demand for jewellery (particularly India and other Asian countries), some have demand for gold for financial purposes (such as the United Kingdom and China), and some countries require gold for use in industrial applications.

With the industries and the products the Australia’s total trade in goods and services value increased 9.9% to 608.2 billion. In volume terms, the total trade increased 5.1% in 2011 compared to 2010. While the total trade recorded the trade surplus of $18.3 billion in 2011, up $3.1 billion on the surplus of $15.3 billion in 2010.

With the trade increase the value of exports increased 10.2% to $313.3 billion, since 2006, export value have increased by an average of 8.0% per annum. But the volume decreased 1.3% average rate of 3.0% per annum since 2006.

The value of imports increased 9.6% to $294.9 billion since 2006, import value have increased by an average of 4.9% per annum. And the volume increased 11.2% which has raised by 6.6% per annum since 2006.

In 2010-11, the balance of trade recorded a record surplus of $20.9 billion, a turnaround of $25.5 billion on the deficit of $4.6 billion recorded in 2009-10.

Australia’s goods and services exports grew 17.3 per cent to $297.5 billion in 2010-11. Export volumes grew 0.3 per cent while export prices rose 17.0 per cent. Exports of Primary products rose 31.1 per cent with strong rises in Minerals and Fuels on the back of higher commodity prices. Manufactures exports rose 5.7 per cent (with strong growth in STM exports) while Other goods (mainly Gold and confidential items of trade) fell 1.0 per cent. Services exports declined 2.8 per cent.

In 2010-11, Australia’s goods and services imports rose 7.1 per cent to $276.6 billion. Import volumes rose 10.4 per cent while import prices decreased 3.0 per cent.

The relative price of our exports in terms of our imports is reflected in Australia’s terms of trade, which rose by 20.6 per cent in 2010-11.

In 2011, exports of Primary products increased 18.1 per cent to $196.3 billion (mainly reflecting increases in energy and iron ore prices), Manufactures rose 2.9 per cent to $41.5 billion, Other goods (mainly Gold) exports fell 2.3 per cent to $24.0 billion and exports of Services fell 3.4 per cent to $50.1 billion.

Iron ore & concentrates ($64.1 billion, accounting for 20.5 per cent of total exports), Coal ($46.8 billion, accounting for 14.9 per cent of total exports), Gold ($16.0 billion, accounting for 5.1 per cent of total exports) and Education-related travel services ($15.1 billion, accounting for 4.8 per cent of total exports) were Australia’s largest individual export items.

Imports of Primary products increased 25.2 per cent to $52.7 billion in 2011 (reflecting increases in energy products, such as crude petroleum), Manufactures rose 3.8 per cent to $160.8 billion, Other goods (mainly Gold and Confidential items of trade) increased 3.9 per cent to $13.6 billion and imports of Services rose

5.9 per cent to $59.0 billion.

The top ten export partners of the Australia are China, Japan, S. Korea, India, USA, UK, N.Zealand, Singapore, Taiwan, and Malaysia. China is Australia’s largest export market, accounting for 24.6% of total exports in the year 2011. It raised by 19.9%. The export accounted for $77.1 billion. It was followed by Japan with the volume of $52.4 billion with the increase of 14.7%. And the third largest export was to S. Korea which rose by 11.8%.

The largest trading partner of Australia is China. China possesses of the richest foreign reserves in the world, and Australian mining companies have utilized this financial capital to invest in energy and mineral exploration for the purpose of exports to meet China's appeased hunger for economic development, energy demands. Japan is the second in Australia's main economic partners. The commercial links to other spheres include culture, tourism, defense and scientific cooperation. A Free Trade Agreement between Australia and SOUTH KOREA offers great opportunities to strengthen our highly growing bilateral trade and investment relationship, so that both countries can get gains through closer economic integration. India is driving towards Australia for biggest export opportunities which underlines the importance of India as an export and investment destination for Australia. Australia offers all the services to India’s economic boom sectors like education, tourism, financial services & insurance and other professional skills. In the sector of mining include the minerals and fuels, energy investment .Australia’s leading merchandise exports include Copper Ore, Coal, Gold, Wool, Horticulture; etc. this makes India the fastest growing export market for Australia.

The FTA with US secures important Australian interests free in sectors like health Benefits Scheme, FDI screening, the audio and visual effect sector and food safety regimes.The UK is the 2nd largest source of total FDI in Australia. The total of UK FDI in Australia was A$473 bn. The wine industry has become an impulsion for Australia's trade with the UK. The UK, currently, is the 2nd wine export destination. The other opportunity areas for Australian businesses are fresh produces like premium fruit, & meat.

Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) has increased the business bilaterally by seven-fold since it was signed in 1983. The Singapore-Australia Free Trade Agreement (SAFTA), which allows Australia to go further than the World Trade Organization. SAFTA is in guarantees liberal access for Australian service providers such as legal, financial & educational services exporters. The Taiwan government had declared a series of stimulus packages since 2008. It included supports for public infrastructure construction projects, urban renewal projects, labour support programs.

With the exports china also topped- the import charts with the Australia. It raised by 7.4% accounting for 14.9% i.e $43.9 billion of the total imports of Australia. China was followed by the United States with $39.3 billion with the increase of 11.5%. Though Japan is the third in the import list with the value of $20.1 billion but its net import reduced by 1.6%. The main top 10 Import partners of Australia are China, US, Japan, Singapore, Germany, UK, Thailand, Malaysia, New Zealand and S.Korea.

The total imports from china by Australia were US$1.584 billion, up 2.3 percent year on year. The US tariffs that averaged 4.3 percent were eliminated on more than 99% of the tariff lines for U.S. manufactured goods exports to Australia. These was mainly because of the FTA between the countries. All U.S. farm exports will go duty-free to Australia, benefiting many sectors such as processed foods, fruits and vegetables, corn, and soybeans. The FTA also makes advances in e-commerce and pharmaceutical market access. On the second hand Australia is Japan's tenth-ranked export destination and shares 2.4% of Japan's total exports. It ranks third among Japan's total imports with a share of 4.6%.

Though only slightly larger than Sydney in terms of population and less than a quarter of the size of the Sydney metropolitan area, Singapore has successfully positioned itself as a financial and trading centre for Asia and ‘punches above its weight’ in many fields. While Electronics, pharmaceuticals, financial services, logistics and tourism are major exports to Australia from Singapore. Overall, Germany was Australia's tenth-largest merchandise trading partner in 2009-10. Total two-way merchandise trade was valued at over A$12.4 billion, of which A$10.7 billion were imports from Germany. Germany is ranked Australia's sixth-largest source of merchandise imports (mainly cars) and is the largest source of imports from Europe. And Thailand exports food stuffs to Australia such as canned tuna, rice, frozen shrimp, pet food and tropical fruit. Thailand also exports air conditioners, automobile components and miscellaneous minerals and electronics.

Malaysia’s and Australia’s relationship includes bilateral defence cooperation through the Malaysia-Australia Joint Defence Program and the Five Power Defence Arrangements. The services sector represents a huge opportunity for growth in our bilateral trading relationship.  As economies modernize, services account for an increasing proportion of economic activity.  Services account for around 70 per cent of Australia’s GDP and around 60 per cent of Malaysia’s GDP. New Zealand's economy has been helped by strong economic relations with Australia. Australia and New Zealand are partners in "Closer Economic Relations" (CER), which allows for free trade in goods and most services. A Free Trade Agreement (FTA) between Korea and Australia is expected to be completed early in 2012. Currently, all oranges entering South Korea are subject to a 50 per cent tariff regardless of origin. Imports of mandarins are subject to a tariff of 144 per cent, lemon and grapefruit tariffs are currently 30 per cent.

In 2011, exports of Primary products increased 18.1 per cent to $196.3 billion (mainly reflecting increases in energy and iron ore prices), Manufactures rose 2.9 per cent to $41.5 billion, Other goods (mainly Gold) exports fell 2.3 per cent to $24.0 billion and exports of Services fell 3.4 per cent to $50.1 billion.

Imports of Primary products increased 25.2 per cent to $52.7 billion in 2011 (reflecting increases in energy products, such as crude petroleum), Manufactures rose 3.8 per cent to $160.8 billion, other goods (mainly Gold and Confidential items of trade) increased 3.9 per cent to $13.6 billion and imports of Services rose

5.9 per cent to $59.0 billion.

Australia and India have had few reasons in the past to develop systematic and significant levels of economic engagement. This was due to very different positions they have held in the world-system since the Second World War. Both countries developed similar economic policy regimes that were essentially state-led nationalist projects of economic development with concomitant policies of import-substitution, local industry-subsidization, highly-regulated financial systems, and high tariffs. Currently, the movement of FDI between these two countries is still not very large but has a strong potential to grow over the short to medium term.

Australian exports to India have grown at a steady pace mainly because of the relationship between the two countries have been growing  at a stable rate over some of the last couple of years.

The main items of import from Australia are:

Copper and copper ores

Wool

Non monetary gold

Fresh vegetables

Cotton

Silver, zinc, platinum and aluminium

Coal

An Indian export to Australia has been increased considerably in last few years; still scope for development exists between both countries. The governments of India and Australia are in the process of creating a concentrated effort so to provide full potential reaching of the Indian export to Australia.

Indian Australian trading relationships have never been in such a high peak than it is at present and this has given Indian exports to Australia a major reason to grow. A great many high-level meetings and increased interaction in business and trade flow between the two countries has taken place. 

Joint commissions like the India-Australia Business Council and Australia-India Business Council (AIBC) have very much promoted Indian exports to Australia in a big way. The major items that constitute Indian exports to Australia are:

Gems, and jewellery

Chemicals

Leather, and travel goods

Agricultural products

Engineering goods

Textile, and make up

According to the Australian press there is a shortage of IT professionals in Australia of 35,000.Indian Indian IT companies do prefer America and other European countries to set up offices but it is not that Indian IT exports to Australia have been neglected. The major difficulties faced by Indian IT exporters to Australia are that it is difficult to get work in Australia without reference. This is because a lot of work is given on the basis of references and word of mouth. The governments of both the countries have to see to it that Indian IT exports to Australia continue to gather speed and do not stop. For this to happen, both India and Australia have to make collective efforts. As India and Australia share a strong bilateral relationship which is going back in many decades and the same have given Indian exports in merchandises to Australia major boost. Some of the Indian IT companies which have set up their offices in Australia are:

Infosys

NIIT

TCS

Kale Consultants

Fujitsu

Pentafour

Satyam

Aptech

Polaris

FTA is a trading agreement performed between any two countries providing the grant to their members of an exclusive favor & is a common type of regional trading agreements is basically what FTA is all about. FTA violates the Most Favored Nation (MFN) principles of being multilateral trade system on the other hand the WTO regulations is been accepted when following requirements are been followed.

Tariffs and other restrictions shall be lifted principally within 10 years.

All the trades shall be applied. No specific trade sector shall be excluded.

Tariffs and other restrictions for non-members shall be the same or diminished than those made before agreement.

FTA is showing very different way of depending on the countries involved. An FTA which is made between developed country and the developing country mainly focuses on the free trading of goods and reduction of tariffs.

Experts offer the following explanations:

FTA is majorly trade policy which would be contributing in the improvement of productivity.

Trade and foreign investment which contributes to the growth of any economy; FTA will be helping inducement in the foreign investment.

Countries’ exclusive favour will provide actual benefits, decrease in burden and also incorporations of current concerns.

Enhancing free agreements will be contributing to free market of multilateral parties.

It will be requiring for any non members who is not in free trade agreements to establish measures in regionalism.

Around the world there is always been an expanding networks of FTA. These high quality free trading agreements can play an essential role in the support of world’s trade liberalizations and allowing explicitly under the rules of WTO (world trade organization).

The government will never enter into any trading agreements that are supposed to fall short of benchmarks created by the WTO or any benchmarks that is set by the countries of high-quality, liberalizing trade deals which will be supporting global trade liberalization.

Australia has been currently 6 FTAs which are into force with Thailand, US, New Zealand, Chile, Singapore, and Association of the South East Asian Nations (ASEAN). These countries were covered by FTAs and accounting 28% Australia's trade.

Australia is engaged in eight FTA negotiation currently – 5 of them are into bilateral FTA negotiation: China, Japan, India, Korea, Indonesia; and three of them are plurilateral. These negotiations are covering countries which anticipated an account for 44% of further into Australia's trade. FTAs which are helping Australian exporters’ and access new markets which further expand trade in existing markets.

TABLE OF CONTENT

SR NO.

PARTICULARS

PAGE NO

I

Declaration

I

II

Certificate

II

III

Preface

III

IV

Acknowledgement

IV

V

Abstract

V

VI

Summary of the Project

VIII

1.

Introduction

1

2.

Australia and its trade Partners

5

3.

Global Comparisons

21

4.

Australia and the World

25

5.

Australia’s primary Import/Export and Major Industries

33

6.

India and Australia

42

7.

Free Trade Agreement (FTA)

45

8.