World Collaboration With The World

Published Date: 02 Nov 2017

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:

• United Nations (UN)

• G-20 (Group of 20 major economies)

• World Trade Organization (WTO)

• East Asia Summit (EAS)

• Asia-Pacific Economic Cooperation (APEC)

• Commonwealth

• Organization for Economic Cooperation and Development (OECD)

• Indian Ocean Rim Association for Regional Cooperation

• Pacific Islands Forum (PIF)

• Forum for Asia - Latin America Cooperation (FEALAC)

• Asia-Europe Meeting

Australia has a strong network of alliances and partnerships to protect its international interests, including a long-standing alliance with the United States. The two countries have worked closely over the last century in the promotion of peace and prosperity.

A strange and strong orientation of trade policy in Australia is strengthening its commitment and important countries in the dynamic Asia-Pacific region. As a founding member of APEC and active participant in the EAS, Australia also helps to build institutions that promote regional stability, security and prosperity in the region.

Some of the main objectives of the foreign policy of Australia include:

• The promotion of global and regional security, including reducing the threat of proliferation of weapons of mass destruction, reducing the threat of terrorism and the fight against transnational crime.

• Peacekeeping, as evidenced by the fact that Australia has 65,000 employees contributed more than 50 multilateral peacekeeping UN and other security operations worldwide, including in Timor-Leste Solomon Islands, the Autonomous Region of Bougainville (Papua New Guinea), Lebanon, Sudan, Cyprus and the Republic of Korea

• Looking for a sustainable and balanced growth of the world economy and regional economic integration and the development of market access opportunities for Australian trade and investment.

• Contribute to the effectiveness of the international response to common problems, such as poverty reduction, the fight against climate change and sustainable management of the oceans

• Protection of Australians abroad, particularly in response to major crises.

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.

Stability, security and prosperity in the Pacific are central to the national interest of Australia. Australia has strong bilateral ties with the region, including a strong relationship with Papua New Guinea, and a commitment to regional cooperation and economic development.

Australia continues to build on our strong and longstanding political, commercial, cultural, investment and people to people links Europe to promote mutual interests. We are committed to a broad base, a fruitful partnership with the European Union in relation to contemporary issues of economic management and international trade, climate change, development, security and the strengthening of international governance.

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 connections with the countries of Latin America are expanding in a number of international fora, in particular the WTO. Australia has good relations with the Caribbean countries based on strong historical and cultural foundations.

Australia and the trade

The G20

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 G-20 plays a key role in the response to the global financial crisis of 2008-09. Decisive action and contact G-20 the confidence of consumers and businesses and increased support for the first signs of economic recovery.

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.

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The G-20 are as follows:

Argentina, Australia, Brazil, Canada, China, France, Germany, Indonesia, India, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom

Australia's contribution to the G20

Australia is a strong supporter of the attention of the G-20 on the promotion of free trade and the reduction of protectionism. The free movement of goods and services in a rules-based global trade is essential to maintaining economic prosperity of Australia. G20 Leaders Summit in Los Cabos in June 2014 increased its commitment not to introduce new protectionist measures (first agreed at the Toronto Summit of the G-20 in 2010). Australia has also played an active role in promoting the debate: trade as a source of economic growth and employment, trade liberalization and domestic economic importance of the proper functioning of global value chains for April 2012 Meeting of Ministers of Trade G-20, submitted by Mexico (as chair of the G-20).

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. For example, Australia and France, co-chaired a workshop on "new financial landscape" in July 2011.

Australia actively supports the work of the G-20 on the strengthening of the international monetary system, including its major institutions. In 2012, Australia, with Turkey, is co-Chair of the international financial architecture work plays a key role in building one. More effective and representative of the IMF This is achieved by increasing the IMF's resources, and more effective monitoring, based on the work of the G-20 in 2010 (through a working group co-chaired by Australia and South Africa), quotas and promotion of the reform government.

The G-20 plays a key role in addressing issues that pose a systemic risk globally through better cooperation and coordination development. Development program of the G-20 and the multi-year plan of action adopted at the Seoul Summit in 2010, November. 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 chaired the two elements of "growth with resilience" pillar of the G20 Working Group development with Indonesia in 2011 (in the element of social protection) and Italy (in the element transfers international funds).

In Leaders Summit in Cannes in November 2011, Australia has led the effort to develop a G20 aims to reduce the overall costs of transfers an average of five percent by 2014, which could provide additional funding to a maximum of $ 15 billion annually to the local population. AusAID provided $ 3.5 million to the World Bank set up a remittance multi-donor trust fund.

In June 2012, leaders of the G-20 to Los Cabos, Mexico, the Prime Minister of Australia have joined their counterparts in the United Kingdom and Canada, and President of the World Bank to implement the initiative 100 million AgResults. This initiative is supporting innovative partnerships with private sector in view to improve agricultural productivity and food security in developing countries.

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.

Asia-Pacific Economic Cooperation (APEC)

Overview

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. Savings of APEC members also helps to strengthen the institutional capacity to implement and reap the benefits of reforms in trade and investment. APEC is in support of the multilateral trade negotiations under the WTO, and complements the objectives of the G-20 Framework for sustainable, strong and balanced growth all around the Asia-Pacific.

The private sector is critical to the success of APEC. The APEC Business Advisory Council (ABAC) which was established in 1995 is representing the the interests of businesses in APEC. ABAC comprises up to three members of each of the 21 member countries, business representatives appointed by the APEC leaders. The annual report of the APEC summit and Industry regular dialogues also allow business leaders to communicate with APEC and address main issues affecting businesses among region.

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.

The APEC Secretariat is located in Singapore. Responsible for the coordination, technical support and advice as well as communications, information management, and public extension services. The Secretariat is headed by an Executive Director for a this term appointed for a span of 3 years. The Secretariat also home to the Unit Support APEC policy unit (PSU). Power assists APEC discussions on research, analysis and policy support.

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APEC has 21 member countries:

Australia, Brunei Darussalam, Canada, Chile, China, Hong Kong, China, Indonesia, Mexico, Republic of Korea, Japan, Malaysia, Papua New Guinea, Peru, New Zealand, the Philippines, the Russian Federation Russia, Singapore, Chinese Taipei, Thailand, United States and Vietnam.

Australia in APEC

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.

APEC is an important contribution to the promotion of economic development, free trade and investment, & prosperity in Asia-Pacific region and Australia has benefited from the dynamism of APEC. 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. 21 APEC member economies account for above the half of the global GDP and are home to 2.7 million people or more. APEC members accounted above two-thirds of Australian net trade in goods & services.

OECD

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.

Member countries of the OECD

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Australian participation in OECD Charter, signed in 1948, the OECD established.

Australia joined the OECD in 1971, although the first links were established by members of the Development Assistance Committee (DAC) in 1966. Australia have decided to become full member because we realized the importance of exchanges of views and influence in an organization that was established west of the utmost importance, Economic Advisory Forum.

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.

Australia is participating actively in the work of the OECD in promoting structural reforms to sustain growth and wealth being created. A significant lesson from the global financial crisis has been the need for economic reform to boost the development of economies more flexible and adaptable. 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. Australia supports the growing involvement of the United Nations with emerging and developing its program under a greater commitment, because we believe it will be reflecting the actual reality of the 21st century, is no longer dominated by nation’s global economic influence of the West.

World Trade Organization's Doha round of negotiations

The Doha Round of trade negotiations of the World Trade Organization (WTO) has been ongoing since November 2001. The mandates of the Doha Ministerial Declaration on a wide range of topics and a strong focus on development.

Five principles of trade policy in Australia

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.

Australia’s Primary Import and Export and its major industries overview

Primary exports - commodities:

Coal, gold, iron ore, meat, alumina, wool, wheat, machinery and transport equipment

Primary imports - commodities:

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

MAJOR EXPORTS

Industry

Percent in 2001

Percent in 2007

Food & beverages

18

18

Textile & clothes

4

2

Wooden products & products of paper

7

5

Printers & published media

10

10

Petroleum products

15

14

Non-metal products

4

5

Metal(Mineral) products

18

19

Technical Equipment & machineries

17

19

Other products

4

4

Australia’s Food Processing

The beverage and food manufacturing industries is the biggest in Australia. These sectors includes:

Sector

Turnover(2005–06, $mns)

Meat & its products

17,745

Beverage manufacturing

13,227

Dairy production

9,988

Sugar manufacturing

6,345

Fruit and vegetable

4,699

Bakery products

4,111

Cereal food manuf.

3,670

Oil manuf.

1,531

Seafood process

1,440

Other food

8,434

Total

71,370

Textile Industry

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.

Motor Vehicles

General Motors Holden Inc, Ford, Toyota and some other companies like Tomcar, Mitsubishi Motors Australia shut down their production facilities in February 2009. In March 2012, Holden had been bailed out a $275 mn the Govt of Australian.

Ford has two main factories in northern Melbourne suburb of Broadmeadows. In 2008, Toyota exported 101,668 vehicles worth $1900 mn. In March 2012, a new Australian Auto maker, Tomcar, announced that they will be building a new factory at Melbourne

Chemical Industry

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.

AGRI INDUSTRY

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.

The high rainfall of Tasmania (used principally for dairy products and beef production); the grazing of sheep and the other zone (characterised by large scale pastoral activities).

Agricultural Products(Major)

The forecast of the top 10 agricultural products by their value are listed with its production figures.

Commodity

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Barley

1,725

984

1,750

1,240

1,744

1,624

Cattle and calves

6,617

5,849

6,345

7,331

7,082

6,517

Fruit and nuts

2,333

2,408

2,350

2,640

2,795

2,915

Lambs

1,181

1,161

1,318

1,327

1,425

1,348

Milk

3,717

2,795

2,808

3,194

3,268

3,245

Poultry

1,175

1,273

1,264

1,358

1,416

1,461

Sugar cane

989

1,019

854

968

1,037

1,208

Value in mns of Australian dollars

Vegetables

2,269

2,126

2,356

2,490

2,601

2,715

Wheat

6,356

2,692

5,636

4,320

5,905

6,026

Wool

2,713

3,318

2,397

2,196

2,187

2,138

Crops

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 production, Sugarcane is grown in tropical area, and is the unsubsidised industry is struggling to contend with the huge Brazilian sugarcane industry.

Listed below is crop production by kilo tonnes (five year average) for the largest crops:

Crop (kilotonnes)

New South Wales

Victoria

Queensland

Western Australia

South Australia

Tasmania

Total

Wheat

6714

2173

1301

6959

3382

23

20552

Barley

1070

1173

202

1511

2000

25

5981

Sorghum

739

3

1140

3

0

0

1885

Cottonseed

663

0

1140

3

0

0

1806

Canola

637

312

1

530

225

1

1706

Oats

360

420

7

588

137

8

1520

Lupins

140

30

0

1050

103

0

1323

Field peas

20

166

0

47

190

1

424

Maize

190

8

171

6

0

0

375

Chickpeas

86

20

56

29

5

0

196

Lentils

2

68

0

2

56

0

128

Broad beans

42

68

1

0

14

0

125

Sunflower seed

46

0

65

0

0

1

112

Horticulture

Australia produces a wide variety of fruit, nuts and vegetables. The largest cropsinclude oranges, apples, bananas, potatoes, carrots & tomatoes.

In 2005 McDonald's Australia Ltd stopped sourcing its all potatoes for the product fries from Tasmanian producers and also declared a new deal along with New Zealand suppliers. After that, Vegetable and Potato Growers Australia (Ltd.) introduced a political campaign advocating protectionism.

Viticulture

Although the Australian wine industry witnessed a period of growth during the span of 1990s, over planting & over supplies have led to a huge drop in values of wine, forcing these on contracts for wine manufacturing companies, running out of business. The scenario suggesting the future for some of the Australian wine producers is not certain now.

Livestock

Livestock slaughtering

Thousands ('000)

Beef

8,587

Cattle live

796

Sheep

14,431

Lambs

17,400

Sheep exported live

6,433

Pigs

5,302

Poultry

416,100

Lamb’s meat industry

Lamb have become an increasingly important product as the sheep industry has moved its focus from wool production to the prime lamb production. The lamb meat industry and beef industry are been represented by Meat and Livestock Australia (MLA). Live exports of the sheep and cattle from Australia to the Asia and the Middle East are a major part of Australian meat exporting. Live export industry working came under scrutiny after carrier Cormo Express carrying 52 000 animals was turned away from Saudi Arabia in 2003 due to suspected cases of scabby mouth. The sheep were eventually given to Eritrea. Media coverage has led to calls from animal rights activists for the live export trade to cease.

Pork industry

There are currently 2,000 pig producers in Australia which annualizes 5 mn pigs. The pork industry injects approx $970mn to Australia’s Gross Domestic Product. The industry directly employs 6,500 full-time positions.

Dairy

With expanding export markets the growth of the Australian dairy industries is dependend. These Exports are expected to grow over time continuously, particularly with Asia and Middle East.

Fisheries

The share of the value of this industry has been steadily rising and now reaches around 32 %. The value of fisheries exports of products in 2002-03 was $1.84 bn. Australia's main seafood export earners include rock lobsters, prawns, tuna and abalone.

Wool

This industry is widely known as producing the best quality Merino wool. R & D for the industry is guided by Australian Wool Innovation Limited AWI. The industry is export-oriented. Historically, export of Australian wool is upto 90%.

Animal rights organisations including PETA are currently promoting a boycott of Australian, and all Merino wool, as a protest against the practice of molesting, necessary manufacturer to prevent them getting fly mblown along with maggots. 

Cotton

Australia also produces considerable amounts of cotton. The majority of the cotton produced is genetically modified to be resistant to the herbicide Roundup or to actively kill pests through the production of Bt toxin (Bt-cotton). Cotton is generally grown by irrigation.

Coal industry

Coal in Australia is mined in Queensland, Victoria, New South Wales. It is mostly used to generate electricity and 54 per cent of the coal mined in Australia is been exported, majorly to eastern Asia. In fiscal year 2008/09, 487 mn tonnes of coal was mined, and 261 mn tons exported. In 2010, Australia was being world's fourth-biggest coal producer and it exports roughly 70% of coal production.

Forms of Coal

Two forms of coal are mined in Australia,

High-quality bituminous coal (black coal) and

Lower-quality lignite (brown coal).

Bituminous coal used for both domestic power generations and export overseas. Bituminous coal is also once exported within other Australian states for the purpose of power generation and industrial boilers.

Lignite is mined in Victoria and South Australia, and is of the low quality because of a higher ash & water content. Today there are three open cut lignite coal mines in Victoria used for base load power generation.

Major Export Markets For Australian Coal (2008–2009)

Country/Area

Mn Tons Coking

Mn Tons Steaming

Mn Tons Total

Rank

% of exports

Japan

43.3

61.5

104.8

1

39.8

Korea (ROK)

15.1

27.9

43.1

2

16.3

Taiwan

6.1

20.0

26.1

3

9.9

China

15.5

9.5

25.0

4

9.5

India

23.8

0.9

24.7

5

9.4

Europe

18.6

2.3

20.9

6

7.9

GOLD

Overall trade trend

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 bn, 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.

In quantity terms, Australia’s gold exports have grown by approximately 3.0 per cent per annum over the past ten years. After peaking in 2009 at 437 tones, 335 tones of gold were exported in 2010

The value of Australia’s gold exports has also soared. Over the ten years to 2010, the value of gold exports increased by an average of 11.0 per cent per annum. This reflects the increasing strength of the world price of gold, which averaged US$1,225 an ounce in 2010 - over four times the average price in 2000 of US$2793

Gold imports, valued at A$6.5 bn, ranked as Australia’s seventh largest import commodity in 2010, comprising 3.1 per cent of total imports. Gold imports have nearly tripled since 2001, when gold valued at A$2.2 bn was ranked tenth in Australia’s top merchandise imports. This rise can be largely attributed to the increased capacity and productivity of Australia’s gold refinery industry.

Major markets for Australia’s gold 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.

Demand for Australian gold was largely dominated by India and the United Kingdom in 2010, accounting for 36.8 per cent and 35.9 per cent of total gold exports respectively. India is a fast-growing market for Australian gold, as the country’s increasing wealth means more Indians can afford gold jewellery. The United Kingdom plays an important role in the global market as an intermediary gold trader.

Demand for gold encompasses consumption components (gold used in the manufacture of jewellery, electronics, dentistry, coins and other industrial applications), and investment components (gold purchased for financial purposes). Factors that influence global consumption of gold include fluctuations in economic conditions in customer countries, changes to household incomes, changes in taste for jewellery and gold dentistry, and demand for electronics. Factors that influence investment demand for gold include developments in the outlook for the global economy, shifts in the value of major currencies and changes in the riskiness of other assets

INDIA AND AUSTRALIA

Introduction:

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. De-colonization, the fall of the British Empire, the weak status of the British Commonwealth and the real politics of the Cold War saw India and Australia located on different parts of the geo-political and economic world map with small demographic and cultural flows, and insignificant economic trade. 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. The last quarter of the 20th century saw a radical revision of both nations’ economic strategies, with Australia moving first to drop many of its trade barriers in the 1970s and ’80s. It is now one of the most open economies in the world. India’s liberalization programme commenced much later in 1991 but nonetheless has had a dramatic impact on its economic fortunes and growing status in the world economy. With these changes there are increasing opportunities for bilateral trade and a greater economic enmeshment in regional engagements and alignments in the Indian Ocean and in wider Asian countries. One significant indicator of change in growing Australia-India economic engagement is to look at Foreign Direct Investment (hereafter FDI). 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. Moreover, economic flows are also indicators of great social and cultural traffic. The movement of FDI between the two countries will not only encourage greater flow of peoples, especially outward migration from India to Australia, but also trigger more Australian expatriates living in India (from a very low base). Greater economic trade promises more cultural exchange.

Australia to India

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.

Australian exports to India stood at US$ 3561.10 mn in 2004-2005. Australia to India the main items that were imported were:

Copper and copper ores

Wool

Non monetary gold

Fresh vegetables

Cotton

Silver, zinc, platinum and aluminium

Coal

The Australian exports to india in the silver and platinum sector also witnessed a steep increase. Rising to A$ 54.2 mn in 2001 from A$ 36.1 mn in the previous year. Similarly, the Australian export of aluminum to India also increased to A$ 23.1 mn in 2001 from A$ 2.1 mn in the prior years.

India to Australia

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. Indian exports have increased significantly during the last few years to Australia. In 2003-2004 it was around US$ 584.30 mn, while in 2004-2005 it was approx US$ 687.03 mn. The major items that have been exported from Indian to Australia are:

Gems, and jewellery

Chemicals

Leather, and travel goods

Agricultural products

Engineering goods

Textile, and make up

22% was accounted for manufacture sector and engineering goods of India's export to Australia in the year 2001. The amount of exports increased by 7% to A$ 176.6 mn. Exports of the items like electrical apparatus which is used in circuits rose by 37.5% to A$ 7.7 mn in 2001. Base metals house hold equipments was reduced to A$ 11.4 mn in year 2001 from A$ 11.8 mn in previous year.

Exports that have been to Australia from India in the leather goods, footwear, leather, and travel goods sector was registered a increment to A$ 55.9 mn in 2001 which was A$ 54.8 mn in the prior years. Leather export rose to A$ 7.5 mn in 2001 while the same was A$ 5.6 mn in the couple of prior years.

The textile & make up sector was registered for as account of 25 per cent in the total Indian exports to the Australia in the year 2001. It was totaling to A$ 204.5 mn in overall total exports this year. The top 5 items in the women's clothing sector, men's clothing sector, textile yarn, made up articles, and floor coverings.

11% was been accounted by the agricultural products sector of India’s exports to Australia in the year 2001.

Tobacco exports increased from A$ 2.5 mn in the previous year to A$ 4.2 mn in the year 2001. While the exports of products in spices was seen to be raised to A$ 5.8 mn in 2001 from A$ 4.9 mn in the last year.

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.

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. 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

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. Another complaint is that an individual has to pay a very high percentage of tax. Today, the American market attracts more Indian IT professionals than the Australian market because of the exchange rate (1A$-Rs27).

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. Australian and Indian economic relationship have grown steadily over the previous couple of years and has rose from A$ 874 mn in1994 to A$ 1519 mn in the year 1999. In 2004- 2005 the bilateral trade for goods between two countries have reached A$ 7.3 bn, making the India Australia's 12th largest merchandise partner in trading.

What is FTA

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. However, FTA is covering a large number of sectors form the year 1995. It had covered services, copyrights, government procurements, investment incentives, competition policies, trade relieves and supported by lifting of tariffs. Reduced tariffs in trade agreement made with multilateral parties provided a large coverage of many sectors.

Regionalism is been represented by FTA as if the main trends in international economies and is also have being expanding since the starting of the WTO. In a total of 91 regional trading agreements have been reported to GATT in 47 years and 120 ones have been notified in the first 9 years of the WTO. It is been anticipated that ratio of the regional trading agreements to the world trades is supposed to increase.

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.

The WTO regulation is not very clear regarding regional trading agreements thus it is at this point of time difficult to find out whether or not regional trading agreements have been meeting to the WTO regulations. The Committee on Regional Trade Agreements (CRTA) of WTO and other various organizations are trying to provide supplements to the WTO regulations but still the progress in the same seems not satisfactory.

Regional trading agreements which include FTA shows visibility and directly affects but they are not monitored sufficiently. But on the other hand, regional trading agreement is still being expanding worldwide.

About free trade agreements

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).

FTAs can be covering complete area with varied participant or just linking 2 economy. Under these agreements, parties to the same, enters into binding commitments which is legally enforceable to liberalize availability to each other’s markets for services and goods, and investment. FTAs are also typically addressing a range of many other issues like intellectual property rights, competition policy and government procurement.

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 FTA negotiation: the the Gulf Cooperation Council (GCC), Trans-Pacific Partnership Agreement (TPP), and Pacific trade and economic agreement (PACER Plus). Australia is been concluding negotiations with Malaysia in the month of May, 2012 and agreement is supposed to be in domestic approval processes.

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.

FTAs in force

ASEAN-Australia-New Zealand FTA

Australia-Chile FTA

Australia-New Zealand Closer Economic Relations

Australia-United States FTA

Singapore-Australia FTA

Thailand-Australia FTA

FTAs concluded and undergoing domestic approval processes

Malaysia-Australia FTA

FTAs under negotiation

Australia-China FTA

Australia-Gulf Cooperation Council (GCC) FTA

Australia-India Comprehensive Economic Cooperation Agreement

Australia-Japan FTA

Australia-Korea FTA

Indonesia-Australia Comprehensive Economic Partnership Agreement

Pacific Agreement on Closer Economic Relations (PACER) Plus

Trans-Pacific Partnership Agreement

Regional Comprehensive Economic Partnership

Reason for free trade agreement

Improves Global Efficiency

Under free trade, resources which are allocated efficiently is and when markets expand. In a free trading system, products which are easily profit making be shipped from areas form where they can be produced the product cheaply to areas where they value more.

Promotes Specialization

Free trade is also allowing countries to manufacture these products which are to be most excelling in manufacturing. Free trade system allows products which can be imported from other countries directly, more specialized producers.

Lowers Prices

Those producers who can produce products at cheapest rate will be allowed to compete with in other markets, in turn pushing the prices of products lower. Through this quality of life for consumers are being raised, and these consumers are able to purchase products which were expensive to them previously.

Incentivizes Innovation

With the growth in competition, incentive for companies comes in through purpose of great innovations and produces the best, and it can be more and more cost-effective products. In closed markets, various producers, who are having knowledge that they themselves will not be facing stiff competitions, may be content which is providing the similar or same products and services to customers.

Free Trade Agreement Requirements

On the Eaton’s request, the Supplier shall be providing Eaton the evidence of any kind of certification in its possession that is under the FTA (Free Trade Agreements) allowing Eaton to import such without paying duties.

GSP – Generalized System of Preferences

The following documentation is to be required to get an entry under GSP:

For any merchandises not completely the product, manufacturing, or growth of a developing countries, merchandise which is exported or other parties who are having the knowledge related to the facts which will be preparing Declaration and will be presenting the same to Customs upon request of them to the GSP.

For merchandise that will be completely a product, growth or productions of a growing countries, a GSP Declaration that is in form of the statement has to be stamped or else to be typed by suppliers on commercial invoice which is provided by Customs.

Copies of invoices, bills of lading, and various shipping documentations which will be shown to the U.S. as destinations and the developing countries as the port of lading without entering the commerce of any kind in any different countries will be maintained in files.

Statistical Information Service

The Department of Foreign Affairs and Trade Market Information and Research Section (MIR) can help you make your important business decisions.

It provides a statistical information service for individuals and organisations seeking specialised trade and other economic data in relation to Australia and the rest of the world.

Wide trade coverage

MIR specialises in the provision of commodity trade data for Australia and the rest of the world. It can also provide other economic and socio-economic information on specific countries.

As well as Australia's official trade records, MIR’s electronic database has trade records of almost 200 countries and regions, covering more than 90 per cent of total world merchandise trade. With statistics sourced from over 100 national statistical offices and international organisations such as the Australian Bureau of Statistics, the United Nations, the International Monetary Fund and the World Trade Organisation, MIR can quickly provide specific market-related trade statistics for clients.

Fast accurate service

MIR can provide data to your specifications on either hard copy, disk or e-mail; simple queries can usually be handled over the phone. For most inquiries, a cost recovery fee is applicable. MIR endeavours to complete most requests in less than 48 hours, although this depends on the nature of the inquiry, and the backlog of orders.

For further information, please contact the Client Services Manager

Graph: Australia's trade balance to September 2012

Proposed agreements

2011 Commonwealth of Independent States Free Trade Agreement (CISFTA)[7]

African Free Trade Zone (AFTZ) between SADC, EAC and COMESA

2014 Union of South American Nations (CSN)

2021 Pacific Island Countries Trade Agreement (PICTA)[8]

Arab Maghreb Union (UMA)

Regional Comprehensive Economic Partnership[11] (RCEP) (ASEAN plus 6)

Asia-Pacific Economic Cooperation (APEC)

Bay of Bengal Initiative for MultiSectoral Technical and Economic Cooperation (BIMSTEC)

Bolivarian Alternative for the Americas (ALBA)

Free Trade Area of the Asia Pacific (FTAAP)

Association of Caribbean States (ACS)

Economic Community of West African States (ECOWAS)[9]

Intergovernmental Authority on Development (IGAD)

Economic Community of Central African States (ECCAS)

Community of Sahel-Saharan States (CEN-SAD)

China–Japan–South Korea Free Trade Agreement

Euro-Mediterranean free trade area (EU-MEFTA)

GUAM Organization for Democracy and Economic Development (GUAM)[10]

Free Trade Area of the Americas (FTAA)

Tripartite Free Trade Area (T-FTA)[13]

People's Trade Treaty of Bolivarian Alternative for the Americas (ALBA)

Shanghai Cooperation Organisation (SCO)[12]

Pacific Agreement on Closer Economic Relations (PACER and PACER Plus)

Transatlantic Free Trade Area (TAFTA)