2. Australia's trade and FTA landscape

Overview

2.1Throughout the inquiry, the Committee received evidence highlighting the benefits of international trade to Australia and outlining how trade and free trade agreements (FTAs) have underpinned the success of many industries, businesses, and communities across Australia.

2.2Australia now has an extensive network of 18 FTAs with 30 partner economies. FTAs offer Australian businesses greater market access for exports, primarily through reduced tariffs. They also provide both businesses and consumers access to a higher range of imported goods and services at lower prices. FTAs also play a role in opening dialogue and strengthening diplomatic ties between trading partners.

Importance of trade to Australia

2.3Australia is a trading nation with a long-standing commitment to open trade.[1] As a member of the World Trade Organization (WTO), Australia has strongly committed to open international trade, supported by bilateral, regional, and multilateral FTAs, as driver of the economy and foundation for prosperity.[2]

2.4Submitters widely recognised that Australia’s best interests are served by an open and rules-based global trading system that supports the movement of goods, services, and investment.[3]

2.5Key benefits of trade for Australia were described as increased productivity and economic growth, increased profitability for businesses, job creation, higher living standards, access to a greater range of goods and services at lower prices, higher disposable incomes, reduced cost of living, and increased government revenue.[4]

2.6Submitters widely supported the view that Australia has a strong reliance on international trade and fostering close relationships with trading partners.[5] To illustrate this, GrainGrowers submitted that international trade is equivalent to 45 per cent of Australia’s gross domestic product (GDP) and responsible for one in five jobs.[6] The Department of Foreign Affairs and Trade (DFAT) outlined that 31 per cent of Australia economic output is supported by trade-related activity and 25 per cent of Australian jobs are connected to trade.[7] AUSVEG stated that around one-third of GDP and 3 million jobs supported by trade-related activities.[8]

2.7Australia’s two-way trade reached $1.2 trillion in 2023, with export value reaching $673 billion consisting of $560 billion in goods exports and $113 billion in services exports.[9]

2.8Bankwest Curtin Economic Centre (BCEC) noted that strong relationships with key trading partners have facilitated export-led growth and brought significant benefits to the agriculture, minerals, energy, education, tourism, and health sectors.[10]

2.9Australia’s top five goods exports in 2023 were: iron ore ($136.1 billion), coal ($102.6 billion), natural gas ($74.2 billion), gold ($28.4 billion) and crude minerals ($18.9 billion).[11] Top services exports in 2023 were: education-related travel services ($47.8 billion); personal travel services ($18.7 billion); charges for the use of intellectual property ($7.9 billion); professional services (e.g. management consulting, legal and accounting services) ($7.5 billion); technical and other business services (e.g. architectural, engineering and scientific services) ($5.3 billion).[12]

2.10Australia’s largest trading partner is China, with whom Australia has an established FTA known as the China-Australia FTA (ChAFTA).[13] Total two-way trade with China was $326.9 billion or around 25 per cent of total in 2023, equating to that of Australia’s next four largest trading partners combined in Japan, the United States (US), Republic of Korea (Korea), and India combined.[14] In 2023 China purchased 32.5 per cent of Australia’s total global exports, totalling $219 billion.[15] China is Australia’s top export market for agriculture, resources and services.[16]

2.11The Australian agriculture sector has been a major beneficiary of increased trade flows and relies on open international trade environment to ensure ongoing profitability and sustainable growth.[17] The agriculture sector is heavily export-oriented with greater than 70 per cent of Australia’s agricultural production sold into overseas markets.[18] In 2022 Australia’s agricultural exports reached $78 million, increasing five-fold in twenty-five years.[19]

2.12Some submitters noted the importance of open investment flows in addition to goods and services.[20] DFAT advised that foreign investment has played a significant role in Australia’s economic success by underpinning the expansion of the mining and agriculture sectors, as well as the development of key infrastructure such as roads, rail, and ports.[21] It added that investment outflows from Australia provide households and businesses with the opportunity to diversify their savings and investment.[22]

2.13The Australian Chamber of Commerce and Industry (ACCI) submitted that the: ‘Free flow of investment both in and out of Australia provides access to new capital for domestic businesses, income generating opportunities overseas and cutting-edge business practices.’[23]

Role of free trade agreements

2.14FTAs are treaties between two or more countries primarily aimed at reducing or eliminating trade barriers, such as tariffs and quotas, to encourage stronger trade and investment flows.[24]

2.15An important feature of FTAs is that they provide a legal framework within which international trade and investment can take place with confidence.[25] Agreements supplement and improve upon the WTO charter, allowing like-minded nations to agree on rules beyond WTO commitments.[26]

2.16The Productivity Commission outlined how FTAs benefit businesses and consumers:

Lowering trade barriers and other means of economic integration supports the Australian economy by expanding our access to foreign markets, lowering our import costs (including the cost of intermediate goods), enhancing firm productivity through competitive pressures, and leading to a more efficient allocation of resources to sectors in which Australia has a comparative advantage.[27]

2.17DFAT similarly explained that FTAs reduce barriers to trade by providing greater access to overseas markets for exports through tariff reduction, increasing access to overseas service markets and investment opportunities, expediting the movement and clearance of goods, supporting the movement of skilled workers, and by acting as avenue to address non-tariff barriers (NTBs) to trade.[28]

2.18DAFF explained that: ‘… FTAs have provided new and commercially meaningful market access to the Australian agricultural sector, supported Australia’s trade diversification agenda and enhanced the competitiveness of our exports through preferential tariff and quota outcomes.’[29]

2.19AUSVEG described that FTAs provide preferential access to foreign markets which enables businesses to expand beyond domestic borders, in turn allowing businesses to: ‘… scale up production, achieve economies of scale, de-risk exposure to the domestic market, and enhance competitiveness globally.’[30]

2.20Both BCEC and DFAT outlined the benefits FTAs provide to Australian consumers through increased disposable income and imports providing a greater range goods and services at lower prices, which reduces the cost of living for households and improves living standards.[31] BCEC also emphasised that FTAs enable businesses to access lower cost inputs and technologies resulting in improved productivity and reduced cost of production to the benefit of both businesses and consumers’[32]

2.21The Productivity Commission noted that trade agreements have evolved from a focus on increasing trade in goods through tariff reduction to more comprehensive agreements that aim to liberalise trade in services and foreign investment, as well as increasingly covering broader issues such as intellectual property.[33]

2.22Group of Eight Australia (Go8) explained that while the primary objective of FTAs is economic, they are: ‘… also increasingly important in signalling our values and strategic alignment, boosting innovation and outlining aspirations for longer term relationship development.’[34]

2.23Australia currently has 18 FTAs in force with 30 partner economies, as listed in Table 2.1 below.[35] The Department of Home Affairs (DHA) submitted that following the entry into force of the Australia-United Kingdom FTA (A-UKFTA), around 75 per cent of two-way trade was estimated to be covered by Australia’s network of FTAs.[36]

2.24Australia currently has two FTAs under negotiation. They are:

• Australia-European Union Free Trade Agreement (negotiations began 18 June 2018)
• Australia-India Comprehensive Economic Cooperation Agreement (negotiations began May 2011, suspended 2016, resumed 2023).[38]
  25. Australia has three FTAs that are signed but not yet in force. They are:
• Second Protocol to upgrade the ASEAN-Australia-New Zealand FTA (date of signature 21 August 2023)
• United Kingdom Accension protocol to the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (date of signature 16 July 2023)
• Australia-United Arab Emirates Comprehensive Economic Partnership Agreement (date of signature 6 November 2024).[39]

Economic benefits of free trade agreements

2.26A large number of submitters emphasised the positive impact of FTAs on Australia’s GDP and outlined the economic benefits that have flowed to many industries.[40]

2.27DFAT explained that the increase in Australia’s network of FTAs has had a strong impact on export growth.[41] Total goods exports have more than doubled since 2014 when the proportion of exports covered by FTAs was 18 per cent, compared to 78 per cent by 2023.[42] It cited estimates that Australia receives a 12.6 per cent increase in exports annually from an FTA.[43]

2.28Ms Jo Grainger, Acting Assistant Secretary, Trade and International Division, Department of Agriculture, Fisheries and Forestry (DAFF) told the Committee about the benefits of FTAs for the agriculture sector:

Australia's FTAs now cover more than 80 per cent of Australia's agricultural exports, and they have provided new and commercially meaningful market access for our agriculture and food sectors, and they've obviously supported new market diversification opportunities.[44]

2.29BCEC investigated the effects of FTAs on Australia’s overall trade creation and diversion, with findings demonstrating a net increase in overall trade flows due to FTA implementation compared to the scenario with no FTA in place.[45] In relation to specific bilateral trading relationships, BCEC estimated the following increases in Australia’s export values after FTA implementation: China by $275.4 billion, Japan by $99.1 billion, Korea by $40.7 billion, and Thailand by $57 billion.[46]

2.30As an example of the impact of FTAs, DFAT highlighted that bilateral goods trade with China increased by 149 per cent between when ChAFTA commenced in 2015 and 2023.[47] Significant increases were also seen in trade with Korea and Japan following FTA implementation.[48]

2.31BCEC’s research demonstrated an increase in household disposable income and lower consumer prices directly as a result of trade with China through ChAFTA.[49] Dr Daniel Kiely, Senior Research Fellow, BCEC explained to the Committee:

Taking [ChAFTA], as a case study, BCEC estimated that trade with China elevated the average Australian household disposable income by $2,600 in 2022-23 alone.

…without trade with China, BCEC estimated that Australians would experience a 4.2 per cent rise in expenses if the same imported goods were to be sourced from countries outside of Australia's primary trading partners.[50]

Jobs and Employment

2.32Submitters outlined that FTAs have a positive impact on employment and jobs creation.[51] For example, DFAT highlighted that one in four Australian jobs are connected to trade and that jobs associated with export activity are paid 9.6 per cent more than the national average.[52]

2.33BCEC explained that the implementation of large FTAs like ChAFTA assist in supporting productive and high wage jobs.[53] It added that the number of Australian jobs related to trade with China was estimated at just under 600,000 in 2022-23.[54]

2.34Submitters noted that FTAs directly increase employment in the agricultural industry by boosting export opportunities.[55] DAFF cited research estimating that exports generated an additional 40,360 jobs in the agriculture sector in 2020-21.[56]

Regional and rural communities

2.35The Committee received evidence that FTAs have a significant positive impact on the regional and rural communities.[57]

2.36DFAT noted that Australia’s largest exports by value include commodities and agricultural produce sourced from regional Australia.[58]

2.37DAFF also observed that as agricultural businesses are primarily located in regional and rural communities, they support local economies and provide significant employment.[59] With over 300,000 people employed in the agriculture sector and the majority of Australia’s agricultural produce exported, many jobs in the sector are reliant on trade and the outcomes achieved for the sector through FTAs.[60]

2.38Likewise, the National Farmer’s Federation (NFF) submitted that agriculture cultivates the ‘economic prosperity of Australian regions’, and thus FTAs that facilitate export opportunities and job creation provide large benefits to regional communities.[61]

2.39AUSVEG described the benefits provided by FTAs as significant pillars of some regional economies.[62] It added that ‘engaging in export markets also promotes job creation, rural development and supports regional economic growth. The increased demand for labour in growing, harvesting, processing, and logistics can boost employment opportunities in agricultural communities.’[63]

2.40The Committee heard that regional communities benefit from trade agreements that include labour mobility provisions that assist to address critical skill shortages in regional areas, further bolstering economic and social development.[64]

Benefits to specific industries

Grains

2.41FTAs have benefitted the Australian grain industry by establishing lower than average tariffs allowing increased access to global markets. Both GrainGrowers and Grain Trade Australia (GTA) both submitted that 65-75 per cent of Australian grain is exported every year.[65]

2.42In a global environment where trade protectionism is rising, grain industry representatives gave evidence that they saw FTAs as the key mechanism for removing trade barriers.[66] Trade barriers referred to include tariffs, quotas, embargoes and voluntary export restraints.[67]

2.43According to GTA, bilateral trade agreements are an effective trade policy tool for the grain industry as they: provide a trade framework, improve market access, minimise the impact of non-trade measures (NTMs), and advance tariff reductions.[68]

2.44GTA also gave evidence that the grain industry remains confident FTAs will continue to boost opportunities and support growth, declaring that it: ‘… strongly supports the establishment of [FTAs], as they present a unique opportunity to deepen and strengthen trade and economic ties with our trading partners and their countries.’[69]

Meat

2.45FTAs have provided considerable benefits to the red meat industry.[70] These benefits include but are not limited increased market access, reduction in NTBs, improving trade efficiency, advancing industry growth, greater market diversification and cultivating trade relationships.[71]

2.46Mrs Susan Wakeford, Chief Executive Officer (CEO), Red Meat Advisory Council (RMAC) told the Committee:

Australia's prosperity, specifically of the red meat industry, is highly dependent on international trade, as you would understand. Access to overseas markets is critical not only for our export of produce and underpinning domestic industries but also for sourcing our inputs, technology and capital equipment that we require. These trade transfers are really paramount for business efficiencies across our sectors.[72]

2.47Industry representatives explained that FTAs benefit the red meat industry by resolving market access issues and other barriers to trade. RMAC submitted that FTA negotiations have improved trade flows and reduced NTBs which have been beneficial.[73] Mr Sam Munsie, General Manager, Trade and Technical Affairs, Australian Meat Industry Council (AMIC) noted: ‘… the reason we're able to export 70 to 80 per cent of our meat production in Australia is that we have a lot of those markets open to facilitate that trade.’[74]

2.48Ms Jo Grainger, DAFF noted that:

… the [A-UKFTA], which entered into force on 31 May 2023, has already seen significant increases in beef exports to the UK [United Kingdom]. They increased 414 per cent from a low base. We are up from $11.2 million to $57.4 million over 11 months. Our sheep meat and goat exports increased to $111 million in the same period.[75]

2.49Industry representatives noted that FTAs firmly establish trading relationships with key supply chain partners. The terms of the FTA then dramatically reduce costs associated with conducting business and lower the administrative burden that would be required if no FTA existed.[76]

2.50In terms of the value of these benefits, RMAC indicated that the FTAs with China, Korea and Japan combined generated an additional $1 billion in revenue per annum over 20 years for the red meat industry.[77]

2.51RMAC noted in their hearing that while FTA agreements are important to livestock trade in Australia, many other mechanisms facilitate success in the industry:

… whilst the activities of Austrade and DFAT in a trade negotiation sense are important, they're not the be-all and end-all—in fact, they're not even the majority—of the negotiations that take place at a government-to-government level. Then there are a whole range of other negotiations that take place between businesses on a commercial scale to make the trade happen. I think it's worth bearing in mind that trade agreements only form a very small part of the successful trading relationship to another country.[78]

Dairy

2.52The Australian Dairy Industry Council (ADIC) noted that dairy is the third largest Australian rural industry with 30 per cent of Australian milk production, equating to $3.7 billion, exported in 2023.[79]

2.53Milk production in Australia far surpasses the domestic consumption with ‘surplus product destined for export markets.’[80] Therefore, FTAs and the market access they provide are essential to the dairy industry.

2.54Australian dairy industry representatives agreed that FTAs play a crucial role in enhancing global competitiveness, providing market diversification and resilience against ‘economic volatility’.[81]

2.55Specifically, ADIC noted significant benefits from both ChAFTA and the ASEAN-Australia-New-Zealand FTA (A-A-NZFTA). The industry peak body notes that in leveraging off geographical proximity, established trade relations and tariff advantages, the growing demand for dairy products in Asian markets can be met by Australia’s production.[82] FTAs are essential to ensuring that this market access can be maintained and expanded.[83]

2.56Graphs provided by ADIC show that since entering major FTAs, like ChAFTA, dairy exports have increased in both volume and value. Tariff reductions provided by FTAs channel export focus towards key FTA-supported export markets as these are more profitable and have higher demand for Australian products.[84]

2.57ADIC noted: that: ‘Between 35 per cent and 40 per cent of our total exports go to the Chinese market. We've seen enormous growth in that market, and that has really escalated since that ChAFTA agreement…’[85]

2.58As a major employer in the agricultural industry, ADIC notes that an increase in export opportunities provided by FTAs boosts employment in Australia. This ‘secures the livelihoods of thousands of Australians, particularly in regional areas.’[86]

Fruits and Vegetables

2.59Similar to other industries, the Committee heard that fruit and vegetable industry benefits from trade liberalisation and increased market access.

2.60AUSVEG outlined several benefits associated of diversifying vegetable production into export markets through FTAs such as:

• Increasing industry resilience
• Reducing exposure to the domestic market
• Creating a dynamic tension that helps support better domestic pricing
• Reaching a larger customer base
• Reducing demand on domestic demand fluctuations
• Mitigating risks associated with local market saturation
• Promoting domestic job creation and rural development.[87]
  61. AUSVEG also submitted that for complete benefits FTAs need to be partnered with a successful technical export market access pathway in can be achieved through close collaboration with DFAT and DAFF.[88]

Organics

2.62Australian Organic Limited noted that the benefits of FTAs were limited in the organics industry due to a lack of equivalency recognition with key trading partners.

2.63Australian Organic Limited (AOL) explained that major trading partners like the US and Korea will not consider an equivalency agreement for organics until Australia implement a legal framework to monitor and define organic products:

… when we look at the current [FTAs] where the national standard, which is our export standard, is recognised by some countries, Singapore is the only country that recognises the national standard as being suitable for importing country requirements…[89]

2.64Ms Josefine Pettersson, Operations and Technical Manager, AOL outlined that This makes exporting Australian organic products complex and expensive: ‘… When we look at the other [FTAs], the [US] requires a direct recertification requirement on operators… The same happens for China. This is a lengthy and arduous cost… between $10,000 and $30,000…’[90]

2.65The organics industry emphasised that a base FTA agreement doesn’t mean that organic produce can be traded and that the organic industry does not experience the same open market access opportunities that FTAs afford other industries. Ms Pettersson, AOL noted that:

… all different countries have different statuses of organic regulatory systems. The more advanced ones—like the EU [European Union], the US, Canada, China, and Korea—have established regulatory systems where there are importing country requirements. You need to recertify to their standards and/or there needs to be a government-to-government equivalency in place.[91]

Alcoholic beverages

2.66The alcoholic beverage industry in Australia is diverse and the inquiry heard that perspectives on FTAs varies across the industry.

2.67Australian Grape & Wine (AGW) submitted that the sector relies on Australian Government efforts to establish FTAs with a broad range of trading partners.[92] The removal and reduction of tariff measures afforded to the industry by FTAs has had a positive impact on exports from the sector.[93]

2.68AGW advised that 60 per cent of the Australian wine sector’s production is exported each year.[94] AGW highlighted that following the implementation of ChAFTA, Australian wine exports rose from $370 million in December 2015 to a peak of $1.2 billion in 2019.[95] Market diversification supports the growth of Australian wine.[96]

2.69However, Spirits & Cocktails Australia (SCA) submitted that the benefits of trade agreements are not as widely experienced in their sector. Currently, only 17 per cent of spirits manufacturers export according to the Spirits Industry Survey.[97] SCA contended that with the ‘correct policy settings and investment by government and industry’, the spirits sector can experience the same success as achieved by the Australian wine industry.[98]

2.70Mr Dan Hamilton, Chair, SCA and Managing Director, Diageo Australia stated:

… Aussie wine is about a $2½ billion export business. We've seen how Aussie wine has created a very significant position on the world stage. We see the opportunity for spirits to absolutely follow in those footsteps, with the right support. That's kind of an industry perspective.[99]

Vehicles

2.71The Australian Automotive Dealer Association (AADA) submitted that FTAs have provided the automotive industry with social and economic benefits by providing consumers with access to cheaper vehicles.[100]

2.72The AADA’s submission highlighted that cars sourced from countries with existing FTAs with Australia are experiencing a steady increase in new vehicle sales. Conversely, new vehicle sales from non-FTA countries have decreased from 2017 to 2023.[101] Existing FTAs mean cars are imported tariff-free and can therefore be more competitively priced than cars imported from countries without an FTA in place.[102]

Role of Australian Government departments and agencies

2.73Australian Government departments and agencies work closely together to negotiate, implement, and educate about Australia’s trade and investment agreements. Each department and agency involved has a distinct role and responsibilities in the process. This section briefly outlines the evidence received from Australian Government departments and agencies about their roles in Australia’s FTAs.

2.74The consultation, outreach, and engagement activities undertaken by government to build awareness and capacity to access FTAs are discussed in Chapter 3.

Department of Foreign Affairs and Trade

2.75DFAT leads the negotiation and implementation of Australia’s FTAs. It works closely across government to develop negotiating positions, promote understanding of FTAs, and address barriers to trade.[103] DFAT has over 120 offices around the world and in each state and territory that play an important role in promoting Australia’s trade interests and connecting Australians with trade and investment opportunities.[104]

2.76DFAT manages formal consultation processes on FTA negotiation, implementation, and trade policy. It aims to consult openly with interested businesses, peak bodies, First Nations groups, labour unions, civil society, and the public as well as holding targeted consultation through a range of established forums.[105]

2.77DFAT also plays a major role in building awareness of FTAs through its consultation processes, providing information and communications material, hosting digital tools and services, and undertaking ongoing stakeholder engagement activities both in Australia and abroad.[106] It also measures the use of Australia’s FTAs through data exchange on preference utilisation with trading partners.[107]

Department of Agriculture, Fisheries and Forestry

2.78DAFF is heavily involved in the FTA negotiation process. With a focus on the agriculture sector DAFF aims to improve market access, protect the integrity of Australia’s biosecurity system, and enhance opportunities for stakeholders to make meaningful contributions to FTA negotiations.[108] Further, as the competent authority for agriculture and agrifood trade, DAFF has the important role of negotiating the technical arrangements for the new market access gained through FTAs.[109]

2.79During the FTA negotiation process DAFF works closely with DFAT from the development of a mandate through to the final stage of negotiations to ensure that stakeholders understand objectives, opportunities, and priorities, and that their interests are reflected.[110] This includes regular consultation with a broad group of participants as well as close consultation on specific issues with key stakeholders.[111]

2.80Ms Jo Grainger, DAFF explained to the Committee that:

… [DAFF] provide the systems and the support. We have the technical capability in plant, animal and food safety to do those technical negotiations. We come up with stringent conditions for bringing food into Australia and allow signing off on the export of our fantastic product outside of Australia. We have that twin role of enabling and unlocking trade opportunity because we are holding the border, if you like, in terms of that competent authority role to support exports and to control imports. In terms of how we work with industry, we… work very closely with peak industry bodies, [and] with the research and development corporations who have marketing roles.[112]

2.81DAFF also often works with Austrade once an agreement is in force to educate industry groups, businesses, farmers, and the public about key benefits and opportunities arising from an FTA.[113] Further, DAFF has a role in monitoring and measuring FTA outcomes through engagement with stakeholders and tracking trade data, as well as managing export quotas under FTAs.[114]

Austrade

2.82Austrade connects Australian exporters to global opportunities by sharing knowledge and advice with the aim of increasing ease, efficiency, and outcomes.[115] Other key aspects of its role are promoting Australia as a foreign investment destination, highlighting Australia as a provider of high-quality education services, and leading policy, programs, and statistics for Australian tourism and the visitor economy.[116]

2.83Austrade participates in and contributes to the development of FTAs, including by sharing valuable data and insights collected from stakeholders across a wide range of sectors and markets with DFAT to inform FTA negotiations.[117]

2.84Once FTAs are in force: ‘…Austrade plays an important role in informing Australian businesses of the provisions contained in the agreements and supporting export ready businesses in entering and growing their presence in those markets.’[118]Austrade promotes FTAs and trade opportunities through targeted outreach and engagement activities, digital services and tools, and through media and digital communications channels.[119]

Department of Home Affairs and the Australian Border Force

2.85The DHA and Australian Border Force (ABF) are involved in FTAs from the development of the initial mandate through to implementation.[120] DHA has responsibility for the Movement of Natural Persons (MNP) under FTAs, for example relating to waivers of labour market testing, skills exchange provisions, and access to the Working Holiday Maker program.[121]

2.86As Australia’s customs service, the ABF is responsible for the movement of goods aspects of FTA negotiations. However, it is not responsible for the level of tariffs or the rules of origin (RoO) which are developed between the Department of Industry, Science and Resources, DAFF, and DFAT.[122] It also has a role in supporting Australian businesses to understand and comply with the requirements for accessing preferential rates of customs duty under FTAs.[123] The ABF is one of the few agencies that is required to make legislative changes to implement FTAs once they are agreed.[124]

Committee comment

2.87The Committee recognises that Australia is a nation based on trade with the open international trading system having a strong positive impact on the economy through higher gross domestic product (GDP), greater job opportunities, and increased average household disposable income. An extensive network of bilateral, regional, and multilateral free trade agreements (FTAs) has established strong ties with trading partners and greatly reduced barriers to trade across many markets leading to significant growth in the benefits of trade for Australia.

2.88The Committee notes that the success of many Australian industries and businesses is underpinned by the benefits received from open trade and FTAs. Australia’s FTAs have opened export markets access, improved efficiency and reduced input costs, and facilitated investment inflows. For the benefits of trade to continue, it is essential that Australia continually seek to reduce trade barriers, maintain current market access, seek new market opportunities, and preserve relationships with trading partners.

2.89The Committee acknowledges the vital roles of Australian Government departments and agencies such as Department of Foreign Affairs and Trade (DFAT), the Department of Agriculture, Fisheries and Forestry (DAFF), Austrade, and the Department of Home Affairs (DHA) in negotiating, implementing, and promoting FTAs and advancing Australia’s trade interests.

Footnotes

[1]Department of Foreign Affairs and Trade, Submission 34, p. 2.

[2]Productivity Commission, Submission 10, p. 4; Bankwest Curtin Economics Centre, Submission 16, p. 3; Department of Foreign Affairs and Trade, Submission 34, pp. 2–4.

[3]See, for example: Red Meat Advisory Council, Submission 12, p. 4; Australian Grape & Wine, Submission 9, p. 7; Australia China Business Council, Submission 32, p. 5; Department of Foreign Affairs and Trade, Submission 34, p. 4; Australian Chamber of Commerce and Industry, Submission 35, p. 1.

[4]Productivity Commission, Submission 10, pp. 3 and 5, citations omitted; Bankwest Curtin Economics Centre, Submission 16, p. 3; Department of Agriculture, Fisheries and Forestry, Submission 28, p. 3; Department of Foreign Affairs and Trade, Submission 34, p. 2; Australian Chamber of Commerce and Industry, Submission 35, p. 1.

[5]See, for example: GrainGrowers, Submission 4, p. 1; National Farmer’s Federation, Submission 8, pp. 1–2; Productivity Commission, Submission 10, p. 3; Red Meat Advisory Council, Submission 12, p. 4; Department of Agriculture, Fisheries and Forestry, Submission 28, p. 3; Department of Foreign Affairs and Trade, Submission 34, p. 1.

[6]GrainGrowers, Submission 4, p. 2.

[7]Department of Foreign Affairs and Trade, Submission 34, p. 2.

[8]AUSVEG, Submission 15, p. 5.

[9]Department of Foreign Affairs and Trade, Submission 34, p. 2, citation omitted.

[10]Bankwest Curtin Economics Centre, Submission 16, p. 3.

[11]Department of Foreign Affairs and Trade, Submission 34, p. 3.

[12]Department of Foreign Affairs and Trade, Submission 34, p. 3.

[13]Department of Foreign Affairs and Trade, Submission 34, p. 4.

[14]Department of Foreign Affairs and Trade, Submission 34, p. 3.

[15]Department of Foreign Affairs and Trade, Doing business with China, accessed 24 January 2025: https://www.dfat.gov.au/trade/agreements/in-force/chafta/doing-business-with-china/doing-business-with-china.

[16]Department of Foreign Affairs and Trade, Doing business with China, accessed 24 January 2025: https://www.dfat.gov.au/trade/agreements/in-force/chafta/doing-business-with-china/doing-business-with-china.

[17]National Farmer’s Federation, Submission 8, p. 2; Department of Agriculture, Fisheries and Forestry, Submission 28, pp. 4 and 6.

[18]National Farmer’s Federation, Submission 8, p. 1; Department of Agriculture, Fisheries and Forestry, Submission 28, pp. 4 and 6.

[19]Department of Agriculture, Fisheries and Forestry, Submission 28, p. 6.

[20]See, for example: Red Meat Advisory Council, Submission 12, p. 10; AUSVEG, Submission 15, p. 5; Productivity Commission, Submission 10, p. 3; Dr Wei Li, Submission 22, p. 2; Department of Foreign Affairs and Trade, Submission 34, p. 4; Australian Chamber of Commerce and Industry, Submission 35, p. 1.

[21]Department of Foreign Affairs and Trade, Submission 34, p. 4.

[22]Department of Foreign Affairs and Trade, Submission 34, p. 4.

[23]Australian Chamber of Commerce and Industry, Submission 35, p. 1.

[24]Department of Foreign Affairs and Trade, About free trade agreements, accessed 24 January 2025: https://www.dfat.gov.au/trade/about-ftas/about-free-trade-agreements.

[25]Professor Richard Pomfret, Submission 3, p. 1.

[26]Professor Richard Pomfret, Submission 3, p. 1.

[27]Productivity Commission, Submission 10, p. 5.

[28]Department of Foreign Affairs and Trade, Submission 34, p. 4.

[29]Department of Agriculture, Fisheries and Forestry, Submission 28, p. 6.

[30]AUSVEG, Submission 15, p. 5.

[31]Bankwest Curtin Economics Centre, Submission 16, p. 5; Department of Foreign Affairs and Trade, Submission 34, p. 3.

[32]Bankwest Curtin Economics Centre, Submission 16, p. 5.

[33]Productivity Commission, Submission 10, p. 3.

[34]Group of Eight Australia, Submission 19, p. 1.

[35]Department of Foreign Affairs and Trade, Submission 34, p. 4; Productivity Commission, Submission 10, p. 3; Bankwest Curtin Economic Centre, Submission 16, p. 10; Australian Chamber of Commerce and Industry, Submission 35, p. 10.

[36]Department of Home Affairs, Submission 6, p. 3.

[37]Department of Foreign Affairs and Trade, Submission 34, p. 13.

[38]Department of Foreign Affairs and Trade, Submission 34, p. 13.

[39]Department of Foreign Affairs and Trade, Submission 34, p. 13; Department of Foreign Affairs and Trade, Australia-UAE Comprehensive Economic Partnership Agreement (CEPA), accessed 20 February 2025: https://www.dfat.gov.au/trade/agreements/not-yet-in-force/australia-uae-comprehensive-economic-partnership-agreement-cepa.

[40]See, for example: Productivity Commission, Submission 10, p. 3; Red Meat Advisory Council, Submission 12, pp. 6–7; AUSVEG, Submission 15, p. 5; Bankwest Curtin Economics Centre, Submission 16, p.11; Australian Dairy Industry Council, Submission 21, p. 2; Department of Foreign Affairs and Trade, Submission 34, p. 4–5.

[41]Department of Foreign Affairs and Trade, Submission 34, p. 5.

[42]Department of Foreign Affairs and Trade, Submission 34, p. 5, citation omitted.

[43]Department of Foreign Affairs and Trade, Submission 34, p. 5, citation omitted.

[44]Ms Jo Grainger, First Assistant Secretary, Trade and International Division, Department of Agriculture, Fisheries and Forestry, Committee Hansard, Canberra, 23 August 2024, p. 12.

[45]Bankwest Curtin Economics Centre, Submission 16, p. 11.

[46]Bankwest Curtin Economics Centre, Submission 16, p. 11.

[47]Department of Foreign Affairs and Trade, Submission 34, p. 5.

[48]Department of Foreign Affairs and Trade, Submission 34, p. 5.

[49]Bankwest Curtin Economics Centre, Submission 16, p. 4.

[50]Dr Daniel Kiely, Senior Research Fellow, Bankwest Curtin Economics Centre, Committee Hansard, Canberra, 8 October 2024, p. 1.

[51]See, for example: Business Council for Sustainable Development Australia, p. 6; Bankwest Curtin Economics Centre, Submission 16, p. 5; Australian Dairy Industry Council, Submission 21, p. 6; Department of Agriculture, Fisheries and Forestry, Submission 28, p. 3; Department of Foreign Affairs and Trade, Submission 34, p. 2.

[52]Department of Foreign Affairs and Trade, Submission 34, p. 2, citation omitted.

[53]Bankwest Curtin Economics Centre, Submission 16, p. 5.

[54]Dr Daniel Kiely, Senior Research Fellow, Bankwest Curtin Economics Centre, Committee Hansard, Canberra, 8 October 2024, p. 1.

[55]See, for example: AUSVEG, Submission 15, p. 6; Australian Dairy Industry Council, Submission 21, p. 6; Department of Agriculture, Fisheries and Forestry, Submission 28, p. 14.

[56]Department of Agriculture, Fisheries and Forestry, Submission 28, p. 14.

[57]See, for example: National Farmer’s Federation, Submission 8, p. 3; Red Meat Advisory Council, Submission 12, p. 8; AUSVEG, Submission 15, pp. 5–6; Department of Agriculture, Fisheries and Forestry, Submission 28, p. 14; Department of Foreign Affairs and Trade, Submission 34, p. 3.

[58]Department of Foreign Affairs and Trade, Submission 34, p. 3.

[59]Department of Agriculture, Fisheries and Forestry, Submission 28, p. 14.

[60]Department of Agriculture, Fisheries and Forestry, Submission 28, p. 14.

[61]National Farmer’s Federation, Submission 8, p. 3.

[62]AUSVEG, Submission 15, p. 5.

[63]AUSVEG, Submission 15, p. 6.

[64]Red Meat Advisory Council, Submission 12, p. 8.

[65]GrainGrowers, Submission 4, p. 1; Grain Trade, Submission 13, p. 1.

[66]GrainGrowers, Submission 4, p. 2.

[67]GrainGrowers, Submission 4, p. 2.

[68]Grain Trade Australia, Submission 13, p. 3.

[69]Mr Tim Ross, Projects & Operations Manager, Grain Trade Australia, Committee Hansard, Melbourne, 12 November 2024, p. 1.

[70]Red Meat Advisory Council, Submission 12, pp. 6–8; Department of Agriculture, Fisheries and Forestry, Submission 28, p. 5.

[71]Department of Agriculture, Fisheries and Forestry, Submission 28, p. 5.

[72]Mrs Susan Wakeford, Chief Executive Officer, Red Meat Advisory Council, Committee Hansard, Canberra, 22 November 2024, p. 25.

[73]Red Meat Advisory council, Submission 12, p. 8.

[74]Mr Sam Munsie, General Manager Trade and Technical Affairs, Australian Meat Industry Council, Committee Hansard, Canberra, 22 November 2024, p. 27.

[75]Ms Jo Grainger, First Assistant Secretary, Trade and International Division, Department of Agriculture, Fisheries and Forestry, Committee Hansard, Canberra, 23 August 2024, p. 12.

[76]Red Meat Advisory Council, Submission 12, p. 6.

[77]Red Meat Advisory Council, Submission 12, p. 8.

[78]Mrs Katie Davies, Treasurer, Goat Industry Council of Australia, Committee Hansard, 22 November 2024, p. 28.

[79]Australian Dairy Industry Council, Submission 21, pp. 2–4.

[80]Mr Ben Bennett, President, Australian Dairy Farmers, Committee Hansard, Melbourne, 12 November 2024, p. 15.

[81]Australian Dairy Industry Council, Submission 21, p. 2.

[82]Australian Dairy Industry Council, Submission 21, p. 2.

[83]Australian Dairy Industry Council, Submission 21, p. 2.

[84]Australian Dairy Industry Council, Submission 21, p. 5.

[85]Mr Charles McElhone, General Manager, Sustainable Dairy, Dairy Australia, Committee Hansard, Melbourne, 12 November 2024, p. 16.

[86]Australian Dairy Industry Council, Submission 21, p. 6

[87]AUSVEG, Submission 15, pp. 6–7.

[88]AUSVEG, Submission 15, p. 8.

[89]Ms Josefine Petterson, Operations and Technical Manager, Australian Organic Limited, Committee Hansard, Canberra, 22 November 2024, p.36.

[90]Ms Josefine Petterson, Operations and Technical Manager, Australian Organic Limited, Committee Hansard, Canberra, 22 November 2024, p.36.

[91]Ms Josefine Petterson, Operations and Technical Manager, Australian Organic Limited, Committee Hansard, Canberra, 22 November 2024, pp.36–37.

[92]Australian Grape & Wine, Submission 9, p. 4.

[93]Australian Grape & Wine, Submission 9, p. 4.

[94]Australian Grape & Wine, Submission 9, p. 4.

[95]Australian Grape & Wine, Submission 9, p. 4.

[96]Australian Grape & Wine, Submission 9, p. 4.

[97]Spirits & Cocktails, Submission 33, p. 9.

[98]Spirits & Cocktails, Submission 33, p. 9.

[99]Mr Dan Hamilton, Chair, Spirits & Cocktails Australia and Managing Director, Diageo Australia, Committee Hansard, Canberra, 22 November 2024, p. 45

[100]Australian Automotive Dealer Association, Submission 7, p. 6.

[101]Australian Automotive Dealer Association, Submission 7, p. 7.

[102]Australian Automotive Dealer Association, Submission 7, p. 7.

[103]Department of Foreign Affairs and Trade, Submission 34, p. 2.

[104]Department of Foreign Affairs and Trade, Submission 34, p. 2.

[105]Department of Foreign Affairs and Trade, Submission 34, pp. 8–9.

[106]Department of Foreign Affairs and Trade, Submission 34, pp. 8–9.

[107]Department of Foreign Affairs and Trade, Submission 34, p. 7.

[108]Department of Agriculture, Fisheries and Forestry, Submission 28, p. 3.

[109]Department of Agriculture, Fisheries and Forestry, Submission 28, p. 3.

[110]Department of Agriculture, Fisheries and Forestry, Submission 28, p. 4.

[111]Department of Agriculture, Fisheries and Forestry, Submission 28, p. 4.

[112]Ms Jo Grainger, First Assistant Secretary, Trade and International Division, Department of Agriculture, Fisheries and Forestry, Committee Hansard, Canberra, 23 August 2024, p. 13.

[113]Department of Agriculture, Fisheries and Forestry, Submission 28, p. 4.

[114]Department of Agriculture, Fisheries and Forestry, Submission 28, p. 18.

[115]Austrade, Submission 29, p. 1.

[116]Austrade, Submission 29, p. 1.

[117]Austrade, Submission 29, p. 1.

[118]Austrade, Submission 29, p. 1.

[119]Austrade, Submission 29, p. 2.

[120]Department of Home Affairs, Submission 6, p. 3.

[121]Department of Home Affairs, Submission 6, pp. 3 and 7.

[122]Department of Home Affairs, Submission 6, p. 3.

[123]Department of Home Affairs, Submission 6, p. 4.

[124]Department of Home Affairs, Submission 6, p. 3.