
Making the most out of the Australia-United States Free Trade Agreement (AUSFTA)
The Australia-United States Free Trade AgreementĀ (AUSFTA) holds ample opportunities for Australian businesses to expand into the US market. This begins with knowing what theĀ AUSFTAĀ is all about and how to utilise its benefits. In this article, we break down the components of theĀ AUSFTAĀ and its possibilities for businesses.
The Australia-United States Free Trade AgreementĀ (AUSFTA) is significant for both Australia and for the US. It allows for greater flows of goods, services and capital in both directions.Ā The agreement significantly reduces tariff and non-tariff barriers and opens up theĀ Australian market toĀ USĀ investors while the US allows similar access to Australian investors.
This has not only opened up opportunities for trade between the two countries, but also provides mutual economic benefits such as investment opportunities, enhanced business relationships, and jobs creation. For this reason,Ā AUSFTAĀ has been met with optimism as it promises economic growth for both nations by reducing bureaucracy, providing suppliers with secure access to markets and promoting trade competition.
Business use case forĀ free trade agreements
TheĀ AUSFTAĀ is the firstĀ free trade agreementĀ entering into force with Australia and is essential forĀ businesses to expandĀ global tradeĀ from increased access to theĀ USĀ market. The agreement facilitates the expanding of exports such as beef, dairy and wine from Australia to theĀ US, while allowingĀ USĀ health products, computer accessories and telecommunication equipment to benefit from lower duties inĀ Australia.
This will not only create greater investment opportunities but also encourage further cooperation in research and technological innovation.Ā AUSFTAĀ will lead to deeper economic ties between both countries as Australia'sĀ exportsĀ increase and our nation is exposed to more international growth opportunities.
Free trade agreementsĀ have long been a useful tool for businesses, as these can enable them to access new markets and seize exclusive opportunities. However, there are still large knowledge gaps regarding free trade agreements like theĀ AUSFTA,Ā NAFTAĀ and AANZFTA, preventing businesses from making full use of theĀ free trade agreementsĀ available to them to support their export strategy.Ā
For instance, despite the landmark agreement between Australia and North America, a quarter of Australian exporters remain unaware of theĀ AUSFTAĀ āĀ highlighting just how much potential is lost without comprehensive resources related to theĀ free trade agreements. Therefore, it'sĀ critical for companies looking to expand into international markets to be more informed about the differentĀ free trade agreementsĀ in place with Australia so they can make the most out of their exports.