A Countrys Trade Policy Economics Essay

A countrys trade policy can do a large influence on the state sum of international trade. The influence can be divided into many parts, such as the duties, services and trade understandings. I can besides be present in two parts: the import and export. Australia is a large island state with a low population and the international trade is an of import portion of its economic system. For this ground, it is deserving for us to do a research about the relationship between the policy of Australia ‘s international trade and the sum of it.

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Australia ‘s huge land country and comparatively little population leads to a little domestic market, so international trade plays an of import function in Australia ‘s economic system. In that ground, the policy of trade in Australia ever decided by the authorities carefully. To advance the sustainable development of the national economic system, since the 1980s, the authorities began to alter the Internal-oriented economic system into export-oriented economic system. The Australian authorities bit by bit realized that the development of export-oriented economic system can interrupt through the restrictions of the little domestic market, better the international fight of endeavors, and the growing of the export can besides better the international balance of payments state of affairs, therefore they begun to concentrate on the development of export-oriented economic system, in order to increase exports to hike the national economic system development.

Australia ‘s trade policy are inclined to the constitution of a strong rules-based international trading system, the system should guarantee that entree to foreign markets for Australian goods and services.

Australia insisted that the execution of planetary trade liberalisation policy of the Government to implement the many-sided trading system and regional trade and bilateral free trade understandings in the same clip. In many-sided Fieldss, Australia promote the procedure of a new unit of ammunition of many-sided trade dialogues actively, and plays an of import function in the dialogues on rational belongings, agribusiness dialogues ; utilize the scheme of market variegation in bilateral Fieldss ; Promote the procedure of Macao and the United States, Australia and New Zealand, Macao and Thailand free trade understanding dialogues, and develop the trade dealingss with China, Japan, ASEAN, Middle East and Latin America states activity at the same clip.

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Under this series of propositions, the Australian Government introduced a series of policies to better the state ‘s import and export. The effects will be present in two ways: the export and the import.

The consequence of the policy for export


A duty is a sort of revenue enhancement that imposed on imports or exports in and out of a state. There are two sorts of duties: import duties and export duties. Both two duties have the same intent but different use. They are used to modulate the national economic system and foreign trade.

Export duties

The export duties can do a large influence on the sum of the export. The higher the duties are, the higher monetary value it should hold, so the export goods will lose the advantage of the monetary value when compared with other goods. The Alan Oxley ‘s research ( 2000 ) pointed out that Australia should cut down its general duty and it could better the Australian economic system, strengthen the planetary competitory power and the influence of Australian ‘s fabrication, to do the end that procuring an unfastened planetary economic system as the most of import end for Australia ‘s trade policy.

In order to promote the export, from 2000, the Australia ‘s Customs merely take the export revenue enhancement on Coal and U, other merchandises are duty free. For that ground the monetary value of export goods are much more competitory and the sum of export addition quickly.

Another policy to promote export is export revenue enhancement discount. Australian Government uses the export revenue enhancement discount policy to re-export those imported merchandises through imposts. The specific content of the policy is: the makers can bespeak a refund import duties if goods imported into the district of Australia, processing and so continue or made aˆ‹aˆ‹into parts of other merchandises for re-export. If the imported goods without used are used for re-export, duties can besides be returned to makers. From the curve we can cognize that there is a rapid addition for Australia ‘s export since 2000. After that the export keeps in a addition inclination.

Import duties

Impose import duties will increase the cost and the market monetary value of the imported goods. It will besides impact the figure of it. The intent of the import duties is to protect their industrial and agricultural production, besides as an economic lever to set their production and economic development. The Australia authorities makes different import duties for different states.


Australia ‘s service export is about the same size as the industries exports and larger so rural exports, which is an of import portion for the whole international export trade.

The service includes several parts: touristry, instruction, rider conveyance, concern services and other authorities services. The touristry takes the dominant place. From the curve below we can cognize that personal travel is the taking portion in the service, about one Forth of them.

The Australia authorities is seeking to advance their service export to the planetary market, even though there are still some barriers and jobs. The curve shows that the sum of import and export keep turning from 1993 to 2003 and the spread between them is acquiring smaller, which means that the export of services grows faster so import.

WTO members ( including Australia ) sign the first trade understanding in 1995, which include the service trade. In the Doha acme in 2001, the Australia authorities promotes a declaration to cut down the barriers of the services export. McLachlan, Clark and Monday ( 2002 ) points out that cut down these barriers would raise Australia ‘s one-year income on the service export by around USD $ 3 billion, and the universe ‘s income by around USD $ 130 billion.

The Productivity Commission ( 2005 ) shows that the Australia ‘s authorities will see to put $ 0.1 billion in duties per twelvemonth to back up the touristry and to advance the development of export of service.

Trade understanding

Free trade understanding is a pact that between two or more states to set up a free trade country without duties or barriers for the trade of goods or services. It ever used by authoritiess as a policy to set the development of a county ‘s international trade.

The Australia authorities uses the free trade understanding as an of import tool to set up a planetary trade system and extent the oversea market. Some free trade understandings have a major impact on Australia ‘s international trade and will be presented in this paper.


SAFTA is short for The Singapore-Australia Free Trade Agreement. Singapore is Australia ‘s largest trade and investing spouse in South-East Asia. SAFTA plays an of import function in the economic relationship between Singapore and Australia. SAFTA come into force on 28 July 2003. It is the first clip for Australia to subscribe a bilateral free trade understanding with other states since 1983 mark the Closer Economic Relations Trade Agreement with New Zealand. In 2010, harmonizing to the Department of Foreign Affairs and Trade web site, the sum of trade between Australia and Singapore is AU $ 21,607 billion. The saloon chart shows that Singapore takes the taking place amount the South-East Asia states while merchandising with Australia.


AUSFTA is short for The Australia-United States Free Trade Agreement, which is an understanding signed between Australia and United States, the universe ‘s most of import economic systems. The AUSFTA is a long-run construction and a sort of promise for Australia to beef up the economic relationship with the United State in all parts. .

This Agreement makes a large influence to maintain Australia at the taking border of growing and fight. Under this understanding, the sum of trade with Australia and United States is AU $ 54,171 billion.


ACFT is short for The China-Australia Free Trade Agreement.

China has become Australia ‘s largest bipartisan trading spouse and has an of import province to Australia ‘s future economic prosperity.

Both Australia and China ‘s international trade are in a quickly turning, and the economic relationship between these two states is ever strong. For both authoritiess, the major precedence is to beef uping and farther intensifying this relationship to prolonging the impressive trade and investing public presentation achieved in the past two decennaries.

On 18 April 2005, the two authoritiess agreed to began a dialogue on a Free Trade Agreement after a survey about the possibility for these two states make a free trade understanding. The survey was completed in March 2005, and the brand an understanding about that there would be important economic benefits for both Australia and China through the dialogue of an FTA. Many issues are covered in the dialogues: agricultural duties, manufactured goods, services, impermanent entry of people and foreign investing.

In 2011, the sum of the trade between Australia and China is AU $ 121.1 billion.


McLachlan, R, Clark, C and Monday, I 2002, Australia ‘s Service Sector: a Study in Diversity ( particularly Chapter 5 ) , Productivity Commission Staff Research paper, March, AusInfo, Canberra.


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