...speeds up the free trade agreement between China and Australia. By the increasing globalisation which results from the „merging of historically distinct and separate national markets into one huge global market", the significance of free trade agreements is getting more and more important between the countries to remain competitive and to participate in the progress. (textbook S.12). Given that China is Australia´s most important trading partner, this assignment picks out as a central theme “The economic impacts of an Free Trade Agreement between Australia and China and shows in particular the effects for the domestic industry and for the international industry. What is a Free Trade Agreement (FTA)? Free Trade means „the absence of barriers to the free flow of goods and services between countries“. (Textbook S.76). Another definition says that “Free Trade refers to a situation in which a government does not attempt to restrict what its firms and citizens can buy from or sell to another country”. (Textbook S.119). A Free Trade Agreement is consequently a contract which is concluded between two or several countries to establish a free trade area in which trade in goods and services can be conducted across their borders, without tariffs or obstacles (e.g. ban on imports/exports). Previous bilateral economic relationship and agreements between Australia and China: The basis for the bilateral trade and economic relationship was the signing of the “1973 Trade Agreement between the...
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...FTA Rules Question #2 Since January 1st, 1994 all FTA rules were replaced by NAFTA rules of origin. They differ in the respect that they are much clearer and predictable than those of the FTA. Similar to the FTA each member country of NAFTA is able to keep in use its own external market tariff. This external tariff can be in the form of a most favoured nation (MFN) tariff in which the NAFTA would extend only to good that have originated in a NAFTA member country. In contrast to the FTA, the NAFTA provides specific preferential tariff treatment for not only some but ALL North American goods traded across Canadian, U.S. and Mexican borders. The rules of origin in the NAFTA are specifically used to determine the credibility of whether or not a product can be declared as originating in North America. In addition, NAFTA rules of origin strictly ensure that the benefits are available only to those good which meet specific rules of transformation. Specifically for apparel the NFTA provides more stringent rules of origin compared to the FTA. In contrast to the FTA the NFTA requires that the yarn, fabric and garment in ALL be made in North America in order to meet specific rules of origin that qualify them for NAFA preferential duties. Therefore any goods from all three NAFTA member countries that are wholly sourced or manufactured in the three countries are deemed originating goods that are entitles to preferential tariff treatment...
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...1. Mexico has always portrayed itself as one of the most pro-trade countries in the world. For instance, we have a free trade agreement with the United States and Canada, and another one with the European Union. We are active members of the WTO, the OECD, the APEC, the Pacific Alliance, and have also signed multiple bilateral agreements with many nations, most of them deemed “strategic”. Answer the next two questions in your own words: a. What are the potential costs and benefits of adopting such a free-trade strategy? The benefits when a country trades freely with other nations, consumers in that country have access to a wider variety of products. Some of these products may not otherwise be available if the consumers were limited to domestically manufactured goods. Or these products may be prohibitively expensive without a free trade arrangement. Also can boost the quality of life along the countries' shared border. This is the case with the Texas-Mexico border. After the creation of NAFTA, the area servicing the transfer of goods between the U.S. and Mexico experienced an economic boom. Five years after the free trade agreement, John Adams Jr., vice chairman of the Industry Sector Advisory Council, noted that this border area was growing economically at a faster rate than any other region on the planet. And the potential costs U.S. exports tend to create jobs in this country, but increases in imports tend to reduce jobs because the imports displace goods that...
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...Executive Summary Traditionally, Australia-China trade & economy was simple. Australia met the demand for raw material for China’s manufacturing & China exporting back to Australia its finished manufactured goods. Thus China-Australia became each other’s largest trading partners. Now that China’s economy is affected, less spending on infrastructure the demand has shifted from raw materials & commodities to other specialized manufactured equipment, services like health, education, financial, engineering, agriculture etc. for which Australia has to change gears to gain distinctive advantage to its other competitors. However in Chinese economy there still exists substantial market for Australian commodities, such as wool, wines, wheat, minerals & iron ore, as Australia has advantage of nearness by sea for the shipping lines. The Free Trade Agreement is a win-win situation as Australia can easily meet the changed needs of Chinese for sophisticated medical goods & services in Health, Social Security, Human Resources, Banking, Education, Legal, Agriculture, Winery & Dairy. China’s economic woes & slowdown in addition to general economic slump has impacted Australia hard, specially the mining cum trading houses at present. This impact is not limited to just Australia but whole of Asia-Pacific, lain America & Canada. Thus to conclude, there are some positives about the Australian economy as GDP growth is up from the last year & China needs Australia, as it shall always...
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...President Donald Trump’s plan to impose tariffs on imports could trigger a trade war. His plans include global tariffs of 25% on steel and 10% on aluminum. Officials worry about the consequences of a trade war and urge the White House to not act on it. Even top Republicans have tried to warn Trump that tariffs are a bad idea. Since then, Trump has tried to renegotiate the Free Trade Agreement with Canada and Mexico because of large trade deficits. U.S. officials were hoping this new approach would help accelerate the process of rewriting the 24 year old trade agreement. But the two countries suggest that the threats from Trump did not settle well with them. Mexico’s economy minister discussed the matter with a U.S representative and overall...
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...NAFTA (North American Free Trade Agreement) and Its Advantages in Mexico Regional Integration is described as a process in which states enter into a regional agreement in order to enhance regional cooperation through regional institutions and rules. North American Free Trade Agreement was the removal of barriers between Mexico and the United States. It was the phasing out of virtually all restrictions on trade and investment flows. “The expanded trade resulting from NAFTA has raised the United States' gross domestic product very slightly. (The effect on Mexican GDP has also been positive and probably similar in magnitude. Because the Mexican economy is much smaller than the U.S. economy, however, that effect represents a much larger percentage increase for the Mexican economy.)” (The Effects of NAFTA on U.S. –Mexican Trade and GDP, May 2003). Over the years NAFTA has helped Mexico to improve on their exports and imports trading with the United States. NAFTA has had a positive effect dealing with the international investments. This is because some of the restrictions Mexico had on their foreign investment dealing with the ownership of capital. NAFTA also allowed Mexico to do away with tariffs and quotas. This allowed Mexico to become a profitable place to invest, in plants and assembling of products in the United States. NAFTA eliminating the tariffs in Mexico helped to reduce the different license requirements and restrictions on foreign investment. This meant that it would...
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...NAFTA NAFTA is a highly controversial free trade agreement between the countries of Canada, Mexico and the USA. I believe it has more benefits than drawbacks as it has quadrupled trade, lowered prices, increased economic growth and created jobs. Trade The trade between the three countries quadrupled, from $297 billion to $1.14 trillion (Advantages of NAFTA). Which in turn boosted economic growth, profits, and jobs. As well it lowered prices for consumers. A huge reason for the boost in trade between them is because with trade you do away with tariffs that you would usually encounter with other countries. With the cost of trade lowered it was a huge help to small businesses and business owners, now they had a better chance at expanding their businesses. Imports and Exports With lower tariffs the price of imports grew less and less. This is a huge factor for oil prices since instead of getting oil from the Middle East it could be imported from Mexico or the USA. Not only oil had a huge decrease in price and how much could be imported but fresh fruit, which is usually quite expensive, dropped in value and rose in imports. Natural Resources...
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...| IMPACT CHINA ASEAN FREE TRADE AGREEMENT (CAFTA) ON INDONESIA ECONOMYWritten by Yuliana (15 Jan 2015)Overview of ASEAN – CHINA Free Trade Agreements In November 2001, ASEAN and China agreed to launch negotiations for an ASEAN-China Free Trade Area (ACFTA). In the following year, ASEAN and China signed the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China.The objectives of this Agreement are to: (a) | strengthen and enhance economic, trade and investment co-operation between the Parties; | (b) | progressively liberalise and promote trade in goods and services as well as create a transparent, liberal and facilitative investment regime; | (c) | explore new areas and develop appropriate measures for closer economic co-operation between the Parties; and | (d) | facilitate the more effective economic integration of the newer ASEAN Member States and bridge the development gap among the Parties. | | | | The Agreement on Trade in Goods was signed in 2004 and implemented in 1 July 2005 by the ASEAN countries and 20 July 2005 by China. Under this Agreement, the 6 original ASEAN members and China have to eliminate tariffs on 90% of their products by 2010, while Cambodia, Lao PDR, Myanmar and Vietnam, have until 2015 to do so. | | | | | | The Trade In Services Agreement entered into force in July 2007. Under this agreement, services and services suppliers/providers in the region will enjoy improved market access and national treatment...
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...Тhе Nоrth Аmеriсan Frее Тradе Аgrееmеnt сrеatеd a prеfеrеntial tariff arеa amоng thе Unitеd Ѕtatеѕ, Canada, and Mеxiсо bеginning оn January 1, 1994. Hоwеvеr, thе drivе fоr rеgiоnal есоnоmiс сооpеratiоn had bеgun aѕ еarly aѕ 1851 with bilatеral frее tradе nеgоtiatiоnѕ bеtwееn thе Unitеd Ѕtatеѕ and Canada. А frее tradе arеa invоlving thе Unitеd Ѕtatеѕ and all оf Latin Аmеriсa waѕ advосatеd by U.Ѕ. ѕесrеtary оf ѕtatе Jamеѕ Blainе in 1881. Тhе firѕt ѕuссеѕѕful еffоrt, hоwеvеr, waѕ thе landmark 1965 agrееmеnt that allоwеd duty-frее tradе in autоmоbilеѕ and оriginal еquipmеnt partѕ bеtwееn thе Unitеd Ѕtatеѕ and Canada. Тhе rеѕulting еxplоѕiоn оf tradе in thе autо ѕесtоr--frоm $625 milliоn in 1964 tо оvеr $40 billiоn (abоut a third оf tоtal U.Ѕ.-Canadian tradе) by 1984--mоtivatеd thе Canada Unitеd Ѕtatеѕ Тradе Аgrееmеnt (CUЅТА), whiсh еxpandеd frее tradе tо mоѕt есоnоmiс ѕесtоrѕ bеginning in 1989. Mоѕt оf CUЅТА'ѕ prоviѕiоnѕ wеrе rеtainеd in NАFТА, whiсh tооk еffесt in 1994 aftеr ratifiсatiоn prосеѕѕеѕ in all thrее соuntriеѕ rеvеalеd соnѕidеrablе publiс unеaѕinеѕѕ оvеr iѕѕuеѕ соmmоnly aѕѕосiatеd with thе dilеmmaѕ оf tradе. (Ѕtеphеn J. Randall, Hеrman W. Kоnrad, 1995). Аlthоugh ѕоmе оf thе mоtivatiоnѕ fоr CUЅТА/NАFТА parallеl thоѕе оf thе EU, bоth thеir prоviѕiоnѕ and thе inѕtitutiоnal ѕtruсturеѕ that ѕuppоrt thеm arе vaѕtly diffеrеnt. NАFТА iѕ indiѕputably an есоnоmiс agrееmеnt, laсking bоth thе brоadеr ѕосial and pоlitiсal ѕwееp оf thе EU--it соntainѕ nоthing rеѕеmbling thе EU'ѕ...
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...Current Event: Free Trade Agreements with Colombia, Panama, and South Korea On October 12, 2011, Congress passed the free trade agreements between the United States, Colombia, Panama, and South Korea after waiting almost five years after the Bush administration first introduced the idea, but failed in Congress by the Democrats. According to President Obama, this is a victory and it will be a win-win situation for all the counties involved. A developed country like the United States turn to free trade agreements with emerging countries to help build their economy and hopefully reduce the chances of another recession. According to South Korean President Lee Myung Bak, he agrees this agreement is a “win-win” for all the countries because this “will create more jobs, generate more trade and stimulate our economies.” The largest benefit the South Korean accord and the United States has will be the United States exporting automobiles and car parts to South Korea is expected to increase up to 54%. Colombian President Juan Manuel is looking forward to this agreement, but Tarsicio Mora, the President of Colombia’s labor federation has some concerns. Mora is opposed to the agreement because Colombia’s economy is not developed enough to handle trade with the United States and their country is not in a stable condition to compete. From these agreements come many benefits such as: an economic boost, U.S. exports expected to increase by more than 13 billion per year, add 300,000 jobs...
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...Roledany David International Marketing Case 3-2 US and South Korea Sign Free Trade Agreement Many may ask why nations trade with each other. The answer to that question is that it provides those nations access to more goods and services at much lower prices. Whenever nations trade amongst one another, there are always winners and losers. The side who stands to win if congress ratifies the US-Korea free trade agreement would be Korea. The side that would stand to lose would be the United States. In the United States the United Auto workers supported Korea trade deal. It was mostly due to the fact that they wanted to have the ability to export a large amount of vehicles and have many of the tariffs that were in there way removed. They see it as a landmark trade deal. Companies such as Ford were very disturbed by their limitations prior to the removal of the tariff. There are many reasons as to why the Global Automotive Industry was a lot of the time at the center of disagreements over trade relations. One of the reasons is that a reduction in South Korea’s tariffs would boost exports from the United States by 11 billion each year. Many US automakers stand to benefit from improved access to 48 million people. They show one of the largest interest because they have a large amount they could lose if things don’t go there way and a lot to gain if things go their way. They show the largest financial gain from a deal than many other American companies that have interest in trading...
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...Based on some reliable source, Economic integration is an economic arrangement between different regions marked by the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. Well basically in my own perspective, Economic Integration is a process of agreement in which two or even more parties, in this case country states, agreed to reduce or remove a trade barriers for the advantages of both parties. Economic Integration is often has a specific motives that drive, the driven parties to create one. Like for an example the Regionalism...
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...established by economists who investigated the early attempts of European countries to combine separate economies into larger economic regions.18 More specifically, economic integration—also called “regional integration”—refers to the discriminate reduction or elimination of trade barriers among participating nations. This also implies the establishment of some form of cooperation and coordination among participants, which will depend on the degree of economic integration that ranges from free-trade areas to an economic and monetary union. Integration among countries in a geographical region to reduce, and ultimately remove, tariff and non-tariff barriers to the free flow of goods, services, and factors of production among each other. For examples: EU (European Union), NAFTA (North American Free Trade Agreement), APEC (Asia Pacific Economic Cooperation) Level of economic integration: The levels of economic integration divided into five different levels and they are shown in figure 1.0. The first one is the Free Trade Area, Custom Union, Economic Union, Monetary Union and then the political union. These five levels are inter- linked with each other; first we have to have the come up with the identification of the free trade area among the participant. Than to ensure the exchange of the goods among the participant a custom union will be required. This custom union will provide the facilities to and check in and check out of the goods through the custom house where representative from every...
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...The United States has strongly supported trade liberalization since the end of World War II, mainly by the removal of trade barriers such as quotas, subsidies, and tariffs. America has pursued multilateral negotiations for years with a number of countries through the General Agreement on Tariffs (Gabriel. H, Oct, 2007). On April 4th, 2007, after 10 months of negotiations, the United States concluded a free trade agreement with South Korea, which was the most important since the 1994 NAFTA (Gabriel. H, Oct, 2007). According to the Office of the U.S. Trade Representative, today South Korea is the world’s 10th-largest economy and America’s 7th-largest trading partner. The KORUS FTA is expected to abolish about 95 percent of tariffs on all industry within three years (Gabriel. H, Oct, 2007). It is not easy to affirm that who is the winner and who is the loser between the two countries of KORUS FTA, which was finalized at March 15th, 2012. However, as considering the domestic situation for each country, there are clear winners and losers. First, on the side of the United States, the winners include international financiers who will benefit from foreign investor rights and auto makers who will benefit from increased auto-exports (California Fair Trade Coalition, n.d.). On the other hand, the losers are manufacturers, workers, farmers, and consumers who will lose their competitive powers from decreased benefits (California Fair Trade Coalition, n.d.). In addition, on the side of South...
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...e Table of Content Declaration of Originality 2 Acknowledgements 3 Introduction 4 Economic Integration: Definition 5 Background of Free Trade in the South Pacific 6 PICTA 7 PACER 7 Advantages and benefits of Economic Integration 9 Drawbacks of Regional Economic Trade 11 Resolution 15 Conclusion 17 Bibliography 18 Appendices 19 Declaration of Originality We declare that this is our original work and all borrowed works had been cited and referenced. s11061729 Elizabeth Pearl Blakelock s11074679 Ranjeeta Devi s93005349 Mosese Vosarogo Acknowledgement We acknowledge our Instructor Mr Atishwar Pandaram for for the learning, Mr William Kurt of Cost-U-Less for allowing us time to interview him and for the valuable information and also Mr Aslam Janiff of Kundan Singh Supermarket and Andrew Powell Rajendras FoodTown Supermarket for giving their time to attend to us. Introduction In this project, we will attempt to highlight the implications of free trade amongst the south pacific island countries that are under the auspices of the 'The Pacific Islands Forum'. PIF is an inter-governmental organization that aims to enhance cooperation between the independent countries of the Pacific Ocean...
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