Trade Agreements Between Australia and Canada: Strengthening Economic Ties

Trade relations between countries are essential for the growth and development of their respective economies. In recent years, Australia and Canada have been strengthening their trade ties through various agreements. These agreements have simplified cross-border trade, reduced tariffs and non-tariff barriers to trade, and provided a stable business environment for investors. In this article, we will discuss the trade agreements between Australia and Canada and their impact on the two countries` economies.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, also known as CPTPP, is a free trade agreement signed between 11 countries, including Australia and Canada. The agreement came into effect in December 2018 and aims to promote free trade and economic integration among member countries. The agreement covers a wide range of areas, including goods, services, investment, intellectual property, and government procurement.

Under the CPTPP, Australian exporters can now access the Canadian market on better terms. Canada has eliminated tariffs on 98% of Australian goods from the date of implementation. This has significantly improved the competitiveness of Australian goods in the Canadian market. Similarly, Canada has received preferential access to the Australian market, with tariffs being eliminated or reduced on a variety of Canadian goods.

In addition, the CPTPP agreement includes provisions for protecting intellectual property rights. This provides greater certainty and protection to Australian and Canadian investors and businesses that rely on innovation and creativity to remain competitive.

Australia-Canada Trade Agreement (ACFTA)

The Australia-Canada Trade Agreement (ACFTA) is a bilateral free trade agreement between the two countries. The agreement came into effect in 2010 and covers a range of areas, including goods, services, investment, and government procurement.

Under the ACFTA, Australian exporters have seen a significant reduction in Canadian tariffs. This has led to an increase in Australian exports to Canada, particularly in sectors such as wine, meat, and dairy. Canadian exporters have also benefited from improved access to the Australian market on better terms.

The ACFTA has created a stable and predictable business environment for investors and businesses in both countries. This has encouraged increased investment and the development of closer economic ties between Australia and Canada.

Conclusion

The trade agreements between Australia and Canada have provided a significant boost to their respective economies. These agreements have created a more open and competitive trading environment, reduced tariffs and non-tariff barriers to trade, and provided greater certainty and protection for businesses. The CPTPP and ACFTA agreements have also strengthened the economic relationship between the two countries and provide a solid foundation for future collaboration and trade.