Outline Changes in Australia’s Protectionist Policies and Critically Analyze the Impact of These Changes on the Australian Economy Essay Example
Outline changes in Australia’s protectionist policies and critically analyze the impact of these changes on the Australian economy
Since the 1970s Australia has moved from being highly protectionist economy to being one that embraces free trade and integration into the world economy. The focus of government policy has been active participation in cooperative attempts to reduce protection through participation in world trade organization (WTO), the Asia Pacific Economic Cooperation forum (APEC), and more recently through a series of bilateral free trade agreements. Australia has also implemented unilateral actions to reduce its protection levels with the result that the Australian economy has been transformed, becoming one of the most open economies in the world.
There have been a number of key changes in Australia’s protectionist policies. Up until the 1960s Australia’s level of protection was high, now however more then half of imported goods have no tariffs. Most other imports have a maximum of a 5% tariff imposed. Two industries are found to receive special protection, Passenger Motor Vehicles (PMV) and textiles, clothing and footwear (TCF). Australia’s one of the least protectionist economies in the world. It now provides a Export Market Development Grant scheme, reimbursing exporters for some of their costs in promoting their exports in new markets. Each year over $150 million in grants are provided to more then 4000 Australian businesses.
Australia’s reduction in protection levels have gone beyond those required by international trade agreements such as the WTO agreements and the APEC forum. Australia and New Zealand are almost alone amongst advanced economies in pursuing these unilateral reductions. However, in recent years there has been a shift to bilateral agreements, including that with the New Zealand, Singapore, Thailand and the USA. USA’s Free Trade Agreement began in 2005. Since then PMV tariffs have been abolished and now more USA cars are
Since the 1970s Australia has moved from being highly protectionist economy to being one that embraces free trade and integration into the world economy. The focus of government policy has been active participation in cooperative attempts to reduce protection through participation in world trade organization (WTO), the Asia Pacific Economic Cooperation forum (APEC), and more recently through a series of bilateral free trade agreements. Australia has also implemented unilateral actions to reduce its protection levels with the result that the Australian economy has been transformed, becoming one of the most open economies in the world.
There have been a number of key changes in Australia’s protectionist policies. Up until the 1960s Australia’s level of protection was high, now however more then half of imported goods have no tariffs. Most other imports have a maximum of a 5% tariff imposed. Two industries are found to receive special protection, Passenger Motor Vehicles (PMV) and textiles, clothing and footwear (TCF). Australia’s one of the least protectionist economies in the world. It now provides a Export Market Development Grant scheme, reimbursing exporters for some of their costs in promoting their exports in new markets. Each year over $150 million in grants are provided to more then 4000 Australian businesses.
Australia’s reduction in protection levels have gone beyond those required by international trade agreements such as the WTO agreements and the APEC forum. Australia and New Zealand are almost alone amongst advanced economies in pursuing these unilateral reductions. However, in recent years there has been a shift to bilateral agreements, including that with the New Zealand, Singapore, Thailand and the USA. USA’s Free Trade Agreement began in 2005. Since then PMV tariffs have been abolished and now more USA cars are