Free Trade Agreements: update Autumn 2019 Lachlan Crews Regional Trade Agreements Division Department of Foreign Affairs and Trade
WHAT IS AN FTA? A Free Trade Agreement is an international treaty that reduces or eliminates certain barriers to cross- border trade and investment.
WHAT DO FTAs DO? Better access to key markets; PLUS more investment and an improved competitive attractiveness and more position for Australia competitively-priced imported business inputs = Direct benefits for Australian business
AUSTRALIA’S ELEVEN FTAs WITH 18 COUNTRIES New Chile Singapore Thailand ASEAN* - New Zealand USA Zealand Japan China Malaysia Korea CPTPP** *ASEAN includes: Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Laos, Myanmar and Cambodia ** In addition to Canada and Mexico, CPTPP currently includes Australia, New Zealand, Singapore, Japan and Vietnam. Brunei Darussalam, Peru, Chile and Malaysia will join 60 days after their domestic ratification
Free Trade Agreements: Increasing amount of trade covered over time Future 2012-13 Current 100 Negotiating 80 60 In force In force and and 40 concluded concluded 20 In force 0 5
CPTPP: MAJOR TRADING OPPORTUNTIES FOR AUSTRALIA • 7 countries have ratified the CPTPP to date. • The CPTPP creates Australia’s first FTA commitments with Canada and Mexico, and provides improved export opportunities with existing FTA partners. • The CPTPP allows with other countries able to join in the future, if they meet the high standards in the agreement.
CPTPP MARKET ACCESS OUTCOMES: Goods exports: Services exports:
CHINA TRADE OUTCOMES NSW exports to China: Perfumery and Cosmetics ($'000) The Chinese tariffs on 50,000 Australian perfumery and 45,000 40,000 ChAFTA cosmetics (excl. soaps) 35,000 enters into force 30,000 exports ranged from 6.5 to 20 25,000 per cent before ChAFTA. These 20,000 15,000 tariffs were eliminated in 10,000 5,000 January 2019 under ChAFTA. 0 2015 2016 2017 2018
JAPAN TRADE OUTCOMES NSW exports to Japan: Beef (f.c.f) ($'000) 400,000 Japanese tariffs on Australian 350,000 JAEPA enters beef (f.c.f) exports were 38.5 into force 300,000 per cent before JAEPA. 250,000 200,000 Currently beef tariffs range from 150,000 26.6 per cent to 28.8 per cent. 100,000 50,000 0 2014 2015 2016 2017 2018
FTAs that are yet to enter into force A-HKFTA IA-CEPA PAFTA PACER Plus
INDONESIA – AUSTRALIA COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT: OUTCOMES: NOT IN FORCE GOODS SERVICES
AUSTRALIA-HONG KONG FREE TRADE AGREEMENT (A-HK FTA): OUTCOMES GOODS SERVICES
FTAs under negotiation and prospective FTA negotiations:
USING AN FTA – NOT BUSINESS AS USUAL The preferential tariff outcomes from FTAs DO NOT OCCUR AUTOMATICALLY Exporters and producers need to do something different from “business as usual”, as it was prior to these FTAs. +
USING AN FTA Proving the Australian “origin” of your product 1 2 3 4 5 > > > > WHAT ARE YOU HOW ARE YOUR MEETING THE CERTIFYING CLAIMING FTA EXPORTING GOODS TREATED RULES OF ORIGIN ORIGIN TARIFF PREFERENCE • Certify your Determine the Use the HS (tariff) Does your product Submit origin applicable HS code to identify the meet criteria for goods with a documentation to ‘Australian origin’ (tariff) Code tariff rate Certificate/ importing customs authority • Declaration of Origin
FTA utilisation KAFTA = +92% ChAFTA = +85 % JAEPA = 96% 16
FREE TRADE AGREEMENTS ARE PART OF THE PUZZLE Free trade Exchange Supply agreements rates and demand Quarantine, technical Ease of standards and doing regulations business
Non-Tariff Barrier (NTB): Action Plan and reporting website 18
FINDING YOUR TARIFFS ftaportal.dfat.gov.au
TWO SHORT VIDEOS DEMONSTRATING THE FTA PORTAL 20
Find information & advice at every stage of the export lifecycle 2 4 Austrade Department of Foreign www.austrade.gov.au Affairs and Trade www.fta.gov.au www.fta.gov.au Ph: 13 28 78 www.ftaportal.dfat.gov.au Ph: 02 6261 1111 1 AusIndustry 3 Efic www.business.gov.au www.efic.gov.au Ph: 13 28 46 Ph: 1800 093 724 21
FTAs - GUIDANCE AND INFORMATION AVAILABLE www.fta.gov.au
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