Free Trade Agreements: update Autumn 2019 Lachlan Crews Regional - - PowerPoint PPT Presentation

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Mar 19, 2023 294 likes •528 views

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

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Free Trade Agreements: update Autumn 2019

Lachlan Crews Regional Trade Agreements Division Department of Foreign Affairs and Trade

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WHAT IS AN FTA? A Free Trade Agreement is an international treaty that reduces or eliminates certain barriers to cross- border trade and investment.

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WHAT DO FTAs DO?

Better access to key markets; and an improved competitive position for Australia = Direct benefits for Australian business PLUS more investment attractiveness and more competitively-priced imported business inputs

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AUSTRALIA’S ELEVEN FTAs WITH 18 COUNTRIES

China Japan Korea Malaysia ASEAN* - New Zealand Chile Thailand USA Singapore New Zealand

*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

CPTPP**

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Free Trade Agreements: Increasing amount of trade covered over time

20 40 60 80 100 2012-13 Current Future

In force In force and concluded In force and concluded Negotiating

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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.

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CPTPP MARKET ACCESS OUTCOMES:

Goods exports: Services exports:

SLIDE 8 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 2015 2016 2017 2018

NSW exports to China: Perfumery and Cosmetics ($'000)

CHINA TRADE OUTCOMES

The Chinese tariffs on Australian perfumery and cosmetics (excl. soaps) exports ranged from 6.5 to 20 per cent before ChAFTA. These tariffs were eliminated in January 2019 under ChAFTA.

ChAFTA enters into force

SLIDE 9 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2014 2015 2016 2017 2018

NSW exports to Japan: Beef (f.c.f) ($'000)

JAPAN TRADE OUTCOMES

Japanese tariffs on Australian beef (f.c.f) exports were 38.5 per cent before JAEPA. Currently beef tariffs range from 26.6 per cent to 28.8 per cent.

JAEPA enters into force

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PAFTA FTAs that are yet to enter into force PACER Plus IA-CEPA A-HKFTA

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INDONESIA – AUSTRALIA COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT: OUTCOMES: NOT IN FORCE

GOODS SERVICES

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AUSTRALIA-HONG KONG FREE TRADE AGREEMENT (A-HK FTA): OUTCOMES

GOODS SERVICES

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FTAs under negotiation and prospective FTA negotiations:

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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.

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USING AN FTA Proving the Australian “origin” of your product

WHAT ARE YOU EXPORTING HOW ARE YOUR GOODS TREATED MEETING THE RULES OF ORIGIN CERTIFYING ORIGIN CLAIMING FTA TARIFF PREFERENCE

1 5 2 3 4

Determine the applicable HS (tariff) Code Use the HS (tariff) code to identify the tariff rate Does your product meet criteria for ‘Australian origin’

Certify your

goods with a Certificate/

Declaration
f Origin

Submit origin documentation to importing customs authority

> > > >

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FTA utilisation

ChAFTA = +85 % JAEPA = 96% KAFTA = +92%

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FREE TRADE AGREEMENTS ARE PART OF THE PUZZLE

Free trade agreements Supply and demand Exchange rates Quarantine, technical standards and regulations Ease of doing business

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Non-Tariff Barrier (NTB): Action Plan and reporting website

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FINDING YOUR TARIFFS ftaportal.dfat.gov.au

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TWO SHORT VIDEOS DEMONSTRATING THE FTA PORTAL

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Find information & advice at every stage of the export lifecycle

AusIndustry www.business.gov.au Ph: 13 28 46

Austrade www.austrade.gov.au www.fta.gov.au Ph: 13 28 78

Efic www.efic.gov.au Ph: 1800 093 724

Department of Foreign Affairs and Trade www.fta.gov.au www.ftaportal.dfat.gov.au Ph: 02 6261 1111

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FTAs - GUIDANCE AND INFORMATION AVAILABLE www.fta.gov.au