Australia and Asia the economic brothers

Australia Asia Trade

Australia and Asia are natural partners and this has been proven over the centuries. Australia is the  largest trade partner of Asia and according to trends soon it will topple Canada as the second largest investor.

Almost tow thirds of exports from Australia land as imports to the Asian nations. It is due to proximity and due to competitive pricing and policies.The Australian government has played a very important role in building the relationship.

  • Reforms – Australia sensed the importance of Asian markets much before Europe and Americas. Hence policies were framed accordingly. The policies encourage trade with the Asian nations which are one of the most lucrative markets for companies all over the world. The decision taken with vision has helped Australia to become the biggest trade partner of Asian nations.
  • Removing Restrictions – Australia has made special provisions to remove trade restrictions and that has helped to capture the markets in Asia. China one of the largest economies of the world has a long-term relation with Australia.
  • Building a competitive workforce – Australia has made immigration laws better for Asian nations helping it to build a competitive workforce. The Asians have made Australia a  place to invest due to lowered wage patterns.

The APEC (Asia-Pacific Economic Co-Operation) has also been responsible for building the trade relations. Australian economy has been robust due to strong presence in Asia even during the economic crisis which affected the whole world. Asia also benefited from the relation, and recovered quite quickly from the effects of the crisis. Australia and Asia are truly brothers economically. Read more here for updates.

Advertisements

Australia and China enter into economic deal

After a decade of negotiations and talks, Australia and China are going to enter into a free trade agreement together. The deal will be drafted and signed in 2015 and will promote the existing economic relations between the countries.

This deal will benefit Australia, for it will provide local winemakers, dairy farmers, and other professionals tariff free access to Chinese markets. 85% of Australian export to China (including beef, leather and minerals) will be freed from tariffs. The Chinese market is quite substantial in size and it will prove to be a goldmine for Australian suppliers in the future. China, on the other hand, will be able to export shoes, vehicles, clothes and electronics into Australia, duty free. China will also be able to invest up to the tune of 1.02 billion in the Australian market, without being subject to governmental review. Regulations in the service sectors of both the countries will be loosened.

Australia- China conclude trade agreement

Australia has been promoting it’s relationship with South Asian countries over the past few years. The area is valuable in terms of trade, and in terms of market.  This is the third economic fair trade agreement Australia has signed with a South Asian country in the past year- previously, treaties were signed with South Korea and Japan.