![]() Foreign Investment into Australia changed and evolved significantly over the past few decades, from the traditional trade nations of the United Kingdom, United States and Europe to a stronger focus on Asia. This article examines partnership agreements with Australia's leading trade partners. China is now Australia's largest trading partner, accounting for nearly a quarter (23.9 percent) of Australian bilateral trade in terms of goods and services, valued at A$160 billion. This is followed by Japan in second place with (10.8 percent or A$72 billion), and then the United States with (8.7 percent or A$58 billion). Securing fourth place is Korea with (5.2 percent or A$35 billion). Together with the recently concluded Trans-Pacific Partnership Agreement, Asia related trade deals account for over 62 percent of Australia's export market. celebrated the 10th anniversary of the Australia-US Free Trade Agreement (AUSFTA), which came into effect on January 1, 2005. Two-thirds of all agricultural tariffs (including lamb, sheep meat and horticultural products) were initially eliminated, with a further 9 percent of tariffs cut to zero in 2008. More than 97 percent of non-agricultural tariff lines are now duty free and all agricultural tariffs are expected to be removed by 2022. The AUSFTA has enhanced the attractiveness of Australia to U.S. investors while, at the same time, has made the United States the most popular destination for outbound investment from Australia. In terms of tariff reduction, there has been a consistent increase in the volume of exports from Australia entering the U.S., tariff-free, from 46 percent in 2004 to 90 percent of exports in 2014. 11 other Pacific nations, concluded the world's largest regional agreement, the Trans-Pacific Partnership Agreement (TPP) on November 18, 2015, after seven years of negotiations. The TPP will generate stronger economic links between economies in the Asia Pacific region and the other participating countries, which account for around 40 percent of the global economy. The TPP is intended to refine and solidify existing World Trade Organisation (WTO) rules relating to copyright and patent laws and formulate new rules that would reflect modern economic development in the region, including Innovation technologies. Free Trade Agreement (ChAFTA) concluded in November 2014, after a decade of negotiation. The ChAFTA was finally signed on June 17, 2015. Once ChAFTA takes effect, approximately 86 percent of Australia's exports to China will enter tariff free, increasing to 96 percent upon full implementation. Based on 2014 statistics, the volume of bilateral trade between Australia and China was approximately AUD$160 billion. Key outcomes for Australia include, beef tariffs of 12 to 25 percent eliminated over nine years; dairy tariffs up to 20 percent eliminated within four to eleven years; wine tariffs of 14 to 20 percent eliminated over four years resources, energy and manufactured products (92.9 percent of China's current imports of these products) will be duty free with the remaining a broad range of clients, including financial institutions, multinational corporations, listed and unlisted public companies, small and medium enterprises and individuals. His clients represent a wide range of industries including commercial business, banking and finance, telecommunication service providers, resources sector, commercial property and manufacturing. in the areas of business investment, property and related commercial transactions involving the purchase and sale of various companies and businesses, undertaking due diligence and corporate advisory. Level 21, Riverside Centre 123 Eagle Street Brisbane QLD 4000, Australia byip@mullinslaw.com.au mullinslaw.com.au |