Free Trade Agreement Between Canada and Australia: Benefits and Implications
The Canada-Australia Free Trade Agreement (CAFTA) is a comprehensive trade deal that was signed between the two countries in 2018. The agreement aims to strengthen economic ties between Canada and Australia by removing trade barriers and promoting investment.
Both countries have a lot to gain from this agreement as they are each other`s top trading partners. Canada is Australia`s 13th largest trading partner, while Australia is Canada`s 19th largest. The total trade between the two countries was worth $7.5 billion in 2019, which is expected to increase significantly in the coming years.
Here are some of the key benefits and implications of the Canada-Australia Free Trade Agreement:
1. Increased trade in goods and services: The agreement will eliminate tariffs on a wide range of goods, boosting trade in sectors such as agriculture, resource and energy, and manufacturing. This will also open up new opportunities for Canadian businesses to sell their products and services to the Australian market, and vice versa.
2. Improved investment climate: The agreement will provide greater protection and transparency for Canadian and Australian investors who are looking to invest in each other`s markets. This will increase the flow of foreign direct investment, create jobs, and stimulate economic growth.
3. Enhanced cooperation in various sectors: The agreement will promote cooperation in areas such as education, research, and innovation. This will create opportunities for collaboration between Canadian and Australian universities, research institutions, and businesses.
4. Implications for other trade deals: The Canada-Australia Free Trade Agreement is also significant because it sets a precedent for other trade deals. It demonstrates that progressive and comprehensive trade agreements are possible, even in the face of protectionist measures by some countries.
Overall, the Canada-Australia Free Trade Agreement is a win-win for both countries. It will increase economic growth, create jobs, and provide new opportunities for Canadian and Australian businesses. Moreover, it demonstrates that free trade agreements can be mutually beneficial and can help to promote economic cooperation and stability.