United States Benefits From AUSFTA
Having chosen Australia as my host country for my Multinational Corporation during week one discussion, I will be happy to discuss its free trade partnership with the United States. United States and Australia has a free trade agreement abbreviated as AUSFTA and focuses on outlining trade and investment and global trade policy between the two countries. The freed trade partnership between the two nations illustrates the need of governments’ intervention to streamline international trade as presented by (Daniels, Radebaugh & Sullivan, 2018). The implementation of free trade agreement is supervised by the Joint Committee that assembles annually with the seventh meeting being convened on 30 April 2019 (Australian Department of Foreign Affairs and Trade, 2019). Since the initiation of AUSFTA, the trade between two counties has increased including each party directly investing to the member state. The free trade agreement between the two countries has eased the process of starting and running a business for each party.In the AUSFTA, the United States appears to benefit more than Australia perhaps due its economic power compared to the latter. The data presented by Australian Department of Foreign Affairs and Trade (2019) shows that in 2018 Australia imported from the United States goods and services worth $50.8 billion while its exports to the United States amounted to $23.1 billion. The same report also shows that United States is the largest foreign investor in Australia claiming “a share of 27 percent ($939 billion) of Australia’s total foreign investment stock” (Australian Department of Foreign Affairs and Trade, 2019). In 2018, the United States was the third-largest two-way trading partner with Australia in both goods and services.
References
Australian Department of Foreign Affairs and Trade. (2019, May 1). Australia-United States FTA. Retrieved from https://dfat.gov.au/trade/agreements/in-force/ausfta/Pages/australia-united-states-fta.aspx
Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2018). International Business: Environments and operations (16th ed.). Retrieved from https://www.vitalsource.com/