The removal of trade barriers would provide vibrant benefits to the Australian Economy. The US economy is also expected to experience a considerable benefit (Stoler, 2013, pp. 1-22). Scope of Further Expansion in Trade between Australia and US The market of the US is large with an estimated 270 million consumers which provides a decisive wealth generation opportunity. Because of the free trade agreement, Australia could get an improved access to the US market and overcome its weakness of not been able to produce goods as well as services in keeping with the requirements. Trade between Australia and the US is already very strong as 15% of Australia’s entire trade is with the US. The agreement would further attract the US investors towards Australia. The agreement of free trade between the two nations would also increase the networking between them which would help to enhance the economic performance of Australia. As Australia is a relatively small country, its alliance with a vast developed country such as US would facilitate to take its products globally. After Free Trade Agreement (FTA) was signed between the two nations, Australia has emerged as one of the main centre for the US corporations for investment in energy, finance and biotechnology among others (Xavier, 2001, pp.1-27). Contextually, in terms business customs, executing business operations in Australia is comparatively a convenient proposition for US companies as the cultural environment, language, customer expectations and
business practices are quite identical. Australian people aim to focus upon promptness, advance planning along with follow-up and they generally are direct in terms of conducting business dealings (US Commercial Service, 2012). Therefore, these facets enhance the scope of...
This paper approves that there are still prevailing barriers in certain products for both the United States exporters and the Australian exports. The barriers in the United States to the Australian exporters are in certain products such as dairy products, textile and footwear, sugar and commercial vehicles among others. The US government maintains high tariff rates on dairy products such as butter, and cheese among others. Apart from these facets, there are certain other regulations with regard to milk products that also act as a barrier to trade. Similarly, high tariff on sugar also restricts the Australia’s trade access to US. The US government retains quotas on import of textile products which acts as a barrier to export. Moreover, high tariff on commercial vehicles could also be an obstacle in trade. Similarly, there are certain trade barriers in Australia for the US exporters. The barriers include high tariff rates on textile and leather products along with vehicle parts.
This report makes a conclusion that the economy of Australia is very much flexible towards trade. The country has developed a good relationship with the US in recent times in context to trade. Business customs are also quite similar between the two nations. This factor largely enhances the prospects for the Australian economy. The free trade agreement between the two countries also has played a major role in this regard. It has been observed that the agreement, up to an extent succeeded in minimizing the barriers of trade between the two nations. However, there are certain barriers that still exist between them, which obstruct growth of trade between Australia and the US.