1.

Trade relationship for 3 periods: 2012, 2016, 2021

1.1. Period 2012-2013

Table 1: Australia’s trade in goods and services by top ten partners (2012-2013) [1]

(a) All data is on a balance of payments basis, except for goods by country which are on on a recorded trade
basis. (b) Services data is EU27 only. (c) Excludes imports of aircaft from regional import totals from Sep-08
onwards (excl the United States - see footnote (d)). This has a significant impact on import totals for France
(EU28). (d) Based on unpublished ABS data and includes confidential aircaft imports for the United States only.
Table 2: AUSTRALIA'S TOP 10 IMPORTS, GOODS & SERVICES (A$ million) (a) (b) [2]

(a) Goods trade are on a recorded trade basis, Services trade are on a balance of payments basis. (b) Please note
– imports of aircraft were made confidential by the ABS from Sep-08 onwards. Imports of aircaft would rank in
Australia's top 25 imports. (c) Balance of payments basis. (d) Includes Related agency fees & commissions

Table 3: AUSTRALIA'S TOP 10 EXPORTS, GOODS & SERVICES (A$ million) (a) [3]

(a) Goods trade are on a recorded trade basis, Services trade are on a balance of payments basis. (b) Balance of
payments basis.

Exports of natural gas rose strongly, up 19.4 per cent to $14.3 billion. Natural gas is now Australia's 5th
largest export after iron ore, coal, gold and education services; 2012 was the third straight year of rising
personal travel service exports, up 6.1 per cent to $12.6 billion. Food exports also performed well,
exports of wheat rose 6.3 per cent to $6.7 billion; aluminium ores and conc were up 5.5 per cent to $5.6
billion. Australia's imports of goods and services rose 7.4 per cent in 2012, with strong growth in
passenger motor vehicles imports, up 8.4 per cent to $17.33 billion; and Australia's crude petroleum fell
3.4 per cent.
1.2. Period 2015-2016
Table 4: AUSTRALIA'S TRADE IN GOODS AND SERVICES (a)(b) BY TOP 10 PARTNERS (A$
million) [4]

(a) All data is on a balance of payments basis, except for goods by country which are on a recorded trade basis.
(b) May exclude selected confidential export or import commodities from partner country totals as well as for the
country groups. Refer to the DFAT website
(http://dfat.gov.au/about-us/publications/trade-investment/Pages/dfat-adjustments-to-abs-official-trade-
data.aspx) for more information and a list of the commodities excluded.
Table 5: AUSTRALIA'S TOP 10 IMPORTS, GOODS & SERVICES (a) (b) (A$ million) [5]

(a) Goods trade is on a recorded trade basis, Services trade is on a balance of payments basis. (b) Please note –
imports of aircraft were made confidential by the ABS from Sep-08 onwards. Imports of aircraft would rank in
Australia's top 25 imports. DFAT estimates that aircraft imports were valued at around $3.9 billion in 2016. (c)
Balance of payments basis.

Table 6: Australia's top 10 exports, goods and services, 2016 (a) [6]

Exports of iron ores & concentrates rose strongly, up 16.8 per cent to $62.8 billion. Iron ores &
concentrates is still Australia's largest export in third year from 2014-2016; second rank is coal exports,
rising up 14.5 per cent to $54.3 billion. Travel services exports also performed well, exports of
education-related travel services rose 7.5 per cent to $28 billion; personal travel services were up 5.8
per cent to $21.6 billion. Australia's imports of goods and services fall 2.9 per cent in 2016, with strong
decrease in refined petroleum imports, down 19.4 per cent to $14.8 billion; Australia's crude petroleum
also fell 15.1 per cent.
1.3. Period 2020 – 2021

Figure 1: Australia total exports by month (2021) [7]

Figure 2: Australia total imports by month (2021) [8]

Figure 3: Australia nominal GDP (2021) [9]

2. Trade restrictions (Nontariff trade barriers)

Table 7. Comprehensiveness of Australian non-tariff measures [10]

Number Comprehensiveness Number
1 Total NTM-related regulations (acts, ordinances, etc.) 504
2 Total NTMs reported to the World Trade Organization -
3 Total number of coded NTMs (each legal requirement) 1,897
4 Total affected products (Harmonized System lines, national tariff lines)
(i) Total number of affected products 6,184
(ii) Affected products as a share of total products 100%
5 Total number of issuing institutions 12
NTM = non-tariff measure. Source: Author’s calculation based on the data collected
Table 7 shows that there are 1,897 coded NTMs at the national tariff line level, affecting 6,184 lines in
the harmonized system. This represents the entire Australian fare system. According to Japan's Ministry
of Foreign Affairs (2018), the implementation of NTM in Australia is fully compliant with the WTO
Agreement, including import license procedures. International obligations guide the implementation of
standards and technical rules.
Table 8. Number of non-tariff measures by issuing institution [10]
Number
of NTMs
Number Regulatory Agency (%)
1 Department of Agriculture 673 35.48
2 Department of Home Affairs 135 7.12
3 Department of Communications and the Arts 114 6.01
4 Department of Health 308 16.24
5 Department of Treasury 157 8.28
6 Department of Foreign Affairs and Trade 42 2.21
7 Attorney-General's Department 20 1.05
8 Standards Australia/ Standards New Zealand Committee 6 0.32
9 Department of Defense 6 0.32
10 Department of Environment and Energy 150 7.91
11 Department of Infrastructure, Transport, Cities and Regional 285 15.02
Development
12 Industry, Innovation and Science 1 0.05
Total 1,897 100.00
NTM = non-tariff measure.
The number of NTMs by regulatory agency is shown in Table 8. The Department of Agriculture is in
charge of issuing the greatest number of NTMs (35%). Its key responsibilities include ensuring that
Australia's agriculture, fishery, food, and forestry businesses remain competitive, profitable, and
sustainable, as well as promoting the sustainable and productive management and use of rivers and
water resources.
Table 9. Types of non-tariff measures imposed by Australia, by chapter [10]
Type of NTMs Percentage of Number of (%)
total NTMs affected
(%) products
A Sanitary and phytosanitary measures 15.39 6,184 100
B Technical barriers to trade 54.56 6,184 100
C Pre-shipment inspection and other formalities 0.32 6,184 100
D Contingent trade-protective measures 0.00
E Non-automatic licensing, quotas, prohibitions and
quantity control measures other than for sanitary and
0.95 185 2.99
phytosanitary measures or technical barrier to trade
reasons
F Price control measures including additional taxes and 4.06 6,184 100
charges
G Finance measures 0.00
H Measures affecting competition 0.00
I Trade-related investment measures 0.00
J Distribution restrictions 0.00
K Restrictions on post-sale services 0.00
L Subsidies (excluding export subsidies under P7) 0.00
M Government procurement restrictions 0.00
N Intellectual property 0.05 43 0.70
O Rules of origin 0.00
P Export-related measures 24.67 6,184 100
100.00 6,184 100
Table 9 lists 1,897 NTM occurrences in Australia. More than 75% of these NTMs are tied to imports,
with the remaining NTMs being related to exports. NTMs are tightly enforced on imports in Australia
to preserve human health, hygiene and sanitation, animal and plant life protection, environmental
conservation, and essential security. The majority of Australia's import NTMs are technical measures
that pertain to technical rules. Technical measures account for 93 percent of import NTMs, or 70% of
total NTMs, with non-technical measures accounting for only 7%.

Figure 4. Multiple non-tariff measures, share within product groups [10]

Figure 4 shows the number of tariff lines that are subject to one, two, or three NTMs, organized by
product group. Three or more NTMs influence some product groupings, such as machinery/electrical,
animals and animal products, and textile products. Food goods are another product category that has a
lot of NTMs. Because Australia is a developed country, customers will naturally migrate to higher
quality and safer items as their wages improve. To be consumed, all food products must be
unadulterated, appropriate for ingestion, and free of contamination or decay.
3. Australia Investment (FDI and/or ODA):
3.1. Australia foreign direct investment (FDI)
Australia continues to be a highly attractive destination for foreign direct investment – which is when
an overseas company sets up, buys or increases its stake in an Australian business.
Total value in 2020: A$4 trillion

Figure 5: Total foreign investment stock in Australia, 2000 to 2020 [11]

In 2000, total foreign investment in Australia as a proportion of GDP was 120 percent,
according to Figure 5. This index, which comprises equities and shares, was 203 percent in
2020. As a result, the Australian economy is more reliant on foreign capital than it was two
decades ago.
The following industries rely on this enormous reservoir of foreign investment: [12]
Our mining industries receive 35.3 percent of FDI (worth A$360 billion).
Australian manufacturing receives 12.9 percent of FDI (worth A$131 billion).
Financial services and insurance receive 11.1 percent of FDI (worth A$113 billion).
From 2000 to 2020, other types of investment, such as portfolio investment, rose at an annual
rate of 8.4 percent. By 2020, overall foreign investment will have reached A$4 trillion.
Table 10. Australia's main sources of foreign direct investment stock, 2010–2020. Total
value in 2020: A$1 trillion [11]

Ran Economy 2010 2020 % % Growth % of

k A$billio A$billio Shar CAGR ($bn) Australia
2020 n n e 2010- 2010- n GDP,
2020 2020 2020 2020

1 US 110.3 196.3 19.1 5.9 -25.1 10.0

2 Japan 51.1 131.8 12.8 9.9 15.9 6.7

3 UK 53.7 123.5 12.0 8.7 -4.1 6.3

4 Netherlands 27.6 52.8 5.1 6.7 -3.8 2.7

5 Canada 14.9 46.2 4.5 12.0 0.1 2.3

6 China 12.9 44.3 4.3 13.1 -2.5 2.3

7 Singapore 18.7 39.9 3.9 7.9 3.8 2.0

8 Bermuda 7.5 39.9 3.9 18.2 -2.1 2.0

9 Virgin np 22.5 2.2 np 0.4 1.1

Islands,
British

10 Germany 16.8 21.7 2.1 2.6 -1.4 1.1

11 Hong Kong 6.6 16.8 1.6 9.7 -0.6 0.9

SAR

12 Malaysia 3.7 13.6 1.3 14.0 -1.1 0.7

13 France 13.0 12.1 1.2 -0.7 -0.6 0.6

14 Switzerland 20.9 11.6 1.1 -5.7 0.0 0.6

15 Luxembourg 1.5 9.1 0.9 20.0 -0.3 0.5

16 Korea 2.1 8.0 0.8 14.6 0.9 0.4

Other 158.1 236.6 23.0 4.1 3.6 12.0

economies

FDI stock – 519.3 1,026.6 100.0 7.1 -17.1 52.1

all
economies

OECD 340.6 635.9 61.9 6.4 -17.2 32.3

 APEC 231.0 508.7 49.6 8.2 -8.4 25.8

EU (excl. 80.2 112.3 10.9 3.4 -4.8 5.7

UK)

ASEAN 25.8 59.0 5.7 8.6 2.8 3.0

FDI stock as 38.1 52.1

a
percentage
of GDP

Notes:
ASEAN = The Association of Southeast Asian Nations. CAGR = compound annual growth
rate. np = not available for publication but included in totals where applicable, unless
otherwise indicated. SAR = Special administrative region of China.

Table 10 shows how Asian funding boosts Australian corporate investment. The steady
increase in capital inflows from Asia, albeit from a modest base, has been a significant
contemporary trend. Since 2010, China has become Australia's sixth largest direct investor,
with investment expanding at a CAGR of 13%. Other Asian economies are also becoming
popular FDI destinations. Investment from ASEAN countries (including Singapore) increased
by 9% per year between 2010 and 2020, while investment from Hong Kong increased by
10% per year and investment from Korea increased by 15% per year.
Table 10 illustrates that Asian funding boosts Australian company investment. The steady
rise in capital inflows from Asia, albeit from a low base, has been a significant contemporary
trend. Since 2010, China has become Australia's sixth largest direct investor, with
investments increasing at a CAGR of 13%. Other Asian economies are also becoming
popular destinations for foreign direct investment. Investment from ASEAN countries
(including Singapore) increased by 9% per year between 2010 and 2020, while investment
from Hong Kong increased by 10% and investment from Korea increased by 15% per year.
3.2. Australia - Official development assistance
Figures 6 and 7 show that Australia contributed USD 2.6 billion in 2020 (preliminary
statistics), or 0.19 percent of GNI. Due to reduced investment as a result of the COVID-19
epidemic, this was a 10.6% fall in real terms in volume, while keeping an overall
commitment to a AUD 4.0 billion aid program. In response to the COVID-19 pandemic, the
Australian government planned temporary and targeted economic and vaccine-related actions
in 2021 to supplement the existing ODA funding. Because Australia exclusively delivers
grants, total ODA on a grant-equivalent basis is the same as net ODA under the previous
cash-flow methodology. [13] 
Figure 6. Australia – ODA volume from 2009 to 2020 [14]

Figure 7. Australia – ODA as a share of GNI from 2009 to 2020 [14]

Figure 8. Australia – Bilateral and multilateral ODA allocations from 2009 to 2019. [14]
Table 11. Bilateral, earmarked multilateral and core multilateral ODA allocations from 2009
to 2019. [14]
Category Bilateral Earmarked multilateral Core multilateral
2009 2004.340233 614.120218 509.504393
2010 2321.40632 685.290049 493.011857
2011 2309.380474 1034.018068 523.100257
2012 2719.067813 901.693709 671.423198
2013 2743.119368 743.3939 574.149126
2014 2259.291952 837.510713 777.664017
2015 2252.10068 678.818564 788.496858
2016 1824.767194 613.677664 1049.377748
2017 1951.265306 481.168169 621.39472
2018 1961.47 592.11 598.62
2019 1796.994539 532.173712 687.332923
In 2019, Australia provided over three-quarters of its ODA bilaterally, according to Figure 8
and Table 11. Gross bilateral ODA accounted for 77.2 percent of overall ODA, with
multilateral organizations accounting for 22.8 percent (earmarked contributions). Australia
contributed 22.8 percent of total ODA to multilateral organizations as core contributions.
In real terms, Australia donated USD 1.2 billion in gross ODA to the multilateral system in
2019, up 0.7 percent from 2018. (Table 11). Core multilateral ODA accounted for USD 687.3
million, whereas non-core contributions were designated for a specific country, area, topic, or
purpose. Figure 9 shows that project-type financing targeted for a specific subject and/or
nation accounted for 41% of Australia's non-core contributions, while programmatic funding
accounted for the remaining 59 percent (Table 11). (to pooled funds and specific-purpose
programmes and funds).

Figure 9. Contributions to mutilateral organisations as a share of total ODA [14]

The United Nations (UN), the World Bank Group, and regional development banks received
the majority of Australia's overall contribution to multilateral organizations in 2019.
Together, these contributions contributed for 85.0 percent of Australia's overall multilateral
support. The United Nations system received 34.6 percent, mostly in the form of earmarked
contributions (Figure 10)
Figure 10. Core and earmarked contributions to multilateral organisations 2019 [14]

Figure 11. Top 10 United Nations recipients 2019 [14]

Bilateral ODA
In comparison to the previous year, Australia's bilateral spending decreased in 2019. (Table
11). In actual terms, this represents an 8.8% reduction from 2018. In 2019, Australia focused
the majority of its bilateral ODA on the 2030 Agenda targets of gender equality, decreased
inequality, disability, climate action, and life on land. [15]
In 2019, nation programmable aid accounted for 67.0 percent of Australia's overall bilateral
ODA, compared to 48.0 percent for DAC countries. Australia does not record the costs of
refugees as ODA. (Figure 12)

Figure 12. Bilateral ODA by type of expenditure 2019 [14]

In 2019, Australia mostly channeled bilateral ODA through multilateral organizations and the
public sector. In 2019, "other channels" received a larger share of bilateral ODA, amounting
for 40% of total bilateral ODA (Figure 13)
Figure 13. Bilateral ODA by channel of delivery [14]
In 2019, Australia's gross bilateral ODA to least developed countries was 25.1 percent (USD
561.7 million). This is in line with the 24.6 percent DAC country average. In 2019, Australia
allocated the biggest proportion of gross bilateral ODA (36.8%) to lower middle-income
countries, with 30.2 percent remaining unallocated. In 2019, Australia allocated USD 779.4
million to SIDS, or 34.8 percent of gross bilateral ODA (Figure 14, Table 12)

Figure 14. Bilateral ODA by income group [14]

Table 12. Bilateral ODA by income group [14]
Category LDCs Other LICs LMICs UMICs Unallocated MADCTs
2009 643.509 36.630 1078.201 190.977 665.494 3.669
2010 779.412 41.161 1120.401 216.481 839.507 9.714
2011 867.537 42.103 1131.927 231.613 1063.721 6.463
2012 970.996 42.045 1346.652 236.925 1018.218 5.954
2013 820.273 29.570 1325.096 179.164 1125.159 7.215
2014 779.159 15.656 1220.726 161.798 915.476 3.984
2015 721.821 13.461 1212.144 183.313 794.830 5.351
2016 568.127 3.438 849.421 168.993 844.454 4.010
2017 662.711 2.415 864.327 186.589 712.404 3.981
2018 571.361 1.400 933.548 186.552 858.610 2.105
2019 584.706 2.240 857.416 179.188 702.304 3.312

In 2019, Australia's bilateral ODA was mostly focused on social infrastructure and services.
Support for government and civil society (USD 418.1 million), health and population policy
(USD 212.8 million), and education (USD 212.8 million) accounted for 41.8 percent of
bilateral ODA pledges (USD 932.3 million) (USD 178.2 million). ODA for economic
infrastructure and services was USD 229.6 million, with transportation and storage (USD
75.2 million) and communications (USD 75.2 million) receiving the most attention (USD
75.2 million). The total amount of bilateral humanitarian help was USD 222.4 million (10.0
percent of bilateral ODA). In 2019, contributions to multilateral organizations were mostly
focused on humanitarian help and the social sector.Table 13.
Table 13. Bilateral ODA by sector 2019 [14]
Category 2019
Social infrastructure and services 932.342
Economic infrastructure 229.5669
Production 163.7426
Multi-sector 452.3006
Humanitarian assistance 222.4366
Other sectors 227.7659
Figure15. Bilateral ODA by sector 2019 [14]

Figure 16. Climate and environment focus by sector 2019 [14]

4. Australia Foreign exchange rate policy

Figure 17. US Dollars to Australlian Dollar from 2011 to 2022 [16]

Figure 17 shows how much the Australian dollar appreciated in 2012. The reason for this is
that Australia's terms of trade have doubled in this time, owing to increases in global
commodity export prices. A rise in commodity export prices enhances the equilibrium real
exchange rate in the real economy because it leads to increased demand for Australian
goods, forcing their price to rise relative to foreign commodities. This happens for one of
two reasons:
- higher commodity prices lead to additional investment in the resources industry to
expand capacity; and
- higher aggregate earnings due to rising terms of trade lead to increased consumption
spending, much of which is on domestic goods.
The AUD's rise corresponds to what one would expect in other economies where the
exchange rate plays a significant role. A rise in resource costs raises the equilibrium
exchange rate in the financial markets for two reasons:
- the rate of return on capital invested in the resources sector rises; and
- higher earnings may necessitate tighter monetary policy than would otherwise be
necessary, resulting in higher interest rates.
In terms of the foreign exchange market, a rise in commodities export prices enhances
demand for AUDs by increasing both export receipts and capital inflows in reaction to
better returns on Australian assets.
While trade conditions have been the primary driver of the AUD's increase since the early
2000s, events in other advanced economies have also contributed to the AUD's strength in
2012. To begin with, after a prolonged period of economic malaise, interest rates in the
major industrialized nations have remained extraordinarily low. As a result, the interest rate
disparity between Australia and other advanced countries has been unusually wide, despite
the fact that Australian interest rates have not been especially high. Second, due to high
levels of government debt, slow economic growth, and weak financial systems, a number of
other advanced economies are now considered to be more dangerous. Australia, on the
other hand, is presently one of just seven countries whose national government debt is still
rated AAA by all three main credit rating agencies with a stable outlook.
The confluence of these variables has boosted global investors' demand for AUD assets by
increasing risk-adjusted returns on Australian assets in relative terms. [17]
In 2016, the global economy continued to expand, but at a slower rate than previously
anticipated. Commodity prices, particularly oil prices, had fallen even lower. As a result,
the drop in Australia's terms of trade that began more than four years ago has continued.
Financial markets experienced increased volatility as participants dealt with uncertainty
about the global economic outlook and differing policy choices among major jurisdictions
in 2016. Funding costs for high-quality borrowers have stayed low, and monetary policy
has remained impressively accommodating globally. Even though measured GDP growth
was below average, business conditions improved, employment growth increased, and the
unemployment rate fell in the second half of the year in Australia. Lending to businesses
has also accelerated.Inflation continued to be quite low, with the CPI rising by 1.7 per cent
over 2015. This was partly caused by declining prices for oil and some utilities, but
underlying measures of inflation are also low at about 2 per cent.
Given these circumstances, accommodative monetary policy was warranted. Low interest
rates boosted demand, while regulatory initiatives aimed to emphasize cautious lending
standards and so limit housing market dangers. The currency rate had continued to alter in
response to changing economic conditions. [18]
In 2021, the Australian dollar exchange rate has fallen, hovering around the year's lows.
Australia's financial circumstances are still very favorable, with most loan rates hovering
around record lows. [19]
The Australian Government's forex policy's overriding premise is that entities are
responsible for continuing monitoring and management of their forex risks, but they must
not intervene to lower forex risk that they would otherwise encounter in the course of their
operations. [20]
5. The global opportunities and challenges associated with Australia
5.1. Challenges confronting the national economy
Australia has seen steady economic growth for nearly two decades. As a result, Australians
currently have among of the world's greatest living standards.
Figure 18. Australia - Real GDP growth from 1993-2018 [21]
The extraordinary investment resulting from the mining boom has been the main driver of
growth in Australia in recent years. Mining investment expanded from less than 2% of GDP
pre-boom to about 8% last fiscal year to meet demand from trading partners. Since the start
of the boom, the mining sector's capital stock has tripled.

 
Figure 19. Australia – Mining investment and capital stock [21]
However, the mining industry has reached a turning point in its development. Commodity
prices peaked in 2011, and capital investment is believed to have reached its high. The
mining industry is now entering a new phase of growth, with more output and export volumes
but lower pricing and investment. The economy will confront certain hurdles in navigating
this shift due to the extent of the investment boom. In the near term, net resource investment
is expected to move from a key driver to economic growth to a growth detractor.

Figure 20. Australia – Mining sector’s contributions to real GDP growth [21]
As completed projects are put into production, exports will rise, but the net effect of these
two dynamics means that the economy will rely significantly on other sectors to return to
trend growth in the medium run.
The medium-term forecast for typical incomes will be substantially influenced by the
lowering terms of trade. Furthermore, ageing population will mean slower rates of economic
growth as the participation rate falls. Participation among older people is increasing, but the
level of participation is lower than average, meaning that as more people move into older age
groups aggregate participation will decline. Slowing GDP growth
As Australians become wealthier, so do their expectations for governments to provide more
goods and services. As the population ages and the average cost of services rises, citizens will
face major expenditure pressures in the next 10 years, notably in the areas of health and aged
care. These sectors of spending are predicted to expand faster than GDP when combined. At
the same time as Austalia is dealing with growing fiscal pressures, significant structural
changes in the economy and global economic difficulties mean that the connection between
the size of the economy and the amount of tax collected is shifting. Revenue growth has
slowed and is expected to continue to decrease. Furthermore, revenues will not return to the
unsustainable levels of the previous decade.
Exporters in Australia are confronted with massive hurdles from a variety of directions. With
the introduction of vaccinations, Covid-19 may be brought under control quickly, but global
supply chain conditions may remain tough in the short future. Other challenges, such as
geoeconomic competitiveness and the implementation of border tariffs to address climate
change, could make exporting even more difficult. [22]
5.2. Opportunities
Australia has one of the world's greatest economies, with a record of steady growth
unmatched by any other advanced economy over the same time span. In addition, the
Commonwealth's finances are sound, and the country's debt is modest by worldwide
standards. Australia's AAA credit rating reflects the amount of confidence in the strength of
the country's governmental finances.
The government has expressed a desire to address market concerns of flexibility and
efficiency, such as through the Competition Policy Assessment, the Productivity
Commission's review of the Fair Work Laws, and the Financial System Inquiry.
Furthermore, the government has promised to releasing white papers on tax reform and
federation reform by the end of 2015. The relative share of total indirect taxes, including the
GST, continues to fall. The increase in the share of revenue received through personal income
tax is one manifestation of this effect (Figure 21).

Figure 21. Australia – Tax structure [21]

Presenters at the conference emphasized the importance of Australians and Australian
businesses becoming more aggressive in Asian markets in order to establish brand
recognition and comprehension. The potential are enormous; for example, a lack of emphasis
on health care and financial services supply in Asia in the past has created an opportunity for
Australian service providers..
6. Policy recommendations
Australia is making good progress towards improving transparency. A centralised, user-
friendly regulation web portal has significantly boosted the accessibility of information and
made it easy to identify acts that are in force, as well as providing a ‘consolidated’ version of
regulations. This helps traders, and thus enhances development. NTM- related regulations in
Australia are the responsibility of 12 government agencies. The Department of Agriculture is
responsible for issuing the largest share. The 1,897 coded NTMs stem from 504 NTM-related
regulations identified in Australia. Of these, 75 per cent are import measures and 25 per cent
are export measures. The large majority of the 6,184 existing tariff lines are subject to three
or more NTMs. Only a minimum per cent of tariff lines are subject to one or two NTMs.
Machinery/ electrical, animals and animal products, and textiles are the most highly regulated
product groups. [10]
Some policy recommendations are as follows:
- - Conduct a regular evaluation of existing laws and regulations to identify those that
have a detrimental impact on customers and do not help the government achieve its
goals. A review like this is also necessary for enhancing market access, especially for
developing countries.
- - Competitiveness: Australia must decrease inefficiencies and red tape in order to
assist businesses compete in a rapidly changing global economy. Being competitive is
a requirement, not a choice.
- Infrastructure: The need to address Australia’s ageing infrastructure. It’s time for an
innovative approach.
- Trade Promotion: The need for significantly greater investment in trade promotion.
- Bipartisan Collaboration: The need for both sides of politics and government agencies
to focus on long term sustainable strategies, as well as encouraging greater
collaboration between government and industry.
- International Engagement: Maintaining Australia’s support for the WTO,
strengthening existing bi-lateral trade agreements and concluding bi-lateral
arrangements currently under negotiation.
- In order for Australia to remain competitive, the digitization of trade documentation
needs must be accelerated, and supply chain costs must be better managed.
- Global supply networks that are resilient must be considered a national security
concern, necessitating strategic collaborations with relevant countries and
governments.
- There is space to improve Australia's services export performance as growth in
services outpaces growth in products, owing to technological advancements.
- Australia can show the world how 'inclusive' commerce can operate, particularly
through enhancing the capacities of Indigenous firms and providing chances for them
to export.
7. Include cultural components in the economic situation analysis - Cultural diversity
Business operations
Benefits of Cultural Diversity In general, business operations discovered a good association
between varied staff members and multinational organization success. International
relationships may exist among employees from a variety of cultures, particularly migratory
workers. These ties can help facilitate the flow of labor, goods, services, and information
between Australia and the workers' home countries. Other potential benefits include
eliminating entry barriers for new culturally diverse talent into an organization and
maximizing market opportunities in areas with a growing ethnic population. [23]
Education sector
When it comes to wooing international students, cultural variety gives you an edge.
Education is Australia's fourth largest export and largest service industry export, worth $17
billion nationally and $5.265 billion in Victoria in 2014. Cohesive cultural diversity adds to
Australia's allure as a learning location, and hence to the education sector's continuous
expansion.
Jeffrey E Milem of the University of Arizona did research on the impact of culturally varied
education environments at tertiary institutions. He discovered a number of unique educational
advantages. Improved ethnic and cultural understanding, better openness to variety and
difficulties, improved critical thinking, and increased student happiness with their tertiary
education experience are just a few of the advantages. More student-centered teaching
methods, improved curriculum diversity, and a more diverse staff are all advantages for the
educational institution. Additional study on cultural and ethnic diversity should be added to
this list. Milem also mentioned broader societal benefits, such as a more educated citizenry
and improved social equality. [23]
Innovation
According to recent study, multiculturalism promotes improved research and creativity. A
diverse workforce, in general, is more likely to have diverse talents and attitudes, which
positively connect with business, technological, and cultural innovation. Migration flows
have been shown to contribute to innovation by expanding the accessible knowledge, skills,
and cultures. As different ideas and experiences mix, a culturally diverse workforce engages
in what Gould calls "creative conflict." According to Gould, creative conflict leads to better
decision-making, fresh ideas, and increased creativity and innovation. The vibrancy of
regional business networks and entrepreneurship is enhanced by cultural diversity and great
technology capabilities. [23]
Tourism
Cities have built ethnic districts as the tourism business shifts toward 'niche' and cultural
tourism. To widen their tourism offer and capitalize on the yearning for fresh and varied
cultural experiences, Syrett and Sepulveda used the phrase "ethnic quarters" to describe these
regions. Cultural events and festivals in ethnic neighborhoods have proven to be effective
drivers of tourism to cities, increasing visitor numbers and spending. Culturally diverse cities
benefit from both constructed cultural precincts (e.g., Chinatowns) and organic clusterings of
cultural groups with low tourism infrastructure (e.g., Harlem in New York City). These
districts and organizations give them an edge over other tourist sites. [23]
8. References:
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[3]. https://www.dfat.gov.au/sites/default/files/FY2013-goods-services-top-25-exports.pdf
[4]. https://www.dfat.gov.au/sites/default/files/cy2016-goods-services-top-15-partners.pdf
[5]. https://www.dfat.gov.au/sites/default/files/cy2016-goods-services-top-25-imports.pdf
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[13]. Non-grants include sovereign loans, multilateral loans, equity investment and loans to
the private sector.
[14]. www.oecd-ilibrary.org. (n.d.). Home. [online] Available at: https://www.oecd-
ilibrary.org/sites/7c99890b-en/index.html?itemId=/content/component/7c99890b-en#wrapper
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[16]. Board of Governors of the Federal Reserve System (US) (1971). U.S. / Australia
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[18]. Australia, scheme=AGLSTERMS A. corporateName=Reserve B. of (2016). Statement
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[19]. Australia, scheme=AGLSTERMS A. corporateName=Reserve B. of (2021). Statement
by Philip Lowe, Governor: Monetary Policy Decision | Media Releases. [online] Reserve
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[20]. Australian Government foreign exchange risk management -guidelines for entities
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[22]. Export Council of Australia. (n.d.). Trade Policy Recommendations 1: 2013/2014.
[online] Available at: https://export.org.au/eca-institute/trade-policy-recommendations-1-
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