What are the benefits?
How each Free Trade Agreement will benefit your business will depend on the type of goods or services that you offer and the terms of each particular FTA.
Some benefits include:
- Increasing goods exports to a market or commencing exports into a new market
- Accessing new and often larger services markets
- Lower tariffs on exported goods, although this often occurs over time and in a staggered manner
- Removal or relaxation of quotas on certain goods that can be imported
- Access to other Government procurement markets, for example in the United States
- Access to cheaper inputs for Australian business, which can assist in making Australian goods and services more competitive
- Potential investment in Australian business by offshore investors
There are other less obvious benefits as well. Many exporters also import goods, such as materials or machinery. If you are importing these inputs from one of Australia's FTA partners, you may be able to achieve duty reductions on import. Make sure to ask your Customs Broker/ Freight Forwarder whether they have identified the correct customs tariff code.
Increasingly, FTAs are focused on dealing with practical barriers to trade, including standards, professional qualifications and competition policies, which enables Australian exporters to take better advantage of the FTA opportunities.