Free Trade Agreements are a subject that we can’t get enough of here at EES Shipping. (As you know we are also just as passionate about SOLAS, CoR, container homes and, of course, who can forget piracy!).
What is a Free Trade Agreement? Buying and selling, importing and exporting of goods and services, not capitol or labour, between two or more countries that have no limits or quotas or barriers or unbalanced tariffs. Treaty examples are KAFTA (Korea – Australia), JEAPA (Japan-Australia) and we can’t forget the newest and most talked about FTA, the ChAFTA. Importing and exporting from countries that do not have treaty deals (non-treaty countries).
Simple terms: If you are importing from a country that Australia has a free trade agreement with, you are eligible for discounted or exempt duty rates when goods are accompanied by the relevant and correct documentation. It also works the other way around when you are exporting from Australia to these specific countries.
There are a few different FTA’s that are currently in various stages of implementation through Government channels. These are as follows:
- Australia-Gulf Cooperation Council (GCC) FTA
- Australia-India Comprehensive Economic Cooperation Agreement
- Environmental Goods Negotiations
- Indonesia-Australia Comprehensive Economic Partnership Agreement
- Pacific Agreement on Closer Economic Relations (PACER) Plus
- Regional Comprehensive Economic Partnership
- Trade in Services Agreement
