The Importance of the Australia- Singapore Free Trade Agreement
ASFTA is incredibly important to the Australian economy. Australia is the fourth largest importer of Singaporean goods and Singapore is ranked eighth out of our primary export destinations. The total value of trade between the two countries lies at over $20 Billion. This trade relationship is beneficial for many reasons. Tariffs are relieved, reducing costs of trading goods. Safeguards are also abolished, which means an unlimited amount of goods or services may be imported into Australia and sold to Singapore. Businesses are also supported with labour sharing and the easing of residency and banking requirements. However, some of these features may potentially become a downfall. Overall, ASFTA is still a completely necessary trade relationship.
Firstly, all tariffs have been eliminated from any form of trade. This is beneficial because Australia does not have to pay extra to import or export goods. Tariffs can often be an expensive percentage of trade income and it can cause great impact to the Australian economy. The abolishment of this extra cost therefore boosts the economy. However, removing tariffs may also pose as a negative. Singapore does not have to pay the Australian government to trade their goods either. This means that Australia does not receive any extra income from Singapore. The elimination of tariff can pose as both a positive and negative; depending on the ratio of goods imported and exported, cost and exchange rate.
In addition to this, safeguards measures have been abolished. This means that an unrestricted amount of goods and services can be imported and exported between the countries. The removal of safeguards allows more products to come into Australia, consequently raising the living standard. Australia may also gain more money by being able to sell more goods and services to Singapore. On the other hand, Australia may import too much of an unnecessary product. Sometimes safeguards and restrictions are important to prevent this from happening. The elimination of safeguards can also be good or bad.
Finally, ASFTA supports businesses in both Singapore and Australia. Residency requirements for Australian businessmen making short-term visits to Singapore have increased from one month to three months. Australians can now bank easier in Singapore, which means electronic transfers and money exchange is simpler. Australian law degrees are also more recognisable in Singapore, so Australians can get a job and make money there. Cheaper labour may be brought from Singapore to Australia too. However, even though this may be considered a benefit, imported labour may result in Australian jobs lost.
In conclusion, ASFTA is important to the Australia economy. It creates a lot of money for the Australian government and makes trading with Singapore easy. The economy is boosted by the elimination of tariffs and safeguards; and changes made to the requirements of business people. Although, with the plethora of benefits, these features may also be negative. Overall, trends and strong company links give proof that this trade relationship is completely necessary to the Australian economy.
Firstly, all tariffs have been eliminated from any form of trade. This is beneficial because Australia does not have to pay extra to import or export goods. Tariffs can often be an expensive percentage of trade income and it can cause great impact to the Australian economy. The abolishment of this extra cost therefore boosts the economy. However, removing tariffs may also pose as a negative. Singapore does not have to pay the Australian government to trade their goods either. This means that Australia does not receive any extra income from Singapore. The elimination of tariff can pose as both a positive and negative; depending on the ratio of goods imported and exported, cost and exchange rate.
In addition to this, safeguards measures have been abolished. This means that an unrestricted amount of goods and services can be imported and exported between the countries. The removal of safeguards allows more products to come into Australia, consequently raising the living standard. Australia may also gain more money by being able to sell more goods and services to Singapore. On the other hand, Australia may import too much of an unnecessary product. Sometimes safeguards and restrictions are important to prevent this from happening. The elimination of safeguards can also be good or bad.
Finally, ASFTA supports businesses in both Singapore and Australia. Residency requirements for Australian businessmen making short-term visits to Singapore have increased from one month to three months. Australians can now bank easier in Singapore, which means electronic transfers and money exchange is simpler. Australian law degrees are also more recognisable in Singapore, so Australians can get a job and make money there. Cheaper labour may be brought from Singapore to Australia too. However, even though this may be considered a benefit, imported labour may result in Australian jobs lost.
In conclusion, ASFTA is important to the Australia economy. It creates a lot of money for the Australian government and makes trading with Singapore easy. The economy is boosted by the elimination of tariffs and safeguards; and changes made to the requirements of business people. Although, with the plethora of benefits, these features may also be negative. Overall, trends and strong company links give proof that this trade relationship is completely necessary to the Australian economy.