Australia Indonesia Institute - Australian Department of Foreign Affairs and Trade Trade liberalisation opportunities in Australia Executive summary Progressive trade liberalisation over more than a decade has served the Australian economy well. As we enter the home stretch, the debate continues about the appropriate pace of removing remaining trade barriers. The debate goes on in most industrialised countries, not just Australia. In considering the pace and appropriate mix of economic policies to make Australian firms more competitive, deliver growth and jobs, and raise living standards, it is important not to lose sight of the benefits successive Australian governments have delivered for Australians by liberalising trade. The current Australian Government recognises that history in recent decisions on automotive and textile, clothing and footwear sectors to adjust the pace of tariff removal, and to legislate for further tariff cuts in 2005.
International evidence shows when barriers to international trade fall, living standards rise.
Trade liberalisation delivers a more productive, outward-looking economy with higher incomes and more job opportunities, more appropriate use of resources, and lower prices and better quality choices for families and businesses. When economies remove trade barriers, trade becomes more important to the economy. Imports rise as families gain access to more high quality, affordable products and businesses purchase cutting edge inputs at lower prices. Exports rise as domestic businesses respond to import competition and the availability of cheaper inputs and become more responsive to international market trends and opportunities. But trade liberalisation creates losers as well as winners, as resources are channelled to more productive uses.