Trading Our Way to More Jobs and Prosperity

Sound trade policy and solid economic reform work hand-in-hand. The Gillard Government is committed to free trade as a pathway to more and better jobs and greater prosperity.

The trade strategy embraces five principles: the pursuit of ongoing, trade-related economic reform without waiting for other countries to reform their trade policies; non-discrimination among countries in trade negotiations; foreign policy considerations not overriding trade policy; transparency in free trade negotiations; and the seamless execution of trade policy and wider economic reform.

Applying these principles, the Gillard Government will champion ongoing multilateral trade liberalisation as the preferred vehicle for non-discriminatory trade among nations.

If progress on multilateral reform remains slow, then – consistent with the Productivity Commission’s 2010 report – the Gillard Government will press ahead in negotiating high-quality, truly liberalising bilateral and regional trade agreements that do not detract from, but support, the multilateral system.

The Government’s trade policy principles logically give rise to a set of disciplines governing the negotiation and content of trade agreements, including:

multilateral agreements offer the largest benefits;
bilateral and regional agreements must not weaken the multilateral system;
Australia will not seek to entrench preferential access to markets in trade negotiations, simply an opportunity to compete on terms as favourable as anyone else’s;
the public will be well informed about trade negotiations and have an opportunity for input;
Australia will press ahead with trade-related economic reform irrespective of whether other countries reform their policies in this area.

Based on these principles and disciplines, the Government’s trade priorities involve support for the multilateral system, the Trans-Pacific Partnership of nine Asia-Pacific countries, and the negotiation of bilateral trade deals with Korea, Japan, China, Malaysia, Indonesia and the Gulf Cooperation Council. If India is agreeable, Australia will launch free-trade negotiations between the two countries.

Any such trade deals will be expected to pass the test of high-quality, truly-liberalising agreements that support the multilateral system.