Australia China Trade Performance

INTRODUCTION

The past decade-and-a- half has been one of singular achievement for Australia . Dumping the protectionist foreign policy , spanning two-thirds of 20th Century , into the dustbin of history , Australia is forging ahead with a commitment , bing , in some enlightened circles , on a religious fervour , to open markets and globalization , which has underpinned its remarkable growth . Judging by empirical evidence , open markets have truly paid rich dividends and the Australians are preparing to reap the rewards of the whirlwind of globalization . However , voices injecting doses of caution , are growing

RELEVANCE OF

TRADE

The gains garnered are eloquently summed up by the Australian Government 's Department of Foreign Affairs and Trade : Trade is essential to our way of life . Trade creates jobs , boosts incomes in local communities and increases standard of living . As a country of 20 million people , we benefit from improved access to the global marketplace of more than six billion people

Surely , it would have gladdened Ricardo 's heart

Over the years , Australia 's dogged pursuit of free trade regimes has translated into clear economic gains . Australia is in its 16th year of uninterrupted growth , the longest since 1901 . Exports as a share of Australia 's GDP have grown from 11 per cent in 1981-82 to 22 per cent in 2001-02 and provide a quarter of regional Australia 's income . In 2006 Australia 's export businesses achieved their best sales level 210 billion . One in five jobs is export related , and one in four in regional Australia . Exporting companies are more productive and pay workers more Australian Bureau of Statistics data indicates that workers in exporting firms earn an average of 46 ,000 a year , compared with 28 ,600 in non-export businesses . Significantly , more than 80 per cent of Australian exporters are small and medium enterprises , indicating a wide dispersal of wealth . The export growth is reducing the cost of Australia 's imports and improving the terms of trade . More so , because exports have become more diversified and sophisticated , and agricultural products , in tough competition , are increasingly finding lucrative markets overseas . Imports have also provided Australian companies with many of the cost-effective inputs , and consumers with greater choice products at competitive price . If Australia hadn 't reduced tariffs for passenger motor vehicles , Australian families would pay an additional 10 ,000 on a 30 ,000 family car

Exporters tend to invest more in technology , management techniques and the skills of their workers . Exposure to world markets provides firms with access to new technology . Fresh ideas are diffused , helping to raise productivity rates and boost income levels . Australia 's productivity growth in the 1990s was faster than that of the United States and the second-fastest of all developed economies . Since 1988 Australia 's average tariff rate has fallen from 15 per cent to 3 .5 per cent yet unemployment is now at its lowest level in 30 years . While tariffs have fallen , manufacturing output has risen by around 40 per cent and the volume of exports fivefold

Australia 's economy is...