Trade Agreements and Blocs

Question 1

what is a bilateral agreement

Answer 1

WTO has diffculty getting all countries to reach consensus on lowering barriers so a regional trade agreement between 2 or a few countries is made

Question 2

what is a pro of regional trade agreements

Answer 2

increase trade between member countries

Question 3

what are 3 cons of regional trade agreements

Answer 3

1. can be descriminatory and go against most favourable nation principle
2. make it harder for outside countries to trade with inside discouraging further openess
3. act as trade bloc whereas multilateral negations deal with MORE countries

Question 4

what is a trade bloc with a few exaples

Answer 4

a group of countries that agree to reduce trade barriers between themselves but impose barriers on outside countries EU, NAFTA, ASEAN

Question 5

what is a free trade agreement

Answer 5

internationl treaty between 2 or more economies that reduces or eliminates certain barriers to trade

Question 6

what is the benefit of free trade agreement

Answer 6

increase econ activity = employment

Question 7

how many fta does aus have and what percenateg of aus trade does this account for

Answer 7

14 w 20 countries

80% aus trade

Question 8

discuss the benefits of ChAFTA for CHina and AUs

Answer 8

Aus exports duty free so aus farming will benefit as CHina buys more
China has access to our education, banks and law firms