Australia and the Philippines are two nations that have maintained robust trade relations over the years. However, many people are often left wondering whether these two nations have a free trade agreement (FTA) in place. In this article, we will explore this question in-depth to help clarify any confusion.
So, does Australia have a free trade agreement with the Philippines? The answer is yes. In 2010, Australia and the Philippines signed a bilateral FTA known as the Philippines-Australia Free Trade Agreement (PAFTA). This agreement provides for the elimination of tariffs on a wide range of goods traded between the two countries. It also includes provisions for non-tariff barriers, intellectual property rights, and investment.
Under the PAFTA, Australian exporters gain greater market access to the Philippines. This is particularly important for Australian industries such as agriculture, processed food, and services. The agreement has also streamlined customs procedures, making it easier for Australian businesses to trade with the Philippines.
Similarly, the PAFTA allows Philippine exporters to expand their market access to Australia. This is particularly important for Philippine industries such as textile and apparel, automotive parts, and chemicals. The agreement also includes provisions for the temporary entry of business persons, making it easier for Philippine businesses to operate in Australia.
The PAFTA has been a great success for both countries. Since its implementation, bilateral trade between the two nations has grown significantly. According to the Department of Foreign Affairs and Trade, Australian merchandise exports to the Philippines increased by 16.2% in 2019, while Philippine merchandise exports to Australia increased by 22.3%.
In conclusion, the Philippines-Australia Free Trade Agreement is a comprehensive agreement that has significantly improved trade relations between the two countries. It has eliminated tariffs on a wide range of goods, streamlined customs procedures, and provided for investment and intellectual property rights. The agreement has been a great success, and it is expected that bilateral trade between the two nations will continue to grow in the coming years.