Topic 1. Trade policy- comment on Australia’s trade policy (both positive and negative impacts on Australian economy, industries and employment). this is a group assignment i just help in my part,...

Running Head: AUSTRALIAN TRADE POLICY                        1
AUSTRALIAN TRADE POLICY        7
Positive impacts on industry and employment
From historical past Australia has pursued open and free trade policies, which is evident in it signing multiple multilateral agreements with different nations and regional economic bloc. Following are some of the positive impacts on the industry and employment.
· It is a member of the 163-member World Trade Organization (WTO), due to which it has benefited a great deal from certain provisions such as most-favoured nation and protection against dumping from other nations.
· Trade policies are driven towards protection of domestic consumers, industries and environment from harmful import from other countries.
· The opening of the economy for the service sector due to the WTO agreements, has had positive impact on the quality of professionals getting the job in the labour market of Australia and similarly, Australian citizens moving-out to other nations for job.
· Australia possess some of the largest natural economic resources and many nations such as India has set mining platform in the nation, which has potential to boost the economy and employment rate in the nation.
Negative impact on industry and employment
· Presently in the global economic trade system, experts believe that Australia economy could suffer due to trade war between China and US. The trade war between these 2 economies will have a spill-over impact on other connected economies. At present, China is the largest export market for Australia, with about $98 billion of goods to China so any slow-down in the Chinese economy due to trade war with US, will hurt Australia, as China is likely to reduce its demand for some of the industrial goods such as coal, iron-ore and services. Similarly, as major investments in the Australian stock market comes from U.S. and China, any slowdown in these nations will hurt Australian economy. It is important for Australia to widen its trade relations with other nations, so that it doesn’t remain dependent on few nations only (Handley 2014).
· Similarly, there are negative consequences from the dumping of goods into the country by other nations. The principle of most-favoured nation has been exploited by the negotiating and bargaining powers of big group such as EU, as a result all other tariffs were reduced for all other most-favoured nation. Thus, big-nations has potential to exploit certain trade-agreements (Kosny, Santos & Reid 2017).
· The...