Bringing Australia and the EU Closer: Is an FTA a Solution? (Chapter 10)

Abstract

At a time when the prospects for finalising the Doha Round of trade negotiations is bleak, it is timely to consider what kind of trade policy agenda governments should be pursuing. One possible approach is the continuation of strategies based on the negotiation of preferences through bilateral and regional deals. Another approach would be to refocus attention on trade liberalisation based on the most favoured nation (MFN) and national treatment principles of the international trading system, supported by domestic reform. Such an approach would be directed at enabling economies to adapt to the increasingly integrated global trading environment and to reach their productive potential. Bringing the like-minded trade-oriented economies of the European Union (EU) and Australia together provides the opportunity to eliminate remaining impediments to trade and investment between the regions according to MFN/national treatment principles. It also affords an opportunity to consider mutually beneficial behind-the-border reforms. Show more