Australian exports, and doha


Question 1. How are exports so beneficial to Australia?

For Australian businesses, the benefits that are associated with exporting overseas not only effect the specific firms associated but also play a vital role in presenting a clear framework for the entire country at large. Many Australian firms are venturing out of the domestic market and are focusing on foreign markets that contain a high-growth to improve their international competitiveness. Consequently, these firms are able to accumulate various benefits for the Australian economy.

As a result of exporting overseas, there has been a progression in the profile and competitiveness of Australian small and medium sized enterprises (SMEs) in the global marketplace. This can be seen through the Australia-United States Free Trade Agreement (AUSFTA), which has removed regulatory barriers between the countries and consequently improved access to the US market resulting in "raised awareness and interest of Australian small and medium sized enterprises (SMEs) entering the US market."

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One of the main reasons for the strong government interest in SME exports is due to the fact that based on microeconomic gains of various SMEs, the whole Australian economy is effected rather than solely the firms that export. By having more national SMEs exporting, microeconomic gains amass and concern the entirety of the Australian economy thus enabling "the Australian economy to function smoother and more flexibly, growing faster and reacting to external conditions quicker." Furthermore, "assist the long term rate of economic growth and employment"

Question 2. In what ways is the WTO's Doha Round important to Australia?

Doha Round, negotiations are taking place on how to reduce or eliminate tariff and non-tariff barriers on environmental goods and services. With this in mind, the WTO's Doha Round is seen to be vital to Australia in three key sectors which are agriculture, industrials and services. The Australian government is working hard to end the current stalemate between various nations to ensure that the Doha outcome benefits many Australian businesses as well as the country at large.

It has been well noted by various sources that on the conclusion of the WTO's Doha Round that Australian businesses will be affected in a positive manner by the outcome. During the ongoing saga that has resulted in suspension of negation between nations, it was stated that "The collapse in negotiation is a particular blow for Australian exporters as Australian companies stood to gain significantly from a successful conclusion of the Doha negotiations." Furthermore, in 2008, The Hon Simon Crean MP backed up the importance of an agreement being reached with various nations by stating "the WTO's Doha Round would offer unequivocally the biggest potential trade and economic gains not just to Australia, but to the region and the world." With this in mind, it is evident that when a joint agreement between various nations to eradicate tariffs is agreed upon, it will lead to greater economic potential for the entire nation as it would be likely to create further jobs and require a relocation of jobs between industries and regions to meet growing demands internationally.

The outcome in the WTO's Doha Round has significant implications for the growth prospects of Australia as Agriculture plays an important role in Australia's economy. Agriculture directly contributes around 3 per cent of gross domestic product (GDP) in Australia and employs around 308 000 people and generates up to $37.3 billion in gross value each year . By removing tariffs, production levels will be positively affected and hence an increase in GDP.
According to research by Kym Anderson and Will Martin, global welfare could be boosted by as much as $300 billion per year. With this in mind, it is evident that the Australian government find it imperative to ensure that personal needs of the nation are met by means of ending the current halt in negotiations and proceedings between various nations.

O'Cass, A., & Julian, C. C. (2003). Examining firm and environmental influences on export marketing mix strategy and export performance of Australian exporters.
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Charpentier,N (2006) Australia-United States trade: recent trends [internet]

Harcourt, T (2002). Australia to reap dividends when SMEs compete overseas, Australian Financial Review, pp 4, August 1


Hudson A, Hunt & Hunt, 2006. The Failure of the Doha Round and the Consequences for Australia [internet]

Crean S, (2008). Trade Policy Briefing: Meeting the Challenges - Address to the Australian Davos Connection, 12 March [internet]

ABARE (Australian Bureau of Agricultural and Resource Economics) (2008). 'Statistical tables', in Australian Commodities, vol. 15, no. 1, March quarter, pp. 283-319.

Australian Bureau of Statistics (ABS) Agriculture Industry, Cat. no. 1301.0 - Year Book Australia, 2008, Canberra

Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2006. "Doha merchandise trade reform : what's at stake for developing countries ?," Policy Research Working Paper Series 3848, The World Bank.