Trade and transport
FREE TRADE AGREEMENTS
In the services sector, therewill beagreater level of transparency and predictability across services sectors. Financial services companies will be able to provide cross- border insurance and brokerage services for risks relating to maritime shipping and international commercial aviation and freight. The CPTPP will promote foreign investment in Australia by liberalising the screening threshold for private foreign investments in non-sensitive sectors. The threshold will increase to AUD 1.154 million for member countries with an ongoing ability to screen investments in sensitive sectors. A number of new bilateral side letters were also signed between Australia and certain member countries that address matters such as e-payment services. Australia and Hong Kong signed the Australia-Hong Kong Free Trade Agreement ( A-HKFTA ) on 26 March 2019. As a Special Administrative Region of the People’s Republic of China, Hong Kong is able to enter into free trade agreements. Hong Kong is currently Australia’s 12th largest trading partner and the 5th largest source of foreign investment into Australia. The implementation of the A-HKFTA is expected to promote greater market access for Australian exporters of goods and services. AUSTRALIA-HONG KONG FREE TRADE AGREEMENT
COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP The Comprehensive and Progressive Agreement for Trans-Pacific Partnership ( CPTPP ), entered into force on30December 2018, for Australia, Canada, Japan, Mexico, New Zealand and Singapore, and on 14 January 2019 for Vietnam. A number of other member countries will join once their domestic ratification processes are completed. The CPTPP Agreement delivers the market access package that was agreed as part of the Trans Pacific Partnership Agreement (which was signed but failed to enter into force after the United States announced it was withdrawing). The CPTPP Agreement will remove tariffs on an estimated 95% of goods traded between eleven member countries. This is expected to build on the preferential market access Australia has already achieved through FTAs with Japan, Malaysia, Chile, Singapore, Vietnam, and Brunei. It also opens access to new markets in Canada, Mexico, and Peru.
Made with FlippingBook flipbook maker