Vietnam Australia Free Trade Agreement

With regard to goods, each free trade unit should include all tariff and non-tariff measures. It should comprehensively address barriers in the service sectors, including education, professional services, telecommunications and financial services. Similarly, measures to strengthen cooperation and/or promote liberalization in areas such as customs procedures, technical barriers to trade in industry, investment, the free movement of individuals (particularly businessmen), e-commerce, intellectual property and public procurement would bring considerable benefits. Any free trade agreement should include a review in order to become, over time, a basis for the development of cooperation. [40] 6.21 Austrade also indicated that a trade strategy was being prepared: the Vietnamese government must also continue on the path of reforms – strengthening the banking sector, eliminating corruption, improving legal and fiscal structures and improving trade facilitation. Export Finance Australia is Australia`s export credit agency that aims to help companies overcome the financial barriers they face in exporting. By offering a wide range of export financing solutions, it helps exporters take advantage of trade opportunities. Export Finance Australia also offers updated periodic country risk analyses. In order to avoid default in collaboration with local partners, Austrade encourages companies to complete due diligence and require a standby letter of credit issued by a central branch of a trusted bank or commercial credit insurance. 6.48 In order to assess the potential trade benefits of the proposed free trade agreement, an independent economic modelling of the study was commissioned in both countries. The results provide information on the impact that a free trade agreement could have on bilateral trade and investment flows as well as on economic prosperity.

… The results indicate that the well-being of both countries would increase with the conclusion of a free trade agreement. Welfare gains for both countries could be 0.15 per cent and 1.14 per cent of gross domestic product (GDP) for India and 0.23 per cent and 1.17 per cent of GDP for Australia.