The Australia-United States Free Trade Agreement (AUSFTA) is an agreement that was signed on May 18th, 2004. The agreement was signed with the aim of promoting trade between the two countries and increasing economic growth.
The agreement mainly focuses on reducing or eliminating tariffs on goods traded between Australia and the United States. This has led to increased trade between the two countries, with many businesses benefiting from the agreement.
One of the major benefits of the AUSFTA is the increased access for Australian businesses to the US market. With the elimination of tariffs on goods such as beef, wheat, and wine, Australian businesses now have greater access to the lucrative US market.
On the other hand, the agreement has also created opportunities for US businesses to expand their operations in Australia. With the elimination of tariffs on goods such as machinery, vehicles, and pharmaceuticals, US businesses can now import products into Australia at a reduced cost.
In addition, the agreement has also resulted in increased investment between the two countries. The agreement has provided a framework for businesses to invest in each other`s markets, resulting in increased economic activity and job creation.
However, the AUSFTA has also been the subject of some controversy. Some critics argue that the agreement has led to a loss of jobs in both countries, with cheaper goods being imported from the other country, resulting in local businesses being unable to compete.
Overall, the Australia-United States Free Trade Agreement has had a significant impact on the economies of both countries. While it has resulted in increased access to each other`s markets and increased investment, it has also been the subject of criticism for its impact on local businesses and employment.