When it comes to international trade, free trade agreements (FTAs) play a crucial role in promoting economic growth and enhancing trade relations between countries. As a professional, one of the most commonly asked questions I come across is whether there is a free trade agreement between Canada and Australia.
The answer is no, there is currently no free trade agreement between Canada and Australia. Despite being part of the Commonwealth and having similar economies driven by natural resources, both countries have not been able to sign a comprehensive FTA. However, there have been discussions between the two countries for a potential agreement, which could potentially boost trade and investment opportunities between the two nations.
Canada and Australia have had several rounds of negotiations for a free trade agreement in the past. However, these discussions failed to materialize into a comprehensive agreement due to several factors such as disagreements over intellectual property rights, agriculture, and procurement policies.
Despite the absence of a formal FTA, trade between Canada and Australia has been growing steadily. In 2020, the total bilateral merchandise trade between the two countries amounted to over $2.8 billion. Canada`s top exports to Australia include metallurgical coal, copper, and aviation parts, while Australia`s top exports to Canada include gold, ores, and wine.
The lack of a free trade agreement between Canada and Australia has not dampened the business relationship between the two countries. Both countries continue to explore avenues for cooperation, such as joint research projects and collaboration in the fields of education and tourism. Additionally, Canada and Australia are both members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement that includes 11 Pacific Rim countries and aims to promote trade and investment across the Asia-Pacific region.
In conclusion, while there is currently no free trade agreement in place between Canada and Australia, trade and business relations between the two countries remain strong. With ongoing discussions for a potential agreement, there is potential for increased trade and investment opportunities between the two nations in the future.