The elimination of economic protection in Australia

Historically, Australia has been one of the most highly protected countries on earth. Australia uses protection in order to keep its young, relatively inefficient industries competitive on a global stage. There are 3 main types of protection used in Australia; these include tariffs, import quotas, and subsidies. Only over the past 30 years has Australia begun to reduce protection levels, first starting with the Whitlam government in 1974. The gradual reduction of protection in Australia will bring many …

…awareness of globalisation will probably see Australia as a player in numerous bilateral trade agreements; such are the current negotiations with USA, Thailand, and Malaysia. Australia should be aware that the increase in imports brought on by free-trade may increase the CAD, but re-allocation of resources should increase our exports also, thus providing us with the funds required to lower the total expenditure on imports. Australia has a bright future in the increasingly globalised world.