Defining the relationship between Australia and the European Union: is the framework treaty enough?

Australia is currently negotiating a framework treaty with the European Union (EU) that aims at closer cooperation on a wide range of shared policy goals. The treaty is not expected to include trade-liberalisation commitments. This article queries why this is, given the importance of trade and business relations with the EU for Australia, and the fact that the EU exerts international influence primarily as a trade power, rather than a foreign and security policy power. Since 2006, the EU has also been negotiating ‘new-generation’ bilateral free trade agreements (FTAs), focusing on tariffs and regulatory non-tariff trade barriers. It has now committed itself to FTA negotiations with many of Australia's trade partners in Asia and the Organisation for Economic Co-operation and Development. An FTA and a complementary framework treaty were concluded with South Korea in 2010, and the EU is currently negotiating a similar package with Canada. As Australia and Canada are comparable trade partners for the EU, the article argues that an FTA on the EU–Canada model could be a more effective avenue for Australia to achieve deeper engagement with the EU.     

Overcoming legacies of foreign policy (dis)interests in the negotiation of the European Union–Australia free trade agreement*

ABSTRACT

Despite a troubled trade history dominated by disputes over agriculture, the negotiation of a European Union (EU)–Australia free trade agreement (FTA) was initiated in 2015. The initiation of these negotiations was made possible because of the shift in EU trade policy towards the negotiation of what the EU terms ‘new generation free trade agreements’. The EU has concluded FTA negotiations with South Korea, Singapore, Vietnam and Canada, and is negotiating other FTAs— notably with Japan and the USA . The EU faces many commercial challenges to its FTA negotiations that go beyond tariff reduction, including the protection of its geographical indicators, public procurement and investor–state dispute settlement. These issues are likely to be substantial features of any EU FTA with Australia. In addition to these challenges, the promotion of sustainable development interests and human rights through FTA negotiations is an important component of the EU’s approach. The EU’s position on the trade-related aspects of sustainable development and the negotiation of human rights conditionality has presented significant challenges to the EU’s trade agenda, particularly in negotiations with Canada and Singapore. This article draws lessons from the EU’s new generation trade agreement negotiations to date. It compares these negotiations with Australia’s approach to FTA negotiations, and analyses potential stumbling blocks for an EU–Australia FTA in light of past tensions in the relationship. The article argues that shifts in both EU and Australian trade policies and positive developments in the relationship mitigate past obstacles to a negotiated agreement. However, EU– Australia relations still suffer from the tyranny of distance. The resulting deficit in foreign policy salience between the EU and Australia broadens the best alternatives to a negotiated agreement.     

Drivers and difficulties in the economic relationship between Australia and the European Union: from conflict to cooperation

ABSTRACT

Economic relations between Australia and the European Union (EU) have always been strong, but they have not always been easy. They have been difficult for Australia because it associated the EU with the loss of the UK preferential export market on its entry into the then European Economic Community. And because Australia associated the EU with the original Common Agricultural Policy, which combined subsidies for agricultural production and high agricultural tariffs to make Australian agricultural exports not competitive. They have been difficult for the EU also. Australia developed a biosecurity system to protect its agricultural sector: quarantine requirements and food safety standards made the importation of EU plant and animal products too costly. Yet Australia and the EU need each other. The EU, which is Australia’s largest services trade and investment partner, supplies the business services that drive a knowledge economy and provides the credit to finance economic development. Correspondingly, the EU needs Australia both as a commercial base in Asia and as a reliable energy supplier. This article analyses the drivers and difficulties in the economic relationship between Australia and the EU as they start negotiations for a free trade agreement.     

Trade,culture and the European Union cultural exception

ABSTRACT

The article examines how the European Union has addressed the ‘trade and culture debate’ in its international trade agreements. From a cultural exception approach based on an attempt to detach culture from trade provisions, the European Union economic agreements seem to evolve to a broader and more holistic position aiming to promote cultural exchanges through cooperation, while still safeguarding policy space in cultural matters through its traditional cultural exception. The article provides an overview of the European positions to defend the specificity of the audio-visual services sector at the multilateral (World Trade Organization Agreements), regional and bilateral levels. It also examines how the implementation of the 2005 UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions has led the European Union to negotiate cultural cooperation provisions in parallel to some of its recent bilateral and regional trade agreements and the way this Convention may impact the understanding of the ‘trade and culture debate’.     

宏观背景因素对海外移民企业家创业的影响--以澳大利亚的中国商业移民为例

论文基于2019年对阿德莱德和墨尔本两个州府城市的实地调研,主要探讨三个问题:一是宏观背景下的商业移民如何改变其人口与社会经济特征;二是宏观层面因素如何重塑商业移民的发展机会结构;三是中澳经贸关系现状对商业移民有何影响。研究显示:中国和澳大利亚的制度因素和经济背景,对于商业移民的影响在不同历史阶段其作用并非等效。中国近20年来的经济发展对于商业移民特征的转变起着主导作用,澳大利亚移民政策则在呼应改变的同时,间接促成了商业移民内部的组内差异。对于商业机会结构的转变,中国国内经济发展带动的需求市场起到良好促进作用,而澳大利亚的经济发展格局和相关的移民政策与制度作用则更为关键。     

Assessing Australia’s options in the context of Brexit: engaging with the UK and the European Union

ABSTRACT

The Brexit vote will fundamentally transform the European Union (EU) and will change how the UK relates to Europe and the rest of the world. What are the implications for Australia at this critical juncture? The UK has been a major player in the Australia–EU relationship, and Australia will now need to recalibrate its approach to both the UK and the EU across a range of policy areas. This article examines the future of Australia–UK and Australia–EU relations in the wake of Brexit, and assesses Australia’s options going forward. The authors advance three considerations. Firstly, Australia’s national interests are best served by adopting a pragmatic rather than nostalgic approach towards future relations with the UK and the EU. Secondly, Australia should avoid pursuing one relationship at the expense of the other and creating a zero-sum dynamic. Finally, Australia’s future strategy must consider broader global developments, such as events within its own region and the US presidency.     

Australia’s relations with the European Community in a historical perspective: an elusive partnership

ABSTRACT

In 2015, Australia and the European Union successfully negotiated a Framework Agreement. This agreement is an essential step in establishing a stronger Australia–European Union partnership and achieving closer bilateral cooperation. For years, negotiating such an agreement had proved impossible. In the 1970s, successive Australian governments showed interest in enhanced collaboration with the European Community, but the political climate for closer relations was far from encouraging. This article explains why this was the case. In doing so, it also explores how the Whitlam and Fraser governments envisaged, framed and developed Australia’s ties with the European Community in the 1970s, and asks whether a more positive approach on their part could have led to a stronger relationship. Based on recently declassified government files, this article shows that although both Whitlam and Fraser fully grasped the importance of the European Community as an emerging international actor and were willing to deepen Australia’s ties with it, significant constraints existed against enhanced bilateral cooperation. With the Common Agricultural Policy still a considerable challenge to Australian economic interests and with the European Community focused mainly on the management of its internal market, broader political considerations were inevitably relegated to the margins of Australia–European Community consultations.     

Do we need more economics in Australian economic diplomacy?

ABSTRACT

Economic diplomacy—that is, informal and formal processes and links between states and non-state actors on international economic issues—is a current focus of Australian foreign policy. The Department of Foreign Affairs and Trade’s stated economy diplomacy aims are liberalising trade, boosting economic growth, encouraging investment and assisting business. If Australia is to embrace a genuine and effective notion of economic diplomacy there are two problems to be overcome. First, DFAT’s economic diplomacy framework is incomplete and misses the bigger economic picture, particularly the role of Australia’s key economic agencies, Treasury and the Reserve Bank of Australia. Second, DFAT does not consistently apply economic principles to foreign affairs issues including trade, foreign aid and the global investment agenda. Going forward, Australia should abandon the focus on the four narrow pillars and instead focus on developing a clear, coordinated international economic strategy that articulates Australia’s core international economic objectives and priorities.     

Brexit,Ireland and the World Trade Organization: possible policy options for a future UK–Australia agri-food trade agreement

Prior to the UK’s accession to the then European Economic Community in 1973, Australia was a significant supplier of Britain’s food. Membership of the European Union (EU) resulted in trade diversion, closing the British market to Australian sugar, for example. This article questions whether the UK’s exit from the EU (‘Brexit’) might usher in a new agri-food trade regime, restoring Australian farmers’ access to the British market, or whether other opposing political economy considerations might prevail. Would the UK unilaterally adopt free trade? Can a comprehensive free trade area agreement between Australia and the UK, including agri-food products, be negotiated? Any new relationship will need to reflect the UK government’s stated preference for a frictionless border with EU 27 (particularly on the island of Ireland), the World Trade Organization’s rule book, and the interests of the UK’s farm lobbies, as well as the UK’s quest for ‘free trade’ with the wider international community.     

Australia’s trade diplomacy and the Trans-Pacific Partnership: ‘you’ve got to row your own boat’

ABSTRACT

As part of its economic diplomacy, Australia has directed intense effort into both bilateral and plurilateral trade negotiations such as the Trans-Pacific Partnership. According to then Minister for Trade and Investment Andrew Robb, with no major multilateral trade deal in decades, you have to ‘row your own boat’ or risk missing out. With the fundamentals of trade and the nature of trade negotiations changing, trade liberalisation has become an increasingly sophisticated and difficult negotiating area. A case study of the controversial TPP shows the tensions for a middle power navigating this space. The benefits of the TPP are contested and the government faces criticism of the adverse impacts of the agreement, especially investor-state dispute settlement clauses, impact on human rights and suspicion that the TPP is motivated by geopolitical drivers. In order not to lose more than it gains in moving away from the multilateral trade system, Australia must ensure that trade agreements are consistent with WTO rules and have open and fair accession regimes as a basis for signing. Finally, there is the need for higher levels of transparency and democratic accountability than has historically applied. A new white paper is necessary to make the case for trade liberalisation.     

Free Trade Agreements and the Neo-Liberal Economic Paradigm: Economic,Ecological, and Moral Consequences

Abstract

Since signing and implementing the North American Free Trade Agreement (FTA) in the early 1990s, the United States has pursued other free trade agreements with nations in Latin America and Asia. The premise undergirding FTAs is that trade liberalization within the neo-liberal global economy produces economic growth and development among all parties, and reduces poverty in poor nations. We examine arguments of proponents of free trade and the neo-liberal economy— particularly those of Martin Wolf, author of Why Globalization Works— to test these claims. We explore alternatives that center on norms of ecological sustainability and social justice, holding these two as inseparable. The central moral question of how to achieve needed socioeconomic development in the Global South in ways that are both ecologically sustainable and socially just frames our analysis. We conclude by proposing five principles for an alternative, more sustainable and equitable economic paradigm.     

Australia’s relationship with the European Union: from conflict to cooperation

ABSTRACT

After decades of tension, Australia and the European Union (EU) now have a substantive relationship, interacting and cooperating with each other within a wide range of areas. The relationship is currently at a critical turning point. The Framework Agreement has, for the first time, elevated the relationship to a treaty level. It strengthens Australia–EU actions and interests on bilateral, regional and multilateral issues. There is considerable potential for closer cooperation and more extensive pooling of the resources and capacities of both interlocutors on a range of policies and within the multilateral context. This article provides an assessment of the relationship, the current state of play and key challenges facing the relationship as the EU and Australia forge stronger ties through the conclusion of a Framework Agreement and the commencement of discussions on a Free Trade Agreement at the same time as the UK’s exit negotiations from the EU. It demonstrates that, although there are challenges facing the relationship, there are also significant opportunities to further develop and strengthen ties.     

Outstanding issues in bilateral economic relations between Australia and South Korea

This article examines and analyses the main issues in the current bilateral economic relations between Australia and South Korea, particularly focusing on the Korean perspective. Above all, the trade imbalance continuously favouring Australia has been an issue of great concern on the part of South Korea. Australia and South Korea have shown disagreement over the lopsided trade issue, regarding attitude, approach and standpoint in addressing it. While the Korean side broadly converges on the view that the bilateral trade imbalance needs to be redressed, there are four differing viewpoints on explaining the lopsided bilateral trade: (i) the Korean government's view; (ii) the Korean business sector's view; (iii) the relevance of culture; (iv) Korea's favourable perception of Australia. This paper seeks to answer an important question in the context of the two nations' economic/trade relationship: why South Korea has ever engaged with Australia on good terms, albeit with disadvantageous trade relations. In this case, the nexus of economics and politico‐security is largely in action. That is, on one plane, South Korea is ranked as an important trading partner and a major export market of Australia. On another plane, South Korea politically needs strong allies like Australia which can give an unswerving support for it in both the regional and international arenas.     

Australia’s engagement with the European Union: partnership choices and critical friends

ABSTRACT

This article examines the development of Australia’s relationship with the European Union (EU) by focusing on drivers and obstacles. Underlying the relationship are the burden of memory and common interests and values. It argues that, although the past still resonates, the changes to the range and depth of interests and values have resulted in a more fruitful engagement. It suggests that a history of a negatively framed context of engagement, characterised by Australian critiques of the EU and, in turn, by EU neglect of the relationship, has contributed to distance between the two interlocutors. It is only in recent years that this distance has been bridged and perceptions have changed. Australia has chosen partnerships with the EU that enhance its economic and political choices. Links with a long-term partner, the UK, are being recast as Brexit presents a new challenge at a time of Australia’s stronger engagement with the EU through a key agreement and trade talks. Finally, the article argues that Australia and the EU are critical friends.     

Australia's Economic Ambitions in French New Caledonia, 1945–1955

ABSTRACT

From 1945, consistent with its broader South Pacific ambitions, Australia sought to strengthen its economic position in New Caledonia. The leaders of the European-descended ‘Caledonian’ community wanted economic autonomy for the territory and improved trade with Australia. Yet the opportunity proved illusory. France remained committed to imperial preference and economic dominance. Its revival was underwritten by Marshall Plan aid, including in New Caledonia. Australia failed to provide enough of the coal that appeared to offer economic influence. In the 1950s the Melanesians gained the vote, and the Caledonians lost political power. Conservative governments in Australia showed less interest than their Labor predecessors. Australia would have welcomed an economically autonomous New Caledonia with close Australian links, but this idea clashed with France's centralist and unitary traditions. In the tension between New Caledonia's geography and its history, France had ensured that history won.     

Myth of the Triad? The Geography of Trade and Investment 'Blocs'

The notion that the world is increasingly divided into a triad of economic regions based on North America, the European Union and Japan has become a form of conventional wisdom across a range of disciplines. However, despite the near ubiquitous use of the idea of a triadized world, it remains a somewhat normative assertion, the empirical existence of which has yet to be demonstrated. By using the intramax method to analyze the intensity of international trade and foreign direct investment flows during 1985 and 1995, we examine the changing shape of trade and investment 'blocs' globally. We find that while international trade is increasingly organized around fewer world regions, the presumed outcome of a triad-based world economy remains questionable. We further show that investment intensity patterns do not currently conform to any bloc-like formation, but exhibit instead, globally diffused network regions.     

Canada’s Supply Management System and the Dairy Industry in the Era of Trade Liberalization: A Cultural Commodity?

ABSTRACT

Canada’s dairy farmers have spent the last 40 years fighting to preserve their supply management system despite increases in the desire to liberalize trade through the expansion of regional free trade agreements and the targeting of agriculture in recent rounds of the General Agreement on Tariffs and Trade (GATT). How has Canada’s supply management system resisted trade liberalization thus far? Moreover, what strategies have Canadian dairy farmers used to lobby the government to preserve this system? The answer to these questions lay within the intersection of culture and economics. Canadian dairy farmers have been successful in framing Canadian dairy as a distinctly Canadian cultural commodity, and therefore framing supply management as the economic tool needed to defend this cultural commodity. In exploring this topic, this article will touch on Canada’s history of preserving cultural institutions, as well as the historical importance of Canada’s supply management system.     

Searching for the Land of the Golden Cocoa-Nut: Australian Travel Writing about Commercial Enterprise in the Pacific Islands

Pacific Island trade and commerce was a prominent theme in travel writing produced within Australia in the late 19th and early 20th centuries. This reflected the long history of European commercial exchange between the Australian continent and the Pacific Islands, and a European literary legacy that idealised the region’s economic potential. This article explores popular perceptions of commercial enterprise in the Pacific Islands as expressed in travel writing, focusing on authors with a significant connection, by birth or affiliation, to either the Australian colonies or the Australian nation. The formation of a distinctively ‘Australian’ vision of the Pacific that evolved since European exploration is traced. The voice that took shape in literary form in the Australian colonies during the late 19th century contributed to a national narrative in the early 20th century that imagined the Pacific Islands as a region for Australian investment, profit and colonial enterprise.     

Australia and the European Union in the World Trade Organisation: partners or adversaries?

Shared interests between Australia and the European Union (EU) in multilateral trade negotiations are increasing. However, the relationship in the WTO continues to be defined by conflicts over agriculture. This article examines the case for closer Australia-EU co-operation on shared interests in WTO negotiations while continuing to press for more rapid reform of EU agriculture policies. It traces the major changes in the interface between Australia and the EU in the WTO, including the re-structuring of the Australian economy over the past two decades and the more recent efforts by the EU to modify the trade impact of the Common Agriculture Policy (CAP) on world agriculture trade. The article concludes that closer co-operation between Australia and the EU in the WTO on shared interests would enhance Australia's influence in the multilateral trade system.