Australian approaches to countertrade: State and firm responses

Countertrade (or barter trade) has become an important element of the international political economy in the past 15 years, and is said to typify the emergence of neo‐mercantilist tendencies in the international system. The implications for Australia arising from this alteration in the ‘rules of the game’ with respect to the international system are profound. This article explores how the Australian government, and Australian‐based firms, have responded to the emergence of countertrade. We demonstrate that in the absence of government leadership on the issue, firms have developed their own coping mechanisms of dealing with countertrade.