Australian Foreign Policy and Trade
• Economics has traditionally been linked to
• DFAT is an example of this. (Department of
Foreign Affairs and Trade)
• Economic matters were given the same
importance as foreign affairs.
The Australian Economy
• Australian GDP in the mid 1990s was less than
5% of America’s.
GDP (2009) $858.8 billion $14.26 trillion
GDP per capita (2009) $40,400 $46,400
GDP (2010) $882.4 billion $14.66 trillion
GDP per capita (2010) $41,000 $47,200
• Phase 1 – British are most important trading
• “Men, Money and Markets”
• After WWII trade increased with nations
outside the British Empire at a great rate.
• The US, NZ, newly independent Asian states
(Indonesia, Singapore, Malaya).
• “Japanese Economic Miracle”: occupied by
the US after WWII, Japan introduced reforms
to their economy to bring it in line with the
west, capitalist economies.
• Trade with major Asian powers (Japan, China,
Korea, etc) becomes a much larger slice of
Australian Economic Activity.
• Deregulation of the Australian Economy
• Floating the Australian Dollar.
FTAs and Internationalism
• FTAs introduced with the US, others currently
being negotiated with Japan, China, etc.
• Aus also takes a very prominent role in
International Trade organisations
• GFC – Aus emerges with one of the strongest
western economies. This is due to what?
• (Article from The Drum)
• Australia has moved towards multilateralism
with more involvement in APEC and similar
• It was thought that Australia had to pursue
their national interests through regional and
multilateral channels when Britain was moving
away from unilateral trade.
• Australia decided to reduce tariffs on goods
into Australia by 25% in 1973.
• This had a mixed reaction.
• Some blamed the recession that followed
Whitlam’s government on this decision.
• Fraser, however, continued with market
liberalisation, and became a spokesman for
freer global trade.
• Hawke and Keating governments also sought
to prioritise economic objectives.
• Floating of the Australian dollar in 1983.
• Australia committed itself to multilateralism,
but barriers to free trade were still around.
• Aus protected it’s own manufacturing
• USA and EU unwilling to reduce protection in
their agriculture sectors.
• “Cairns group of agricultural exporters”
founded by Hawke.
1. Define ‘protectionist’ and give some
examples of protectionist policies.
2. Why do some governments employ
3. What are the benefits and drawbacks of such
• “Liberal Rule” DVD