Australia's Trade and Investment Strategy in the Post-COVID-19 Era

Abstract

This chapter examines how the trade and investment relationship between Australia and the Asia-Pacific nations has been evolving over the past decades. The chapter also reflects on the gradual shift of trade and diplomatic relationships in this region since the outbreak of the COVID-19 pandemic. The ongoing global pandemic has not only been disrupting the global economic and geopolitical environment but also reshaping the trade relationship in the region. The chapter explores the greater trade and investment opportunities between Australia and South Asia with a special emphasis on the increased potential bilateral trade partnership with Bangladesh. Following the neoclassical comparative advantage theories, this study suggests that long-run economic benefits and synergies can be enhanced by utilising the ample trade opportunities created by the COVID-19 pandemic to achieve numerous UNSDGs. Therefore, strengthening further trade and diplomatic alliances between Australia and Bangladesh will be mutually beneficial and generate positive growth and development effects for both countries.