The Proposed European and Australian Free Trade Agreement: And the Importance for Small and Medium-Sized Enterprises

Abstract

This chapter investigates how Free Trade Agreements (FTAs) can assist the small and medium-sized enterprise sector (SME) to benefit from reduced tariffs and opening overseas markets. It identifies the importance of SMEs when negotiating the proposed European Union Australian Free Trade Agreement (EU-Australian FTA) which commenced in 1995 when the EU and Australia agreed on a political framework to establish an FTA. This chapter argues how promoting SME trade emanating from Australia into the EU can strengthen economic ties with the EU and benefit Australian SMEs and that, just as the single EU market has benefitted SME’s across member states, Australian SMEs can benefit significantly through an EU-Australian free trade agreement that encourages and stimulates bilateral SME trade.