After US President Donald Trump pulled out from the Trans Pacific Partnership (TPP), a massive regional trade deal backed by Australia and other regional neighbours, US Vice President Mike Pence first official visit to Australia last month has confirmed the position of Australia and US as allies and trading partners.
The meeting between Mr Pence and Australian business leaders came to reassure Australia-United States Free Trade Agreement signed in 2005 stands, with further interested in eliminating any remaining trade barriers to help make trade smoother between the two countries.
Read more about US Vice President visit to Australia here
Read more about the TPP here
The reassurance comes as good news for US businesses exporting goods to Australia.
The Australia – United States Free Trade Agreement was signed on 18th May 2014 and came into effect on 1st January 2015. The agreement defines preferential rates of duty for US goods entering Australia and vice-versa if the goods comply with the AUSFTA Rules of Origin.
AUSFTA Rules of Origin
The rules of origin aim to establish the origin of the goods being traded as the preferential rates of duty will only apply to US / Australia originating goods.
To comply with the Rules of Origin, goods must be:
- goods that are wholly obtained or produced entirely in the US;
- goods that are produced entirely in the US, or in the US and Australia, exclusively from originating materials;
- goods, other than clothing and textiles, produced entirely in the US, or in the US and Australia, from non-originating materials, or a combination of non-originating and originating materials;
- chemicals, plastics or rubber; and
- clothing and textiles produced entirely in the US, or in the US and Australia, from non-originating materials, or a combination of non-originating and originating materials.
For further information on the AUSFTA, visit http://www.border.gov.au/Busi/Free/Unit
http://dfat.gov.au/trade/agreements/ausfta/pages/australia-united-states-fta.aspx
Sources:
- Australian Government – Department of Foreign Affairs and Trade: http://dfat.gov.au/trade/agreements/ausfta/pages/australia-united-states-fta.aspx
- Australian Government – Department of Immigration and Border Protection: Business, Agents and Trade Professionals http://www.border.gov.au/Busi/Free/Unit
- News.com.au – Donald Trump’s Vice President Mike Pence arrives in Sydney: http://www.news.com.au/national/politics/donald-trumps-vicepresident-mike-pence-arrives-in-sydney/news-story/1eb311d4953ad4e93c0551a85c7d02a