Impact of the Australia-US Bilateral Free Trade Agreement
Apr 2004 report
Prepared for the Department of Foreign Affairs and TradeThe most probable effect on macroeconomic welfare after a decade, as represented by real gross national product (GNP), is an increase of $5.6 billion per year above what it might otherwise be. A decade from now the most probable effect of the Agreement on Australia’s real gross domestic product (GDP) is an increase of $6.1 billion per year, or nearly 0.7 per cent above what it might otherwise be.
Real GNP is a better measure of welfare gain to Australians than real GDP since investment is liberalised as part of the Agreement and additional payments to foreigners are required to service the extra foreign investment. GNP excludes payments to non-residents.
This study uses two economic frameworks (global general equilibrium models) to quantify the economic impacts of AUSFTA — the G–Cubed model and the Global Trade Analysis Project (GTAP) model.
View report online [pdf, 832KB]
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Sydney: TheCIE, Suite 1, Level 16, 1 York Street, Sydney NSW 2000
Photography by Image Makers