Australia will from Tuesday provide entirely free access to its markets for the world’s 50 poorest nations, fulfilling a promise the government made almost a year ago, Trade Minister Mark Vaile said on Monday.
Tariffs on goods from the 49 least developed countries (LDCs) and East Timor will be abolished, as will quotas on any of their imports.
The government committed to make the move at a meeting of the Asia-Pacific Economic Cooperation (Apec) in October last year.
”Economic growth is the best way to attack poverty and this initiative will help the poorest to increase their exports and living standards,” Vaile said in a statement.
”Now LDCs and East Timor will have duty free and quota free access for all products from tomorrow [Tuesday].”
Imports of products from LDCs makes up less than half a percent of Australia’s total imports, or a little over $250-million.
Bangladesh and Burma, with their textiles industries, Yemen, with petroleum, and Samoa, with automotive components, comprise the four biggest trade partners among the LDCs.
Some countries, such as Burkina Faso, Guinea-Bissau, Togo and Bhutan, do not even trade with Australia.
Exports from Bangladesh are expected to grow between 2,5 and 11 times existing levels, with smaller increases from Cambodia, Burma and Nepal.
Australia’s textiles industry is expected to lose about 100 jobs while the price of clothing should drop by 0,05%.
The cuts in tariffs will range from zero for some countries, to almost 20% for other nations that trade in traditionally heavily-protected goods. Canberra will lose about $2,5-million in tariffs as a result of the changes. – Sapa-AFP