Free trade agreements that spark competitiveness
Australia is an open economy that is deeply integrated in global trade. A network of 15 free trade agreements grants Australian exporters preferential access to markets across Asia, and in North and South America.
In 2020, Australia joined the world’s largest free trade agreement, the Regional Comprehensive Economic Partnership (RCEP). The RCEP encompasses 2.3 billion people and 30% of global GDP. Australia is negotiating further trade agreements with the United Kingdom (UK), the European Union (EU) and India.
Around three-quarters of Australia’s two-way trade occurs within the Asia-Pacific region. Market diversification is underway to build a resilient trading network.
Australia also maintains strong trading links with traditional partners. The EU and the UK together account for 13.2% of Australian trade and the US another 9.3%.
Investors trust Australia as a stable and highly profitable destination for investment capital. Despite bushfires, drought and lockdowns, foreign investment grew 2.5% in 2020.
Sustained investment in Australia demonstrates our ongoing appeal. Over the past 20 years, the total stock of foreign investment in Australia has grown, on average, 8% per year. The US, the EU, Japan, the UK and Canada are still our biggest investors.