Fed: Too many FTAs may eat into business profits

AAP General News (Australia)
08-14-2004
Fed: Too many FTAs may eat into business profits

A conference has heard that businesses may suffer growing costs as more bilateral trade
deals are struck.

Businessman PETER GALLAGHER has told a conference on a possible Australia-China free
trade deal that while there are benefits for businesses when an FTA is struck, the sheer
number of trade deals being considered could lead to problems.

He says any competitive edge gained will dissipate as third parties strike their own
bilateral deals, while additional compliance costs will endure.

Australia has struck FTAs with Singapore, Thailand and the US in the past two years,
and is conducting studies into deals with Malaysia and China.

But Mr GALLAGHER says a deal with China could offer more benefits to Australian farmers
than similar deals struck with the US or Thailand.

AAP RTV sw/sb/ea/jo

KEYWORD: TRADE CHINA FARM (SYDNEY)

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