In recent years, there has been talk of a potential Free Trade Agreement (FTA) between Australia and Canada. The idea of lowering tariffs and increasing trade between these two countries has been the subject of numerous discussions and negotiations.

So why are Australia and Canada considering a free trade agreement? The answer lies in the potential economic benefits that trade between the two countries could bring. Both countries are highly developed and have stable political systems. They also share similar values and a commitment to free trade, making a potential agreement favorable for both parties.

According to a study by the Australia-Canada Economic Leadership Forum, an FTA could increase trade between the two countries by up to 50%. This would lead to increased economic growth, job creation, and investment opportunities.

One of the main sectors that would benefit from a free trade agreement would be agriculture. Both countries are major exporters of agricultural products, and an FTA could open up opportunities for increased trade in this area. Additionally, the mining and energy sectors could also see benefits from increased trade and investment.

However, there are also potential downsides to a free trade agreement. Some industries, such as manufacturing and automotive sectors, may face increased competition from imports. This could potentially lead to job losses and economic hardships for certain regions.

Negotiations for the FTA between Australia and Canada began in 2017 but have been stalled since 2018 due to disagreements over certain agricultural products. However, in August 2021, Canadian Prime Minister Justin Trudeau announced that Canada was ready to resume talks.

If an FTA is agreed upon, it would be a significant development in the economic relations between Australia and Canada. It would also signal a commitment to free trade and fair competition, which could encourage other countries to follow in their footsteps.

In conclusion, a free trade agreement between Australia and Canada could bring significant economic benefits to both countries. While there may be some challenges to overcome, the potential gains are substantial. As negotiations continue, it will be interesting to see what the future holds for this potential FTA.