The federal government is going to push free trade in an attempt to improve the economic condition of Australian states that have not benefited by the mining boom. Prime Minister Julia Gillard is going to give a thrust to a new round of trade liberalization to help non-mining states that are struggling to keep pace with the resources boom.
Trade Minister Craig Emerson will announce the new 27 page trade policy. There has been considerable debate within the Labor Party on tackling the productivity reform without it costing them votes or harming businesses. Leaders like Wayne Swan have asked for political caution while other ministers have asked for the reforms.
Prime Minister Julia Gillard feels that the government must use the free trade pathway to provide more jobs and enhance prosperity in the states that have not been able to benefit directly from the mining boom. That way these parts of Australia will not get left further behind economically speaking.
As per the policy document an economic reform program designed to restart productivity growth as the basis for securing the competitiveness of Australian industries - mining and non-mining is essential. The document also mentions that the government is willing to conclude a trade agreement with any country willing to sign up to a high-quality and comprehensive bilateral or regional trade deal that is consistent with global trading rules.
The document said that history has taught us that the entanglement of trade policy and foreign policy can have tragic consequences. The policy is being appreciated by economists who see it as a return to the Hawke philosophy. The said that trade policy is central to good economic policy.