Australia joined the biggest trading agreement which consists of a 15-nation partnership that accounts nearly a third of global output.
On Sunday, Prime Minister Scott Morrison and his Trade Minister Simon Birmingham will sign the Regional Comprehensive Economic Partnership.
“This is a huge accomplishment,” Senator Birmingham told reporters in Canberra.
“This is an incredibly important agreement in terms of the timing … we see huge pressures globally on the trading system and of course pressures Australia faces too.”
A common set of rules for digital trade and intellectual property is provided by the agreement aside from the goods trading, while providing better market access for Australia’s service industries – such as financial services, health care and education.
Senator Birmingham welcomed the fact that for eight years in the making, Australia and China have been partners in the agreement.
“It is an important sign of our willingness to work in regional cooperation and regional economic partnership,” Senator Birmingham said.
“There are difficulties at present and I am deeply concerned by the fact that in a number of areas Chinese regulatory action have disrupted trade flow.”
Part of the 10 members of ASEAN deal are Australia, Japan, China, South Korea and New Zealand.
Business groups saw the trade agreement as critical for Australia’s recovery from the COVID-19 recession.
“Australians need jobs and selling more of our world class products and services to the world is one of the best ways we can create them,” Business Council of Australia chief executive Jennifer Westacott said.
“Our success over the last 30 years has been built on trade and investment with Asia. This agreement will help lock in a new wave of growth and new jobs just when we need it most.”
This agreement will put Australia and Asia Pacific region at the forefront of modern trade rules says Australian Industry Group chief executive Innes Willox.
“While FTA gives limited new market access to individual markets, the uniform rules for trading in the region will support regional supply chains and improve the international competitiveness of Australian companies,” he said.
But Australian Unions said there was no evidence the historic trade deal will create more jobs for Australians.
“This is one of the biggest trade deals in history but the government doesn’t know if it will create a single job in Australia,” the organization tweeted.
“Workers deserve to know what is being negotiated on their behalf. The system is broken and anti-democratic.”
In the daily charts of AUD/USD, the pair edged up early Monday morning in the Sydney session.
As what we can see in the chart, on Friday last week, the pair broke down the support level at 0.72431 but was able to edge up before the end of the last trading day last week.
On Monday, the pair surged up completely respecting the 0.72431. With the improving economic outlook of Australia and the measures taken to contain the virus, the Aussie dollar is in a positive outlook against the dollar who is battling current rising COVID-19 cases in the states and issues with the COVID-19 vaccines are yet to be resolved.
We may expect the pair to surge up ahead and test the 0.74023 resistance level. However, if the price will breakdown again past the 0.72431 level, we may expect it to head lower and re-test the 0.70098 support level, but given the current outlook, it is less-likely to happen any time soon.
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