What are the disadvantages of Closer Economic Relations FTA between Australia and NZ?

1. Increased competition for local businesses:

The elimination of tariffs and other trade barriers under CER has increased competition for local businesses in both Australia and New Zealand. This has been particularly challenging for small and medium-sized enterprises (SMEs), which may not have the resources to compete with larger multinational companies.

2. Loss of jobs:

CER has also led to the loss of jobs in some industries in both countries. For example, the Australian textile and clothing industry has been hit hard by competition from cheaper imports from New Zealand. This has resulted in the loss of thousands of jobs in the industry.

3. Decline in manufacturing:

CER has also contributed to the decline of manufacturing in both Australia and New Zealand. This is due to the fact that CER has made it more economical for businesses to import manufactured goods from other countries, rather than produce them domestically. This has led to the loss of jobs and skills in the manufacturing sector.

4. Environmental concerns:

CER has also raised concerns about environmental standards. Some critics argue that CER has made it easier for companies to relocate to countries with lower environmental standards, in order to avoid the costs of compliance. This could lead to a race to the bottom, where countries compete to offer the lowest environmental standards in order to attract investment.

5. Social and cultural impacts:

CER has also had social and cultural impacts on both Australia and New Zealand. Some people argue that CER has led to a loss of cultural identity, as local customs and traditions have been replaced by more homogenised global values. Others argue that CER has had a positive impact on society, by promoting greater cooperation and understanding between Australia and New Zealand.

Overall, the Closer Economic Relations FTA between Australia and New Zealand has had both positive and negative impacts on the two countries. It is important to weigh the benefits of closer economic ties against the potential costs in order to make informed decisions about future trade policies.