Policy & Engagement
In recent years we have seen unprecedented debate concerning the legitimacy of trade agreements, widespread concern about the potential effects of globalisation and a dangerous resurgence of protectionism which has the potential to profoundly impact economic development and trade arrangements throughout the world.
Today, more than ever, universities have a critical role to play in supporting the pursuit of effective, transparent and responsible trade policy which is both responsive to economic challenges and enables countries to capitalise on the opportunities presented by the global economy.
The Institute for International Trade works closely with our partners to develop and maintain a deep dialogue with government, business, civil society and the wider public.
Analysis and IIT news
The EU Corporate Sustainability Due-Diligence Directive and China-EU Trade: Environmental Implications for the Chinese Electric-Vehicle Sector
WORKING PAPER 22 - This working paper analyses how the EU Corporate Sustainability Due-Diligence Directive (CSDDD) will reshape China–EU trade, using the Chinese electric-vehicle (EV) industry as a sectoral lens. By translating voluntary ESG norms into hard-law obligations, the CSDDD extends stringent environmental standards along global value chains and aims to “level the playing field” for firms accessing the EU Single Market. The study traces the Directive’s legal evolution, compares it with China’s ESG framework, and models compliance scenarios for Chinese EV exporters. Findings indicate that while the Directive raises due-diligence and reporting costs—especially for complex battery supply chains—it also offers first-mover advantages to firms that align quickly with EU benchmarks. Competitive outcomes will depend on supply-chain transparency, technology upgrading, and the degree of regulatory convergence between Brussels and Beijing.
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Countertrade in Modern Geoeconomics: A Study of Indonesia and the Eurasian Economic Union
WORKING PAPER 21: This working paper examines the resurgence of countertrade—an exchange of goods and services without immediate monetary payment—as a strategic economic mechanism within modern geoeconomic contexts, specifically focusing on Indonesia and the Eurasian Economic Union (EAEU). Historically prominent during periods of economic isolation or liquidity constraints, countertrade is now re-emerging amid rising geopolitical tensions and financial uncertainties, serving as a tool for economic resilience and strategic autonomy. The paper investigates Indonesia’s past experiences with countertrade, primarily in defense procurement, and evaluates scenarios for potential future engagement under a proposed Indonesia-EAEU Free Trade Agreement. Using theoretical firm-level analysis, it distinguishes how different Indonesian firm categories—super-large conglomerates, large enterprises, and small and medium-sized enterprises (SMEs)—could benefit from or face challenges in adopting countertrade. Findings suggest that, despite theoretical benefits like reduced currency risk and strategic resource access, practical implementation is complex and cost-intensive, making it most suitable for larger, resource-rich firms capable of navigating these complexities.
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Implications of the EUDR on global palm oil supply chains
WORKING PAPER 18: From December 2024, the European Union Deforestation Regulation (EUDR) will require palm oil to come from sources not linked to deforestation. This creates challenges for suppliers, especially small ones, due to strict tracking and compliance rules. Countries like Indonesia and Malaysia are concerned about these challenges. However, aligning with certification schemes like Malaysia's MSPO may help gain EU approval. The EUDR also classifies countries by deforestation risk, making it easier for low-risk nations to comply. For a smooth shift to deforestation-free trade, it's important to extend timelines, support small suppliers, and use local initiatives.
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The Impact of Due Diligence Legislation on International Trade and Business: An Analysis of Potential Trade-Offs
WORKING PAPER 17: As countries increasingly adopt due diligence legislation to promote human rights, labor standards, and environmental sustainability in global value chains, a complex dilemma arises. While these laws commendably aim to address moral and political issues in international trade, they may also impose significant costs on companies, potentially disincentivizing investment and trade. This study examines the impact of due diligence laws on international trade and business, analyzing some 60 cases.
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Mapping networks of export credit for fossil and clean energy infrastructure
WORKING PAPER 16: Official Export Credit Agencies (ECAs) are pivotal in the global energy sector, investing billions annually in fossil fuel projects. They could significantly boost the energy transition by reducing risks in large projects and supporting climate finance goals. Our working paper analyzes ECA financing in Asia-Pacific, highlighting integrated fossil fuel lending across diverse nations without clear geopolitical divides, unlike the fragmented clean energy network dominated by a "China vs. the rest" pattern. To enhance ECAs' climate contributions, the study suggests ending fossil fuel financing, easing clean energy project requirements, increasing renewable energy funding, and expanding ECAs' roles via blended finance. The IEA stresses ECAs are crucial for achieving net zero by 2050.
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A Survey of Australians’ Attitudes to Trade with the European Union
The re-election of EU Commission President Ursula Von der Leyen offers the prospect for restarting trade talks between Australia and the EU. Therefore, we are pleased to announce the results of our recently commissioned survey of Australians’ attitudes towards the European Union, and the delayed free trade agreement in particular. Overall, Australians strongly support the EU and the FTA. These results, and many other interesting findings that reinforce Australia’s growing partnership with the EU, are available here. Click "read more" to read the full report and results.
Read more about A Survey of Australians’ Attitudes to Trade with the European Union28 Jun
Book Launch: Export Restrictions and Export Controls, with focus on the US-China Semiconductor War.
The Institute for International Trade invites you to a book launch "Export Restriction & Export Controls, with focus on the US-China Semiconductor War". Thursday 4 July, 2024 at 12:1pm. Guest speaker and author, Associate Professor Umair Hafeez Ghori, Faculty of Law, Bond University. Moderator: Professor Peter Draper, Executive Director, Institute for International Trade. 27 May
International Trade and Sustainable Development: The Future of Climate and Biodiversity Governance
POLICY BRIEF No.26 - Dr. Tracey Dodd, Prof. Johanna Kujala, Dr. Riikka Tapaninaho, Dr. Annika Blomberg, Dr. Anna Hannula, Heta Leinonen, and Filippe Delarissa Barros. History shows that existing approaches to international treaties, like the Paris Agreement, have not yet delivered adequate action to avoid catastrophic climate change by the turn of the century. A new approach to climate and biodiversity governance is therefore needed. Specifically, one that can consider tensions brewing across the principles of national interests and trade liberalism, and the critical issue of sustainable development that can ensure global economic stability and continued productive trade between nations. 22 May WORKING PAPER 15: Cross-border digital transmissions are crucial components of the global trading system. Currently, WTO members do not impose custom duties on inward flows, in-keeping with the WTO’s temporary moratorium. However, it is likely this moratorium will expire, and key members may move to impose taxes in the future. As our latest Working Paper attests, in Indonesia’s case this would amount to significant self-harm. 22 Apr
Carbon Border Tax: How the CBAM could hold great potential for Australian Business
WORKING PAPER 14: Soon the Australian government’s Carbon Leakage review will recommend whether the country should adopt a border carbon tax, or not. In our latest Working Paper Dr Susan Stone sets out her reasoning for why we should. 14 Mar
Trade Policy Decoded - Episode 11: MC13 and the Future of Rules Based Trade
In Episode 11 of Trade Policy Decoded, Pru and Peter discuss the outcomes of the 13th Ministerial Conference (MC13) of the World Trade Organisation held in Abu Dhabi from 26 Feb to 1 March 2024. The podcast delves into the reasons for the few positive outcomes and the increasing challenges to the multilateral system. This includes the possibility of the US withdrawing from the WTO under a potential second Trump Administration. Will plurilaterals save the day? 07 Mar
Beyond China: Why Australia must look to Southeast Asia for trade and investment
At the recently concluded Melbourne Summit Australia cemented its ties with ASEAN economies and announced a series of measures to support our businesses to grow their Southeast Asia footprints. In this incisive opinion Dr Nathan Gray makes the case for greater Australian economic engagement with the Southeast Asian region, and reflects on the government’s recent Southeast Asia 2040 Strategy.
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