The Government recognises the importance of facilitating the temporary free movement of businessmen in order to promote cross-border trade in professional services between the UK and Australia. The Government will set itself the goal of improving opportunities for service providers and investors to operate in Australia and the United Kingdom by improving opportunities for businessmen and supporting mutual recognition of professional qualifications (MRPQ), while maintaining the high professional standards of the United Kingdom. In order to prepare for the opening of possible negotiations, the DIT is implementing a work programme that helps shape the UK`s overall approach to negotiation; to examine the organizational mechanisms and structures needed to facilitate trade negotiations and cooperate effectively with stakeholders in all areas. Respondents` proposals for this consultation and the issues raised will be considered in this work. Eight professional organisations have called for a simplification or a minimum reduction of RoO`s administrative burden. Proposals included self-certification, the use of preferred electronic documentation and certification, reliable business relationships and standard rules between large trading blocs. Others called for greater flexibility in imports into the UK market and pointed to vulnerability to dumping, with some citing a link between roo and dumping practices. One respondent contained the need for a narrow and well-defined roo to avoid circumvention. They proposed changing the tariff position as a preferred approach or, in some cases, for the use of regional content thresholds above 50%. This assessment uses the indirect approach. Based on good practice in the literature, a gravity model is used to provide estimates of the level of NTMs and regulatory restrictions for commercial services in different countries.
Gravity modelling is an economic and economic framework for estimating the determinants of international business models. It is called the “workhorse model of international trade” because it is able to explain coherently the patterns of international trade. [Note 152] The estimation method used here is the result of a method developed by the Centre for Forward-Looking Studies and International Information (CEPII). [Note 153] The macroeconomic analysis in the report uses the government`s CGE model, GETRADE. The model is based on the standard GTAP model and the GTAP-9 dataset (as a base year in 2011) and has been extended to knowledge derived from modern economic trade theory. The GTAP model and dataset is one of the most widely used tools for international business analysis. The following section highlights the main characteristics and assumptions of models for the structure of the model that underlies the model. A full technical description of the model and data set can be included in the technical reference document of the government`s latest publication on the long-term economic analysis of EU withdrawal.
[Note 148] Scenario 1 assesses the impact of significant but not complete liberalization of tariffs by the United Kingdom, combined with a reduction in the volume of NTMS applicable to merchandise trade and regulatory restrictions [note 65] on services trade between the United Kingdom and Australia. Australia should fully liberalize its tariffs. [Note 66] UK goods and services are expected to become relatively competitive in Australia and exports to Australia are expected to increase by 3.6% or 7.4%, depending on the scenarios envisaged. Businesses would be able to increase their trade, as trade costs would be reduced for both imported inputs and exports to Australia, resulting in productivity gains.