Someone would need to do a large GE model of the Australian economy in order to answer that question – without an appropriate counter-factual I can’t really say anything 🙂

Australia has a free trade agreement with America. Where are the benefits to Australians?

Indeed, so if our industries became dependent on US trade we would be vulnerable to a sudden shock from there economy. On thing to remember here is that this isn’t an issue of free trade – it is an issue of a lack of free trade, and US protectionism.

Even so, NZ isn’t likely to be in a position where is becomes overtly dependent on trade to the US for industries. I believe we have sufficiently diversified our markets to protect ourselves from the problems we had when Britain entered the EEC.

Ultimately, the purpose of this post was to criticise the idea that only exporters benefit from free trade. I still respect the idea that there are costs associated with opening up borders with another country, and these have to be taken into account

Hickey goes against the grain, and it is hard to disagree with the idea that US trade is corrupted by vested interests.