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Australia can’t afford to forget smaller businesses when negotiating trade deals
Politicians often cite the large market value of exports as justification for free trade agreements. But this misses a fundamental point about trade - we benefit most when we focus on exporting the goods and services we are the most efficient at producing, rather than simply increasing the absolute value of our exports. It is a firm’s productivity, not the market value of its exports, that signals success in international trade. In this regard, Australian small and medium-sized businesses have demonstrated considerable longevity and importance. Yet these businesses account for less than 5% of our total exports. ... (full story)