Trade Policy Reviews are an exercise, mandated in the WTO agreements, in which member countries’ trade and related policies are examined and evaluated at regular intervals. 

A review of the trade policies and practices of Australia took place on 12 and 14 March 2025. The basis for the review was a report by the World Trade Organisation (WTO) Secretariat and a report by the Government of Australia. 

In sum, the review found that Australia's trade remained strong and its economic recovery from the COVID-19 pandemic was aided by strong commodity prices for some of its key exports. Australia remained a key supporter of the multilateral trading system with engagement in all major areas of WTO work.  Key challenges remain in respect of productivity, promoting foreign investment while implementing reforms and encouraging industrial production through various policy measures. 

Key findings

• Australia maintained an open and diverse economy, despite being severely impacted by the COVID-19 pandemic. The post-pandemic recovery was quicker than many other economies in part due to prompt policy responses and high international commodity prices.
• The increase in commodity prices contributed to high inflation which reached a 30-year peak of 7.8% in 2022. Rising prices also resulted in a tightening of monetary policy.
• Australia was quick to adapt its trade and related policies over the period to alleviate the impact of the COVID-19 pandemic and adjust to other trade realities around the world.
• Opening new markets through regional trade agreements remained a key trade policy objective for Australia over the period.
• Australia's trade policy developments were often driven or influenced by other government policies during the period, in particular the commitment to address climate change.
• The Australian energy sector remains a significant producer of fossil fuels, including for export, but there were several commitments towards increasing renewables during the review period, in particular through the Renewable Energy Target.
• Australia made changes to its foreign direct investment regime that resulted in the most significant reforms in over 50 years.
• A declining productivity growth rate has been an issue across several sectors of the Australian economy.
• On imports, a significant development was the autonomous elimination in tariffs across several product categories, but most notably on white goods.
• Australia remained heavily reliant on imported manufacturing goods over the period.