This year's G20: getting the fundamentals right

People trade with each other because it's in their interest to do so.

Every time one person freely trades with another, wealth increases.

Just as trade within countries increases wealth, trade between countries increases wealth – that's why we should all be missionaries for freer trade.

At the very least, the G20 should renew its commitment against protectionism and in favour of freer markets.

Each country should renew its resolve to undo any protectionist measures put in place since the Crisis.

Better still, each country should commit to open up trade through unilateral, bi-lateral, plurilateral and multi-lateral actions and through domestic reforms to help businesses engage more fully in global commerce.

As a trading nation, Australia will make the most of its G20 presidency to promote free trade.

Over time, everyone benefits because, in a global economy, countries end up focussing on what they do best.

A more global economy with stronger cross-border investment eventually helps everyone because it generates more wealth and ultimately creates more jobs.

Of course, money's tendency to flow to where taxes are lowest is a powerful incentive for all countries to keep taxes down.

One of the side effects of globalisation is more ability to take advantage of different country's tax regimes.

Different national tax arrangements have not always kept up with the rise of services and the pervasiveness of digital technologies.