House debates

Wednesday, 16 September 2009

Customs Amendment (Asean-Australia-New Zealand Free Trade Agreement Implementation) Bill 2009; Customs Tariff Amendment (Asean-Australia-New Zealand Free Trade Agreement Implementation) Bill 2009

Second Reading

11:09 am

Photo of Bernie RipollBernie Ripoll (Oxley, Australian Labor Party) Share this | Hansard source

No, you are right. I would never have done that in opposition. We had much more sense and a bit more free will. I would like to make a couple of comments in terms of the prudential purpose of this agreement. The application of the national interest analysis highlights two reasons for the undertaking of this particular treaty action. The first is to safeguard Australia’s position against the risk of tariff increases in ASEAN countries, as I mentioned before, where there was some uncertainty as to what would happen to a number of exporters in terms of the tariffs that were applied. What this agreement will do is provide that certainty, which is very important. What it does through this agreement is immediately bind the 2005 applied tariff rates for all but a few tariff lines—something I know will be welcome.

The second reason relates to countering economic agreements that are being reached by ASEAN member countries with regional trading powers such as China, Japan, Korea and India. There are a number of issues involved. We heard from the previous speaker in relation to some of the near-zero tariff regimes that are in place for certain other countries and the disadvantages this places on Australian exporters and the impact that that has. I am pretty conscious of that and what it means for Australian horticulture, for our farmers here in Australia. I think there has to be continuing development and negotiation in terms of levelling that playing field so that our good produce, our exporters and our great agricultural and horticultural industries can compete internationally, because we can, on the basis of quality and the products that we have. But obviously it is very difficult for us to compete against unfair free trade agreements. I think it is something that we must continue to work on and deal with.

I also want to mention that this agreement is comprehensive. It is wide ranging and it provides an excellent platform for the future. I also want to take the opportunity to commend the hard work of the Minister for Trade, the Hon. Simon Crean, and his commitment to working towards a positive outcome for Australia in this agreement. The amount of effort he has put in is very commendable. It is often the case that trade ministers are unseen in their work and play a background role but it is a very important role that should be acknowledged appropriately, as I want to do today.

It is essential that we pass the Customs Amendment (ASEAN-Australia-New Zealand Free Trade Agreement Implementation) Bill 2009 and cognate bill through the chamber today. Both the Customs Act 1901 and the Customs Tariff Act 1995 require amendment to see the enactment of the amendments that we have put forward. What the amendments will do is give effect to Australia’s obligations under chapter 3 of the free trade agreement, which provides rules of origin of goods imported to a particular free trade agreement party from another party. The rules are essential for the purpose of determining whether imported goods are eligible for the preferential customs duty rates available under the free trade agreement. The customs amendment bill will provide the rules for determining whether goods originate in an ASEAN member state or in New Zealand. This will allow goods imported into Australia from those countries to claim preferential rates of duty.

It will come as no surprise that Australia stands to gain from this agreement across many sectors, including our exports of agricultural products and industrial goods and services. I want to note that the National Farmers Federation has already recognised what has been achieved in agriculture through this agreement. Australian farmers are now being guaranteed access to developing South-East Asian markets, many of which have a growing appetite for high-quality Australian produce.

I have made two contributions in this place about the global food shortage, or the global food crisis, and will be making further contributions in the future, including a private members’ motion. I acknowledge the member for Franklin, who is also in the chamber and will be supporting and seconding that motion. I think it is one of those little understood or acknowledged problems facing the world’s poorest people, some one billion people, for the first time in history, who have a really critical issue in terms of food shortage and are either malnourished or at the point of starvation. With the global population at six billion people and estimated to reach seven billion within the next 50 years, there is a real disconnect between the top one billion people in the world, who I can fairly say are overfed, with the bottom one billion people in the world, who are dramatically underfed.

There is a really good opportunity for Australia: we produce more food than we need for consumption, and hence we are an exporter of produce. With the right innovation, with the right agricultural policies and frameworks in this country, a combination of the things we are doing out of a number of departments, including foreign aid, trade and what we are doing in the Department of Agriculture, Fisheries and Forestry through Minister Tony Burke, we can make a significant improvement in and impact on the world’s poorest people in terms of their food security. This, in small part, will have some impact on that as well. Globally, this represents a massive opportunity for Australian farmers to contribute to a very, very good cause.

The Rudd government is committed to pursuing a range of most ambitious trade issues. We have a trade agenda which will drive world trade and also boost the Australian economy and create local jobs across sectors, whether they be industrial jobs, jobs in the commercial sector or jobs across the farming sector. That is why our negotiations on breaking down barriers for Australian exports into the region do not stop with this particular free trade agreement. We consider this to be part of a larger plan, a platform for progressively advancing Australia’s interests. I am exceptionally pleased about the intent, the process and what the amendments and this legislation will do, as I am of the agreement, the ASEAN-Australia-New Zealand Free Trade Agreement. I commend the bills to the House.

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