Brendan O'Connor (Gorton, Australian Labor Party, Minister for Home Affairs) Share this | Hansard source

I thank the members for Fisher, Murray, Riverina, Forrest, Makin, Maranoa, Canberra and Stirling for their contributions to the debate on the Customs Amendment (New Zealand Rules of Origin) Bill 2011. I need to respond in some respects to the contributions made by members in relation to the import of apples from New Zealand. The Australian apple industry supports many regional communities and the Gillard government supports Australian apple growers and will always encourage Australians to buy Australian grown produce.

It is unfortunate that the PM's comments to the New Zealand parliament have been misquoted by those opposite. The Prime Minister said:

… Australia accepts the verdict of the global umpire and will implement the World Trade Organisation ruling on the importation of New Zealand apples into Australia. We accept the obligations of free trade, just as we embrace the possibilities of free trade.

This means that the government accepts the WTO rulings and has commenced a science based review of the import policy relating to New Zealand apples, in accordance with the WTO decision. That review is undertaken by Biosecurity Australia, oversighted by the Minister for Agriculture, Fisheries and Forestry, Senator Ludwig. A draft of the review has been made available for public comment and submissions received on the science contained in the review. Apples will not be imported into Australia from New Zealand until Australia's quarantine officials are satisfied that they can be imported whilst meeting Australia's very high quarantine standards.

I would also like to respond quickly to the matter that the member for Forrest raised about the operation of the amendments and whether they relax the rules of origin. I can assure the member for Forrest and this House that the changes implemented by this bill do not relax the rules of origin. The changes facilitate trade by providing importers and exporters of both countries with greater clarity and certainty about the rules of origin.

The Customs Amendment (New Zealand Rules of Origin) Bill 2011 implements changes to article 3 of the Australia-New Zealand Closer Economic Relations Trade Agreement, ANZCERTA. The ANZCERTA is Australia’s longest standing bilateral free trade agreement, having been in force since 1983. Article 3 of ANZCERTA deals with rules of origin, which determine the eligib­ility of goods for preferential tariff treatment under the agreement. Such rules prevent the benefits of trade agreement tariff commit­ments extending to goods produced or manufactured in countries other than those who are party to the agreement. The current ANZCERTA rules of origin entered into force on 1 January 2007. In negotiating these rules both countries agreed to include in ANZCERTA a provision requiring the review of rules of origin within three years of the new rules taking effect. Australian and New Zealand officials commenced the review in late 2008 and completed it in March 2010, resulting in agreement to make amendments to the text of ANZCERTA article 3, rules of origin, and the related product specific rules in annex G.

The changes to ANZCERTA will reduce the administrative burden on business and will facilitate the eligibility for duty-free entry of goods into both markets. The amendments will also provide greater consistency between the rules of origin in ANZCERTA and those in other free trade agreements entered into by Australia. This bill is the legislative vehicle for domestic implementation of the ANZCERTA article 3 changes.

Question agreed to.

Bill read a second time.

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