Dave Sharma (Wentworth, Liberal Party) Share this | Hansard source

On behalf of the Joint Standing Committee on Treaties, I present the committee's report, incorporating dissenting reports, entitled Report 186: IA-CEPA and A-HKFTA.

Report made a parliamentary paper in accordance with standing order 39(e).

by leave—Report 186 of the Joint Standing Committee on Treaties covers the committee's review of two separate trade agreements: the comprehensive economic partnership agreement between the government of Australia and the government of Indonesia, also known as IA-CEPA, and the free trade agreement between Australia and Hong Kong and the investment agreement between the government of Australia and the government of the Hong Kong special administrative region.

At this time of growing global economic uncertainty and mounting trade tensions, countries like Australia need to stand up for the principle of free trade and shore up the foundations of the global trading system. Australia has been a huge beneficiary from the liberalisation of the global economy. The ability to trade freely around the world on the basis of transparent and predictable rules has delivered us improved living standards, better jobs, higher wages and greater choice. This is why it is important for Australia to stand up for the global trading system and play our part to maintain and improve its liberal and open character. It's especially important given that one in five Australian jobs is linked to trade.

The agreement with Indonesia has the potential to transform our economic relationship and lift it to a level that better reflects the strategic importance of our two countries to one another. Australian grain and citrus growers, cattle producers, mining equipment providers and vocational education suppliers all stand to benefit from the improved access to the Indonesian market which the agreement provides.

But beyond this, and as the name implies, the Indonesia-Australia Comprehensive Economic Partnership Agreement goes on to lay the foundations for a comprehensive economic partnership with our largest northern neighbour. It will support Indonesia's own economic growth by supporting Indonesian capacity in key areas and position Australia as a partner of choice. It will improve the business and investment environment. It will provide a vehicle to tackle emerging issues in trade such as non-tariff barriers, the digital economy, connectivity, competition policy and regulatory transparency. Indonesia is one of Australia's highest priority relationships, and this agreement will help grow our ties in a part of the relationship that has been historically underdone. This is why the Joint Standing Committee on Treaties has recommended that we take action to implement the agreement as soon as possible.

Our economic and trading relationship with Hong Kong, one of Asia's largest and most open economies, is already well established. The Australia-Hong Kong Free Trade Agreement largely codifies existing trade and market access arrangements, providing certainty into the future. It also modernises the treatment regime for foreign investors, making investor-state dispute settlement mechanisms more transparent and more constrained and improving safeguards for governments wishing to adopt legitimate public policy measures in areas such as tobacco control.

It would not be realistic to consider the agreement in isolation from the political protests that have been underway in Hong Kong for several months. In considering this agreement, the committee heard from witnesses about the ongoing civil disturbances and political instability in Hong Kong. The committee supports a peaceful resolution of these issues within the 'one country, two systems' framework and Hong Kong's own institutions. We also recognise that the preservation of Hong Kong's unique status under the basic law, under which it enjoys a high measure of autonomy, is in Australia's national interests, and we view ratification of the agreement, negotiated as it was with Hong Kong's own government, as a means of supporting this unique status. Whilst the committee recommends that we take steps to implement the free trade agreement, the timing of the agreement's entry into force, once necessary legislative amendments and regulations are passed, will necessarily take into account the political situation in Hong Kong at that time, as it should.

On behalf of the committee, I commend the report to the House.

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