Julian Hill (Bruce, Australian Labor Party, Assistant Minister for Citizenship, Customs and Multicultural Affairs) Share this | Hansard source

I move:

That this bill be now read a second time.

The Customs Amendment (Australia-United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Bill 2025 amends the Customs Act 1901 to implement the free trade agreement known as the Comprehensive Economic Partnership Agreement between Australia and the United Arab Emirates.

The agreement will bring commercial and strategic benefits. The UAE is Australia's largest trade and investment partner in the Middle East. In 2024, total trade between the UAE and Australia was worth $12.3 billion. UAE investment into Australia rose to $14.7 billion in 2024, while our investment in the UAE rose to $9 billion, resulting in two-way trade of $23.7 billion.

The agreement will give a competitive advantage to Australian exporters by eliminating tariffs on over 99 per cent of Australian exports, by value, to the UAE.

It is estimated that this will result in tariff savings of up to $135 million on Australian goods exported to the UAE in the first year, rising to $160 million as tariffs are progressively eliminated over five years.

The agreement locks in access to services markets, and provides a framework to facilitate investment to support Australia's energy transition and Future Made in Australia ambitions. It will also improve certainty for exporters and importers, service suppliers and investors across the whole economy.

The agreement will support a strong and diversified economy that will enhance the resilience of Australia's trade and investment to future crises. It will also enhance Australia's economic engagement with the UAE through strengthened trade rules that will help build upon our already healthy trading relationship.

The amendments contained in this bill will establish, in the Customs Act, the rules-of-origin and document-retention requirements called for by the agreement. Those amendments determine when imported goods from the United Arab Emirates in accordance with the agreement may be considered to have originating status, called UAE originating goods, and be eligible for preferential rates of customs duty.

Complementary amendments to the Customs Tariff Act 1995 are also required to provide for these preferential rates of customs duty applicable to UAE originating goods.

The Joint Standing Committee on Treaties—and I acknowledge that you're the chair of that committee, Deputy Speaker Chesters—reviewed both the agreement and related supplementary investment agreement, and recommended they be ratified.

I commend this bill to the chamber.

Debate adjourned.

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