Shadow Minister for Trade, Tourism and Investment Kevin Hogan has called on Labor to get on with the job and ratify our trade agreements with India and the UK.
The comments come as the 30 November deadline looms for the completion of Australia’s domestic treaty processes to ensure the agreements can enter into force by the end of 2022.
“The Coalition is ready to ensure it can be done this year,” Mr Hogan said.
“Both the Australia – United Kingdom Free Trade Agreement (A-UKFTA) and the Australia – India Economic Cooperation and Trade Agreement (A-IECTA) will deliver significant benefits for Australia by opening up access to very large consumer and highly complementary markets for Australian goods and services.”
“Australian businesses are ready and waiting to harvest the benefits of the deal as so as the agreements enter into force.”
“While both agreements provide for elimination of tariffs on many items on entry into force, some agricultural, resources and pharmaceutical products see tariff and quota improvements over 3-10 years.”
“For these products there is an extra immediate benefit of ratification this year as entry into force and year 1 improved market access provisions can take effect on 1 January 2023.”
“Should the Government fail to complete the process this year, these sectors will have to wait another 12 months, missing out on a windfall opportunity.”
Mr Hogan said that the Coalition in Government did the heavy lifting to negotiate the agreements with the UK and India and now it is up to the Labor Government to complete the final formal steps as a matter of priority.
“Australia has a formal treaty making process that requires consideration of trade agreements by the Joint Standing Committee on Treaties and then passage of any domestic legislation necessary to implement an agreement,” Mr Hogan said.
“Once this is complete, Australia can exchange diplomatic notes with the UK and India advising of the completion of our domestic processes. Both agreements require 30 days between this event and the agreements coming into force.”
“In the case of both the A-UKFTA and A-IECTA, JSCOT will report on the 16th and 18th November respectively. This timeline leaves little to chance for the passage of legislation by the 30th November, even if the legislation is supported by the government and opposition.”
“Required legislative amendments include changes to the Customs Tariff Act 1995 to incorporate the preferential tariff rates that will apply to goods imported from the UK and India. In addition, the Customs Act 1901 must be amended to establish rules for determining the originating status of goods imported from the UK and India for the purpose of determining eligibility for preferential tariff treatment.”
“The Government introduced amendments on the last sitting day in September to the International Tax Agreements Act 1953 to implement an A-IECTA side letter agreement, despite the fact that the Joint Standing Committee on Treaties is yet to report.”
“I therefore see no reason why the remaining customs legislation could not be introduced in the upcoming budget sitting week with debate scheduled in the week of 21 November. This would be a show of good faith.”
“The Coalition backs these agreements 100% and we will do whatever is needed, including sitting extended hours, to ensure passage through both Houses of Parliament as quickly as possible.”
“We now need the Government to get on with its job.”
