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

in reply—I would like to firstly thank all of those members who have contributed to this important debate. The Customs Amendment (ASEAN-Australia-New Zealand Free Trade Agreement Implementation) Bill 2009 amends the Customs Act 1901. The Customs Tariff Amendment (ASEAN-Australia-New Zealand Free Trade Agreement Implementation) Bill 2009 amends the Customs Tariff Act 1995. The amendments are the result of the agreement establishing the ASEAN-Australia-New Zealand Free Trade Area that was signed on 27 February 2009. These amendments will commence on the day that the agreement enters into force for Australia, New Zealand and at least four ASEAN member states. At present, all parties are progressing domestic arrangements necessary for the agreement to enter into force. The date for the entry into force is expected to be 1 January next year. The amendments to the Customs Act 1901 provide the rules for determining whether goods originate in an ASEAN member state or in New Zealand. The amendments to the Customs Tariff Act 1995 will provide the rates of duty for ASEAN member states and New Zealand.

I note that some members have raised issues relating to the horticultural industry—for example, mandarines. The government agrees that it was disappointing that we could not achieve a better outcome with Indonesia in relation to mandarines. However, importantly, from 1 January 2010, 81 per cent of Indonesia’s horticultural tariff lines will have tariff-free treatment, compared to six per cent now.

The National Horticultural Market Access Coordinator, Stephen Winter, said to the Joint Standing Committee on Treaties in May this year:

It has been spoken about in glowing terms by various parties, including the government. We agree that it is vitally important because ASEAN as whole is a major trading partner and neighbour to us. A lot of effort has gone into the AANZFTA.

The agreement will reduce or eliminate tariffs across a region that is home to 600 million people and a region with a combined GDP of $3.2 trillion. This means greater job opportunities here in Australia. I commend these bills to House.

Question agreed to.

Bill read a second time.

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