David Littleproud (Maranoa, National Party, Minister for Agriculture, Drought and Emergency Management) Share this | Hansard source

I acknowledge the passionate contribution from the member for Kennedy. We all enjoyed it. But, again, today this is a very important step in agricultural production and an emerging export market that will continue to allow our primary producers to be able to diversify.

The Export Control Legislation Amendment (Certification of Narcotic Exports) Bill 2020 is required to amend parts of the export control legislation. The bill will amend the definition of 'goods' contained within the Export Control Act 1982 and the Export Control Act 2020. The amendments will remove discrepancies between the treatment of narcotic goods and the treatment of other goods that pose a similar risk to Australia's trade reputation and market access. This bill addresses an issue that was originally identified in 2018. In March 2019, more than 12 months ago, we requested that the department investigate solutions to address the gap in official certification. This bill is the culmination of that work.

Markets for industrial hemp in Australia are underdeveloped by comparison to other OECD countries, especially Europe, the UK and Canada. The past 15 years have seen significant global innovation, significant levels of research in agronomy and the development of high-performance hemp products. For example, Canada's export of hemp products grew from Can$10.4 million in 2010 to over Can$90 million in the 10 months to October 2015. AgriFutures has noted the potential for further growth of the industrial hemp market worldwide, stating:

There is a great opportunity for Australian growers to capitalise on growth of current and future products derived from industrial hemp with Global Market Insights predicting the market to surpass US$270 million in size globally, by 2025.

The global medicinal cannabis market size was estimated to be more than US$11 billion in 2017 and is expected to reach an estimated US$44 billion by 2024.

Most countries currently regulate unprocessed and semiprocessed plant products against the introduction of injurious plant pests and diseases. Under the International Plant Protection Convention, exporting countries can issue phytosanitary certificates attesting to the absence of such pests and diseases on exported plant products, which is what this bill seeks to facilitate. Since 2015, in place of the phytosanitary certificates, alternative assurances have been provided for cannabis products exported to markets in Korea, the United States, Uruguay and New Zealand. Earlier this year, an exporter from Queensland sought to export a commercial quantity of seed to the United States. The United States Department of Agriculture, the USDA, indicated they would require formal phytosanitary certification from the Department of Agriculture, Water and the Environment for exports to be accepted. Since late 2019, exporters have expressed interest in exporting to other markets, including Thailand, Vietnam and Canada. These are all markets that require official phytosanitary certification—certification that the passage of this bill will finally allow Australian authorities to issue.

As this industry gains scale, markets will require export certification from the Australian government. The proposed amendments will allow Australian exports to meet the biosecurity import requirements for any market that requires a phytosanitary certificate. Countries that currently have strict import requirements, including phytosanitary certificates for unprocessed plant products, include China, Japan, Thailand, Vietnam, Korea, Canada and the US. In fact, the only major markets that don't have such requirements are Hong Kong and Singapore.

The bill will address the government's current inability to issue phytosanitary certificates and enable certification of a broader range of agricultural commodities, including narcotic goods within the meaning of the Customs Act 1901. The bill will ensure Australia meets its obligations under international agreements and provide assurances to trading partners that our exported agricultural goods meet their requirements. The bill provides the confidence for existing and future exporters to pursue lucrative export opportunities, particularly for those involved with new and emerging industries. Being able to access a broad range of markets creates more export opportunities and higher profits for Australian farmers, producers and export businesses.

The bill will support the initiatives of the government to bust congestion in regulation and ensure that agricultural industries come out firing after the threat of COVID-19 has passed. Without the ability for the government to provide this certification, Australian exporters are at a disadvantage when compared to global competitors. I commend the bill to the House.

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