Tania Lawrence (Hasluck, Australian Labor Party) Share this | Hansard source

I rise to speak on the Customs Tariff Amendment (Comprehensive and Progressive Agreement for Trans-Pacific Partnership Expansion) Bill 2024. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership—let's just call it 'the agreement'—eliminates 98 per cent of tariffs in the trans-Pacific zone. That materially affects the lives of about 580 million people, and now, on 15 December 2024, the United Kingdom will become a member of this partnership.

The agreement first came into force on 30 December 2018. Getting countries to agree on the broader issues of trade is, of course, immensely important to us all. Trade is, after all, what makes the world go round, and the world is a complicated place where people have different interests and perspectives and their interests, perspectives and leaderships change, sometimes very rapidly and in unexpected directions. Successful trade between nations depends on a long-term perspective and quick wits. In fact, that's true of all kinds of trade. Trading partners need to find ways to agree so that they can derive mutual benefits.

In July 2023 the United Kingdom signed an ascension protocol. The UK had applied for membership in 2021 after its withdrawal from the EU in 2020. It had already begun exploring membership in 2018, holding informal discussions. These discussions raised important points, problems and possibilities. At the time, the UK already exported almost 98 billion pounds worth of goods to the agreement member countries. It was already economically involved with them. This bill amends the Customs Tariff Act 1995 to allow the Comprehensive and Progressive Agreement for Trans-Pacific Partnership to enter into force between Australia and the United Kingdom.

With the timely passage of this bill, we will be able to ratify the protocol to ensure that businesses and consumers can immediately benefit from the UK's ascension. With the inclusion of the UK, the agreement will have that material effect on the supply chain across countries as diverse as Brunei, Canada, Chile, Mexico, Malaysia, Peru, Singapore and Vietnam, as well as, of course, Australia and New Zealand. It is a group of nations who have chosen to agree on important matters that affect them all. Together, we carry significant global economic weight, with more than half a billion people and a combined GDP of US$14.6 trillion.

Any state or separate customs territory can actually join us, provided it commits itself to agreement with our collective standards, rules and objectives, and they are impressive. The agreement speaks of creating new opportunities for workers and businesses and contributing to raising living standards. It speaks of reducing poverty and promoting sustainable growth, and it recognises differences in levels of development and diversity of economies. It means what it says and doesn't shy away from the sensitive subjects or possible areas of disagreement. It specifically affirms, for instance, that state owned enterprise can play a legitimate role in the diverse economies, but it adds that fair and open trade and investment should not be undermined by the provision of unfair advantages to them. There is no attempt to impose a one-size-fits-all model. The agreement supports the growth and development of micro, small and medium-sized businesses. Healthy economies not only have a space for them all; they are responsive to the possibilities of innovation such businesses present.

The agreement also promotes high levels of environmental protection and declares its support for the protection and enforcement of labour rights and the improvement of working conditions. It promotes transparency, good governance and the rule of law. One of the first requirements and duties of good governance is the elimination of bribery and corruption in trade and investment. Where trade and investment are rigged, economies stand on unsound foundations. Good governance does not mean the enforcement of one set of cultural conceptions over another.

The agreement states that trade and investment can expand opportunities to enrich cultural identity and diversity at home and abroad. We can share fundamental principles of essential values and the ideas of human rights without expressing them in exactly the same way. The rule of law does not stand in opposition to diversity. It can and should protect it.

The agreement has an objective of contributing to the harmonious development and expansion of world trade. It sees that as a means of providing a catalyst to broader regional and international cooperation, and I believe that's true. If we develop and expand world trade harmoniously we are on the way to understanding how to live together with all our differences. And if we can live together we can cooperate in facing the problems we share.

A little over 50 years ago the Whitlam government helped open up the Australian economy to the world. In its 1973 budget, that government implemented a 25 per cent cut in tariffs across the board. All subsequent Australian governments have benefited from the insights of that government and the decisiveness of that leader. Their eyes were set firmly on a better future for Australia—and so are ours.

The framers of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership also believed in addressing the future. They spoke of addressing future trade and investment challenges and opportunities and expanding their partnership by encouraging the ascension of other states or separate customs territories in order to further enhance regional economic integration. Prospective members are advised they must have a track record of complying with international trade agreements and they need the consensus support of the existing membership.

The UK will indeed become a member on 15 December this year. Passing this bill expeditiously will give Australian business the opportunity to be among the first to benefit from its inclusion. We already have a bilateral free trade agreement with the UK, and that agreement brings us strong and positive market outcomes. To this, we will be adding significant supply chain benefits. Australian manufacturers will be able to use components made in the UK in their production processes and then export the finished goods to other agreement members at preferential tariff rates. There is a great range of choice for Australian manufacturing in its production processes and greater opportunities for export. Greater ranges of choice and greater opportunities are fundamental to national wellbeing and to sustainable futures.

The Albanese Labor government wants greater ranges of choice and greater opportunities for Australians of all ages, from early childhood to the oldest of all our people. We want it regardless of career paths and choices and people's individual gifts and talents. We want it regardless of location. One part of Australia should not be privileged over another. We want it for all Australians whether they are born here or choose to make Australia their home. Smart, intelligent trade relationships are fundamental to the future for all of us.

The amendments in this bill are needed to finalise Australia's ratification of the protocol on the ascension of the United Kingdom of Great Britain and Northern Ireland to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The bill will insert preferential customs duty rates into the Customs Tariff Act 1995. Those rates will only apply to originating goods from the UK. The bill will also insert a method for identifying such goods and provisions to restore general rates of duty for certain goods when and if the UK has in place a safeguard provision applying to equivalent Australian goods. In other words, we're ensuring that this is a mature agreement between independent nations which respects each other's positions and interests. It's smart, it's intelligent and it works for us all. I commend the bill to this House.

See this speech in context