Scott Morrison (Cook, Liberal Party, Minister for Immigration and Border Protection) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Customs Amendment (Korea-Australia Free Trade Agreement Implementation) Bill 2014 amends the Customs Act 1901 to implement Australia's obligations under chapter 3 of the Korea-Australia Free Trade Agreement.

Chapter 3 sets out the rules of origin criteria and related documentary requirements for determining the eligibility of goods to obtain preferential tariff entry into Australia under the agreement.

The complementary Customs Tariff Amendment (Korea-Australia Free Trade Agreement Implementation) Bill 2014, will amend the Customs Tariff Act 1995 to set out Australia's tariff commitments under the Agreement.

The agreement was signed by the Minister for Trade and Investment, the Hon. Andrew Robb AO MP and his South Korean counterpart, the Minister for Trade, Industry and Energy, Mr Yoon Sang-jick, on 8 April 2014 in Seoul, South Korea. I commend the minister for trade and my colleague for the outstanding work that he has done in bringing this agreement to completion. The governments of Australia and Korea have agreed to aim for the agreement to enter into force in 2014.

The Korea-Australia Free Trade Agreement is a comprehensive agreement that substantially liberalises trade with South Korea and creates significant new commercial opportunities for Australian businesses. South Korea is Australia's fourth largest trading partner and the implementation of this agreement will significantly boost Australia's position in this major market where competitors like the United States, European Union and the Association of Southeast Asian Nations are already benefitting from preferential access. Goods liberalisation alone is estimated to be worth nearly $5 billion in additional GDP to Australia between 2015 and 2030.

On entry into force, 84 per cent of Australia's exports (by value) to South Korea will enter duty free, rising to 99.8 per cent on full implementation of the agreement. There will also be significant new market openings in services and investment.

The agreement contains simplified and trade facilitative rules of origin and related documentary requirements. Goods imported into Australia that meet the rules of origin, implemented through this bill, will be entitled to claim preferential tariff treatment in accordance with the agreement.

The amendments include relevant obligations on Australian exporters and producers who wish to export Australian goods to South Korea under the agreement and obtain preferential treatment for those goods in South Korea. The amendments also confer certain powers on authorised officers to examine records and ask questions of exporters or producers of goods exported to Korea in order to verify the origin of such goods.

The agreement reflects Australia's close bilateral economic relationship with South Korea. I commend the bill to the House.

Debate adjourned.