Julian Hill (Bruce, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Customs Tariff Amendment (Comprehensive and Progressive Agreement for Trans-Pacific Partnership Expansion) Bill 2024 amends the Customs Tariff Act 1995 to allow the compressive and progressive agreement for the Trans-Pacific Partnership—which I'll refer to as the agreement—to enter into force between Australia and the United Kingdom.

The agreement is one of the world's most comprehensive and ambitious trade agreements, eliminating 98 per cent of tariffs in a trade zone, which, including the United Kingdom, represents a combined GDP of US$14.6 trillion and a population of some 580 million people. Its membership currently comprises Australia, Brunei, Canada, Chile, Japan, Mexico, Malaysia, New Zealand, Peru, Singapore and Vietnam. The agreement is open to accession by any state or separate customs territory that is committed to its high standards, rules and objectives. Since its entry into force, seven economies have formally applied for membership. Any economy seeking to accede must meet the high standards of the agreement, have a demonstrated track record of complying with international trade agreements and gain consensus support from the membership.

United Kingdom was the first candidate to be considered beyond the initial 11 members. Formal negotiations commenced in June 2021 and culminated in the signing of the protocol on the accession of the United Kingdom of Great Britain and Northern Ireland to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership—or, more simply, the protocol—in July 2023. The protocol provides specific provisions for the United Kingdom that, once it becomes a member, will be incorporated into the agreement.

I'm pleased to say that the date on which the United Kingdom becomes a member is 15 December 2024, and the protocol will enter into force on that date between the United Kingdom and agreement members which have completed the relevant domestic process. The timely passage of this bill will enable Australian business to be among the first to benefit from the United Kingdom's accession to the agreement. If Australia is able to ratify before 15 December, the protocol will also enter into force in Australia on this date.

As a close and trusted partner, the United Kingdom's formal membership of the agreement is welcomed by the Australian government. This marks a significant milestone for the agreement and will deepen the United Kingdom's engagement in the region. Expanding membership of the agreement creates an even larger common trade area with greater influence over trade rules and standards. The agreement's commonly agreed rules and high standards will facilitate the United Kingdom's integration into, and contribution to, resilient and prosperous regional trade.

Compared to the strong market access outcomes contained in Australia's bilateral free trade agreement with the United Kingdom, the direct economic gains to Australia flowing from the United Kingdom's accession to the agreement will be modest. These include minor improvements for Australian service providers. That said, the United Kingdom's accession to the agreement brings significant supply chain benefits to Australia. This means that Australian manufacturers will be able to use United Kingdom made components in production processes and export the final goods to other agreement members at preferential tariff rates. This will give Australian manufacturers greater choice in their manufacturing processes and export opportunities.

The amendments contained in the bill are necessary to finalise Australia's ratification of the protocol. The bill will insert into the Customs Tariff Act 1995 preferential customs duty rates that only apply to originating goods of the United Kingdom, a method for identifying such goods and, importantly, provisions to restore general rates of duty for certain goods when the United Kingdom has in place a safeguard provision applying to equivalent Australian goods.

The Joint Standing Committee on Treaties has considered the protocol in detail and has recommended that binding treaty action be taken. I thank the committee for expediting the tabling of its report. This has enabled the bill to be considered and, I hope, passed in this sitting period, as swift passage of this bill will enable the protocol to enter into force sooner and unlock its benefits for the Australian economy. I commend the bill to the House.

Debate adjourned.