Julian Hill (Bruce, Australian Labor Party, Assistant Minister for Citizenship and Multicultural Affairs) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The Customs Amendment (ASEAN-Australia-New Zealand Free Trade Area Second Protocol Implementation and Other Measures) Bill 2024 (the bill) makes trade under the existing Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (the agreement) simpler. The amendments in this bill will establish improved rules-of-origin requirements to make it easier and less costly for businesses to access this free trade agreement's benefits.

Even 14 years after its initial entry into force in 2010, this agreement retains its status as one of Australia's highest quality outcomes in market access for goods trade, having eliminated tariffs on 96 per cent of Australian exports to South-East Asian markets.

On 21 August 2023 the Assistant Minister for Foreign Affairs, the Hon. Tim Watts MP, signed the second protocol to amend the agreement in Semarang, Indonesia alongside ministers from the ASEAN member states and New Zealand.

The second protocol modernises the agreement to ensure it keeps pace with Australia's evolving trade policy interests in areas such as electronic commerce, trade and sustainable development, and supporting small businesses. It maintains its status as ASEAN's highest quality free trade agreement, while underscoring the importance of ASEAN to the region's prosperity, stability and security.

While this bill makes necessary improvements to the Customs Act 1901to incorporate amendments madeto the agreement's rules of origin, the second protocol includes additional commitments on services and investment that will benefit Australian traders and investors. It also includes measures that will strengthen supply chain resilience and digital technology adoption.

New commitments on sustainable and inclusive trade will facilitate enhanced cooperation on environmental protection, green economy, labour issues, and women's economic empowerment.

The Joint Standing Committee on Treaties completed an inquiry into the agreement in May 2024 and recommended that binding treaty action be taken. The amendments made by the second protocol will enter into force 60 days after Australia, New Zealand and at least four ASEAN member states have notified completion of their domestic processes.

Entry into force of the agreement as soon as possible is desirable so that traders can benefit from the improvements made under the second protocol, and so that Australia can celebrate an important milestone in our partnership with ASEAN to support our businesses and expand regional economic integration.

The second protocol will establish new accumulation rules to give traders more flexibility in sourcing from across the region and to strengthen critical global and domestic supply chains. In addition, a standalone consignment provision will support transhipment and offer clearer and broader scope for goods to retain their originating status when transiting through countries outside the free trade agreement region. These rules will support modern and increasingly prevalent hubbing practices.

The second protocol will reduce the regulatory burden faced by Australian exporters through the introduction of an opt-in approved exporters scheme. Qualifying exporters will be able to complete their own declarations of origin, reducing costs and streamlining processes that enable their trading partners to claim preferential rates of customs duties.

The second protocol also maintains existing certificates of origin arrangements familiar to Australian businesses trading with ASEAN.

The amendments in schedule 1 to the bill will commence on the later of the day the Customs Amendment (ASEAN-Australia-New Zealand Free Trade Area Second Protocol Implementation and Other Measures) Bill 2024 receives the royal assent and the day the second protocol comes into effect. The amendments in schedule 2 to the bill will commence on a single day to be fixed by proclamation.

The amendments in the bill will implement new document requirements for claims for preferential tariff treatment. Unlike the existing requirements, where importers are required to provide documentation certified by an authorised body, the new requirements of the second protocol allow approved exporters to provide self-certified documentation. The bill will also establish verification and record-keeping requirements for the exportation of goods to the parties of the agreement.

Additionally, the bill will make minor legislative amendments to procedures to implement free trade agreements already in force more effectively. This includes the Pacific Agreement on Closer Economic Relations Plus, or PACER Plus; the Malaysia-Australia Free Trade Agreement, or MAFTA; and the Regional Comprehensive Economic Partnership Agreement, or RCEP.

In particular, it will amend the definition of 'harmonized system' and related provisions to ensure that the Customs Act 1901 allows for the adoption of technical transposition of the product-specific rules of origin as provided for under PACER Plus and MAFTA. Timely adoption of the product-specific rules of origin makes trade simpler by allowing traders to use the current trade nomenclature when completing the relevant proof of origin instead of the trade classification systems of five, 10 or even 15 years ago.

The bill will also enable the creation of the approved exporter scheme under the second protocol and RCEP as previously described. The scheme will be established within regulations and will streamline the documentation requirements of participating exporters.

The changes delivered through the bill will support the government's commitment to open trade and contribute to Australia being an indispensable link in global supply chains. It will deepen and diversify Australia's trading relationships by building resilient and diversified regional and global supply chains in alignment with the Future Made in Australia National Interest Framework.

The bill is the only necessary legislative change required to implement the second protocol. Timely passage of this bill is important to ensure that broader trade facilitative benefits of the second protocol can be realised.

I commend the bill to the chamber.

Debate adjourned.