Ursula Stephens (NSW, Australian Labor Party, Parliamentary Secretary for Social Inclusion and the Voluntary Sector) Share this | Hansard source

I thank Senator Brandis for indicating the opposition’s support for this important set of bills. As he said, the amendments give effect to the agreement establishing the ASEAN-Australia-New Zealand free trade area that was signed on 27 February 2009.

The agreement covers some 20 per cent of Australia’s total two-way trade in goods and services, worth $112 billion in 2008. As Senator Brandis described, there were 16 negotiation rounds, and the agreement is the most comprehensive trade agreement that ASEAN has ever concluded, covering goods, services, investment, intellectual property, competition policy, economic cooperation, movement of natural persons and electronic commerce. There is considerable potential for the agreement to create new trade opportunities and contribute to boosting Australia’s modest investment relationship with ASEAN, and the use of regional rules of origin available under the agreement will help Australian and ASEAN industry develop greater linkages into regional supply chains.

The agreement provides for the progressive reduction or elimination of tariffs facing Australian goods exports to ASEAN. Tariffs will be eliminated on between 90 and 100 per cent of tariff lines in the more developed ASEAN markets and in Vietnam, covering 96 per cent of Australia’s current exports in the region. The agreement will reduce or eliminate tariffs across a region that is home to 600 million people and a region with a combined GDP of A$3.2 trillion. That means greater job opportunities here in Australia.

Senator Brandis reported on the agreement to respond to the report by the Joint Standing Committee on Treaties into the agreement establishing the ASEAN-Australia-New Zealand Free Trade Agreement. The government has committed to formally responding by the end of this month, Senator Brandis. Prior to that formal response, the trade minister has advised that the government is positively disposed to the thrust of the committee’s recommendations, which for the most part are broadly consistent with Australia’s free trade agreement objectives and processes. The free trade agreement is expected to enter into force on 1 January 2010, upon the conclusion of domestic processes by Australia, New Zealand and at least four ASEAN member countries. I commend the bills to the Senate.

Question agreed to.

Bills read a second time.