Arthur Sinodinos (NSW, Liberal Party, Cabinet Secretary) Share this | Hansard source

I thank Senator Day for his question. He gave me some notice of this question. I recognise his efforts to promote a more enterprising and a more market driven Australian economy. He mentioned the great Bert Kelly, who was the author—the thought leader—when it came to slashing tariffs and encouraging a less protected Australian economy.

While an FTA with Israel is not currently part of our work program, I think Senator Day raises an interesting point which I will follow up. We have already been pursuing an ambitious trade agenda. I have already mentioned the trade agreements in East Asia. We are also working on a regional comprehensive economic partnership and bilateral free trade agreements with India and are resuming talks with India. But you raise a very good proposal. We look a range of factors, Senator Day, in considering whether to pursue a bilateral free trade agreement. We seek to conclude them with partners who have shared interests in FTAs that are high quality and comprehensive, are generally trade liberalising and which advance our broader objectives, including at the multilateral level through the World Trade Organisation.

It is true that Israel maintains significant tariffs on a range of agricultural and food products. These tariffs on agricultural products were found to be 24.5 per cent compared to 4.2 per cent for non-agricultural products. We are supportive of Israel's efforts in the WTO and bilaterally to address barriers in agriculture, manufacturing and services. We welcomed the unilateral liberalisation of trade by Israel in areas such as dairy products in 2012. Israel was our 43rd ranked bilateral trading partner in 2014. This suggests that there is a lot of scope to grow that relationship both in terms of trade and investment. Two-way investment stands at $1.4 billion. We can do better than that.