Ross Cadell (NSW, National Party) Share this | Hansard source

I was going to speak about how today is a good day for team Australia now we're getting these bills through, but, in the parlance of the world cup football in which we find ourselves, I'll say: this may be a tap-in goal for Minister Ayres and Minister Farrell, but the hard work was done by Minister Tehan, of the previous government, in the midfield and Minister Birmingham in the back. It took lots of work and lots of time to get here, and what do we find? Those opposite may not like gas power but they like gaslighting. They're talking about different ways in which this is all their work. Well, this was completed somewhere in February, but there wasn't enough time to get it to parliament. We had problems getting it through the Joint Standing Committee on Treaties to get it here, and we had problems getting it registered here. But today it is here, and this is a good day for Australia.

The Customs Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) Bill 2022 and related bills implement Australia's tariff obligations under the Australia-United Kingdom Free Trade Agreement and the Australia-India Economic Cooperation and Trade Agreement. Together, these agreements put more Australian exports in front of over 1.5 billion consumers and increase Australian exports covered by free trade agreements to over 80 per cent. This is more money in the pockets of Australians and Australian businesses. Together, they demonstrate the ambition and capacity of a determined and capable coalition government to provide Australian exporters with more market opportunities to grow their business.

The Australia free trade agreement with the UK is the most comprehensive and ambitious free trade agreement that Australia has with any other country, other than those across the ditch in New Zealand. On this agreement entry into force, tariffs of over 99 per cent of Australian goods to the UK will be eliminated. That comes at a value of $9.2 billion. Also under this agreement Australia will eliminate almost all the tariffs on goods originating from the UK, with a small number to see tariff elimination over five years. My Welsh wife will be pleased that PG Tips, proper tea, will come in cheaper under this arrangement.

This interim trade agreement with India strengthens our economic engagement with the world's fastest growing economy and what could be soon the world's largest populous country.

There are five bills before us—two covering our preferential tariff obligations under the trade agreement with the UK and three covering our preferential tariff obligations with India and a side letter dealing with double taxation. These bills once past execute the legislative requirement for Australia to advance ratification. We hope, on this side, that enough work has been in place with the UK and with India to be ratified in their places so that we get the benefit of indexation if they are ratified prior to the end of the year.

Rules of origin are also covered in this bill and also which goods are eligible for preferential tariff treatment. This includes goods that are wholly obtained or produced within the United Kingdom, or in the United Kingdom and Australia. Product-specific rules, PSRs, are outlined in annex 4B of the agreement. They will determine the circumstances for which goods imported from the United Kingdom which have components or inputs from a third party are still eligible.

The UK trade agreement with Australia must be noted. It is the very first trade agreement that the UK has reached following its exit from the EU. This is how important that relationship is to them, and it shows how important it is to us. The previous government stood ready to act quickly and put this in place, and that has paid off here. We're tapping in the goal, but it is a win for Australia. In Australia, this agreement has been wildly applauded by a range of groups, especially in rural Australia. They include the National Farmers Federation; Seafood Industry Australia—and, for those who can, go down to the seafood barbecue at the end of the year which celebrates that industry; the Australian Meat Industry Council; the sheep producers council; the Australian Beverages Council; the Law Council of Australia; the Australian Chamber of Commerce; the Business Council of Australia; and the Group of Eight.

We have already had a strong and special relationship with UK investors, and this FTA will only strengthen that. It will also make Australian exports to the UK cheaper and create new opportunities for workers, young people and businesses. Farmers and producers will have improved access to 65 million UK consumers, who value safe, sustainably produced products and beverages with the strong reputation that Australia holds. Around $43 million in annual customs duties will be removed from Australian wine when we enter the agreement. For beef there is a tariff-free quota of 35,000 tonnes at entry, which will expand to 110,000 tonnes in year 10. Tariffs on meat will be eliminated after 10 years.

We will see how we go with the new trade minister negotiating with the EU—if we can get tariff elimination at the end of that deal. Australia has never entered an FTA deal where tariff elimination is at the end. This is the test as to whether it happens now. Sheepmeat will have a tariff-free quota of 25,000 tonnes at entry, and will expand to 75,000 tonnes in year 10. Tariffs on sheepmeat will be eliminated after 10 years as well. I met with the UK agriculture minister about 12 months ago, when we were at the point where the debate—and this is how these things go, people up there in the gallery—was about, 'Is the weight bone in or bone out?' That is the level of negotiation that goes into these things. I'm glad it has been resolved.

For sugar and the north coast of New South Wales and Queensland there's a tariff-free quota of 80,000 tonnes at entry into force and it will expand to 220,000 tonnes in year eight. Again, sugar tariffs will be eliminated in eight years. That means, again, that we'll be looking at how Labor goes with the EU. This is a fantastic arrangement with the UK. It will also give our young people more opportunities in the UK, and it will better drive our growth and reputation.

I'll now turn to India. Australia's economic and cooperation trade agreement will see all of these come through the Treasury laws amendment bill, amending the International Tax Agreement Act 1953 to stop Australian taxation of certain payments or credits made to Indian residents who are providing technical services remotely to Australian businesses and customers. How we treat that has been a problem to the Australia-Indian arrangement, and that is fixed under this. The Australian trade agreement with India does open new growth for Australian exporters. With 1.4 or 1.5 billion people, and a growing middle class with growing disposable income, India is the economic powerhouse that can drive us to diversify our dependency on trade with China. We can diversify our markets and can look for value-added goods there probably more than in any other place in the world.

In 2020, India was Australia's seventh-largest trading partner, with two-way trade valued at $24.3 billion. Under this agreement, tariffs will be eliminated on more than 85 per cent of Australian goods exported to India, all rising to almost 91 per cent, valued at $13.4 billion, in 10 years. And Australian households will benefit with cheaper goods here, with 96 per cent of Indian goods imports entering Australia duty free on entry into force of the agreement.

Once again, Australian service suppliers, in 31 sectors and subsectors, will be guaranteed to receive the best treatment accorded by India to any future-Free Trade Agreement, including higher and adult education, business, medical and dental services, architectural and urban planning, and research and development. Anything that comes they will match under this agreement. They are the value-add services that drive our service-led economy.

There will be access also for young Indians to participate in working holidays in Australia: 1,000 places per year in Australia's 'work and holiday' program. The length of stay for an Indian student with a bachelor's degree and first-class honours will be extended from two to three years, post study, in the STEM and ICT sectors. There's third-party endorsement of this: the National Farmers Federation, Australian Grape and Wine Incorporated, WoolProducers, the Minerals Council of Australia, Apple and Pear Australia Limited, and the Australian Chamber of Commerce and Industry.

It has been the coalition's ambition—and, I now know, the Labor government's ambition—for these agreements to complete ratification by 30 November, so we can get that benefit of the double tariff cut on 1 January 2023. It is a good thing that they are here. It is not overly partisan. Let's neither of us try and claim the absolute win, because this is a win for the Australian people, Australian businesses and Australia's economy, and they'll be reaping the benefits of it for many years.

We hope these bills go through very quickly and successfully. We'll be supporting them. I commend this bill to the house.