David Van (Victoria, Liberal Party) Share this | Hansard source

I must admit I don't agree with much—or anything—of what my good friend Senator Roberts said. I welcome the government's move to introduce the tranche of bills that is before us today. I'm especially pleased that they have finally introduced the Customs Amendment (Australia-United Kingdom Free Trade Agreement Implementation) Bill 2022 and its partner, the Customs Tariff Amendment (Australia-United Kingdom Free Trade Agreement Implementation) Bill 2022. However, quite simply, the introduction of this bill should have been months ago. Perhaps if the government had gone to the effort of appointing a High Commissioner to the United Kingdom, they might have heard from that person how urgent and important it is that this is done. But, alas, we still don't have a High Commissioner, and after over six months of government we are only now seeing this bill entered into the Senate.

It was, after all, on 15 June last year that then prime ministers Morrison and Johnson announced that they had reached an agreement on the core principles of that free trade agreement. It was the coalition government who did all the heavy lifting and delivered on an ambitious agenda to get this free trade agreement done. Fundamentally, the former coalition government understood the importance of free trade and delivering better trade and market access. When we arrived in government in 2013, only 27 per cent of Australia's two-way trade was covered by free trade agreements. When we left government earlier this year, that figure was 75 per cent of all two-way trade.

It's important to note that this is the first free trade agreement that the UK has reached following its exit from the EU. This highlights the incredible work done by the then trade minister Dan Tehan, who negotiated this deal while we were in government. The Australia-United Kingdom Free Trade Agreement is the gold standard across all trade agreements of its kind. Australia's free trade agreement with the UK is the most comprehensive and ambitious free trade agreement that Australia has, other than our one with New Zealand. The United Kingdom is one of our most important partners in the world. Our nations share a closely aligned strategic outlook, and we cooperate across a wide range of foreign policy, defence, security, intelligence, trade and economic issues. When this agreement comes into force, tariffs on over 99 per cent of Australian goods exported to the UK—valued at around $9.2 billion—will be eliminated. Under the agreement, Australia will also eliminate almost all tariffs on goods originating from the UK, with a small number to see tariff elimination over five years. Australia and UK are both trading nations that share a commitment to liberalised free trade which is underpinned by our shared heritage and values. We already have a strong and special relationship rooted deeply in business and people-to-people connections. The free trade agreement will only strengthen this further.

In Australia, as my good friend Senator Cadell said, it has been widely applauded by a range of different business groups. It will make Australian exports to the United Kingdom cheaper and create new opportunities for workers, young people and businesses. Importantly, the Australia-United Kingdom Free Trade Agreement delivers a wider range of trade and market access opportunities for exporters. In what can be seen as a giant win for our farmers and producers, they will now have improved access to more than 65 million UK consumers who value safe, sustainably produced food and beverages, with the strong provenance that Australia offers. Around $43 million in annual customs duties will be removed from Australian wine when the agreement enters into force which will help those who have been subject to illegal trade sanctions by the Chinese Communist Party. This free trade agreement will save Australian households and businesses around $200 million a year, with tariffs on almost all UK goods being eliminated on the agreement entering into force. At a time when we are having a cost-of-living crisis, this should have been a priority. Yet, unfortunately, we've seen this government drop the ball when it comes to the cost-of-living crisis that Australians are facing. Instead, they're spending more time looking at entrenching and enhancing their union mates' power.

Because of the coalition's work, under this free trade agreement, professionals will have the same access to the United Kingdom's lucrative jobs market as their European competitors, except, obviously, for the Republic of Ireland. This means Australian jobseekers can compete on an equal footing with EU nationals in the UK for the first time in more than 40 years. At a time when employers across Australia are crying out that they are understaffed and need more workers to keep up with demand and keep their businesses alive, this agreement will make it easier for more British people to come and work here, and they will be able to do so for longer than their traditional 80-day stay at a farm. They can also help fill critically understaffed industries such as hospitality, aged care and child care. It is for this reason that the Albanese government needs to stop dithering and start doing. Our Victorian businesses cannot wait one more year for the next sitting fortnight to hash out the finer details of this agreement. They need cheaper imports and more staff for this Christmas season coming up or—and I say this with deep sorrow—some Victorian businesses may not survive to see their next Christmas.

Australian businesses will also have a guaranteed right to bid for a greater variety of UK government contracts in a procurement market estimated to be worth half a trillion dollars annually. Australia and the UK have a strong and enduring investment relationship that reflects the deep ties between our countries and our shared traditions of good governance and robust legal systems. UK businesses will be encouraged to invest in Australia thanks to best practice investment rules, including to set up regional headquarters in Australia to leverage our network of free trade agreements. In 2020, the UK was the second-largest source of foreign investment in Australia, totalling $738 billion, and the third-largest source of foreign direct investment at $123 billion. By bringing in new businesses with connections in different markets, foreign investment from the UK can create more export opportunities for Australian businesses. Increased UK investment will also encourage competition and increase innovation by bringing new technologies and services to the Australian market, promoting productivity, employment and wages growth.

Given the considerable benefits and opportunities that this agreement will bring to both Australia and the UK, it is really absurd that it took the government this long to get it in front of the Senate. As an open trading nation, our future prosperity depends on Australian businesses continuing to be competitive, innovative and successful in new markets. Trade agreements help create opportunities for business and for people to grow and succeed. This creates more jobs and more skilled people to fill those jobs.

It is important to remember that the coalition managed to negotiate this free trade agreement during the COVID-19 pandemic, a time when we were experiencing the most difficult conditions that any of us had ever experienced—a time when those opposite kept on yelling out across the chamber that we had only two jobs to do. It's really unbelievable now, isn't it? So the Labor Party really has no excuse for why it has taken this long to bring these bills before us. Clearly, this government hasn't yet figured out how to walk and chew gum at the same time.

When it comes to the Australia-India Economic Cooperation and Trade Agreement, the customs amendment and customs tariff amendment bills will have similar effects to the customs bills covering the UK agreement. Both implement Australia's rules-of-origin and preferential-tariff-rate obligations in the trade agreement with India. This agreement with India opens up a new era of growth for Australian exporters. The coalition should be congratulated for our hard work in getting these across the line.

In 2020 India was Australia's seventh-largest trading partner, with two-way trade valued at $24.3 billion. India is also an important friend and ally in the region, who we have been working with deeply through our Quad partnership. Under this agreement, tariffs will be eliminated on more than 85 per cent of Australian goods exported to India, rising to almost 91 per cent, which is valued at $13.4 billion, over 10 years. Countless Australian sectors will benefit from this agreement, helping our producers gain greater access to a more diverse range of markets. It has been the coalition's ambition for these agreements to complete their domestic ratification processes by 30 November so that exporters can get the benefit of a double tariff cut on 1 January 2023.

As I said, we have been completely bipartisan in supporting the government on these bills; however, why the government has been so haphazard and slow in the implementation of this agreement is absolutely baffling. It shows they have little or no idea on how to govern. Obviously, we support these bills and therefore call on the government to stop the delay. Let's get these agreements implemented as quickly as possible so that Australian exporters can start to reap the benefit of the coalition's hard work.