Guy Barnett (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I move:

That the Senate take note of the document.

In standing to take note of this document I note that it relates specifically to an amendment to the tariff schedule of the Australia-United States Free Trade Agreement. The practical and legal effect of these changes is negligible. The modifications to the US tariff schedule are consistent with the changes made to Australia’s free trade agreement tariff schedule and will ensure consistency with the current customs description and coding system maintained by the World Customs Organisation.

This is an amendment to a very important agreement: the Australia-US Free Trade Agreement. That agreement was made on 18 May 2004 by the then Minister for Trade, Mr Mark Vaile. It was signed as the Australia-United States Free Trade Agreement. Of course, it is on the back of a very strong relationship between Australia and the United States, which has become even stronger in past years as a result of the very warm relationship between our Prime Minister, John Howard, and President George W Bush. I do not think the Australia-US alliance could ever be stronger than it is at present. I know everybody on this side of the chamber in particular is a very strong supporter of it.

Indeed, the Australia-US Free Trade Agreement was the envy, and still is the envy, of many countries around the world. It is the most important bilateral economic agreement ever undertaken by Australia and it is already delivering real benefits across all states and territories, including in my home state of Tasmania. The free trade agreement is deepening our trade and investment relationship with the largest economy in the world. It is the United States’ first free trade agreement with a developed country since it signed a deal with Canada in 1989. So you can see the importance and the uniqueness of it.

The United States is the world’s largest market. It has a population of just over 300 million and a GDP of $US12 trillion. It is the world’s largest importer, the world’s largest investor in other countries and the world’s largest purchaser of good and services. And the United States is one of Australia’s most important trade and investment partners. In 2006 the two-way trade relationship between our two countries was worth $A47.5 billion. Australia exported $A15.6 billion in goods and services to the US and imported $A31.8 billion in that year.

I note that, following the Australia-US Free Trade Agreement, in 2006 Australia’s exports of goods and services to the US increased by nine per cent after declining between 2001 and 2005. That says a lot about the benefits of this agreement. Again, I want to particularly congratulate the Prime Minister, John Howard, and Mark Vaile for the work that they did with their team to make this agreement a reality. The free trade agreement is helping Australia to expand the trade relationship by progressively eliminating tariffs on goods, securing improved market access for Australia’s main agricultural exports, opening up the US government procurement market to Australian companies and further integrating our professional and financial service sectors.

With regard to Tasmania specifically, there are many benefits but tonight I want to refer to the benefits across the board, not only in agriculture but in mining and manufacturing. And I want to acknowledge and comment on the Tasmanian poppy industry. The US has what is called an 80-20 rule, where 80 per cent of their poppies or opiate comes from Turkey or India and 20 per cent from the rest of the world. Tasmania is definitely the sole area in Australia where poppies can be planted. Crop areas have declined over recent years, but I hope and I understand that there is good news, because it was announced in March that poppy plantings in Tasmania are set to increase this year to 17½ thousand hectares. I want to pay tribute to the Poppy Growers Association, to Lindley Chopping, to Keith Rice and to the Poppy Advisory and Control Board and the work done by Dr Peter Patmore and his team there. I note that the Tasmanian Liberal Senate team is very supportive of that industry. I know that, under the US free trade agreement and the representations made, the benefits will proceed. I seek leave to continue my remarks.

Leave granted; debate adjourned.