Linda Reynolds (WA, Liberal Party, Assistant Minister for Home Affairs) Share this | Link to this | Hansard source

I table a ministerial statement and related document and seek leave to have the statement incorporated in Hansard.

Leave granted.

The statement read as follows—

Mr President,

I am pleased today to table the text of the World Trade Organization Agreement on Government Procurement (GPA), the terms of Australia's accession, along with the accompanying National Interest Analysis, for consideration by the Parliament.

Pursuing high-quality trade deals that support Australia's national interest is a central part of our government's economic plan. This government backs Australian businesses at home and abroad.

In 2015, the Liberal National Government launched negotiations to accede to the GPA. After three years of negotiations, Australia was formally invited to join the GPA on 17 October 2018. This Agreement will create significant opportunities for our high value, highly skilled services industries to secure more contracts that support more Australian jobs.

The consultation process has shown there is strong support within the Australian business community for Australia's GPA accession, including architectural, engineering, agricultural, construction, and professional service providers. States and territory governments have each agreed to support Australia's accession.

Accession to the GPA also reinforces Australia's support for the multilateral trading system and the importance of trade rules. Australia's accession to the GPA demonstrates the commercially meaningful outcomes that the multilateral system can provide for our exporters.

The GPA has 47 current members including the European Union, the United States, Japan, Canada, Korea and Singapore. The estimated procurement market of current members is $1.7 trillion a year.

Joining the GM will mean Australian businesses will have legally bound access to these 47 markets and will be able to participate on an equal footing with local competitors in these countries. Australian businesses and service providers will be able to access new opportunities in the European Union, Canada, European Free Trade Association states, Ukraine, and Chinese Taipei, and improved access over and above some of our existing free trade agreements.

Australian businesses will be even more competitive in winning government procurement contracts overseas including in areas of export strength.

This includes new opportunities in some member markets for:

And construction services across all 47 GPA member markets.

Australian suppliers will also gain new opportunities to bid for government procurement goods contracts, including:

The details of these opportunities and many others are set out in detail in an attachment to the National Interest Analysis, which I also table today.

By joining the GPA now, Australia will have a greater opportunity to influence the terms of new GPA parties' accession in support of our national interests.

There are nine countries, including China and Russia, currently seeking to join the GPA. Approval of new members requires them to open their government procurement market to suppliers of other parties in accordance with the GPA's principles of transparency and non-discrimination. When that happens Australia will also have new market access opportunities in those countries. China's government procurement market alone is estimated to be worth up to US$2.5 trillion annually, with expected GPA coverage of up to US$783 billion.

The Australian Government's procurement framework is already based on principles of value for money, non­discrimination and open competition. Australia's procurement markets are already open to all foreign suppliers, not just those with whom we have FTAs. No additional changes to the Government's procurement system will be required in order to comply with the GPA.

We have ensured our terms of accession to the GPA include a range of exceptions that provide flexibility to ensure Australia can continue to make necessary policy decisions and implement important nation-building programs.

These include broad exceptions in areas including health, welfare and disability services. The GPA also provides the same flexibilities as Australia's existing trade agreements to enable the Government to continue its strong support for small and medium enterprises (SMEs) to participate in procurement opportunities. This is an important outcome as SMEs are the engine room of the Australian economy — accounting for more than 99 per cent of Australian businesses. And around 30 per cent of SMEs (more than 700,000) are located in regional Australia.

Importantly, the GPA supports the continuation of the Coalition Government's landmark Indigenous Procurement Policy (IPP). In the first two years since the Indigenous Procurement Policy commenced, the Commonwealth has awarded 4,880 contracts with a total value of $594 million to 956 Indigenous-owned businesses. This is a 95-fold increase on Indigenous businesses winning Commonwealth contracts prior to the IPP.

Necessary security procurements are also exempt, such as defence materiel, systems and equipment. The GPA also has no impact on the Australian Industry Capability Program, which provides opportunities for Australian businesses and Australian workers to help grow Australia's Defence industry.

The states and territories are supportive of Australia's accession, and have all included exceptions to allow them to address specific sensitivities and largely continue with existing procurement arrangements, such as health and education services, and motor vehicle exceptions for South Australia, Victoria, New South Wales, Queensland and the Australian Capital Territory.

Accession to the GPA is a further demonstration of the Liberal National Government's proven record in initiating and delivering trade and economic outcomes for Australian businesses, exporters and service providers. This is in stark contrast to the protectionist policies of the Opposition that aim to undo the hard fought market access gains we've secured for Australian businesses and consumers.

I welcome the consideration of these opportunities by the Joint Standing Committee on Treaties (JSCOT) so that Australia can start to reap the benefits of greater market access.

I hereby table the World Trade Organization Agreement on Government Procurement, the terms of Australia's accession, along with its National Interest Analysis, and commend them to the Senate.