Bill
Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Bill 2019
passed, as at 2019-12-03. Home Affairs portfolio.
- Sponsor
- Not recorded
- Portfolio
- Home Affairs
Recorded stages
- introduced — 2019-10-16
- second reading — 2019-10-16
- second reading — 2019-10-21
- second reading — 2019-10-21
- committee — 2019-10-21
- third reading — 2019-10-21
- introduced — 2019-11-11
- second reading — 2019-11-11
- second reading — 2019-11-25
- second reading — 2019-11-25
- committee — 2019-11-26
- third reading — 2019-11-26
- passed — 2019-11-26
- royal assent — 2019-12-03
Divisions
- Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Bill 2019 and another - Second Reading - Protect Australian industry — 2019-10-21, House of Representatives: negative, ayes 65, noes 77
- Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Bill 2019 - Consideration in Detail - ISDS clauses — 2019-10-21, House of Representatives: negative, ayes 5, noes 93
- The majority voted against a [motion](https://www.openaustralia.org.au/senate/?gid=2019-11-25.14.1) introduced by WA Senator [Jordon Steele-John](https://theyvoteforyou.org.au/people/senate/wa/jordon_steele-john) (Greens), which means the motion failed. ### Motion text > *At the end of the motion, add:* > > *", but the Senate is of the opinion that:* > >> *(a) the current process for negotiating trade agreements needs to be amended to increase transparency around the negotiations and final text of agreements;* >> >> *(b) all trade agreements should be subject to independent national interest assessments;* >> >> *(c) [investor-state dispute settlement](https://en.wikipedia.org/wiki/Investor-state_dispute_settlement) (ISDS) provisions need to be excluded from all trade agreements; and* >> >> *(d) human rights, labour, and environmental protection provisions must be included in all trade agreements."* — 2019-11-25, Senate: negative, ayes 13, noes 46
- The majority voted in favour of a [motion](https://www.openaustralia.org.au/senate/?id=2019-11-25.136.2) to agree with the main idea of the bill. In parliamentary jargon, they voted to read the bill for a [second time](https://www.peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/). ### Main idea of the bill According to the [bill webpage](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/r6426): > *Introduced with the Customs Tariff Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Bill 2019 to give effect to the Peru-Australia Free Trade Agreement, the Indonesia-Australia Comprehensive Economic Partnership Agreement and the Free Trade Agreement between Australia and Hong Kong, China, the bill amends the Customs Act 1901 to introduce new rules of origin to determine preferential rates of duty for certain goods originating from Peru, Indonesia and Hong Kong in accordance with the applicable agreement.* — 2019-11-25, Senate: affirmative, ayes 51, noes 9
- The majority voted against a [motion](https://www.openaustralia.org.au/senate/?gid=2019-11-26.4.3) introduced by WA Senator [Jordon Steele-John](https://theyvoteforyou.org.au/people/senate/wa/jordon_steele-john) (Greens) in respect to [investor-state dispute settlement](https://en.wikipedia.org/wiki/Investor-state_dispute_settlement). Senator Steele-John explained that: > *This amendment deals with the very pernicious clauses within these agreements that give corporations the right to sue governments. People might not be aware—although we've previously covered it pretty comprehensively in the debate—so I'll make it very clear: this deals with the inclusion of ISDS clauses, so the pathways through which corporations are able to sue governments for taking action in relation to regulating in the public interest. Australia has had more experience than many nations of the potential impact of these clauses. We have had the experience very close to hand of the way in which Philip Morris utilised an ISDS clause in a previous agreement with Hong Kong to pursue the Australian government in relation to plain-packaging laws after we had had that legislative decision upheld by the highest court in our land.* The Labor Party did not support the amendments, with ACT Senator [Katy Gallagher](https://theyvoteforyou.org.au/people/senate/act/katy_gallagher) (Labor) [explaining that](https://www.openaustralia.org.au/senate/?gid=2019-11-26.6.1): > *The improved ISDS clauses in these agreements include safeguards on the public interest, which allows Australia to regulate on legitimate public welfare objectives. This includes the protection of public health, safety and the environment.* ### Motion text > *(1) Clause 2, pages 2 and 3, table items 2 to 4, omit the table items, substitute:* > > *2. Schedule 1* > >> *If the Peru-Australia Free Trade Agreement, done at Canberra on 12 February 2018, enters into force for Australia—the first day that bilateral side letters exchanged between Aust — 2019-11-26, Senate: negative, ayes 13, noes 36
- The majority voted against a [motion](https://www.openaustralia.org.au/senate/?gid=2019-11-26.50.1) introduced by WA Senator [Jordon Steele-John](https://theyvoteforyou.org.au/people/senate/wa/jordon_steele-john) (Greens) in respect to requiring labour market testing. Senator Steele-John [explained that](https://www.openaustralia.org.au/senate/?gid=2019-11-26.50.1): > *We in the Greens would never quibble or seek to oppose the ability of any person to come to Australia and to work and be protected while they work in a safe workplace. But what we see, particularly with the Indonesia agreement, is a process being opened up by which permits have been granted to that nation for work which can be utilised without undertaking the pretty basic principle of checking to make sure whether or not there is anybody currently present within the community who is able to do that job and who has the qualifications to do that job.* However, ACT Senator [Katy Gallagher](https://theyvoteforyou.org.au/people/senate/act/katy_gallagher) (Labor) [explained that](https://www.openaustralia.org.au/senate/?gid=2019-11-26.51.1): > *I think it's important to add here that there is no change to labour market testing and the conditions that have applied since 1995. These agreements that we are dealing with are not changing the arrangements that have been in place. With respect, I think Senator Steele-John might be incorrect about some of the concerns that he is raising, and Labor will not be supporting the amendment.* ### Motion text > *(2) Clause 2, pages 2 and 3, table items 2 to 4, omit the table items, substitute:* > > *2. Schedule 1* > >> *If the Peru‑Australia Free Trade Agreement, done at Canberra on 12 February 2018, enters into force for Australia—the first day that bilateral side letters exchanged between Australia and each other party to the Agreement agreeing that labour market testing must occur in relation to contractual service suppliers, working holiday visa holders and training vi — 2019-11-26, Senate: negative, ayes 13, noes 37
- The majority voted against an [amendment](https://www.openaustralia.org.au/senate/?gid=2019-11-26.64.1) introduced by WA Senator Jordon Steele-John (Greens), which means it failed. The amendment was introduced in order to replace a table item 4 in clause 2 of the [Customs Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Bill 2019](http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/r6426). Senator Steele-John [explained that](https://www.openaustralia.org.au/senate/?gid=2019-11-26.64.1) the amendment related to the Australia-Hong Kong Free Trade Agreement. It would have delayed the commencement of Schedule 3 until the latest of the following dates: > *(a) 20 October 2020;* > > *(b) the day this Act receives the Royal Assent;* > > *(c) the day the Free Trade Agreement between Australia and Hong Kong, China, done at Sydney on 26 March 2019, enters into force for Australia.* > > *However, the provisions do not commence at all if the event mentioned in paragraph (c) does not occur.* > > *The Minister must announce, by notifiable instrument, the day the Agreement enters into force for Australia.* The [explanatory memorandum](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/display.w3p;query=Id%3A%22legislation%2Fems%2Fr6426_ems_8d5f3031-1911-4847-a508-ecf5688cbd98%22;rec=0) explains that: > *Schedule 3 of the Bill amends the Customs Act to provide rules for determining whether goods are Hong Kong originating goods and therefore entitled to be imported into Australia at preferential rates of customs duty. The amendments also enable regulations to prescribe record keeping obligations on exporters and producers of goods exported to Hong Kong, China for which a preferential rate of customs duty is claimed.* — 2019-11-26, Senate: negative, ayes 13, noes 31
- The majority voted against [amendments](https://www.openaustralia.org.au/senate/?gid=2019-11-26.69.1) introduced by SA Senator [Rex Patrick](https://theyvoteforyou.org.au/people/senate/sa/rex_patrick) (Centre Alliance), which means they failed. Senator Patrick [explained that](https://www.openaustralia.org.au/senate/?gid=2019-11-26.69.1) the amendments: > *will insert a schedule into the bill to amend the Productivity Commission Act 1998 to require a wideranging and independent inquiry by the commission into the impacts of Australia's bilateral and regional trade agreements. The last [Productivity Commission](https://en.wikipedia.org/wiki/Productivity_Commission) inquiry on free trade agreements was almost a decade ago.* ### Amendments text > *(1) Clause 2, page 2 (table item 1), omit "Sections 1 to 3", substitute "Sections 1 to 4".* > > *(2) Page 3 (after line 11), after clause 3, add:* > > *4 Impact of bilateral and regional trade agreements on Australia ' s trade and economic performance—Productivity Commission inquiry* > > *(1) By the day after this section commences, the Productivity Minister must, under Part 3 of the Productivity Commission Act 1998, refer to the Productivity Commission for inquiry the following matters:* > >> *(a) the contribution of Australia's bilateral and regional trade agreements to reducing trade and investment barriers and safeguarding against the introduction of new barriers;* >> >> *(b) the impact of trade agreements on trade flows, investment returns and productivity growth, employment and labour markets, and the development of manufacturing and value-added export industries;* >> >> *(c) any related matters.* > > *(2) In referring the matter to the Productivity Commission for inquiry, the Productivity Minister must:* > >> *(a) under paragraph 11(1) (a) of the Productivity Commission Act 1998, require the Productivity Commission to hold hearings for the purposes of the inquiry; and* >> >> *(b) under paragraph 11(1) (b) of that Act, s — 2019-11-26, Senate: negative, ayes 13, noes 47
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2019-10-16.
The bill changes the Customs Act 1901 so that goods from Peru, Indonesia, and Hong Kong can enter Australia with discounted import taxes.
It sets up rules for identifying which goods count as originating from each of those places and lets regulations require exporters and producers to keep records when they claim those discounts.
Budget papers say the Hong Kong deal would cost the government $40 million in lost revenue over the forecast period, while the Peru and Indonesia deals would have little or no revenue effect.
- Creates rules for classifying Peruvian, Indonesian, and Hong Kong goods as eligible for lower customs duty rates.
- Allows regulations to impose record-keeping duties on exporters and producers claiming preferential rates.
- Works with a separate tariff bill that will list the actual reduced duty rates in the Customs Tariff Act 1995.
Australian exporters and producers of goods shipped to Peru, Indonesia, and Hong Kong, and importers of those goods into Australia.
Sources
em
billhome
frl act