WT/TPR/M/396

27 May 2020

(20-3829) Page: 1/53

Trade Policy Review Body

11 and 13 March 2020

TRADE POLICY REVIEW

AUSTRALIA

MINUTES OF THE MEETING

Chairperson: H.E. Mr Manuel A.J. Teehankee ()

CONTENTS

1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ...... 2 2 OPENING STATEMENT BY THE REPRESENTATIVE OF ...... 4 3 STATEMENT BY THE DISCUSSANT ...... 7 4 STATEMENTS BY MEMBERS ...... 10 5 REPLIES BY THE REPRESENTATIVE OF AUSTRALIA AND ADDITIONAL COMMENTS .... 46 6 CONCLUDING REMARKS BY THE CHAIRPERSON ...... 51 7 ELECTION OF THE NEW CHAIRPERSON OF THE TPRB ...... 53

Note: Advance written questions and additional questions by WTO Members, and the replies provided by Australia are reproduced in document WT/TPR/M/396/Add.1 and will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.

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1 INTRODUCTORY REMARKS BY THE CHAIRPERSON

1.1. The eighth Trade Policy Review of Australia was held on 11 and 13 March 2020. The Chairperson, H.E. Mr. Manuel Teehankee (Philippines), welcomed the delegation of Australia, headed by Mr. George Mina, First Assistant Secretary, Office of Trade Negotiations at the Department of Foreign Affairs and Trade; H.E. Ambassador Frances Lisson, Permanent Representative of Australia to the WTO; the rest of the delegation from and to other colleagues from the Mission in Geneva; and the discussant, H.E. Mr. Julian Braithwaite ().

1.2. As indicated in document WTO/AIR/TPR/94/Add.1, TPRB Members were invited to elect the new Chairperson, H.E. Mr. Harald Aspelund (), on the second day of the meeting. Given that Australia's TPRB meeting took place on a virtual basis, the election of the new Chairperson was also considered in the same manner.

1.3. The Chairperson recalled the purpose of TPRs and the main elements of procedures for the meeting. The report by Australia was contained in document WT/TPR/G/396 and that of the WTO Secretariat in document WT/TPR/S/396.

1.4. Questions by the following delegations were submitted in writing before the deadline: Republic of Korea; ; Israel; ; Costa Rica; European Union; , ; ; Brazil; Colombia; ; ; ; Dominican Republic; ; China; ; United Kingdom; Ukraine; ; ; and . The following delegations submitted written questions after the deadline: Russian Federation; Iceland; ; ; ; ; ; Guatemala; and the Philippines.

1.5. At the last Review in 2015, Australia had been praised for its inter-related trade openness, growth and living standards. It had been noted that Australia had experienced more than 20 years of uninterrupted growth, due in good part to sound macroeconomic principles and policies. Australia had been congratulated for trade-related reforms in a number of areas. Nevertheless, Australia had been facing challenges relating to terms of trade effects, currency appreciation, an ageing population and continued over-reliance on the sector. It had also been noted that, although Australia encouraged foreign investment, it was also maintaining restrictions in certain sensitive sectors.

1.6. Australia had been commended for its commitment to the rules-based multilateral trading system and its active engagement in trade and investment liberalization activities within and outside of the WTO. Australia's strong WTO notification record had also been highlighted. Noting Australia's increasing involvement in RTAs, particularly with its partners in Asia, some Members had stressed the importance of outcomes that would complement and strengthen the multilateral trading system.

1.7. Some Members had urged Australia to rethink taxes such as the tax on luxury cars with due consideration to the potential negative effect on trade. Many Members had noted that Australia was a relatively frequent user of anti-dumping measures, and that it was planning further improvements to its legislative framework, inter alia, to address procedural transparency and delays. In reforming its biosecurity system, Australia had been encouraged to simplify it, to align with international standards, recommendations and guidelines to the extent possible, and to strike a good balance between trade facilitation and import risk management. Members had welcomed Australia's intention to accede to the revised WTO Government Procurement Agreement and open its procurement market further, particularly at the sub-federal level. Recognizing services as the main pillar of economy, several Members had noted progress made in this area and had encouraged Australia, inter alia, to liberalize maritime cabotage. It was to be interesting to hear from Australia what developments had taken place since the last Review with respect to some of these issues.

1.8. The Secretariat and the Government reports confirmed that the economic expansion continued during the current review period, although at a more moderate pace recently, as a mining investment boom reached its end, and the domestic real estate market softened. The provided economic stimuli in various forms, including lower taxes, higher public consumption, increased outlays on research and development, and major investments in infrastructure. Nonetheless, the federal budget balance improved and was currently in slight surplus. The economy was also aided by interest rate cuts by the central bank – to a new record low of 0.50% as at the Tuesday prior to the meeting - and a steady depreciation of the . As a result, per capita GDP continued to increase in the national currency, while, measured in US dollars, it was now

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- 3 - around USD 55,000, a significant decline from almost USD 70,000 in 2012/13. All the same, these figures indicated a very comfortable standard of living overall.

1.9. Australia's current account deficit narrowed, in major part because the merchandise trade balance had been in surplus since 2016/17, while receipts from tourism and education-related services had also been on the rise. Net flows of foreign investment into Australia averaged AUD 60 billion per year in the period under review, and the stock of FDI now stood at close to AUD 1 trillion. Australia was also an active investor in other countries.

1.10. Mineral products still accounted for nearly 60% of Australia's exports, and the reliance on Asian markets continued to increase, particularly for imports. Asian markets currently absorbed about 84% of Australia's exports. The ongoing trade tensions between some of Australia's main trading partners were, no doubt, a matter of concern to the authorities in Canberra.

1.11. With respect to regional trade agreements, important changes took place for Australia in the period under review, in particular the entry into force of the Progressive Agreement for Trans-Pacific Partnership (CPTPP). Two bilateral FTAs – with Japan and China – also took effect. Further FTAs had been concluded, but were not yet in force, or were under negotiation. About 70% of Australia's two- way trade was now covered by FTAs, and, according to the Government report, the goal was to reach 90% by 2022. This was a massive change for a WTO Member whose share of FTA partners in total trade was well under 30% as late as 2013.

1.12. Against this background, Australia remained fully committed to a strong multilateral trading system and was actively engaged in ongoing negotiations to enlarge its scope. Australia's notification record was still exemplary. It joined the plurilateral WTO Agreement on Government Procurement in 2019 and ratified the WTO Trade Facilitation Agreement in 2015. Low MFN tariffs fell further as a result of Australia's implementation of the expanded WTO Information Technology Agreement (ITA) and unilateral tariff reductions on textile, clothing and footwear items. The maximum MFN rate was now 5%, and close to 50% of the tariff lines faced zero import duty on an MFN basis. However, these low rates also highlighted the discrepancy between Australia's present applied and bound regimes, including a simple average bound MFN rate of 9.8% and more than 200 six-digit tariff lines that remained unbound in full or in part.

1.13. Australia received more than 550 advance written questions for this Review. Many of these questions touched upon important legislative developments in the period under review, such as the entry into force of the Biosecurity Act of 2015, two basic regulations associated with it, and more than 100 additional legal instruments related to biosecurity; changes to Australia's competition legislation following the conclusion of the Harper Review in March 2015; new and amended legislation on intellectual property; regulations; and amendments to the rules that govern anti-dumping and countervailing measures, of which Australia remains a relatively active user.

1.14. Australia's screening of foreign investment by its Foreign Investment Review Board (FIRB) had also attracted a lot of interest among Members, in particular the application of national interest criteria on a case-by-case basis, the application of "appropriate mitigation measures" rather than the outright rejection or refusal of investment proposals, and taxation issues.

1.15. Other areas of great interest to Members included: transformation to a digital economy and the e-commerce agenda; benefits from trade facilitation; changes to the Goods and Services Tax (GST) and other indirect taxes applied at the federal or sub-federal level; export assistance programmes, support to manufacturing; standards and technical regulations; a new country of origin labelling system for food products; objectives and preferences in government procurement; concessional loans to the agricultural sector; Australia's gas and electricity markets; and the Tourism 2030 strategy. The Chairperson was sure that these topics, as well as others, would be touched upon in greater detail at Members' deliberations during the two days of the meeting.

1.16. The Chairperson closed his introductory remarks by wishing Australia a very successful eighth Trade Policy Review.

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2 OPENING STATEMENT BY THE REPRESENTATIVE OF AUSTRALIA (MR. GEORGE MINA)

Introduction

2.1. On behalf of Australia, I welcome our eighth Trade Policy Review.

2.2. Australia has always played a pioneering role in the Trade Policy Review process. Australia volunteered to be the first country to undergo a Review in 1989. We consider it a crucial process for ensuring the multilateral trading system’s foundational values of accountability, predictability and transparency. In the circumstances we find ourselves in today with concerns about the prevalence of coronavirus here in Geneva, we again are playing a pioneering role, by becoming the first country to experience what we might term a “virtual TPR”. While our colleagues could not all be here, their engagement through the interactive process leading to today has been very extensive, and we thank them for that high level of engagement. WTO Members posed almost 600 questions to us, and we have endeavoured to meet the highest standards of transparency in our responses.

2.3. I would, of course, wish to extend particular thanks to Ambassador Julian Braithwaite, Permanent Representative of the United Kingdom, whom we are honoured to have as our discussant. I would also like to provide special thanks to the WTO Secretariat for its comprehensive report on our trade and economic policies.

2.4. Trade matters to Australia, and that’s why we invest so heavily in the . Australia’s economy is highly integrated with the global economy, particularly the Indo-Pacific region. Australia’s trade with the world is equivalent to a record 46 per cent of our GDP, compared to 40 per cent in 2015, and one in five jobs is now driven by trade.

Australia’s economic environment

2.5. The Secretariat’s report on Australia's trade policies highlights the strength and resilience of the Australian economy in the face of transformations in the global economic landscape. In fact, in the thirty years since our first Trade Policy Review, Australia’s open, globalized economy has enjoyed 29 years of uninterrupted growth.

2.6. This remarkable achievement is due to careful economic policy management and the successful fostering of an internationally competitive, outward-looking economy. These efforts have helped counter the effects of recent international and domestic challenges, including international trade tensions and other challenges such as the impact of recent bushfires and the ongoing costs of the coronavirus outbreak.

2.7. Australia continues to provide the world-class produce, merchandise and tourism experiences we have long been famous for – our recovery is well underway and we are open for business.

Developments in Australia’s economy

2.8. During the period of the review, the Australian economy has continued to internationalize. Our exports grew from AUD323 billion in 2015 to AUD437 billion in 2018. The division between our services and commodity exports is also blurring. Increasingly services and technology are embedded across all of Australia’s export sectors and underpin future growth prospects.

2.9. While Australia is well known for being among the top 10 agricultural exporters in the world, we are also now a world-class provider of professional services, financial services, energy and mining-related services, environmental services and financial technology.

2.10. Australia’s manufacturing sector is transforming, with our linkages to global value chains increasing. High value-added products and related services becoming increasingly embodied in activity across the entire economy, including in the resources exporting sector.

2.11. Inward foreign investment is a key driver of Australia’s r economy, and we also have very significant stocks of outward foreign investment. Australia’s considerable and diverse resources reserves, highly developed skills and technology base, proximity to fast-growing markets, and strong rule of law make it an attractive destination for foreign investment.

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2.12. Australia has also sought to strengthen the competitiveness and overall performance of our economy through a range of reforms and regulatory changes. These include strengthening competition and consumer legislation, tax reform, increasing infrastructure investment, and reforming the regulatory environment for small and medium business to minimize regulatory burden. We have also put in place a plan for development of the digital economy, and established a process designed to boost the competitiveness of Australia’s services sector.

Support for the multilateral trading system

2.13. During these dynamic times, Australia remains strongly committed to the multilateral trading system. The hallmarks of our approach are a commitment to rules a commitment to openness. The WTO, its rules, and dispute settlement framework have enduring value and are essential to the stability of Australia’s external economic environment.

Engagement in WTO reform

2.14. Australia is actively supporting efforts to ensure the WTO remains at the core of a well- functioning global trading system in the future. Updating the WTO rulebook, maintaining an effective dispute settlement system and addressing institutional challenges are Australia’s highest priorities.

2.15. Most immediately, we are focused on finding a way forward on the with the goal of preserving confidence in the WTO’s dispute settlement system and its two-tier review mechanism. A successful multilateral outcome will only be developed with the serious buy-in of all WTO Members, developed and developing. And we stand ready to find a way forward – working with all WTO Members.

2.16. Australia is also firmly committed to updating the WTO’s rulebook to ensure the Organization remains relevant to business and the modern, global economy. We have been, and will continue to be, consistent policy leaders across much of the negotiating agenda.

2.17. Australia has been a constructive and engaged participant in the fisheries subsidies negotiations. We need to push hard to secure an outcome by MC12 that will offer new disciplines on fisheries subsidies. That’s important for trade – but also for environmental sustainability.

2.18. Australia actively participates in all the Joint Statement Initiatives which we consider vital to injecting much needed momentum into the WTOs negotiating function. We have been driving efforts to conclude negotiations on services domestic regulation at MC12, which will benefit services suppliers globally.

2.19. Australia, along with Japan and Singapore, is also a co-convenor of the E-commerce JSI and Ambassador Lisson has ably and effectively chaired these important negotiations to the point they are at today. In today’s technology-driven global economy, WTO rules for global digital trade, worth over US 29 trillion dollars in 2017 are essential to help unlock the economic potential of digital trade for all WTO Members.

2.20. And we are an active participant in the initiatives on investment facilitation and micro small and medium enterprises.

2.21. As Chair of the Cairns Group we are working to reset the global discussions on trade distorting agricultural domestic support. As a competitive and productive agricultural exporter, we need market-oriented and transparent agricultural trading rules to deliver a fair trading environment. If we do not act now, domestic support entitlements for agriculture could be over two trillion U.S. dollars by 2030.

2.22. These rules underpin the livelihood of Australia’s rural communities, and our economic prosperity more broadly. That is why we need to prevent the very significant distortions that such levels of support could have on trade in agriculture.

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Support to developing countries

2.23. Australia prioritizes support for developing countries to maximize the benefits for all of international trade. We have been a strong supporter of the Global Aid for Trade Initiative since it began in 2005.

2.24. In line with the Sustainable Development Goals, the Australian Government set a target in June 2014 to increase Australia's aid for trade investments to 20% of the total aid budget by 2020. Australia achieved its target ahead of schedule in 2016-17, and has met it every year since.

2.25. A key element of our aid for trade program is supporting developing countries to undertake trade facilitation reforms in line with the WTO Agreement on Trade Facilitation. To date, we have contributed over USD 11 million to support this work.

2.26. Australia also continues to integrate gender equality and women’s economic empowerment into our aid for trade investments to support more women to participate fully and effectively in trade.

Free Trade Agreements

2.27. As a nation that relies on trade with the world for its economic prosperity, Australia has continued to pursue ambitious and WTO-consistent agreements to secure significant new market access, create investment opportunities and stimulate our competitiveness. Australia’s high quality FTAs also aim to serve as building blocks for wider multilateral liberalization.

2.28. Since our last Trade Policy Review, new Australian FTAs have entered into force such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and bilateral FTAs with China, Japan, Korea, Hong Kong and Peru. Australia has also concluded free trade agreements with Indonesia and the Pacific Agreement on Closer Economic Partnership Plus (PACER Plus).

2.29. As a result, over 70% of Australia’s two-way goods and services trade is now with countries with whom we have an in-force free trade agreement – a significant expansion on the 2013 figure of 26.8%.

2.30. This figure will continue to grow. Australia is currently engaged in active bilateral FTA negotiations with the European Union, and regional FTA negotiations within the Regional Comprehensive Economic Partnership (RCEP) and with the Pacific Alliance. Australia aims to expand Australia’s current network of free trade agreements to have around 90 percent of our two-way trade covered by FTAs by 2022. All of these agreements of course build on, and reinforce, WTO rules and principles.

Concluding remarks

2.31. In conclusion, Australia remains a staunch advocate for an open international economy. We will continue to stand against protectionism and to promote and defend the international trade rules that guard against unfair trade actions and help to resolve disputes.

2.32. As a medium-sized nation that depends heavily on openness in world trade, Australia will continue to have a major interest in preserving and building upon the strength of the rules-based multilateral trading system with the WTO at its centre.

2.33. Australia welcomes the valuable engagement and contributions by our Chair, Ambassador Teehankee, and our discussant, Ambassador Braithwaite, during our Review. We are especially grateful to those other WTO Members who have continued to engage with us so constructively and informatively throughout the course of our TPR. Thank you.

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3 STATEMENT BY THE DISCUSSANT

3.1. Thank you, Ambassador Teehankee. I'd also like to extend a welcome to First Assistant Secretary George Mina and his team from Canberra, and to Ambassador Lisson and her Geneva- based colleagues.

3.2. It is a great pleasure for me to serve as the discussant for Australia's eighth Trade Policy Review. The United Kingdom and Australia share a long and close history, including ties of kinship and friendship. Visitors from the United Kingdom account for over 700,000 arrivals in Australia each year, making the United Kingdom the fourth ranking source country for short-term visitors. The top reason cited by visitors from the UK to Australia for their travel to Australia is to see family and friends. The Department of Foreign Affairs and Trade country brief for the United Kingdom says that "The United Kingdom is one of our most like-minded partners in the world", which I consider to be as complimentary as it is true.

3.3. My role as discussant is to highlight the most important issues for discussion, particularly the developments since the last review and the trade and trade related challenges facing Australia. I will focus on developments in Australia's economic outlook, its trade policy, and on the issues that Members have raised in their questions.

3.4. First, the economic outlook.

3.5. The excellent report from the WTO Secretariat, for which I commend Director Alfaro and his staff, notes the resilience of the Australian economy, which has not suffered a in nearly 29 years. At the time of its last Trade Policy Review in 2015, Australia's economy faced challenges from the end of the mining boom, excess capacity in the labour market, risks in the housing sector, and exposure to economic slowdowns in major export markets. It was able to weather these economic challenges through prudent economic policies while maintaining its commitment to openness and the multilateral trading system.

3.6. During the review period, Australia undertook a number of actions to support growth and employment. Government spending on infrastructure and research and development both increased. Corporate tax reductions for small and medium-sized businesses were introduced under the Ten Year Enterprise Tax Plan to make Australia's rates more competitive internationally. The government continued to reduce regulatory barriers and the costs of compliance, to the benefit of businesses. It adopted significant changes to the legislative framework for competition policy in 2017 and 2018. Australia's liberal investment regime contributed to an increase of inward foreign direct investment over the review period with notable growth in the financial services and real estate sectors.

3.7. The 2015 Trade Policy Review identified certain problematic areas, such as low productivity growth, weak employment growth and labour force participation growth, that also feature in this year's report.

3.8. As the Australian Government has noted in its own report, investment in education will be an important element of Australia's plans to use and technology and the digital economy to improve productivity and contribute to continuing growth. Although infrastructure spending has increased, continued gaps in both transport and social infrastructure are forecast. Additionally, the high cost of energy, reflecting limited competition within the sector, continues to be a challenge. Increased investment in renewable energy sources has resulted in a larger share of electricity being provided through these 'clean' sources.

3.9. Finally, the Secretariat Report refers to the findings of the Banking Royal Commission, and quotes the Reserve Bank of Australia on the need for changes to 'reduce the risk of future misconduct, ensure the quality of financial services provided in Australia meets community expectations, and protect the reputation of Australian banks among international creditors.' Early implementation of these recommendations ought to provide greater confidence for the domestic and international business community.

3.10. Second, Trade Policy.

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3.11. Australia continued to demonstrate its commitment to the WTO and the multilateral trading system during the Review period. In June of 2015 it ratified the Trade Facilitation Agreement, it is implementing the expansion of the Information Technology Agreement and last May joined the plurilateral Government Procurement Agreement. It is actively engaged in the on-going negotiations on disciplining harmful fisheries. In those negotiations, Australia is contributing both a facilitator to support the negotiations, as well as the institutional memory of one of their negotiators, which extends back to the beginning of the talks. Australia has also shown great leadership in the work under the Joint Statement Initiatives, in particular on E-Commerce.

3.12. In parallel, Australia also pursues bilateral and plurilateral trade liberalization through a number of regional trade agreements. Three new RTAs entered into force since the last review, and a further four were signed. Australia is currently engaged in free trade negotiations with the European Union, the , and India, as well as under the Pacific Alliance with Chile, Colombia, Mexico and Peru, and the Regional Comprehensive Economic Partnership with ASEAN and other regional partners.

3.13. Third, future risk.

3.14. Australia has demonstrated its ability to manage negative impacts that result from two particular risks: global commodity price volatility, and demand fluctuations in key export markets. Commodities, especially mineral products, make up an important part of Australia's merchandise export mix. Australia has weathered price volatility through a flexible exchange rate and flexibility in the labour market. Its export mix is also diversifying, with steady growth in services exports during the review period. Services exports accounted for about 21 percent of Australia's exports in 2018/19.

3.15. The report notes that Australia's exports, particularly merchandise exports, remain heavily dependent on Asian markets. Eighty-four percent of Australia's exports went to Asian markets in 2018, up from 80 percent in 2010. Services export destinations are more diversified than merchandise exports, but China is the largest export destination for both Australian merchandise exports and services exports. It is the top purchaser of education and tourism services, which are key components of Australian services exports. We hope that the economic disruptions resulting from the current Covid-19 outbreak, including impacts on travel, will have only a temporary effect.

3.16. Climate change is a growing risk for Australia, as we saw with the catastrophic bushfires at the end of 2019 and beginning of this year. The fires caused significant economic losses. In addition, they jeopardize the important Australian tourism sector, and agricultural production and exports.

3.17. Fourth, issues raised by other Members.

3.18. More than 30 Members have submitted written questions to Australia on a range of issues. I will mention a few that featured more prominently, starting with some perennial favourites. The Secretariat report notes that Australia is a relatively frequent user of anti-dumping measures, and ranks 4th among Members that impose countervailing measures, and a number of Members submitted questions related to trade remedies.

3.19. Members again submitted a number of questions about sanitary and phytosanitary measures, particularly regarding the Biosecurity Act of 2015 and the Imported Food Control Act of 2018.

3.20. In addition, Members continued to express concern about the and excise tax treatment of alcoholic beverages other than wine, as well as discriminatory treatment in state level taxes.

3.21. In previous reviews, Members asked questions about government procurement, and noted that Australia maintained certain tariff peaks and a number of unbound tariffs. Since the last review, Australia has acceded to the Government Procurement Agreement, and its implementation of the Information Technology Agreement led to slight drop in the average applied tariff as some 100 tariff lines were made duty-free.

3.22. For this year's Trade Policy Review, a number of Members had questions about Australia's investment regime, particularly the screening of foreign direct investment. Members were also

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- 9 - interested in Australia's electronic commerce measures, and its efforts to develop its digital economy.

3.23. In concluding my remarks, I would like to highlight the clear linkage between the priorities that Australia described in its Government Report for this review, and its active engagement here at the WTO. Australia is finding ways to assist small and medium-sized enterprises, including reducing regulatory burdens on them. To enhance its services export competitiveness, it will help firms internationalize and reduce domestic regulatory complexity. It is implementing a new strategy to ensure the competitiveness of its digital economy by investing in skills and infrastructure. International trade features in Australia's approach to each of these priorities, which it has backed up through its leadership in the work at the WTO as part of the joint statement initiatives on MSMEs, domestic services regulation, and e-commerce.

3.24. Given its enviable record of , many Members may look toward Australia's experience to inform their own policies. Not every country can be as lucky as Australia to be endowed with vast natural resources and connected to fast-growing markets with high demand for these commodities. But we can all learn from Australia's commitment to openness and international trade. Australia knows that it has benefitted from the WTO, and in return, it invests in the WTO and its pursuit of freer trade through its notifications and transparency, and its active engagement in both the negotiating function and the regular work of WTO bodies.

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4 STATEMENTS BY MEMBERS

REPUBLIC OF KOREA

Opening Remarks

4.1. It is a pleasure to be the first speaker from the floor to extend a warm welcome to the Australian delegation for its eighth Trade Policy Review. In particular, I would like to thank First Assistant Secretary Mr. George Mina for his comprehensive and elaborate presentation.

4.2. My special appreciation also goes to Ambassador Julian Braithwaite for his contribution as a discussant and to the Secretariat for its detailed and informative report.

Trade Policy

4.3. Australia is experiencing twenty-eight years of continuous economic growth with an average annual growth rate of about 2.6% during the review period according to its report. This reflects the strong fundamentals of the Australian economy in the face of many challenges. The sustained growth also attributes to its pursuit of openness and support for the rules-based multilateral trading system.

4.4. In particular, Korea takes note of its efforts to resist protectionism and its strong commitment to the WTO. Since the seventh TPR, Australia has entered into and ratified important WTO agreements such as the Trade Facilitation Agreement, the expanded Information Technology Agreement, as well as the Agreement on Government Procurement. This is expected to be beneficial not only to Australia but to other WTO Members as well.

4.5. Australia is actively participating in various initiatives to strengthen the WTO. Australia has consistently called for the prompt resolution of the impasse in the Appellate Body. Moreover, it is leading the efforts to update the WTO rulebook on fisheries subsidies, e-commerce, service domestic regulations, investment facilitation, and MSMEs, to maintain the relevance of the WTO. The 12th is less than 3 months away and Korea expects high level of contribution by Australia to continue. Korea will collaborate closely with Australia through many formats and on various levels.

Bilateral Relations

4.6. Korea and Australia have maintained a strong bilateral economic relationship with the Korea-Australia Free Trade Agreement at its center. In fact, Korea continues to be a major trading partner to Australia, being Australia's fourth largest trading partner, and third largest export market. Nevertheless, Korea sees room for improvement in our bilateral trade relations, considering that in spite of the increase in Australia's overall trade volume, bilateral trade volume in 2019 fell by 6% compared to 2018.

4.7. On investment, the two countries continued to expand the size of mutual investment in 2018 with Korea's investment bound for Australia increasing by 6.7% and 8.2% vice versa. Going forward, Korea has high hopes that this bilateral investment relationship will keep growing.

Trade Concerns

4.8. Korea views our bilateral economic partnership on a positive trajectory that has great potential.

4.9. In this regard, Korea has posed some questions of interest and concern and is grateful for Australia's timely written response. Please allow me to reiterate some points where we further seek a productive and positive response from Australia.

4.10. First, Korea is interested in finding out more about the amendments made to the Goods and Services Tax (GST) regime, especially on the scope of the term "digital products." Korea deems important that such amendments are compatible with the ongoing discussion regarding the WTO Moratorium on Customs Duties on Electronic Transmission. Korea appreciates the response provided, but requests a more detailed response as to how Australia plans to "ensure that non-resident suppliers are not drawn unnecessarily into the system."

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4.11. Second, Korea takes note of the recent reform introduced to Australia's Country of Origin Labelling system. Korea appreciates the response provided and will, in particular, carefully examine the Regulatory Impact Statement (RIS). Korea expects Australia to continue to prevent unnecessary obstacles to trade while taking into account the stakeholders' concerns.

4.12. Third, Korea has also posed other questions, such as the evaluation criteria for foreign investment, government support towards automotive sector, the Local Jobs First Act regarding specific infrastructure projects, and difficulties in Australia's strict quarantine and customs clearance procedures.

4.13. Korea will closely review all responses provided by Australia and get back to them bilaterally if necessary.

Closing Remarks

4.14. Korea would like to, once again, highlight the Australia's efforts to make the overall trading environment more open, transparent, and efficient. Korea encourages Australia to keep moving in this direction to facilitate trade and investment and improving the overall economic environment in a sustainable manner. In addition, Korea is confident that the efforts put forth by Australia will contribute to a successful MC-12 due in three months' time.

4.15. I would like to conclude by expressing my deep appreciation to the delegation of Australia for its hard work and wishing the delegation every success in this TPR.

CANADA

4.16. I welcome this opportunity to participate in the 14th Trade Policy Review of Australia. Canada and Australia enjoy a strong and multifaceted relationship. Our growing and diversified trade and investment relationship is rooted in a shared commitment to the rules-based international order. This relationship is characterized by co-operation between our private sectors, joint investment initiatives, and our governments working collaboratively on a variety of international issues.

4.17. Canada and Australia are close partners on international trade liberalization, including at the WTO. We welcome Australia’s leadership role in the WTO, including through the Cairns Group, as one of the co-conveners of the WTO JSI E-Commerce negotiations, the services domestic regulation negotiations and as a strong supporter of the Buenos Aires Declaration on Trade and Women’s Economic Empowerment. Australia’s leadership extends to its compliance with WTO notification obligations where we note its excellent track-record, one that can serve as an example to other WTO members. Canada values Australia’s engagement as a member of the Ottawa Group on WTO reform. We look forward to continuing our work with Australia and others to finalize a multi-party interim appeal-arbitration arrangement as outlined in a joint ministerial statement in Davos this past January.

4.18. We congratulate Australia on its accession to the revised Agreement on Government Procurement in May last year and look forward to working together in that agreement to advance work on common objectives.

4.19. I want to congratulate Australia on hosting a successful Cairns Group Ministerial meeting in January 2020 in Davos and for their ongoing leadership in the WTO agriculture negotiations. In Davos, Canada was happy to co-sponsor a proposal with Australia and 17 other Members on a framework for advancing negotiations on agriculture domestic support at MC12. Canada looks forward to working with Australia to take a step forward on agriculture reform at MC12.

4.20. Canada would like to recognize Australia’s efforts to promote trade and environment issues at the WTO. Australia is co-sponsoring a proposal in the Council for Trade in Services in Special Session to informally engage in exploratory discussions on market access in environmental services. In addition, we remain grateful for Australia’s leadership in the Environmental Goods Agreement negotiations as well as our cooperation in helping develop a statement on trade and environmental sustainability in time for MC12. Canada looks forward to continuing to work with Australia on trade and environment issues at the CTE as well as in the context of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

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4.21. Canada values Australia’s work to promote the economic development and participation in trade of Indigenous peoples in the Rotorua Group, which was established on the margins of the World Indigenous Business Forum in 2018. Canada is encouraged by the work advanced to date, and looks forward to continue to engage with Australia and the rest of the Rotorua Group on innovative and concrete activities that will seek to identify and remove the barriers that Indigenous peoples face in accessing the benefits created by international trade and investment.

4.22. As noted in some of our questions in the Trade Policy Review, Canada does have some concerns with respect to several of Australia’s sanitary and phytosanitary measures including with respect to beef and pork imports. In Canada’s view, these measures are not based on international standards, guidelines, or recommendations established by the World Organization for Animal Health, are more trade restrictive than necessary, and negatively impact upon Canadian exports to Australia. Canada calls upon Australia to base its sanitary measures on an assessment of risks taking into account the risk assessment techniques developed by the World Organization for Animal Health.

4.23. A little over one year ago, Canada and Australia embarked on a new journey together as partners in the CPTPP. This is an ambitious and high-standard free trade agreement covering virtually all aspects of trade and investment. The Agreement reinforces our shared commitment to effective, open, inclusive and rules-based trade. The CPTPP strengthens and diversifies Canada’s and Australia’s trade and investment positions in our respective markets.

4.24. Through the CPTPP, we are also pleased to work with Australia to address key challenges and barriers of doing business in the global marketplace that disproportionately affect SMEs, and to ensure that SMEs have access to the information they need to explore and navigate the CPTPP markets. Canada looks forward to our continued economic partnership with Australia as both countries strive to ensure that our exporters, importers, investors and service providers take advantage of the opportunities created by the Agreement.

4.25. To conclude, please let me express my gratitude for Australia’s commitment to this Organization specifically, and to rules-based trade generally. Canada thanks Australia for its invaluable contribution and looks forward to working with Australia to further protect and promote the multilateral rules-based trading system.

ISRAEL

4.26. Israel would like to thank you, the discussant Ambassador Julian Braithwaite (United Kingdom), Australia and the Secretariat for the detailed reports. Israel also welcomes Mr. George Mina from Canberra, as the Head of Delegation. Israel and Australia have had close ties that extend beyond economic and trade relations since the birth of Israel as a nation State.

4.27. Before delving into the TPR, Israel would like to share our deep sympathy with the Australian people and its Government as they faced multiple wildfires in recent months. The courage and strength displayed during these times and the subsequent rebuilding are a testament to famous Australian spirit.

4.28. Australia is an important economically for Israel and not only due to our strong bilateral ties, which in economic terms has seen significantly increased engagement across a range of sectors, including innovation. In fact, it is worth noting that Israel's President, Mr. Reuven Rivlin, just concluded not more than 3 weeks ago a very successful official visit to Australia.

4.29. Since the last review, Australia established one of its five innovation Landing Pads in Tel Aviv in 2016 as part of the National Innovation and Science Agenda. This was further expanded in February 2017, with a bilateral Technological Innovation Cooperation Agreement. The Agreement includes a bilateral funding programme to enable cooperation between Australian and Israeli companies.

4.30. In broader economic matters, there is clear expanded economic engagement –underpinned by the conclusion of several bilateral agreements. The latest one being a Double Taxation Agreement in March 2019, an Air Services Agreement in February 2017, and a Working Holiday Agreement in June 2016, just to name a few.

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4.31. Australia and Israel have a healthy commercial relationship, which Israel would be happy to see blossom further. In 2018, two-way goods and services trade amounted to nearly USD 1.3 billion. In 2018, Australian investment in Israel totaled USD 976 million and Israeli investment in Australia was USD 310 million, mostly centered in the innovation sector. Some of the major merchandise trade includes live animals, plastic products, pearls and gems, beef, and aluminum. Also worth noting that as of July 2019, 20 Israeli companies were listed on the Australian (ASX), making Israel the third largest source of foreign company listings. Australia has long been a beacon of global economic growth, going for nearly 30 years of uninterrupted growth. Its solid institutions weathered the global financial crisis during the last decade. Australia has tackled some of the recent slowing down in private consumption with economic stimuli in the form of lower tax rates, higher public consumption, and increased outlays on research and development.

4.32. In trade, since the last review, Australia has been active in the RTA front, with the entry into force of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and free trade agreements (FTAs) with Japan and China.

4.33. In the WTO, Australia participates actively in initiatives and negotiations, many of which we have been working closely on. An example of this, is the Joint Statement Initiative in e-commerce, where Israel has had close dialogue with Australia and where Australia has taken a leading role.

4.34. During this exercise, Israel submitted questions to Australia, and we look forward to reviewing the replies in due course. Agriculture was the main area covered in these questions, namely regarding the allocation of tariff quotas to exporters as well as the composition of Green Box support.

4.35. Israel appreciates Australia's constructive role across the ongoing WTO negotiations, and we look forward to Australia's contribution towards a successful MC12.

4.36. Israel would also like to commend the positive leadership Ambassador Frances Lisson has displayed during her time in Geneva, and we look forward to continuing our close working relationship with her and her delegation.

4.37. Lastly, we wish the Australia a very successful TPR, and best wishes in the year to come to all of you.

SWITZERLAND

4.38. Like previous speakers, I would like to extend a very warm welcome to Mr. George Mina of the delegation of Australia and thank the discussant for his astute observations on a country, which is not only a true friend of the system but an impressively active Member in virtually all fora of this Organization.

4.39. At first glance, Australia and Switzerland could not be more different. We are rather small and land-locked. Australia – located on the other side of the globe – is a continent surrounded by the sea. But when it comes to the economy and trade, we have a lot in common.

4.40. We are both closely integrated into our respective regional supply chains. We have both made openness a linchpin of our economic policy. My delegation also learned from the excellent report elaborated by the Secretariat that Australia has over a long period of time maintained a stable and at the same time flexible economic framework making the country resilient to adverse external shocks.

4.41. Hence the economic fundamentals are sound and have been for quite some time. Like Switzerland, Australia places great emphasis on a judicious fiscal policy, striving to balance the books in order to have the necessary means available when conditions worsen.

4.42. And the situation has become more difficult in the face of escalating trade disputes and volatile commodity prices.

4.43. The traditional current account deficit might increase as important exports dwindle and terms of trade deteriorate. It is therefore reassuring to observe that Australia's external debt in large part is denominated in its own currency.

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4.44. Looking at the trade statistics, one gets the impression that the Australian economy has perhaps become too dependent on the export of minerals and fossil fuels. The manufacturing sector is surprisingly small even for a modern economy with its innate tendency to see its services sector grow at the expense of industry.

4.45. We note that Australia intends to diversify its exports markets by becoming a signatory to the Regional Comprehensive Economic Partnership and by concluding an FTA with the EU and later with the UK. Such a diversification would not only add to the country's resilience but in all likelihood also create incentives for the manufacturing base to be revived.

4.46. It did not escape our attention that Australia's simple average bound tariff tends to be relatively high for an open and highly developed economy. Some tariff lines are even unbound. It seems to us that this situation can create uncertainty and is a deviation – albeit a minor one – from an overall framework known for its stability and predictability.

4.47. Swiss companies dealing with Australia praise the economy's high quality regulations and a sophisticated legal system. Public tendering, however, could be made a bit more transparent.

4.48. Moreover, generic drugs are sometimes put on the market without having notified the original producer from the beginning. And the protection of test data expires after 5 years already.

4.49. Imported dairy products can be held up at the border on account of excessively strict SPS controls. And the Australian TRQ for foreign cheese seems rather modest given the size of the country.

4.50. The OECD has pointed out that Australia's CO2 emissions remain high. Australia is a party to the commitment to remove inefficient fossil fuel subsidies. Any measures undertaken by the Australian authorities to meet that essential objective or to combat climate change in general would not go unnoticed by the international community.

4.51. We thank Australia for having provided comprehensive replies to all the questions submitted in writing.

4.52. In concluding, we wish the Australian delegation a successful outcome of this Trade Policy Review.

COSTA RICA

4.53. On behalf of the Government of Costa Rica, I would like to warmly welcome the delegation of Australia, headed by Mr George Mina of the Department of Foreign Affairs and Trade, and the Australian Permanent Mission to the WTO, led by Ambassador Lisson. We would like to thank them for their report and this morning's presentation. We would also like to thank the discussant, Ambassador Braithwaite of the United Kingdom, for his valuable remarks, and the WTO Secretariat for its report and for its work, which has been as valuable as ever.

4.54. Costa Rica and Australia have historically engaged in close multilateral collaboration, especially within the context of the WTO. Our relationship involves a common vision of the importance of international trade and investment in driving forward development through job creation and prosperity. As a founding Member of the WTO, Australia has played a key role in shaping the system and continues to play a leading role in negotiations to reform the WTO.

4.55. Australia has always promoted agricultural trade reform and its leadership in its role as coordinator of the Cairns Group has been evidence-based and ambitious. More recently, this leadership drove the launch of an innovative proposal for a negotiating framework for domestic support. Costa Rica fully supports Australia's work in this area for the Twelfth Ministerial Conference (MC12) and we invite other Members to join us in forging new areas of consensus on agriculture.

4.56. It is also important to highlight how Australia has played an active role in the WTO reform process by supporting proposals to ensure that the Appellate Body continues to operate and becomes more transparent. Australia also works with Costa Rica on joint initiatives related to electronic commerce, domestic regulation, small and medium-sized enterprises, and investment.

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4.57. Domestically, Australia has enjoyed sound macroeconomic management since its last trade policy review. According to the report by the Secretariat, the country has shown growth rates of almost 2% per year in recent years, with a dynamic labour market, low and a fiscal environment that has allowed surpluses to be directed towards infrastructure.

4.58. In the area of trade, the Secretariat's report highlights the simple tariff structure, with low tariff rates on the back of unilateral reductions in recent years. Australia's relationship with its trading partners is highly dynamic thanks to successful bilateral and regional trade agreements and systems of unilateral preferences. However, 5% of non-agricultural tariff lines remain unbound, indicating a certain amount of room for improvement.

4.59. Australia also faces significant long-term challenges, including its high concentration of mineral exports and its dependence on Asian markets – understandable, given its geographical location. We therefore welcome the Australian government's efforts to implement the Trade Facilitation Agreement, simplify and streamline the regulatory regime, especially for small businesses, and diversify the economy through pro-innovation policies.

4.60. High vulnerability to climate change and natural disasters – a concern for both Australia and Costa Rica – needs to be addressed. This situation should encourage us to redouble our efforts towards more sustainable trade in the WTO.

4.61. Costa Rica also shares some of Australia's concerns for greater transparency and certainty in the application of sanitary and phytosanitary measures in trade in agricultural products. We are working actively with Australia to address those concerns in the various WTO committees. We have identified these as priority areas for Costa Rican trade policy and are very involved in the discussions currently under way at the multilateral level.

4.62. Costa Rica is particularly interested in Australia's national development policies for the tourism sector. We will closely follow its implementation of climate adaptation policies, especially those addressing access to water and drought management.

4.63. Under this review, Costa Rica submitted questions on tax incentives, trade facilitation, customs, investment policies, export programmes, government procurement, intellectual property, trade in services and digitization. We appreciate the Australian team's hard work in answering these questions, which will be carefully examined by our capital-based authorities.

4.64. Lastly, I would like to thank Australia once again for its report and for today's presentation. We wish the country every success in this eighth trade policy review.

EUROPEAN UNION

4.65. The European Union would like to express its appreciation to the delegation of Australia, led by Mr George Mina (First Assistant Secretary, Office of Trade Negotiations), travelling all the way from Australia for this 8th TPR. The EU would also like to thank the WTO Secretariat and the Government of Australia for their respective reports and the discussant, Ambassador Julian Braithwaite, for his remarks. Due to the emergency situation on Coronavirus this meeting takes place in a virtual manner, but we encourage all Members to make the best of it even under these exceptional circumstances.

4.66. I would like to start by applauding Australia’s record of 28 years of continuous economic growth, which is the result of successful economic policies combined with the fostering of an outward-looking economy. Like everyone here, the EU still has in mind the dramatic bushfires that have been exceptional in terms of intensity, duration and impact on the populations concerned. The EU showed full solidarity with those affected and offered its assistance. The fact that the fires had only a limited impact on the Australian economy should not hide that climate change is likely to be a much more challenging issue for Australia’s drought-affected areas over the longer run.

4.67. The EU is ready to increase cooperation with Australia on climate change. The EU-Australia Framework Agreement that we signed in 2017 contains sustainable development provisions, including on crucial climate topics. The EU also notes that Australia is currently investing in various renewable energy projects, which we strongly support. In our current bilateral FTA negotiations, we

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- 16 - are also attaching great importance to the sustainable development chapter, as colleagues here are well aware since we had our own TPR last month.

4.68. During the review period, the Australian economy continued to internationalize. The Australian Government has sought to strengthen the overall performance of the economy through a range of reforms and regulatory changes. These include increasing infrastructure investment, reforming the regulatory environment and a plan for the development of the digital economy. The EU welcomes these sound macroeconomic policies and structural reforms. As acknowledged in the Secretariat report, trade policy in Australia is founded on a broad understanding that international trade and investment are critical to the economy, providing jobs and prosperity. The EU and Australia are like- minded on trade policy in this regard, providing for a sound basis for our relationship.

4.69. The EU and Australia are long-standing partners with increasingly important commercial ties. The EU is currently Australia’s third largest trading partner (after UK’s withdrawal from the EU) and the second biggest investor in terms of Foreign Direct Investment. In 2018, the value of total trade between the EU and Australia amounted to almost €48 billion. The EU represented 12.8% of Australia's goods and services trade.

4.70. I also wish to convey the EU's appreciation for Australia's significant contribution to the multilateral trading system. The EU and Australia share the deep concerns about the crisis in the WTO and converge on the need to reform the Organization to address the root causes of today’s trade tensions and fill the gaps in the rule book. The EU and Australia have an excellent cooperation on the various ongoing plurilateral initiatives and we are working together in the Ottawa Group and towards the Multi-Party Interim Arrangement. We would also like to congratulate Australia for its accession to the WTO Government Procurement Agreement on 5 May 2019.

4.71. Despite of Australia's positive record, I would like to refer to some of issues of concern in the EU questions submitted for this TPR that we find particularly important.

4.72. First, the EU has concerns in the area of taxation. Several EU Member States do not yet benefit from Double Taxation Agreements with Australia. The absence of such agreements limits trade opportunities and would also limit the benefits of the Free Trade Agreement that we are currently negotiating, including for the EU Member States affected.

4.73. The EU also continues to be concerned about the Australian Luxury Car Tax, which puts the EU car exporters at a clear disadvantage. The proliferation of similar taxes at the state level in Australia adds to these concerns. Furthermore, the lack of a level playing field resulting from the application of the Equalization Tax remains a matter of concern. We also hope that Australia will soon comply with recommendations from the OECD forum on harmful tax practices and reform its Offshore Banking Units fiscal regime.

4.74. In the area of investment, the Australian Government applies wide grounds for the screening of foreign direct investment going beyond “national security”. This screening and its thresholds continue to put EU investors at a disadvantage in comparison to investors of several other third countries.

4.75. To conclude on a positive note, the EU appreciates the transparency of Australia's trade policies and welcomes that Australia chose the alternative timeline for its review, which allowed us to get their replies in a timely manner in advance of the meeting. If we have any comments on the replies provided, we may express them on Friday. We wish Australia an excellent Review.

HONG KONG, CHINA

4.76. I would like to extend a warm welcome to the Australian delegation led by Mr George Mina, First Assistant Secretary of its Trade Negotiations Office. I would also like to thank the discussant, Ambassador Braithwaite of the UK, for sharing his insights with us.

4.77. Hong Kong, China (HKC) has a close trade and economic relationship with Australia, which was our 7th largest trading partner in services in 2017, while the merchandise trade between HKC and Australia grew steadily at 1.5% a year during 2014 to 2018.

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4.78. Our economic ties were further strengthened when the Free Trade Agreement and Investment Agreement between HKC and Australia entered into force in January this year. The two agreements have provided a new platform for traders and investors of the two economies to explore untapped business opportunities and expand their businesses in the region.

4.79. Australia is an advocate of open international economy. We highly appreciate Australia’s strong commitment to the rules-based system as demonstrated by its active participation in WTO negotiations and discussions, in particular in the Joint Statement Initiatives on electronic commerce and services domestic regulation. We also note Australia’s support to the Joint Statement Initiative on Investment Facilitation for Development. HKC looks forward to working closely with Australia and other like-minded Members to achieve concrete outcomes on these important issues at MC12.

4.80. Now let me turn to a few specific areas in Australia’s trade policies. On services, both HKC and Australia pursue liberalization of trade in services. We would encourage Australia to continue its efforts in liberalizing the services markets to promote foreign investment.

4.81. On trade facilitation, we would commend Australia’s continued effort in simplifying customs procedures. Meanwhile, we are pleased to note that Australia has fully implemented its authorized economic operator programme, namely, the Australian Trusted Trader (ATT), under which accredited traders can enjoy priority treatment at borders. ATT businesses also have access to trade facilitation benefits in other places, including Hong Kong, which have concluded Mutual Recognition Arrangements with Australia.

4.82. On tariffs, we are glad to learn that the average rate of applied MFN duties on non-agricultural products for Australia had declined from 3.3% in 2014 to 2.7% in 2019, as a result of unilateral tariff reductions and implementation of the expanded Information Technology Agreement. Nevertheless, notwithstanding Australia’s low or zero applied tariffs at present, the comparatively high bound rates remain a source of uncertainties to some businesses. We encourage Australia to consider narrowing the gap between its existing applied rates and bound rates so as to enhance predictability of the trading environment.

4.83. Lastly, we congratulate Australia on the entry into force of the Agreement on Government Procurement in May last year and would look forward to working with Australia closely in the Committee on Government Procurement.

4.84. HKC would continue to foster our economic and trade cooperation with Australia, and collaborate further in promoting and defending the rules-based multilateral trading system. We thank Australia for its replies to our written questions and wish it a successful Trade Policy Review.

THE SEPARATE CUSTOMS TERRITORY OF , PENGHU, KINMEN AND MATSU

4.85. I would like to warmly welcome the delegation of Australia headed by Mr George Mina, First Assistant Secretary in the Office of Trade Negotiations, Department of Foreign Affairs and Trade; the rest of the delegation, including H.E. Ambassador Frances Lisson, Permanent Representative of Australia to the WTO; other colleagues from the Mission in Geneva; and the discussant, H.E. Ambassador Julian Braithwaite (United Kingdom).

4.86. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is very pleased to note that the Australian economy has facilitated nearly 30 years of remarkably uninterrupted growth.

4.87. Australia is a leader in the trading community. Australia plays an active role in the multilateral trading system, where agreements have the potential to generate the greatest overall benefits. For example, Australia became the 48th member of plurilateral WTO Agreement on Government Procurement (GPA) in 2019 and agreed to expand coverage to 201 more products in the Information Technology Agreement (ITA) in 2015. Furthermore, Australia, together with some members, also led the launch of negotiations on trade-related aspects of electronic commerce and service domestic regulation negotiations. All these demonstrated Australia's support for the multilateral trading system and strong commitment to the rule-based multilateral trading system.

4.88. Reflecting its deep commitment to trade liberalization, Australia has played a leading role in regional trade arrangements. Australia was a founding member of the Asia-Pacific Economic

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Cooperation (APEC) forum in 1989 and one of the founding members of the comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). We value Australia as an important partner and trusted friend in the Asia-Pacific region in pursuit of our shared commitment to free trade.

4.89. Bilaterally, according to our statistics, Australia is now our 11th largest trading partner. The total value of two-way trade registered between Australia and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu was close to USD 13.4 billion in 2019. We believe that both our economies have benefited from an open international trading environment.

4.90. Despite Australia's excellent record, there are some areas where we would see room for further improvements. This leads me to some issues raised by my Mission in the questions submitted ahead of this TPR. One of focused issues is trade remedy. Australia is an active user of anti-dumping and countervailing measures by international comparison. At the end of 2018, 83 anti-dumping measures were in force, which led Australia became the 6th largest user of anti-dumping measures among WTO Members.

4.91. In addition, we look forward to more detail regarding CPTPP, including the reasons for the increase in the threshold for acquisitions in the CPTPP and the difference between the actual impact of the CPTPP and the Australian assessment. We also look forward to more information regarding the effectiveness and challenges encountered in the implementation of 2015 and 2018 Copyright Amendment (Online Infringement).

4.92. We thank Australia for their written answers, which we shall study very carefully and may wish to come back to with further questions at a later stage.

4.93. To conclude on a more positive note which Australia more than deserves, we highly appreciate the transparency of Australia's trade policies and wishes Australia a successful review. I am confident that all suggestions and feedback provided by Members during this exercise will be well received.

BRAZIL

4.94. We would like to extend a warm welcome to the Australian delegation, headed by George Mina on the occasion of the eighth Trade Policy Review of Australia. We thank the Australian Government and the WTO Secretariat for their reports, as well as de discussant, Ambassador Julian Braithwaite, for his insightful comments. Finally, we would also like to extend our thanks Ambassador Frances Lisson and her team for the key role we know they played in the preparations for this Review.

4.95. Australia continued to register solid economic performance, not only in the last review period, but over the last three decades. The Australian economy was able to adjust to all of the different cycles that we have been through and managed to keep uninterrupted growth of the last thirty years - a feat that few other were able to accomplish.

4.96. As indicated by the Australian Government, part of this success can be attributed to the pursuit of openness and support for the rules-based global trading system. This is a value which Brazil shares. We are also strongly committed to the WTO and, just as Australia, we believe that meaningful reforms are needed to ensure that the Organization - and multilateralism - remain alive.

4.97. Turning to our bilateral relations, after reaching a peak of USD 2.4 billion in 2008, trade decreased to USD 1.4 billion in 2019. Although we there has been an increase over the last few years form a low of 1.2 billion, there clearly is room for improvement. Australia is the 15th largest investor in Brazil with investments reaching USD 5.8 billion in 2017, mostly in the oil and gas sector. As a destination of Brazilian FDI, Australia has attracted a diverse group of companies that range from food processing to mining.

4.98. Brazil and Australia are both large economies with a strong agricultural sector. We share the same objective of supporting an open, market oriented, multilateral trading system and achieving meaningful results in the agricultural negotiations here at the WTO. We commend Australia's long-standing leadership in the Cairns Group. We share Australia assessment that "agriculture

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- 19 - remains the most distorted sector of international trade" and we fully agree that we need to find ways to promote progressive and substantial reductions in trade-distorting domestic support.

4.99. We have submitted questions and we thank Australia for its replies. We will have a few more questions that we will be submitting today. We would appreciate if Australia could also provide answers to those.

4.100. Let me conclude by wishing the Australian delegation a very successful trade Policy Review.

COLOMBIA

4.101. First of all, we would like to welcome the distinguished delegation of Australia for this review, led by George Mina from the Office of Trade Negotiations, and also Ambassador Lisson and her team in Geneva. We would like to thank the Secretariat for its comprehensive report and Ambassador Braithwaite (United Kingdom) for his pertinent contributions as the discussant.

4.102. The Australian economy has stood out for its resilience in recent decades, with around 30 years of uninterrupted growth, thanks in part to a tight monetary and exchange rate policy and a fiscal policy designed to support the government's economic objectives by increasing expenditure on infrastructure, education, healthcare and aged care.

4.103. In foreign trade, Australia's export basket is fairly highly concentrated, with mineral products accounting for around 60% of the total. The main destination market is China (34% share). These two points are among just a few areas covered by the review in which there is room for improvements to be made to try to create a more diversified export basket of products. The picture is different for imports, which are more diversified in terms of both the products imported and the countries of origin. The main import category, machinery and electrical equipment, makes up only 25.3% of the total, and is followed by transport equipment (14.7%.) and mineral products (14%). China is the main supplier (24%), followed by EU-28 (18.3%) and the United States (11.1%).

4.104. Agriculture makes a significant contribution to the economy, and represents around 14% of merchandise exports. Government support is limited, targeting risk management, environmental conservation and the provision of general services. There are no market price support subsidies. Impressively, agricultural holdings occupy and manage just over 48% of the total landmass of what is one of the world's largest countries. Furthermore, thanks to a strongly export-oriented agricultural sector, with 77% of production sent overseas, Australia ranks first for sheep and goat meat exports, second for and rapeseed exports, third for beef and sugar exports, and fifth for cotton exports. This is why we also wish to highlight Australia's leadership in respect of agricultural policy performance, and in WTO negotiations as part of the Cairns Group.

4.105. Turning to bilateral trade relations, since 2014, Colombia has recorded a positive trade balance, with exports of non-mining and non-energy goods – mainly coffee and flowers – making up 99% of total exports. Imports are diversified, the main products being electrical appliances, machinery for food and beverages and drilling machinery. Trade in both directions has the potential to grow: Australia was only Colombia's 53rd largest export destination in 2018, accounting for 0.13% of Colombia's foreign sales, and was Colombia's 56th largest supplier of goods, accounting for 0.10% of Colombian purchases from around the world. Meanwhile, we are negotiating an agreement between the Pacific Alliance (Chile, Colombia, Mexico and Peru) and Australia for the group to widen its area of integration by establishing the free movement of goods, services, capital and persons between the two parties.

4.106. Lastly, allow us to highlight the contribution that Australia has made to strengthening the multilateral trading system. The country is a leader and proponent in various negotiations, including in agriculture, fisheries and e-commerce, and we therefore encourage it to maintain its commitment in order to achieve meaningful outcomes at the next Ministerial Conference.

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ARGENTINA

4.107. We would like to join other Members in welcoming the Australian delegation, headed by Mr George Mina, the First Assistant Secretary of the Australian Office of Trade Negotiations.

4.108. We appreciate the reports drafted by Australia and the Secretariat, which have brought us up to speed on that Member's trade policies and practices. We also appreciate the presentation made by the discussant, His Excellency Ambassador Braithwaite of the United Kingdom.

4.109. Argentina would like to begin with a message of solidarity and support to the Australian Government as it deals with the bushfires that have affected the country in recent months. We know that several regions have been hit hard by these fires.

4.110. Argentina would like to highlight the sustained economic growth that Australia has achieved in recent years, underpinned by a diversified economy that successfully weathered the last global financial crisis. Australia's single window is an important trade facilitation tool. We applaud the efforts that Australia has made through its regulatory system to reduce administrative burdens for micro, small and medium-sized enterprises (MSMEs) and to encourage the expansion of its digital sector.

4.111. Argentina maintains strong political ties and trade links with Australia. We maintain close ties as regards the peaceful use of nuclear energy, with the Argentinian state enterprise INVAP having supplied a reactor for nuclear research. We also believe there is potential in trade and investment, agribusiness, energy, mining and high technology. Moreover, we are certain that the capacities of both countries as exporters of food and minerals could be strengthened. The bilateral consultations meeting held in Buenos Aires in 2017 and high-level visits are platforms for bilateral dialogue that we hope to strengthen over the coming years.

4.112. Strong bilateral ties also exist through technical cooperation in agriculture and continuous high-level discussions in the agricultural sector. Science and technology are other areas in which we are working ever more closely, and we hope to further develop these links.

4.113. The Argentine Republic wishes to highlight Australia's active participation in the negotiations on fisheries subsidies and in the various joint initiatives launched during the 11th Ministerial Conference, especially the initiative on e-commerce, of which it is the coordinator. Argentina and Australia jointly participate in, inter alia, the Cairns Group of agricultural exporting Members. Our country values the intensive collaboration that is taking place between our respective permanent missions in Geneva to achieve substantive results on domestic support for agriculture at the Twelfth Ministerial Conference (MC12) in Nur-Sultan.

4.114. Regarding agriculture, we welcome the fact that support for farmers is limited and that Australia does not resort to price support measures. Australia's current programmes focus only on specific issues such as risk management, environmental conservation and the provision of general services.

4.115. It should be noted that Australia is one of the few Members of this Organization whose bound tariffs for agricultural products are significantly lower than their bound tariffs for non-agricultural products. This reflects efforts to achieve a free international market for food, which we support.

4.116. We are concerned, nonetheless, about the implementation of certain sanitary and phytosanitary protection measures that might occasionally harm trade with other Members, affecting agricultural products in particular.

4.117. In this trade policy review, Argentina has submitted questions to Australia on its innovation policies, its measures to improve access for agricultural products to the Australian market and its policies on agro-industrial innovation. The answers provided will be examined in detail by our authorities in Buenos Aires.

4.118. Argentina sees Australia as a Member that is committed to the multilateral trading system. In addition to its good track record of compliance with its transparency obligations, Australia has ratified the Trade Facilitation Agreement (TFA) since its last trade policy review, fully implementing its commitments across all categories. Australia has also been involved in concluding a number of

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- 21 - new regional trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), as well as free trade agreements with Japan and China.

4.119. Finally, we would like to reiterate the importance of this exercise in transparency as a whole and wish the Australian authorities a successful conclusion to this, their eighth trade policy review.

UNITED STATES

4.120. We would like to warmly welcome Mr. George Mina and the rest of the Australian delegation, and compliment the Government's thorough report for its eighth Trade Policy Review. We appreciate Ambassador Frances Lisson's ongoing contributions to this institution and for serving as the discussant for the United States' most recent TPR in 2018. We thank the Secretariat, too, for its excellent report on the recent developments in Australia's economic and trade policy. We also appreciate Australia's written responses to our detailed questions and comments, which will enhance our understanding of Australian trade policy.

4.121. At the outset I want to convey the support and sympathies of the United States to our Australian friends and colleagues as they continue to deal with the impact of the tragic bushfires that swept the nation. The United States stands firm with Australia, with unwavering friendship and as a key economic partner.

4.122. The United States commends Australia's sound macroeconomic policies, which have contributed to its strong economic performance over the past decade. The commercial ties between the United States and Australia are strong and continue to grow. This year marks the 15th anniversary of the U.S.-Australia Free Trade Agreement (FTA), which entered into force in 2005. Our bilateral FTA has contributed to the growth in trade and investment between our two countries. We are pleased to highlight that our total two-way trade in goods and services has more than doubled since 2004, the year before the FTA entered into force, and our Agreement continues to foster deeper cooperation on other economic issues where we share common goals. We are further pleased to note that implementation of the Agreement continues to progress smoothly and that both sides remain committed to further enhancing trade ties.

4.123. We appreciate Australia's consistent leadership, resolve, and hard work in pursuing an ambitious outcome in the WTO fisheries subsidies negotiations. We also acknowledge the leadership role that Australia plays in WTO institutional reform efforts, including efforts to improve WTO Member compliance with their notification obligations. Notably, Australia (along with the United States) is a co-sponsor of a draft General Council Decision, Procedures to Enhance Transparency and Strengthen Notification Requests under WTO Agreements. We also appreciate Australia's leadership role in the Joint Statement Initiative on Digital Trade and we look forward to continuing our work toward an agreement that establishes high-standard commitments on digital trade.

4.124. We also welcomed Australia's March 2019 announcement that Australia would not proceed with a unilateral digital services tax and instead focus its efforts on engaging in a multilateral process, including through the OECD.

4.125. Despite Australia's exceptionally strong record, there are some areas where we see room for further improvements. We hope this Trade Policy Review will help draw Australia's attention to these areas where it can further liberalize its regime and enhance its competitiveness.

4.126. As a leading trader of agricultural products, we urge the Australian government to ensure that its sanitary and phytosanitary (SPS) regulations and requirements are consistent with the WTO SPS Agreement.

4.127. The Secretariat notes in its report that Australia has made several changes to its biosecurity system in order to modernize the regulatory framework and facilitate trade while managing risks from imported products. We welcome changes that reduce duplication, enable more efficient risk assessments, and make systemic improvements to facilitate trade at the border, especially since recent changes in Australia's clearance process for certain imported agricultural products may disrupt and hinder imports. We look forward to continuing work with Australia to clarify the recent changes to Australia's SPS system, especially as Australia reforms its biosecurity system in a trade- facilitative manner for all trading partners.

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4.128. We also note that full access to the Australian market for U.S. beef, pork, and poultry remains a priority for the United States. During Australia's last TPR, the Secretariat's report noted concerns by some countries that Australia's process of aligning its import policy on BSE with the World Animal Health Organization (OIE) standards has delayed the finalization of risk assessments for beef. While not mentioned in this report, we urge Australia to take into account existing international standards in the development of its regulations and import requirements for beef and other products.

4.129. With regard to intellectual property (IP), we applaud Australia's acceptance of the Protocol amending the TRIPS Agreement during the review period and continued commitment to strengthening IP protection and enforcement. During this TPR, we are keen to learn more about Australia's IP protections for pharmaceuticals and implementation of recent amendments to its Copyright Act, as well as any further copyright reform measures.

4.130. Australia is one of the most dynamic and open economies in the world. As one of Australia's closest friends and allies, we share a strong common interest in its continued growth and prosperity. We look forward to continuing to work closely with Australia in the WTO as well as in bilateral and regional forums.

JAPAN

Introduction

4.131. First of all, I would like to express my sincere appreciation for the dedicated efforts made by the Australian team headed by Mr. George Mina, First Assistant Secretary, Office of Trade Negotiations, Department of Foreign Affairs and Trade and Ambassador Frances Lisson, as well as the WTO Secretariat in preparing the comprehensive reports for today’s review.

4.132. Last year marked the 30th anniversary of the TPR. Japan acknowledges and greatly appreciates the historical contribution of Australia to the TPR process as one of the original three Members of the TPR, and it gives us great pleasure to join this 8th TPR of Australia.

4.133. Also, Japan appreciates that Australia has contributed to upholding and strengthening the rule-based multilateral trading system through its active engagements in the WTO. In particular, Australia is leading several ongoing negotiations in the WTO, such as the services DR negotiation as well as the e-commerce negotiation that it has been co-convening with Japan and Singapore. We trust that Australia will make further contributions to our ongoing activities in the WTO in order to achieve positive outcomes at MC12 in June.

Trade Policy

4.134. Despite the recent decline in its GDP growth, Australia has maintained the resilience of its economy for many years. This can be attributed to Australia’s open trade and investment regime to guard against protectionism. For example, Australia’s average applied MFN tariff rate generally sits at the low level of 2.5%, and it is even lower for agricultural products than for other goods. Also, Australia provides its important agricultural sector with very limited support. Japan highly appreciates Australian policies such as these, and like other Asian countries, has developed a good strategic partnership with Australia. We have concluded our bilateral FTA, which entered into force in 2015, as well as the CPTPP, which entered into force in 2018, to further strengthen our mutual economic relationship. Consequently, for Japan, Australia was the No. 3 country for imports and the No. 9 country for exports in 2018.

4.135. In addition, we welcome Australia’s participation in the Trade Facilitation Agreement (TFA), with full implementation of commitments across all categories, as well as in the expansion of the Information Technology Agreement (ITA) and, recently, the Government Procurement Agreement (GPA). We are also really impressed by Australia’s remarkable record regarding notifications, which represents strong commitment to enhancing the transparency of global trade.

Areas to be improved

4.136. We believe there are, however, areas that Australia can improve on. In particular, Australia has introduced several new measures in the areas of SPS and TBT. We understand the importance

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- 23 - of food safety and human health. However, we strongly believe that measures related to SPS and TBT will not constitute disguised restrictions on trade.

4.137. In addition, Australia has introduced a number of changes to the Goods and Services Tax (GST) regime. In particular, the regime has been extended to capture cross-border trade in digital products and services. We understand that the regime is to ensure a level playing field in the digital economy. We hope that this regime will be operated in a way which will not create unnecessary barriers for trade of digital products and services and therefore not impair the significant benefits of digitalization.

4.138. Furthermore, we see great potential in Australia’s services industry considering the fact that it accounts for more than 72% of its GDP. By further facilitating its openness and fairness of the market, Australia can accordingly enhance its competitiveness of the services industry, which lead to continuous decreasing of the deficit in trade in services. In particular, we recognize that tourism is one of the promising areas in Australia’s services industry. I myself would love to visit the country to enjoy its beautiful cities, landscapes and oceans.

Conclusion

4.139. I would like to conclude my statement by expressing once again our appreciation for Australia’s efforts to promote the multilateral trading system.

4.140. We wish Australia a successful and productive TPR, and look forward to hearing of further progress regarding its trade and investment policies at its next TPR.

DOMINICAN REPUBLIC

4.141. First of all, we would like to welcome the delegation of Australia, led by its head of delegation, Mr George Mina, as well as the Permanent Representative of Australia to the WTO, Her Excellency Ambassador Frances Lisson, and other Members who are present today.

4.142. The Dominican Republic shares a close friendship and close trade links with Australia. Total trade between our countries has been growing in recent years. Our main exports to Australia are medical devices, electrical equipment and textiles; our main imports from Australia are animal and vegetable oils, meat, steel, paper, wine and medicines.

4.143. It is important to note that our country is now Australia's largest Caribbean island trading partner, with trade totalling USD 47.24 million in 2019, even though more than 17,000 km separate our two countries.

4.144. At this eighth trade policy review, we would like to congratulate Australia on its strong economic foundations, underpinned by an open and transparent economy that has enabled the country to experience significant, almost uninterrupted growth for the past 30 years.

4.145. Turning to the Australian economy, we note that, in the face of global economic challenges, GDP grew by 1.9% in the 2018-19 period. While this figure is in line with the growth levels recorded by advanced economies over the same period, it is below the average annual growth of 2.6% that Australia reported between 2012-13 and 2017-18.

4.146. Australia has a diversified economy, with flexible labour and goods markets, solid institutions, prudent macroeconomic policies and a flexible exchange rate system. It also benefits from abundant natural resources. Thanks to these factors, net internal flows of FDI to Australia for the period covered by this review averaged AUD 60 billion a year. Mining and quarrying received the largest share, but other dynamic sectors included manufacturing, financial services and insurance, and real estate.

4.147. Australia is a major investor abroad, with invested capital of more than AUD 695 billion in 2018.

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4.148. On trade policy, the Dominican Republic welcomes Australia's ratification of the Trade Facilitation Agreement in 2015 and its adoption of all the commitments under the Agreement since it came into force in February 2017. Australia provided timely notification of its contact points for the exchange of information, measures on the use of customs brokers, links to relevant legislation and procedures, and information on its single window for foreign trade.

4.149. Our country is carefully observing the development of the services sector in Australia, which now accounts for 72% of GDP and includes key sectors such as real estate, construction, finance and insurance, trade, and professional services. Similarly, Australia has become a leading global exporter of education, tourism, medical, technical, scientific and other services. Total trade in services as a share of the Australian economy increased from 8.9% to 9.8% during the period under review.

4.150. The Dominican Republic notes Australia's efforts, as one of the original contracting parties of the General Agreement on Tariffs and Trade and a founding member of the WTO, to promote a rules-based international trade regime in which disputes are settled in an orderly manner. At the same time, however, we would like to express our concern about certain measures adopted by Australia that restrict trade, and specifically those related to plain packaging for tobacco products.

4.151. Lastly, we would like to thank Australia for its timely response to the Dominican Republic's questions on various points contained in the report. We also acknowledge the Australian authorities' efforts and would like to take this opportunity to congratulate them and to wish them every success in this trade policy review and in the future.

CHILE

4.152. We welcome the delegation of Australia, led by Mr George Mina, First Assistant Secretary of the Office of Trade Negotiations at the Australian Department of Foreign Affairs and Trade, and commend the country for participating once again in this necessary exercise in transparency.

4.153. We also extend a warm welcome to the Permanent Representative of Australia, Ambassador Frances Lisson, and the excellent team of the Australian Permanent Mission to the WTO.

4.154. We are also grateful for the presentation delivered by the Permanent Representative of the United Kingdom, Ambassador Julian Braithwaite, and for the excellent work by both the Secretariat and the Australian Government in preparing their respective reports.

4.155. Chile and Australia enjoy a relationship of trust and cooperation, as expressed through our many common positions on trade and policy and our shared values. Creating a more stable and predictable global economy is important to both Chile and Australia, and we value the contribution that the multilateral trading system can make to that end. We have worked together with Australia, and other stakeholders, to, inter alia, advance equal opportunities in all areas, encourage the participation of women in international trade, promote sustainable development, support small and medium-sized enterprises, and boost innovation, the digital economy and the mobility of persons.

4.156. Chile and Australia share the view that free and fair rules-based trade is an effective tool to boost jobs, prosperity and people's well-being. At the same time, both countries maintain strong and active links through bilateral and sub-regional economic and trade agreements, which have enhanced growth and expansion opportunities for individuals and businesses. For the same reasons, we are active participants in APEC and the OECD, while Australia has been an Observer State of the Pacific Alliance since November 2012. Both countries aim to be gateways to our respective regions.

4.157. On the bilateral front, economic and trade relations between Chile and Australia are governed by the free trade agreement signed by both countries on 30 July 2008, which came into force on 6 March 2009. The comprehensive agreement not only abolishes all tariffs on trade between the two countries, but also regulates many different aspects of trade, with a special chapter on dispute settlement. Thanks to the agreement, our total bilateral trade grew to USD 506 million in 2019, up 5.2% on the previous year. In 2018, Australian direct investment in our country stood at USD 4,612 million, while Chilean investment in Australia totalled around USD 890 million.

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4.158. Australia's economy has been a big success in recent decades thanks to the country's solid macroeconomic policy, structural reforms and raw materials boom. Today, it is one of the world's most developed and most open economies and was one of the top 10 exporters of agricultural products in 2018. Australia therefore sets a very interesting example for Chile.

4.159. Although the primary sector is still strong, we welcome the diversified economy, with services providing more than 72% of GDP. Furthermore, the flexible labour and product markets are supported by strong institutional arrangements, robust regulatory frameworks, prudent macroeconomic policies, a flexible exchange rate regime, and a liberalized capital account. We also note with great interest the economic stimulus measures taken in the form of outlays on research and development.

4.160. Key trade facilitation measures have included the "single window" and other tools to facilitate international trade. We also welcome efforts to simplify and streamline the regulatory regime, particularly to help small businesses. We were very interested to learn of the implementation of the Harper Review, which has led to the introduction of a number of legislative provisions aimed at improving how anti-competitive behaviour is addressed and promoting pro-competitive behaviour.

4.161. In agriculture, we note that support for the sector is limited in both countries, in line with one of the fundamental objectives of our membership of the Cairns Group. Another notable aspect for us is access to water – a major challenge for both countries. We are observing with interest the range of assistance measures that Australia has adopted to address severe drought, including the Future Drought Fund.

4.162. The close and extensive trade relationship between Chile and Australia has led to reciprocal requests for information on regulatory issues and market access. These include Chile's interest in receiving a response from the competent authorities regarding the information sent by the Chilean Agriculture and Livestock Service (SAG) to the Australian Department of Agriculture and Water Resources in 2019 within the framework of Australia's pest risk analysis of Chilean-grown Hass avocados. We would also like to be updated on SAG's enquiries in 2018 into exporting live horses to Australia. In both cases, we thank Australia for the work they have already done and will continue to do.

4.163. Chile is keenly interested in Australia's National Energy Productivity Plan 2015-30, which aims to ensure the more efficient use of energy, boost investment in innovation and energy resource development, and improve energy productivity by 40% by 2030. A number of questions were raised in this regard, primarily regarding the production and marketing of hydrogen.

4.164. In addition to being a key player in the international trading system, Australia continues to strongly back a rules-based multilateral trading system and, as such, it is a leading Member in the work of the WTO. It also actively promotes further trade liberalization in these difficult times for the global economy. These are the fundamental principles that we need to highlight.

4.165. For this review, Chile formulated 19 questions relating to our interest in improving bilateral trade relations. We are grateful for the replies provided and we wish Australia a successful eighth trade policy review.

CHINA

4.166. I warmly welcome the Australian delegation travelling a long way to Geneva.

4.167. Australian writer Adele Dumont wrote a novel "No Man is an Island", which tells the stories of many different individuals in an Australian immigration detention. I like this book, in particular its title. "No Man is an Island" is especially true in of economic globalization. Australia is not an island but a continent, both geographically and spiritually. Its economic success in the past decades owes a lot to its refusal of isolation, its efforts to welcome and adapt to diverse cultures, its embrace of free trade, and its commitment to the rules-based multilateral trading system.

4.168. Australia has long been an advocator and supporter of the multilateral trading system. During this period under review, Australia ratified the Trade Facilitation Agreement, implemented the expansion of the Information Technology Agreement, and joined the Agreement on Government

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Procurement. Moreover, Australia is also actively participating in discussions on e-commerce, investment facilitation and services domestic regulation under relevant joint statement initiatives. Ambassador Lisson is one of the co-conveners of E-commerce JSI, and has made admirable contributions to the negotiations.

4.169. However, we regret to witness that the tide of protectionism in Australia is rising in the past few years, undermining the bilateral economic cooperation between China and Australia, in particular in the area of investment.

4.170. First, many Chinese investors are worried that Australia has gradually tightened up its foreign investment review regime. The process of the review lacks transparency and relevant standards applied are often opaque. In particular, several investment projects proposed by Chinese enterprises were rejected recently, which seriously undermined the confidence of Chinese investors. As a result, Chinese investment in Australia kept decreasing, going down from USD 4.03 billion in 2016 to USD 1.27 billion in 2019. This is a clear evidence of the damage caused by the protectionist measures of Australia.

4.171. Second, Australia excluded Chinese telecommunication companies such as Huawei and ZTE from its 5G projects, and claimed that relevant measures were taken due to national security considerations. However, Australia failed to provide any concrete evidence on the potential risks of Chinese enterprises, and also did not clarify what specific standards Chinese enterprises are supposed to meet before undertaking projects in Australia.

4.172. Several years ago when I was in charge of Sino-Australia bilateral economic cooperation in China, I once asked a senior Australian official, "what is your understanding of national security after all". And his answer was "I cannot tell you, otherwise I will not be secure". Obviously, I was not satisfied with his answer.

4.173. WTO Members shall be very cautious when invoking national security exception, and shall base the decisions on concrete facts and evidence. People often talk about the relationship between political independence and economic liberalism, and in my view, keeping policy independent is the precondition for a liberal policy. I hope Australia could make truly independent and rational decisions regarding its own national security, and continue to keep its door open to the rest of the world including China.

4.174. This year marks the fifth anniversary of the coming into force of China-Australia FTA. It is my honor to be the first chief negotiator of China for this FTA, and Ambassador Lisson was also a lead negotiator of Australia by then. We are pleased to see the rapid growth of the bilateral trade since the signing of this FTA. Bilateral trade in goods reached 169.62 billion USD in 2019, increased by nearly 70% since 2015 when the FTA came into force. Australia also trained many Chinese trade negotiators through technical cooperation programs, and my right hand Madame LI Yihong is one of them. We are deeply grateful for this. What my colleagues learnt then in Adelaide University was how to build bridges to enhance international cooperation, rather than creating isolated islands. China looks forward to working with Australia with a view to upholding the multilateral trading system, and promoting trade and investment liberalization and facilitation globally.

MEXICO

4.175. Mexico warmly welcomes the delegation of Australia, led by Mr George Mina, the First Assistant Secretary of the Office of Trade Negotiations. My delegation would also like to thank Ambassador Julian Braithwaite for his timely analysis.

4.176. I would like to take this opportunity to highlight and acknowledge the hard work carried out by the Australian Permanent Mission, led by Ambassador Frances Lisson, as well as the Australian Government's commitment to the multilateral trading system, as evidenced by the country's leadership and active participation in joint initiatives, particularly that on e-commerce. Lastly, I would like to thank the WTO Secretariat for preparing its report.

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Bilateral trade relations

4.177. During the review period, Mexico and Australia's bilateral relationship was reinforced by the conclusion of the CPTPP, an agreement that has far-reaching trade disciplines that will unquestionably enable us to continue strengthening our integration and trade relationship, and will provide us with more tools to tackle the current trade challenges that the international economic environment is placing before us.

General economic conditions

4.178. Promoting an open economy that is focused on foreign trade has doubtless been key to Australia's continuous economic growth over almost thirty years, enabling it to maintain a firm foothold among the world's largest economies. Its sound macroeconomic management and adequate regulatory frameworks have enabled it to weather the recent crises and steer clear of protectionism, demonstrating its economic resilience during the review period.

4.179. Nevertheless, as the International Monetary Fund (IMF) has pointed out, short- and medium- term economic growth is exposed to significant external and internal risk. The government therefore needs to be prudent, in view of the following challenges:

i. Reliance on exports of Australian goods and services to China, owing to the contraction in demand and Chinese economic growth; recent trade tensions and aftermath of the COVID-19 epidemic.

ii. Sources of vulnerability such as the current housing market, slow income growth and persistently weak domestic consumption.

iii. A potential increase in adverse weather events due to climate change, which would affect agriculture, one of the country's main sectors.

iv. Continuing to improve productivity. We are confident that the measures implemented, such as spending on infrastructure, support for small and medium-sized enterprises (SMEs) and promoting research and development, are a step in the right direction.

Trade policy

4.180. We commend Australia's trade policy, which seeks to diversify the country's international trade and foreign direct investment to promote a global economy that is more open, more competitive and based on international standards.

4.181. We also acknowledge Australia's active participation in the ongoing WTO negotiations and its interest in modernizing the rules, to find innovative ways of rising to challenges and to address long-standing and sensitive areas such as those covered by the negotiations on agriculture.

Trade in goods

4.182. We note the growing share of the Asian market as the destination for more than 84% of Australia's goods exports, and the origin of more than 62% of its imports. The reliance on mineral product exports, accounting for 60% of total exports, is also worth noting.

4.183. Unlike other developed Members, the level of protection is higher for industrial products than for agricultural products, while 5% of non-agricultural tariff lines remain unbound. We welcome Australia's efforts to liberalize trade in goods, which has led to (MFN) duty-free conditions for approximately half of the tariff lines, while the others remain at a tariff of 5%.

4.184. We note the legislative changes with respect to sanitary and phytosanitary measures, and hope that, through the regulated processes, the review of existing trade and risk analyses will improve the conditions in which such measures are applied and will address the delays that were subject to criticism during Australia's previous review.

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Trade in services

4.185. We are aware that the service sector is a mainstay of the Australian economy, accounting for more than 72% of GDP. Regarding the financial sector, we note the high concentration of the banking system, with four banks deemed systemically important, accounting for approximately 80% of the sector's assets. We hope that the recommendations in the Royal Commission's 2019 report can be successfully turned into measures that prevent any further dishonest conduct in the insurance subsector.

Close

4.186. Lastly, I should like to thank Australia for its replies to my delegation's questions and wish it every success in this review.

UNITED KINGDOM

4.187. Thank you Chairperson and I am pleased to add my welcome to the delegation of Australia. Australia is a country very close to my own heart, not least, as I benefited from Australia’s Mode-4 services regime, spending two years in on a business long stay visa in the early 2000s, and I continue to have many friends across Australia.

4.188. The United Kingdom would like to thank Australia for its timely responses to our written questions. The United Kingdom places great importance on the TPR process and applauds Australia on its transparent trade regime.

4.189. We would like to take this opportunity to congratulate Australia on 28 years of continuous economic growth, which we believe is a testament to the successful cultivation of a resilient economy, based on open trade.

4.190. The United Kingdom enjoys a close bilateral relationship with Australia and enduring economic ties. Trade between the United Kingdom and Australia was worth over £18 billion in the year to September 2019, more than half of this in services. Investment continues to be strong in both directions. The United Kingdom is Australia’s third-largest source of direct investment and the second-largest destination for Australian foreign direct investment.

4.191. This trading relationship extends to close cooperation across the WTO and the United Nations, and we wish to express our sincere appreciation for Australia’s active role and support for the rules-based multilateral trading system.

4.192. In particular, we commend Australia’s efforts to modernize the WTO and support the Joint Initiative discussions on both Domestic Regulation in Services and E-Commerce, and we look forward to making progress with Australia in these discussions.

4.193. We also welcome Australia’s work to support female economic empowerment, including through the G20 platform and note Australia’s response to our submitted question which outlines available opportunities for businesses owned by women.

4.194. Our advance questions sought clarifications on a number of policy areas and programmes that assist small and medium-sized enterprises in accessing global markets. In 2018, 88% of UK goods exporters to Australia were SMEs; and 87% of Australian merchandise exporters were SMEs.

4.195. We therefore applaud Australia’s commitment to regulatory transparency and reform in order to minimize the burden for SMEs. We note with interest programmes such as Australia’s SME Export Hubs Initiative and are keen to strengthen our partnership by collaborating with Australia on the challenges faced by our SMEs.

4.196. Recalling Australia’s efforts in recent years at comprehensive tax reform, we would like to take this opportunity to encourage Australia to reconsider their approach to domestic taxes that disproportionately affect imports, such as the Luxury Car Tax and Alcohol Excise Duty.

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4.197. We hope to see the UK-Australia relationship strengthened further in the future. The UK is committed to negotiating and securing an ambitious free trade deal with Australia as soon as possible, harnessing the opportunities for both our citizens from deeper economic and trade engagement.

4.198. And the United Kingdom’s ties to Australia go beyond trade. Our relationship is underpinned by our shared heritage and values, and we are partners on a range of issues such as international security, multilateral cooperation and economic issues.

4.199. We congratulate Australia on its economic success and we look forward to continuing to work closely with Australia in the WTO and more widely.

UKRAINE

4.200. On behalf of the delegation of Ukraine, I would like to welcome the distinguished delegation of Australia led by Mr. George Mina and the Permanent Representative of Australia to the WTO, Her Excellency Ms. Frances Lisson and express our appreciation to the delegation of Australia for their comprehensive Government report.

4.201. We would also like to acknowledge the WTO Secretariat's work and efforts put in the preparation of its Report and thoughtful presentation made today by the discussant H.E. Julian Braithwaite.

4.202. Ukraine values its cooperation with Australia on different trade issues of mutual interest and appreciates Australia's active participation across a range of topics at the WTO, including services, domestic regulation, electronic commerce, investment facilitation and agriculture.

4.203. In this regard, we would like to acknowledge the role of Australia as a coordinator of Cairns Group and its efforts in moving the agricultural negotiations forward. Ukraine, as recently joined observer to the Group, realizes the challenges we face in the month leading to MC12 and remains committed to work together with Australia and other WTO members to achieve substantial progress on market access, domestic support, as well as other pillars and level the playing field for international trade in agricultural products.

4.204. The trade and economic relations between Ukraine and Australia demonstrates the prospects for the further development of cooperation. Bilaterally the total turnover in goods and services in 2019 amounted to around USD 151 million.

4.205. Ukraine sees great potential for further development of bilateral cooperation and hopes to strengthen our bilateral ties regardless of the distance.

4.206. Within this TPR exercise, Ukraine has submitted a number of specific questions on a range of the following topics:

• Preferential trade. • Investment regime. • Export support and promotion. • Sanitary and phytosanitary requirements. • Intellectual property rights. • Agriculture and Fisheries. • Manufacturing policy. • Financial services. • Development of the digital economy.

4.207. I would like to express our gratitude for the responses provided to our questions and especially for the replies to questions on Australia's System of Tariff Preferences (ASTP), which we are reviewing thoroughly.

4.208. Finally, we wish Australia a successful 8th TPR and look forward to further strengthening of our bilateral relations.

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SINGAPORE

4.209. The Singapore delegation warmly welcomes Mr George Mina, First Assistant Secretary of the Office of Trade Negotiations in the Department of Foreign Affairs and Trade, and his delegation to Geneva. We thank Australia for its Government report and statement. We also thank the TPRB Chair, Ambassador Manuel Teehankee, the Secretariat, and the discussant, Ambassador Julian Braithwaite, for their insightful perspectives.

4.210. Singapore applauds Australia for its firm commitment in upholding the rules-based multilateral trading system. This is especially important during these challenging times and Australia's contributions towards strengthening all three pillars of the WTO are laudable.

• First, Australia has made significant contribution towards updating the WTO's rule-book. Its leadership role in the Cairns Group has served to move forward agriculture negotiations at the WTO over the years. Australia is also a strong supporter of the Joint Statement Initiatives (JSIs). In particular, I have the pleasure of working closely on the JSI on E-Commerce, with Ambassador Frances Lisson as well as Japanese Ambassador Kazuyuki Yamazaki. We are pleased that this initiative is on track towards achieving "substantive progress" at MC12. Additionally, Australia has been an active proponent of the JSI on Domestic Regulation (DR) and Investment Facilitation for Development (IFD), which are also on course to produce deliverables at MC12.

• Second, in the regular committees, Australia continues to be a strong proponent of efforts to enhance transparency, including by improving compliance with notification obligations in the WTO. This is another area where Singapore and Australia share similar concerns and enjoy close cooperation. Both Singapore and Australia, together with 18 Members, are co- sponsors of the draft General Council decision on "Procedural Guidelines for WTO Councils and Committees Addressing Trade Concerns". This proposal suggests new procedural guidelines to allow WTO Councils and Committees to address trade concerns more effectively, which in turn, will promote better dialogue among Members.

• Third, Australia continues to be a constructive voice in discussions related to dispute settlement. Here again, Australia and Singapore are similarly committed to maintaining the two-tier dispute settlement mechanism (DSM). Hence, Australia and Singapore, together with several other Members, have co-sponsored the Davos Ministerial Statement on the Multi-Party Interim Appeal Arbitration Arrangement, and discussions are ongoing to finalise work on such an arrangement.

4.211. As we work to strengthen and uphold the rules-based multilateral trading system, we encourage Australia to continue to resist protectionism and keep its market open. In this regard, we note from the Secretariat report that Australia is an active user of anti-dumping and countervailing measures. It has imposed 37 new anti-dumping measures since 2014, while at the end of 2018, 83 anti-dumping measures were in force, up from 23 in June 2010. Steel products account for more than 50% of the measures in force. We encourage Australia to use trade remedies prudently going forward.

4.212. On the bilateral front, Singapore and Australia enjoy strong and comprehensive bilateral relations that have grown from strength to strength.

• One, in the area of trade, Australia was Singapore's 11th largest trading partner in 2019, with bilateral trade amounting to USD 17.3 billion.

• Two, outbound and inbound investments between the two countries continue to grow at a steady pace. As of end-2018, Singapore was Australia's 6th largest foreign investor with FDI of USD 56.7 billion while Australia's FDI into Singapore increased 10.8% to USD13.6 billion in 2018.

• Three, Singapore and Australia close ties were elevated to a Comprehensive Strategic Partnership (CSP) in 2015. After extensive negotiations, the Comprehensive Strategic Partnership was signed by PM Lee Hsien Loong and then-Australian PM Tony Abbott on 29 June 2015, during his official visit to Singapore to commemorate the 50th anniversary of the establishment of bilateral relations. This initiative comprises a Joint Declaration and a

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10-year roadmap titled "Project 2025", that covers collaboration in a wide range of areas from defence to trade.

4.213. To conclude, Singapore looks forward to continuing to strengthen our cooperation with Australia, both on the multilateral and the bilateral fronts. We wish Australia every success for this TPR.

SINGAPORE ON BEHALF OF ASEAN

4.214. ASEAN and Australia have, through the years, enjoyed strong engagement in a range of areas, including security, culture, trade, education and development. The cooperation between ASEAN and Australia is guided by the ASEAN-Australia Strategic Partnership and the Plan of Action for the period of 2020-2024, which was adopted in 2019 at the Post Ministerial Conferences (PMC+1) in Bangkok, Thailand. The Plan of Action will further enhance ASEAN-Australia cooperation in all dimensions over the next five years.

4.215. Economic and trade relations between ASEAN and Australia steadily expanded in the past years. Two-way merchandise trade between ASEAN and Australia valued at around USD 66.2 billion in 2018, making ASEAN Australia's third-largest trading partner. FDI from Australia to ASEAN reached USD 28.0 billion in 2018, making Australia ASEAN's seventh largest source of FDI.

4.216. The ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which has been implemented since 1 January 2010, is one of ASEAN's most comprehensive economic agreements to date. This agreement has contributed significantly to integrating Australia's economy into the ASEAN's. As noted in the Secretariat's report, the tariff-free treatment for over 96% of Australia's exports to ASEAN Member States is anticipated this year.

4.217. We believe that AANZFTA will provide a solid base for closer economic relations and serve as building blocks to strengthen the multilateral trading system.

4.218. We appreciate the AANZFTA Economic Cooperation Support Programme (AECSP), which continues to support economic cooperation activities and long-term projects. These ensure the FTA implementation to achieve broad economic integration and improve business utilization. Moreover, we welcome Australia's support to Developing and Least Developed Member States in their integration process to the Multilateral Trading System through the Aid for Trade Program.

4.219. ASEAN is appreciative that Australia is an active and important member of the WTO, constructively participating in all areas of negotiations and the implementation of outcomes. Moreover, Australia holds a strong record of providing notifications to the WTO. We highly commend Australia for its contributions and commitment to WTO reform.

4.220. Finally, ASEAN looks forward to its continued positive engagement with Australia, as it will strengthen our bilateral relations as well as the broader multilateral trading system. ASEAN would particularly like to thank Ambassador Frances LISSON and her delegation for their tireless efforts and constructive engagement with delegations, including individual ASEAN members, here in Geneva. ASEAN will continue to work closely with the delegation of Australia along with other Members towards a successful outcome for MC12.

4.221. ASEAN expresses our appreciation to Australia for its written responses to the questions submitted by some ASEAN Members. We wish Australia every success in their eighth Trade Policy Review.

INDIA

4.222. I would like to welcome the Australian delegation led by the Mr. George Mina, First Assistant Secretary, Office of Trade Negotiations, for the Trade Policy Review. Let me also take this opportunity to congratulate the Australian women's cricket team for their splendid victory against India in the T-20 world cup finals. The finals match played for 86,000 people on International Women's Day is a big boost to women's sports in general and a fitting feat to the millions of women in sports across the world. I would like to also thank the Government of Australia and the Secretariat for the excellent

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- 32 - reports prepared for the review and Ambassador Julian Braithwaite of United Kingdom for his insightful comments as a discussant.

4.223. India and Australia enjoy a close and multi-faceted partnership, underpinned by complementarities of our two economies, growing bilateral trade and investment flows and expanding people to people linkages. Both are strong, vibrant and multi-cultural democracies. These mutual complementarities and shared values provide a solid basis for greater cooperation and strengthening of bilateral linkages in diverse areas. The relationship has undergone considerable evolution in recent years, with its elevation to the level of a "Strategic Partnership" and our growing cooperation in the Indo-Pacific region, both under the bilateral and plurilateral formats.

4.224. The India-Australia economic relationship has also strengthened significantly in recent years. The bilateral trade in goods and services was US$ 19 billion (AUD 29 billion) in 2017-18 with India being the 5th largest trading partner of Australia. However, with Indian exports at USD 5 billion (AUD 8 billion) and imports at USD 14 billion (AUD 21 billion), the bilateral trade is in favour of Australia and we hope that we can balance this trade while maintaining its overall positive direction.

4.225. Besides bilateral trade, two-way investments, particularly Indian investments to Australia, have grown in recent years. Several Indian firms have made investments in Australia and all the major Indian IT companies have a presence in Australia. We remain highly positive over the prospects for expanding our trade and economic ties in the coming years. The negotiations for a Comprehensive Economic Cooperation Agreement (CECA), launched in 2011 remains stalled. We are engaged with our Australian counterparts on this matter and remain hopeful of an early restart of the negotiations. We believe that the bilateral CECA would open up new opportunities for trade and investments for mutual benefit.

4.226. I wish to highlight some of the trade policy measures, which we feel remain critical to unlocking the immense bilateral trade potential. We hope for reductions in the applied tariffs in apparel and certain textile products – a sector where Australia has traditionally maintained high tariffs. Our exporters also continue to face market access barriers due to the SPS measures for certain agriculture products. We urge the Australian authorities to review the current framework for technical regulations and SPS measures, including MRLs for certain chemicals and herbicides, to ensure that these are in line with relevant international standards and that the regulatory framework is not unduly burdensome to exporters. We also note from the Secretariat's report that Australia is a significant user of anti-dumping and countervailing measures and we urge that these measures follow transparent, independent and objective investigation process, to avoid injury to genuine exporters.

4.227. We are also concerned over the recent measures by the Australian government on temporary movement of skilled professionals, which we believe adversely impacts our otherwise growing trade in services. The abolishing of Subclass 457 visa category and its replacement with subclass 482 visa category, imposes additional burden, higher threshold limits and its consistency with Australia's GATS commitments remains doubtful. We had posed a number of advance written questions to Australia on this issue and other issues of concern and thank the Australian delegation for their responses, which we will carefully review.

4.228. We recognize the role played by Australia in the WTO. Both our countries have a shared interest in a strong and effective multilateral trading system and we look forward to working with Ambassador Ms. Frances Lisson and her team in ensuring balanced outcomes in the ongoing negotiations and positive outcomes at MC 12.

4.229. I would like to wish Australia a successful Trade Policy Review.

INDONESIA

4.230. Thank you Chair, and thank you Mr. Julian Braithwaite, as discussant, for your focus and comprehensive analysis.

4.231. First and foremost, Indonesia would like to congratulate First Assistant Secretary, Office of Trade Negotiations, Mr George Mina and the delegation of Australia for their eight Trade Policy Review this year.

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4.232. Indonesia views this occasion as an important platform to tighten longstanding bilateral trade relation between Indonesia and Australia, as well as to add value to the recently ratified Indonesia- Australia Comprehensive Economic Partnership Agreement or IA-CEPA. Indonesia believes that the IA-CEPA would benefit both sides, especially to increase and expand two ways trade, which at this moment only account for around two percent of Indonesia’s trade with the world.

4.233. Indonesia places high expectation on the IA-CEPA to narrow, if not eliminate, Indonesia’s trade deficits to Australia which in 2018 recorded for USD 3 billion. This among others through increasing market access for Indonesia products including automotive, textile, rubber, furniture, electronics, paper, food and beverages, and foster the development of creative industry and e- commerce. Moreover, we believe that the IA-CEPA could generate opportunities for Indonesia’s service and investment sector, as well as increasing human resources capacity through education cooperation.

4.234. In general, Indonesia’s bilateral trade with Australia shows an upward trend during the period of 2016 to 2018. In 2018, total trade accounts for USD 8.6 billion or an increase of 1.3% from the previous year. However, if we compare the 2018 figures with 2015, we see a slight decrease of 1.45%. The latest numbers that we have, even showing a decrease of 9.33% in total trade from 2018 to 2019. With this fact, Indonesia hopes that bilateral trade between the two countries could be further improved in the near future.

4.235. Indonesia appreciates Australia’s responds to our written inquiries. Nonetheless, our high expectation for Indonesia-Australia future trade-relation, under the umbrella of IA-CEPA, should not be undermined by unnecessary measures that may hinder our target to boost the trade.

4.236. In this regard, Indonesia would like to highlight some measures that may contra-productive to our effort in deepening and expanding our trade, including among others:

i. On trade remedies, Indonesia is of the view that Australia needs to further clarify its anti- dumping laws and application after the amendment of regulation on trade remedy.

ii. On non-tariff measures, we urge Australia to ensure that its SPS requirements meet the science and risk-based assessment, in particular to our horticultural and tropical fruit products. Concerning its technical regulation, we are of the view that some measures taken by Australia in labelling and logo could potentially lead to national treatment.

4.237. As immediate neighbour which share a unique bond and deep historical ties, Indonesia will always seek ways to enhance its cooperation with Australia in all sectors. Through comprehensive strategic partnership, we underline the need to energize trade, investment and business relations, to advance our strategic cooperation, to forge deeper engagement between our communities and cultures and to build greater links between the young people of our countries.

4.238. In this note, Indonesia wishes the Australian delegation a success in the remaining phase of this Trade Policy Review, and a safe trip home.

RUSSIAN FEDERATION

4.239. I would like to extend a warm welcome to the delegation of Australia. We appreciate the comprehensive reports by the Australian Government and the Secretariat. Our thanks also go to the discussant, H.E. Mr. Julian Braithwaite, for his thoughtful remarks. We hope that this TPR would contribute significantly to the transparency of the Australian trade regime.

4.240. We would like to congratulate the Government of Australia for carrying out an effective trade and investment policy that contributed to almost 30 years of uninterrupted economic growth. Australian economy demonstrated an impressive resilience withstanding a number of external economic shocks. We express our support and wish success to Australian Government in overcoming the consequences of the devastating bushfires tragedy in 2019.

4.241. Over the years, the Russian Federation and Australia have been developing bilateral economic cooperation in many areas, including trade and investment, energy sector, natural

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- 34 - resource extraction and technological innovations. During the review period, our trade turnover showed a slight upward trend, amounting to USD 812 million in 2018.

4.242. However, we believe that the trade potential between our countries remains largely untapped due to non-economic reasons. remains deeply concerned with a number of unilateral restrictive measures imposed by Canberra, which lead to mutual economic, trade and investment losses. We reiterate our request to Australia to withdraw all unfounded restrictions, which negatively affect our bilateral trade.

4.243. We see mutually beneficial and equitable trade as an effective and constructive tool not only for the promotion of peace and development, but also for the promotion of dialogue and respect, which are essential in these turbulent times.

4.244. The Russian Federation has submitted a number of written questions in relation to the Australian sanitary and phytosanitary requirements. We thank the Government of Australia for comprehensive answers.

4.245. In conclusion, we would like to thank you, Mr. Chairman, the delegation of Australia, the Secretariat and the discussant, for the impressive work done so far and wish Australia a successful Trade Policy Review.

ICELAND

4.246. Iceland would like to welcome the distinguished delegation of Australia to their eighth Trade Policy Review and would like to express appreciation to the WTO Secretariat, as well as to Australia, for the reports prepared, as well as to the discussant, Ambassador Braithwaite, for his excellent framing of the issues for our discussion today.

4.247. Despite the geographical distance, Iceland and Australia are like-minded partners enjoying excellent cooperation in various international fora and sharing commitments to promoting a rule- based multilateral system.

4.248. Iceland and Australia share common interest in the elimination of harmful subsidies in the fisheries sector and Australia is a strong supporter of developing enhanced fisheries subsidies disciplines in the WTO. Iceland congratulates Australia for its commitment and active work in the field of fisheries subsidies within the WTO.

4.249. Australia played an active role in championing the Joint Declaration on Trade and Women's Economic Empowerment and is an active member of the Trade Impact Working Group, that is co- chaired by Botswana, Iceland and the ITC.

4.250. Furthermore, Australia is one of the members that have voluntary started to integrate information on their gender-responsive trade policies in the Trade Policy Review process. Iceland submitted advance written questions on the participation of women in the and thanks Australia for the information provided. The answers are very useful for the implementation of the Joint Declaration on Trade and Women's Economic Empowerment and for gathering best practices.

4.251. Iceland appreciates Australia's active engagement in WTO and their continued support for the multilateral trading system. We wish the delegation of Australia every success for their Trade Policy Review.

MALAYSIA

4.252. Malaysia is pleased to take part in the 8th Trade Policy Review of Australia. We deemed that this Review is important as Malaysia and Australia has fostered strong and complementary economic ties.

4.253. We would like to extend a warm welcome to Mr. George Mina, First Assistant Secretary, Office of Trade Negotiations and his delegation. We also thank the Secretariat for their effort in

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- 35 - preparing comprehensive review reports, and the discussant, H.E. Julian Braithwaite of the UK for his insightful comments.

4.254. In 2019, Australia was Malaysia's 13th largest trading partner with Australia-Malaysia bilateral trade recorded a total amount of USD 12.48 billion. Imports from Australia into Malaysia increased by 7.9% to USD 5.6 billion (2019) from USD 5.3 billion (2018). However, we note that there is a significant decrease in the total exports from Malaysia to Australia from USD 8.3billion in 2018 to USD 6.9 billion. Malaysia looks forward to work together to increase the value of trade between both economies in the future.

4.255. Crude petroleum and petroleum products constitute Malaysia's largest exports to Australia (41.2%), followed by electrical and electronic products (15.6%), manufactures of metal (4.5%) and manufactures of plastics (4.0%). Major imports from Australia were manufactures of metal (19.8%), liquefied (15.4%), other mining (13.8%), metalliferous and metal scrap (12.3%) and other agricultures (9.3%).

4.256. Bilateral investment also continues to flow. As of December 2019, a total 350 Australian investments in the manufacturing sector have been implemented with total investment worth USD 866.5 million which created 22,626 employment opportunities.

4.257. At the multilateral front, we commend Australia's substantial efforts in adhering to the various WTO agreements since its last TPR in 2015. Australia's ratification of the Trade Facilitation Agreement (TFA) and the expansion of the Information Technology Agreement (ITA-2), as well as its assistance given to the developing and least-developed countries (LDCs) in implementing these agreements, have significantly contributed to the goal of reducing tariffs and facilitating trade among the WTO Members.

4.258. We also appreciate Australia's active participation and contribution in supporting the development of new issues by chairing the discussions under the Joint Statement on Electronic Commerce and co-sponsoring the Joint Statement on Investment Facilitation for Development and the Joint Statement on MSMEs. Malaysia applauds Australia's efforts in advocating for WTO reform and modernization, which will bolster confidence for the continued relevance of the rules-based multilateral trading order.

4.259. On FTAs, Malaysia welcomes continuous regional economic integration efforts through various bilateral and regional initiatives such as the Malaysia-Australia Free Trade Agreement (MAFTA), the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) and the Regional Comprehensive Economic Partnership (RCEP).

4.260. For this current review, Malaysia had submitted written questions on areas such as Australia's sanitary and phytosanitary requirement, export restriction, tax reform and investment regime.

4.261. We would like to thank Australia for the responses and we shall examine the responses with great interest. We wish the Australian delegation a productive and successful TPR.

NEW ZEALAND

4.262. New Zealand is pleased to participate in this trade policy review of Australia.

4.263. For almost 40 years, New Zealand and Australia have pursued one of the world's most ambitious economic integration projects, resulting in virtually free movement of goods, services, capital and people. Australia is our second largest two-way trading partner and our large destination for and source of overseas investment. 75% of New Zealand businesses derive income from Australia and 92% of all businesses who export to Australia are small and medium enterprises (SMEs). In turn, 18,500 Australian businesses export to New Zealand, making us by far the largest market for Australian SMEs.

4.264. The Australia New Zealand Closer Economic Relations Trade Agreement, underpins this close trade and economic relationship. The Trans-Tasman Travel Arrangement provides a single labour market and access to a larger pool of skills, talents and ideas.

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4.265. Since 2004, the Single Economic Market (SEM) agenda has driven further trans-Tasman economic integration and it continues to provide opportunities to drive growth in both economies.

4.266. We share Australia's view that we need to safeguard and strengthen the WTO, in a global trading environment that threatens the rules-based trading system, increases instability in global markets, and challenges the rule of law. We commend Australia's leadership of the WTO e-commerce JSI negotiations and active cooperation with us on issues such as services domestic regulation.

4.267. We welcome Australia's commitment to a rules-based and market-oriented agricultural trading system, particularly as agriculture remains a highly distorted area of international trade. We are grateful for Australia's work as Chair of the Cairns Group, including working towards an outcome from MC12 on disciplines to limit trade- and production-distorting agricultural domestic subsidies.

4.268. Together we are also committed to seeking an ambitious and comprehensive outcome on fisheries subsidies by the 12th WTO Ministerial Conference in June.

4.269. Complementing our bilateral and multilateral efforts we are also active together in regional settings. Since Australia's last trade policy review, New Zealand and Australia have worked closely to conclude the Comprehensive and Progressive Trans Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP), and the Pacific Agreement on Closer Economic Relations (PACER Plus).

4.270. I would like to emphasize the value we place on the exceptionally close working relationship New Zealand enjoys with Australia as we seek to progress our wide range of multilateral, regional and bilateral initiatives.

PERU

4.271. The delegation of Peru extends its cordial greetings to everyone present, in particular to the delegation of Australia, and to Mr George Mina, First Assistant Secretary of the Office of Trade Negotiations, who is leading the delegation, and Ambassador Frances Lisson, Australia's Permanent Representative to the WTO.

4.272. We should like to thank Australia's head of delegation for the detailed report on his country's trade policies, as well as Ambassador Julian Braithwaite, Permanent Representative of the United Kingdom, for his valuable observations as discussant. Likewise, we greatly appreciate your dedication, Mr Chair, and the work done by the Secretariat for this review.

4.273. Peru is pleased to take part in this exercise by making a number of comments on the economic and trade system of Australia, a WTO Member with whom we have an important bilateral relationship, since we cooperate on a variety of issues on the international agenda.

4.274. Firstly, Peru notes, from the report by the Secretariat, a number of positive developments in the Australian economy, notably the high employment level, diversification of production, continued attraction of foreign investment and prudent management of key macroeconomic factors. The information provided on Australian policies to further trade in services, competition policy, the digital economy and e-government is equally interesting.

4.275. The reports also reveal Australia's deep involvement in the WTO's various areas of work, as evidenced in this Organization's daily activities. Accordingly, we commend the commitment and dedication of Ambassador Frances Lisson and her colleagues at the Permanent Mission in Geneva. Peru endorses Australia's numerous efforts to achieve tangible outcomes in this Organization's various negotiations and initiatives and to safeguard the relevance and effectiveness of its dispute settlement mechanism. We work together on a number of topics of great relevance to this Organization, in support of greater liberalization and participation in international trade, understood to be factors favourable to development. These topics include agriculture, as part of the Cairns Group, and the search for solutions to the fisheries subsidies problem, as part of the "Friends of Fish" group. We have also been working together frequently to ensure an outcome on domestic regulation of services at the next Ministerial Conference. In addition, we are investigating the scope within the WTO for continuing to work for women's economic empowerment through trade.

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4.276. Furthermore, our joint work is carried out not only within the framework of the WTO, but also within other organizations with economic objectives, such as the Asia-Pacific Economic Cooperation forum (APEC) and the Pacific Alliance.

4.277. Australian trade policy in connection with regional trade agreements is another topic of interest. Indeed, the reports prepared for this review illustrate Australia's dynamism in this area during the review period. Naturally, Peru is pleased to highlight the successful conclusion of the free trade agreement between Peru and Australia which entered into force only a few weeks ago, in February 2020. Like Australia, we believe that this agreement is not only important for market access, but also for driving investment, protecting intellectual property, promoting trade in services and working on development, among other matters. While our trade has more than doubled in the past 10 years – reaching approximately USD 330 million in 2018 – we know that there are many business opportunities still to develop, and are confident that our free trade agreement will enable us to make the most of them and achieve a higher degree of integration within a framework of clear and predictable rules.

4.278. During this review, my delegation requested further details about the policies Australia has been implementing to foster women's participation in international trade, with a view to discovering best practices in this field. We thank Australia for its reply to our question.

4.279. Once again, we should like to express our thanks for conducting this review and wish Australia every success in this trade policy review.

TURKEY

4.280. We would like to welcome the Australian delegation to their eighth Trade Policy Review.

4.281. We thank the WTO Secretariat and Australia for their comprehensive reports, and our discussant, Ambassador Julian Braithwaite (UK), for his insightful comments.

4.282. As stated in the Secretariat's report, the Australian economy is diversified, with flexible labor and product markets and is supported by strong institutional arrangements, and sound macroeconomic policies. During the review period, Australia endorsed several policy tools to stimulate demand and to boost domestic economic activity. Tax reductions for SMEs also contributed to those policies and ensured further integration of small firms into global trade chains.

4.283. As the report sets out, we consider "Economic and Commercial Diplomacy Agenda" of Australia has defined right priorities for the country and served as a good blueprint to guide foreign trade and enhance international competitiveness. We also commend the great performance of Australia in expansion of its FTA network, accounting for 70 % of Australia's two-way trade from 26.8% in 2013. Having said that we believe that foreign investments still should play a more significant role in overall economic performance of Australia.

4.284. Australia is one of our key partners in the Asia-Pacific region. Despite the geographic distance Turkey and Australia have unique and close relations. We value our cooperation in international platforms including G20, the WTO and MIKTA. Through our cooperation under MIKTA, we have developed several cooperation areas for upholding rule-based international trade and have ensured constructive contributions to global trade governance.

4.285. We are happy to see progress in our bilateral trade relations in recent years. Our total trade volume reached approximately to USD 1.7 billion last year (2019 Trade Volume: 1,668 billion, Exports: USD 637 million, Imports: USD 1.031 billion). There is still a significant further potential of cooperation in trade. We are committed to work together to enhance our trade relations. We need to work on raising more mutual awareness regarding great complementary economic and trade potential between our business communities, including the defense and agriculture industries.

4.286. In line with this approach, Turkey aims to develop new tools to enhance our economic partnership and lift any obstacles. In this respect, since 2017, there has been a prohibition on air cargo originated from, or transited through Turkey, for electromechanical devices that weigh over one kilogram. We encourage the Australian government to lift this ban. Turkish authorities are ready to consult with Australian government to address this issue.

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4.287. We appreciate Australia's role as a key player in international trade and one of the prominent members in shaping global economic architecture. Australia's contribution to multilateralism and to the negotiations under this roof is praiseworthy. We commend their active and constructive role in advancing trade negotiations in agriculture and fisheries, as well as their leadership in joint initiative on e-commerce. We also appreciated Australia's guidance and strong commitment during the negotiations on environmental goods agreement among participants.

4.288. Let me also thank to our Australian colleagues, who work at the Permanent Mission in Geneva, for their hard work and valuable contribution to the daily activities under this roof.

4.289. Turkey will continue its close and fruitful dialogue with Australia in both bilateral and multilateral platforms. We wish Australia a successful Trade Policy Review.

THAILAND

4.290. At the outset, Thailand would like to associate itself with ASEAN statement delivered by Singapore.

4.291. Thailand welcomes this opportunity to participate in the 8th Trade Policy Review of Australia. We are honored to extend a warm welcome to Mr. George Mina and his delegation to Geneva.

4.292. We would like to thank you, Chair, for your comprehensive summary, the discussant, Ambassador Braithwaite of the United Kingdom, for his in-depth analysis of Australia's trade policy, and the Secretariat for high quality report.

4.293. Thailand's trade and economic relationship with Australia has grown strongly since the entry into force of the Thailand-Australia Free Trade Agreement in January 2005. Trade in goods has tripled since 2004, from USD 4.7 billion in 2004 to USD 14.2 billion in 2019. Australia is currently Thailand's 9th largest trading partner, while Thailand is Australia's 8th largest trading partner and its biggest import source in ASEAN. Australian investment stocks in Thailand were valued at USD 660 million at the end of 2019. These figures describe a substantial economic relationship, and we will continue to foster our relations on the basis of mutual benefits.

4.294. Turning to the TPR, Thailand applauds Australia's sound macroeconomic policies and wide- ranging structural reforms, which have contributed to uninterrupted growth for nearly three decades. Australia's open trade policy is strongly connected to sustainable economic growth, international competitiveness, and improved living standards, positioning Australia as one of the most dynamic and open economies in the world.

4.295. Thailand commends Australia's constructive role and contributions at the WTO. It has an impeccable track record for submitting notifications in different areas and has fully implemented the commitments under the WTO Trade Facilitation Agreement.

4.296. Equally important, Thailand appreciates Australia's proactive participation in the negotiations especially in the area of agriculture. We commend Australia's leadership in the Cairns Group. As a co-sponsor of the "Framework for Negotiations on Domestic Support", we urge Members to join this initiative so that the WTO can deliver a balanced and meaningful outcome at MC12, which will positively impact global agricultural trade.

4.297. Chair, in this review, Thailand has sought clarity on a number of measures of our interests such as the Australian System of Tariff Preferences, the new country of origin labelling system, the Intellectual Property Laws Amendment Act, the Broadcasting Legislation Amendment Act, and the government's strategies to promote development hub for SMEs. We take the opportunity to thank Australia for its timely responses.

4.298. Thailand has always enjoyed excellent working relations and cooperation with Ambassador Frances Lisson and her very capable team in Geneva. We look forward to continuing this, in our common goal of upholding the multilateral trading system. We wish Australia a successful 8th Trade Policy Review.

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GUATEMALA

4.299. On behalf of Guatemala, I extend my cordial greetings to the delegation of Australia, led by Mr George Mina, First Assistant Secretary of the Office of Trade Negotiations.

4.300. We should like to thank the Secretariat for its report and assessment as part of this review, and the UK Ambassador, Julian Braithwaite, for his contribution as today's discussant and for the clear overview he provided of Australia's trade policy.

4.301. For several decades now, Guatemala and Australia have enjoyed good relations based on close cooperation in a number of areas. As members of the Cairns Group, our countries have joined forces to promote agricultural trade reform. Our cooperation was also reflected in the United Nations Security Council in 2013, when Australia and Guatemala both served as non-permanent members of the Council. Another significant aspect of our joint work has been Australia's participation as an extra-regional observer in the Central American Integration System (SICA) since 2011.

4.302. Our trade chiefly consists of coffee, oils and vegetable materials (products exported by Guatemala) and paper and paper products, dairy products, processed vegetables, and pipes and tubes (products imported from Australia). In 2019, Australia ranked 48th among Guatemala's export destinations and 66th for imports. The trade balance has risen steadily in recent years, and we believe that there is considerable potential for growth in many sectors, such as foods and beverages, manufactures, and information technology products. Platforms for sustained dialogue, such as the Council on Australia Latin America Relations (COALAR), established by the Australian Government in 2001, and the Forum for -Latin America Cooperation (FEALAC), are helping to foster communication and identify opportunities for joint work.

4.303. Turning to the current review of Australia's trade policy, we note the policy of openness pursued by the authorities in spite of the economic crisis, as well as the reduction in documentation requirements, the consolidation of computerized customs clearance, and the implementation of important trade facilitation measures.

4.304. Also worthy of note is the entry into force of the Biosecurity Act (2015) and other regulations in this area, which constitute new elements within the field of sanitary and phytosanitary measures.

4.305. Turning to intellectual property, the "Australia 2030: Prosperity through Innovation" initiative, under the National Innovation and Science Agenda, transforms innovation into a platform for economic development by supporting and promoting innovative companies and expanding new market sectors and production chains.

4.306. Guatemala acknowledges the efforts made by Australia during the period covered by this report.

4.307. We welcome the replies to the questions submitted in the context of this review and wish the Australian delegation a successful conclusion to its country's trade policy review.

PHILIPPINES

4.308. The Philippine delegation warmly welcomes and congratulates the delegation of Australia headed by First Assistant Secretary George Mina and their Permanent Representative to the WTO, Ambassador Frances Lisson, on Australia's 8th Trade Policy Review in the WTO. We also thank the discussant Ambassador Julian Braithwaite of United Kingdom for his insightful comments, and the WTO Secretariat for a comprehensive report.

4.309. The Philippines associates itself with the ASEAN statement recognizing the robust economic and trade relations between ASEAN and Australia.

4.310. The Philippines and Australia have built a strong and enduring relationship since the establishment of our diplomatic relations in 1946. Australia and the Philippines' long-standing trade and the continued expansion of our people-to-people links underpin our deepening bilateral relationship. To further deepen the bilateral links between our two countries, we signed the Joint Declaration on the Australia-Philippines Comprehensive Partnership on 18 November 2015 which

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- 40 - demonstrates our commitment to strengthen and expand our relationship in a manner that is mutually beneficial.

4.311. Australia is an important trading partner of the Philippines. Bilateral trade amounted to USD 1.76 Billion last year. The Philippines' main exports to Australia include lead-acid, unwrought , static converters, and desiccated coconuts. While the main exports of Australia to the Philippines are wheat, meat of bovine animals, , and petroleum oils, among others.

4.312. Australia's economy is highly integrated with the global economy, particularly the Indo- Pacific region, with overall foreign trade comprising 46% of their GDP. The resilience of the Australian economy has facilitated 28 years of continuous economic growth, which is a result of its careful economic policy management and its successful fostering of an internationally competitive, outward- looking economy.

4.313. The Philippines recognizes Australia's strong support for the open and rules-based multilateral trading system. The Australian government actively participates in the WTO reform efforts to help modernize the WTO. It also plays a lead role in a range of WTO negotiations, such as the Joint Statement Initiative on Electronic Commerce, to help update the rulebook and ensure that WTO rules keep up with economic and technological change.

4.314. We value the importance given by Australia to the role of Micro, Small and Medium Enterprises (MSMEs) in achieving inclusive and sustainable development, and the significance of enhancing MSMEs' participation in international trade. We acknowledge the Australian Government's efforts in reforming their regulatory environment for MSMEs to minimize regulatory burden and promote MSMEs growth. We look forward to continue working together in advancing this initiative in the WTO, including the other ongoing joint initiatives on electronic commerce and investment facilitation for development.

4.315. The Philippines submitted some advance written questions on the TPR Secretariat and Government reports, and we thank Australia in advance for its response.

4.316. In closing, the Philippines looks forward to further enhancing the mutually beneficial economic relations with Australia in the bilateral, regional, and multilateral fora.

VIET NAM

4.317. On behalf of Viet Nam’s delegation, I wish to extend our warm welcome to the distinguished delegation from Australia led by Mr George Mina, First Assistant Secretary, Office of Trade Negotiations to the eighth Trade Policy Review. I would like to thank the Government of Australia and the WTO Secretariat for the preparation of comprehensive reports for this review. My thanks also go to the discussant, His Excellency Julian Braithwaite, Ambassador and Permanent Representative, UK Mission to the WTO, UN and Other International Organizations for insightful observations and introduction.

4.318. We would like to associate ourselves with the ASEAN Joint Statement delivered by Singapore.

4.319. Since the last Trade Policy Review, we are happy to note that the Australian economy continued to grow averaging 2.6% annually during the review period despite increasing global uncertainties and trade tensions. We share the same view with Australia that further enhanced trade liberalization is among the best pathways to prosperity and welcome Australia’s strong commitment to the multilateral trading system in the time of uncertainties.

4.320. For our trade relations, we are pleased to be Australia’s fastest-growing trading partner within the ASEAN bloc in recent years. In 2019, bilateral trade recorded a year-on-year increase of 3% to nearly USD 8 billion. Of the total, Viet Nam’s export to Australia was USD 3.5 billion, down 12% from 2018. Import from Australia rose significantly by 19% to over USD 4.5 billion. Viet Nam’s major export items to Australia are telephone all types and components, computers and electronic products and components, and footwear and two-way trade is targeted to reach USD 10 billion in 2020.

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4.321. In terms of investment, Australia’s FDI to Viet Nam reached USD 1.9 billion in 2019. Viet Nam’s investment to Australia was USD 154.6 million, accounted for 30.4% of our total oversea investments.

4.322. We note that in the review period Australia introduced new sanitary and phytosanitary requirements that lay down specific conditions for the importation of various commodities. We ask that Australia, in the spirit of pursuing trade openness and economic integration policy, to consider flexible implementation of these requirements to developing countries.

4.323. Viet Nam and Australia are now Parties of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Given the fact that the CPTPP is a high-standard and “new generation” agreement, with the commitments made to each other in this Agreement, bilateral trade between Viet Nam and Australia is expected to expand strongly and sustainably in the coming time, bringing about practical benefits for both countries and the people.

4.324. At the multilateral level, Viet Nam highly commends Australia’s commitment and valuable contribution over the years to the WTO. Australia is one of the most active and leading members of the Organization. Viet Nam appreciates the important roles played by Australia in promoting negotiations and deliberations in recent years, including potential WTO improvements, particularly at this critical stage for this organization. Australia has been contributing to the process as an important Member and as an active proponent of the various negotiation areas, especially in E-Commerce and Fishery Subsidies negotiations.

4.325. In conclusion, I would like to take this opportunity to thank Ambassador Frances Lisson and her able team for the preparation of this Review as well as their constructive and active contribution and engagement in WTO activities and wish Australia a successful Trade Policy Review.

PARAGUAY

4.326. STATEMENT NOT PROVIDED.

URUGUAY

4.327. Uruguay extends a most cordial welcome to the delegation of Australia, led by First Assistant Secretary of the Office of Trade Negotiations, Mr George Mina, on the occasion of Australia's eighth trade policy review. We should also like to thank Ambassador Julian Braithwaite for his presentation and the Secretariat for its high-quality report.

4.328. The resilience of the Australian economy, which has facilitated nearly 30 years of uninterrupted growth, its strong institutional arrangements and its robust regulatory frameworks and prudent macroeconomic policies are particularly remarkable. Australia has managed to navigate international economic shocks thanks to an open, diversified economy aimed at boosting potential growth, while maintaining open trade, investment and immigration. The government's strenuous efforts to mitigate the economic impact of the devastating forest fires that swept through the country in late 2019 and early 2020 are also noteworthy.

4.329. With respect to our bilateral relations, Australia ranked 59th among Uruguay's export destinations. Exported products include plastic products, orthopaedic appliances, electrical transformers, rice and caviar. Imported products include iron products, wool, coal and seeds. To contribute to this mutually beneficial exchange, Uruguay and Australia decided to revise the investment promotion and protection agreement, in force since 2002. The revision is currently going through parliamentary procedure before its entry into force. We also have a tax information exchange agreement in force since 1 July 2014.

4.330. Australia and Uruguay are in agreement that the only way to deal with current global trade challenges is to preserve and strengthen the multilateral trading system, a key tool for ensuring open, fair and predictable trade. In this context, we agree on the importance of updating the WTO rules and safeguarding an efficient dispute settlement system. Consequently, we have chosen to work together to draw up contingency measures, in the form of an interim multi-party arbitration agreement, in order to appeal WTO panel reports.

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4.331. As regards multilateral agricultural negotiations, Uruguay and Australia have a long-standing cooperative partnership. This cooperation goes back to the establishment of the Cairns Group in 1986, during the launch of the negotiations. It was in that forum that, coordinated by Australia, we championed a genuine, extensive and effective reform of agricultural trade in all three WTO pillars – market access, domestic support and export competition.

4.332. Our countries are also in full agreement as to the negotiations for the reform of fisheries subsidies, particularly those encouraging illegal, unreported and unregulated fishing and promoting overcapacity and overfishing. Along with Australia, Uruguay therefore co-sponsors five draft negotiating texts to tackle this matter.

4.333. We also share interests in plurilateral initiatives on domestic regulation of services, e-commerce and investment facilitation, and in the informal group on MSMEs.

4.334. For Uruguay, policies aiming to promote MSMEs are highly relevant. We therefore commend the Australian government's efforts to reform the regulatory environment for SMEs so as to minimize the regulatory burden. We also welcome the creation of the Small Business and Family Enterprise Ombudsman in 2016 in order to defend their interests.

4.335. Lastly, we should once again like to express our appreciation of this new opportunity to discuss Australia's trade practices, and congratulate the country's team at the Permanent Mission in Geneva, led by Ambassador Frances Lisson, for its work and active involvement in this Organization. We wish you a successful conclusion to this review.

JAMAICA

4.336. Jamaica is pleased to participate in this the eighth Trade Policy Review of Australia. We extend special welcome to Mr. George Mina, the Head of the Australian Delegation and commend him for the positive report presented. In particular, we wish to recognize Ambassador Frances Lisson and the staff of the Australian Permanent Mission to the WTO for their efforts.

4.337. Further, we wish to thank you Chair, as well as the Discussant, Ambassador Julian Braithwaite of the United Kingdom, for your respective contributions which have certainly served to enrich our deliberations today. Thanks also to the Secretariat for the comprehensive report provided.

4.338. Jamaica and Australia established diplomatic ties in 1974. As members of the Commonwealth, both countries share a long history of friendship and cooperation at the bilateral and multilateral levels, as well as an active trading relationship. Over the years, the balance of trade has been skewed in favour of Australia. In 2018, for example, Jamaica's total imports from Australia were valued at approximately USD 18 million and mainly comprised meat products.

4.339. Jamaica's main exports to the country are alcoholic beverages, including beer, rum and other spirits.

4.340. In terms of investment, there has also been increasing interest by Australia in Jamaica's mining sector. In March 2019, -based environment technology company, Phibion, established operations in Jamaica, which involves the provision of waste management services to the mining sector. Jamaica looks forward to strengthening its engagement with Australia in these and other areas in the coming years.

4.341. Jamaica joins in congratulating Australia on the considerable strides made since its last trade policy review in 2015. The reports highlight that despite a turbulent global economic landscape, Australia recorded 28 years of unbroken economic growth averaging 2.6% and is ranked as the 14th largest economy in the world, as a result of the government's strong macroeconomic policies. These have been accompanied by measures to further facilitate trade and investment and to boost Australia's international competitiveness. This is commendable.

4.342. Like Jamaica, the services sector remains a key economic driver for Australia which is recognized as a world-class provider of professional services, financial services, energy and mining- related services, environmental services and financial technology. In addition, Australia remains

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- 43 - among the top 10 agricultural exporters in the world, with agricultural, forestry and fisheries products accounting for 15.2% of the country's total merchandise exports in 2018.

4.343. Consistent with its commitment to an open, transparent and rules-based global trading system, Australia has continued to participate actively in the multilateral trading system. In this regard, we wish to acknowledge the constructive and proactive engagement of Australia, as an important member of the WTO, in the negotiations and regular work programme of the organisation. This is important given that trade remains the primary vehicle for the pursuit of economic growth, job creation and national development, as well as the attainment of the Sustainable Development Goals.

4.344. In closing, Jamaica congratulates the delegation of Australia and extends best wishes for a successful Trade Policy Review.

SRI LANKA

4.345. STATEMENT NOT PROVIDED.

MAURITIUS

4.346. The Mauritius delegation welcomes the Australian delegation for this 8th Trade Policy of Australia

4.347. It is indeed a great pleasure to participate in the Trade Policy Review of Australia - a major player in the multilateral trading system, and also a country with which Mauritius shares historical relations.

4.348. We support Australia's view that multilateral negotiations through the WTO are the most effective way to achieve trade liberalization on a global scale, including through improved market access and investment opportunities.

4.349. In this regard, we further commend Australia for its efforts to reform the multilateral trading system for a more transparent, predictable and ruled based system, including addressing the Appellate Body impasse, that would benefit developing countries, including SIDS. At the same time Australia has, to our appreciation, also maintained a strong track-record for submitting notifications to the WTO.

4.350. Mauritius believes that trade facilitation projects are key instruments to creating a better trading environment. In this regard, we take note that Australia has reached full implementation of its commitments under the WTO Trade Facilitation Agreement (TFA) across all categories. We hope that Australia would consider expanding its scope of support to include some developing countries, such as Mauritius, that are facing difficulties in fulfilling their category C commitments due to limited access to funding and capacity building programmes.

4.351. We congratulate Australia for its efforts to open up trade opportunities to signatories of Regional Trade Agreements, Preferential Trade Agreements and Free Trade Agreements. As Africa looks forward for upscaling its engagement with major partners, particularly in the context of the recently launched AfCFTA, we hope that Australia extends similar trade opportunities to African countries.

4.352. Mauritius further commends Australia for its contribution in developing rules in new areas related to trade such as investment facilitation, MSMEs, electronic commerce, and domestic regulation in services.

4.353. We also wish to highlight two specific projects being implemented by Australia which are a clear manifestation of its commitment to seeking innovative approach in boosting trade and development, as well as supporting MSMEs to integrate the global value chain.

4.354. Firstly, the Australian’s Landing Pads Programme established in five main cities around the world is surely an example to follow with the objective of boosting businesses of start-up companies and facilitate their development. We also appreciate Australia’s initiative to develop solutions to

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- 44 - problems faced by small businesses. Such an initiative could be replicated in other countries to help boost the SME sector.

4.355. Secondly, we note that Australia has introduced a National Innovation and Science Agenda with a view to assisting businesses to commercialize their Intellectual Property (IP) worldwide. As a small island state, Mauritius believes in IP as a tool to drive innovation and creativity for economic development. Mauritius is currently revamping its entire IP framework and would wish to collaborate with Australia in this regard.

4.356. To conclude Mr Chairman the Mauritius delegation wishes the Australian delegation a successful and fruitful review.

TAJIKISTAN

4.357. On behalf of Government of the Republic of Tajikistan I would like to extend a warm welcome to the entire Delegation of Australia led by Mr. George Mina, First Assistance Secretary, Office of Trade Negotiation.

4.358. I am very pleased to participate in the eighth Trade Policy Review of Australia.

4.359. We appreciate the efforts of the Government of Australia and the Secretariat in producing the reports circulated well ahead of the meeting and the Discussant for his insights. The Reports provide comprehensive details on the developments in Australia's economic and trade policy since its last review.

4.360. The Republic of Tajikistan commends Australia for significant achievements made since last TPR. Since its previous Trade Policy Review, Australia has continued to experience sustained economic growth. Real GDP grew by 1.9% in 2018/19, and the average annual increase of 2.6% between 2012/13 and 2017/18. Australia was the world's 12th largest economy in 2015 and the 14th largest economy in 2019. Australia's high standard of living has continued over the review period, with GDP per capita of USD 53.8 thousand in 2019.

4.361. We welcome the efforts of Australia, particularly to advance WTO reform discussions and its active engagement in a number of plurilateral and multilateral initiatives at the WTO.

4.362. Australia became a party to the plurilateral Expansion of the Information Technology Agreement (ITA) in 2016. It also ratified the WTO's Trade Facilitation Agreement (TFA) in June 2015. Australia became the 48th member of GPA on 5 May 2019.

4.363. During the review period, Australia submitted numerous notifications to the WTO and since 1995 participated in 9 cases as complainant, in 16 disputes as respondent and a third party in 109 disputes.

4.364. In conclusion the Republic of Tajikistan highly appreciates the hard work and strong commitment of Australia and wishes a very successful and productive Trade Policy Review.

CAMBODIA

4.365. My delegation joins others to express our warmly welcome the Australian delegation led by Mr. George Mina, First Assistant Secretary of Office of Trade Negotiations. We thank Mr. George for his opening remark and H.E. Mr. Julian Braithwaite of the United Kingdom as the discussant for his insightful statement reflecting the current Australian trade regime. We also thank the Trade Policy Reviews Division and Australia for making available both reports and documents for this review.

4.366. My delegation wishes to congratulate Australia for its remarkable economic performance with the economic growth at the average of over 2.5% during the period of three years, 2019, 2020 and 2021 respectively. We note with applause that Australia has maintained and formulated a transparent and liberalizing trade regime since its last review in 2015. We commend Australia for putting its efforts and active participation in upholding existing rules and building up rule-based multilateral system. Even though Cambodia is not a member of E-Commerce Joint Statement

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Initiative (JSI), we are aware that Australia has led this process in a transparent and inclusive manner. We encourage Australia to continue this practice.

4.367. We also commend the notable efforts made by Australia for taking into consideration the capacity constraints and challenges faced by LDCs including Cambodia in the WTO works as well as current WTO negotiations. We wish to encourage Australia to constantly continue and expand all of the above efforts in all areas of WTO works and negotiations including the JSI negotiations. We note with thank the Australian delegation in Geneva led by Ambassador H.E Ms Frances Lisson for their excellent cooperation in contributing to the WTO works, particularly the works which are involved with LDCs.

4.368. We appreciate the Australian generous supports to LDCs including Cambodia through granting full DFQF market access under the Australian System of Tariff Preferences (ASTP), as well as providing development assistance either through bilateral or multilateral channels. Cambodia wishes to associate itself with the statements made by Chad on behalf of the LDC Group in this context.

4.369. In regional cooperation, Cambodia associates itself with the statement made by Singapore on behalf of ASEAN Member States. Cambodia acknowledges the great efforts of both sides working towards achieving the ASEAN-Australia Strategic Partnership and following up the Plan of Action for the period of 2020-2024 which was adopted in 2019. We also appreciate and welcome the continued actions and support by Australia since the adoption of the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) in 2010.

4.370. In bilateral relation, Cambodia and Australia established diplomatic relations since 1952, and Australia has been recognized as a strong supporter for the Cambodian Peace Process. Since then Cambodia and Australia have maintained and strengthened our relation and commitment to trade and development cooperation.

4.371. Australia is an important trading partner for Cambodia. In 2019, we exported about USD 188 million mostly apparel and clothing items and foot wears to Australian markets; and import from Australia around USD 60 million. We appreciate the Official Development Assistance (ODA) provided by Australia to improve access to infrastructure, increase agricultural productivity, promote better health and education as well as promote gender equality in Cambodia. We note with thanks all of these activities and wish to cooperate with Australia for further success to come in the future.

4.372. Finally, my delegation would like to take this opportunity to express our satisfaction and commitment to strengthen deeper and further cooperation between Cambodia and Australia both in trade and investment relations, including the WTO works here.

4.373. I wish Australia a successful and meaningful conclusion of its 8th TPR.

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5 REPLIES BY THE REPRESENTATIVE OF AUSTRALIA AND ADDITIONAL COMMENTS

Introduction

5.1. Mr Chairman, in this second session of Australia's eighth Trade Policy Review, I would like to start by expressing our sincere appreciation to our Discussant, Ambassador Braithwaite, for his thoughtful analysis of Australia’s trade policies and practices.

5.2. Let me also convey our thanks to the many WTO Members who have submitted their statements despite the unusual circumstances this week. We welcome the views provided and note the importance of your feedback as part of this peer review process.

5.3. I would also wish to extend particular thanks to the WTO Secretariat for the flexibility they have shown us over recent days. We are grateful for all your efforts and creativity which ensured our TPR could proceed this week through this innovative virtual end to the process. We express our deep appreciation for the understanding of Spanish and French speaking colleagues, who were unable to hear a translation of the statements, this was an unfortunate consequence of the exceptional circumstances.

5.4. As we all well know, the TPR process is a rigorous one. The time and effort involved in responding to the nearly 600 questions is substantial. However, it is a process that Australia welcomes. This reflects Australia’s firm belief that the global trading system functions best when its Members are open and transparent about their trade and economic policies.

5.5. Australia is committed to improving transparency across the WTO and to modelling good practice in these areas, including through our commitment to meeting WTO notification requirements.

Responses to questions

5.6. Several recurrent themes arose in the questions from Members and in the statements provided. I cannot promise to respond to all topics raised by Members, but we do seek to respond directly to the most common themes.

5.7. We were pleased to see so many Member countries remarking positively on Australia’s approach to trade policies, noting how they have led to our strong record of economic growth. We were also pleased to see several Members noting that they look to Australia’s experience to inform their own trade policies.

5.8. We appreciated the comments from many Members on Australia’s commitment to the WTO, and our extensive work to support multilateral and plurilateral negotiations underway. As our Discussant noted, Australia has benefited greatly from the WTO, and we in turn invest heavily within it to strengthen the rules-based multilateral trading system.

5.9. We noted the strong interest in the development of Australia’s digital economy. As a leader in this area, Australia is keenly aware of the benefits of digital technology, including cost efficiencies, improved productivity and new revenue opportunities. As a Co-Convenor of the Joint Statement Initiative negotiations on E-commerce, Australia looks forward to continuing to promote digital trade, while also ensuring privacy and improving other protections for consumers.

Foreign investment

5.10. Several Members raised questions regarding Australia’s foreign investment review regime.

5.11. Let me reiterate that Australia welcomes foreign investment for the important and beneficial role it plays in the economy. Australia’s foreign investment framework strikes a balance between ensuring Australia remains an attractive investment destination and maintaining the community’s confidence in foreign investment – which is critical to ensure continued support for foreign investment and the many benefits it provides.

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5.12. Australia’s foreign investment regime is underpinned by a ‘negative test’ – meaning an investment will only be prohibited from proceeding if it is deemed contrary to the national interest and cannot be mitigated with conditions. This approach maximizes investment flows, while protecting Australia’s interests.

5.13. Several Members asked what is meant by the reference to the national interest. In the foreign investment context this can include national security, competition, other Government policies (including tax), the impact on the economy and the community, and the investor’s character.

5.14. Out of AUD 1.46 trillion of approved foreign investment in Australia since 2010, only four proposals have not been approved.

Anti-dumping/Trade remedies

5.15. A number of Members raised Australia’s trade remedies system and Anti-Dumping Review processes, including changes to our Customs Amendment (Anti-Dumping Measures) Act 2017.

5.16. Australia's trade remedies underpin our open market and enable ongoing liberalization to allow increased market access. The capacity to respond to anti-competitive pricing practices by overseas suppliers is a crucial element in the Australian Government's capacity to maintain business and community support for Australia's open trade policies.

5.17. Dumped and subsidized imports can affect our markets including through suppressing prices, distorting competition, reducing profits, and lowering employment. Consistent with WTO rules, Australia’s trade remedies system provides a mechanism to ensure Australian manufacturers can compete on a level playing field in circumstances where imported goods are dumped or subsidized and are proven, through due process, to be the direct cause of injury to domestic manufacturers.

5.18. Australia’s anti-dumping system is demand-driven. Investigations, and any resulting measures, are in response to applications from industry and reflect market conditions. Any anti- dumping measures imposed result from an independent, rigorous and transparent investigation, offering due process to interested parties and the possibility of both merits and judicial review.

Sanitary and Phytosanitary Measures

5.19. A number of Members raised changes to Australia’s biosecurity regime, including how risk analysis is carried out through a Biosecurity Import Risk Analysis (BIRA).

5.20. Australia is free from many pests and diseases present in other parts of the world. Australia maintains the necessary SPS measures to minimize the risk of these pests and diseases from entering Australia to protect Australia’s agriculture sector and unique environment.

5.21. Risk analyses conducted by Australia are science-based and conform to Australia’s WTO obligations.

5.22. A BIRA or a non-regulated risk analysis identifies if a proposed imported good meets Australia’s appropriate level of protection (ALOP). Australia’s ALOP has been set at ‘very low’ to protect human, animal and plant life and the environment.

5.23. Australia has not undertaken a BIRA since the Biosecurity Act 2015 came into force on 16 June 2016. However, Australia has completed numerous non-regulated import risk analyses for a range of trading partners.

Tax treatment

5.24. Several Members raised Australia’s tax regimes, particularly the extra-territorial application of our Goods and Services Tax (GST), including on digital products and services. Consistent with most of the world’s value-added tax systems, Australia’s GST rules follow the destination principle, which means GST should only be levied in Australia when consumption of the product or service supplied occurs in the indirect tax zone (Australia). Australia’s recent GST changes have relieved many non-resident businesses from having to register in Australia and charge GST where they only

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- 48 - make supplies, predominately of services, to businesses located in Australia. To ensure equitable GST treatment, resident Australian business recipients acquiring these supplies must now reverse charge the GST (to themselves) in appropriate cases. These principles align with the agreed OECD International VAT/GST Guidelines.

5.25. We hope this explanation also helps to clarify any concerns that Australia’s GST constitutes a de facto circumvention of the moratorium on electronic transactions. The GST is an internal tax, not a customs duty, and applies equally to domestic and imported goods.

CoOL

5.26. Finally, Australia's Country of Origin Labelling (CoOL) reforms were of interest to a number of Members. These reforms were introduced in response to consumer confusion about country of origin food labelling that had existed for a long time. Consumers had been calling for changes to simplify origin claims on foods and to make them clearer, more meaningful and easier to find. Businesses, though recognizing the value of country of origin labelling, often struggled to understand labelling requirements and/or to meet consumer expectations.

5.27. Australia's CoOL reforms apply to all food sold in a retail setting, and are intended to enable consumers to make purchasing decisions in line with their personal preferences.

Conclusion

5.28. To conclude, allow me to reiterate Australia’s unwavering commitment both to openness and to world trade rules. As a nation where one in five jobs depend on trade, standing up for these principles has never been more important for Australia.

5.29. On behalf of Australia, I would like to thank once again all Members for your active and constructive engagement throughout Australia’s TPR process. Our thanks also go to our Chair, Ambassador Teehankee, and Ambassador Braithwaithe, our Discussant. Finally, I would also like to thank the WTO Secretariat for your steadfast work in preparing the report for this review and your support throughout this week.

DISCUSSANT

5.30. Mr Chairman, I would like to start by congratulating the Australian delegates, led by First Assistant Secretary George Mina, for their active and open participation in their eighth Trade Policy Review. In particular, I want to commend their flexibility in ensuring that the review went forward despite the suspension of meetings at the WTO this week. They travelled quite some distance to participate in what became a virtual meeting. They have demonstrated a tremendous commitment to the Trade Policy Review Mechanism. Thanks are also due to all the WTO Members who participated in this review - the nearly 600 submitted questions from WTO Members and the statements that have been shared are testament to the value of the TPRM to the Membership.

5.31. I observed some common themes that stand out in the statements from Members, and have organized my closing remarks around these. The first is Australia’s deep commitment to the WTO and its active participation its work. The second relates to areas of concern identified by Members, and the last is other trade policy developments welcomed by Members.

5.32. Members commented on Australia’s strong support of the WTO and the multilateral trading system, from its exemplary record in meeting its notification requirements to its leadership role as one of the co-conveners of the Joint Statement Initiative on E-commerce and the Cairns Group. Australia is also actively engaged in the other JSIs and the fisheries subsidies negotiations, and is a key supporter of the Buenos Aires Declaration on Trade and Women’s Economic Empowerment. During the review period, Australia ratified the Trade Facilitation Agreement and the Protocol amending the TRIPS Agreement, became a party to the Government Procurement Agreement, and implemented the tariff commitments under the expansion of the Information Technology Agreement. At a time when the WTO is under stress, Members clearly welcome Australia’s continued commitment to the Organization.

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5.33. In any good performance review, it is not enough to look at what has been done well. It is just as important to look at those areas where there is room for improvement, and Members have done so in their written questions and in their statements. As I noted in my introductory remarks, some of these are issues that have been mentioned in previous Trade Policy Reviews, including concerns about the Luxury Car Tax, the Australian Wine Equalization Tax, the GST, Double Taxation Agreements, the use of trade remedies, and sanitary and phytosanitary and other regulatory measures in the food and agriculture sectors. Other concerns are newer, including those related to foreign direct investment screening. Many Members noted the link between Australia’s continued economic success and its commitment to openness and to the multilateral system, and urged Australia to resist the trend toward protectionism that is destabilizing the multilateral trade system.

5.34. The tone of Members’ statements was overwhelmingly positive, and therefore it is easy for me to conclude on a positive note, by touching briefly on other trade policy actions by Australia that were welcomed by Membe6rs. As a number of Members noted in their statements, Australia is deepening its network of trade agreements around the world. In addition, Australia has provided generous support to least developed countries. I would like to recognize in particular the AUD 1 million donation to help LDCs engage in global agricultural trade. Australia is implementing policies to help small and medium-sized businesses compete globally – reducing regulatory and tax burdens, and helping them break into export markets through the Landing Pads programme.

5.35. It has been a pleasure and an honour to serve as the discussant for Australia’s Trade Policy Review. I want to thank the WTO Secretariat for their efforts, above and beyond the usual extensive work required to prepare reports, compile questions, answers and statements from other Members, and organize the meeting, to make this first ever virtual WTO Review a success. And finally, I would like to wish the Australian delegation a safe and healthy return home.

UNITED STATES

5.36. We sincerely thank Ambassador Braithwaite for his contributions as Discussant and Head of Delegation Mr. George Mina for his thoughtful remarks this morning. We would also like to extend our sincere gratitude to the Secretariat for their tireless efforts during an uncertain and evolving situation due to the coronavirus pandemic.

5.37. We greatly appreciate the summary of discussion from day one and informative responses received from Australia to most of our advance written questions. We have studied them carefully and have a few follow-up questions, which we submitted to the TPR Division earlier this morning. Our follow-up questions primarily focus on the availability and timeliness of cargo clearance time data as well as measures that affect ethanol production and trade. We look forward to Australia’s responses to these follow-up questions.

5.38. In closing, we commend Australia for their exceptionally strong economic performance over the last decade, which is a testament to Australia’s sound macroeconomic policies. As one of Australia’s closet friends and allies, we look forward to our future work with Australia in the WTO as well as in bilateral and regional forums. We wish all those returning to capital safe travels and good health.

EUROPEAN UNION

5.39. The EU is pleased to be able to participate in the second day of Australia TPR in a virtual manner, thanks to the WTO Secretariat’s logistical efforts. We sympathize with the Australian authorities that travelled all the way to Geneva and were not able to participate in the meeting, but we highly appreciate the commitment and engagement of the Australian delegation in nevertheless making this TPR a successful event.

5.40. Australia has indeed played again a pioneering role by becoming the first WTO Member to experience a “virtual TPR" and thus demonstrated its commitment to the foundational value of predictability and transparency of this Organization.

5.41. Mr Chairman, in our statement on the first day, the EU indicated its willingness to increase cooperation with Australia on climate change. We noted that the EU-Australia Framework Agreement of 2017 contains sustainable development provisions, including on crucial climate topics, and that

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- 50 - we attach great importance to the sustainable development chapter in the current bilateral FTA negotiations. Today we would like to reiterate those important objectives.

5.42. On a different note, however, the EU is somewhat disappointed regarding the lack of commitment from the Australian authorities on several concerns that were already raised at the last TPR, in particular the issues of the luxury car tax and the wine equalization tax. We also note the lack of commitment of the Australian government to meet several EU Member States’ request for negotiations of bilateral tax treaties. We would have also liked to see more clarity and narrowing the concept of “’national security” to improve potential investors’ capacity to anticipate the government’s decision as to their proposed investments, notably as that the Government of Australia has repeatedly confirmed its policy of welcoming foreign investment in its replies to the questions.

5.43. The EU has limited itself to one follow-up question that has been sent in writing to Australia. It relates to the EU request for the EU origin marking to be recognized since the reply given to us does not show any legal impediment to that objective, which is important for the EU. We hope that the Australian authorities will consider this matter back in capital.

5.44. I would like to conclude by sincerely thanking the Australian delegation and the WTO Secretariat for their arrangements that allowed us to successfully go through this important review despite of the exceptional circumstances. The EU is confident that we will continue out excellent cooperation both in the context of multilateral trading system and bilaterally. Thank you.

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6 CONCLUDING REMARKS BY THE CHAIRPERSON

6.1. This eighth Trade Policy Review of Australia has allowed us to track and acknowledge significant developments in the economic, trade and investment regime of Australia over the past five years. I would like to thank especially the head of the Australian delegation, Mr. George Mina, First Assistant Secretary, Office of Trade Negotiations at the Department of Foreign Affairs and Trade and his Canberra-based colleagues, who made a very long journey to participate in this review under exceptional circumstances, as well as our discussant, Ambassador Julian Braithwaite, Permanent Representative of the United Kingdom, for his valuable remarks and insights. My gratitude is also extended to the WTO Members that provided advance written questions and approximately 40 delegations for their formal statements that allowed us to conduct the proceedings as a "virtual review".

6.2. In their statements, Members complimented Australia for sustained economic expansion, approaching nearly three decades of uninterrupted growth. The resilient performance was anchored in a sound institutional framework built on trade openness and a generally positive attitude towards foreign investment. Prudent macroeconomic policies, including a judicious fiscal policy, allowed economic stimuli and assistance to be provided in response to adverse conditions, whether in the world's markets or due to the vagaries of weather or climate change. Some of these vulnerabilities, such as the recent bushfires and the prevalence of the coronavirus, could be increasing. Additional support to enhance productivity and address other ongoing challenges would no doubt be required.

6.3. Members welcomed Australia's leadership role in the WTO and its active participation in almost all fora. Australia's broad, positive agenda notably spanned from institutional reform of the WTO, the preservation of a two-tiered dispute settlement mechanism, and reform of agriculture to the negotiations on fisheries subsidies, and discussions on rules for electronic commerce; services domestic regulation; investment facilitation for development; Micro, Small and Medium Enterprises (MSMEs), gender and the economic empowerment of women; as well as trade and environment issues. Australia's pursuit of enhanced transparency within the WTO framework was backed up by an excellent track record in the fulfilment of its own notification obligations. Australia's generous contributions to aid for trade activities, in combination with full duty-free quota-free market access for LDCs and extensive trade preferences for developing countries, were also highlighted.

6.4. In the period under review, Australia had ratified the WTO Trade Facilitation Agreement, leading to further simplification of customs procedures, and provided additional market opening with accession to the plurilateral Agreement on Government Procurement and implementation of the expanded Information Technology Agreement. Australia had also accepted the Protocol amending the TRIPS Agreement and was committed to strengthening IP protection and enforcement. At the regional and bilateral level, significant market liberalization was taking place under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Australia's free trade agreements with Japan and China. Further trade expansion was in the pipeline, as concluded FTAs were entering into force, and new FTAs were under negotiation.

6.5. Australia's MFN tariff regime was characterized by an average applied rate of 2.5% with lower rates for agricultural products than for other goods. Although these low rates were highly appreciated, the continued decline in applied MFN tariffs was also widening the gap between Australia's applied and bound regime under the WTO. Some of Australia's bound tariffs were high, particularly on textiles and clothing items, and a substantial number of tariff lines remained unbound.

6.6. Some Members raised specific concerns or issues regarding aspects of Australia's system of indirect taxation, including recent amendments to extend the Goods and Services Tax (GST) to cross-border trade in digital products and services, and advantages accorded to certain producers through the Wine Equalization Tax. The Luxury Car Tax, together with the proliferation of similar taxes at the state level, presented a distinct disadvantage to the exports of some trading partners. Australia was also called upon to reform its fiscal regime for offshore banking units.

6.7. Many Members pointed to Australia's agricultural sector as a highly successful outward oriented business with minimal tariff protection and low levels of domestic support. Noting the entry into force of the Biosecurity Act 2015 and related legislation, designed to modernize Australia's biosecurity system in a trade-facilitative manner, several Members nevertheless provided concrete examples of products that, in their view, continued to be subject to barriers or measures that were

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- 52 - more trade restrictive than necessary. Australia was urged to ensure that its sanitary and phytosanitary regulations and requirements be consistent with the WTO Agreement on the Application of Sanitary and Phytosanitary Measures. A new country of origin labelling system, affecting many types of imported food, was also a subject of wide interest.

6.8. It was noted that Australia continued to be an active user of anti-dumping and countervailing measures, with steel products accounting for more than 50% of the measures in force. Australia was encouraged to use trade remedies prudently going forward.

6.9. Some Members felt that, although Australia welcomed foreign investment in general, its review regime based on screening and evaluation of investment proposals against national interest criteria had been gradually tightened in a non-transparent manner. According to some Members, the Australian Government applied wide grounds for the screening of foreign investment that went beyond national security.

6.10. Australia received more than 500 advance written questions within the established deadline and, having opted for the alternative timeline, provided written replies to these and additional questions one week ahead of its Review. This TPR will be successfully concluded once replies to further late questions and follow-up questions are received in one month's time. The large number of questions and active engagement across the WTO Membership in this TPR is ample testimony of the crucial role that Australia plays in upholding, defending and enhancing the value and relevance of this institution. I congratulate Australia on the successful conclusion of this Trade Policy Review and reiterate my thanks to all delegations for their cooperation, good will and assistance.

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7 ELECTION OF THE NEW CHAIRPERSON OF THE TPRB

7.1. The airgram of 4 March 2020 (WTO/AIR/TPR/94/Add.1) presented us with an additional task today, that is the election of a new Chair. I sent you a message yesterday, informing you that, in the light of the very special circumstances, you would be invited to elect the new Chair in a somewhat unconventional fashion. Unless any objection would be raised by 12 noon on Thursday, 12 March 2020, H.E. Mr Harald Aspelund, Permanent Representative of Iceland, should be considered officially elected as the new Chairperson of the TPRB.

7.2. I am pleased to note that no objections have come forward. I therefore congratulate Ambassador Aspelund upon his election.

7.3. As this is my last opportunity to address you in my capacity as Chairperson of the Trade Policy Review Body, I would like to thank you all for your cooperation and invaluable assistance. Since I was elected Chairperson at the end of the TPR of EAC Members on 22 March 2019, I have had the privilege to chair several TPRB meetings: 12 meetings to consider Members' trade policies, and two meetings to consider the Director-General's trade monitoring reports. I also had the pleasure and honour to participate actively at the TPRM@30 Conference, which was an important milestone for the WTO. I am very grateful for the support given to me during this period by all Members, in particular the Members under review and the Discussants. I am convinced that the work we did in the TPRB over the past year has greatly contributed not only to increasing transparency in the multilateral trading system, but also generating useful and critical information for internal policy debate in the reviewed Members. During these uncertain times for the MTS, we should all devote our efforts at preserving the TPRM and making more use of it.

7.4. I do wish to specially appreciate the TPR Secretariat team headed by Director Willy Alfaro who have shared the invaluable professional guidance and support.

7.5. Finally, I would like to wish Ambassador Aspelund a successful and rewarding year ahead as he is taking over my responsibilities.

7.6. With this, I declare this "virtual" meeting closed. I thank you for your engagement.

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