PRESS RELEASE
PRESS/TPRB/203
25 September 2002
(02-5209)
TRADE POLICY REVIEW: AUSTRALIA
Transparency in trade policy, praised as “truly exemplary”
The Trade Policy Review Body of the World Trade Organization (WT0) concluded its fourth review
of Australia on 23 and 25 September 2002. The text of the Chairperson’s concluding remarks isattached as a summary of the salient points which emerged during the discussion.
The review enables the TPRB to conduct a collective examination of the full range of trade policies
and practices of each WTO member countries at re gular periodic intervals to monitor significant
trends and developments which may have an  impact on the global trading system.
The review is based on two reports which are pr epared respectively by the WTO Secretariat and
the government under review and which cover all aspects of the country’s trade policies, including
its domestic laws and regulations, the institutional framework, bilateral, regional and otherpreferential agreements, the wider economic needs and the external environment. A record of the
discussion and the Chairperson’s summing-up together with these two reports will be published in
due course at the complete trade policy review of Australia and will be available from the WTOSecretariat, Centre William Rappard , 154 rue de Lausanne, 1211 Geneva 21.
CONCLUDING REMARKS OF THE CHAIRPERSON
This meeting has contributed to a much better under standing of recent developments in Australia’s
trade and trade-related policies, whose transparency is truly exemplary. With such transparencyand the active interaction between the Australian delegation, the discussant and Members, the
outcome has been a very successful fourth Review of Australia’s trade policies, practices and
measures.
Members commended Australia for its impressive economic performance and sound
macroeconomic policies that helped to weather the Asian financial crisis. They noted its impressiveGDP growth, low inflation rate and falling unemployment level. Members took note of the
significant changes brought by the New Tax Syst em, including the General Services Tax, the
Luxury Car Tax and the New Business Tax. There was general agreement th at trade liberalisation,
including significant unilateral measures, together with ongoing structural reforms and prudent
macroeconomic policies had undoubtedly contributed to Australia’s strong economic performance
over the past decade.PRESS/TPRB/203
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ENDMembers congratulated Australia for its global orientation and its active role at the WTO, including
its support for launching the Doha Round. Members noted Australia’s strong commitment to themultilateral trading system and wondered about its position with respect to regional and bilateral
trade agreements as well as the implementation  of its 2001 undertaking on duty and quota free
access for Least-Developed Countries.
Members noted Australia’s low level of applied tariff protection and its plans to reduce unilaterally
remaining tariff peaks in sensitive sectors such as passenger motor vehicles and textiles, clothingand footwear by 2005. Australia was encouraged to re duce tariff escalation as well as to bridge the
gap between applied and bound rates. Despite a rece nt drop in recourse to contingency measures,
Australia remained a major user of anti-dumping actions. Government procurement remained amajor tool of industrial policy with Australia being the only major industrialized country that is not
a signatory to the WTO Agreement on Government Procurement. Certain Members sought
clarification on the liberalization of parallel imports and encouraged the strengthening of theintellectual property rights protection.
Despite low applied tariffs rates, assistance in form tax incentives, grants and concessional loans
to domestic production of goods and services  remained widespread. Members enquired about
plans for reducing support, particularly to the automotive sector. Members noted changes in
Australia’s SPS requirements and voiced conc ern over their trade restrictiveness and the
lengthiness of related procedures. They noted that single desk arrangements were in use for
promoting exports of certain agricultural items, which were seemingly competitive in international
markets. The also noted that several industry-specific schemes remained in place. Market accessconditions in the financial and telecommunications sectors as well as local content requirements
and other forms of intervention in broadcasti ng, advertising and motion pictures were also
discussed.
Members also sought clarification on several specific issues including:
• the impact of economic slowdown on commo dity prices and current account balance;
• screening procedures for foreign direct investment;
• duty and tax concessions;
• customs valuation and clearance;
• import licensing requirements;
• competition policy;
• maritime transport restrictions;
• tuition fees for educational services based on nationality;
• professional services; and
• electronic commerce.
Members expressed their appreciation of the oral  and written responses and explanations provided
by the Australian delegation; they looked forward to receiving written answers on outstanding
questions.
This brings us to the conclusion of our Review of Australia. The large number of advance
questions, numerous interventions and the high level of attendance indicate the important role
that Australia plays at the WTO. In this context, I would encourage Australia to continue in itsstrong support for the multilateral trading system. I also hope that Australia will take to heart the
concerns expressed by many Members, including on SPS and tariff peaks, while noting the
appreciation of Members for the largely open  and transparent trade regime that Australia
maintains.