Note: Advance written questions by WTO Members and replies provided by the Government of
Australia are reproduced in document WT/TPR/M/104/Add.1 and will be available online
at:  http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.WORLD TRADE
ORGANIZATIONWT/TPR/M/104
3 December 2002
(02-6635)
Trade Policy Review Body
23 & 25 September 2002
TRADE POLICY REVIEW
AUSTRALIA
Minutes of Meeting
Chairperson:  H.E. Ms. Amina Chawahir Mohamed (Kenya)
Page
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3II. OPENING STATEMENT BY THE REPRESENTATIVE OF AUSTRALIA 4III. STATEMENT BY THE DISCUSSANT 6
IV. STATEMENTS BY MEMBERS OF THE TRADE POLICY REVIEW BODY 7
V. REPLIES BY THE REPRESENTATIVE OF AUSTRALIA AND ADDITIONAL
COMMENTS 13
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 20WT/TPR/M/104
Page 3
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON
1. The fourth Trade Policy Review of Australia was held on 23 and 25 September 2002.  The
Chairperson welcomed the delegation from Australia, headed by Mr. Bruce Gosper, First Assistant
Secretary, Office of Trade Negotiations, as well as H.E. Mr. David Spencer, Ambassador and
Permanent Representative to the WTO, and the discussant, H.E. Mr. K. M. Chandrasekhar (India).  Asusual, the discussant would speak in his personal capacity and, in accordance with the established
procedures, he had made available in advance an outline of the main issues he intended to raise
(document WT/TPR/D/83).
2. The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of
the procedures of the meeting.  The report by the Government of Australia was contained in document
WT/TPR/G/104 and that of the WTO Secretariat in document WT/TPR/S/104.  Copies of advance
written questions, submitted by:  Switzerland;  Argentina;  Chinese Taipei;  the United States;  Japan;Korea;  Hong Kong, China;  the Philippines;  the European Union;  India;  Norway;  Chile;  Canada;
Malaysia;  Brazil;  Hungary;  Thailand;  and Singapore had been transmitted to the delegation of
Australia.  These questions, and responses provided by the representative of Australia, are reproduced
in WT/TPR/M/104/Add.1.
3. The Chairperson noted that Australia's sound economic policy environment and far-reaching
reforms had helped to raise competitiveness as well as to weather the Asian financial crisis.  Since its
previous Trade Policy Review in 1998 Australia had maintained its open and highly transparent trade
regime but sector-specific support had been kept relatively unchanged.  While Australia remained
committed to the multilateral trading system and had supported strongly the launch of the Doha
Round, it had actively pursued regional and bilateral trade initiatives.  These bilateral initiatives heldout the prospect of more ambitious liberalization within a short time-frame and she was sure that
Members would be interested in learning more about how the Government of Australia hoped to
accomplish this goal.
4. Members were reminded that a draft of the TPRB Annual Report for 2002 had been sent to
them for written comments.  She planned to propose the report for adoption on 9 October, followingher Conclusion for the Review of the Dominican Republic.WT/TPR/M/104
Page 4
II. OPENING STATEMENT BY THE REPRESENTATIVE OF AUSTRALIA
5. The representative of Australia stated that since 1998 trade liberalization, micro-economic
reforms and the reduction of the role of the Govern ment in the economy (corporatization/privatization
in electricity, natural gas, telecommunications) had continued.  The introduction of a broad-based
Goods and Services Tax (GST) was the most important reform; key priorities were labour market,welfare system and structural reforms.  To address public concern over the costs of economic and
trade reforms, his authorities had upgraded significantly the process of public consultations through
regular submissions and the establishment of the WTO Advisory Group.
6. The medium-term framework for the conduct of fiscal and monetary policies had enhanced
market confidence; in the light of a sharp rebound in business investment, economic growth in
2002/03 was estimated at 3.75%.  Low inflation (2.75% in 2002/03) had encouraged long-term
investment and innovation.   Australia was strongly motivated to maintain its liberal foreigninvestment regime, which had resulted in extremely low rejection rate (almost all in real estate),
especially in relation to significant acquisitions and new businesses.
7. Regional trade policy efforts, particularly in the context of the Asia Pacific Economic
Cooperation (APEC) forum, complemented and rein forced bilateral and multilateral trade policy
activities and objectives, including those relating to WTO implementation and negotiation areas.  InSeptember 2002, the ASEAN Free Trade Area (AFT A) and Australia-New Zealand Closer Economic
Relations Trade Agreement (CER) signed a Closer Economic Partnership (CEP) Agreement.  In late
2000, negotiations towards a WTO-consistent bilateral free-trade agreement (FTA) covering goods
and services had commenced with Singapore.  In May 2002, similar plans with Thailand had been
announced; discussions were also being pursued with the United States.  Full WTO-consistency was afundamental pre-requisite for Australia's participation in any FTA.
8. He emphasized that his country's open and transparent trade policies were designed to foster
an internationally competitive economy, encourag e trade flows and open markets abroad;  they
reflected, inter alia,  Australia's commitment to the multilateral rules-based trading system.  The
successful launch of the Doha Round and conclusion by the agreed deadline were at the top ofAustralia's trade agenda.  Australia's overall objective at the negotiations was to achieve significant
improvements in market access;  it had made negotiating proposals in specific areas but it would
remain active across the full range of the negotiating agenda.  Australia delivered trade-related
technical assistance and capacity building through WTO, APEC, AITIC, and bilateral programmes to
help developing countries participation in the WTO and the Round.
9. Tariffs were generally low and largely concentrated at rates of 5% or less.  In 1998, Australia
had reviewed its so-called "nuisance" tariffs and had reduced to zero tariffs on 267 lines.  Highertariffs affected the passenger motor vehicles (PMV) and textiles, clothing and footwear (TCF) sectors,
which were protected from a transparent tariff-only regime.  Australia was rolling back protection in
these industries through unilateral tariff reductions to 2005;  the timing of further reductions to PMV
tariffs was to be considered in the context of the current review of post-2005 arrangements for the
automotive industry.  He recalled Australia's low tariff protection for agriculture, the use of one tariff-quota on cheese, the deregulation of the domestic milk market, and recent measures for the
restructuring of the sugar industry.  85% of tariff lines were duty free for LDCs and over 90% of
imports originating in LDCs entered duty free; no exceptions, phase-in arrangements or quotas were
in force.
10. Australia made no apologies for its prudent/conservative approach to sanitary and
phytosanitary (SPS) requirements and biosecurity.  Quarantine was vital to Australia, given its
geographical isolation and export dependence on high-quality agricultural products.  Despite stringent
measures, diseases (papaya fruit fly, fire ants) had found their way into Australia and their eradicationWT/TPR/M/104
Page 5
had costed more than $A1 billion.  Costs of a major outbreak of Foot-and-Mouth Disease were
estimated at up to $A13 billion, the equivalent of three years of exports.
11. He considered that SPS requirements were WTO consistent;  they were based on scientifically
justified measures that were the least trade-restrictive possible.  Between 1995 and 2001, food imports
had grown by 57%.  Each Import Risk Assessmen t (IRA) process could be accessed through the
Internet and all stakeholders (including the country requesting access) were informed of
developments.  A new administrative framework for IRAs (to include more regular consultations,
technical issues paper for all IRAs, independent scientific peer review) was to be finalized and
implemented in late 2002.
12. Deregulation efforts in finance, insurance, telecommunications, air transport, and shipping
were to continue.  Australia had supported negotiations across all services sectors at the Doha Round.
13. The representative concluded by emphasizing that Australia's efforts to consolidate and
extend the openness of the economy were to continue.WT/TPR/M/104
Page 6
III. STATEMENT BY THE DISCUSSANT
14. The discussant  (H.E. Mr. K.M. Chandrasekhar) noted the impressive developments in
Australia's macroeconomic indicators as well as the temporary decline in residential construction
activity and the concern over future fiscal surpluses.  The New Tax System was a significant
development, in particular the introduction of th e single-rate and broad-base GST.  He also drew
attention to financial sector and labour market reforms as well as the review of legislation restrictingcompetition.
15. According to a private-sector survey, by mid-2002 there were signs of an economic
slowdown (drop in growth, retail sales) and loss of business confidence.  He sought the views of the
authorities on these trends, the short- and medium-term impact, and the ways to redress the situation.
In the light of export dependence on commodities, he wondered whether there were any product and
market diversification plans.
16. Despite a low average level, the applied tariffs on PMV and TCF items remained high.
Although tariffs on TCF were to be reduced by 2005, it seemed that there was no need for rates to be
so high in this low-tech sector when Australia was doing well in high-tech areas.  He asked whether
there were any other plans for dealing with these tariff peaks.  A complex set of concessional dutyarrangements remained in place despite recommendations by the Productivity Commission.
17. In the light of Australia's participation and recently strengthened interest in regional, bilateral,
and other preferential arrangements, he wondered about plans in this area and how these arrangements
were to be integrated with commitmen ts to the multilateral trading system.
18. Government procurement was used to promote local industry at the cost of imports, as well as
to encourage foreign participation in R&D.  Preferential treatment depending on the purchasing
agency was available to domestic and New Zealand suppliers.  The contract value covered by the
state-run Export Finance and Insurance Corporation wa s tied to local-content requirements.  He asked
about any intentions for changing the Government procurement regime and the related local-content
requirements, and enquired about Australia's position in the ongoing discussions in the WorkingGroup on Government Procurement.
19. SPS and quarantine requirements were stricter than those set by international bodies, thus
acting as a non-tariff barrier;  the introduction of the IRA had made the system more complex.  He
asked whether Australia was to relax this regime;  whether it believed that such import restrictionswould encourage other markets to adopt similar measures;  and whether this would not, in the longrun, adversely affect the market for Australian agricultural products.
20. He wondered whether there were any changes proposed in the single desk arrangements
regime affecting exports of certain agricultural and dairy products.  He sought details of theauthorities' approach towards state trading, particularly the granting of exclusive or special privilegesto state-trading enterprises importing agricultural products.
21. He sought information on the long-term plans regarding assistance to domestic producers in
the form of tax incentives, grants, concessional loans, state involvement in trade, and local-content
requirements.  He asked whether the authorities did not consider such measures trade distorting.
22. The automotive sector continued to benefit from Government support and a review of post-
2005 assistance measures was expected in July 2002.  He wondered whether this report had been
submitted to the authorities, whether its recommendations had been made public and, if so, whether
any decisions had been made.
23. He asked about the impact of the recession on information technology and the plans for the
sector, where Australia was a leading force.WT/TPR/M/104
Page 7
IV. STATEMENTS BY MEMBERS OF THE TRADE POLICY REVIEW BODY
24. Members appreciated Australia's sound macroeconomic policies and structural reforms that
had reinforced past unilateral trade liberalization.  These solid foundations had allowed Australia to
weather the Asian crisis and helped it cope with the recent deterioration of the global economy.  Many
Members highlighted developments in their bilateral trade and investment links with Australia.Several Members expressed their appreciation of Australia's active participation in the WTO, and its
role in launching the Doha Round.  Members comm ended Australia for further improving its highly
transparent legal and institutional framework for trade and investment.  Many Members commented
on the persistence of tariff peaks on TCF and PMV items as well as the stringent SPS/IRA
requirements.
25. The representative of Switzerland recalled his country's position among the 12 most important
foreign direct investors in Australia.  He welcomed recent tariff cuts and intended future cuts as well
as the drop in recourse to contingency measures.  Quarantine and inspection provisions were so strict
that in some cases they were precluding market access and were not compatible with international
rules and obligations.  BSE-related restrictions on beef and beef products were stricter than standards
set by international bodies.  Supplementary requirements for therapeutic goods for minimizing the
risk of transmitting Transmissible Spongiform Encephalopathies (TSE) seemed to provide littleadditional safety and significant additional costs/efforts to manufacturers;  plans in this area were in
contrast with global harmonization efforts, and Switzerland asked Australia to reconsider these
requirements.
26. While noting Australia's preferential schemes for local suppliers and the use of government
procurement as a major policy instrument, he expressed the hope that Australia would join theGovernment Procurement Agreement (GPA).  He sought information on the implementation and
possible amendments of the Mutual Recognition Agreement between Australia and the EU.  He
expressed the hope that government support to manufacturing activities in the form of direct financial
assistance and tax expenditures would fall in line with revised support plans.
27. The representative of Argentina commended Aust ralia for its commitment to the multilateral
trading system as well as the continuity in its trade and structural reforms.  The composition of
bilateral trade flows between his country and Australia had changed considerably while the two-way
investment flows remained important;  his country aimed to expand bilateral trade and investment
links with Australia.  In the ongoing negotiations, his country and Australia shared similar objectives,
including the liberalization and elimination of distortions in trade in agriculture.
28. The representative of Chinese Taipei noted his country's long-standing trade and investment
ties with Australia as well as their cooperation in several areas in the context of APEC.  The time
required for completion of IRA procedures meant that certain products continued to be denied access.
Access for preserved eggs, which were freely imported in Japan and the United States, had been
requested in 2000 but the IRA had not yet been completed.  She sought clarification on whether
Australia's extensive bans on all food containing konjac were appropriate SPS measures.  She asked
about the WTO consistency of grants given to small and medium-sized enterprises (SMEs) and toindustries in free-trade export zones for developing export markets.  She expressed concern and
sought advice regarding possible changes on market access restrictions affecting foreign-produced TV
commercials, foreign ownership of telecommunications equity, and the establishment of new foreign
branches of life insurers.
29. The representative of Canada commended Australia's commitment to genuine trade and
investment liberalization.  The launch of the Doha Round had been possible thanks to countries like
Australia with which his country shared the comm itment to achieving significant reforms in world
trade in agriculture.  The deregulation of segments of the agricultural sector had substantially reduced
the level of support to the industry and had contributed, inter alia,  to Australia's recent marketWT/TPR/M/104
Page 8
expansion for agricultural products.  He sought details of Australia’s agenda on bilateral trade
initiatives (including those with Singapore, Thailand, and the United States), which he understood,
would support comprehensive trade liberalization.
30. The representative of Japan indicated plans to further strengthen the bilateral relationship
between his country and Australia making it responsive to regional economic developments and
globalization.  In the light of its persisting dependence on commodity exports and manufactures as
well as its non-participation in the GPA, he urged Australia to seek more balanced results in
negotiations with a broader agenda.  He asked about the reason for further liberalization of parallel
imports as well as about the kind of rights-holders that would be granted the right of parallel
importation.
31. Regarding the single-desk exporting arrangements for wheat, which were to be maintained
until 2004, he asked about the outcome of the latest  review of the functioning of this arrangement.
Japan expected the authorities to implement the Productivity Commission's proposal to gradually
reduce the tariff rates on automobiles and their parts to 5% in 2010.  Government support to the
services sector had increased.  Regarding foreign ownership in the financial sector, he questioned the
intentions of the prior approval system for large-scale transfers under the notion of national interest.
32. The representative of Korea noted the complementary industrial structures of Korea and
Australia as well as their cooperation on trade and investment issues at APEC.  He welcomed the
forthcoming unilateral tariff cut initiatives in the PMV and TCF sectors.  He hoped for significant
improvements in the market conditions for government procurement and strongly recommended early
accession to the GPA.  He advised caution in initiating anti-dumping investigations and in making
final determinations.
33. Practices under the single-desk export arrangements of the Australian Wheat Board Ltd
(AWB) could have trade distorting effects and threaten food security.  He requested the authorities to
make public the information on the production volume and price of wheat.  The Automotive
Competitiveness and Investment Scheme (ACIS) created unfair competition conditions in the
domestic market and should be reviewed in the WTO.
34. The representative of China indicated the steady rise in bilateral trade flows with Australia
after 30 years of diplomatic relationship.  He urged Australia to reassess the need for and eliminate
the negative effects of unnecessary and burdensome SPS and TBT requirements.  Despite the drop in
average applied MFN rates, tariff peaks remained;  China requested Australia to reduce these tariffs in
sectors of export interest to developing countries, including China, which was a major exporter of
TCF items.
35. The representative of Hong Kong, China highlighted several aspects of its strong bilateral
trade and investment relations with Australia across a broad spectrum of areas.  Tariffs on TCF
products were relatively high and, given the interests of many developing countries, Australia should
consider significant cuts in the new round of negotia tions.  A liberal investment regime could enhance
further growth in telecommunications, banking, and insurance.
36. The representative of the Philippines, on behalf of ASEAN, recalled that under the AFTA-
CER Closer Economic Partnership, a target of doubling trade and investment by 2010 had been set.
He noted the decrease in Australia's current account deficit and the impact of the slowdown in the
global economy in 2001.
37. Tariff cuts had done little to reduce tariff escalation on TCF products, which were of major
interest to ASEAN, and these products had been removed from Australia's preferential tariffconcessions.  Very stringent SPS/IRA requirements had been maintained, which were stricter than
those promulgated by international bodies, and impeded market access.  Very few anti-dumpingWT/TPR/M/104
Page 9
investigations on ASEAN exports had led to affirm ative measures;  however, the mere announcement
of these investigations had adversely affected ASEAN exports to Australia.
38. The representative of the European Union indicated that Australia was its most important
trading partner in the Pacific region and that the EU was the leading investor in Australia.  They had
long-standing cooperation initiatives in various fields, and they were becoming increasingly partnersfor international stability and development in a sound world economy.
39. As Australia's main focus in the Doha Round negotiations relied on market access issues, he
sought explanations on how the rule-making elements  of the Round should be best tackled within the
Single Undertaking;  when Australia intended to  implement its 2001 commitment to offer quota-free
and duty-free access to products from LDCs;  and how the special and differential treatment was to be
translated into market access, and rule making aspects of the Round.
40. Coherence in Australia's approach to worldwide trade liberalization was brought into question
when access to its own market was concerned.  Given Australia's stance in other TPRs, he sought
some indication of how it intended to bridge the gap between bound and applied MFN rates.  He
sought an explanation of Australia's non-participation in the GPA despite its well-developed and open
government procurement regime.  He requested details on how industrial development objectives tied
to public procurement requirements and local-content requirements tied to export assistance could bereconciled with commitments under the WTO Agreement on Subsidies and Countervailing Measures.
41. While it was a sovereign right to set high animal health requirements, he believed that
Australia failed to meet WTO commitments because of the many protracted steps before quarantine
decisions were made, and the lack of scientific justification when setting standards higher than those
in international recommendations.  The Australian Quarantine and Inspection Service measures andthe Food Standards Code were more trade restrictive than required, thus making imports impossible.
These measures were allegedly based on the precautionary principle, but given Australia's opposition
to a clarification of the scope of precaution in the WTO (as proposed by the EU) he wondered
whether, in fact, Australia feared that this would limit the discretionary and restrictive application of
measures.  He wondered whether Australia would welcome such clarification along the lines of recentpanel and Appellate Body findings.
42. The Luxury Car Tax hit disproportionately the more expensive cars from the EU.  He was
interested to learn more about the practice of the national interest test for licensing foreign banks and
the public interest test for licensing foreign insurance companies.
43. The representative of Norway indicated that trade with Australia was concentrated on
shipping but that investment in offshore oil and gas was increasing.  He asked whether maritime
transport between Australia and New Zealand was free of trade-union-related restrictions.  He soughtinformation on the possibility of establishing cargo handling companies, and any efforts to open this
sector to competition.
44. He wondered whether Australia would eliminate tariffs on imports from LDCs.  In the light of
Australia's position on the elimination of agricultural export and domestic subsidies, he sought
clarification on the strengthened use of direct financial assistance to the sector and the funding ofinstitutions.  As Norwegian exports of fish and seafood to Australia were declining and the import
regime for fish had been subject to several cases in the WTO Dispute Settlement Mechanism, he
enquired about changes made to the regime.  He recommended an examination of Australia's trade
policy with regard to educational services.
45. The representative of India refered to the various bilateral for a within which India and
Australia reviewed and augmented their economic and trade relations.  The pursuance of
comprehensive regional trade initiatives constituted a recent evolution for Australia.  He hoped thatWT/TPR/M/104
Page 10
steps would be taken to ensure that this move did not lead to unpredictability in market access of third
countries through trade diversion.
46. Australia's initiatives for further liberalization of agricultural trade contrasted with its highly
stringent SPS/TBT regime, which had adversely affected exports of agricultural products of interest to
developing countries.  In the spirit of the Doha Development Agenda, he requested significant tariffreductions for TCF items of export interest to develo ping countries.  He looked forward to Australia
undertaking more commitments in the ongoing services negotiations in sectors and modes of interest
to developing countries.
47. The representative of the United States stated that Australia's confident global orientation and
market-opening initiatives had helped enhance its competitiveness and had also benefited its trading
partners.  Bilateral economic and cultural ties were strong and his country was the largest foreign
investor in Australia.  He urged the authorities to  eliminate uncertainty resulting from the investment
screening process.  By anticipating the potential impact of the information technology evolution,
Australia was well positioned to boost its economic potential.  He sought clarification on whether it
was considering accession to the GPA.  Australia had to tighten restrictions on parallel imports and to
consider ways to address copyright piracy, software decompilation, and other intellectual property
issues, including enforcement.
48. He urged Australia to review its SPS regulations and requirements so as to ensure that they
are the least trade-restrictive possible while at the same time ensuring the health and safety of its
agriculture and food supply.  He sought comments on de-regulatory steps to be considered for ending
its involvement in promoting certain agricultural prod ucts as well as in the telecommunications sector.
He believed that Australia should eliminate remaining market access barriers in the financial,telecommunications, broadcasting, advertising, motion pictures, and other services areas.
49. The representative of Chile indicated that Australia was a key trading partner and ally in
several fora (e.g. Cairns Group, APEC).  She asked for more information about the prospects for the
legislative review that had been undertaken in the context of competition policy.  IRA procedures
were excessively lengthy and not very transparent.  Chilean exporters of edible grapes had to waitseven years (rather than the average one or two years cited in the Secretariat Report) for the outcome
of the IRA technical procedures.  In the light of the ongoing IRA revision process, she sought details
of elements such as the IRA stages, duration, and participation of exporters in the process.  As
Chilean exporters wanted to further diversify their agricultural exports to Australia, she sought more
information on IRAs affecting other products.
50. The representative of Brazil commended Australia for furthering the objectives and principles
of the multilateral trading system, particularly the elimination of market access barriers and trade
distorting government support in agricultural trade.   A number of measures and practices, including
quarantine and IRA requirements, were a source of concern, and could also impact on Australia's
commitments on distribution services under the GATS.  Other topics of concern were the use of
contingency measures, the occurrence of tariff escalation, and tariff quota administration.
51. Brazilian exporters were concerned because Australia had suspended tax exemptions in the
amount of Australian cents 0.38143 per litre on transactions with ethanol;  furthermore, a production
subsidy for ethanol had been introduced.  Tax-related changes would adversely affect ongoing export
contracts, although the Australian Parliament had yet to approve the proposed regulation.  Brazil
sought additional clarifications on the scope of the measures and their relation with Australia's WTO
commitments.
52. The representative of Hungary shared the positive evaluations and the concerns of other
delegations.  Concerning foreign investment, he asked about the utility of the screening process.WT/TPR/M/104
Page 11
53. As a Cairns Group country, Australia had "offensive" interests and had formulated a number
of extremely ambitious proposals for agricultural trade liberalization.  While agricultural exports
remained important, the already low share of food and live animals in total imports had dropped
further as a result of Australia's comparative advantage and the severe SPS measures, which kept the
market largely closed.  He wished to know which countries were eligible to export various meatproducts to the Australian market.  As single-desk arrangements remained in force, he wondered
whether a competitive exporter like Australia needed such trade distorting tools.  He expressed
concern over the protection of geographical indications for wines and a few other food items and
invited Australia to join the negotiations in this area in a more constructive manner.
54. Bound tariffs for industrial items were extremely high for a country at Australia's level of
economic development;  tariffs were also extremely high on some TCF items of interest to developing
and least developed countries.  He invited Australia to join the initiatives of countries, includingHungary that provided fully duty-free and quota-free access to all products of LDCs.
55. The representative of Mauritius explained the historical developments in the trade relations
between his country and Australia, including the latter's membership at the Indian Ocean Rim
Association for Regional Cooperation.  Mauritius was no longer a food-aid recipient from Australia.
He acknowledged Australia's institutional efficiency through the role of the Department of ForeignAffairs and Trade in better coordination of matters related to trade and foreign policy.  Australia
provided generous support ($A140 million multi-year trade-related assistance, and $A460,000 to the
Doha Development Agenda Global Trust Fund) for capacity building and other efforts to assist
developing countries' participation in the multilateral trading system.  He asked whether Australia was
considering the re-introduction of trade-policy-focused AUSaid technical-assistance courses forcountries in Sub-Saharan Africa.
56. He wondered whether Australia was ready to extend LDC treatment to small and vulnerable
economies and SIDS, in particular those dependent on single commodity exports;  and whether
Australia was willing to assist developing countries in better understanding and meeting its SPS
requirements.  He thought that many delegations would like to benefit from Australia's expertise incompetition policies.  He sought explanations on th e domestic support provided to the sugar industry,
despite its role as a leading export commodity and a pillar of several domestic rural/regional
economies.
57. The representative of the Czech Republic stated that bilateral trade flows with Australia had
doubled during the last decade and Australia had become an investor in his country.  He commended
Australia's economic performance and commitment to trade liberalization at multilateral and regional
levels as well as action taken unilaterally.  Regarding the Doha Round, more emphasis had to beplaced on an appropriate balance between trade liberalization and rule-making so that benefits were
delivered to all Members.
58. He believed that Australia's SPS requirements could be improved to ensure that they were the
least trade restrictive possible and to provide meaningful market access opportunities.  He sought
more information on intentions regarding future tariff reductions and the continuation of domesticsupport programmes in the TCF and PMV sectors.
59. The representative of Kenya complemented Australia on its economic and trade policy
achievements as well as on its contribution in a range of capacity-building efforts for developing
countries.  He encouraged Australia to address unilaterally the issue of remaining tariff peaks and
escalation on TCF items of export interest to developing countries.  He appealed to Australia torefrain from evident protectionist SPS and quarantine requirements, otherwise its championing of a
fair and market-oriented trade in agriculture would be viewed as rhetoric.  Despite small bilateral
trade flows, tourism stood out as having the bigge st potential for trade between the two countries.WT/TPR/M/104
Page 12
60. The representative of New Zealand noted that continuous economic reforms had allowed
Australia to attain the fastest economic growth of any developed country in 2001.  He indicated
numerous aspects of and benefits from the very close economic relationship between New Zealand
and Australia, particularly under the CER.  Currently, they were undertaking the review of their
bilateral Government Procurement Agreement and in 2003 there would be a formal review of theTrans-Tasman Mutual Recognition Agreement.  Both countries had similar points of view in several
WTO areas and in different fora (Cairns Group, APEC).  Both countries were export-dependent and
had a major stake at maintaining an open and healthy world trading environment.
61. Australia and New Zealand had the lowest levels of agricultural support among the OECD
countries and, unlike other WTO Members, they had addressed unilaterally trade distorting measures
(e.g. deregulation of dairy sector).  It was under stood that the new IRA would include earlier and
more regular consultation with stakeholders, and an independent peer scientific review.  Australia andNew Zealand were developing an effective mechanism for discussing biosecurity issues in a
consultative group.
62. New Zealand encouraged Australia to continue to reduce its effective rates of assistance to
TCF and PMV industries.
63. The representative of Uruguay referred to Australia's role as a defender of agricultural trading
interests, as well as to its macroeconomic performa nce resulting from the continuity of its unilateral
trade liberalization programme and reforms.
64. The representative of Ecuador recalled that a few years previously his country had been the
only Latin American exporter of bananas to Austra lia;  however, this was no longer possible.  He
requested information on this import ban, and on the progress/completion/results of the IRA onbananas, which was initiated upon the request of the Philippines in 2000.  He enquired whether this
IRA was to be modified or extended to the new framework set up for such an analysis;  and whether,
upon completion of the IRA, banana imports would be subject to additional (regional) quarantine or
inspection procedures.  He expressed concern that a developing country such as Ecuador had to reach
a special protocol for each agricultural good, in order to have access to the Australian market.
65. The representative of the Slovak Republic commended Australia's performance, transparency
and achievements in several policy areas.  Despite low tariff protection in agriculture, an
unnecessarily protectionist SPS policy was in place, and strong state trading further limited
competition or market access in this sector.  In the light of tariff peaks in PMV and TCF items, he
encouraged Australia to review statistics for these groups of products.  He commended tax
simplification but criticized the introduction of the Luxury Car Tax (LCT).  Despite commitments
under the GATS, some restrictions remained in th e services sector.  He sought comments on and
reasons for increased direct financial assistance, tax expenditures, and funding to several services
activities.WT/TPR/M/104
Page 13
V. REPLIES BY THE REPRESENTATIVE OF AUSTRALIA AND ADDITIONAL
COMMENTS
66. The Chairperson invited the representative of Australia to focus his responses on three main
themes:  (i) economic environment;  (ii) trade policies and measures;  and (iii) sectoral policies and
measures.
(i) Economic environment
67. The representative of Australia indicated that some downside risks to continuation of growth
had emerged recently, including the impact of a drought on farm production and a weaker-than-
expected global recovery.  Activity in the build ing sector had remained higher than expected.
Household consumption and underlying business inve stment continued to grow strongly.  Growth in
business investment in 2002-03 was estimated at around 12%.
68. While the WTO negotiations were the highest priority, Australia was willing to consider
FTAs that offered the prospect of substantial benefits in terms of market access in a timely manner.
Australia had tabled proposals on a range of systemic and procedural issues as well as the definition
of "substantially all trade" for WTO-conforming RTAs.
69. Under the legislation governing foreign investment proposals, the Treasurer could reject
applications to control an Australian business or to acquire an interest in urban land if the matter wasconsidered to be “contrary to the national intere st”.  The presumption was that foreign investment
proposals were generally in the national interest and should go ahead.  The Foreign Investment
Review Board provided advice to the Treasurer on large or sensitive proposals; however, it was the
Treasurer who defined whether an investment was contrary to the national interest.  In preparing its
advice, the Board considered whether a proposal was inconsistent with: existing government policyand law – taking the view that existing policy and law defined important aspects of the national
interest (for example, environmental regulation and competition policy); national security interests;
and economic development.  Where national interest concerns were identified, the Board would seek,
where possible, to formulate conditions that addressed these concerns.
(ii) Trade policies and measures
70. Australia attached a high priority to reform of world agricultural trade which was in urgent
need of integration with the multilateral trading sy stem.  However, Australia's interests at the WTO
covered other sectors (manufactures, services, and minerals) and systemic issues (dispute settlement);
its negotiating proposals included areas such as the DSU review, intellectual property rights, regional
trading arrangements, fisheries subsidies, competition policy, trade and the environment, and services.
The main development dividend from the WTO negotiations, and the best way to strengthen the
commitment of all to the multilateral trading system, would be found in improved and expandedmarket access.
71. Australia had systematically and unilaterally reduced its tariffs on PMV and TCF over recent
years.  Quotas in these products were abolished some years ago.  The timing of post-2005 reductions
to PMV tariffs would be considered at the current review of post-2005 policy arrangements for the
automotive industry.  A substantive public inquiry on post-2005 assistance to the TCF sector was tobe undertaken in late 2002, and this would address tariff protection to that sector.
72. Australia's access conditions for goods originating in LDCs compared favourably with those
of other developed countries whose schemes sometimes involved exceptions and phase-in
arrangements for sensitive industries, including quotas in sectors of most interest to developing
countries, such as agriculture.  LDC imports that were subject to duty were essentially TCF and PMVitems, including parts, but these items still received  the 5% preferential margin accorded to importsWT/TPR/M/104
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from LDCs.  He thought that there were not many LDCs exporting PMV products.  In response to
Australia's international commitments to the objective of duty-free and quota-free market access for
all LDC products, an analysis of the implementation effects was being undertaken.
73. The imposition of new anti-dumping measures had decreased steadily since 1998.  The
number of cases initiated remained higher than the number of cases resulting in the imposition ofmeasures, but this was not evidence that cases were not worthy of investigation.  The application
arrangements in force since August 2001 requested more comprehensive information from applicants.
Since then, five investigations had been initiated and one completed (resulting in the imposition of
measures).
74. Australia believed that the WTO Agreement on Government Procurement (GPA) contained a
number of flaws and, thus, had no plans to accede.  Market access commitments were based on
reciprocity; there were complex and onerous administrative provisions and costs, including thoseassociated with statistical requirements;  and the GPA did not necessarily encourage open and
transparent systems of government procurement.  Many of the major industrialized countries had
acceded to the GPA on a highly conditional basis, which could make these markets more restrictive
than Australia's and enabled them to discriminate against non-GPA members.  Further, some
members of the GPA had been able to exclude large portions of their government purchasing marketsfrom foreign competition.  Nevertheless, Australia was a supporter of an agreement on transparency
in government procurement.
75. Australian governments were significant purchasers of goods and services and as such could
use their positions to promote their economic and social goals and to obtain the best value for money.
Their procurement policies and business opportunities were publicly available, including via theInternet.  The Commonwealth did not have price preference policies.
76. Australia maintained very high standards of intellectual property protection in full conformity
with WTO obligations.  There was no evidence that parallel importation had increased the likelihood
of trade in pirated goods.  In order to remain amongst the countries with the lowest rates of copyright
piracy, appropriate safeguards were provided in the legislation.  Legislation had been amended so
that, in a civil action for infringement of copyrigh t arising from the commercial (parallel) importation
of a sound recording, the defendant had a legal burden of proving that an imported copy was a non-
infringing copy.
77. The Copyright Amendment (Computer Programs) Act 1999, which introduced decompilation
(or reverse engineering) for interoperability, followed the spirit and approach of the EC Directive on
the Legal Protection of Computer Software.  The need for effective security for systems against
attacks from hackers and viruses had emerged only in recent years.  Under the U.S. Digital MilleniumCopyright Act of 1998, bona fide  security testing was permissable.  The 'fair use' exception to
copyright in the United States, under which decompilation for security testing would be possible, was
much broader than 'fair dealing' under Australia's Copyright Act.  In approving these amendments,
very careful consideration had been given to compliance with copyright treaty obligation.
78. The discussant stated that it was heartening to know that growth was forecast at 3.75% for
2002/03, many sectors had remained very strong (building sector, household consumption), and that
underlying business investment was also growing strongly.  He sought more details regarding the
likely impact of the global recovery on the domestic economy and action plans in this respect.  He
asked about the precise impact of the drought on agricultural production and exports.
79. Regarding foreign investment approval by the Tr easurer, "national interest" was fairly loosely
defined and its interpretation was entirely at the discretion of the Treasurer.  In the context of the
ongoing discussion in the Working Group on Trad e and Investment, he asked how the national
interest consideration would fit in to the proposal for a multilateral agreement on investment.  HeWT/TPR/M/104
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referred to press/media discussion on strong trade-union responses to foreign take-overs of certain
icons of the Australian industry (e.g. ANSET airlines, Kraft food, HP) and asked how Australia
perceived these developments.
80. Concerning tariff peaks on TCF and luxury cars, he thought that Australia should pay
particular attention to this matter in the context of the ongoing negotiations;  a decision could bereached even before 2005.  He noted that there had not been any comments on local-content
requirements implemented through government procurement practices and R&D schemes.
81. The representative of Australia explained that the drought was cyclical and of continuous
concern.  It had an impact in certain areas, but certainly not across the whole continent;  its impact on
GDP and growth was very difficult to analyse.  Despite the weak global economy, the sources of
domestic growth remained very strong and a pick-up in business investment was envisaged.
Emerging risks were to be dealt with through a very tight fiscal balance, and through continuousrestructuring, which would improved productivity , the source of much economic growth in recent
years.
82. National interest was often quite difficult for governments to define.  Three broad areas were
taken into account:  existing policy and law, national security interest, and economic development.
National interest was particularly relevant in only a small number of cases.  The rejection rate forforeign investment applications was extremely low and was concentrated in real estate.  There had
occasionally been quite important domestic debates about foreign investment acquisitions, including
in the beef industry.  By and large, more Australians accepted foreign investment as a very necessary
element for the health and the growth of the econom y.  Australia itself was a very large investor
abroad (eighth largest investor in the United Stat es) with global interests, a reason for accepting and
participating actively in WTO negotiations on this issue.
83. A public inquiry in the overall context of the TCF industry restructuring was to be carried out
at the end of 2002.
(iii) Sectoral policies
84. The representative of Australia reiterated that his authorities made no apologies for the
conservative approach to quarantine or for the world-class and justifiably stringent measures to
protect human, animal, and plant health and environment from SPS risks.  Australia's animal and plant
disease status was unique:  it was free of most of the serious pests and diseases affecting other
countries; those faced with the costs of disease outbreak/control and production losses should
understand its concern.  An outbreak of Foot-and-M outh Disease (FMD) could cost Australia between
$A8 billion and $A13 billion; a major FMD-outbreak simulation had been conducted recently and, in
this context, contact had been made with animal health authorities around the globe.
85. Australia invested heavily in maintaining quarantine protection;  in the 2001 Budget,
additional funding of almost $A600 million had been committed to strengthen quarantine controls,
particularly at the border.  More than $A1 bill ion had been spent in eradicating brucellosis and
tuberculosis, and in controlling incursions of pests (papaya fruitfly, fireants) and outbreaks of disease
(Newcastle disease, avian influenza).
86. Australia committed substantial resources to pre-border risk management, including through
surveillance, monitoring, and capacity-building in neighbouring countries whose international
competitiveness was being strengthened in this way.  A more consultative, transparent, and
scientifically robust process for IRA had been published and put into effect in 1998.  All interested
parties, including other countries, were kept informed of the progress of individual IRAs, and the IRAprocess was clearly and transparently documented, including through the Internet.  The administrative
framework for IRA was being fine-tuned, and a new IRA Handbook would be published shortly.WT/TPR/M/104
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87. Over 40 full-time professional staff were working on around 50 IRAs;  over 250 SPS-related
market-access requests (many of them of long duration) from over 50 countries were outstanding.
Risks had to be managed in a manner consistent with Australia's necessarily-high ALOP and its WTO
rights and obligations.  In simple cases, IRAs could be completed in one to two years, and around half
of the IRAs completed since 1997 had taken two years or less;  however, complex IRAs requiring theexamination of a large number of pests and diseases, could take considerably longer, particularly in
the absence of readily available technical information.  Timely responses by the proponent country to
requests for technical information could substantially reduce duration.
88. Australia was actively involved in the work of all three international standard-setting bodies
in agriculture.  Where possible and appropriate, Australia based its measures on international
standards, but in many cases the international standards did not deliver the level of protection required
by Australia and in the case of plants and plant products, often did not exist.  Its national standards foranimals and animal products were as closely as possible based on (and not necessarily more restrictive
than) those of the OIE, but some reflected different production conditions.
89. The WTO rules (Article 5.7 of the SPS Agreement), allowed for the legitimate application of
precaution in circumstances of scientific uncertainty, and provided appropriate checks and balances.
Australia was strongly opposed to any shift in the balance of rights and obligations in this respect.The Plan of Implementation at the recent World Summit on Sustainable Development specifically
referred to the promotion of science-based decisi on-making and clearly affirms Rio Principle 15.  He
did not understand the EU's reference to recent panel and appellate body findings, as he understood
the finding to be that precaution was reflected in the SPS rules.
90. Australia had strengthened its quarantine measures to protect both human and animal health
from the risks associated with BSE and other transmissible spongiform encephalopathies (TSEs),
including possible contamination of animal feed.  The Food Standards Code had been amended to
require all beef and beef products for human consumption to be derived from animals free of BSE.
Implementation of this WTO-consistent standard was based on certification by the exporting country;
the stringency of the certification requirements was proportional to the assessed risk.
91. State-trading enterprises (STEs) were an important part of the export marketing arrangements
for a small number of Australian commodities (wheat, su gar, rice).  In the absence of any hard facts,
he rejected any suggestion that their activities could be trade-distorting.  STE agricultural marketing
arrangements were based on self-reliance, grower ownership and control, and a fully commercial
approach to marketing.  AWB Ltd did not command an unfair market advantage in the international
wheat market and it did not engage in unfair trading practices such as predatory pricing.  AWB Ltd
did not charge higher prices domestically in order to subsidize exports nor did it receive any directform of assistance from the Government.
92. The LCT was an equity measure to prevent disproportionate falls in the price of luxury
vehicles compared to standard model vehicles when the GST of 10% replaced the Wholesale Sales
Tax of 45%, which previously applied to luxury vehicles.  The LCT applied to imported and
domestically produced vehicles, and price was the sole factor relevant to its application.
93. Australia had decided to remove the blanket prohibition on foreign takeover of any of the
major banks in 1997.  An independent inquiry had concluded that there was no economic
disadvantage in some increase in foreign ownership, but that the large-scale transfer of Australian
ownership of the financial system to foreign hands would not be in the national interest, as it would
restrict options for the future development of the financial system and affect Australia's place in theregional and global economy.
94. The prohibition on life insurance branching had been introduced in the context of major
prudential reform, which saw, amongst other things, the establishment of new, technically detailedWT/TPR/M/104
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liability valuation and capital requirements, as well as detailed requirements in respect of the equitable
allocation of company profits between shareholders and policyholders.  In this context, satisfactory
prudential supervision could best be achieved where the life insurance company was an Australian
incorporated entity.
95. A number of interventions in the audiovisual sector had social and cultural objectives, which
would be taken into account in trade negotiations.  These interventions were not blocking trade as:
about 83% of the Australian box office was taken by films from the United States (in 2000);  the
production cost of Australian films released in 2000 was about 0.5% of the production costs of all
films released in Australia;  and imports of television programmes were four times greater than
exports (1999/00).
96. The discussant stated that quarantine procedures were much too long, and therefore acted as
an effective trade barrier.  Reference had been made by delegations to those affecting preserved eggs,
table grapes, and bananas.  He thought it desirable for Australia (a major producer and exporter of
agricultural items) to undertake a risk analysis of the likely impact of such measures on other
importing markets.  He asked whether there could be any kind of response from other markets to such
measures and whether that would, in the long run, affect global trade in agriculture.
97. Questions had also been raised on issues such as the competition policy,  domestic support to
agriculture, forestry and fisheries, and regulation on ethanol as well as the opening up of maritime and
cargo handling services.
98. The representative of Australia indicated that most of these issues were covered in his
delegation's oral and written responses.  He was very much aware of the wide interest on the rigorous
and WTO-consistent IRA process.  Australia had an interest in ensuring a rules-based system andproper observance of the SPS Agreement.  Concerning domestic support to agriculture, he noted the
recent deregulation and adjustment efforts in the milk sector.  A similar initiative was soon to be
undertaken in the sugar industry as Australia was probably the most competitive producer in the
world.  All structural adjustment measures were fully reported and fully consistent with the WTO
undertakings.
99. The representative of Japan noted that foreign investment conditions for the financial sector
differed from those in other sectors;  he noted specifically, that a large-scale transfer of the ownership
in the financial system would be contrary to the national interest.  He wondered what constituted
large-scale.  It was a subjective condition with a chilling effect on foreign investors.  He asked
whether it would be possible to define the exact percentage of foreign ownership.
100. The representative of Hungary recognized that Australia could base its quarantine/SPS
regulations/requirements on its individual conditions, but he wondered about the real specificities of
the Australian flora and fauna;  a number of countries had special natural conditions.  He had some
doubts concerning the level of risk that Australian SPS specialists were ready to accept;  the
acceptable risk appeared to be close to zero.  Australia considered precaution acceptable only when
based on science.  But what was a scientific basis? What was an acceptable level of risk?  How did it
affect trade interests of other countries?
101. Australia had offensive trade interests when it came to opening other countries' markets but
other partners who wished to sell in Australia could not do so.  He asked which countries, under
Australian veterinary rules, were allowed to supply a number of designated meat products to the
domestic market.
102. He disagreed with Australia's position that STEs and similar arrangements were not trade-
distorting.  In this context, he referred to GATT Ar ticle XVII disciplines, to the term "state tradingWT/TPR/M/104
Page 18
country", to related trade defence practices, and to GATT/WTO accession conditions for countries
with a predominant share of STEs.
103. The representative of the EU endorsed the statement of the representative of Hungary on SPS
and IRA requirements.  He appreciated that the LC T was applied in a non-discriminatory manner.  He
sought a comment on the disproportionate impact of the LCT on imported cars.
104. The representative of Brazil reiterated his request for clarification on a recent measure
affecting imports of ethanol.  While he understood that there were time-zone-related difficulties in
preparing replies, he considered that receiving replies was an important element for the good
functioning of the TPR process.
105. The representative of Chinese Taipei asked whether Australia had settled what percentage
constituted substantially all trade in its FTAs, and asked for some illustrations of how it avoided
raising barriers against non-participating countries.
106. She believed that Australia should take into cons ideration the benefits of liberalization of the
government procurement market.  She asked for comments on schemes or grants given to domestic
small and medium-sized enterprises;  to the incentives in free-trade export zones for the purpose of
developing export markets;  and how these programmes complied with the WTO Agreement on
Subsidies and Countervailing Measures.  She reiterated remaining concerns over the lengthy IRAprocess, and the brief anti-dumping procedures, which did not allow exporters sufficient time to
properly prepare and defend their cases.
107. The representative of Ecuador was concerned at the long and costly risk-analysis procedure
for SPS reasons.  In some cases, there were additional measures as well as quite different regional
requirements, thus adding complexity.  He recalled his country's position as the world's first bananaexporter with an important presence in the Australian market up until few years ago.  He repeated his
request for written answers, and he indicated that this was an opportunity to deal with this matter on a
bilateral basis with Australia.
108. The representative of Australia indicated that it would be necessary to look at the terms of the
Treasurer's Announcement to see whether there was any particular definition of the term large-scale
ownership;  he undertook to provide a reply later.  Regarding the 155 days allowed for anti-dumping
investigations, he stated that the shorter process was still thorough, and reduced uncertainty for
exporters and all interested parties.
109. Concerning quarantine, he confirmed that Australia's acceptable level of risk was low, but not
zero;  the level of risk was reflected in Australia's ALOP.  The question on bananas was of some
curiosity as Ecuador had not sought access for its bananas in recent years, and it was not covered by
the ongoing IRA process with respect to access for bananas from the Philippines.  A written replywould be given to Ecuador as well as further advice on the IRA that might be relevant to its exports of
bananas.
110. He was puzzled by references to the effects of STEs, as no Member had been able to
substantiate any trade-distorting impact.  AWB Ltd was a commercial company free of government
support, underwriting, appointments on its board or involvement in decision-making.  He believedthat the only way forward for this issue was a case-by-case approach;  otherwise the European cereal
intervention and export refund system could also be considered an STE.
111. Efforts would be made to supply details of the operation of the LCT (range and price of
vehicles affected).WT/TPR/M/104
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112. The representative of Brazil reiterated his request for clarification regarding the measures on
ethanol.
113. The representative of Australia indicated that the written replies were provisional and further
responses would be provided as soon as possible.
114. The representative of Hungary reiterated his request for the list of countries authorized to sell
meat products to Australia.  The written response making reference to a webpage containing a
database on Australia's import requirements did not answer his question.
115. The representative of Australia responded that, in order to be efficient and in the light of his
country's numerous quarantine measures, it was reasonable to suggest that information should be
sought at the website mentioned.
116. The representative of China expressed his satisfaction for finding provisional written replies
concerning the pest risk analysis of China's apples and peaches originating from Shandong and Shanxi
provinces.  He sought the specific timing for the IRA for these products.
117. The representative of Australia undertook to follow up and provide advice in response to this
question.
118. The representative of Thailand noted that his written questions on anti-dumping had not been
answered.
119. The representative of Australia replied that these answers had arrived and would be circulated
hopefully during the day.WT/TPR/M/104
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VI. CONCLUDING REMARKS BY THE CHAIRPERSON
120. This meeting has contributed to a much better understanding of recent developments in
Australia's trade and trade-related policies, whose transparency is truly exemplary.  With such
transparency, and 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.
121. Members commended Australia for its impressive economic performance and sound
macroeconomic policies that helped to weather the Asian financial crisis.  They noted its impressive
GDP growth, low inflation rate and falling unemployment level.  Members took note of the significant
changes brought by the New Tax System, including the General Services Tax, the Luxury Car Tax
and the New Business Tax.  There was general agreement that trade liberalization, including
significant unilateral measures, together with ongoing structural reforms and prudent macroeconomicpolicies had undoubtedly contributed to Australia's strong economic performance over the past
decade.
122. Members 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 the multilateral trading system and wondered a bout 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.
123. 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,
clothing and footwear by 2005.  Australia was encouraged to reduce tariff escalation as well as tobridge the gap between applied and bound rates.  Despite a recent drop in recourse to contingency
measures, Australia remains a major user of anti-dumping actions.  Government procurement is still a
major tool of industrial policy and Australia is 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 intellectual propertyrights protection.
124. 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 concern 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 notedthat several industry-specific schemes remained in place.  Market access conditions in the financial
and telecommunications sectors as well as local content requirements and other forms of intervention
in broadcasting, advertising and motion pictures were also discussed.
125. Members also sought clarification on several specific issues including:
− the impact of the economic slowdown on co mmodity prices and the 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;WT/TPR/M/104
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− tuition fees for educational services based on nationality;
− professional services;  and
− electronic commerce.
126. 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.
127. This brings us to the conclusion of our Review of Australia.  The large number of advance
questions, numerous interventions, and high level of attendance indicate the important role thatAustralia plays at the WTO.  In this context, I would encourage Australia to continue in its strong
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.
__________