RESTRICTED  
  
WT/TPR/G/396  
15 January 2020 
(20-0419) Page: 1/22 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
AUSTRALIA  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Australia  
is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Australia . WT/TPR/G/396 • Australi a 
 
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  Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  3 
2   ECONOMIC POLICY  ................................ ................................ ................................ ...... 3 
2.1   Domestic Economy  ................................ ................................ ................................ ...... 3 
2.2   Trade Performance and Investment Profile  ................................ ................................ ...... 4 
2.3   Monetary and Fiscal Policy  ................................ ................................ ............................  5 
2.4   Economic Policy Developments  ................................ ................................ ......................  6 
3   TRADE AND INVEST MENT POLICY  ................................ ................................ ...............  8 
3.1   WTO Reform and Negotiations ................................ ................................ .......................  9 
3.2   WTO Agreements (Joined or Concluded)  ................................ ................................ ........ 12 
3.3   WTO Disputes  ................................ ................................ ................................ ............ 12 
3.4   Bilateral and Regional FTAs Concluded in the Review Period  ................................ ............. 13 
3.5   Bilateral and Regional FTAs Under Negotiation  ................................ ............................... 14 
3.6   Bilateral or Regional FTAs Entering Into Force or Reviewed During the Review Period .......... 15 
3.7   Other International Economic Engagement  ................................ ................................ ....16 
3.8   Thematic Trade Policy Priorities  ................................ ................................ .................... 18 
3.9   Trade and Investment Promotion  ................................ ................................ .................. 21 
4   LOOKING AHEAD  ................................ ................................ ................................ ....... 21 
REFERENCES  ................................ ................................ ................................ ..................  22 
 
 
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  1  INTRODUCTION  
1.1 The pursuit of openness and suppor t for the rules -based global trading system are the key 
principles of Australian trade policy. Underlying this approach is the belief that accessible markets, 
further enhanced trade liberalisation and increased foreign investment flows are the best pathway s 
to prosperity for Australia, our region and the world. The Australian Government complements this 
agenda with domestic policies and reforms that promote the competitiveness and agility of the 
Australian economy to better position Australia to compete for  jobs, investment and markets into 
the future.  
1.2 The global economic environment has become much less stable and more contested over the 
review period. In particular, trade tensions and unprecedented technological change have 
transformed the global economic landscape. As a nation that relies on trade with the world for its 
prosperity, Australia’s policy response has been to continue to seek opportunity and openness in this 
dynamic environment, while protecting the nation’s interests in the face of uncertainty . 
1.3 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 % of our GDP, compared to 40 % 
in 2015, and one in five jobs is now driven by trade. Recog nizing the valuable contribution foreign 
investment makes in fostering growth, job creation and innovation, the total stock of foreign 
investment in Australia reached a record high of AUD  3.5 trillion in 2018, and Australia’s investments 
around the world t otalled AUD  2.5 trillion.1 
1.4 During these times of uncertainty and transformation, Australia remains strongly committed 
to the World Trade Organization (WTO) and its framework of rules. The Government is concerned 
about the strain that international trade tensions and rising protectionism are placing on the WTO 
and the rules -based global trading system. Australia is actively supporting reform efforts in the WTO 
in order to ensure it remains the core of a well -functioning global trading s ystem in the future. 
Updating the WTO rulebook and maintaining an effective dispute settlement system are Australia’s 
priorities.  
1.5 Complementing these efforts, the Government continues to negotiate bilateral, regional and 
plurilateral trade agreements to ex pand opportunities for Australian exporters and investors. 70% 
of Australia’s trade is with countries with which we have negotiated FTAs.2 Australia also engages 
actively with regional and international economic bodies to support trade openness, regional 
economic integration and inclusive economic development.  
1.6 Ensuring that developing countries can maximi ze the benefits of committing to international 
trade rules, is also a priority for Australia. Consistent with the UN Sustainable Development Goals, 
Australia is assisting developing countries to benefit from integration into the multilateral trading 
system through aid for trade. Australia has consistently met the target set in 2014 of spending 20% 
of its development budget on aid for trade. The Austra lian Government also invests in economic 
cooperation through FTAs with developing country partners in order to reali ze the benefits for all 
parties.  
2  ECONOMIC POLICY  
2.1  Domestic Economy  
2.1 Australia’s record of 28 years of continuous economic growth is the result  of careful economic 
policy management and the successful fostering of an internationally competitive, outward -looking 
economy.3  The strength of these fundamentals has helped counter the effects of recent international 
and domestic challenges, including i nternational trade tensions, a housing market downturn and 
adverse weather conditions that have affected the rural sector.  
                                                
1 Department of Foreign Affairs and Trade (DFAT), Economic Indicators Factsheet, October 2019 
http://dfatintranet.titan.satin.lo/reading -resources/statistics/trade -statistics/Pages/trade -investment -and-
economic -factsheets.aspx   
2 DFAT Statistics Section, based on ABS data on the DFAT STARS database, consistent with ABS 
Catalogue 5368.0, 5368.0.55.004 and unpublished ABS data.  
3 Australian Bureau of Statistics (ABS) Catalogue 5204.0.  WT/TPR/G/396 • Australi a 
 
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  2.2 During the review period, Australia’s global gross domestic product (GDP) ranking has 
remained largely steady. Australia was the worl d’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 AUD 77,200 (USD 53,800) in 2019. Growth was relatively even over the 
review period, aver aging 2.6% annually but moderating towards the end of the period.4 
2.3 Strong regional demand for Australia's mineral commodities – particularly in China and India 
– remained a key driver of Australia’s economy since 2015. This demand continued to drive 
invest ment in the resources sector. Despite some recent temporary weather -related supply 
disruptions, overall resources export volumes are increasing substantially as large Liquefied Natural 
Gas (LNG) plants come online. The prices of key resource commodities ar e projected to moderate 
from their current elevated levels as demand and supply factors rebalance.  
2.4 Non-resource related economic activity has varied over the review period. In the early -to-mid 
period of this review, activity outside of the resource sector benefited from an upturn in the housing 
market cycle, boosting household wealth and consumption. As the housing market cooled in 201 8-
19, it has weighed on consumption expenditure.  
2.5 Other factors that have supported overall economic growth during the review  period include 
a strong pickup in public investment, particularly in major transport infrastructure projects and 
rollout of the National Broadband Network. Income tax cuts and monetary easing in 2019 have 
supported household disposable incomes and demand.  
2.6 Australia's labour market has performed strongly over the review period. Robust employment 
growth has drawn people into the labour market who were not previously looking for work, 
particularly women and older workers, and unemployment has trended down tow ards a rate of just 
above 5%.5 As in other advanced economies, the response of wage growth to improving labour 
market conditions has been more muted than in past cycles. Wages growth however has outpaced 
inflation, maintaining households’ purchasing power.6 For real wage growth to improve, ongoing 
productivity increases will be required, which is an ongoing challenge both in Australia and 
internationally.  
2.2  Trade Performance and Investment Profile7 
2.7 Over the period of the review, the Australian economy has con tinued to internationali ze 
further. Australia’s exports grew from AUD  323 billion in 2015 to AUD  437 billion in 2018. Australia’s 
three largest exports over the review period were iron ore, coal, and education -related services. The 
strongest performing sec tors over the review period were mineral commodities and services exports, 
with growth averaging 18.2% and 15.9% per annum respectively. The division between services 
and commodity exports is blurring in Australia, as it is across the world; increasingly s ervices and 
technology are embedded across all of Australia’s export sectors and underpin future growth 
prospects.  
2.8 Minerals and fuels made up 47% of Australia’s exports, up from 42% in 2015. Australia is the 
world’s largest exporter of coal (AUD 66.8 billi on in 2018), and iron ore (AUD 63.3 billion in 2018) 
and is projected to become the world’s largest exporter of LNG at the end of the review period 
(AUD  43.3 billion in 2018, up by 38.3% per annum over 2015 -2018).  
2.9 Services make up a significant share of ou r exports, 27% in 2018 (AUD  93 billion), compared 
to 29% in 2015 (AUD  73 billion). If services embedded in goods exports are also included, services 
share of exports rises to over 40%. Trade in education -related travel services was worth 
AUD 35.2 billion i n 2018, with Australia the third -largest provider of education services in the world 
to international students. Australia is also a world -class provider of professional services, financial 
services, energy and mining -related services, environmental service s and financial technology 
(FinTech).  
                                                
4 IMF World Economic O utlook October 2019.  
5 ABS Catalogue 6202.0 (Labour Force), September 2019 
https://www.abs.gov.au/ausstats/abs@.nsf/lookup/6202.0Media%20Release1Sep%202019   
6 Australian Bureau of Statistics (ABS) Catalogue  6302.0 and 6345.0.  
7 DFAT STA RS database (based on ABS catalogue 5368.0, July 2019).  WT/TPR/G/396 • Australia  
 
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  2.10  Australia remains among the top 10 agricultural exporters in the world, with agricultural, 
forestry and fisheries products making up 15.2% of our total merchandise exports in 2018, compared 
to 20% in 2015 . 
2.11  The manufact uring sector is transforming its character, while maintaining a significant share 
of exports (14.6% in 2018, compared to 18% in 2015). Linkages to global value chains are 
increasing, and high value -added products and related services are increasingly embod ied in activity 
across the entire economy, including in the resources exporting sector . This transformative trend is 
also reflected in growth in exports sectors where research and technology drive production, such as 
pharmaceutical products and medicaments , ships, and aeronautical and telecommunications 
equipment (annual export growth over 2015 -2018 of 41% and 11%, 17%, 6% and 8% respectively). 
More traditional manufactures such as refined nickel and zinc have also grown strongly (trend growth 
over 2015 -2018 of 89% and 20.4% per annum respectively).  
2.12  The value of imports into Australia remained steady over the review period, growing from 
AUD 352.7 billion in 2015 to AUD  395.4 billion in 2018. Imports were predominantly manufacture s 
(AUD  228 billion); with ser vices (AUD  98 billion); minerals and fuels (AUD  42 billion); agriculture 
(AUD  21 billion); and ‘other’ - (AUD 12 billion, including gold) comprising the remainder. Australia’s 
largest imports were of personal tourism (AUD  42.4 billion in 2018), passenger vehicles 
(AUD  23.2 billion in 2018) and refined petroleum (AUD  21.6 billion in 2018).  
2.13  Australia remains a net capital importing country, although Australia also has very significant 
stocks of outward foreign investment. Australia’s considerable a nd diverse resources reserves, highly 
developed skill and technology base, proximity to fast -growing markets, and strong rule of law make 
it an attractive destination for foreign investment. Australia hosts over 10,000 foreign -owned 
businesses and the stoc k of Foreign Direct Investment (FDI) into Australia was $967.5 billion as at 
31 December 2018 (ABS, released annually). This was an $83.7 billion (9.5%) increase from 
31 December 2017, and a trend increase of 7.5% per annum since 2015. Australia’s top five  FDI 
source countries have not changed since 2015 - the US (AUD  214 billion in Australia); Japan 
(AUD  106 billion); the UK (AUD  99 billion); the Netherlands (AUD  49 billion) and China 
(AUD  40 billion).8 
2.14  The stock of inwards investment of all types was AUD  3514 billion in 2018, an increase of 
4.4% per annum over the 3 years since 2015. The top 5 countries for total investment in Australia 
in 2018 were: the US (AUD  939 billion); the UK (AUD  575 billion); Belgium (AUD  317 billion); Japan 
(AUD  229 billion); and  Chinese Taipei (AUD  119 billion).9 
2.15  Australia also has extensive foreign investments in other countries. The stock of Australian 
FDI in other countries was AUD  696 billion at 31 December 2018 (ABS).  This was a n AUD 60 billion 
(9.4%) increase from 31 Decemb er 2017, and a trend increase of 6.9% per annum from 2015. 
Australia’s top five FDI destination countries are the US (AUD  121 billion); the UK (AUD  119 billion); 
New Zealand (AUD  56 billion), Canada (AUD  33.8 billion) and Bermuda (n.p.). The stock of outwa rds 
investment of all types (including portfolio investment) was AUD  2,538 billion in 2018, an increase 
of 5% per annum over the 3 years since 2015.  
2.3  Monetary and Fiscal Policy  
2.16  Australia’s independent central bank, the Reserve Bank of Australia (RBA), has t aken a 
number of steps to ease monetary policy conditions over the review period. The cash rate target 
was reduced by 150 basis points to a record low 0.75% over the period February 2015 to October 
2019. 10 This change reflected a desire to assist in reduci ng the economy’s spare capacity, make 
faster progress in reducing the unemployment rate, and support achievement of the inflation target 
band (2 -3% increase per annum) over time.11 The Reserve Bank Board currently expects that an 
extended period of low inte rest rates will be required to meet these goals and offset potential 
softening in some areas of the economy.  
                                                
8 ABS catalogue 5352.0 (International Investment Position, May 2019).  
9 ABS catalogue 5352.0.  
10 Reserve Bank of Australia  (RBA) Website, Cash Rate https://www.rba.gov.au/statistics/cash -rate. 
11 RBA Media Release, Statement by Governor: Monetary Policy Decision, 1 October 2019  
https://www.rba.gov.au/media -releases/2019/mr -19-27.html . WT/TPR/G/396 • Australi a 
 
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  2.17  The Australian Government's overall approach to fiscal policy places a high priority on 
improving the sustainability of public finances. Currently this is being achieved through working 
towards a budget surplus, maintaining solid economic growth and low unemployment, and 
maintaining government debt at prudent levels.  
2.18  Since 2013 -14, the Government has implemented savings measures with a combined effec t 
of more than $200 billion through to 2022 -23. This has resulted in a trend back to surplus with the 
total turnaround in the underlying cash balance between 2013 -14 and 2019 -20 expected to be 
$55.5  billion. The 2019 -20 Budget projects an underlying cash surplus of AUD  7.1 billion in 2019 -20 
(0.4% of GDP) – the first in over a decade - increasing to AUD  17.8 billion (0.8% of GDP) by 2021 -
22. Projected ongoing surpluses over the medium term are aimed at eliminating government net 
debt by 202 9-30, to ensure that Australia is better equipped to deal with future challenges. This 
fiscal consolidation leaves Australia well placed in terms of fiscal sustainability, particularly in 
comparison with most other advanced economies.12 
2.4  Economic Policy Deve lopments  
2.19  The Australian Government has sought to strengthen the competitiveness and overall 
performance of Australia’s economy over the review period 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 SMEs to 
minimi ze regulatory burden. The Government also put in place a plan for development of the digital 
economy, and established a proce ss designed to boost the competitiveness of Australia’s services 
sector.  
2.4.1   Tax Reform  
2.20  Australia has undertaken a range of tax reforms during the review period.  
2.21  Australia has made changes to its taxation of multinational corporations in line with 
internationa l efforts to address tax base erosion and the Government’s aim of creating a tax level 
playing field for local and foreign company activities in Australia. The diverted profits tax (DPT) aims 
to ensure that the tax paid by global companies (or members of g roups of entities) that have an 
annual global income of more than AUD 1 billion, properly reflects the economic substance of their 
activities in Australia and prevents the diversion of profits offshore through arrangements involving 
related parties. The DP T came into effect in July 2017.13 
2.22  Australia broadened its collection of Goods and Services Tax to include overseas vendors in 
July 2017, using a vendor collection model that applies equally between domestic and overseas 
vendors. Under this model, the vendo r collects the tax at the time of sale and remits the amount to 
the Australian Tax Office. In order to reduce the burden on MSMEs, only vendors with taxable sales 
of AUD 75,000 or more to consumers in Australia over a 12 -month period are required to regist er, 
collect and remit GST.14 
2.23  Cuts to taxes on individuals, smaller firms and consumption were also made over the review 
period to create greater incentives to generate economic activity across the economy.15 
2.4.2   Competition Reform  
2.24  Following the Harper Competitio n Policy Review, the Australian Government passed a package 
of legislation to simplify and strengthen Australia’s competition law. These reforms were designed 
to better target anti -competitive conduct while supporting pro -competitive behaviour. Issues 
addressed through the Competition and Consumer Act 2010 include: cartels, price signalling and 
concerted practices, exclusionary provisions,  third line forcing, resale price maintenance, merger 
                                                
12 Budget 2019 -20 Budget Paper No.1, Statements 1 and 3 https://budget.gov.au/2019 -
20/content/bp1/index.htm . 
13 Budget 2019 -20 Budget Paper No.1, Statement 1 . 
14 Australian Taxat ion Office (ATO) Website, GST cross -border transactions 
https://www.ato.gov.au/Business/International -tax-for-business/In -detail/Doing -business -in-Australia/GST -
cross-border -transactions -between -businesses . 
15 Budget 2019 -20 Budget Paper No.1, Statement 1 . WT/TPR/G/396 • Australia  
 
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  authori zations and non -merger authori zations, notifications and cl ass exemptions, access and 
evidentiary provisions.  
2.4.3   Increased Infrastructure Investment  
2.25  Over the four financial years of the review period, the Australian Government’s infrastructure 
investment has averaged AUD  8.2 billion, focused on transport infrastructu re. In 2015 -16, total 
Commonwealth investment in infrastructure was AUD  6 billion, increasing to AUD  8.5 billion in 2018 -
19. Another key ongoing investment has been the National Broadband Network (NBN) in which the 
Government has invested AUD  29.5 billion since 2009, with its final AUD  2 billion contribution made 
in 2017 -18. 
2.26  The Australian Government has committed $100bn to infrastructure investments from 2019 -
20 onward to improve the efficiency of the economy by reducing congestion and improving freight 
links – an average of AUD  10 billion per year until 2028 -29.16 
2.4.4   Small and Medium -sized Enterprises (SMEs)17 
2.27  Small businesses18 in Australia account for nearly 98% of all businesses and employ 44% of 
the total workforce. Medium -sized enterprises employ an additional 24% . SMEs are also significant 
producers, contributing 56% to Australia’s GDP. While their overall contribution to the value of goods 
exports is small (4.5%), SMEs make up 87.5% of all Australian goods exporters, with the most 
significant sector s being wholesale trade and manufactures.19 
2.28  Recogni zing the importance of SMEs to the Australian economy, particularly for employment, 
the Government is committed to reforming the regulatory environment for SMEs in order to minimi ze 
regulatory burden. Every  policy proposal designed to introduce or abolish regulation is expected to 
consider any significant impact on small business. The Australian Government has also introduced 
new legislation to assist SMEs, such as making franchising arrangements fairer and protecting small 
business from unfair contracts.20 In addition, the Government created the Australian Small Business 
and Family Enterprise Ombudsman in 2016 to advocate  for small and family businesses.  
2.4.5   Services Export Competitiveness  
2.29  Following a comprehensi ve study by the OECD on the international competitiveness of 
Australia’s services in 2018, Australian Services Trade in the Global Economy , the Australian 
Government is working with the business community to develop a policy agenda to boost Australia’s 
services exports. The aim is to identify barriers to Australia -based services exporting firms and find 
practical ways to address them. Preliminary consultations with industry have focused on three broad 
areas:  
• reducing domestic regulatory complexity;  
• addressi ng barriers in international markets; and  
• helping services firms as they internationali ze. 
2.30  In addition, in October 2016 the Australian Government established a Professional Services 
Mutual Recognition Unit to work with professional bodies and regulators in Australia and other 
countries to negotiate mutual recognition agreements of professional qualifications and licencing.  
The goal of this work is to create new opportunities for Australian professional services exporters, 
increase the value of Australian qualifications for international students, raise the international 
                                                
16 Budget 2019 -20 Budget Paper No.1, Statement 1 . 
17 Small Business Counts, Small Business in the Australian Economy , July 2019 , pp 39 -41. Published by 
Australian Small Business and Family Enterprise Ombudsmen.  
18 A small business for statistical purposes is one with less than AUD 2 million turnover per annum  or 
less than 20 employees, while medium businesses have 20-199 employees . Further information is available in: 
Financial Services and Small and Medium -Sized Enterprises (SMEs) Background Paper 12  to the Royal 
Commission into Misconduct in the Banking Superannuation and Financial Services Industry.  
19 5368.0.55.006 - Characteristics of Australian Exporters, 2017 -18. Published by the Au stralian Bureau 
of Statistics, August 2019.  
20 Treasury website entry on Small Business Policy:  https://treasury.gov.au/small -business . WT/TPR/G/396 • Australi a 
 
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  profile of Australian professionals, and improve the two -way movement of professionals. A total of 
17 MRAs have been signed since 2016 across four professions (accountancy, archi tecture, 
engineering and quantity surveying) with counterparts in ten WTO members (Canada, Hong Kong, 
China, Malaysia, Pakistan, the Philippines, Singapore, South Africa, Sri Lanka, the UK, and the US).  
2.4.6   Developments in the Digital Economy  
2.31  E-commerce is an increasingly important way for Australia to trade with the rest of the world. 
The 2016 Australian International Business Survey21 found that 47% of respondents reported using 
e-commerce in some way. Of these businesses, 60% used e -commerce to sell goods, 26 % used it 
to sell services and 14% did both. Australia’s digital economy  is projected to be worth as much as 
AUD 139 billion, or 7.3% of the total economy by  2020.22 The Australian economy has lifted its 
productivity by adopting technology in existing industries; however, this has been uneven across 
the economy, with larger, internationally - integrated firms leading, while domestically oriented firms 
lag notice ably. 
2.32  Conscious of the importance of the digital economy to Australia’s overall economic future, the 
Australian Government has taken a number of steps during the review period to enhance its 
development.  
2.33  In August 2017, the Australian Trade, Tourism and In vestment Minister, asked the Joint 
Standing Committee on Trade and Investment Growth to inquire into and report on The Trade 
System and the Digital Economy. In September 2018, the Committee issued its report with a series 
of recommendations that emphasi zed the increasing centrality of digital technologies to trade in the 
21st century.23  The Australian Government tabled its response to the Committee's 
recommendations in November 2019.  
2.34  In 2018, following a broad consultation process, the Government released a  national strategy 
for Australia’s Tech Future that centres on developing skills, infrastructure and technology for the 
digital economy.24 The strategy details how Australia can maximi ze the opportunities of technological 
change by focusing on four key area s: developing Australia's digital skills; better delivery of digital 
services by government; building infrastructure and providing secure access to high quality data; 
and maintaining cybersecurity and reviewing regulatory systems.  
2.35  In 2018, the Australian G overnment also released a Digital Transformation Strategy (DTS) for 
its own operations.25 The aim of the DTS is to maintain Australia’s place at the leading edge of the 
provision of government services . Australia was recogni zed (in 2015) as second in the world by the 
UN for the effectiveness of government digital services.  
2.36  The Government is also pursuing opportunities to liberali ze international digital trade through 
multilateral and other trade negotiations. The Government’s International Cyber Engagement  
Strategy outlines a whole of government approach to support Australia’s international 
competitiveness. See section 3.1.4 for further details.  
3  TRADE AND INVESTMENT  POLICY  
3.1.  To support Australia’s prosperity, the Government has pursued an ambitious internatio nal trade 
agenda over the period of the review. Key drivers were and continue to be: resisting protectionism, 
                                                
21 Austrade  Website, Australia’s International Business Survey 2016 
https://www.austrade.gov.au/News/Economic -analysis/Key -publications/a ustralias -international -business -
survey -2016. 
22 Deloitte Access Economics, The Connected Continent II, 2015 
https://www2.deloitte.com/content/dam/Deloitte/au/Documents/Economics/deloitte -au-economics -connected -
continent -ii-2015-300315.pdf . 
23 Australian Parliament, Joint Standing Committee on Trade an Investment Growth, Report on Trade 
and the Digital Economy 
https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Joint_Standing_Committee_on_Trad e_and
_Investment_Growth/Tradeanddigitaleconomy/Report . 
24 Department of Industry, Innovation and Science Website, Australia’s Tech Future, 2018 
https://www.industry.gov .au/data -and-publications/australias -tech-future . 
25 Digital Transformation Agency Website, Digital Transformation Strategy 
https://www.dta.gov.au/digital -transformation -strategy . WT/TPR/G/396 • Australia  
 
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  bolstering support for an open, rules -based trading system, improving access and opportunities for 
Australian business, and enhancing Australia’s competitiveness.  
3.2.  Australia pursued this agenda through strong support for the multilateral trading system, with 
the World Trade Organization (WTO) at its core, at a time of serious strain . The Australian 
Government actively participated in WTO reform effor ts to help moderni ze the WTO, including 
dispute settlement reform . Australia also took a lead role in a range of WTO negotiations to help 
update the rulebook and ensure that WTO rules keep up with economic and technological change.  
3.3.  In parallel with multila teral efforts, the Australian Government also contributed to the 
development of international trade rules, and delivered improved opportunities for Australian 
business, through negotiating bilateral, regional and plurilateral Free Trade Agreements (FTAs). 
Australia’s high quality FTAs aim to serve as building blocks for wider multilateral liberali zation.  
3.4.  Australia’s FTAs have secured significant new market access and rules in evolving areas of 
trade like e -commerce, intellectual property, trade and environm ent, SOEs, and investment 
liberali zation over the review period . Australia now has FTAs in force with countries that account for 
70.1% of Australia’s two -way trade - a significant expansion on the 2013 figure of 26.8%.26 If all 
current trade negotiations we re concluded, Australia’s share of two -way trade in goods and services 
with countries covered by FTAs would reach 86.6% (based on 2018 trade data). The Government 
has committed  that a round 90% of Australia’s trade will be covered by FTAs by 2022.  
3.5.  Australia has continued to lower tariffs to increase its own openness to the world. The average 
applied Most Favoured Nation (MFN) tariff rate is 2.5% . More than 99% of Australia's tariff line s are 
applied at an MFN rate of 5% or less, with over 47% duty free. The overall, applied effective tariff 
rate (incorporating preferential FTA rates) was 0.56% in 2018 (on a trade -weighted basis).27 This is 
reflected in the very low rate of tariff collecti ons by Australia.  
3.6.  Over the review period, the Australian Government continued to maintain an open and non -
discriminatory foreign investment framework, while ensuring foreign investment is not contrary to 
the national interest . Foreign investment applicatio ns (above certain monetary or equity thresholds) 
are assessed on a case -by-case basis. The vast majority of proposed investments are approved. 
Since 2015 -16, Australia has approved 66,947 foreign investment transactions for a total value of 
$608.7 billion.28 
3.7.  Australia advocates internationally for open and transparent investment policy regimes . Since 
2015, Australia has been a leading supporter of liberal capital flows through the negotiation of 
relevant provisions in FTAs and Bilateral Investment Treaties ( BITs) with countries in our region and 
beyond.  
3.8.  Sustained engagement in key multilateral organi zations like APEC, OECD and G20 over the 
review period also assisted in achieving Australia’s trade and investment policy objectives 
(see Section  3.7). 
3.1  WTO Reform  and Negotiations  
3.1.1   Reform of Dispute Settlement  
3.9.  Australia continues to be a strong proponent of the WTO dispute settlement system as a  means 
of ensuring the security and predictability of the rules -based multilateral trading order. Australia 
remains serious ly concerned by the WTO Dispute Settlement Body’s inability to commence a 
selection process to replace outgoing Appellate Body members, resulting in the current impasse. 
Australia is actively supporting the General Council Informal Process on Appellate Bod y matters, 
aimed at resolving the impasse, led by New Zealand’s Ambassador Walker . Australia has co -
sponsored three proposals on this issue (WT/GC/W/752/Rev.2, WT/GC/W/754/Rev.2 and 
WT/GC/W/768/Rev.1). Australia remains committed to efforts aimed at findin g a long -term, 
                                                
26 See footnote 2 above.  
27 DFAT analysis based on ABS Catalogue 5368.0 . 
28 Foreign Investment Review Board, Annual Report 2017 -18, February 2019, p25  
https://f irb.gov.au/sites/firb.gov.au/files/2019/02/FIRB -2017-18-Annual -Report -final.pdf . WT/TPR/G/396 • Australi a 
 
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  multilateral solution to address Members’ concerns and ensure the ongoing effective functioning of 
the WTO dispute settlement system.  
3.1.2   Transparency and Notifications  
3.10.   Australia is a strong proponent of efforts to enhance compliance with notifi cation obligations 
in the WTO and has co -sponsored a proposal to improve compliance. The monitoring and 
transparency of Members’ trade policies plays a central role in ensuring WTO Members understand 
the policy actions taken by their trading partners, and each Member agreed to participate in this 
process as part of their accession to the WTO. When operating effectively, the notification system 
provides a shared and consolidated resource for all Members, which allows them to identify 
effectively the trade ba rriers that affect them and provides the foundation for effective negotiations.  
3.1.3   Fisheries Subsidies Negotiations  
3.11.   Australia is a strong supporter of developing enhanced fisheries subsidies disciplines in the 
WTO. Australia has sought clear, simple prohibiti ons in the core areas of illegal, unreported and 
unregulated (IUU) fishing, overfished stocks, and overfishing and overcapacity. Australia has co -
sponsored a proposal to cap (in monetary terms) fisheries support; drafted text on prohibiting 
subsidies for d istant water fishing and subsidies to vessels not flying the subsidi zing Member’s flag; 
and drafted text on notifications and transparency . Underlining the importance Australia attaches to 
transparency, and as an important indicator of Australia’s commitme nt to the process, Australia 
notified its fisheries specific subsidies by the 30 June deadline, as agreed by Ministers at the 11th 
WTO Ministerial Conference (MC11).29 
3.1.4   E-Commerce Negotiations  
3.12.   In January 2019, Australia with Japan and Singapore, led the launch of negotiations on trade -
related aspects of electronic commerce with 75 other WTO Members, representing over 90% of 
global trade. The launch was the result of a year of exploratory discussions, chaired by Australia, 
under the WTO E -commerce Joint Mi nisterial Statement signed at MC11 . Since the launch, four more 
Members have joined, bringing the number of signatory WTO Members to 80.  
3.13.   Proposals have been made that cover a broad range of trade -related e -commerce issues 
covering the overarching themes of  enabling digital trade (e.g. provisions on data flows, goods trade 
facilitation, openness and trust), telecommunications, market access (for both goods and services), 
and cross -cutting issues including cooperation, capacity -building and transparency.  
3.14.   Australia’s key interests lie in facilitating digital trade and electronic transactions (e.g. 
promoting paperless trading, improving transparency, permitting e -signatures etc.), ensuring 
consumer protection (e.g. protecting consumers online, personal informat ion and privacy etc.) and 
prohibiting restrictions on data flows, including locali zation requirements. Making the WTO 
moratorium on customs duties on electronic transmissions permanent is also a key aim.  
3.1.5   Services Domestic Regulation Negotiations  
3.15.   In 2017, A ustralia with other Members, led an initiative to renew negotiations on the WTO 
built-in agenda to give effect to GATS Article VI:4 (Domestic Regulation). This effort resulted in a 
Joint Ministerial Statement at MC11 that committed participants to examine ways to advance rules 
facilitating trade in services by ensuring domestic qualification and licensing requirements and 
procedures, and technical standards, do not act as a barrier to trade in services.  
3.16.   Since MC11, Australia has taken an active role in thes e negotiations. In May 2019, 59 WTO 
Members, representing over 70% of world trade, issued a statement agreeing to work towards 
finalizing services domestic regulation rules by the next WTO Ministerial Council meeting (MC12) in 
June 2020.  
                                                
29 Notifications in G/SCM/N/343/AUS.  WT/TPR/G/396 • Australia  
 
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  3.1.6   Investment Facilit ation Joint Statement Initiative  
3.17.   Australia supports work towards establishing a WTO framework on investment facilitation, as 
an emerging area of international investment. Australia continues to engage in the structured 
discussions, and would like to see an  outcome that fosters a more transparent, efficient and 
predictable environment for facilitating cross -border investments for all WTO Members.  
3.1.7   Micro, Small and Medium Enterprises (MSMEs) Joint Statement Initiative  
3.18.   Australia sees value in enhancing accessib ility of small business to the global trading system. 
Australia was one of 88 WTO Members to issue a Joint Statement at MC11 promoting the importance 
of enhancing the participation of MSMEs in international trade. Australia continues to participate in 
the informal WTO working group, which focuses on addressing obstacles relating to MSME 
participation in international trade . Looking ahead, Australia would be supportive of developing a 
formal work programme for MSMEs in the lead up to MC12, which could explor e practical trade -
related initiatives of benefit to MSMEs and their host economies.  
3.1.8   Agriculture Trade Reform  
3.19.   While agriculture remains the most distorted sector of international trade, Australia’s 
agricultural sector continues to be one of the most open an d globally competitive. Australia’s level 
of agricultural producer support assistance remains one of the lowest across OECD member 
countries.30 
3.20.   Australia has traditionally played a very active role in the WTO on agricultural trade reform 
and this objective remains of fundamental importance . Australia continues to work for global 
agricultural trade reform through our role as Chair of the Cairns Group.  
3.21.   The 2015 WTO Nairobi Ministerial Conference (MC10) delivered the most ambitious 
agricultural reform since the  establishment of the WTO. WTO members agreed to eliminate 
agricultural export subsidies and to discipline other aspects of export competition – such as export 
credits, state trading enterprises and international food aid – that distort global agricultural  markets. 
Australia was the first Member to implement this decision. Members also agreed to engage 
constructively to find a permanent solution to developing countries’ use of public stockholding 
programmes for food security. While welcomed, the outcomes at  MC10 were only one part of a 
bigger agricultural trade reform agend a. 
3.22.   Achieving progressive and substantial reductions in trade -distorting domestic support and 
agricultural market access barriers remain a priority for Australia in the WTO. In the lead up to 
MC12, Australia and the Cairns Group are working to develop a pathway to deliver meaningful 
agricultural trade reform, including a robust negotiating roadmap. Australia will work pragmatically 
to continue agricultural negotiations to achieve meaningful outcomes that benefit all Members at 
MC12 and beyond.  
3.1.9   Environmental Goods Agreement (EGA) Negotiations  
3.23.   Australia played an active role during the review period on the plurilateral Environmental 
Goods Agreement (EGA), including as Chair of those negotiation s. The EGA’s aim was to eliminate 
WTO bound tariffs on an extensive list of environmental goods. Australia views the EGA as important 
in promoting the trade, uptake and production of goods and new technologies that help address 
environmental objectives, in cluding climate change. The EGA has not been finali zed and the last 
negotiations took place in November -December 2016.  
                                                
30 Agricultural Policy Monitoring and Evaluation 2018, Part II. 
http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=TAD/CA/APM/WP(2018)9/FINAL&docL
anguage=En . WT/TPR/G/396 • Australi a 
 
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  3.2  WTO Agreements (Joined or Concluded)  
3.2.1   Trade Facilitation Agreement (TFA)  
3.24.   Australia is a strong supporter of the Trade Facilitation Agreeme nt (TFA), and became the 
seventh WTO Member to ratify in June 2015. Australia has provided notifications on its support for 
capacity building, and we have shared our practical experience of implementation in the Committee 
on Trade Facilitation.  
3.25.   Australia a lso assists developing and least developed countries to implement the TFA by 
supporting a number of global programs, including the World Bank Trade Facilitation Support 
Program, the Global Alliance for Trade Facilitation and the WTO Trade Facilitation Agre ement Facility.  
3.2.2   Government Procurement Agreement (GPA)  
3.26.   Australia became the 48th member of GPA on 5 May 2019. Accession to the GPA reinforces 
Australia’s support for the multilateral trading system and the importance of trade rules. Australia’s 
accession t o the GPA demonstrates the commercially meaningful outcomes that the multilateral 
system can provide for exporters. Australia will play an active role in the GPA Committee to help the 
GPA grow and thereby increase the openness of the global government proc urement market.  
3.2.3   Information Technology Agreement (ITA -2) 
3.27.   Australia became a party to the plurilateral Expansion of the Information Technology 
Agreement (ITA) in 2016. The Agreement will be fully implemented by 1 July 2021 . Australia 
continues to phase -in tariff commitments under the Agreement . This reform of Australia’s tariffs is 
contributing to the efficiency, competitiveness and technological development of Australian 
industries that access and supply global value chains.  
3.3  WTO Disputes  
3.28.   Australia views the WTO dispute settlement system as an important mechanism for promoting 
and defending Australia's trade interests, particularly as it provides all WTO Members with confidence 
that the commitments and obligations contained in the WTO Agreement will be respected. Since 
1995, Australia has been a complainant in nine cases (including two current challenges), respondent 
in 16 disputes (including two current disputes), and a third party in 109 disputes.  
3.3.1   India Sugar (DS580)  
3.29.   On 28 February 2019, Australia announced it was launching formal WTO dispute settlement 
action concerning India's sugar subsidies. Australia held consultations with India on 16 April 2019. 
On 15 August 2019, at Australia’s request, the WTO Dispute Settlement Body established a  panel to 
examine the matter.  
3.3.2   Canada Wine (DS537)  
3.30.   On 12 January 2018, Australia requested WTO consultations with Canada on a range of 
measures Australia considers discriminate against the sale of imported wine, inconsistent with 
Canada’s WTO obligations. T he WTO Dispute Settlement Body established a panel on 26 September 
2018. At Australia's request, the WTO Director General composed the panel on 7 March 2019 to hear 
the dispute.  
3.3.3   A4 Copy Paper (DS529)  
3.31.   On 1 September 2017, Indonesia requested consultations w ith Australia in relation to 
Australia’s imposition of anti -dumping measures on certain imports of A4 copy paper from Indonesia. 
Consultations with Indonesia were held on 30 October 2017. The WTO Dispute Settlement Body 
established a panel on 27 April 2018  and the panel was composed on 12 July 2018.  WT/TPR/G/396 • Australia  
 
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  3.3.4   Tobacco (DS434, DS435, DS441, DS458 and D467)  
3.32.   On 28 June 2018, the WTO Panel issued its final reports in the disputes brought against 
Australia by Honduras, Indonesia, the Dominican Republic and Cuba regarding A ustralia’s Tobacco 
Plain Packaging measures (the related dispute initiated by Ukraine lapsed on 30 May 2016). The 
Panel found in favour of Australia with respect to all claims. The WTO Dispute Settlement Body 
adopted the Panel reports in relation to the di sputes brought by Indonesia and Cuba on 27 August 
2018. Honduras and the Dominican Republic have appealed the Panel reports (on 19 July 2018 and 
23 August 2018 respectively). The appellate proceedings are ongoing.  
3.4  Bilateral and Regional FTAs Concluded in t he Review Period  
3.33.   Australia increased the proportion of its trade covered by FTAs to over 70% during the review 
period. The Government has set a target of 90% coverage by 2022.  
3.4.1   Australia -Hong Kong Free Trade Agreement (A -HKFTA)  
3.34.   Australia and Hong Kong signe d the Australia -Hong Kong Free Trade Agreement (A -HKFTA) 
and the associated Investment Agreement on 26 March 2019.  
3.35.   Under A -HKFTA, both Australia and Hong Kong will legally bind tariffs at zero from entry into 
force of the Agreement. The parties have made h igh ambition commitments on services trade, 
including in education, financial services, and legal and other professional services. The agreement 
delivers economy -wide commitments guaranteeing the free flow of data across borders, and 
prohibiting data local ization rules.  
3.36.   The new Investment Agreement signed alongside the FTA replaces a 1993 investment 
agreement. The new Investment Agreement contains rules to protect the substantial investments in 
each other’s economies from discriminatory practices or expropr iation. The updated Investor -State 
Dispute Settlement (ISDS) mechanism reflects contemporary developments in investment policy.  
3.37.   Australia is now following its domestic treaty -making processes to bring A -HKFTA into force.  
3.4.2   Indonesia -Australia Comprehensive E conomic Partnership Agreement (IA -CEPA)  
3.38.   Australia and Indonesia signed the Indonesia -Australia Comprehensive Economic Partnership 
Agreement (IA -CEPA) on 4 March 2019. Both countries are following their respective domestic 
treaty -making processes to bring I A-CEPA into force swiftly. The Agreement builds on commitments 
under Australia and Indonesia’s existing common trade agreement, the ASEAN -Australia -New 
Zealand FTA (AANZFTA), across goods, services and investment. IA -CEPA creates a framework for 
Australia and Indonesia to unlock further the large potential of the bilateral economic relationship, 
expanding partnerships between businesses, communities and individuals.  
3.39.   On entry into force, Australia will eliminate all remaining tariffs on Indonesian imports in to 
Australia. Over 99% of Australian goods exports by value to Indonesia will enter duty free or under 
significantly improved preferential arrangements. IA -CEPA will also improve conditions for services 
suppliers and the climate for two -way investment. The  Agreement incorporates a skills package, 
including a reciprocal Skills Exchange, allowing well -qualified people from both countries to gain six 
months’ experience in the other’s market. IA -CEPA includes a framework for trade and investment -
related coopera tion through a jointly -funded work program.  
3.4.3   Pacific Agreement on Closer Economic Relations (PACER) Plus  
3.40.   The Pacific Agreement on Closer Economic Relations Plus (PACER Plus) is a regional 
development -centred trade agreement. Negotiations on PACER Plus comme nced in 2009 and 
concluded in Brisbane on 20 April 2017. PACER Plus opened for signature on 14 June 2017, and has 
been signed by Australia, the Cook Islands, Kiribati, Nauru, New Zealand, Niue, Samoa, Solomon 
Islands, Tonga, Tuvalu and Vanuatu. PACER Plus will come into force 60 days after the eighth 
signatory to ratify the Agreement notifies the Depositary in Tonga that it has completed their 
domestic processes. Australia has ratified the Agreement.  WT/TPR/G/396 • Australi a 
 
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  3.4.4   Peru -Australia Free Trade Agreement (PAFTA)  
3.41.   The Peru -Australia Free Trade Agreement (PAFTA) was signed on 12 February 2018 in 
Canberra following the formal launch of negotiations on 24 May 2017. Both countries are now 
undertaking their own domestic treaty -making processes in order to allow PAFTA to enter into fo rce. 
This Agreement will bolster economic relations between Australia and Peru, and Latin America more 
widely, and promote high quality standards and rules within the region.  
3.42.   PAFTA will create immediate market access opportunities for both countries . Peru will 
eliminate tariffs on 93.5% of its tariff lines at entry into force of the Agreement, and ultimately will 
eliminate 99.4% of tariffs. Australia will eliminate tariffs on 96% of its tariff lines from entry into 
force and within four years will eliminate  99.8% of tariffs. PAFTA will also create a platform for 
significant growth for trade in services and investment . It addresses contemporary trade challenges 
in areas such as electronic commerce, supporting small and medium -sized enterprises and 
intellectua l property rights.  
3.5  Bilateral and Regional FTAs Under Negotiation  
3.5.1   Australia -European Union Free Trade Agreement (A -EUFTA)  
3.43.   Australia and the European Union (EU) launched negotiations for a free trade agreement on 
18 June 2018 and there has been good progress made since then . Australia is seeking an ambitious 
and comprehensive free trade agreement with the EU that reflects our commitment to open markets, 
free trade and the rules -based global trading system.  
3.5.2   Regional Comprehensive Economic Partnership A greement (RCEP)  
3.44.   Leaders launched RCEP negotiations on 20 November 2012 in the margins of the 7th East 
Asia Summit. The RCEP negotiations include all ten members of ASEAN and the six countries which 
have FTAs with ASEAN: Australia, New Zealand, China, India , Japan and Korea. In 2018, the 16 
participating countries accounted for almost half of the world's population and over 30% of global 
GDP. Together they accounted for over 60% of Australia's two -way trade31 and 17% of Australia’s 
two-way investment in 2018.32 
3.5.3   Pacific Alliance Free Trade Agreement  
3.45.   Australia commenced negotiations with the Pacific Alliance (Chile, Colombia, Mexico and Peru) 
on 30 June 2017 in Cali, Colombia. Negotiations are continuing, with the most recent rounds held in 
Santiago, Chile in Sep tember 2019 and in Bogota, Colombia on 28 -30 October 2019. Securing an 
agreement with the Pacific Alliance will provide further opportunities for Australian exporters and 
investors in these strong and growing markets, and help boost the activity of Pacific  Alliance 
businesses in Australia . 
3.5.4   Australia -India Comprehensive Economic Cooperation Agreement (AI -CECA)  
3.46.   Australia and India commenced negotiations on the Australia -India Comprehensive Economic 
Cooperation Agreement (AI -CECA) in May 2011. Nine formal nego tiating rounds have been held, the 
last being in New Delhi in September 2015.  
3.5.5   Trade in Services Agreement (TiSA)  
3.47.   The Trade in Services Agreement (TiSA) is a services -only trade agreement that was under 
negotiation by a subset of WTO Members, jointly led by  Australia, the EU and the US. 23 parties (50 
economies, accounting for around 70% of global services trade) participated in TiSA negotiations.  
3.48.   TiSA negotiations aimed to set a new international standard in services liberali zation, feeding 
into future mult ilateral negotiations. TiSA was designed to build on the WTO General Agreement on 
                                                
31 DFAT STARS database and ABS catalogue 5368.0.55.003 & unpublished ABS data.  
32 ABS catalogue 53 52.0, 2018.  WT/TPR/G/396 • Australia  
 
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  Trade in Services (GATS) while also incorporating more ambitious rules from the FTAs of the TiSA 
members . The most recent TiSA negotiating round was held in December 2016.  
3.6  Bilateral or Regional FTAs Entering Into Force or Reviewed During the Review Period  
3.6.1   Comprehensive and Progressive Trans -Pacific Partnership (CPTPP)  
3.49.   The Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP) was 
signed on 8 March 2018 in Santiago, Chile by the governments of Australia, Brunei, Canada, Chile, 
Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam . The CPTPP entered into force 
for Australia, Canada, Japan, Mexico, New Zealand, and Singapore on 30 December 2018 and for 
Vietnam on 14 January 2019. It will enter into force for Brunei, Chile, Malaysia and Peru 60 days 
after each country completes its respective domestic legal processes and notifies New Zealand, as 
the CPTPP Depositary.  
3.50.   The CPTPP is one of the m ost comprehensive and ambitious trade agreements ever concluded. 
It will eliminate more than 98% of tariffs among the eleven member countries and deliver legally -
guaranteed, improved conditions for services exports to CPTPP markets. The Agreement delivers 
new preferential access for Australia to the markets of Mexico, Canada and Peru, and builds on 
preferential market access Australia had already secured through existing FTAs with Japan, Malaysia, 
Chile, Singapore, Vietnam and Brunei.  
3.6.2   ASEAN -Australia -New Ze aland Free Trade Area (AANZFTA)  
3.51.   The Agreement Establishing the ASEAN -Australia -New Zealand Free Trade Area (AANZFTA) 
was Australia's first multi -country FTA . Parties represent a diverse range of economies and political 
and economic systems . This agreement has contributed significantly to Australia’s economic 
integration with economies in Australia’s near region . Tariff-free treatment for over 96% of 
Australia's exports to ASEAN nations is anticipated by 2020. Prior to AANZFTA's entry into force in 
2010, onl y 67% of Australia's exports to the region were tariff -free. 
3.52.   AANZFTA has a built -in agenda covering goods, services, investment, intellectual property, 
standards, technical regulations and conformity assessment procedures, competition, sanitary and 
phytosa nitary measures, and economic cooperation. Australia actively supports capacity building 
and technical assistance activities under the AANZFTA Economic Cooperation Support Program 
(AECSP).  
3.53.   AANZFTA parties are implementing recommendations to upgrade the agr eement following a 
2017 General Review of the Agreement and 2018 AANZFTA ministerial endorsement of the 
recommendations from the review. The first round of upgrade negotiations will occur in 2020. The 
upgrade of AANZFTA will address rules of origin, custom s procedures (to include trade facilitation), 
services, investment, e -commerce, competition and government procurement.  
3.6.3   China -Australia Free Trade Agreement (ChAFTA)  
3.54.   The China –Australia Free Trade Agreement (ChAFTA) entered into force on 20 December 
2015. ChAFTA has supported growth in trade and investment between the two highly complementary 
economies, with China accounting for a quarter of Australia’s total trade in goods and services in 
2018. At the time of entry into force of ChAFTA, more than 85% of Au stralia’s goods exports to 
China (by value) entered China duty free. That percentage increased to 93% with the fifth round of 
tariff cuts in 2019, and will go to an estimated 97.9% when the Agreement is fully implemented in 
2029. Australia eliminated 100% of its remaining tariffs on Chinese goods in 2018.  
3.55.   Regarding the screening of Chinese investments by Australia's Foreign Investment Review 
Board (FIRB), a threshold of AUD  1,154 million applies to private company investments except in 
sensitive sectors (i. e. defence, media and telecommunications) as well as for agricultural land 
(AUD  15 million) and agribusiness enterprises (AUD 58 million). FIRB will continue to screen all 
investment by state -owned enterprises, regardless of value. The Agreement also inclu des an 
Investor State Dispute Settlement mechanism to promote investor confidence.  WT/TPR/G/396 • Australi a 
 
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  3.56.   ChAFTA contains a number of review provisions, including a general review of the Agreement, 
and reviews of the services and investment chapters and the associated Investment  Facilitation 
Arrangement MOU.  
3.6.4   Korea -Australia Free Trade Agreement (KAFTA)  
3.57.   The Korea -Australia Free Trade Agreement (KAFTA) entered into force on 12 December 2014. 
KAFTA is a comprehensive agreement that substantially liberali zes Australia's trade with th e Republic 
of Korea, its third -largest export market and fourth -largest overall trading partner. KAFTA has so far 
delivered six rounds of tariff cuts, the most recent on 1 January 2019. The third meeting of the 
KAFTA Joint Committee took place on 15 Februa ry 2019 . The Committee highlighted the smooth 
implementation of KAFTA, noted KAFTA’s role in strengthening trade and investment integration 
between the two countries, and identified scope for further outcomes for business (including in legal 
services and b y Korea exercising discretion rather than automatically applying safeguards on beef).  
3.6.5   Japan -Australia Economic Partnership Agreement (JAEPA)  
3.58.   The Japan –Australia Economic Partnership Agreement (JAEPA) entered into force on 15 
January 2015. JAEPA covers trade in goods and services, investment, intellectual property, 
government procurement and competition policy. JAEPA has so far delivered six rounds of tariff cuts, 
the most recent on 1 April 2019. The value of total goods and services exports to Ja pan grew by 
24.5% to AUD  58.8 billion in the year to 2018. JAEPA continues to be well utili zed,33 with 96% of 
eligible Australian exports entering Japan in 2017 using JAEPA tariff preferences . 93% of Australia’s 
imports from Japan that were eligible used JA EPA tariff preferences in 2017. JAEPA contains a 
number of review provisions, including a general review of the agreement in 2021 and a more 
focused review in 2020 for a range of priority agriculture products for Australia, including beef, 
wheat, barley, s ugar and key dairy products.34 
3.6.6   Singapore –Australia Free Trade Agreement (SAFTA)  
3.59.   The Singapore –Australia Free Trade Agreement (SAFTA) entered into force on 28 July 2003 . 
SAFTA is a comprehensive Agreement, making substantial commitments in goods, services an d 
investment between Australia and Singapore . In addition to complete tariff elimination, SAFTA 
guarantees liberal conditions of access for many service suppliers, and provides a more open and 
predictable business environment . SAFTA provides for ministeria l-level review of the Agreement 
every two years or as otherwise deemed necessary by Ministers.  
3.60.   SAFTA was amended in 2006, 2007, 2011 and significantly in October 2016 (entering into 
force in December 2017) . These 2016 amendments involved expanded services coverage in a 
number of sectors; ISDS modernisation; FIRB threshold increase; and changes to make the Rules 
of Origin more user -friendly . 
3.7  Other International Economic Engagement  
3.7.1   G20 
3.61.   Australia supports a stro ng and effective G20. Trade tensions continue to test the collective 
resolve of the G20. Against this backdrop, Australia has worked in the G20 to reinforce the value of 
trade liberali zation and global cooperation, particularly in the WTO.  
3.62.   Australia views the Declaration  from the June Osaka G20 Leaders’ Summit as valuable in 
affirming that international trade and investment are important engines of growth, productivity, 
innovation, job creation and development. G20 Leaders affirmed their support for WTO ref orm and 
agreed that action was necessary regarding the functioning of the dispute settlement system. 
                                                
33 DFAT Website, Free Trade Agreement Utilisation Study, Price Waterhouse Coopers Report, 2018 
https://dfat.gov.au/about -us/publications/trade -investment/Documents/free -trade -agreement -utilisation -
study -pwc-report.pdf . 
34 DFAT Website , JAEPA Review and Implementation Committees 
https://dfat.gov.au/trade/agreements/in -force/jaepa/review/Pages/jaepa -review -and-implementation -
committees.aspx#upcoming . WT/TPR/G/396 • Australia  
 
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  G20 Leaders also agreed to work to ensure a level playing field for businesses, and to recognize the 
complementary roles of WTO -consistent bilateral and re gional free trade agreements.  
3.63.   The G20 Ministerial Statement on Trade and Digital Economy was particularly timely and sent 
a strong signal to WTO members negotiating on e -commerce and digital trade issues.  
3.7.2   Asia-Pacific Economic Cooperation (APEC)  
3.64.   Australia remains a strong supporter of APEC as the primary regional forum for driving 
economic integration and a free and open trading environment in the Asia -Pacific. APEC’s consensus -
based approach and extensive engagement of stakeholders make it a valuable forum  to support the 
rules-based multilateral trading system . 
3.65.   Australia works in APEC to build support for open markets, the rules -based multilateral trading 
system and to resist protectionism. Australia’s priorities include: promoting opportunities provided 
by the digital economy; implementing practical initiatives to support regional integration, moving 
eventually to an Free Trade Area of the Asia Pacific (FTAAP); supporting developing APEC economies 
to implement structural reforms that promote economic growth ; investing in the economic 
empowerment of women; implementing the APEC Services Competitiveness Roadmap; and 
contributing to the development of APEC’s post -2020 vision for regional economic integration.  
3.66.   In 2018, Australia announced it will contribute AUD  1.1 million over two years toward APEC’s 
digital trade and digital economy agenda and AUD  1.1 million to support the economic development 
of remote areas in the region.  
3.67.   Australia has also been involved in the APEC data privacy initiative and on 23 November  2018, 
became a participant in the APEC Cross -Border Privacy Rules system . This system aims to promote 
business and community trust in cross -border flows of information. It centres on businesses 
developing appropriate data privacy policies.  
3.7.3   East Asia Summi t (EAS)  
3.68.   The East Asia Summit (EAS) is the Indo -Pacific’s premier leader -led forum for dialogue on 
strategic, political and economic issues of common interest and concern. It plays a role in reinforcing 
inclusive regional economic integration and cooperatio n, which can help support the peace, 
prosperity and stability of the region.  
3.69.   Australia is a strong supporter of, and active participant in, the EAS economic stream and, in 
particular, the EAS Economic (Trade) Ministers’ Meeting. This forum allows members t o discuss 
regional and global economic developments and trade liberali zation, including the Regional 
Comprehensive Economic Partnership (RCEP), as well as WTO matters.  
3.70.   Australia also works closely with ASEAN to support its connectivity efforts, including 
supporting ASEAN’s Masterplan on Connectivity 2025. Australia welcomed the adoption in June 2019 
of ASEAN’s Outlook on the Indo -Pacific and looks forward to advancing the work being done with 
ASEAN across the Outlook’s four areas of cooperation including co nnectivity and closer economic 
ties. 
3.7.4   Organization for Economic Cooperation and Development (OECD)  
3.71.   Australia values the OECD’s role in developing international economic, trade and investment 
policy . Australia gives a high priority to supporting the OECD’s w ork on international trade policy, 
including in the WTO context.  
3.72.   Australia will continue work in the Trade Committee to support the OECD’s evidence -based 
analysis, including on the Services Trade Restrictiveness Index, which provides information on 
regulat ions affecting trade in services. In 2018, the OECD completed an in -depth study of Australia’s 
services competitiveness and made a number of useful recommendations that will help inform 
Australian Government policy options to improve economic growth and co mpetitiveness (see section 
2.4.5 for further detail). Australia also contributed AUD 300,000 to support the extension of the WT/TPR/G/396 • Australi a 
 
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  Services Trade Restrictiveness Index to ASEAN Member States in the logistics, telecommunications, 
construction and computer service s sectors.  
3.73.   Australia is also closely engaged in the ongoing work of the OECD, along with the G20, on tax 
revenue base erosion and profit shifting to facilitate cooperation consensus amongst key economies 
and to reduce unilateral actions. A key aspect of th is work is the examination of the tax challenges 
arising from the digiti zation of the economy.  
3.74.   The OECD’s work measuring cross -border data flows and analysing the digital transformation 
of the global economy is an illustrative example of the role the OECD can play in informing WTO 
negotiations – in this case on e -commerce and digital trade. Australia strongly supports this work.  
3.8  Thematic Trade Policy Priorities  
3.8.1   E-Commerce/Digital Trade  
3.75.   Over the review period, Australia has been at the forefront of developin g international trade 
rules on e -commerce and digital trade . As discussed in section 2.4.8, the Australian Government 
has taken a comprehensive approach to developing strategies for domestic development of the 
digital economy, and to pursuing a digital tra de agenda as part of Australia’s International Cyber 
Engagement Strategy released in 2017.35  The digital trade chapter of the Strategy sets out how  
Australia plans to help shape an enabling environment for digital trade and promote trade and 
investment opp ortunities for Australian digital goods and services.  
3.76.   Australia has included e -commerce chapters in 10 of its 11 in force FTAs . Australia’s approach 
is to balance provisions that seek to facilitate digital trade, with provisions that ensure a safe 
environment for digital trade to occur (e.g. consumer protection, security, privacy etc) . FTAs signed 
during the review period (e.g. CPTPP, Australia -Hong Kong FTA) contain some of the most ambitious 
e-commerce provisions, including relating to data flows and locali zation requirements . Australia’s 
FTAs also support tariff reduction on technological inputs for businesses and consumers, as well as 
rules that benefit investors in digital businesses. Australia is currently negotiating a digital economy 
agreemen t with Singapore that intends to cover a broad range of new areas of bilateral cooperation, 
including digital trade facilitation, e -invoicing, e -payments, FinTech, digital identity and artificial 
intelligence. It will expand on both countries’ commitments under the Singapore -Australia Free Trade 
Agreement.  
3.77.   Australia led the launch of WTO e -commerce negotiations in January 2019, and continues to 
Chair those negotiations (see section 3.1.4 for more information) with the aim of establishing new 
global e -commer ce rules.  
3.78.   Australia also pursues outcomes in APEC, ASEAN, the G20 and OECD which support rule -
making and standard setting on digital trade. For example, Australia is a strong supporter of the 
APEC Cross -Border Privacy Regime.  
3.79.   Australian industry has expres sed a strong interest in seeing e -commerce negotiations set 
21st century rules to facilitate cross border data flows, prohibit forced data locali zation for all services 
sectors and enhance trade facilitation while maintaining strong consumer and privacy pr otections . 
3.8.2   Trade and Environment  
3.80.   Australia is a strong supporter of the WTO’s trade and environment agenda, including in the 
Committee on Trade and Environment . Australia has been actively involved in this work since the 
establishment of the WTO, and recogni zes the environmental and sustainability objectives of the 
WTO in accordance with the Marrakesh Agreement  (1994), Ministerial Decision on Trade and 
Environment  (1994) and the Doha Round mandate.  
3.81.   Australia remains a strong supporter of the plurilateral Environmental Goods Agreement 
(EGA) negotiations (see section 3.1.9 for more detail ). Australia is also actively participating in the 
                                                
35 DFAT Website, Australia’s International Cyber Engagement Str ategy , 2017 
https://dfat.gov.au/international -relations/themes/cyber -affairs/aices/index.html . WT/TPR/G/396 • Australia  
 
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  WTO Fisheries Subsidies negot iations (see section 3.1.3 for more detail) in recognition of the 
potential contribution that subsidy reform could make to improve the sustainability of marine capture 
fisheries across the globe . Australia has also co -sponsored with Canada, Mexico and New Zealand a 
proposal in the Council for Trade in Services in Special Session to explore market access in 
environmental services.36 This proposal recogni zes the potential of trade liberali zation to contain the 
costs of meeting environmental goals.  
3.82.   Australia al so continues to pursue trade and environment policies through FTA negotiations. 
Four of Australia's FTAs contain specific environment chapters: those with the US, Chile, Korea and 
the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (C PTPP) . The CPTPP 
contains ambitious provisions, including on biodiversity, ozone protection, marine pollution from 
ships, invasive alien species, marine capture fisheries and transition to lower emissions . All of 
Australia's FTAs include provisions that al low governments to pursue legitimate public policy 
objectives including for environmental protection.  
3.8.3   Trade and Women’s Economic Empowerment  
3.83.   Over the review period, Australia focused on finding practical ways to promote women’s 
economic empowerment by rais ing women’s participation in, or reducing barriers to access the 
multilateral rules -based trading system and the international economy. Australia supported the 
Buenos Aires Declaration on Women and Trade at MC11 and is taking steps to put it into effect. 
Australia continues to integrate gender equality and women’s economic empowerment into its 
investments under the WTO -led Aid for Trade initiative.  
3.84.   In the CPTPP Australia reaffirmed gender equality and inclusive trade, and agreed to 
cooperative activities to  promote the elimination of discrimination against women’s employment, 
and to activities designed to promote women’s economic empowerment.  
3.85.   Australia is actively engaged on trade and women’s economic empowerment issues in key 
economic fora, including suppor ting APEC initiatives. Australia is strongly supporting Chile’s efforts 
to make women’s economic empowerment a theme for APEC in 2019, through the APEC Women and 
the Economy Forum and the Santiago Roadmap on Women and Trade.  
3.86.   Australia is also partially fin ancing UNCTAD’s work with nine Pacific island countries in PACER 
Plus, which seeks to identify ways in which the transparency provisions of PACER Plus could ease 
difficulties that women face as producers and traders.  
3.8.4   Intellectual Property  
3.87.   Australia’s IP fr amework continues to be well -regarded internationally and is consistently 
ranked highly in international comparisons. Key areas of activity include: multilateral cooperation 
under the auspices of the World Intellectual Property Organization (WIPO) and the WTO; bilateral, 
plurilateral and multilateral international agreements; bilateral and plurilateral initiatives involving 
Australia’s domestic IP agencies and their overseas counterparts; and capacity building activities to 
strengthen IP systems in developi ng country partners.  
3.88.   Australia has continued to work with other WTO Members to develop regional rules on 
intellectual property that support and build on WTO commitments. This included through the 
successful conclusion and ratification of the CPTPP, and in the RCEP negotiations. Australia is also 
active in supporting WIPO. An Australian official currently chairs an ambitious normative project in 
WIPO, the Intergovernmental Committee on IP and Genetic Resources, Traditional Knowledge and 
Folklore.  In 2016, Au stralia was one of the initial twenty countries to ratify and bring into force the 
WIPO Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually 
Impaired or Otherwise Print Disabled.  
3.89.   A number of intellectual property rel ated legislative developments have occurred since 
Australia's last WTO Trade Policy Review:  
                                                
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  • The Intellectual Property Laws Amendment Act 2015 came into full effect on 24 February 
2017. This Act implemented the Protocol amending the WTO TRIPS Agreement, ena bling 
Australian medicine producers to manufacture and export patented pharmaceuticals to 
countries experiencing health crises.  
• In response to a Productivity Commission (PC) public inquiry into Australia’s IP system, a 
number of changes were made through t he Intellectual Property Laws Amendment Act 2018, 
including clarifying parallel importation regarding copyright and trademarks, changes to 
essentially derived plant varieties, and reducing the trademark non -use removal period.  
• A number of amendments to the  Copyright Act came into effect to deal with online 
infringement, disability access to copyright material, and to extend the operation of existing 
copyright safe harbour scheme to a broader range of service providers.  
• The National Security Legislation Amen dment (Espionage and Foreign Interference) 2018 
introduced new penalties for industrial espionage.  
3.8.5 Trade -Related Development Assistance (Aid for Trade)  
3.90.   Australia has been a strong supporter of the Global Aid for Trade Initiative since it began in 
2005, and aid for trade continues to be a priority for Australia’s development program.  
3.91.   In line with the Sustainable Development Goals, which call for an increase in aid for trade 
support to least developed countries (LDCs), the Australian Government set a ta rget in June 2014 
to increase Australia's aid for trade investments to 20% of the total aid budget by 2020. At that 
time, aid for trade represented about 12.9% of the total aid budget. Australia achieved its target 
ahead of schedule in 2016 -17, when aid fo r trade reached 23.3% (or AUD  941 million) of the total 
budget.37 The target was met again in 2018 and 2019.38 
3.92.   Australia’s Aid for Trade Investments Strategy, released in 2015, identifies eight priority 
areas: trade and investment policy and trade facilitation; global value chains; infrastructure; private 
sector development; economic empowerment of women; knowledge and skills development; 
agriculture; and services.  
3.93.   Australia's aid for trade is delivered through multilateral, regional and bilateral c hannels. 
Multilateral aid for trade includes funding for key WTO partnerships, including: the Enhanced 
Integrated Framework; the Standards and Trade Development Facility; and the Trade Facilitation 
Agreement Facility.  
3.94.   Australia partners with the World Bank ’s Trade Facilitation Support Program, and the Global 
Alliance on Trade Facilitation, to help developing countries align their trade policies and practices 
with the WTO Agreement on Trade Facilitation. Australia also supports the Advisory Centre on WTO 
Law, to assist developing countries and LDCs.  
3.95.   Australia also partners with multilateral organi zations to help ensure the benefits of trade are 
inclusive. This includes partnerships with the International Labour Organization’s Better Work 
Program; World Intell ectual Property Organization’s Accessible Books Consortium; and Asia 
Development Bank’s Trade Finance Program.  
3.96.   Regionally, Australia delivers aid for trade to help developing countries maximi ze the benefits 
of regional trade agreements. This includes: an A UD 26 million economic cooperation support 
program to assist with implementation of the ASEAN Australia New Zealand Free Trade Agreement; 
and readiness and implementation assistance packages to help Pacific Island countries ratify and 
prepare for the Pacif ic Agreement on Closer Economic Relations (PACER) Plus Trade Agreement.  
                                                
37 DFAT Website, Overview of Australia’s aid for  trade https://dfat.gov.au/aid/topics/development -
issues/aid -for-trade/Pages/aid -for-trade.aspx . 
38 DFAT Website, Australian Aid Budget Summary, 2019 -20 https://dfat.gov.au/about -
us/corporate/portfolio -budget -statements/Documents/2019 -20-australian -aid-budget -summary.pdf . WT/TPR/G/396 • Australia  
 
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  3.9  Trade and Investment Promotion  
3.97.   The Government has developed an Economic and Commercial Diplomacy Agenda which guides 
cooperation between Austrade and the Department of Foreign Affairs and Trade on foreign trade and 
investment promotion . The Agenda has five pillars: promoting investment; addressing non -tariff 
barriers; supporting and facilitating business; advocating for the global rules -based system; and 
increasing science, technology a nd innovation links.  
3.98.   A key focus is helping to attract, retain and grow international investment in Australia and to 
strengthen Australia’s international reputation as a source of foreign investment . The five priority 
sectors for inbound investment  are agribusiness and food; major infrastructure; tourism 
infrastructure; resources and energy; and advanced manufacturing, services and technology. Federal 
and state and territory governments work co llaboratively to set investment priorities, facilitate 
investment opportunities, and identify and address investment impediments.  
3.99.   The Government is also implementing the 2017 Foreign Policy White Paper commitment to 
build a positive narrative around trade and investment and the benefits of economic openness for 
the Australian community. DFAT has collaborated across government to ensure accurate information 
about the benefits of international trade and investment is available to a broad range of Australian 
businesses and consumers. DFAT and Austrade delivered 123 FTA information seminars between 
March 2015 and May 2019 in different parts of Australia, engaging with more than 5500 business 
and other community representatives.  
4  LOOKING AHEAD  
4.1.  Australia’s prosperi ty will continue to rely on the competitiveness of our economy and our 
ability to seize opportunities globally. For this reason, Australia will continue to pursue openness and 
support rules as key goals of its trade policy. Australia’s trade and economic p olicies will need to 
reflect the changing nature of trade, driven by advances in technology and changes in the relative 
competitiveness of economies.  
4.2.  Australia will continue to benefit from the complementarity of its economy with those of its 
neighbours. A sian economic growth and urbani zation will sustain demand for minerals and energy, 
agricultural products and services. Australia is also working to build stronger economic partnerships 
with trading partners in Europe, Latin America, the Middle East and Afr ica. 
4.3.  There are significant opportunities for Australia to further enhance use of science and 
technology to improve productivity and to harness new sources of economic growth, including 
participation in the digital economy . The Australian Government is focu sed on assisting and investing 
in this process, including by incentivising research and development as a key driver of private sector 
innovation.  
4.4.  Australia remains a staunch advocate for an open international economy, and will continue to 
stand against pro tectionism and to promote and defend the international trade rules that guard 
against unfair trade actions and help to resolve disputes. Australia sees trade tensions, challenges 
to the rules -based trading system and scepticism about the value of internati onal trade as key risks. 
It is important that trade tensions are resolved in a manner that does not undermine the system.  
4.5.  WTO reform is a long -term project and a key plank of Australia’s trade policy . To remain 
relevant, the WTO rulebook must be updated to  fill gaps and keep pace with economic and 
technological change, including using new models of negotiation . Free Trade Agreements will 
continue to complement this work . Australia will also work hard to ensure a functioning WTO dispute 
settlement system . 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.  
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  REFERENCES  
Australian Government , Foreign Policy White Paper, 2017  https://www.fpwhitepaper.gov.au   
Deloitte Access Economics, The Connected Continent II, 2015  
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economics -connected -continent -ii-2015-300315.pdf . 
 
Department of Foreign Affairs and Trade, Australia’s International Cyber Engagement Strategy, 2017  
https://dfat.gov.au/international -relations/themes/cyber -affairs/aices/index.html . 
 
Department of Foreign Affairs and Trade, Free Trade Agreement Utilisation Study, Price Waterhouse 
Coopers Report, 2018  
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investments.aspx . 
 
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Digital Transformation Agency, Digital Transformation Strategy  https://www.dta.gov.au/digital -
transformation -strategy . 
 
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OECD Publication, Australian Services Trade in the Global Economy, 2018 
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en.htm . 
 
Australian Treasury website, Multilateral Convention to Implement Ta x Treaty Related Measures to 
Prevent Base Erosion and Profit Shifting  https://treasury.gov.au/tax -treaties/multilateral -
instrument . 
 
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