WT/REG395/1/Add.1  
1 April 2021 
(21-2761) Page: 1/18 
Committee on Regional Trade Agreements    
 
 
 
 
APPENDIX  1 AUSTRALIA  
  WT/REG395/1 /Add.1  • Australia  
 
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  Table of Contents  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 3 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 3 
1.2   Trade in services  ................................ ................................ ................................ .........  5 
2   LIBERA LIZATION OF TRADE IN GOODS  ................................ ................................ ....... 7 
2.1   Import duties and charges and quantitative restrictions  ................................ ..........  7 
2.2   Liberalization schedule  ................................ ................................ ................................ . 7 
2.3   Tariff rate quotas  ................................ ................................ ................................ .........  8 
2.4   Export duties and quantitative restrictions on exports  ................................ ......................  8 
3   LIBERALIZATION OF TRADE IN SERVICES ................................ ................................ ... 8 
3.1   Horizontal commitments  ................................ ................................ ...............................  9 
3.2   Sector -specific commitments  ................................ ................................ ........................  9 
3.2.1    Business services  ................................ ................................ ................................ .....12 
3.2.2    Communication services  ................................ ................................ ........................... 12 
3.2.3    Construction services  ................................ ................................ ............................... 12 
3.2.4    Distribution services  ................................ ................................ ................................ .12 
3.2.5   Educational services  ................................ ................................ ................................ .12 
3.2.6    Environmental services  ................................ ................................ ............................. 13 
3.2.7    Financial services  ................................ ................................ ................................ .....13 
3.2.8    Health and social related services  ................................ ................................ .............. 13 
3.2.9    Tourism and travel related services  ................................ ................................ ............ 13 
3.2.10    Recreational, cultural and sporting services  ................................ ............................... 13 
3.2.11    Transport services  ................................ ................................ ................................ ..14 
ANNEX 1  ................................ ................................ ................................ ........................  15 
 
  WT/REG395/1 /Add.1  • Australia  
 
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  1  TRADE ENVIRONMENT  
1.1  Merchandise trade  
1.1.  Chart 1.1 shows the share s of Australia's trade with  the Parties and the other CPTPP Signatories  
(top panel) . It also shows Australia's  share of  trade with the CPTPP Signatories  with and without 
overlapping RTAs (bottom panel) .  
1.2.  Australia's  imports from the Parties  correspond ed to 17% of its global imports while exports to 
the Parties were 21% of total exports . Its trade with CPTPP Signatories (the Parties as well as those 
for which the Agreement is not yet in force)  was higher,  correspond ing to 21% of its total imports 
and 23% of its total exports. Moreover, Australia's imports from CPTPP signatories with overla pping 
RTAs amounted to 19% of its total imports while exports to CPTPP signatories with overlapping RTAs 
corresponded to 22% of its total exports.  
Chart 1.1 Australia: Shares of trade with Parties and Signatories , average 2016 -2018  
 
Source:  UNSD, Comtrade database . 
1.3.  Chart 1.2 shows the evolution over time of Australia's bilateral imports and exports with the 
other Parties. The Parties  for which the Agreement  is in force are shown individually while those for 
which it is not yet in force are  shown  together. Trade with the Parties tended to increase over the 
first part of the period considered with a slowdown starting with the crisis of 2008 and some 
fluctuations afterwards. Japan was Australia's largest  trading partn er. Among the CPTPP Signatories 
for which the Agreement  is not yet in force, Malaysia was the largest source of imports and 
destination for exports.  
WT/REG395/1 /Add.1  • Australia  
 
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  Chart 1.2 Australia: Merchandise t rade with individual Parties, 2000 -2018  
 
Source:  UNSD, Comtrade database . 
1.4.  Chart 1.3 shows the composition of Australia's imports (left panel) and exports (right panel) 
by HS section and partner  during 2016 -2018. For the three largest traded HS sections, represented 
by a colou r, the chart also shows the origin or the destination of the goods. All other HS sections 
are aggregated in the category labelled as "Others"  (in grey) . CPTPP Signatories are identified 
individually while trade with other partners  has been aggregated under  the rest of the World label 
(ROW). If the label of a partner cannot be clearly seen, it is an indication that trade does not 
represent a significant share.  
1.5.  Australia's largest global imports were machinery  (HS Section 16) , vehicles (HS Section 1 7) 
and min eral products  (HS Section 5) . Among the Parties , the most important partners were Japan 
for machinery and vehicles and Singapore for minerals  trading . Australia mainly export ed mineral  
products , precious stones (HS Section 14) and animal products  (HS Secti on 1) . Most of its exports 
of mineral  products  and animal products went to Japan while exports of precious stones went mainly 
to Singapore. Among the CPTPP Signatories for which the Agreement is not yet in force, Malaysia 
was the largest partner for imports and exports of all  top three HS sections.  
Chart 1.3 Australia: Product composition of merchandise trade  by HS section , annual 
average ( 2016 -2018 ) 
 
Source:  UNSD, Comtrade database . 
WT/REG395/1 /Add.1  • Australia  
 
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  1.2  Trade in services  
1.6.  Chart 1.4 shows the shares of Australia's trade in commercial services with  the Parties and the 
CPTPP Signatories (top panel). It also shows Australia's  share of trade with the CPTPP Signatories 
with and without overlapping RTAs (bottom panel) .  
1.7.  Australia's imports and exports of  commercial  services from the Parties corresponded to 20% 
of its global imports and 18% of its global exports respectively. Its trade with CPTPP Signatories 
(the Parties as well as those for which the Agreement is not yet in force) is slightly higher, 
corresponding to 21.5% of its tot al imports and exports. Moreover, Australia's imports from CPTPP 
signatories with overlapping RTAs amounted to 17 .4% of total imports while exports corresponded 
to 16. 5% of its total exports.  
Chart 1.4 Austral ia: Shares of  commercial  services trade with Parties and Signatories , 
2015 -2017  
 
Note:  Exchange rates used to convert AUD to USD: 2015 -2017 (1.3).   
Source:  Data provided by the Australian authorities.  
1.8.  Chart 1.5 shows the value of bilateral imports and exports of  commercial  services by Party. 
Singapore, New Zealand and Japan are Australia's  largest trading partner s for both imports and 
exports of commercial services.  
WT/REG395/1 /Add.1  • Australia  
 
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  Chart 1.5 Australia: Bilateral commercial services trade by Party, average 2015 -2017  
 
Note:  Exchange rates used to convert AUD to USD: 2015 -2017 (1.3).  
Source:  Data provided by the Australian authorities.  
1.9.  The services category  composition of trade in  commercial  services  with the world  Chart 1.6 
The three largest services categories  are highlighted for imports and exports while trade in all other 
categorie s has been aggregated. Travel  services are the largest imported and exported sector. 
Transport and other business services are Australia's second (third) and third (second) imported 
(exported ) commercial services.  
Chart 1.6 Australia: Services category composition of commercial services trade,  2015 -
2017  
 
Note:  Exchange rates used to convert AUD to USD: 2015 -2017 (1.3).  
Source:  Data pro vided by the Australian authorities . 
1.10.   No data are available on bilateral FDI stocks and flows between Australia and the other 
Parties.  
0 1 2 3 4
Canada
Japan
Mexico
New Zealand
Singapore
Viet Nam
Other CPTPP(USD billion)
Import Export
WT/REG395/1 /Add.1  • Australia  
 
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  2  LIBERALIZATION OF  TRADE IN GOODS  
2.1  Import duties and charges and quantitative restrictions  
2.1.  Australia has been granted a few exceptions to the general prohibition o n quantitative 
restrictions on imports in Annex 2 -A; see Section 3.1.1 of the general Factual Presentation.  
2.2  Liberalization schedule  
2.2.  In 2018, Australia's applied MFN tariff comprised 6, 474 lines at the eight-digit level, of which  
22 lines were non -ad valorem (specific, compound or mixed).  
2.3.  Australia has a common liberalization schedule for all the Parties.  Australia and Viet Nam apply 
the catch -up mechanism between themselves.1  
2.4.  Table 2.1 shows tariff and trade liberalization by Australia under the  Agreement . Prior to its 
entry into force, 47.7% of Australia's tariff lines were duty -free, accounting for imports from  the 
Parties  ranging from 35.6% in the case of Japan to 80.5% in the case of Singapore. Following the 
Agreement 's entry into force, Australi a liberalized an additional 2,953  lines representing 45.6% of 
its tariff , corresponding to  between 18.2%  (Singapore)  and 59% (Japan) of its imports from other 
Parties . Following the end of the transition period in 2021, 13 lines will remain dutiable, representing 
a negligible amount of imports from the other Parties . 
Table 2.1 Australia: Tariff elimination commitments under the CPTPP  and corresponding 
average trade  
Duty phase -out 
period  Number 
of lines  % of total 
lines in 
AUS's 
tariff 
schedule  Australia's Imports from CPTPP parties  (2015 - 2017)  
(USD million)  
CAN JPN MEX 
Value  % Value  % Value  % 
2018 (MFN)  3,088  47.7 983.8  60.7 5,342.4  35.6 1,218.5  62.5 
2018 2,953  45.6 561.1  34.6 8,852.8  59.0 595.7  30.5 
2020 212 3.3 43.5 2.7 724.8  4.8 122.7  6.3 
2021 208 3.2 30.5 1.9 45.8 0.3 13.6 0.7 
Remain dutiable  13 0.2 0.8 0.0 35.5 0.2 0.1 0.0 
TOTAL  6,474  100.0  1,619.7  100.0  15,001.3  100.0  1,950.5  100.0  
Duty phase -out 
period  Number 
of lines  % lines  NZL SGP VNM 
Value  % Value  % Value  % 
2018 (MFN)  3,088  47.7 2,875.5  50.4 4,859.8  80.5 2,050.6  58.4 
2018 2,953  45.6 2,577.2  45.2 1,098.4  18.2 1,031.1  29.3 
2020 212 3.3 47.2 0.8 53.1 0.9 75.3 2.1 
2021 208 3.2 199.9  3.5 22.3 0.4 356.2  10.1 
Remain dutiable  13 0.2 1.9 0.0 0.3 0.0 - - 
TOTAL  6,474  100.0  5,701.6  100.0  6,033.9  100.0  3,513.2  100.0  
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Australia.  
2.5.  Table 2.2 shows Australia's tariff liberalization by HS section. All agricultu ral products under 
HS Sections I -IV were fully liberalized at entry into force; industrial products are to be liberalized at 
the latest by 2021. The 13 lines remaining dutiable  are under HS Section XVII for second -hand 
vehicles of HS 8703  which  remain subj ect to a specific duty  of AUD 12,000 each. The MFN ad -
valorem component, set at 5% in 2018, was eliminated as from entry into force.  
 
1 The catch -up mechanism  for "late-comers " provides that the Party will implemen t at once  all the tariff 
cuts already in force for other  Parties . WT/REG395/1 /Add.1  • Australia  
 
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  Table 2.2 Australia: Tariff elimination under the CPTPP , by HS Section  
HS 
Section  MFN 
average 
% Total 
Number of 
lines  Duty -free 
lines under 
the 
MFN 2018  Number of  duty-free lines 
under CPTPP  Number of . 
lines 
remaining 
dutiable  Avg. Final 
Tariff 
(Dutiable)  2018 
2020  
2021  
I 0.0a 374 367 7     
II 0.7 321 275 46     
III 1.8 49 31 18     
IV 2.6 293 140 152  1   
V 0.4 198 184 14     
VI 1.4 964 695 259  10   
VII 4.5 239 24 174 36 5   
VIII 3.6 92 29 57  6   
IX 3.2 179 65 110  4   
X 3.7 285 72 213     
XI 5.3 920 162 591 22 145   
XII 2.5 60 30 10  20   
XIII 3.4 167 53 104 10    
XIV 1.0 53 42 11     
XV 3.5 583 171 348 59 5   
XVI 2.9 1,000  412 536 45 7   
XVII 3.6 272 76 154 29  13 a 
XVIII 0.9 240 195 37 8    
XIX 1.6 19 13 6     
XX 3.7 159 45 106 3 5   
XXI 0.0 7 7      
Total  2.8 6,474  3,088  2,953  212 208 13  
a Dutiable tariff lines are subject to specific duties.  
Note:  For the calculation of averages, specific rates are excluded and the ad valorem parts of alternate 
rates are included.  
 Based on HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Australia.  
2.6.  Between Australia and Japan, a reciprocal, "upon request" rendez -vous clause providing for 
consultations on Japan's commitments in its Tariff Schedule app ly; apply; see the last paragraph of 
Section 3. 1.2 of the Factual Presentation for further details.  
2.3  Tariff rate quotas  
2.7.  Australia has no TRQs under the CPTPP.  
2.4  Export duties and quantitative restrictions on exports  
2.8.  Australia does not apply export duties.  
2.9.  Australia has been granted  a few exceptions to the general prohibition o n quantitative 
restrictions on exports in Annex 2 -A; see Section 3.3 of the general Factual Presentation.  
3  LIBERALIZATION OF  TRADE IN SERVICES  
3.1.  Under the Agreement Australia made commitments in all services  identified in the WTO 
Services Sector al Classification2, except for primar y education, health related  and social services, 
which are unbound under the Agreement and to a large extent also under  the GATS.3 Where 
commitments were taken, these are in general broader than under the GATS with some exceptions 
where commitments are the same  or narrower.  For instance, in news agency, franchising, tourist 
 
2 The WTO Services Sector al Classification (WTO document MTN.GNS/W/120) is based on the UN 
Central Product Classification (CPC), and comprises 11 sectors and 55 subsectors. In addition to these 11 
sectors, the classification includes a t welfth category named "Other services not included elsewhere", which for 
the purpose of this exercise has not been included, and it is therefore not shown in Table 3.1.  
3 In its GATS schedule, Australia has listed some commitments in other human health ser vices.   WT/REG395/1 /Add.1  • Australia  
 
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  guides services, insurance, pipeline transport, and secondary and higher education services, 
commitments under the Agreement and the GATS are the same  (or similar ), while in environmental 
services commitments are narrower.  
3.2.  Australia  maintains 37 reservations,  which are  the lowest number listed by any Pa rty. Of these 
reservations, 11 apply horizontally, that is to all sectors, and the rest are sector specific, including 
one reservation on social services which covers more than one sector . A similar reservation on social 
services is on e of several reservations common to other Parties. Australia  also reserves the right to 
maintain all existing non -conforming measures at the regional level of government but does not list 
them in the Agreement. Regional non -conforming measures were not listed in its GATS schedule 
either.  
3.1  Horizontal commitments  
3.3.  Australia listed  11 horizontal reservation s - three  and eight respectively,  for existing and future 
non-conforming measures  - which i n most case s, build upon those in its GATS schedule. For instance, 
Australia reserves under the Agreement and the GATS the right to adopt or maintain any measure 
affecting investment and cross -border trade granting preferences or  more favourable treatment to 
indigenous persons or organizations.4 Australia also lists the GATS reservation that covers all existing 
non-conforming measures at the regional level of government. In addition, it imposes notification 
and approval requirements for foreign investment exceeding specific thr esholds depending on the 
nature of the investment . In its GATS schedule Australia require s foreign investment to be notified 
and examined under its foreign investment policy . The Agreement  allows  Australian government s to 
use designs that have been registered or disclosed in an application for registration . 
3.4.  Under other reservations for future  non-conforming measures Australia reserves the right to 
adopt or maintain any measure with respect to: services supplied by natural persons subject to the 
provisions of Chapter 12 (Temporary Entry for Business Persons) that is not in consistent with its 
obligations under GATS Article XVI; investments by foreign persons or governments in Australian 
urban land; screening of propo sed foreign investments exceeding  AUD15 million  in Australian 
agricultural land and A UD53 million  in Australian agribusinesses;  and the transfer or disposal of 
government owned entities or assets or portion thereof to Australian persons .  
3.5.  In addition, Australia reserves the right to adopt or maintain any measure at the regional level 
of government that is not in consistent with its obligations on marke t access under GATS Article XV I 
and its commitments under its GATS schedule, which have been updated for the purpose of this 
reservation. The amendments are listed in Appendix A and improve Australia's GATS commitments 
thus binding them at a higher level.5  
3.6.  Finally, Australia also reserves the right to adopt or maintain any measure that accords more 
favourable treatment to any service supplier or investor under any bilateral or multilateral 
international agreement in force or signed prior to the Agreement' s entry into force, for any 
measures taken under ANZCERTA or with a Pacific Island Forum member state, or under any 
agreement in force or signed after the Agreement's entry into force involving aviation, fisheries or 
maritime matters including salvage.6  
3.2  Sector -specific commitments  
3.7.  Under the Agreement Australia  made commitments in ten of the 11 sectors identified in the 
WTO Services Sector al Classification . Its GATS schedule (with 11 sectors committed) covers  these 
sectors but also includes some commitments, although very limited, in health and social related 
services . Australia add ed some new subsectors  under the  Agreement , bringing the total number of 
subsecto rs to 50 (out of 55)  compare d to 34 under the GATS. It made full  commitments in 2 4 
subsectors  (subject to several horizontal reservations) , while maintaining sector -specific 
reservations in another 2 6. For example,  full commitment s were made  in construction and related 
 
4 Australia also maintains MFN exemptions in audio -visuals under the GATS.  
5 A similar reservation has been listed by Canada, Mexico, New Zealand and Viet  Nam. 
6 A similar reservation has been listed by all other CPTPP Parties.  WT/REG395/1 /Add.1  • Australia  
 
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  engineering services , tourism and travel related services , and to a large extent business services, 
all subject to limitations under the GATS.  
3.8.  Australia  listed 2 6 sectoral reservations,  including one for social services which covers more 
than one sector.  Under this broad carve out, Australia can adopt or maintain any non -conforming 
measure affecting cross-border trade and investment with respect to the provision of law 
enforcement and correctional services, and the following services to the extent that they are social 
services established or maint ained for a public purpose:  income security or insurance, social security 
or insurance, social welfare, public education, public training, health, childcare, public utilities, public 
transport and public housing. This reservation is similar to that listed by other CPTPP Parties except 
that its scope is broader as it also covers  public utilities, public transport and public housing.7  
3.9.  Table 3.1 compares Australia's sectoral commitments under the Agreement and under its GATS 
schedule for  modes 1 -3. The comparison does not take into account MFN and horizontal limitations,  
and is based on the WTO Services Sectoral Classification.  
Table 3.1 Australia : comparison between the GATS and Agreement  of sector -specific  
commitments  (modes 1 -3 only)  
Sectors (CPC Classification)  – Australia  
RTA as compared to 
the GATS  GATS  RTA Sectoral 
commitments  
Sectoral 
commitments  Reservations 
numbered in order 
of appearance  
Existinga 
(Annex I)  Futurea 
(Annex 
II) 
1. Business services        
A. Professional  Services  Broader  Partial  Partial  3, 5, 6  7 
B. Computer  and Related  Services  Broader  Partial  Full - - 
C. Research  and Development  Services  Broader  Partial  Full - - 
D. Real  Estate  Services  Broader  Partial  Full - - 
E. Rental/Leasing  Services  without  Operators  Broader  Partial  Full - - 
F. Other  Business  Services  Broader  Partial  Partial  8 - 
2. Communication services        
A. Postal  services  New None Fullb - - 
B. Courier  service s New None  Fullb  - - 
C. Telecommunication  services  Broader  Partial  Partial  9 - 
D. Audiovisual  services  New None Partial  - 8, 9 
E. Other  New None Full - - 
3. Construction and related engineering services        
A. General  construction  work for buildings  Broader  Partial  Full - - 
B. General  construction  work for civil engineering  Broader  Partial  Full - - 
C. Installation  and assembly  work  Broader  Partial  Full - - 
D. Building  completion  and finishing  work  Broader  Partial  Full - - 
E. Other  New None Full - - 
4. Distribution services       
A. Commission  agents'  services  Broader  Partial   Full - - 
B. Wholesale  trade services  Broader  Partial  Partial  - 11 
C. Retailing  services   Broader  Partial  Partial  - 11 
D. Franchising   Same  Full Full - - 
E. Other  New None Full - - 
5. Education al services       
A. Primary education services  Same  None None - 7, 12 
B. Secondary education services  Similar  Partial Partial  - 7 
C. Higher education services  Similar  Partial  Partial  - 7 
D. Adult education  New None Partial  - 7 
E. Other education services  Broader  Partial  Partial  - 7 
 
7 All CPTPP Parties  under review include a reservation on social services.  WT/REG395/1 /Add.1  • Australia  
 
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  Sectors (CPC Classification)  – Australia  
RTA as compared to 
the GATS  GATS  RTA Sectoral 
commitments  
Sectoral 
commitments  Reservations 
numbered in order 
of appearance  
Existinga 
(Annex I)  Futurea 
(Annex 
II) 
6. Environ mental  services       
A. Sewage services  Narrower  Full Partial  - 7 
B. Refuse disposal services  Narrower  Full Partial  - 7 
C. Sanitation and similar services  Narrower  Full Partial  - 7 
D. Other  New None Partial  - 7 
7. Financial services       
A. All insurance  and insurance -related  services  Same Partial  Partial  2A, 3A, 5A  1B 
B. Banking  and other financial  services  Broader  Partial  Partial  1A, 2A, 
3A, 4A  1B 
C. Other  Broader  None Partial  2A 1B 
8. Health related and social services       
A. Hospital services  Same  None None - 7 
B. Other Human Health Services  Narrower  Partial  None 10 7 
C. Social Services  Same None None - 7 
D. Other  Same None None - 7 
9. Tourism and travel related services       
A. Hotels  and restaurants (incl. catering)  Same  Full Full - - 
B. Travel  agencies  and tour operators  services  Broader  Partial  Full - - 
C. Tourist  guides  services  Same  Full Full - - 
D. Other  New None Full - - 
10. Recreational and cultural and sporting services       
A. Entertainment  services  New None Partial  - 8, 10 
B. News agency services  Same  Full Full - - 
C. Libraries, archives, museums and other cultural 
services  New None Full - -  
D. Sporting and other recreational services  Broader  Partial  Partial  - 10, 13 
E. Other  New None Partial - 10 
11. Transport services        
A. Maritime Transport Services  Broader  Partial  Partial  11, 12  7, 14 
B. Internal Waterways Transport  services   New None Partial - 7 
C. Air  Transport  Services  Broader  Partial  Partial  13, 14  7, 15, 
16 
D. Space  Transport services   New None Full - - 
E. Rail  Transport  Services  New None Partial  - 7 
F. Road  Transport  Services  Broader  Partial  Partial  - 7 
G. Pipeline  Transport services  Same Full Full - - 
H. Services  auxiliary  to all modes  of transport  Broader  Partial  Partial  7 - 
I. Other  Transport  Services  New None Full - - 
a Except for reservations in financial services, which are listed in Annex III.  
b This service is fully committed to the extent that it is not covered by the exemption on services 
supplied in the exercise of governmental authority  under Article 10.2 ( paragraph 3(c) ). 
- No reservations apply.  
Partial:  Commitments are subject to one or more sector -specific limitation/reservation  
Full: Commitments are not subject to any sector -specific limitation/reservation.  
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations are not considered.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/ AUS), prepared by the 
Secretariat and Australia 's Schedules annexed to the Agreement.  WT/REG395/1 /Add.1  • Australia  
 
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  3.2.1   Business services  
3.10.   In professional services, Australia made full commitments in computer and related services, 
R&D services, real estate services and rental/leasing services, all subject to limitations under the 
GATS, and expanded its GATS commitments in pr ofessional and other business services while 
maintaining some reservations. In professional services, Australia has no limitations under its GATS 
schedule for t axation, architectural , urban planning, dental, veterinary, and engineering and 
integrated engin eering service s. Under the Agreement, it replicate d these commitments and in 
addition made full commitments in accounting, auditing and book keeping services, restricted under 
the GATS, and landscape architectural services, excluded under the GATS. It also made some 
commitments in legal services  but impose d nationality or establishment requirements for migration 
agents, company auditors, and patent attorneys.  Health -related  professional services (i.e. medical 
services and services provided by mid -wives, nurs es, physiotherapists, and para -medical personnel ) 
remain unbound as they are subject to the mu lti-sector reservation on social services . 
3.11.   In other business services, Australia expanded its GATS sectoral coverage, which includes 
15 activities out of 20 (full y or partially) and made full commitments in all activities except for fishing 
for which foreign vessels are subject to authorizations and levies. This is Australia's only reservation 
in other business services . The additional activities include packaging, printing, publishing, and 
services incidental to manufacturing.  
3.2.2   Communication services  
3.12.   Australia made commitments  in postal8, courier and audio -visual services, all unbound under 
its GATS schedule but maintained some reservations in audio -visual services . It reserve d for example 
the right to adopt or maintain any measure granting preferential co -production arrangements for 
film and television productions; or affecting the transmission  quotas for local content for unpaid 
television and radio broa dcasting services, spectrum management or the licensing of broadcasting 
services.  
3.13.    In postal and courier services , Australia did not list any reservation s, and according to the 
authorities both subsectors benefit from full commitments under the Agreement to the extent that 
they are not covered by the exemption on services supplied in the exercise of governmental authority 
under Article 10.2 (paragraph 3(c)).  The authorities also noted that Australia Post, a State -owned 
company has the exclusive right to pr ovide some, but not all, postal services . In telecommunications 
services, restricted under the GATS, Australia maintains an equity ceiling on ownership and 
restrictions on the composition of the board of directors of Telstra. This is the only reservation 
affecting telecommunications services.  
3.2.3   Construction services  
3.14.   In construction services, Australia made full commitments – no reservations are listed under 
the Agreement.  
3.2.4   Distribution services   
3.15.   In distribution services, Australia reserves the right to adopt or maintain any measure with 
respect to wholesale and retail trade services of tobacco products, alcoholic beverages or firearms. 
No other reservations are listed for this sector.  
3.2.5   Education al services  
3.16.   Australia 's commitments i n education services  under the Agreement mirror to a large extent 
those under its GATS schedule, except that under the Agreement  adult education services  provided 
 
8 Postal and courier services are not subject to any reservation, and according to the authorities fully 
committed to the extent that the service is not covered by the exemption on services supplied i n the exercise 
of governmental authority  under Article 10.2 (paragraph 3(c)). The authorities further clarified that Australia 
Post, a wholly -owned government entity has the exclusive right to provide some, but not all, postal services, 
and that the operat ions of Australia Post are covered by the exception on services supplied in the exercise of 
governmental authority.  WT/REG395/1 /Add.1  • Australia  
 
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  by private institutions are covered.9 Primary and public education remain unbound as Australia 
reserves the righ t to adopt or maintain any measure  affecting the supply of these services.10 
3.2.6   Environmental services  
3.17.   Australia reserves the right to adopt or maintain any measure with respect to market access 
affecting public utilities  to the extent that they are social se rvices established or maintained for a 
public purpose . Under the GATS, no limitations are listed for this sector.11 
3.2.7   Financial services  
3.18.   Australia 's financial services commitments are limited  under the Agreement , and mirror most 
of its GATS limitations. Australia  imposes residency requirements on the directors of private and 
public companies operating in the financial sector and reserves the right to maintain all existing non -
conforming measures at the regional level of government. It also lists some subsector -specific 
reservations. In insurance services,  the approval of non -resident life insurers continue s to be  
restricted to subsidiaries incorporated under Australian law.  In banking and other financial services, 
Australia imposes restr ictions on deposit taking by branches of foreign banks and on the scope of 
operations of representative offices of foreign banks.  
3.2.8   Health and social related services  
3.19.   Australia  did not take any commitment s under the Agreement in health related and social 
services, for which  it reserv es the right to adopt or maintain any non-conforming measure affecting 
the provision of law enforcement and correctional services, as well as certain services, including 
social security or insurance, social welfare, health  and child care, to the extent that they are social 
services established or maintained for a public purpose.  Australia also listed a reservation for the 
activities , and senior management , of Commonwealth Serum L aboratories. Under the GATS, 
Australia took some commitments for certain human health services.  
3.2.9   Tourism and travel related services   
3.20.   Australia made full commitments in tourism and travel related services, which under the GATS 
are subject to limitations.  
3.2.10   Recreational, cultural and sporting services   
3.21.   In recreational, cultural and sporting services Australia expanded sectoral coverage , which 
under the GATS is limited to news agencies, sporting services and certain recreational services , and 
made commitments in  all subsectors but not without limitations. It reserves the right to adopt or 
maintain any measure with respect to gambling, betting, creative arts  (except for live 
performances)12, indigenous traditional cultural expressions and other cultural heritage activities.  
For live performances, such right covers only measure s with respect  to subsid ies or grants for 
investment in Australian cultural activity . According to the authorities, Australia made full 
commitments in l ibraries, archives, museums an d other cultural services . 
3.22.   All the other CPTPP parties, except for Canada and Japan have a similar reservation for 
gambling and betting.   
 
9 Australia makes some clarifications in relation to education services in the introductory notes to 
Annex  II. 
10 In a side letter Australia agrees to provide Viet Nam with technical assistance on distance and 
blended learning.  
11 Mode 1 is unbound due to lack of technical feasibility . 
12 The definition of creative arts comprises performing arts (including live theatre , dance and music); 
visual arts and craft; literature (other than works transmitted electronically); and hybrid art works, including 
those which use new technologies to transcend discrete art form divisions. In the case of live performances, 
the reservatio n does not extend beyond subsidies and grants for investment in Australian cultural activity, 
which is in line with the other reservation on live performances.   WT/REG395/1 /Add.1  • Australia  
 
- 14 - 
 
  3.2.11   Transport services   
3.23.   In transport services, Australia broadens its GATS commitments13 in all subsectors , except 
pipelin e transport services which are fully committed under both the Agreement and the GATS . It 
made full commitments in space transport services, and partial commitments in i nternal waterways  
and rail  transport services , all three unbound under the GATS. It also  expands its GATS commitments 
in maritime, air, road and services auxiliary to all modes of transport , while maintaining some 
reservations. In maritime services, it listed reservations for international liner cargo shipping 
services and ships. It also reserves the right to adopt or maintain any measure with respect to 
maritime cabotage services and offshore transport services. In air transport services, Australia 
places restrictions on the equity ownership of Australian international airlines (including Qantas), 
and reserves the right to adopt or maintain any measure with respect to investment in federal leased 
airports; and the provision of ground handling and airport operation services. I n services auxiliary 
to all modes of transport, Australia  requires customs brokers  to supply their services in and from 
Australia. Finally, it reserves the right to adopt or maintain any non -conforming measure with 
respect to cross -border trade and investme nt in services established or maintained for public 
purpose , including  public transportation . 
 
  
 
13 Under the GATS, Australia's commitments are limited to maritime, air, road, and pipeline tra nsport 
services and services auxiliary to all modes of transport.  WT/REG395/1 /Add.1  • Australia  
 
- 15 - 
 
 
  ANNEX 1 
1. Table A1.1 show s tariff liberalization by Australia under the CPTPP  by total, agricultural and 
industrial products. Th e share of duty -free tariff lines  applied on all products rose from 47.7% to 
93.3% upon the Agreement's  entry into force and the overall average applied tariff fell from 2.8% 
on an MFN basis to 0.2% for imports from the Parties . For agricultural goods, these  exporters faced 
an average tar iff rate of zero instead of the MFN average rate of 1 .1%, and 0.3% instead of 3.1% 
for industrial goods. The Parties thus benefitted from a relative margin of preference of 92.9% 
overall, 100% for agricultural products and 90.3% for industrial products . At the end of liberalization, 
the share of duty -free lines for imports from the Parties is expected to increase to 9 9.8% overall, 
100% in agricultural products and 99.8% for industrial products.  
Table A1. 1 Australia: Ind icators of MFN tariff rates and preferential rates for imports from 
the Parties  
Origin of 
goods  Year ALL PRODUCTS  HS Chapters 01 -24 HS Chapters 25 -97 
Average 
applied 
tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied 
tariff  
Share of 
duty-free 
tariff 
lines (%)  Average 
applied 
tariff  
Share of 
duty-free 
tariff lines 
(%) Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
MFN 2018 2.8 5.3 47.7 1.1 5.0 78.4 3.1 5.4 41.8 
CPTPP 
Parties 2018 0.2 3.6 93.3 0.0 5.0 99.9 0.3 3.6 92.1 
2019 0.2 3.0 93.3 0.0 5.0 99.9 0.2 3.0 92.1 
2020 0.1 4.6 96.6 0.0 5.0 99.9 0.2 4.6 96.0 
2021 0.0 0.0 99.8 0.0 0.0 100.0  0.0 0.0 99.8 
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO Secretariat estimates based on data provided by Australia . 
2. Table A1. 2 summarizes  the market access opportunities in Australia for other Parties' top 25 
exports during  2015-2017, and the year in which the corresponding tariff lines will become duty free  
under the Agreement . Some of the top 25 export s of Canada, Japan and Mexico (automotive) will 
remain at least partially dutiable in Australia – representing 4, 4 and 3 lines respectively (down from 
respectively 27, 52 and 40 dutiable lines on an MFN basis ). The top 25 exports of New Zealand, 
Singapore and Viet Nam will be fully liberalized  (down from 10, 18 and 19  dutiable lines on an MFN 
basis) , at the latest by 2021.  
Table A1. 2 Summary of market access opportunities in Australi a for CPTPP Parties' top 
25 exports to the world  
Parties' top 25 export 
products in 2015 -17 Access Conditions to Australia's import market  
Exporters  Share in 
global 
exports 
(%) MFN 2018  Duty-free lines under 
CPTPP  Remain 
dutiable  Average MFN 
applied rate 
(%) Duty-free 
lines  Dutiable 
lines  2018  2020  2021  
CAN 42.6 1.4 37 27 19 4  4 
JPN 32.1 2.4 38 52 39 8 1 4 
MEX 43.3 3.0 26 40 31 6  3 
NZL 52.6 0.6 24 10 10   - 
SGP 51.0 1.4 44 18 16  2 - 
VNM 46.5 2.6 23 19 13 1 5 - 
Note:  Based on the HS 2017 nomenclature, except for Mexico, Singapore and Viet Nam's market access 
conditions, for which the basis is HS 2012.  
Source:  WTO estimates based on data provided by CPTPP Parties and Comtrade database.  
 WT/REG395/1 /Add.1  • Australia  
 
- 16 - 
 
  3. Tables A1. 3(a) and A1. 3(b) show market access conditions for Australia's top 25 exports in 
the other  Parties'  markets, which accounted for 72% of its global exports in 2015 -2017. These 
products involved between 59 and 120 lines in the other Parties' tariffs ; prior to the Agreement's  
entry into force, they were all duty -free only in Singapore. Upon full implementation, a ll lines will 
become free in New Zealand (2022) and Viet Nam (2028), while Canada, Mexico  and Japan will 
maintain tariffs on respectively food preparations  (four tariff lines) , rape/colza seed and zinc  (two 
tariff lines)  and wheat and meslin,  bovine meat, barley and food preparations  (41 tariff lines). The 
2018 average MFN tariffs for these products were 44.5% in the case of Canada, 4.2% and 14.6% in 
the case of Mexico,  while the highest such rate in Japan was 38.5%.   
  WT/REG395/1/Add.1  • Australia  
 
- 17 - Table A1. 3(a) Australia: Market access opportunities under the CPTPP for its top 25 exports to the world  
Australia's 
top export 
products in 
2015 -2017  
Share in global exports (%)  Access conditions in CPTPP Parties' markets  
CAN JPN MEX 
MFN (2018)  Duty free 
under 
CPTPP  
Remain dutiable  MFN (2018)  
Duty free under CPTPP  
Remain dutiable  MFN (2018)  Duty free 
under 
CPTPP  
Remain dutiable  Average MFN rates  Number
of. tariff 
lines  
Average MFN rates Number 
of tariff 
lines  
Average MFN rates  Number 
of tariff 
lines  Duty -free 
Dutiable  
2018  
2023  
Duty -free 
Dutiable  
2018  
2023  
2025  
2028  
2033  
Duty -free 
Dutiable  
2018  
2022  
2027  
260111  20.5 0.0 1     0.0 1        0.0 1           
270112  16.7 0.0 1     0.0 5        0.0 1           
271111  7.5 0.0 1     0.0 1        0.0 1           
710813  6.1 0.0 1     0.0 2        0.0 1           
281820  2.4 0.0 1     0.0 1        0.0 2           
100199  2.0 76.5  1 1   10.0 1 5      5 7.5 1 1     1   
270900  2.0 0.0 1     0.0 2        0.0 4           
260300  1.8 0.0 1     0.0 1        0.0 1           
020230  1.7 26.5  1  1  38.5  4      4 25.0   1     1   
740311  1.1 0.0 1     1.5 1 2    2   0.0 1           
020130  1.1 26.5  1  1  38.5  4      4 20.0   1     1   
510111  1.1 0.0 1     0.0 1        0.0 2           
760110  1.0 0.0 1     0.0 1        0.0 2           
220421  0.7 0.0 11 2 2   15.0  2  1 1    20.0   4     4   
271019  0.7 1.0 4 1 1   2.2 9 22 22      0.3 10 1 1       
100390  0.7 57.8  2 2   0.0 1 3      3 0.0 2           
260800  0.6 0.0 1     0.0 1        0.0 1           
880330  0.6 0.0 1     0.0 1        0.0 3           
520100  0.6 0.0 1     0.0 1        0.0 1           
261690  0.6 0.0 1     0.0 1        0.0 1           
120510  0.6 0.0 1     0.0 1        14.6   13 12     1 
210690  0.5 44.5 6 12 3 5 4 22.2 1 41 5 8 1 2  25 10.0   1 1       
071320  0.5 0.0 1     4.3 1 1 1      0.0 1           
790111  0.5 0.0 1     0.0 1 2    2   4.2 73 36 16 1 18 1 
010229  0.4 0.0 1     0.0  2     2  5.0 2 1 1       
Total  72.0 9.3 39 20 9 7 4 5.3 35 88 28 9 2 6 2 41 4.3 111 59 31 1 25 2 
Note:  Based on the HS 201 7 nomenclature  except for Mexico market access conditions for which the basis is HS 2012.  
Source:  WTO estimates based on data provided by CPTPP Parties and Comtrade database.   
  WT/REG395/1/Add.1  • Australia  
 
- 18 - Table A1. 3(b) Australia: Market access opportunities under the CPTPP for its top 25 exports to the world  
AUS's 
top 
export 
products 
in 2015 -
2017  
Share in global exports 
(%) Access conditions in CPTPP  Pparties' markets  
NZL SGP VNM 
MFN (2018)  Duty free 
under 
CPTPP  
Remain dutiable  MFN (2018)  
Duty free CPTPP  
Remain dutiable  MFN (2018)  
Duty free under CPTPP  
Remain dutiable  Average MFN 
Rates  Number of  
tariff lines 
Average MFN rates  Number 
of tariff  
lines  
Average MFN Rates  Number 
of tariff 
lines  Duty -free 
Dutiable  
2018  
2022  
Duty -free 
Dutiable  
Duty -free 
Dutiable  
2019 
2020  
2021  
2022  
2023  
2025  
2028  
260111  20.5 0.0 1     0.0 1    0.0 1                  
270112  16.7 0.0 1     0.0 2    2.0   2 2              
271111  7.5 0.0 1     0.0 1    5.0   1           1    
710813  6.1 0.0 1     0.0 1    0.0 1                  
281820  2.4 0.0 1     0.0 1    2.0   1 1              
100199  2.0 0.0 1     0.0 3    5.0   3 3              
270900  2.0 0.0 1     0.0 3    1.0 2 1 1              
260300  1.8 0.0 1     0.0 1    0.0 1                  
020230  1.7 0.0 1     0.0 1    14.0   1   1            
740311  1.1 0.0 1     0.0 1    0.0 1                  
020130  1.1 0.0 1     0.0 1    14.0   1   1            
510111  1.1 0.0 1     0.0 1    0.0 1                  
760110  1.0 0.0 2     0.0 1    3.0   1 1              
220421  0.7 5.0  3 3   0.0 5    50.0   5             5  
271019  0.7 0.7 23 4 4   0.0 16    5.6   16             16  
100390  0.7 0.0 1     0.0 1    0.0 1                  
260800  0.6 0.0 1     0.0 1    0.0 1                  
880330  0.6 0.0 1     0.0 1    0.0 1                  
520100 0.6 0.0 1     0.0 1    0.0 1                  
261690  0.6 0.0 1     0.0 1    0.0 1                  
120510  0.6 0.0 1     0.0 1    5.0   1 1              
210690  0.5 2.0 13 9 8 1  0.0 26    16.1   26     4 7 15      
071320  0.5 0.0 2     0.0 2    7.5 1 1   1            
790111  0.5 0.0 1     0.0 1    0.0 1                  
010229  0.4 0.0 1     0.0 2    5.0   2 2              
Total  72.0  0.3 60 16 15 1 - 0.0 76 - - - 5.4 14 62 11 3 4 7 15 1 21 - 
Note:  Based on the HS 2017 nomenclature, except for  Singapore and Viet Nam's market access conditions, for which the basis is HS 2012.  
Source:  WTO estimates based on data provided by CPTPP Parties and Comtrade database.  
_________