WT/TPR/M/396/Add.1  
29 May 2020  
(20-3860) Page: 1/256 
Trade Policy Review Body  
11 and 13 March 2020  Original: English/anglais/inglés  
Spanish/espagnol/español  
 
 
  
TRADE POLICY REVIEW  
AUSTRALIA  
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Manuel A. J. Teehankee (Philippines)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Australia .1 
 
 
Organe d'examen des politiques commerciales  
11 et 13 mars 2020  
EXAMEN DES POLITIQUE S COMMERCIALES  
AUSTRALIE  
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Président : S.E.  M. Manuel A . J. Teehankee (Philippines)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  Australie .1 
 
 
Órgano de Examen de las Políticas Comerciales  
11 y 13 d e marzo de 2020  
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
AUSTRALIA  
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Manuel A. J. Teehankee (Filipinas)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  
Australia .1 
  
 
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/396/Add.1  
 
- 2 - 
 
  Contents  
 
Argentina  ................................ ................................ ................................ ........................  3 
Brazil  ................................ ................................ ................................ ..............................  5 
Canada  ................................ ................................ ................................ ............................  6 
Chile  ................................ ................................ ................................ ..............................  12 
China ................................ ................................ ................................ .............................  22 
China follow up questions  ................................ ................................ .............................  45 
Chinese Taipei  ................................ ................................ ................................ ...............  55 
Colombia  ................................ ................................ ................................ .......................  65 
Colombia follow up questions  ................................ ................................ .......................  73 
Costa Rica  ................................ ................................ ................................ .....................  77 
Dominican Republic  ................................ ................................ ................................ ...... 87 
European Union  ................................ ................................ ................................ ............  91 
European Union follow up questions  ................................ ................................ ...........  109  
Guatemala  ................................ ................................ ................................ ..................  110  
Hong Kong, China  ................................ ................................ ................................ ....... 112  
Iceland  ................................ ................................ ................................ ........................  114  
India  ................................ ................................ ................................ ...........................  116  
Indonesia  ................................ ................................ ................................ ....................  157  
Israel  ................................ ................................ ................................ ..........................  165  
Japan  ................................ ................................ ................................ ..........................  166  
Korea, Republic of  ................................ ................................ ................................ ....... 169  
Malaysia  ................................ ................................ ................................ ......................  173  
Mexico  ................................ ................................ ................................ ........................  178  
New Zealand  ................................ ................................ ................................ ...............  179  
Perú  ................................ ................................ ................................ ............................  181  
Russian Federation  ................................ ................................ ................................ ..... 183  
Singapore ................................ ................................ ................................ ....................  185  
Switzerland  ................................ ................................ ................................ .................  186  
Thailand  ................................ ................................ ................................ ......................  193  
Turkey ................................ ................................ ................................ .........................  201  
Ukraine  ................................ ................................ ................................ .......................  206  
Ukraine follow up questions  ................................ ................................ ........................  219  
United Kingdom  ................................ ................................ ................................ ..........  221  
United States  ................................ ................................ ................................ ..............  230  
United States follow up questions  ................................ ................................ ...............  243  
Philippines  ................................ ................................ ................................ ..................  245  
  WT/TPR/M/396/Add.1  
 
- 3 - 
 
  Argentina  
REPORT BY THE SECRETARIAT WT/TPR/S/396  
Question 1  
1. En el punto 3.165 del Informe de la Secretaría se destaca que Australia ha establecido diversas 
medidas encaminadas a impulsar la innovación y a ayudar a las empresas australianas, en 
particular a las PYMES y las empresas emergentes, a desarrollar y comercializar la propiedad 
intelectual. La Argentina agradecería poder contar con  mayores detalles sobre las medidas 
emprendidas por Australia en esta esfera a los fines de poder compartir buenas prácticas y 
lecciones aprendidas.  
 
RESPONSE: Australia offers assistance for research organisations to commercialise research 
outcomes throug h several initiatives including the Patent Analytics Hub, Source IP, the IP Toolkit 
for Collaboration (IP Toolkit) and the Entrepreneurs’ Programme – Accelerating 
Commercialisation.  
 
The Patent Analytics Hub supports research organisations by providing cu stomised reports on 
request with analysis, visualisation and interpretation of patent data to help research 
organisations make decisions on research direction, collaboration and commercialisation 
activities.  
 
Source IP is a digital marketplace for informat ion, contact facilitation and licensing preferences 
for patents generated by the public research sector in Australia. Research organisations can use 
Source IP to promote their inventions and technologies to potential business partners and 
indicate how thei r patents can be licenced. More information is available at : 
https://sourceip.ipaustralia.gov.au/about . 
 
The IP Toolkit provides tools and model IP contracts to facilitate collaboration between busi ness 
and public research organisations. More information is available at https://www.ipaustralia. 
gov.au/tools -resources/ip -toolkit . 
 
The Entrepreneurs’ Programme – Accelerating Commercialisation ( https://www.business.gov. 
au/Gr ants-and-Programs/Accelerating -Commercialisation ) provides expert guidance and 
connections to help businesses, entrepreneurs, start -ups, and researchers to commercialise 
their novel product, process or service. Accelerating Commercialisation offers matched  grants 
of up AU$1 million to assist in commercialisation of novel products, processes and services. A 
national network of 20 ‘Commercialisation Advisers’ provide expert guidance and connections 
to assist businesses to find the right commercialisation stra tegy for their novel product, process 
or service.  
 
Question 2  
2. Con relación al punto 4.6 del Informe de la Secretaría relativo a las importaciones de productos 
agrícolas, y teniendo en consideración que tanto Australia como la Argentina comparten la 
importancia de liberalizar el comercio de ese sector, mucho se apreci ará conocer qué medidas 
o políticas Australia planea adoptar en pos de promover el acceso de productos agrícolas a su 
mercado.  
 
RESPONSE: In addition to its efforts at the WTO to support the continual reform process 
enshrined under the Agreement on Agricul ture, Australia continues to push ahead with trade 
liberalisation on a unilateral, bilateral and plurilateral basis.  For example, through WTO -
consistent bilateral and plurilateral trade agreements and through unilateral enhancements of 
Australia's import and export regime that balances the interests of Australian industry, 
Australian consumers, and is consistent with Australia's international legal obligations.  
 
Question 3  
3. Bajo el mismo punto 4.6, en el párrafo 4.17, se menciona que el acceso a las tecnolo gías y 
prácticas más avanzadas son elementos esenciales de la política agrícola de Australia. Atento a 
la importancia que la Argentina asigna a la incorporación de tecnologías en el sector 
agropecuario, mucho se agradecerá conocer qué medidas ha implementa do Australia en pos de 
impulsar la innovación en el sector y con qué resultados (si ya estuvieran disponibles).  
 WT/TPR/M/396/Add.1  
 
- 4 - 
 
  RESPONSE: The 15 rural Research and Development Corporations (RDCs) are the main way in 
which industry and government co -invest in research and  development (R&D) for agricultural 
industries. The RDCs receive funds from levies imposed on commodities, at the request of the 
relevant industry. The RDCs invest the levy funds, along with matching government 
contributions, to commission R&D on behalf of  industry to improve productivity, profitability, 
competitiveness and long -term sustainability.  
 
In March 2019, the Government released a report in conjunction with Ernst and Young, 
Agricultural Innovation – A National Approach to Grow Australia’s Future 
(https://www.agriculture.gov.au/sites/default/files/sitecollectiondocuments/agriculture -
food/i nnovation/summary -report -agricultural -innovation.PDF ) which highlighted the power of 
innovation in making the agricultural sector more competitive and prosperous. The report 
identified a strong consensus on the need to improve the performance of Australia’ s agricultural 
innovation system. The report identified a need to shift the focus of public R&D investment 
towards transformational, cross -commodity and public good outcomes; scale up private 
investment to support extension, adoption and commercialisation;  and improve coordination 
and collaboration across the system.  
 
The Australian Government has developed priorities to target rural research, development and 
extension (RD&E) funding. The Rural RD&E Priorities are: Advanced technology; Biosecurity; 
Soil, wa ter and managing natural resources; and Adoption of R&D. The Rural RD&E Priorities 
were developed to enable issues of common concern to be explored in a coordinated and cost 
effective manner and to focus RD&E investment and guide activities undertaken by t he research 
sector, including the RDCs, to areas of greatest priority. A common understanding of these 
priorities aims to better position Australia’s agricultural, fisheries, forestry and food industries 
to embrace innovations and adopt new technologies.  
 
  WT/TPR/M/396/Add.1  
 
- 5 - 
 
  Brazil  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Page 13 (Para 3.3.4)  
 
WTO Disputes: Tobacco (DS434, DS435, DS441, DS458 and D467  
 
Question 1  
1. Would the Government of Australia please share opinions that Australian experts entertain on 
possible outcomes of these disputes for trademark law?  
 
RESPONSE: On 28 June 2018, the WTO Panel issued its final reports in the disputes brought 
against Australia by Honduras (DS435), the Dominican Republic (DS441), Cuba (DS458) and 
Indonesia (DS467) rega rding Australia’s tobacco plain packaging measures (the related dispute 
initiated by Ukraine (DS434) lapsed on 30 May 2016). Two complainants, Honduras and the 
Dominican Republic, have appealed the Panel reports (on 19 July 2018 and 23 August 2018 
respecti vely). Those appellate proceedings are ongoing and it would not be appropriate for 
Australia to speculate on the possible outcomes of those proceedings. The Panel reports in 
relation to the disputes initiated by Indonesia and Cuba were adopted by the WTO D ispute 
Settlement Body on 27 August 2018. In those proceedings, the Panel found that Australia was 
not in breach of its obligations in respect of all claims, including with regard to obligations to 
protect trade marks under the TRIPS Agreement. Australia h as not made any amendments to 
its domestic legal framework for the protections of trade marks as a result of the adopted Panel 
reports.  
 
  WT/TPR/M/396/Add.1  
 
- 6 - 
 
  Canada  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
III Trade Policies and Practices by Measures  
3.1.1. Custom s Procedures, Valuation and Requirements  
Page 48 (Para 3.35)  
 
The Secretariat report states that the provisions governing the Wine Equalisation tax (WET) rebate 
for domestic wine producers were tightened in 2017.  
 
Questions 1 -2 
1. Could Australia please confirm whether foreign wine producers, other than those from New 
Zealand, are eligible for the WET producer rebate?  
 
a) If it is not the case that foreign wine producers, other than those from New Zealand, are 
eligible for the WET pro ducer rebate, could Australia please explain the rationale for this, 
and how this aligns with MFN obligations?  
 
b) If it is the case that other foreign wine producers are eligible to apply for the WET 
producer rebate, could Australia please provide additiona l application information and 
documents that would be required for a foreign producer to apply for the rebate?  
 
RESPONSE: New Zealand winemakers can claim the wine producer rebate if they: produce the 
wine in New Zealand; register successfully with New Ze aland Inland Revenue; show that the 
wine is exported to Australia; and show that WET was paid on the sale of the wine. Australia 
has trade obligations to provide equal treatment to Australian and New Zealand winemakers.  
 
Wine producers that have sales connected to Australia and are eligible to register for GST, 
regardless of origin, are able to access the WET rebate through the GST system. There is no 
requirement for wine to be produced or manufactured in Australia, nor is there a requirement 
for wine to be produced or manufactured from Australian ingredients. Wine producers can claim 
the rebate if, among other things: at least 85 per cent of the total volume of wine originated 
from source product (e.g. grapes) they owned, and provided they maintai ned ownership 
throughout the winemaking process.  
 
2. We note that Australia responded to a question from the Russian Federation regarding this 
measure as part of Australia’s 2016 TPR (WT/TPR/M/312/Add.1 pgs 169 -170). Australia stated 
that “Alcohol taxation wi ll be considered in the context of Tax White Paper process.” Could 
Australia provide an update on the Tax White Paper process and its impact on the WET rebate 
for domestic and foreign?  
 
RESPONSE: The Tax White Paper reform process did not proceed to its co nclusion following a 
Government decision in 2015. Since then, opportunities to reform aspects of the tax system are 
considered as part of ongoing policy development.   
 
Recent changes to the WET rebate applying from 1 July 2018 include a rebate cap of AU$350,000 
(reduced from AU$500,000), and tightened eligibility criteria to access the rebate. Refer 
https://www.ato.gov.au/Business/Wine -equalisation -tax/. 
 
Wine producers that have sales connected to Australia and are eligible to register for GST, 
regardless of origin, are able to access the WET rebate through the GST system. There is no 
requirement for wine to be produced or manufactured in Australia, nor is there a requirement 
for wine to be produced or manufactured from Australian ingredients. Wine producers can claim 
the rebate if, among other things: at least 85 per cent of the total volume of wine o riginated 
from source product (e.g. grapes) they owned, and provided they maintained ownership 
throughout the winemaking process.  WT/TPR/M/396/Add.1  
 
- 7 - 
 
  3.1.7 Anti -dumping, countervailing, and safeguard measures  
Pages 56 -57 (Paras 3.51 -3.52)  
 
Upon request, the Anti -Dumping Revie w Panel (ADRP) may review certain decisions of the Minister 
or the Commissioner of the Anti -Dumping Commission.  The ADRP affirms or revokes the decision 
of the Commissioner or, for ministerial decisions, issue a recommendation that the Minister should 
affirm the challenged decision, set it aside, or replace it with a new decision.  
 
Questions 3 -4 
3. Could Australia explain whether the ADRP process replaces an appeal under the domestic court 
system?  
 
RESPONSE: The ADRP process is available in addition to appea ls through the domestic court 
system, and does not replace it.  
 
4. Are the ADRP decisions appealable and if so, before which authority?  
 
RESPONSE: ADRP decisions are appealable to the Federal Court of Australia.  
 
3.2.4 Export Support and Promotion  
Page 62 (Pa ra 3.65)  
 
The Export Market Development Grants (EMDG) scheme provides grants to help businesses conduct 
export promotion activities.  Under this program, an eligible recipient may receive up to eight grants 
of up to AUD 150,000. After two or more grants have been received, the applicants are either subject 
to an export performance test or "Australian Net Benefit" requirements.  
 
Question 5  
5. Could Australia provide more information on both its “export performance” and “Australian Net 
Benefit” tests, including the various elements that are considered and thresholds that have to 
be met in each?  
 
RESPONSE: For the first two years (of eight maximum) an eligible recipient’s grant is 
determined solely on the basis of promotional expenses incurred. Fr om the third year, applicants 
must choose to be assessed against one of the two performance measures (either the “export 
performance test” or “Australian Net Benefit Requirements” as detailed in this factsheet: 
https://www.austrade.gov.au/ArticleDocuments/1433/EMDG -Performance -Measure -Fact-
Sheet.pdf.aspx  
 
Regardless of which performance measure is used, the size of an applicant’s grant only increas es 
when promotional expenses increase.  
 
3.3.3 Sanitary and Phytosanitary Requirements  
Page 70 (Para 3.102)  
 
Canada notes that the main development in the area of sanitary and phytosanitary measures in 
Australia in the period under review was the entry into  force of the Biosecurity Act, 2015.  
 
Question 6  
6. Can Australia please provide information on its anticipated future sanitary and phytosanitary 
initiatives that will impact Canadian exports to Australia? Such as the adoption of or amendments 
to sanitary and  phytosanitary legislation and regulations and significant sanitary and 
phytosanitary policies.   
 
RESPONSE: Australia reviews all of its import policies periodically as deemed necessary, 
including if there is reason to believe that any relevant pest or ph ytosanitary status has changed. 
Under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS 
Agreement), any changes in proposed import policies will be made in accordance with Australia’s 
international obligations and will be not ified to WTO members.  
 
One review currently underway is for internationally traded seeds for sowing due to a number 
of incursions experienced in Australia and numerous emerging risks posed by traded seed. The WT/TPR/M/396/Add.1  
 
- 8 - 
 
  outcomes of this work may lead to changes in im port conditions for relevant commodities, 
including those from Canada.  
 
Australia is also collaborating with WTO members, under the auspices of the International Plant 
Protection Convention (IPPC) on work aimed at reducing the incidence of contaminating p ests 
associated with international movement, to protect plant health while facilitating trade. Once 
adopted by the Commission on Phytosanitary Measures (CPM), all contracting parties including 
Australia should work to implement the associated recommendatio n.  
 
Many invasive pests Australia is currently dealing with travel around the globe not on commodity 
pathways, but as contaminants of vessels, cargo and sea containers. Australia has strong 
controls to prevent the entry and establishment of pests, and Aus tralia works with international, 
national and domestic agencies and industry to implement measures pre -border, at the border 
and post -border.  
 
The IPPC Secretariat has been convening the sea container taskforce to address some of the 
concerns with international movement of containers. Australia (and Canada) has representation 
on this taskforce. When the outcomes of the sea container taskforce are released (expected 
2021), Australia will again work with contracting parties on mechanisms to implement the 
recommendations.  
 
Page 71 (Para 3.106)  
 
Canada notes that Australia's risk assessment method includes a risk estimation matrix that follows 
international principles consistent with World Organization for Animal Health (OIE) and International 
Plant Protection Convention risk management standards.   
 
Questions 7 -8 
7. In May 2017, the World Organization for Animal Health (OIE) approved an international standard 
for porcine reproductive and respiratory syndrome (PRRS) which states that when authorizing 
imports of pork meat and pork products, importing co untries should not require any PRRS -
related conditions regardless of the PRRS status of the exporting country, zone or compartment.  
Australia however maintains strict measures relating to PRRS which effectively limit the types of 
pork meat and pork produc ts which may be exported from Canada to Australia. These measures 
include requirements such as deboning of meat products, removal of major peripheral lymph 
nodes, and extensive documentation and handling requirements. Could Australia advise whether 
it plan s to take steps to align its import measures with the new May 2017 OIE standard?  
 
RESPONSE: Australia’s import requirements for the importation of pig meat and pig meat 
products for human consumption were developed following a WTO -consistent process. Austr alia 
has no plans to amend those import requirements for PRRS, which are based on the published 
2004 Generic import risk analysis (IRA) for pig meat. Australia’s import requirements are 
consistent with Section 2 of the current OIE Terrestrial Animal Health  Code (OIE Code). The OIE 
Code allows for the development and application of measures independent of its disease -specific 
advice where based on scientific risk analysis.  
 
Australia conducted a review of available new literature on PRRS in 2018 and determin ed that 
there was no new evidence to support a revision of the import requirements determined by the 
2004 pig meat IRA.  
 
Australia also notes that some of the requirements listed in the question – deboning, removal of 
lymph nodes - do not relate to PRRS an d are in place to mitigate the risk of other diseases of 
biosecurity concern.  
 
8. Canada’s position continues to be that Australia’s assessment process and requirements for 
approving beef from countries which have had cases of Bovine Spongiform Encephalopathy  
(BSE) are extremely onerous and go beyond the provisions of the World Organization for Animal 
Health (OIE)’s Terrestrial Animal Health Code, thus effectively discouraging interested exporting 
countries seeking approval for market access.  In this regard, Australia remains Canada’s only 
major trading partner to not allow access for Canadian beef despite Canada’s “controlled BSE 
country status” as per standards under the OIE. Could Australia advise whether it plans to revise 
its current process, to be less t rade restrictive, in alignment with OIE standards.  WT/TPR/M/396/Add.1  
 
- 9 - 
 
  RESPONSE: Australia has no plans to revise its current process. Australia’s BSE food safety 
policy for the import of beef or beef products is consistent with Australia’s rights and obligations 
under the Ag reement on the Application of Sanitary and Phytosanitary Measures (the SPS 
Agreement) where Australia has the right to set its own appropriate level of protection (ALOP) 
and to conduct risk assessments on products to determine whether measures need to be a pplied 
to achieve ALOP.  
 
Under Australia's BSE food safety policy, all countries that wish to export beef for human 
consumption to Australia, including those with OIE assigned BSE risk status of 'negligible', must 
apply to Food Standards Australia New Zea land (FSANZ) for a BSE food safety assessment.  
 
3.3.6 – Government Procurement  
Page 80 (Para 3.144)  
 
The Secretariat’s Report notes that “Under the 2019 CPRs, non -corporate Commonwealth entities 
have a target of procuring 35% of contracts by volume, with a value of up to AUD 20 million, from 
SMEs.”  
 
Question 9  
9. Could Australia clarify if this 35% procurem ent target applies only to Australian SMEs, or if it 
also applies equally to foreign SMEs that demonstrate a commitment to local or regional 
markets?  
 
RESPONSE: For the purposes of the Commonwealth Procurement Rules, an SME is defined as 
an Australian or N ew Zealand firm with fewer than 200 full -time equivalent employees.  
 
Page 81 (Para 3.147)  
 
The Secretariat’s Report notes that, regarding Commonwealth Procurement Rules (CPRs), “Division 
2 has enhanced rules for procurements that are at or above the releva nt thresholds (unless an 
exception applies). For non -corporate entities, excluding construction services, the procurement 
threshold is AUD 80,000.”  
 
Question 10  
10. Could Australia elaborate on what Division 2 enhanced procurement rules the non -corporate 
entities are exempt from when procuring below the AUD 80,000 threshold?  
 
RESPONSE: The 10 per cent target is long standing and can be found in the 2002 
Commonwealth Procurement Guidelines & Best Practice Guidance ( https://www.legislation. 
gov.au/D etails/F2019L00536 ). There is no intention to increase the SME targets outlined in the 
CPRs.  
 
Page 81 (Para 3.149)  
 
The Secretariat’s Report notes that “under the Australian Industry Participation (AIP) National 
Framework, successful tenderers for Commonwealth government procurements of AUD 20 million 
or more may be required to prepare and implement an AIP plan. This outlines how the successful 
tenderer will provide industry with full, fair and reasonable opportunity to participate in the project. 
AIP plans do not mandate the use of Australian industry, but rather aim to provide it with the 
opportunity to demonstrate its capabilities so it can be considered in purchasing decisions.”  
 
Questions 11 -12 
11. Could Australia clarify if an AIP plan is prepared and submitted before or after the successful 
tenderer is awarded a contract?  
 
RESPONSE: When an Australian Industry Participation (AIP) plan is required, the successful 
tenderer is required to submit its approved AIP plan before signing the contract or head 
agreement.  
 
Further information can be found on this website - https://www.industry.gov.au/regulati ons-
and-standards/australian -industry -participation/commonwealth -government -procurement . 
 WT/TPR/M/396/Add.1  
 
- 10 - 
 
  12. If an AIP plan is submitted before a contract is awarded, does the extent to which a tenderer 
commits to use Australian industry in its bid influence the award decisi on? 
 
RESPONSE: An AIP plan does not require the successful tenderer to commit to use Australian 
industry, but rather to provide Australian industry with the opportunity to demonstrate their 
capabilities so they can be considered in purchasing decisions.  
 
An AIP plan is only required from the successful tenderer and is therefore not considered during 
the tender evaluation process.  
 
Further information can be found on this website - https://www.industry.gov.au/regulations -
and-standards/australian -industry -participation/commonwealth -government -procurement . 
 
3.3.7 Intellectual Property Rights  
Page 88 (Paragraph 3.182)  
 
The Secretariat Report states that the wait period to file a challenge due to trade mark non -use has 
been reduced from five years to three years. The report notes that a reduced wait period is designed 
to better align with international standards a nd to help prevent cluttering of the trade mark register.  
 
Question 13  
13. Has Australia noticed an increase in non -use challenges since reducing the period from five years 
to three years before a new trademark registration can be challenged for non -use? 
 
RESP ONSE: The provisions governing the new period of three years only commenced on 24 
February 2019, so it is too early to gauge the impact of reducing the period.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
Page 14 (Para 3.4.4 – 3.42); Page 18 –19 (Para 3.8.2 – 3.82)  
3.4.4 Peru -Australia Free Trade Agreement (PAFTA)  
 
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 force. This 
Agreement will bolster economic relations between Australia and Peru, and Latin America more 
widely, and promote high quality standards and rules within the regio n.  
 
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 intellectual 
property rights.  
 
Questions 14 -15 
14. Can Australia provide more context in terms of the environment outcomes in the PAFTA? How 
do the environment obligations in the PAFTA relate to those in the CPTPP?  We would also 
appreciate more information as to why the environment outcomes in these two FTAs are so 
different, particularly since both parties are signatories to the CPTPP.  
 
RESPONSE: Australia and Peru launched bilateral F TA (PAFTA) negotiations in order to quickly 
harvest the benefits of the Trans -Pacific Partnership Agreement, which was not able to enter 
into force at that time. To illustrate the speed of the negotiations, the first round of PAFTA 
negotiations took place in July 2017, and the agreement was concluded in November of that 
year. In several chapters of the agreement, Australia and Peru made the decision to focus on 
those areas of key interest to both parties.  In the Environment chapter, this included trade and  
biological diversity, climate change, and the illegal trade in wild flora and fauna.  The CPTPP is 
a 11-party agreement, which reflects the interests of a wide range of parties and naturally looks 
different to a bilateral FTA negotiated between two of tho se parties.  WT/TPR/M/396/Add.1  
 
- 11 - 
 
  15. In terms of future FTAs, will Australia’s approach on environment be based on the PAFTA, or will 
it be more in line with the CPTPP?  
 
RESPONSE: Every FTA is different, reflecting the differences in parties to the negotiation and 
negotiating cont ext. Australia’s negotiating position is always informed by a range of factors, 
including the various preferences of negotiating parties and the overall balance of any negotiated 
package. Australia’s approach on future environment chapters will be guided b y those same 
factors.  
  WT/TPR/M/396/Add.1  
 
- 12 - 
 
  Chile  
WT/TPR/S/396 – Australia (WTO Secretar iat report)  
 
2 TRADE AND INVESTMENT REGIMES  
2.4 Investment Regime.  
Paragraph 2.33 (page 32)  
“The Government is also supporting growth, higher wages and jobs through the Ten Year Enterprise 
Tax Plan, involving gradual reductions in the corporate tax rate to a more competitive level 
internationally2. Several components, including a cut in the company tax rate for businesses with a 
turnover less than AUD 50 million (to 25% by 2026 -27), and an increase in the small business 
turnover threshold (from AUD 2 million to AUD 10 million per annum), have now been legislated. In 
addition, the Government extended an instant asset write -off clause (AUD 20,000) for a further 12 
months to 30 June 2 018 for businesses with an annual turnover of less than AUD 10 million. Further 
down the line, the Government intends to extend the corporate tax cut to all businesses, and it has 
introduced legislation to do so”3. 
 
Question 1  
1. In relation to paragraph 2.33 , which explains the Ten Year Enterprise Tax Plan, involving gradual 
reductions in the corporate tax rate for a more competitive level internationally, Chile would be 
thankful if Australia could further explain the application plan and effects on companies , and if 
there are any differences in treatment between local and international companies. In addition, 
Chile would be thankful if Australia could share if there are other different criteria besides 
businesses turnover to apply the different tax rates.  
 
RESPONSE: Under the Plan, tax rates for companies with annual turnover below AU$50 million 
are being reduced gradually, reaching 25 per cent in 2021 -22. The tax cut will apply to local and 
international companies in the same way. The only other qualification  criteria to qualify for the 
tax cut is that not more than 80 per cent of the company's income can come from passive 
sources like rent and interest.  
 
Paragraph 2.35 (page 32)  
“The foreign investment framework, and the factors that drive national interest concerns evolved 
over the review period. The framework is principally based on the Foreign Acquisitions and Takeovers 
Act, 1975, the Foreign Acquisitions and Takeovers Fees Imposition Act, 2015, and the Register of 
Foreign Ownership of Water or Ag ricultural Land Act, 2015. Australia encourages foreign investment 
that is not contrary to its national interest, and applies a screening process whereby foreign 
investment proposals are evaluated against the national interest criteria on a case -by-case ba sis. 
According to the authorities, this flexible approach is preferred to rigid laws that might otherwise 
prohibit valuable investments”4.  
 
Question 2  
2. As explained in paragraph 2.35 and following paragraphs, Australia encourages foreign 
investment that is  not contrary to its national interest and applies a screening process whereby 
foreign investment proposals are evaluated against the national interest criteria on a 
case-by-case basis. In this context, Chile would be thankful if Australia can highlight th e effects 
of the changes in the foreign investment regime, particularly regarding FDI attraction and 
possible changes in their indexes and ratings in investment climate.  
 
RESPONSE: The Australian Government welcomes foreign investment. Previous changes to 
Australia’s foreign investment framework have had no discernible impact on foreign investments 
inflows. For instance, following the introduction of fees in 2015, non -residential real estate 
investment increased from AU$131.1 billion in 2014 -15 to AU$175.4 billion in 2015 -16.  
 
 
 
2 2017 Growth Strategy - Australia . Viewed at: 
https://www.bundesfinanzministerium.de/Content/DE/Downloads/G20 -
Dokumente/Hamburg_Wachstu msstrategien/AUS -Growth -Strategy.pdf?__blob=publicationFile&v=4 . 
3 2017 Growth Strategy - Australia . Viewed at: 
https://www.bundesfinanzministerium.de/Content/DE/Downloads/G20 -
Dokumente/Hamburg_Wachstumsstrategien/AUS -Growth -Strategy.pdf?__blob=publicationFile&v=4 . 
4 FIRB. Viewed at: https://firb.gov.au/resources/policy -documents/ . WT/TPR/M/396/Add.1  
 
- 13 - 
 
  3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.7 Anti -dumping, countervailing, and safeguard measures  
Paragraph 3.51 (page 56)  
“Established in 2013, a six -member Anti -Dumping Review Panel (ADRP) may, upon request, review 
certain decisions of the Minister or the Commissioner of the Anti -Dumping Commission. The Customs 
Amendment (Anti -dumping Measures) Act (No. 1), 2015 revised the criteria for review applications 
and, inter alia, authorized the Minister to set a fee for the handling of such reviews. However, 
Parliament subsequently disallowed the legislative instrument prescribing the fee, and no fee has 
been charged for applications to the ADRP since 2 March 2016. The Customs Amendment (Anti -
Dumping Measures) Act, 2017 addressed attempts by exporters to have the rate of anti -dumping 
duty reduced by exporting low volumes of goods, or not exporting, in the period examined for the 
purpose of the review”5. 
 
Questions 3 -4 
3. Paragraph 3.51 states tha t the Anti -Dumping Review Panel (ADRP) may, upon request, review 
certain decisions of the Minister or the Commissioner of the Anti -Dumping Commission. In this 
context, Chile would appreciate if Australia could provide details regarding who can make such 
a request of review. In addition, Chile would be thankful if Australia could indicate which 
decisions of the Minister or the Commissioner of the Anti - Dumping Commission can be subject 
of this review.  
 
RESPONSE: (1) Who can make such a request for a review?  
A person who is an ‘interested party’ in relation to a reviewable decision may apply for review 
through the ADRP. An ‘interested’ party is defined in subsection 269ZX of the Customs Act 1901, 
and includes the applicant of the proceeding where a dec ision has been made, producers, 
importers and exporters of the affected product, and the governments of the exporter of the 
affected product.  
 
(2) Which decisions can be reviewed?  
Decisions subject to review are set out in legislation under section 269ZZA and 269ZZN of the 
Customs Act 1901 . Reviewable decisions of the Minister are decisions to publish (or decide not 
to publish) a dumping duty or countervailing duty notice, to alter a dumping duty or 
countervailing duty notice, to continue (or decide not to continue) the application of anti -
dumping measures. Reviewable decisions of the Commissioner include decisions to reject an 
application for measures, to terminate an investigation or anti -circumvention inquiry, to reject 
an application for duty assessment or to terminate the examination of an application for duty 
assessment.  
 
4. In Paragraph 3.51, it is stated that the Customs Amendment (Anti -Dumping Measures) Act, 
2017 addressed attempts by exporters to have the rate of anti -dumping duty reduced in certain 
circumstances (reducing exports or not exporting). In this context, Chile would appreciate if 
Australia could provide more details regarding what the Customs Amendment (Anti -Dumping 
Measures) Act, 2017 rules regarding these circumstances.  
 
RESPONSE: WTO docu ment G/ADP/N/1/AUS/2/Suppl.17, G/SCM/N/1/AUS/2/Suppl.15, 25 
January 2018 describes the legislative changes and operation of the Customs Amendment (Anti -
Dumping Measures) Act 2017  in relation to ‘Low Volume Exporters’. The amendments provide a 
range of meth ods to determine appropriate export prices where there are no exports, or a low 
volume of exports, during the period examined for a review of measures. It enables the Minister 
to consider alternative information to determine the export price and to establi sh an export price 
that is reasonably reflective of the export price that would have existed had the exporter made 
exports.  
 
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
Price surveillance  
Paragraph 3.134, (page 7 8) 
“The CCA provides for price surveillance. Three forms of price surveillance are available: price 
inquiries, directed to the ACCC by portfolio ministers to undertake a public inquiry; price notification, 
 
5 WTO document G/ADP/N/1/AUS/2/Suppl.17, G/SCM/N/1/AUS/2/Suppl.15, 25 January 2018.  WT/TPR/M/396/Add.1  
 
- 14 - 
 
  where the portfolio minister requires specific companies to notify the ACCC of a proposed price 
increase; and price monitoring, where the portfolio minister directs the ACCC to monitor the prices, 
costs, and profits of companies and government agencies relating to specific goods and services. 
Price surveillance may be conducted informally or formally. Under the formal system, penalties may 
be applied for non -compliance. The ACCC conducts formal price surveillance on aviation and airport 
services and facilities, fuel, electricity, telecommunicat ions, postal services, and container 
stevedoring”.  
 
Question 5  
5. According to Paragraph  3.134, there are the three forms of price surveillance. The paragraph 
also states that they may be conducted informally or formally.  In this context, Chile would 
appreci ate if Australia could explain if there are different legal basis for formal and informal price 
surveillance. Furthermore, Chile would appreciate if Australia could provide more details on how 
the sectors that are stated in the last sentence of the paragra ph - that are subject to formal 
price surveillance by the ACCC - were chosen.  
 
RESPONSE: Under section 95ZE in Part VIIA of the Australian Competition and Consumer Act 
2010 (CCA; the Act), the responsible Minister may give the Australian Competition and 
Consumer Commission (ACCC) a direction to monitor prices, costs and profits relating to the 
supply of goods or services by persons in a specified industry, and report on the monitoring at 
specified time or at specified intervals within a specified period. Th e ACCC may obtain relevant 
information via information gathering powers under section 95ZK of the Act. Prices surveillance 
may also be undertaken by the ACCC in the form of a price inquiry in relation to the supply of 
goods or services, or by way of a ‘pri ce notification’ for certain ‘declared’ goods or services, in 
accordance with provisions of the Act. In addition to particular directed price monitoring 
activities, the ACCC may obtain information from the public domain, commercial information 
service prov iders, or on a voluntary basis from market participants, to assist in undertaking 
analysis of a particular industry or market, consistent with the ACCC’s broader pro -competition 
roles.  
 
Under s. 95E of the CCA, the object of Part VIIA of the Act is to have  prices surveillance applied 
only in those markets where, in the view of the Minister, competitive pressures are not sufficient 
to achieve efficient prices and protect consumers. Sectors or markets that have been, or are 
currently, subject to ACCC monitori ng may include those where there is end -user concern about 
the level of competition for the supply of goods or services in a particular market, or a high level 
of consumer concern about prices. Particular industries may also be subject to industry -specific  
monitoring arrangements set out in other Parts of the CCA.  
 
3.3.7 Intellectual property rights.  
3.3.7.5.5 Geographical indications.  
Paragraph 3.199, (page 91)  
“In 2018, Australia commenced negotiations with the European Union regarding a proposed free 
trade agreement, the objectives of which include addressing the protection of GIs in a mutually 
acceptable way6. In the context of these negotiations, the Government established a public 
objections procedure concerning a list of terms proposed by the Europ ean Union for protection as 
GIs in Australia7, against a background of concern expressed by some industry sectors about the 
potential impact of increased GI protection”8. 
 
Question 6  
6. En relación con lo indicado en el párrafo 3.199,  Chile agradecería si Aus tralia pudiera compartir 
información sobre cuáles fueron las industrias que manifestaron preocupación por el impacto 
potencial de incrementar la protección de las indicaciones geográficas (IGs) en Australia. Por 
otro lado, Chile agradecería si Australia pu diese informar si existe algún estudio o informe oficial 
 
6 DFAT Australia -European Union Free Trade Agreement: Objectives . Viewed at: 
https://dfat.gov.au/trade/agreements/negotiations/aeufta/Pages/australia -european -union -fta-objectives.aspx . 
7 DFAT, List of EU FTA Geographical Indications. Viewed at: 
https://dfat.gov.au/trade/agreements/negotiation s/aeufta/public -objections -gis/pages/list -of-european -union -
geographic -indications -gis.aspx . 
8 Weekly Times, Government urged to resist EU plan to enforce geographic indications , Peter Hempill, 
19 February 2019. Viewed at: https://www.weeklytimesnow.com.au/agribusiness/dairy/government -urged -to-
resist -eu-plan-to-enforce -geographi c-indicators/news -story/ed4c39ad8e5a069ebd5e62380606f265 . WT/TPR/M/396/Add.1  
 
- 15 - 
 
  en el que se haya analizado el impacto potencial de incrementar la protección de las IGs en 
Australia.  
 
RESPONSE: The Australian Government has made no commitment to protect GIs in ongoing 
free trade  agreement (FTA) negotiations with the EU. The Government has, however, committed 
to engage with the EU on its GIs interests as part of the FTA negotiations.  In doing so, the 
Government agreed to publish the EU list of GIs for public objection.  The Gover nment has 
received objections and views from businesses, producers and other stakeholders across a range 
of sectors including dairy, wine, processed meats, beers and spirits. The Government will 
continue to consult closely with stakeholders on the issue of  GIs.  
 
There has been no official study by Government looking into the impact of increasing GI 
protection published in Australia.  
 
3.3.7.5.8 Copyright  
Paragraph 3.204, (page 92)  
“During the review period, the Government introduced key reforms to reduce online copyright 
infringement. The Copyright Amendment (Online Infringement) Act, 2015 (CAA 2015) amended the 
Copyright Act to enable copyright owners to apply to the Federal Court of Australia for a "blocking 
injunction" - an order requiring a Carr iage Service Provider (CSP) to block access to an online location 
outside Australia that has a primary purpose of infringing copyright or facilitating the infringement 
of copyright. The Copyright Amendment (Online Infringement) Act 2018 (CAA 2018) strength ened 
the blocking injunction provisions, extending them to websites which have the primary effect of 
infringing or facilitating the infringement of copyright, making injunctions available against search 
engine providers, introducing a rebuttable presumptio n that the online location is outside Australia, 
and providing a mechanism for copyright owners and CSPs to subsequently agree to block other 
related domains. These amendments respond to specific concerns raised by copyright owners, and 
address the difficu lties in taking direct enforcement action against entities operating outside 
Australia. Since the enactment of the CAA 2015, blocking injunctions have been granted on a number 
of occasions, including in relation to the "Pirate Bay" website”9. 
 
Question 7  
7. En el párrafo 3.204 se reportan modificaciones a la Copyright Act de Australia que tuvieron por 
objeto enfrentar las infracciones en línea a los derechos de autor y derechos conexos. Al 
respecto, Chile agradecería si Australia pudiera compartir mayor inform ación sobre el 
otorgamiento de una “blocking injunction”. En particular, Chile agradecería si Australia pudiera 
referirse a las siguientes consultas (i) si la Corte Federal de Australia es la que decide si un sitio 
web tiene por efecto principal infringir o facilitar la infracción de los derechos de autor o derechos 
conexos; (ii) El tiempo que transcurre aproximadamente o en promedio entre la solicitud y el 
otorgamiento de una “blocking injunction”, y; (iii) ¿Existe información sobre el impacto o 
resultado del otorgamiento de las “blocking injunction” en las infracciones en línea a los derechos 
de autor y derechos conexos, y en las operaciones de los prestadores de servicios de Internet?  
 
RESPONSE: (i) Under section 115A of the Copyright Act 1968 the Federal Court of Australia 
(Court) determines whether a website or online location has the primary purpose or primary 
effect of infringing, or facilitating the infringement of copyright.  
 
(ii) The length of court processes vary depending on the complexity of a case, the established 
common law precedents and the number of online locations that are being considered for the 
blocking order. Some cases have taken three months from the date the application was m ade 
by the copyright owner to the date of decision by the court, while others have taken longer.    
 
(iii) The Government reviewed the operation of its copyright website blocking scheme in 2018 
and made changes in the 2018 Copyright Amendment (Online Infringement) Act  to make the 
scheme more effective. Information about the review and submissions, includi ng industry 
analysis about the operation of the scheme, can be found at: 
https://www.communications.gov.au/have -your-say/review -copyright -online -infringement -
amendment . The Government measures levels of, and attitudes towards, copyright 
 
9 See Roadshow Films Pty Ltd v Telstra Corporation [2016] FCA 1503 (Pirate bay); Roadshow Films Pty 
Ltd v Telstra Corporation Limited [2017] FCA 965; Foxtel Management Pty Limited v TPS Internet Pty  Ltd 
[2017] FCA 1041; and Roadshow Films Limited v Telstra Corporation Limited [2018] FCA 582 .   WT/TPR/M/396/Add.1  
 
- 16 - 
 
  infringement, including the operation of the website blocking orders, in an annual survey, 
including the operation of the website blocking scheme, available at 
https://www.communications.gov.au/documents/consumer -survey -online -copyright -
infringement -2019. 
 
Paragraph 3.205, (pages 92 - 93) 
“The Copyright Amend ment (Disability Access and Other Measures) Act, 2017 improved access to 
copyright materials for libraries, archives and educational institutions, as well as persons with 
disabilities and those assisting them, implementing Australia's obligations under the  Marrakesh 
Treaty. In addition, the Copyright Amendment (Service Providers) Act, 2018 extended safe harbour 
defences in the Copyright Act to a broad range of service providers in the disability, educational and 
cultural sectors, limiting the remedies that are available against them for online copyright 
infringement provided certain criteria are met”10. 
 
Question 8  
8. En el párrafo 3.205 se reportan modificaciones a la Copyright Act  de Australia, que tuvieron por 
objeto extender el sistema de puerto seguro a los prestadores de servicios de Internet que 
operan en el ámbito de la cultura, de la educación y de las personas con discapacidad. Al 
respecto, Chile agradecería a Australia com partir información respecto a las siguientes 
consultas: (i) ¿Cuáles son los prestadores de servicios de Internet que operan en el ámbito de 
la cultura, de la educación y de las personas con discapacidad a las que se extendió el sistema 
de puerto seguro?; y  (ii) ¿Las razones de por las cuales el sistema de puerto seguro era 
insuficiente para proteger a los prestadores de servicios de Internet que operan en el ámbito de 
la cultura, de la educación y de las personas con discapacidad?  
 
RESPONSE: (i) Australia's  2018 extension of the safe harbour scheme covers: educational 
institutions, through their administering bodies, including universities, schools, technical 
colleges, training bodies and pre -schools; libraries that either make their collection available to 
the public or are Parliamentary libraries, through their administering bodies; archives, through 
their administering bodies, including the National Archives of Australia and specified state 
archives, galleries and museums; key cultural institutions, throug h their administering bodies, 
including specific archives and libraries that are not open to the public; and organisations 
assisting persons with a disability, which undertake online activities under the scheme (ie 
caching, hosting of third party material) . 
 
(ii) Australia's copyright safe harbour scheme was introduced in 2004, and application of the 
scheme was confined to carriage service providers defined under the Telecommunications Act 
1997 – telecommunications internet service providers. The Government  implemented the safe 
harbour scheme based on its understanding of online services at the time and what was deemed 
appropriate.  
 
3.3.7.7 Enforcement  
Paragraph 3.214, (page 94)  
“In Australia, IP right (IPR) holders may enforce their IPRs against infringers by civil action. IP 
matters are usually brought before the Federal Court of Australia, and may also be brought before 
the state and territory Supreme Courts. In its 2016 report, the PC noted that Australia's IP 
enforcement arrangements compare well interna tionally. However, it found that there is room for 
improvement in facilitating access to IP enforcement options for innovative and creative SMEs, which 
are particularly affected by the time and cost of entering into legal proceedings.211 On 1 July 2018, 
the Federal Circuit Court launched the Intellectual Property National Pilot Scheme, which aims to 
provide an efficient, low -cost forum for the enforcement of IPRs, particularly for SMEs11. 
 
Question 9  
9. En el párrafo 3.214 se reporta la puesta en marcha de un sistema piloto que facilita la 
observancia de los derechos de propiedad intelectual para las pequeñas y medianas empresas 
creativas o innovadoras llamado “Intellectual Property National Pilot Scheme”. Al respecto, Chile 
agradecería si Australia pudiera pud iese explicar a grandes rasgos (i) ¿En qué consiste el sistema 
piloto? y (ii) ¿Cuáles son sus resultados esperados?  
 
10 See Copyright Act Part III, Division 3.  
11 Federal Circuit Practice Note No. 1 of 2018 "Intellectual Property". Viewed at: 
http://www.federalcircuitcourt.gov.au/wps/wcm/connect/fccweb/gfl/intellectual -property/pd/ . WT/TPR/M/396/Add.1  
 
- 17 - 
 
  RESPONSE: The Federal Circuit Court of Australia (FCC) has jurisdiction to hear and determine 
civil disputes concerning copyright, designs, trade marks and plant breeder’s rights. The FCC 
also has associated jurisdiction for the tort of passing off or any analogous claim for false or 
misleading conduct under the Australian Consumer Law. Patent disputes fall within the 
jurisdiction of the Feder al Court of Australia (Federal Court).  
 
On 30 June 2017, the FCC commenced a pilot in its Melbourne registry to streamline the 
management of intellectual property (IP) matters. During the pilot:  
 
• Three judges were docketed to hear IP matters, with the aim of hearing matters within 
eight months of filing of the initiating application;  
• Judges took an active role in controlling proceedings, including conducting a case 
management conference in every IP proceeding, with the aim of bringing proceedings 
to trial in a manner proportionate to the nature of the dispute, the financial position of 
the parties, the degree of complexity of the case and the amount of money or issues in 
dispute;  
• Judges endeavoured to ensure that any matter proceeding to trial was confin ed to a 
maximum of two hearing days; and  
• Judges had the discretion to fix the maximum amount of costs and disbursements 
payable.  
 
From 1 July 2018, the pilot was extended to Sydney and other capital cities with all IP matters 
filed in the FCC docketed to a  single judge based in the Sydney registry. For matters filed in 
other registries, court appearances are managed by video and/or telephone link.  
 
Revised practice directions were also issued for all IP proceedings commencing in the FCC from 
1 July 2018. U nder these practice directions a first case management hearing will be allocated 
within three weeks of the filing of the application. For matters which proceed to trial, a decision 
will generally be delivered within one month of completion of the trial.  
 
With the deployment of the pilot scheme and practice directions the FCC aims to provide a 
simple, accessible and less expensive alternative to IP litigation, particularly for individual rights -
holders and small -to-medium enterprises. Since the launch of th e pilot, the number and diversity 
of filings in IP matters in the FCC has increased, and it is expected that this trend will continue, 
leading to further improvements to clearance rates for IP matters filed in the Federal Court.  
 
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.2 Communications  
4.4.2.1 Telecommunications  
Paragraph 4.131 (page 127)  
“In June 2018, 11 international submarine cables were connecting Australia to the rest of the world, 
across three protection zones, two located off the Sydney coast and one off the Perth coast. In 
addition, there were three domestic submarine cables. New submarine cable infrastructure 
investments were confirmed, with the Government awarding a contract to build an international 
submarine cable between Sydney, Por t Moresby in Papua New Guinea, and Honiara in the Solomon 
Islands. The project is expected to be completed in late 2019”.  
 
Question 10  
10. Paragraph 4.131 indicates that there are 11 international submarine cables connected to 
Australia by the year 2018. In th is regard, Chile would appreciate if Australia could specify the 
countries or continents were those cables are connected. In addition, Chile would greatly 
appreciate if Australia can share more information about the plans to expand the international 
submar ine cables network.  
 
RESPONSE: Information on current and proposed cables connected to Australia is available at 
https://www.submarinecablemap.com/ . For any further details on the current or planned cables , 
it is recommended that parties contact the cable owners.  
 WT/TPR/M/396/Add.1  
 
- 18 - 
 
  4.4.2.2 Television broadcasting and film production  
Paragraph 4.134 (page 127)  
“The Classification (Publications, Films and Computer Games) Act, 1995 is jurisdiction -neutral. The 
same fee to obtain a classification applies, regardless of the country of origin of a film, computer 
game or publication. The Act was amended in 2014 to all ow for the use of self -classification tools, 
which enable faster and lower cost classifications rather than having to submit content to the 
Australian Classification Board. The two classification tools approved to date for use in Australia, the 
Internation al Age Rating Coalition (IARC) Tool (in 2015) for online and mobile computer games and 
the Netflix Tool (in 2016) for online films and series streamlined by Netflix in Australia, allow for 
classified content to be made available in a timely and efficient m anner. During the 2018/19 financial 
year, the IARC Tool made over 317,000 decisions, and the Netflix Tool made over 1,900 decisions”.  
 
Question 11  
11. In paragraph 4.134 it says that the Classification Act applies to all film, computer game or 
publication, re gardless of their jurisdiction of origin. It also says that there is a special tool for 
one streaming service (Netflix). In this context, Chile would appreciate if Australia could further 
explain the Classification process. In addition, Chile would appreci ate if Australia could share if 
there is only a specific tool for Netflix or if there are specific tools for other streaming services.  
 
RESPONSE: The Classification Board (the Board) makes classification decisions about films, 
computer games and certain pu blications. The Board is independent from government.  The 
Classification Review Board (the Review Board) is an independent statutory body responsible for 
reviewing certain decisions of the Classification Board and is also independent of both the Board 
and government. When making decisions, the Board and the Review Board apply the 
Classification (Publications, Films and Computer Games) Act 1995  (the Act), the National 
Classification Code (the Code), and the Classification Guidelines for Films, Computer Game s and 
Publications (the Guidelines). The Classification Board and Review Board must include consumer 
advice when classifying material. Consumer advice helps people to make informed choices about 
what they read, view and play. It also provides information a bout the strongest content (content 
that may scare, upset or cause concern) in a film or computer game. Consumer advice usually 
includes references to the classifiable elements which are: themes, violence, sex, language, drug 
use and nudity. More informati on about the Australian Classification process is available at the 
https://www.classification.gov.au/ . 
 
Information relating specifically to legislation for Australian Classification can be found at 
https://www.classification.gov.au/about -us/legislation . 
 
The Classification (Publications, Films and Computer Games) Act 1995  was amended in 2015 to 
allow for the use of self -classification t ools. The two classification tools approved to date for use 
in Australia are the International Age Rating Coalition (IARC) Tool (in 2015) for online and mobile 
computer games and the Netflix Tool (in 2016) for online films and series streamlined by Netflix  
in Australia. The final report for the Netflix pilot program can be found at 
http://ims.dept.gov.au/Pages/default.aspx?uri=5222127&openUri=6072587 . In January 2018, 
the then Department of Communications and the Arts commenced a monitoring program which 
assessed decisions of the Tool. The final report for this monitoring program can be found at 
http://ims.dept.gov.au/Pages/default.aspx?uri=5222127&openUri=6072588 .  
 
To date, no other streaming services have sought the Minister’s approval for a classification tool.  
 
Paragraph 4.135 (page 127)  
“According to the authorities, in 2018, new restrictions related to gambling advertising during 
broadcasts of live sporting events came into effect. The ACMA negotiated with broadcast industry 
bodies to develop the new restrictions, which were included in updated broadcasting industry Codes 
of Practice. It also worked with the online streaming sector to prepare parallel rules for live streamed 
sporting events”.  
 
Question 12  
12. Paragraph 4.135 says that in 2018 new restrictions on gambling advertising during b roadcasts 
of live sporting events came into effect, including the online streaming sector. In this regard, 
Chile would appreciate if Australia can further explain this restriction . 
 WT/TPR/M/396/Add.1  
 
- 19 - 
 
  RESPONSE: In 2018, additional restrictions on showing gambling promotions during live online 
streams or live broadcasts of sporting events were introduced.  
 
The restrictions include prohibiting gambling promotional content from five minutes before the 
scheduled start of the sporting event until five minutes after play ends, betw een the hours of 5 
am and 8.30 pm (that is, during the hours when children are likely to be watching this content).  
 
The restrictions were applied to broadcasting services through amendments to existing co -
regulatory broadcasting industry codes of practic e negotiated between broadcasting industry 
groups and the Australian Communications and Media Authority (ACMA), in accordance with the 
framework established by the Broadcasting Services Act 1992  (Part 9). The restrictions were 
applied to online content ser vice providers via the (new) Broadcasting Services (Online Content 
Service Provider) Rules 2018, which were made and are administered by the ACMA. The ACMA 
is the independent Commonwealth statutory authority that regulates communications and media 
services  in Australia.  
 
Paragraph 4.137 (page 128)  
“The regulatory regime governing the screen industry includes Australian content quotas, and sub -
quotas for children's content, documentaries and Australian drama. These quotas apply to free -to-
air broadcasters and pay television, and ensure a minimum amou nt of Australian screen content is 
produced and broadcasted”.  
 
Question 13  
13. Paragraph 4.137 says that the regulatory regime governing the screen industry includes 
Australian content quotas and sub quotas for children’s content, documentaries and Australian 
Drama. In this context, Chile would appreciate if Australia could clarify the percentages of screen 
quotas for each type of content. In addition, Chile would also appreciate if Australia could indicate 
if those quotas are applied for streaming o r other online content (like video games or music).  
 
RESPONSE: Australian audio -visual/screen content quotas currently apply to commercial (free -
to-air) television broadcasting licensees and subscription television broadcasting licensees. No 
Australian con tent quotas currently apply to online platforms, however the Australian 
Government is considering the extent of Australian content obligations on free -to-air television 
broadcasters and whether there should be Australian content obligations on (online) sub scription 
video -on-demand services as part of its response to the Australian Competition and Consumer 
Commission's Digital Platforms Inquiry Final Report (Regulating in the digital age: Government 
Response and Implementation Roadmap for the Digital Platfor ms Inquiry). In particular, the 
Australian Government has announced that an options paper co -authored by Screen Australia 
and the Australian Communications and Media Authority (ACMA) will be released in early 2020 
that will look at how to best support Aust ralian stories in a modern, multi -platform environment.  
 
The below obligations are included in one of the following pieces of regulation: Broadcasting 
Services Act 1992 (BSA); Broadcasting Services (Australian Content) Standard 2016 (ACS); 
Children's Telev ision Standards 2009 (CTS).  
 
Commercial television broadcasting licensees - Transmission Quotas (section 121G of the BSA)  
 
• Overall Australian Programming – 55 per cent of all programming broadcast between 
6am and midnight on primary channels each year; 146 0 hours between 6am and 
midnight on multi -channels each year.  
 
Commercial television broadcasting licensees - Genre -specific sub -quotas (ACS or CTS)  
 
• First release adult drama - 250 points each year; 860 points each set triennial period.  
• First release docu mentaries - 20 hours each year.  
• Total Children’s (C) rated programming - 260 hours each year.  
• First release Australian C rated programming – 50 per cent of the total time occupied 
by C rated programming.  
• First release Australian C rated drama - 25 hours ea ch year; 96 hours each set 
triennial period.  
• Repeat Australian C rated drama - 8 hours each year.  
• Total Preschool Children’s (P) rated programming - 130 hours each year.  WT/TPR/M/396/Add.1  
 
- 20 - 
 
  • First release Australian P rated programming – 100 per cent of the total time occupied 
by P rated programming.  
 
Subscription television licensees and channel providers – Expenditure obligation  
(Part 7, Div 2A of the BSA)  
 
• Australian and New Zealand drama programming – 10 per cent of a channel provider’s 
total program expenditure mu st be on new eligible Australian and New Zealand drama 
programming.  
 
Additionally, the Broadcasting Services (Australian Content in Advertising) Standard 2018 sets 
a quota for broadcasts of Australian advertisements by commercial television broadcasting 
licensees and the co -regulatory Commercial Radio Code of Practice includes the Australian music 
quota obligations that apply to commercial radio broadcasting licensees.  
 
4.4.3 Transport  
4.4.3.1 Maritime transport  
Paragraph 4.149 (page 130)  
“The framework for maritime safety is established under the Navigation Act, 2012 and the Marine 
Safety Domestic Commercial Vessel National Law Act, 2012. The Government regulates the security 
of maritime transport through the Maritime Transport and Offshore Fac ilities Security Act, 2003 and 
the Maritime Transport and Offshore Facilities Security Regulations, 2003. In 2017, the Government 
introduced the Coastal Trading (Revitalising Australian Shipping) Amendment Bill, 2017. According 
to the authorities, the Bill  aims at creating a simpler and more flexible coastal shipping industry that 
carries an increased share of freight”.  
 
Question 14  
14. Paragraph 4.149 says that regarding the framework for maritime safety, in 2017 de Government 
introduced the Coastal Trading A mendment Bill. In this regard, Chile would be thankful if 
Australia could give more information about this revitalising shipping programme and the value 
of exports by the sea that the measure has led to.  
 
RESPONSE: The Coastal Trading (Revitalising Austral ian Shipping) Amendment Bill 2017 (the 
Amendment Bill) is no longer current. The Amendment Bill was available for debate in the Senate 
in April 2019 when Parliament was prorogued. It has not been reintroduced. Consultation is 
currently being undertaken wit h stakeholders on options for coastal trading reform. The 
outcomes of this consultation will be provided to the Australian Government for consideration.  
 
4.2 Mining and Energy  
4.2.2 Energy  
Regulation and policy  
Paragraph 4.149 (page 130)  
“In April 2015, th e Government detailed its energy strategy in the Energy White Paper (EWP). The 
Government's vision for the energy sector is focused on greater competition in energy markets, to 
improve consumer choice and to put downward pressure on prices; to use energy m ore productively 
to lower costs with a view to improving energy use and stimulate economic growth; and to encourage 
investment in innovation and energy resources development and to allow jobs and exports to grow. 
Following up on the EWP, the Government ins tituted the National Energy Productivity Plan 2015 -30, 
which targets a 40% improvement in energy productivity by 2030.29 Additionally, under the Paris 
Agreement, Australia increased its international climate change ambitions, and aims to reduce 
greenhouse gas emissions by 26%, to 28% below 2005 levels, by 2030. However, the EWP does not 
incorporate the Government's climate change pledge”.  
 
Questions 15 -19 
15. El párrafo 4.149 hace mención a la estrategia de energía descrita en el “Energy White Paper” 
(EWP). Al respecto , Chile agradecería a Australia comentar si dispone – o en caso contrario si 
planea diseñar - políticas, estrategia, acciones y/o metas para fome ntar la producción y 
comercialización de hidrógeno.  
 
RESPONSE: The Council of Australian Governments' Energy Council endorsed Australia's 
National Hydrogen Strategy in November 2019. The Strategy outlines an adaptive approach to WT/TPR/M/396/Add.1  
 
- 21 - 
 
  developing the hydrogen ind ustry in Australia, focussed on building scale, fostering international 
co-operation, and making targeted use of hydrogen in the Australian economy.  
 
16. En el mismo contexto del EWP, Chile agradecería a Australia indicar si planea - o ha 
implementado - algún procedimiento para certificar la huella de carbono y/o huella hídrica del 
hidrógeno importado y/o exportado por Australia. En caso afirmativo, Chile agradecería si 
Australia pudiera compartir mayor información al respecto.  
 
RESPONSE: Australia seeks to pla y a leading role in the design and development of an 
international certification scheme for hydrogen. Any domestic scheme would be designed to 
harmonise with an international scheme where practical. The Australian Government's position 
is that a certificat ion scheme should be designed to verify and track (a) production technology; 
(b) scope 1 and scope 2 carbon emissions associated with production; and (3) production 
location. The Australian Government considers that a scheme could be expanded at a later da te 
to verify and track water consumption.  
 
17. También en relación al EWP, Chile agradecería a Australia si pudiera referirse a las siguientes 
preguntas: a) ¿Planea o ha implementado herramientas de apoyo para el desarrollo de la 
industria del Hidrógeno en el país?; b) ¿Planea o ha desarrollado regulación en materia de 
seguridad para la producción de hidrógeno? En caso de ser ambas respuestas afirmativas, Chile 
agradecería si Australia pudiera compartir mayor información al respect o. 
 
RESPONSE: (a) The Australi an Government has already provided over AU$148 million is support 
for hydrogen projects, and has made available an additional AU$370 million in grant funding and 
concessional finance for hydrogen projects. The National Hydrogen Strategy outlines a preferre d 
approach to building production scale through "hydrogen hubs", using hydrogen in natural gas 
networks, and taking initial steps towards using hydrogen for transport. (b) Australia has 
regulations and standards in place for use of hydrogen in industrial s ettings. Through Standards 
Australia, Australia will consider whether and when to adopt international standards for other 
uses of hydrogen or develop new ones.  
 
18. Adicionalmente, Chile agradecería a Australia indicar si existe - o se planea que exista - una 
diferenciación regulatoria entre hidrógeno “gris”, “azul” y “verde” en la producción y consumo 
de este bien en Australia. En caso de una respuesta afirmativa, Chile agradecería si Australia 
pudiera compartir mayor información al respecto.  
 
RESPONSE: As not ed in the answer to question 16, the Australian Government's policy is to 
develop and advocate for a certification scheme that tracks and verifies production technology, 
location, and scope 1 and scope 2 emissions in an internationally consistent way. This  would 
allow countries to set their own definitions of "green" or "blue" hydrogen with reference to 
internationally agreed standards. Similarly, it would allow domestic consumers to make their 
own decisions.  
 
19. Por otro lado, Chile agradecería a Australia si pudiera compartir mayor información acerca de 
los esfuerzos (bilaterales, regionales o multilaterales) que planea desarrollar o ha desarrollado 
para fomentar: a) el comercio de hidrógeno, y, b) el compromiso y la confianza pública respecto 
a la industria del hidrógeno.  
 
RESPONSE: Through our international engagement, under the National Hydrogen Strategy 
Australia will work with other countries to develop a scheme to track and certify the origins of 
internationally traded clean hydrogen. We will  work constructively to shape international 
markets and open new frontiers for trade.  
  WT/TPR/M/396/Add.1  
 
- 22 - 
 
  China  
PART I:  QUESTIONS R EGARDING THE SECRETARIAT REPORT  
 
Page 8 ，Para 4  
Proposed investments (above certain thresholds) are screened on a case -by-case basis by the 
Foreign Investments Review Board to ensure that the investments are consistent with domestic 
requirements and in the national interest. Applications are rarely turned down, as most national 
interest concerns are addressed through appropriate mitigation mea sures.  
 
Question 1  
1. According to the Chinese enterprises, their investments in Australia have faced increasingly 
stringent screening over the past three years . Problems exist in terms of the  predictability, non -
discrimination and transparency of Australia’s  foreign investment approval regime. First, the 
Australian government’s definitions of national interests and national security are vague without  
a clear standard. The Australian government only indicate s “a violation of national interests or 
national secu rity” without specifying  reasons  when turning down  an investment proposal. In May 
2018, the Australian government substantially banned the Chinese companies Huawei and ZTE 
from participating in the construction of its domestic 5G network infrastructure on the grounds 
of national security but failed to provide evidence of security risks posed by the Chinese 
enterprises. Second, there ha s been discrimination against investments by the Chinese state -
owned enterprises. In 2019, Pinggao Group  and Shanghai Mechan ical and Electrical Design and 
Research Institute  applied for conducting the EPC projects of photovoltaic power stations in 
Australia, but were both rejected during the initial review . Third, the transparency of information 
needs to be improved. The FIRB d oes not provide detailed data and case names of the Chinese 
projects that have been rejected (including those rejected in the initial  review ). Please explain 
and elaborate on  what measures will be taken to ensure the openness, fairness and transparency 
of Australia’s investment environment.  
 
RESPONSE: The Australian Government welcomes foreign investment. Australia’s foreign 
investment framework is open and transparent. Rules on which applications require screening 
are clearly defined in publicly available legislation and guidance notes. Where screening is 
required, it is done on a case -by-case basis.  
 
Many countries prohibit foreign ownership in important sectors or ensure the se assets remain 
under the government’s control. By contrast, in Australia many equivalent assets are in private 
hands, including critical infrastructure, media and telecommunications companies. Foreign 
investment proposals in these sectors are screened to  ensure they are not contrary to the 
national interest.  
 
The Government considers, amongst other factors, the extent to which investments affect 
Australia’s ability to protect its national security. The Government relies on advice from the 
relevant nationa l security agencies for assessments as to whether an investment raises national 
security issues.  
 
Due to strict commercial -in-confidence requirements, the Australian Government cannot 
comment on how the foreign investment screening arrangements apply to pa rticular cases.  
 
Page 10 ，Para 18  
Following ratification of Australia's accession to the WTO Agreement on Government Procurement, 
the Agreement entered into force for Australia on 5 May 2019. Australia's FTAs also provide non -
discrimination clauses, and set  goals to eliminate preferential treatment and ensure transparency in 
tendering processes. The combined value of the contracts published through the Government's 
procurement information system, AusTender, amounted to AUD 71.1 billion in 2017/18. Overall, 
95% of the contracts (by volume) were awarded to businesses with an Australian address, including 
overseas suppliers operating within Australia.  
 
Questions 2 -3 
2. Since the entry into force of the WTO Agreement on Government Procurement for Australia, 
what is the combined value and volume of the contracts published through AusTender, the 
Government’s procurement information system? By volume, what is the volume and the WT/TPR/M/396/Add.1  
 
- 23 - 
 
  percentage of contracts awarded to the Australian enterprises? By combined value, what is the 
combined value and the percentage of contracts awarded to the Australian enterprises?  
 
RESPONSE: Following Australia’s accession to the WTO Agreement on Gover nment Procurement 
(GPA), procuring entities have published 9,174 relevant procurement contracts on AusTender 
worth AU$22.7 billion (for the period 5 May 2019 through to 31 December 2019, based on 
AusTender data as at 20 February 2020).  
 
8,957 of these cont racts (97.6 per cent by volume) and AU$21.5 billion of these contracts (94.7 
per cent by value) were awarded to businesses with an Australian address, including overseas 
suppliers operating within Australia.  
 
3. According to the WTO Agreement on Government Pr ocurement, WTO members should open their 
procurement markets in a mutually beneficial manner to the extent they agree to. Please 
elaborate on the measures taken by Australia and their implementation.  
 
RESPONSE: The Australian Government’s procurement frame work is non -discriminatory, and 
incorporates relevant international obligations. In April 2019, amendments were made to the 
Commonwealth Procurement Rules to ensure compliance with supplier complaint obligations in 
international agreements, including the W TO GPA.  
 
Page 11 ，Para 20  
Agriculture makes a significant contribution to the economy, and represents around 14% of total 
merchandise exports. Support to the sector is limited, as Australia does not provide market price 
support. Current programmes target r isk management, environmental conservation, and the 
provision of general services. Resource constraints, in particular access to water, remain a major 
challenge. Among many assistance measures taken recently in response to severe drought 
conditions, the Fu ture Drought Fund (an initial credit of AUD 3.9 billion) is intended to provide a 
secure and continuous revenue stream for drought -related measures. The Government signed a new 
agreement with state and territory governments in December 2018 to form a joint  approach on 
drought preparedness, response and recovery, with measures across all jurisdictions, to strengthen 
risk management practices and enhance long -term preparedness and resilience.  
 
Question 4  
4. The Chinese enterprises investing in Australia are not eligible for certain subsidies such as 
disasters assistance. In addition, the Australian government should increase the transparency 
in the use of the Future Drought Fund (an initial credit of AUD 3.9 billion).  
 
RESPONSE: The new drought funding has been established under legislation and is being 
implemented under a transparent and consultative process. Under the Future Drought Fund Act 
2019, a Drought Resilience Funding Plan (Funding Plan) must be developed. A draft of the  
Funding Plan was released for a six -week public consultation period commencing in late October 
2019. Through this period the draft Funding Plan attracted 243 submissions and survey 
responses. Over 450 stakeholders attended 73 roundtable and public consult ation sessions 
hosted by the Consultative Committee at 23 locations around Australia. Feedback received 
throughout these consultations informed the advice provided by the Consultative Committee to 
the Minister for Drought on the Funding Plan. The Funding P lan has been determined and was 
tabled in the Australian Parliament in February 2020. It is available on the Department of 
Agriculture, Water and Environment website. All Future Drought Fund programs and spending 
decisions must be consistent with the Fundi ng Plan.  
 
Page 15 ，Para 1.5  
In response to the weak expansion in the economy, the authorities took a number of measures to 
stimulate demand and economic activity, with monetary policy, in particular, targeted at boosting 
broad economic activity. On the mone tary policy side, the RBA lowered its cash rate to 0.75%, its 
lowest ever level (Section 1.2.2). In contrast, over the review period, public consumption spending 
increased, namely in the form of increased infrastructure investment, which should also help r aise 
productivity. Other measures undertaken include lowered tax rates and increased spending on R&D 
(Section 1.2.3).  
 WT/TPR/M/396/Add.1  
 
- 24 - 
 
  Question 5  
5. Will low interest rates affect Australia’s overall economic and trade environment? Please provide 
specific examples.  
 
RESPONSE: With Australia having recently experienced subdued household consumption 
growth and relatively weak new business investment, the recent interest rate cuts are designed 
to lift the rate of growth in both of these sectors and help support the econo my back towards 
full employment.  
 
Lower interest rates typically encourage additional household consumption by lowering deposit 
rates on savings. Lower interest rates also encourage households to increase their borrowing, 
and often supports higher demand for housing – stimulating activity in housing construction and 
household consumption.  
  
Lower interest rates reduce the cost of borrowing for businesses and can encourage businesses 
to invest in capital projects. Lower interest rates can also cause the exc hange rate to fall, leading 
to an increase in demand for trade -exposed businesses. A lower exchange rate also encourages 
households to spend more domestically.  
 
Page 27 ，Para 2.1  
Australia's constitutional and institutional framework remains unchanged since  its previous Trade 
Policy Review in 2015. The main focus of the Government has continued to be the development of 
an enabling environment with less burdensome regulations for citizens and businesses, reforms to 
cut government expenditure, achieving a budg et surplus, and the provision of efficient and effective 
government services.  
 
Question 6  
6. Please specify Australia’s measures, within the review period, related to optimize the domestic 
business environment.  
 
RESPONSE: Australia is committed to driving improvements in the design, administration and 
effectiveness of regulations to ensure they are fit for purpose. The Australian Government 
undertakes a wide range of consultations to understand better how domestic regulation affect 
businesses. In Ju ly 2019, Australia established a new Deregulation Taskforce tasked to revitalise 
Australia’s regulatory reform and deregulation agenda. The Deregulation Taskforce will develop 
solutions to lower the costs and burden of regulation while retaining the benefi ts, making it 
easier for business to invest, create jobs and contribute to growing the economy.  
 
In relation to taxation, the Government has also supported businesses by reducing taxes. Tax 
rates for small and medium companies have been reduced and small b usinesses are eligible for 
favourable depreciation rules.  
 
Page 31 ，Para 2.21  
According to the authorities, regarding the screening of Chinese investments by Australia's Foreign 
Investment Review Board (FIRB), a threshold of AUD 1,154 million applies to pri vate 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). The FIRB will 
continue to screen all investment by Chinese s tate-owned enterprises, regardless of value. The 
Agreement provides for the inclusion of an Investor State Dispute Settlement mechanism to promote 
investor confidence.  
 
Questions 7 -9 
7. What are the specific policy basis and review standards for investment re views related to the 
Chinese investors? What do these reviews usually involve and in what procedures are the reviews 
conducted? What public documents are available for reference?  
 
RESPONSE: The Australian Government welcomes foreign investment. Foreign investment 
applications are considered on a case -by-case basis and assessed against the national interest, 
regardless of the nationality of the investor. All applications from foreign government investors 
(FGI) are screened, regardless of the value  of the investment and regardless of the nationality 
of the FGI.  
 WT/TPR/M/396/Add.1  
 
- 25 - 
 
  Australia’s foreign investment framework is open and transparent. It is clearly defined in 
legislation:  
 
• Foreign Acquisitions and Takeovers Act 1975 (Cth) [Link to 
https://www.legislation.gov.au/Series/C2004A01402 ] 
• Foreign Acquisitions and Takeovers Regulation 2015 [Link to 
https://www.legislation.gov.au/Details/F2019C00072 ] 
• Foreign Acquisitions and Takeovers Fees Imposition Regulation 2015 [Link to 
https://www.legislation.gov.au/Details/F2017C00518 ] 
 
For more information on Australia’s foreign investment framework, please see the policy 
documents available on the Foreign Investment Review Board (FIRB) website: 
https://firb.gov.au/guidance -resources/policy -documents .  
 
The FIRB publishes an annual report that outlines foreign investment trends and pertinent policy 
issues currently under consideration: https://firb.gov.au/about -firb/publications . 
 
8. Does the investment review threshold of AUD 266 million apply to sensitive sectors identified in 
the document? What policies, standards and procedures will be taken in such reviews? In 
addition to the national defense, media, and telecommunications sectors, which other sectors 
are considered sensitive to the investment review against China?  
 
RESPONSE: Australia’s foreign investment review framework is open and transparent. Al l 
thresholds are clearly defined in legislation.  
 
Section 22 of the Foreign Acquisitions and Takeovers Regulation 2015 outlines businesses which 
are sensitive businesses and are therefore subject to a AU$275 million screening threshold. 
These include:  
• media;  
• telecommunications;  
• transport;  
• defence and military related industries and activities;  
• encryption and securities technologies and communications systems; and  
• the extraction of uranium or plutonium; or the operation of nuclear facilities.  
A lower threshold (AU$60 million) also applies to certain foreign investment in land. This includes 
mines and critical infrastructure.  
 
Foreign investment applications are co nsidered on a case -by-case basis and assessed against 
the national interest, regardless of the nationality of the investor.  
 
9. What kind of review standards and procedures does Australia adopt for the Chinese state -owned 
enterprises? What do such reviews usu ally cover?  
 
RESPONSE: The Foreign Acquisitions and Takeovers Act 1975  applies to certain actions by 
foreign persons, which include foreign governments. There are different rules in the legislation 
for investments by a foreign government investor compared with private investors. Additional 
requirements for foreign government  investors apply regardless of the foreign government.  
 
In considering whether particular investments are contrary to the national interest, the 
Government will consider factors including: national security; competition; other Australian 
Government policie s such as taxation; the impact on the economy and the community; and the 
character of the investor. Where a proposal involves a foreign government investor, the 
Government also considers whether the investment is commercial in nature or if the investor 
may be pursuing broader political or strategic objectives that may be contrary to Australia’s 
national interest.  
 
Page 101 ，Para 4.8  
Agricultural imports are subject to strict sanitary and phytosanitary (SPS) measures, including 
quarantine measures, to preserv e Australia's favourable status with regard to pests and diseases. 
The SPS arrangements in force imply that agricultural products from certain regions across the globe 
are subject to import restrictions.  
 WT/TPR/M/396/Add.1  
 
- 26 - 
 
  Question 10  
10. Chinese apples, pears, peaches, plums, apricots, etc. have been allowed to export to Australia. 
However, due to the more stringent SPS inspection and quarantine measures taken by Australia, 
some Chinese enterprises have reported difficulties in the export of these products. With limited 
export volumes and the resulted high prices in the Australian market, these products are not 
competitive at all. In addition, China’s raw shrimp and salmon exports also face inspection and 
quarantine barriers in Australia. Please respond to the above claims . 
 
RESPONSE: SPS measures required by Australia for importation of apples, pears, peaches, 
plums and apricots from China are based on risk analyses conducted by Australia, consistent 
with WTO SPS and International Plant Protection Convention obligations (the ris k analyses are 
available at https://www.agriculture.gov.au/biosecurity/risk -analysis/plant ). Australia consulted 
with China throughout the risk analysis process and sought comme nt on a draft risk analysis 
containing draft SPS measures prior to finalising import requirements. The decision to import is 
a commercial decision between an importer in Australia and a supplier in the exporting country 
who can meet Australia’s import cond itions. Australia’s import requirements for uncooked 
prawns are based on a risk assessment, the Generic import risk analysis report for prawns and 
prawn products 2009 (Prawn IRA 2009), which follows protocols set out by the World 
Organisation for Animal He alth. The Prawn IRA 2009 concluded that imported uncooked prawns 
do not meet Australia’s appropriate level of protection and that biosecurity measures be put in 
place to manage risks associated with prawn diseases of concern. Australia implemented 
enhanced  import conditions for uncooked prawns in June 2017 in response to high levels of white 
spot positive prawns found in Australian supermarkets. These conditions will remain in place 
while the review of the biosecurity risks of prawns imported for human cons umption is underway. 
For more information see: https://www.agriculture.gov.au/biosecurity/risk -analysis/animal/ 
prawns -products -human -consumption . 
 
To maintain Australia's favourable fish health status, salmonid product is only permitted entry 
to Australia from approved countries under conditions speci fied to manage the biosecurity risks 
potentially associated with this trade. These conditions were introduced following completion of 
an import risk analysis (IRA) – the Import Risk Analysis on non -viable salmonids and non -
salmonid marine finfish – in July  1999. As an importing country, Australia has a responsibility to 
evaluate an exporting country's competent authority (CA) for its capacity to regulate and deliver 
the controls required to support the safe trade in aquatic animal commodities with Australia . 
Australia has not completed a CA evaluation of China's regulatory body for trade in salmon 
products and trade in salmon products with China has therefore not commenced.  
 
Page 112 ，Para 4.50  
On 1 December 2015, new foreign investment laws came into force. The new regime features, inter 
alia, stronger compliance and enforcement provisions, and higher screening thresholds for certain 
types of investment. Significant changes relevant to the mining and energy sector include an 
increase, from 15% to 20%, of what  constitutes a substantial interest. In the case of investment in 
sensitive businesses, the AUD 266 million threshold for screening is also applicable to FTA partners.  
 
Question 11  
11. Please indicate whether “higher screening thresholds for certain types of investment” in the new 
foreign investment law are only targeted at the “sensitive sectors” mentioned below. As mining 
is not listed as a sensitive sector in the report, please elaborate on the screening thresholds and 
related screening measures targeted at  investments in mining.  
 
RESPONSE: Australia’s foreign investment framework is open and transparent.  Different 
screening thresholds apply for different types of investments. Some of Australia's free trade 
agreement (FTA) partners are also eligible for high er thresholds in some sectors, while all 
investments from foreign government investors are screened, regardless of value.  
 
Detailed guidance on the thresholds that apply for investments in the mining sector is outlined 
in the Foreign Investment Review Boar d (FIRB) Guidance Note 24, available on the FIRB website 
at www.firb.gov.au . In general, acquisitions of mining and production tenements are subject to 
a AU$0 screening threshold, while acquisitions of exploration tenements are generally exempt 
from screening for private investors. An acquisition of an interest in an operational mine is 
considered an acquisition of sensitive commercial land and is subject to a AU$60 million 
threshold. Investments in mining may also involve acquisitions of interests in the underlying WT/TPR/M/396/Add.1  
 
- 27 - 
 
  land. In these cases, the relevant screening threshold will depend on the type of land (e.g. 
agricultural, residential, etc) being acquired.  
 
Page 114 ，Para 4.59  
In April 2015, the Government detailed its energy strategy in the Energy White Paper (EWP). The 
Government's vision for the energy sector is focused on greater competition in energy markets, to 
improve consumer choice and to put downward pressure on prices; to use energy more productively 
to lower costs with a view to improving energy use and stimulate economic growth; and to encourage 
investment in innovation and energy resources development and to allow jobs and exports to grow. 
Followin g up on the EWP, the Government instituted the National Energy Productivity Plan 2015 -30, 
which targets a 40% improvement in energy productivity by 2030. Additionally, under the Paris 
Agreement, Australia increased its international climate change ambition s, and aims to reduce 
greenhouse gas emissions by 26%, to 28% below 2005 levels, by 2030. However, the EWP does not 
incorporate the Government's climate change pledge.  
 
Question 12  
12. The EWP 2015 mentioned that Australia will further increase investment in e nergy sector. After 
the release of the EWP, what incentive measures has the Australian government taken to attract 
investments in the energy sector (foreign investments in particular)?  
 
RESPONSE: Innovation in energy technologies is essential for Australia  and other countries to 
maintain a growing economy while meeting the ambition of the Paris Agreement. Low emissions 
technologies like renewable energy with storage, electric vehicles, solar fuels, carbon capture 
utilisation and storage (CCUS), micro grids,  and the latest high -efficiency low -emissions (HELE) 
thermal technology will all play a role. Australia’s abundant renewable resources and expertise 
in low emissions, clean energy and renewable technology will provide opportunities for Australia 
to boost e xports of such technologies and to attract investment.  
 
In 2018, clean energy investment was Australia’s highest on record at AU$13 billion, which 
placed Australia seventh of all countries in the world.  
 
The Australian Government is investing in clean ener gy technologies. For example, the Clean 
Energy Finance Corporation (CEFC) and the Australian Renewable Energy Agency (ARENA) have 
already invested AU$8.6 billion in projects worth over AU$29.5 billion.  
 
Australia is a member of Mission Innovation – a globa l initiative to increase public investment in 
clean energy R&D as part of global efforts to accelerate breakthroughs in clean energy 
technologies. The Australian Government, along with the 23 other member countries and the 
European Union, have pledged to d ouble public expenditure on clean energy research and 
development from 2015 levels by 2021.  
 
Page 114 ，Para 4.60  
According to the International Energy Agency, "energy prices have remained continuously high 
against low levels of competition in gas and electr icity markets and low consumer choice, pointing 
to structural challenges. Concerns have been raised that gas supplies may reach a shortage in the 
east coast market as liquefied natural gas (LNG) exports ramp up to 2022, further pushing up power 
prices". [I nternational Energy Agency: Australia 2018 Review.] In response, the Commonwealth 
Government introduced a gas security mechanism in July 2017, involving possible LNG export 
restrictions.  
 
Question 13  
13. Please elaborate on the Australian government’s LNG export restrictions, such as institutional 
arrangements, decision -making processes and practices, in response to the price issue in the 
domestic energy market.  
 
RESPONSE: The Australian Domestic Gas Security Mechanism (ADGSM) is a mechanism to 
ensure gas supply security only, it is not a price control mechanism.  
 
The ADGSM is only intended to be used in specific circumstances where market operators 
forecast a shortfall.  
 WT/TPR/M/396/Add.1  
 
- 28 - 
 
  Since its implementation in 2017, no export restrictions have  been issued under the ADGSM as 
there has not been a domestic gas market shortfall required to trigger the mechanism.  
 
Further information about the operation of the ADGSM is available here: 
https://www.industry.gov.au/regulations -and-standards/australian -domestic -gas-security -
mechanism . 
 
Page 115 ，Para 4.65  
The Department of Industry, Innovation and Science developed policies and programmes to a ssist 
businesses across Australia to build their capability, innovate, and grow in new and changing 
markets. Under the 2016/17 Department of Industry, Innovation and Science Corporate Plan, 
(covering 2016/17 to 2019/2020), the Government intends to transit ion businesses and 
manufacturers to high -value, high -growth activities. It aims at achieving these goals through the 
Growth Fund, including the Automotive Diversification Programme and the Next Generation 
Manufacturing Investment Programme; the Manufacturi ng Transition Programme and the 
Automotive Transformation Scheme; the Victorian Innovation and Investment Fund – Ford 
assistance, including the Geelong Region Innovation and Investment Fund and Melbourne's North 
Innovation and Investment Fund; and the Tasm anian Jobs and Investment Fund.  
 
Questions 14 -17 
14. Please explain in detail the operation of the above -mentioned government policies and 
supporting fund programs, and provide all legal and policy texts;  
 
15. Please specify the budget sources and implementation o f such government policies and 
supporting fund programs;  
 
RESPONSE TO QUESTIONS 14 -15: GROWTH FUND  
The Australian Government’s AU$155 million Growth Fund provided an assistance package 
between 2014 and 2018 to help automotive workers and supply chain businesses. The Growth 
Fund delivered the:  
• Automotive Industry Structural Adjustment Programme to help redundant automotive 
workers find new jobs (https://www.business.gov.au/Assistance/Automotive -Industry -
Structural -Adjustment -Programme);  
• Skills and Training Initiative to help workers build on existing skills and gain 
capabilities to transfer to new jobs;  
• Automotive Diversification Programme funding to help automotive supply chain firms 
capable of diversifying to find new markets;  
• Next Generation Manu facturing Investment Programme support to accelerate private 
sector investment in high value manufacturing sectors in Victoria and South Australia 
(https://www.business.gov.au/Assistance/Next -Generation -Manufacturing -Investment -
Programme ).  
GEELONG REGIONAL INNOVATION AND INVESTMENT FUND (GRIIF)  
• GRIIF was established in 2015 by the Australian and Victorian Governments in 
response to the announcement by Ford Australia that it will cease its vehicle and 
engine manufacturing operations in Australia from October 2016.  
• GRIIF supported innovative, job creation projects to strengthen and diversify Geelong’s 
regional economy and employment base.  
• Further informat ion on the program is available at 
(http://www.g21.com.au/sites/default/files/resources/GRIIF_FactSheet.pdf ).  
Melbourne’s North Innovation and Investment Fund (MNIIF)  
• MNIIF was established in 2015 by the Australian and Victorian Governments with 
support from Ford Australia as part of the commitment to the region in the lead up to 
the closure of Ford’s manufacturing operations in Melbourne’s north.  
• The objective of the fund was to support innovative, job creation projects to 
strengthen and diversify Melbourne North's regional economy and employment base.  
• Further information on the program is available at 
(https://www.minister.industry.gov.au/ministers/macfarlane/media -
releases/applications -open-round -two-245-million -melbournes -north ). 
 
Tasmanian Jobs and Investment Fund (TJIF)  
• TJIF was announced in September 2015 by the Australian and Tasmanian 
Governments.  WT/TPR/M/396/Add.1  
 
- 29 - 
 
  • The fund supported projects to create sustainable business investment and job 
opportunities that contribute to strengthening Tasmania’s economy.  
• Further information on the p rogram is available at 
(https://www.minister.industry.gov.au/ministers/pyne/media -releases/24m -fund-
support -tasmanian -business -growth). 
 
16. Please state whether the above government supporting programs have been notified to the WTO 
by Australia;  
 
RESPONSE: In the notification period, all identified programs have been notified to the WTO.  
 
17. If not, please specify the reasons respectively.  
 
RESPONSE: N/A 
 
Page 121 ，Para 4.89  
The APRA is the licensing authority for the financial sector. There are no restrictions on the number 
or size of operations of foreign banks in the Australian market, and foreign -owned subsidiaries are 
subje ct to the same legislative and prudential requirements as locally owned ADIs. The Financial 
Sector (Shareholdings) Act, 1998 operates in parallel with this process, and requires that any 
investor, foreign or domestic, wishing to acquire an interest of 15% or more in a financial institution 
must notify and seek the Treasurer's approval. The Treasurer reviews whether applications are in 
the national interest, on a case -by-case basis, taking into account all relevant considerations, such 
as prudential requirem ents and the impact on the economy and competition.  
 
Questions 18 -19 
18. Please specify the number, size and market share of foreign -invested financial institutions in 
Australia.  
 
19. Please explain in terms of approval, whether different content, standards and pr ocedures are 
applied to foreign investors intending to acquire over 15% of the stakes in financial institutions 
compared with domestic investors. What are the circumstances where the approval will not be 
granted? And what are the main reasons for such disa pproval?  
 
RESPONSE TO QUESTIONS 18 -19: The Australian Government welcomes foreign investment. 
The Financial Sector (Shareholdings) Act 1998 (FSSA) regulates ownership in ‘financial sector 
companies, including Australian Prudential Regulation Authority (APRA) regulated authorised 
deposit -taking institutions, insurers and their respective holding companies. Under the FSSA, an 
‘unacceptable shareholding situation’ arises where a person holds a ‘stake’ in a financial sector 
company of more than 20  per cent without the Treasurer’s approval. In broad terms, a person’s 
stake is the aggregate voting power in a company that is controlled by the person together with 
their associates.  
 
The Treasurer may approve a person holding a stake above 20 per cent w here satisfied it is in 
the national interest. There is no statutory guidance as to what is in the national interest under 
the FSSA, however national interest consideration may include a wide range of issues. Where a 
foreign investor provides an applicatio n, consultations may be undertaken with Australian 
Government departments, state and territory government departments, national security 
agencies and authorities with responsibilities relevant to the proposed investment. Advice and 
comments provided by suc h agencies are important in assessing the implications of proposed 
investments and in particular, in determining whether they raise any national interest issues.  
 
APRA and Treasury work closely with applicants and where an application raises potential 
concerns, these are discussed with the applicant, along with any proposed conditions to address 
these concerns. The applicant is provided with an opportunity to comment. If the applicant 
proposes mitigating actions, these will also be taken into account. Wher e an application raises 
no national interest concerns or that any concerns are adequately addressed by conditions, the 
applicant is notified in writing.  
 
Page 124 ，Para 4.103  
While noting that the Australian financial system is fundamentally sound and has b een further 
strengthened, the IMF's 2018 Financial Sector Assessment Program (FSAP) Review of Australia also WT/TPR/M/396/Add.1  
 
- 30 - 
 
  highlighted some of the above issues, and made several recommendations to improve current 
arrangements. According to the FSAP, the household sector  posed challenges, mainly due to high 
real estate valuations coupled with high household leveraging. The concentrated nature of the 
banking system, banks' reliance on offshore wholesale funding, and developing a resolution 
framework for financial market in frastructures were other areas of concern.  
 
Question 20  
20. Will the adjustments of the Australian financial system have an impact on investments by the 
foreign financial institutions and foreign banks in Australia? Please give some examples.  
 
RESPONSE: The Au stralian Government has acknowledged some of the risks outlined in the 
IMF FSAP and has taken measures to strengthen the stability of the financial system. 
Investments from foreign financial institutions will be subject to the Foreign Acquisitions and 
Takeover Act 1975 (FATA) and if applicable, the Financial Sector (Shareholdings) Act 1998 
(FSSA). Foreign banks may also be subject to prudential regulations and other financial licensing 
requirements administered by the Australian Prudential Regulation Author ity and Australian 
Securities and Investments Commission.  
 
Page 127 ，Para 4.121  
Telstra, Optus and Vodafone are the main carriers operating in the mobile phone network, and their 
respective market shares remained largely stable in 2017/18 (Telstra 53.6%, Optus 29.2%, and 
Vodafone 17.2%). According to the authorities, mobile carriers are rolling out advanced 4G 
infrastructure in the 700 MHz and 850 MHz spectrum bands, and the 5G mobile network is expected 
to be activated in 2019.  
 
Questions 21-22 
21. How many of major telecom operators in Australia are foreign companies, and how much market 
share do they have?  
 
RESPONSE: Of the three major operators (Telstra, Optus and Vodafone Hutchison Australia 
(VHA)), two are wholly foreign owned (Optus by Si ngtel and VHA jointly by Vodafone Group and 
Hutchison Telecommunications Hong Kong). Telstra is 22 per cent foreign owned.  
 
Market share: fixed line broadband services; Optus 15 per cent, VHA n/a, Telstra 47 per cent  
 
Market share: mobile services; Optus 2 7 per cent, VHA 19 per cent, Telstra 41 per cent  
 
22. Is there any foreign company approved as a major telecom operator over the past 15 years? If 
yes, please specify the year of approval, the company name and its market share. If no, how 
can Australia ensure compliance with its WTO commitments to allow foreign investment in the 
telecommunications sector?  
 
RESPONSE: The creation of Vodafone Hutchison Australia through the merger of Hutchison 3 
and Vodafone Australia occurred in 2009. See above for market shares . 
 
Page 132 ，Para 4.148  
In 2015/16 (latest figures available), almost 1.6 billion tonnes of cargo moved across Australian 
ports. International exports represented 87.3%, and imports represented 6.2% of this cargo. The 
value of exports by sea was AUD 218.9 b illion in 2015/16.  
 
Question 23  
23. Does Australia have any plan to further open up maritime transport service sector?  
 
RESPONSE: There are no specific plans to further open up the maritime cabotage framework. 
Australia’s regulation of maritime cabotage is amo ng the most liberal in the world. Upon 
obtaining a licence, foreign ships are able to carry cargoes between any port pair in Australia. 
Consultation is currently being undertaken with stakeholders on options for coastal trading 
reform. The outcomes of this  consultation will be provided to the Australian Government for 
consideration.  
 WT/TPR/M/396/Add.1  
 
- 31 - 
 
  Page 134 ，Para 4.172  
The Tourism Major Project Facilitation (TMPF) service was specifically developed for tourism 
investments. The TMPF service within Austrade provides investors with a central contact person in 
the Government to help guide them through both Australian and sta te or territory government 
approval processes. The TMPF service works in cooperation with Australian, state and territory 
government agencies to process approvals in a streamlined and efficient manner. Similarly, the 
Regional Tourism Infrastructure Investm ent Attraction Strategy is a five -year (2016 -21) plan 
between Austrade and Tourism Australia to work with state, territory and local governments to 
create an environment conducive to attracting FDI into the regional tourism infrastructure.  
 
Questions 24 -26 
24. How much market share does foreign capital hold in Australia’s tourism industry, and what kind 
of tourism service are they mainly engaged in?  
 
RESPONSE: The value of Australia's investment grade hotel market surged 26 per cent to 
AU$56 billion in 2018 acc ording to a report by Colliers International (Source: Capital Markets 
Australia and New Zealand Hotels Investment Review, 2019, Colliers International). Colliers 
defines investment grade stock as two to five -star hotels, motels and serviced apartments with  
more than 75 rooms, as well as chain -operated properties and luxury boutique properties with 
fewer than 50 rooms.  
 
According to the report, while the majority of hotels (56 per cent by value) are still owned by 
local Australian investors, international in vestment from the Asia -Pacific region has lifted Asian 
ownership to just under a third.  
 
Colliers has also published another report confirming that international capital was responsible 
for approximately 55 per cent of total deal flow for all hotel transac tions in Australia in 2019 
valued above AU$5 million. Investor markets included Singapore, New Zealand, Hong Kong, 
Middle East, Germany, Thailand and the United States. The overall transaction value for hotels 
in 2019 was AU$2.2 billion, with 45 deals conc luded (Source: Hotel Sales 2019, Colliers 
International).  
 
25. Please provide details on Australia’s existing policies and measures to promote foreign direct 
investment in tourism sector?  
 
RESPONSE: The Australian Trade and Investment Commission (Austrade) is responsible for the 
promotion, attraction and facilitation of productive foreign direct investment (FDI) into Australia. 
Austrade provides the following services:  
 
• Initial coordination of all investment enquiries and assistance  
• Information on the Australia n business and regulatory environment  
• Market intelligence and investment opportunities  
• Identification of suitable investment locations and partners in Australia  
• Advice on Australian government programs and approval processes.  
 
Tourism Infrastructure has been identified as one of the priority sectors for investment 
attraction. In addition to the general services offered above, Austrade administers the following 
in the tourism infrastructure area:  
 
Regional Tourism Infrastructure Investment Attraction Strategy (the Strategy). The Strategy is 
a five -year commitment (2016 -21) between Austrade and Tourism Australia (TA) to work with 
state, territory and local governments to create an environment conducive to attracting FDI into 
region al tourism infrastructure. For the purpose of the Strategy, a region is any area outside 
Australia’s capital cities and the Gold Coast. The Strategy aims to work across governments and 
industry to promote tourism investment as a priority within eight key r egions in Australia, and 
to identify and overcome local impediments that may be holding back supply of visitor 
experiences and broader investment.  
 
26. Please briefly introduce the current measures and implementation of TMPF service, and is there 
any open acce ss for inquiry?  
 WT/TPR/M/396/Add.1  
 
- 32 - 
 
  RESPONSE: The Tourism Major Project Facilitation Service provides proponents of significant 
tourism investments with a central contact person in the Australian Government to help guide 
proponents through both Australian and State or Territ ory government approvals processes. The 
TMPF service works in cooperation with Australian, State and Territory Government agencies to 
progress approvals in a streamlined and efficient manner.  
 
The TMPF service case manages projects through Australian Gover nment approvals processes. 
International and Australian -based proponents are eligible for TMPF for significant tourism 
projects within Australia. The service has national coverage. Projects must have in -principle 
support by the relevant State or Territory Government in order for a project to receive the TMPF 
service. The Australian Trade and Investment Commission (Austrade) will determine whether 
there is support for the project by consulting with relevant State or Territory Government 
agencies during the a ssessment process.  Proponents may apply to the Australian Government 
Minister for Tourism if their proposed project meets the following four criteria:  
 
1) The project has a capital investment value in excess of AU$50 million and makes a 
significant contri bution to economic growth, exports, employment and/or infrastructure 
development. A project that has a capital investment value of less than AU$50 million 
but has significant regional economic benefits can be submitted for consideration by the 
relevant Sta te or Territory Government on behalf of a proponent.  
2) The project is of strategic significance to the whole -of-government and industry long -
term strategy of Tourism 2020, and has strong claims against one or more of its six 
objectives.  
3) The project is in the national interest and is likely to significantly impact the sector 
by providing a new product that is likely to increase international visitation to a 
destination.  
4) The project requires Australian Government approval(s) administered under 
Australi an Government legislation in order to proceed.  
Further information on how to apply, including contact details, is available at : 
https://ww w.austrade.gov.au/Australian/Tourism/Tourism -and-business/Investing -in-
Tourism/how -to-apply . 
 
PART II:  QUESTIONS REGARDING THE GOVERNMENT REPORT  
Page 4, Para 2.5  
Income tax cuts and monetary easing in 2019 have supported household disposable incomes and 
demand.  
 
Questions 27 -29 
27. Please explain whether the cuts in income tax refer only to that in personal income tax or both 
personal and corporate income tax.  
 
RESPONSE: This refers mainly to personal income tax. The Government’s personal income tax 
relief measures from both the 2018 -19 and 2019 -20 Budgets increase aggregate household 
disposable income by around AU$8 billion each year over the forward estimates period, which is 
equal to around 0.6 per cent of 2018 -19 household disposable in come.  
 
28. If corporate income tax is included, please explain the specific qualifications and application 
procedures that apply to enterprises entitled to tax reduction.  
 
RESPONSE: N/A 
 
29. If the tax cuts refer only to that in personal income tax, please explain  whether such cuts are 
linked to the industry that an individual is from or the source of their income.  
 
RESPONSE: The Government is delivering lower taxes for low - and middle ‑income earners. 
These measures are not linked to the industry that an individual is from or the source of their 
income.  
 
Page 6, Para 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 chan ges. 
These include strengthening competition and consumer legislation, tax reform, increasing WT/TPR/M/396/Add.1  
 
- 33 - 
 
  infrastructure investment, and reforming the regulatory environment for SMEs to minimize 
regulatory burden. The Government also put in place a plan for developmen t of the digital economy, 
and established a process designed to boost the competitiveness of Australia’s services sector.  
 
Questions 30 -31 
30. Can Australia introduce the digital economy development plan in detail, and suggest the open 
access to relevant docum ents?  
 
RESPONSE: The Australian Government’s report on ‘Australia’s Tech Future’, released on 19 
December 2018, recognises the significant economic and social opportunities that digital 
technologies bring and details how Australia can maximise the opportun ities of technological 
change by focusing on four key areas:  
• People: developing Australia’s digital skills and leaving no one behind  
• Services: how government can better deliver digital services  
• Digital assets: building infrastructure and providing secure access to high -quality data  
• The enabling environment: maintaining our cyber security and reviewing our 
regulatory systems.  
The full report can be found here: https://www.industry.gov.au/sites/default/files/2018 -
12/australias -tech-future.pdf . 
 
31. Can Australia give some details on the process of improving the competitiveness of the service 
sector and suggest the open access to relevant documents?  
 
RESPONSE:  In 2019, the Australian Government commenced an initiative working in close 
collaboration with industry across the services sector to identify and address barriers to services 
exports and competitiveness. The services industry presented government with In dustry's 
Recommendations - An Action Plan to Boost Australia's Services Exports in August 2019 and the 
Government released the Government Response to Industry's Action Plan to Boost Australian 
Services Exports in November 2019.  
 
This is an ongoing initiati ve of collaboration with industry and is expected to continue through 
2020 and beyond. Greater details of industry recommendations and the Australian Government’s 
response is available from the following website: https://dfat.gov.au/trade/services -and-digital -
trade/Pages/services -export -action -plan.aspx . 
 
Page 6 , Para 2.21  
Australia has made changes to its taxation of multinational corporations in line with international 
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.  
 
Question 32  
32. Please elaborate on the new measures taken by the  Australian government to create a tax level 
playing field for local and foreign companies. In particular, what adjustments have been made 
to the taxation of multinational corporations?  
 
RESPONSE: The Australian Government has implemented a number of measu res: 
• Stronger tax penalties: for tax avoidance schemes (from 1 July 2015) and for 
administrative breaches (from 1 July 2017) by multinationals.  
• Multinational Anti -Avoidance Law: prevents multinationals from artificially avoiding a 
taxable presence in Austr alia (from 1 January 2016). Expected to return more than 
AU$7  billion in taxable sales annually to Australia.   
• Country -by-Country Reporting rules: requires multinationals to report to the Australian 
Taxation Office (ATO) on their global operations (from 1  January 2016).  
• Australia's Transfer Pricing rules: aligned with international best practice (from 1 July 
2016).  
• Tax Avoidance Taskforce: created in the ATO to scrutinise multinationals, large public 
and private groups and wealthy individuals (from 1 July 2016). To date the taskforce 
has raised around AU$8 billion in additional tax liabilities.  
• Diverted Profits Tax: prevents multinationals from shifting untaxed Australian profits 
offshore (from 1 July 2017).  Goods and Services Tax: applied to imported  digital 
products and services (from 1 July 2017) and to low value imported goods (from 1 July 
2018).  WT/TPR/M/396/Add.1  
 
- 34 - 
 
  • Thin capitalisation rules: tightened (from 1 July 2019).  
• Anti-hybrid mismatch rules: prevents multinationals from exploiting jurisdictional tax 
treatment mismatches to avoid tax (from 1 January 2019).  
• OECD Multilateral Instrument: entered into force for Australia on 1 January 2019.  
 
Page 6, Para 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.  
 
Questions 33 -36 
33. Please explain the relationship between the tax reduction mentioned in para. 2.23 and the tax 
reduction policy in para. 2.5.  
 
RESPONSE: There is some overlap betwe en the tax reductions in the referenced paragraphs. 
Paragraph 2.5 refers to a shorter time period.  
 
34. Please explain the standards for identifying “small -sized enterprises” to which such tax 
reductions apply.  
 
RESPONSE: There are two main tax reductions whic h have applied to smaller businesses, one 
for incorporated and the other for unincorporated businesses.  
 
The company tax rate for active small and medium businesses with turnover below AU$50 million 
is being cut from 27.5 per cent currently to 26 per cent in 2020 -21 and to 25 per cent in 2021 -
22.  
 
The unincorporated small business tax discount rate (which applies for unincorporated small 
businesses with an aggregated turnover below AU$5 million) will rise from 8 per cent currently 
to 13 per cent in 2020 -21 and to 16 per cent in 2021 -22 and subsequent years (up to the 
existing cap of AU$1,000 a year).  
 
35. Please explain which Australian industries have benefited from such tax reductions.  
 
RESPONSE: These tax reductions for businesses have provided lower taxes for up to 3.4 million 
businesses. The business tax reductions apply broadly across all industries.  
 
36. Please explain how this policy reduces taxes on consumer behaviours.  
 
RESPONSE: The Government is delivering lower taxes by providing tax relief to ha rd-working 
low- and middle -income Australians, with immediate relief of up to AU$1,080 for singles, or up 
to AU$2,160 for dual income families, and structural reform so a projected 94 per cent of 
Australian taxpayers will face a marginal tax rate no higher  than 30 per cent in 2024 -25. An 
increase in household disposable income should provide support for consumption growth, along 
with continued growth in employment, a modest pick -up in wage growth and low interest rates.  
 
Page 7, Para 2.29  
The aim is to iden tify 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;  
• addressing barriers in international mark ets; and  
• helping services firms as they internationalize.  
 
Question 37  
37. What specific measures has Australia taken in the above three areas? What does Australia plan 
to do at the WTO? In particular, how does Australia plan to further reduce the complexity o f 
domestic regulation?  
 
RESPONSE: The Australian Government is committed to ongoing regulatory reform in order to 
reduce the burden of regulation, boost productivity and increase competitiveness. In July 2019 
the Prime Minister established a Deregulation T askforce led by the Treasurer to drive 
improvements to the design, administration and effectiveness of government regulation to 
ensure it is fit for purpose.  The Taskforce will develop and recommend solutions to lower the WT/TPR/M/396/Add.1  
 
- 35 - 
 
  costs of regulation while retaini ng the benefits, making it easier for businesses to invest, create 
jobs and grow the economy. The Taskforce’s primary focus is to identify barriers to investment 
and job creation from the perspective of business, and then to work with business and agencies  
to co-design solutions across Federal and State and Territory jurisdictions. Further information 
on this initiative is available at https://treasury.gov.au/review/deregulation -taskforce . 
 
Australia is a strong supporter of the Joint Statement Initiative (JSI) on Services Domestic 
Regulation and has submitted a draft indicative schedule incorporating the agreed disciplines 
under Article XVIII of the General Agreement on Trade in Services (GATS). Australia sees the 
JSI as an important opportunity to agree new rules relating to licensing requirements and 
procedures, qualification requirements and technical standards. These rules will provide greater 
certainty for all services suppli ers, particularly in relation to processes for submitting 
applications and seeking other forms of authorisation to provide their services. Australia will 
also continue to engage constructively in the Working Party for Domestic Regulation, noting 
that addit ional commitments made under the auspices of the JSI do not preclude a future 
multilateral outcome on services domestic regulation.  
 
In addition to Australia’s strong support for the multilateral trading system, the Australian 
Government contributes to the development of international trade rules through negotiating 
bilateral, regional and plurilateral free trade agreements (FTAs). Australia’s FTAs have secured 
significant new rules in evolving areas of services trade over the review perio d. Australia’s high -
quality FTAs aim to serve as building blocks for wider multilateral liberalisation.  
 
In 2019, the Australian Government commenced an initiative working in close collaboration with 
industry across the services sector to identify and addr ess barriers to services exports and 
competitiveness. In August 2019 the services industry presented government with Industry's 
Recommendations - An Action Plan to Boost Australia's Services Exports. In November 2019 
the Government released the Government Response to this Action Plan. This is an ongoing 
Industry -Government initiative.  Further information is available at https://dfat.gov.au/trade/ 
services -and-digital -trade/Pages/services -export -action -plan.aspx . 
 
Page 8, Para 2.31 -2.32 
E-commerce is an increasingly important way for Australia to trade with the rest of the world. The 
2016 Australian International Business Survey found that 47% of re spondents 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. The Australian economy has lifted its productivity 
by adopting technology in existing industries; however, this has been uneven across the eco nomy, 
with larger, internationally - integrated firms leading, while domestically oriented firms lag 
noticeably.  
 
Conscious of the importance of the digital economy to Australia’s overall economic future, the 
Australian Government has taken a number of step s during the review period to enhance its 
development.  
 
Questions 38 -43 
38. Please explain what measures Australia has taken to promote e -commerce development. Do 
these measures comply with the WTO’s most -favoured -nation and national treatment 
principles? Does  Australia exclude certain companies from the construction of 5G networks in 
Australia? If so, what is the basis? Do Australia’s measures comply with its GATS commitments?  
 
RESPONSE: Australia has implemented a range of measures to facilitate and promote e -
commerce in Australia. Electronic commerce is principally regulated and facilitated by federal, 
state and territory Electronic Transaction Acts. Other measures adopted include the Competition 
and Consumer Act 2010 (Cth) to ensure businesses adopt fair business practices when engaging 
in electronic commerce, the Privacy Act  (Cth) which regulates the collection, use and disclosure 
of personal information. The Do Not Call Register Act  (Cth) and the Spam Act (Cth) also provide 
protection to users from unsolicited marketing communications transmitted via phone calls, 
faxes and messages. These measures comply with the Most -Favoured Nation and National 
Treatment principles.  
 
Australia’s posit ion on 5G networks is dealt with in the response to Questions 55 -59 below.  WT/TPR/M/396/Add.1  
 
- 36 - 
 
  39. Logistics services, express services in particular, are an indispensable part of e -commerce. 
Please introduce the situation of the express market, foreign investment access, and rel ated 
policies and measures.  
 
RESPONSE: Australia’s market for express delivery and postal services is generally open to 
competition. There is a high level of competition and foreign investment in the sector. 
International courier service suppliers are prom inent in Australia. The regulatory framework for 
postal services in Australia is derived primarily from the Australian Postal Corporation Act 1989 
and associated regulations.  The main objectives of the Act relate to the need for a nationwide 
letters servi ce. Australia is bound by its Universal Postal Union treaty obligations, including for 
parcel and small packet delivery services.  
 
40. Please introduce the situation of Australia’s e -payment market, foreign investment access and 
related policies and measures.  
 
RESPONSE: The Australian Securities and Investments Commission (ASIC) regulates banks 
and financial service providers, and sets and enforces banking standards in Australia. ASIC is 
responsible for monitoring compliance with the ePayments Code, which prote cts users of 
electronic payment facilities in Australia. The Code regulates consumer electronic payments, 
including ATM, EFTPOS and credit card transactions, online payments, internet and mobile 
banking, and BPAY. Further information on the Code can be fou nd at: https://asic.gov.au/for -
consumers/banking/. Detailed information on Australia’s foreign investment policy can be found 
on the Foreign Investment Review Board website at: https:/ /firb.gov.au/guidance -
resources/policy -documents . 
 
41. Please introduce Australia’s current domestic policies on large international internet companies 
and explain whether Australia may take other regulatory measures.  
 
RESPONSE: On 4 December 2017, the then Treasurer, the Hon Scott Morrison MP, directed 
the Australian Competition and Consumer Commission (ACCC) to conduct an inquiry into digital 
platforms. The inquiry looked at the effect that digital search engines, social media p latforms 
and other digital content aggregation platforms have on competition in media and advertising 
services markets.  The Final Report of this Inquiry was published on 26 July 2019, and found 
that digital platforms have a significant impact on the commu nity. It recognised the benefits 
that they provide consumers and businesses but highlighted the concerns arising from the 
imbalance in the leading digital platforms’ relationships with advertisers, media businesses and 
consumers. This report made 23 recomm endations in relation to the growth of key digital 
platforms and their impact on consumers, advertisers and news media. A full copy of the Final 
Report of the inquiry can be found at: https://www.accc.gov.au/publications/digital -platforms -
inquiry -final-report . 
 
On 12 December 2019, the Australian Government released a roadmap for action in response 
to the ACCC’s Digital Platforms Inquiry, which outlines a program of work and series of reforms 
to promote competition, enhance consumer protection and support a sustainable Australian 
media landscape in the digital age. This includes the creation of a Digital Platforms Branch within 
the ACCC, which will be responsible for proactively investigating and monitoring competition 
and consumer issues in digital platforms markets. The Government will also implement staged 
media reforms to provide a platform -neutral regulatory framework for online and offline media 
content; and will  ensure Australia’s privacy regulatory settings protect consumers’ data and 
best serve the Australian economy by introducing a binding privacy code and strengthening 
protections in Australia’s Privacy Act. The Government has also asked the ACCC to oversee the 
development of voluntary industry codes to address the bargaining power imbalance between 
Australian news media providers and major digital platforms Facebook and Google; and has 
asked the Australian Communications and Media Authority to facilitate the  development of 
voluntary industry codes to combat the spread of codes to combat disinformation and ensure 
the quality of news online. Further details of the Government’s response to the ACCC Digital 
Platforms Inquiry can be found at: https://treasury.gov.au/publication/p2019 -41708 .  
 
As foreshadowed in the Government’s roadmap, on 10 February 2020, the Treasurer issued two 
directions to the ACCC relevant to competition and consumer issues raised by the growth of 
large international digital platforms. The first direction requires the ACCC to conduct a five -year 
inquiry into digital platform services that will examine and monitor the operation of services WT/TPR/M/396/Add.1  
 
- 37 - 
 
  including internet search engines, so cial media, online private messaging, digital content 
aggregation platforms, media referrals and electronic marketplaces. This inquiry will also cover 
digital advertising services supplied by such digital platforms and the data practices of both 
digital pl atforms and data brokers. The ACCC has been directed to provide six -monthly reports 
to the Treasurer under this direction. Separately, the ACCC will also conduct a separate 
standalone 18 -month inquiry into digital advertising services, which will focus on the intensity 
of competition and efficiency of markets for ad tech services and ad agency services including 
the level of transparency in these markets. More information about these two inquiries can be 
found at: www.accc.gov.au/focus -areas/inquiries -ongoing/digital -platform -services -inquiry -
2020-2025 and www.accc.gov.au/focus -areas/inqu iries-ongoing/digital -advertising -services -
inquiry . 
 
42. Please introduce Australia’s tax policies related to e -commerce, including that of tariffs and 
domestic taxes.  
 
RESPONSE: From 1 July 2017, purchases of digital currency are no longer subject to the GST. 
Previously, GST had been payable on the purchase of a digital currency, and again on its use 
for goods and services subject to the GST. This measure removed this double taxat ion.  
 
From 1 July 2017, the GST applies to digital products and services that are imported by 
consumers in Australia from offshore. These include intangible supplies such as e -books, video 
streaming services and game downloads. The measure also includes s ervices provided from 
offshore to consumers including legal and accountancy services supplied by offshore entities. 
The law applies to offshore vendors and electronic distribution platforms with Australian 
turnover of AU$75,000 or more.  
 
From 1 July 2018, the GST applies to low value imported goods (or goods valued at or below 
AU$1000). Offshore -based vendors, electronic distribution platforms and resellers with 
Australian turnover of AU$75,000 or more are required to register and charge GST on sales of 
goods priced at or below AU$1000 to consumers in Australia. Goods valued at above AU$1000 
continue to be taxed at the border.  
 
On 20 March 2019, the Australian Government announced its decision to continue to focus 
efforts on engaging in the multilateral pro cess to address the tax challenges arising from 
digitalisation, and not to proceed with an interim measure such as a digital services tax at this 
time. 
 
43. Please specify Australia’s measures to restrict the cross -border data flow, including the names 
of laws  and regulations and specific provisions.  
 
RESPONSE: Australia may seek to restrict cross -border data flows for sensitive categories of 
information or where localisation is required for regulatory oversight. For instance:  
 
My Health Records Act 2012 :  
• Section 77 prohibits the transfer of health records outside Australia with certain 
exceptions.  
Privacy Act 1988 :  
• The Privacy Act 1988 controls how personal information is collected, used and disclosed. 
These matters are set out in the 13 Australian Privac y Principles (or APPs) which are 
contained within Schedule 1 of the Privacy Act.  
• APP8 permits APP entities to share personal information with foreign organisations to 
facilitate the free flow of information across national borders while ensuring that the 
privacy of individuals is respected. It requires that before an entity discloses personal 
information overseas, it must take reasonable steps to ensure that the recipient does 
not breach the APPs. There are a number of exceptions to the requirements of APP 8 - 
including where the overseas recipient is subject to a law or binding scheme that is 
equivalent to the APPs and there is a readily accessible dispute resolution process 
available, or where the disclosure is required or authorised under an Australian la w, or 
where there is individual consent.  
• Credit Reporting - Part IIIA of the Privacy Act, which regulates credit reporting, includes 
some restrictions on sending information held in the Australian credit reporting system WT/TPR/M/396/Add.1  
 
- 38 - 
 
  overseas. There may be similar rest rictions in other contexts and with other types of 
information.  
Corporations Act 2001 : 
• Localisation of financial market infrastructures might be required under Part 7.3 of the 
Corporations Act.  
 
Page 8, Para 2.34 -2.36 
In 2018, following a broad consultatio n process, the Government released a national strategy for 
Australia’s Tech Future that centres on developing skills, infrastructure and technology for the digital 
economy. The strategy details how Australia can maximize the opportunities of technological change 
by focusing on four key areas: 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.  
 
In 2018, the Australian Government also released a Digital Transformation Strategy (DTS) for its 
own operations. The aim of the DTS is to maintain Australia’s place at the leading edge of the 
provision of government services. Australia was recog nized (in 2015) as second in the world by the 
UN for the effectiveness of government digital services.  
 
The Government is also pursuing opportunities to liberalize international digital trade through 
multilateral and other trade negotiations. The Governmen t’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.  
 
Questions 44 -46 
44. Please elaborate on the policies and measures that Australia has taken in four key areas, 
especially those in safeguarding cyber security and reviewing the regulatory system and their 
implementation progress.  
 
RESPONSE: Since the release of Australia’s national strategy for Australia’s Tech Future, the 
government has been progressing a range of initiatives that affect Australia’s digital economy. 
For example:  
 
• Cyber security: Australia’s cyber security industry policy aims to enable cyber security 
sector growth to build a sovereign industry capability, and to uplift the cyber security 
posture of Australian businesses. The Australian Government has announced the 
development of Australia’s new Cyber Security Strategy for delivery in 2020, to replace 
the 2016 Strategy ( https://www.homeaffairs.gov.au/reports -and-publications/ 
submissions -and-discussion -papers/cyber -security -strategy -2020). The Australian 
Cyber Security Centre (ACSC) has released a Small Business Cyber Security Guide, to 
advise small business on simple measures to avoid, or reduce the impact of the most 
common cyber security incidents ( https://www.cyber.gov.au/publications/small -
business -cyber -security -guide ). 
• Regulation: The Australian Government is continuing to ensure that regulatory 
frameworks across all areas of the modern economy are fit -for-purpose. On 26 July 
2019, the ACCC released a report on the impact of online search engines, social media 
and digital platforms on competition in the media and advertising services markets. The 
Report proposes specific recommendations aimed at addressing some of the actual an d 
potential negative impacts: ( https://www.accc.gov.au/publications/digital -platforms -
inquiry -final-report ). In February 2020, the Australian Government released a National 
Blockchain roadmap to showcase key sectoral use cases for blockchain technology, and 
identify opportunities around regulation and standards, skills, innovation and capacity 
building, and international collaboration ( https://www.industry.gov.au/data -and-
publications/national -blockchain -roadmap ). In November 2019, the Government also 
released an Artificial Intelligence Roadmap and a set of AI Ethics Principl es to provide 
guidance and pathways to ensure Australia captures the potential of AI, and the 
development and adoption of AI is responsible and ethical: 
(https://data61.csiro.au/en /Our-Research/Our -Work/AI -Roadmap ; 
https://www.industry.gov.au/data -and-publications/building -australias -artificial -
intelligence -capability/ai -ethics -framework ). 
• Digital skills: On 3 February 2020, Australia announced the launch of the Empowering 
Business to Go Digital program. The program will provide seed funding to support a new WT/TPR/M/396/Add.1  
 
- 39 - 
 
  or existing non -government organisati on to build and enhance small and medium 
business digital skills ( https://www.business.gov.au/Grants -and-Programs/ 
Empowering -Business -to-go-Digital ). The Government's 2019 -2020 Skills Package 
includes AU$52.5 million for the Foundation Skills for Your Future program, which will 
support workers who are currently employed, or recently unemployed, to identify any 
literacy, numeracy and digital literacy needs a nd, where appropriate, access training. 
The program is expected to commence in early 2020 
(https://www.employment.gov.au/foundation -skills-your-future -program ).  
• Digital go vernment: The Government’s Digital Transformation Strategy 2018 -2025 
identifies how the Government can use digital technology and data to deliver better 
services with greater flexibility, more responsive policy, less red tape. The Digital 
Transformation St rategy Roadmap details key project and milestones and major 
transformation opportunities to 2024: https://dta -www-drupal -2018013021541115  
3400000001.s3.ap -southeast -2.amazonaws.com/s3fs -public/files/digital -
transformation -strategy/digital -transformation -strategy.pdf . 
Detailed information on Australia’s Tech Future, including t hese four key areas can be found at: 
https://www.industry.gov.au/data -and-publications/australias -tech-future/government -
initiatives . 
 
A Digital  Technology Taskforce was established on 6 December 2019 to help establish Australia 
as a leading digital economy by 2030. The taskforce will examine and report to the Prime Minister 
and Treasurer at ways the Government can boost productivity through the i ncreased uptake of 
digital technology, and how to use digital technology to benefit Australians while minimising 
harms.  
 
45. Please introduce Australia’s experiences and practices in implementing the DTS and 
strengthening the government’s capacity to provide d igital services.  
 
RESPONSE: In November 2019, the Minister for Government Services and the Minister for 
National Disability Insurance Scheme announced the progress in the first year of delivery 
against the Australian Government’s Digital Transformation Strategy. This update shows how  
the Australian Government is delivering on the Strategy, explains some of our experiences and 
increased capacity to provide digital services. Australia’s achievements against the strategy can 
be viewed via an online Dashboard which maps progress against e ach of the Strategy’s 13 
objectives: https://www.dta.gov.au/digital -transformation -strategy . 
 
46. In terms of promoting e -commerce and digital trade, what are the main trade negotiations th at 
Australia has completed or is conducting? What specific results have been achieved / are 
expected to be achieved?  
 
RESPONSE: Australia has made commitments on e -commerce and digital trade in agreements 
with the Association of Southeast Asian Nations, Ne w Zealand, Chile, the United States, China, 
Korea, Japan, Malaysia, Singapore, Thailand, the Comprehensive and Progressive Agreement 
for the Trans -Pacific Partnership parties, Peru and Hong Kong. Australia has also made bilateral 
commitments with Indonesia  although these have not yet entered into force. Australia is 
pursuing high standard e -commerce outcomes in negotiations with the European Union, Pacific 
Alliance parties, Regional Comprehensive Economic Partnership parties, and in a bilateral Digital 
Economy Agreement with Singapore.  
 
Depending on the specific negotiation, Australia generally pursues disciplines on the following 
topics in its trade agreements to facilitate digital trade: transparency, paperless trading, 
electronic authentication, online co nsumer protection, online protection of personal information, 
spam, customs duties on electronic transmissions, domestic regulatory frameworks, localisation 
of computing facilities, cross -border transfer of information by electronic means, disclosure of 
source code, cooperation, elimination of customs duties on technological products, trade 
facilitation commitments and commitments on performance requirements.  
 
Page 10, Para3.14  
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 infor mation and privacy etc.) and prohibiting WT/TPR/M/396/Add.1  
 
- 40 - 
 
  restrictions on data flows, including localization requirements. Making the WTO moratorium on 
customs duties on electronic transmissions permanent is also a key aim.  
 
Questions 47 -48 
47. Please elaborate on Australia’s main concerns and goals in the WTO’s reforms in digital trade.  
 
RESPONSE: Australia has actively participated in the negotiations on trade -related aspects of 
electronic commerce, and facilitated them as Chair with co -convenors, Singapore and Japan. 
Austral ia’s goal is to develop a set of modern rules that provide businesses with a more open 
and predictable online trading environment, underlining the WTO’s continued relevance as a 
rule-making body. Reflecting our stakeholder consultations on digital trade to  date, Australia is 
working toward securing a strong outcome addressing restrictions on data flows, facilitating 
digital trade and electronic transactions, and ensuring consumer protection. Making the WTO 
moratorium on customs duties on electronic transmis sions permanent is also a priority.  
 
48. Please elaborate on the specific measures and future plans of Australia on the WTO’s e -
commerce negotiations.  
 
RESPONSE: As Chair of the Joint Statement Initiative on E -commerce, along with co -convenors 
Singapore and Ja pan, Australia will be encouraging participants to continue to work 
constructively and creatively to ensure a consolidated negotiating text is developed by MC12. 
In the margins of the World Economic Forum meeting in Davos in January 2020, Ministers 
reaffir med their commitment to a high standard outcome with the participation of as many WTO 
members as possible and MC12 provides an opportunity to consider next steps, including a 
timeframe for conclusion.  
 
Page 15, Para 3.54  
The China –Australia Free Trade Agre ement (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 Australia’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 i s fully implemented in 
2029. Australia eliminated 100% of its remaining tariffs on the Chinese goods in 2018.  
 
Question 49  
49. Please introduce the content of the “China -Australia Free Trade Agreement” that has been 
implemented, including commitments and preferential treatment in services, investment, and 
temporary entry of business personnel.  
 
RESPONSE: Australia has implemented its commitments in the China -Australia Free Trade 
Agreement (ChAFTA), including those on services, investment an d temporary entry set out in 
Chapters 8 to 10 of ChAFTA.  
 
Page 21, Para 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 collaborat ively to set investment priorities, 
facilitate investment opportunities, and identify and address investment impediments.  
 
Questions 50 -53 
50. Please specify the investment promotion policies in the above -mentioned five areas, and provide 
all legal and policy texts.  
 
RESPONSE: The five priority sectors for inbound investment, agreed by the Australian national, 
state and territory governments, assist the Australian Trade and Investment Commission and 
state and territory investment promotion agencies to pr ioritise internal resources for investment 
attraction and facilitation.  
 WT/TPR/M/396/Add.1  
 
- 41 - 
 
  For more information, see: https://www.austrade.gov.au/Inter national/Invest/Guide -to-
investing/Australian -Government -support -programs . 
 
51. Please explain whether the specific policies of attracting foreign investment include preferential 
policies on taxes, land, and finance, or any other preferential policies or suppo rt. 
 
RESPONSE: The five priority sectors do not attract specific preferential policies on taxes, land, 
finance or any other preferential policies or support.  
 
All proposed foreign investments, regardless of whether they align with the five priority sectors , 
receive treatment in line with free trade agreement (FTA) obligations and Australia’s Foreign 
Investment Review process.  
 
For more information, see: https://www.austrade.gov.au/International/Invest/Guide -to-
investing/Australian -Government -support -programs . 
 
52. Have the above preferentia l policies or government support been notified to the WTO ? 
 
RESPONSE: The Australian Government welcomes foreign investment. As the Australian 
Government's investment promotion agency, Austrade works to inform investors about growth 
opportunities in five a reas, jointly agreed by Australian and State and Territory Governments: 
agribusiness and food; major infrastructure; tourism infrastructure; resources and energy; and 
advanced manufacturing, services and technology. These priority areas are publicly availa ble 
on the ‘Invest in Australia’ section of Austrade’s website: www.austrade.gov.au/International/ 
Invest/Opportunities . 
 
53. If not, please state the reasons one by one.  
 
RESPONSE: The Australian Government welcomes foreign investment. As the Australian 
Government's investment promotion agency, Austrade works to inform investors about growth 
opportunities in five areas, jointly agreed by Australian and State and Territory G overnments: 
agribusiness and food; major infrastructure; tourism infrastructure; resources and energy; and 
advanced manufacturing, services and technology. These priority areas are publicly available 
on the ‘Invest in Australia’ section of Austrade’s websi te: www.austrade.gov.au/International/ 
Invest/Opportunities . 
 
Page 21, 3.9 Trade and Investment Promotion  
Question 54  
54. Please briefly introduce Australia’s foreign investment l aws and policies, explain the main 
foreign investment management system adopted and the policy documents on which it is based, 
and suggest the open access to relevant documents. Please specify the policies and measures 
Australia has adopted during the revi ew period to support and promote foreign direct 
investment.  
 
RESPONSE: Under Australia’s foreign investment framework, foreign investment applications 
are considered on a case -by-case basis and assessed against the national interest. For more 
information o n Australia’s foreign investment policy, please see the policy document available 
on the FIRB website: https://firb.gov.au/guidance -resources/policy -documents .  
 
Australia’s foreign  investment policy is clearly defined in legislation. These documents are 
provided below for your convenience:  
 
• Foreign Acquisitions and Takeovers Act 1979 [Link to 
https://www.legislation. gov.au/Series/C2004A01402 ]  
• Foreign Acquisitions and Takeovers Regulation 2015 [Link to 
https://www.legislation.gov.au/Details/F2019C00072 ] 
• Foreign Acquisitions and Takeovers Fees Imposition Regulation 2015 [Link to 
https://www.legislation.gov.au/Details/F2017C00518 ] 
In recent years, the Government has undertaken a range of ini tiatives aimed at facilitating 
foreign investment. These include introducing measures to simplify and clarify policy definitions, 
and to increase transparency over foreign investment holdings. This is in addition to frequent WT/TPR/M/396/Add.1  
 
- 42 - 
 
  stakeholder engagement, IT syst ems upgrades, and the introduction of a foreign investment 
enquiries hotline.  
 
More specifically, the Government has reduced the requirement for investors to seek multiple 
approvals for similar low risk transactions by:  
• allowing developers to re -sell to f oreign persons ‘as new’ off -the-plan dwellings that 
failed to settle, and therefore may be considered ‘established’;  
• introducing an exemption certificate so that only one approval is required for 
individuals considering a number of residential properties w ith the intention to 
purchase only one;  
• changing fees to improve transparency and consistency, reduce complexity and 
achieve more equitable fee outcomes across different categories of transactions; and  
• introducing a new business exemption certificate for i nterests in assets and securities 
to enable broad pre -approval for routine transactions.  
In addition to these measures, Australia continues to pursue an active free trade agreement 
and investment treaty agenda which supports and facilitates liberal capital  flows.  
 
PART III:  OTHER QUESTIONS  
China continues to express concern over Australia’s non -transparent, non -disclosed and 
discriminatory ban on the Chinese enterprises from participating in the construction of 5G networks 
in Australia and the extension of  such measures to 4G networks. China has submitted questions to 
Australia twice at the meeting of WTO Council for Trade in Goods, but Australia has failed to provide 
direct responses to the key questions. China would like to raise the following questions a nd 
appreciate straight replies from Australia:  
 
Questions 55 -59 
55. Has the Australian government formally decided to exclude the Chinese 5G equipment vendors 
from the construction of 5G networks in Australia? If so, is the decision actually based on the 
“Gove rnment Provides 5G Security Guidance to Australian Carriers” issued by the Australian 
government on 23 August 2018?  
 
56. Australia’s responses mentioned a lot of provisions of the Telecommunications Sector Security 
Reform (TSSR). However, if the decision is based on the TSSR, why was it made before 18 
September 2018 when the TSSR took effect? What on earth is the legal basis for the decision?  
 
57. Has Australia also excluded the telecommunications equipment vendors of other WTO members 
in practice?  
 
58. What are Australia's criteria for excluding telecommunications equipment vendors?  
 
59. According to 3GPP, an international 5G -standardization body, the access and core networks of 
any mobile telecommunication system have clear boundaries and can evolve separately, 
regardless of the deployment modes of CU and DU. According to 3GPP, CU and DU are only 
parts of the access network and will not affect the security of the core network. Please explain 
upon which standard set by which standardization body that A ustralia’s view that “under 5G 
networks, the distinction between the core and the edge will disappear over time” based.  
 
RESPONSE TO QUESTIONS 55 -59: Australia has previously substantively responded to the 
issues raised in questions 38 & 55 -59 in the conte xt of questions raised by China in the WTO 
Council for Trade in Goods. Material relating to the Telecommunications Sector Security Reforms 
(TSSR) has been promptly published on official Australian Government websites including:  
 
• The current version of the Act, available at:  
https://www.legislation.gov.au/Details/C2019C00104  
• The amending legislation, available at: 
https://www. legislation.gov.au/Details/C2018C00385  
• Supporting material, including explanatory memoranda, available at:  
https://www.aph.gov.au/Parliame ntary_Business/Bills_Legislation/Bills_Search_Result
s/Result?bId=s1051  
• The 23 August 2018 joint media release by the then acting Minister for Home Affairs, 
the Hon Scott Morrison MP, and the then Minister for Communications and the Arts, 
Senator the Hon Mi tch Fifield, available at:  WT/TPR/M/396/Add.1  
 
- 43 - 
 
  https://webarchive.nla.gov.au/awa /20190509031627/https://www.minister.communic
ations.gov.au/minister/mitch -fifield/news/government -provides -5g-security -guidance -
australian -carriers  
• A range of guidance material is available on the website of the Australian 
Government’s Critical Infrastruct ure Centre at: https://cicentre.gov.au/tss/resources . 
 
Retrospective application of Customs Amendment (Anti -dumping Measures) Act 2017  
According to the anti -dumping announcements No. 2017/139, No. 2017/ 150, and No. 2017/151 
issued on 19 October 2017, the Customs Amendment (Anti -dumping Measures) Act 2017 has been 
voted through by both the Upper and Lower Houses of Australia and approved by the Royalty on 30 
October 30 2017. The Amendment revised the prov isions on the determination of export prices in 
anti-dumping reviews in Chapter 5, Part XVB of the Customs Act 1901. According to Article 4 of the 
Amendment, it applies to “current reviews”, namely, all review cases initiated in accordance with 
provisions in Chapter 5 before Article 4 is about to enter into force, but a final decision has not yet 
to be made under Subsection 269ZDB (1).  
 
However, according to Subsection 269 (3) of the Customs Act 1901 and Australia’s policy practices, 
if an export enterprise  does not export the products involved in such cases to Australia in the course 
of review, the export price shall be equal to the normal value determined in the review investigation. 
Australia has consistently adopted this policy in previous review investi gations.  
 
But under the aforementioned Amendment, when an export enterprise does not export the products 
involved in such cases to Australia, the investigating authority has the right to , consider products 
involved in such cases have been exported to Aust ralia in accordance with Subsections 269TAB (2A) 
and 269TAB (2B).  
 
On 13 September 2017, the Australian Government expressed its intention to amend the Customs 
Act 1901 by proposing an amendment to the Parliament. However, the filing time of all the 
aforementioned review cases was nearly four months earlier than the Australian Government’s 
announcement of its intention to amend the Customs Act 1901.  
 
In accordance with Article XXIII: 1 (b) of the General Agreement on Tariffs and Trade 1994 (GATT), 
Australia, as a WTO member, shall not deprive or impair the legitimate anticipated interest of other 
member states formed under Australia’s anti -dumping rules and practices.  
 
China believes that the aforementioned review cases should not be considered to be initiated before 
the Amendment is about to come into effect, and that such review cases involving the export of steel 
products from China do not conform to Article 4 of the Amendment, thus the Amendment should 
not apply to these cases.  
 
Article 4 of the Amendment stipulates the scope of application as:  
 
(a) Review investigations initiated or filed under Chapter 5, Part XVB of the Customs Act 1901 
when and after this Amendment comes into effect;  
 
(b) Review investigations that have been init iated just before the Amendment takes effect, but a 
final decision is not yet to be made in accordance with Subsection 269ZDB (1) of the Act;  
 
(c) Review investigations have been submitted or filed prior to the entry into force of this 
Amendment but have n ot yet been published under Article 269ZC (4), (5) or (6) of the Act.  
Obviously, as for the ongoing review investigations, the aforementioned Amendment applies only to 
the review initiated before it is about to come into effect. China believes that the ter m “about to 
come into effect” should be interpreted as it only applies to review cases after the Australian 
Government announced its intention to amend Customs Act 1901, that is, those filed after the 
Amendment to the Customs Act 1901 was submitted to Parl iament on September 13, 2017.  
 
The Amendment’s application scope is limited to review cases initiated immediately before the 
Amendment comes into force, and this will avoid the negative impact caused by applying the 
Amendment retroactively. By limiting ret roactive application to review cases that apply previously 
known content of the Amendments, which has been observed, the legitimate and reasonably 
expected interests of all interested parties can be guaranteed.  
 WT/TPR/M/396/Add.1  
 
- 44 - 
 
  Questions 60 -61 
60. Please respond to the above claims of China.  
 
RESPONSE: The purpose of retrospectively applying the specific methods to applications 
lodged, or reviews being undertaken, prior to commencement was to apply the methods to all 
reviews currently on foot but not finalised. Applying the sp ecific methods to applications lodged, 
or reviews being undertaken prior to commencement of the legislation ensured the Minister was 
not required to initiate further reviews of measures to ensure the methods in the new legislation 
were applied.  
 
Affected p arties were notified of the intention to use the alternative methodologies to calculate 
their export price and were invited to make additional submissions prior to a decision being 
finalised.  
 
61. Can Australia clarify whether the Assistance and Access Bill an d related enforcement measures 
will be implemented in a reasonable, objective and fair manner? How can Australia ensure the 
Bill will not constitute unnecessary barrier to trade in services?  
 
RESPONSE: On 6 December 2018 the Telecommunications and Other Legislation Amendment 
(Assistance and Access) Bill 2018  was passed by the Parliament of the Commonwealth of 
Australia.  The Bill received Royal Assent on 8 December 2018.   The resulting legislation, titled 
the Telecommunications  and Other Legislation Amendment (Assistance and Access) Act 2018 
entered into force on 9 December 2018.  Australia’s implementation of the Act is fully consistent 
with its WTO obligations.  
  WT/TPR/M/396/Add.1  
 
- 45 - 
 
  China  follow up questions  
PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
Page 7, Para. 3  
Although the current account has been in deficit for many years, the deficit has narrowed as the 
goods balance has been in surplus since 2016/17. In 2018, Asian markets absorbed more than 84% 
of Australia's exports. Mine ral products account for nearly 60% of merchandise exports. The deficit 
in trade in services also declined due to a sustained increase in travel receipts, tourism and 
education -related exports. About 62% of Australia's imports are sourced in Asian countrie s. 
 
Questions 1 -2 
1. Please elaborate on the impact of recent natural disasters in Australia on macro economy, 
tourism, animal husbandry, mining and other key sectors.  
 
RESPONSE:  There are considerable difficulties in estimating the impacts of natural disaste rs 
on the Australian economy. Australia's environment is one marked by consistent and high 
variations in rainfall and temperature. Significant impacts on tropical areas from cyclones, and 
heavy rains and flooding from tropical monsoon and cyclonic depressi ons are commonplace 
natural phenomena. Bushfires are also a common occurrence in environments right across the 
country.  
 
The following information from the Reserve Bank of Australia covers the significant economic 
impacts of recent bushfires and droughts o n Australia.  
 
https://www.rba.gov.au/publications/smp/2020/feb/box -b-macroeconomic -effects -of-the-
drought -and-bushfires.html . 
 
2. Please elaborate on the impact of natural disasters on Australia’s imports and exports, and the 
main trading partners affected.  
 
RESPONSE: The answer to question 1 above applies here.  
 
Page 7, Para. 5  
Australia was an original contracting party to the GATT, and is a founding Member of the WTO. Its 
trade policy is anchored in a broad understanding that international trade and investment are critical 
to the economy, providing jobs and prosperity.  
 
Questions 3 -4 
3. What is Australia’s perspective concerning t he rising trade protectionism globally?  
 
RESPONSE:   Australia is committed to the ideals, institutions and practices of an open, rules -
based global system of trade and investment with the WTO at its core. International economic 
engagement through open trade and investment has long underpinned Australian p rosperity.  
 
Protectionist trade policies neither increase economic growth nor improve living standards. In 
the long -term they hurt workers, drive up prices, and remove the incentives for industries to 
innovate.  
 
Australia is concerned about the strain that  international trade tensions and rising protectionism 
are placing on the WTO and the rules -based multilateral trading system. Australia consistently 
argues strongly against the introduction of protectionist measures, including through bodies 
such as the G 20 and APEC.  
 
Australia is committed to liberalising global trade, including through strengthening the WTO and 
actively working towards its reform.  
 
4. What are Australia’s main positions and propositions in the current WTO reform?  
RESPONSE: First, Australi a is committed to working with all WTO Members to identify and 
implement reforms as necessary to ensure an effective WTO dispute settlement system . 
 WT/TPR/M/396/Add.1  
 
- 46 - 
 
  Second, we are committed to enhancing the WTO’s negotiating function. It is critical that the 
WTO rulebook be updated to ensure it keeps pace with economic and technological change. 
Australia actively participates in all the Joint Statement Initiatives, and has helped drive efforts 
on domestic services regulation and e -commerce in particular. We are also active ly engaged in 
obtaining a result on fisheries subsidy reform that will genuinely improve the sustainability of 
global fisheries. As coordinator of the Cairns Group we are working to reset the global 
discussions on trade distorting agricultural domestic sup port. This work reflects our concern 
about the increase in domestic support entitlements for agriculture that on current projections 
could reach two trillion U.S. dollars by 2030.  
 
Third, Australia is seeking to improve the way the WTO functions by enhanc ing the WTO’s 
transparency and notification function.  
 
Finally, Australia is committed to ensuring that the issue of development is adequately 
addressed in current and future negotiations of new rules, including by finding pragmatic ways 
to ensure that WTO  Members take on commitments commensurate with their economic 
maturity.  
 
Page 8, Para. 4  
Proposed investments (above certain thresholds) are screened on a case -by-case basis by the 
Foreign Investments Review Board to ensure that the investments are consistent with domestic 
requirements and in the national interest.  
 
Question 5  
5. When foreign investments are screened by Australia, what are the differences between foreign 
government investors and foreign private investors in terms of the scopes, contents  and 
procedures of screening?  
 
RESPONSE:  Australia has previously explained the position regarding foreign government 
investors in its responses to Questions 7 and 9 from China as set out in our ‘Response to 
Written Questions’ submitted to the WTO on 4 Mar ch 2020.  
 
Page 9, Para. 7  
Nearly all trade transactions are processed through the single window Integrated Cargo System. 
Since 2016, an Australian Trusted Trader (ATT) programme has been implemented, with an 
increasing number of participants.  
 
Question 6  
6. Please elaborate on the operation of the “single window Integrated Cargo System”.  
 
RESPONSE:  Australia maintains a customs single window, the Integrated Cargo System 
(ICS), which provides a secure digital interface between industry and government. The ICS 
processes import and export documentation and is used by the Australian Border Force (ABF), 
Australia’s customs agency, and the Department of Agriculture, Water and the Environment, 
Australia’s biosecurity and quarantine agency. Customs duties and fees are  collected through 
the ICS, as well as Goods and Services Tax and other indirect taxes on behalf of the Australian 
Taxation Office.  
 
Additional information can be found at: https://www.abf.gov.au/help -and-support/ics/ 
integrated -cargo -system -(ics)/resources -and-guides . 
 
Page 9, Para. 9  
Australia's system of indirect  taxation includes a general Goods and Services Tax (GST) of 10%, a 
luxury car tax, a wine equalization tax, and excise duties on alcoholic beverages, tobacco and 
tobacco products, and fuel and petroleum products.  
 
Question 7  
7. Among the indirect taxes in Au stralia, what are the consumption taxes with regulatory 
functions that are levied on specific goods and services? What are the specific scopes, collection 
links and rates? Is there any need to solve the problem of double taxation when taxable 
consumer good s are used in the continuous production of taxable consumer goods? If yes, how WT/TPR/M/396/Add.1  
 
- 47 - 
 
  to solve this problem? What are the supporting systems and measures to strengthen the 
management of consumption tax collection and maintain the tax base?  
 
RESPONSE:  For general information on GST and excise see: https://www.ato.gov.au/AusGST 
and https://www.ato.gov.au/Business/Excise -and-excise -equivalent -goods/ . 
 
Generally, businesses  and other organisations registered for GST will:  
• include GST in the price they charge for their goods and services; and  
• claim credits for the GST included in the price of goods and services they buy for their 
business.  
 
The cascade of invoice then cre dit means that there is no significant issue with double taxation . 
 
There are some special rules that apply in specific circumstances to allow for an imputed credit, 
account for sales that may include wholesale sales tax (prior to GST), and for certain imp orted 
goods.  
 
An important recent initiative was the imposition of GST on low value imported goods. See: 
https://www.ato.gov.au/Business/International -tax-for-business/GST -on-low-value -impor ted-
goods/Information -for-consumers/#HowtostopbeingchargedGSTtwice .  
 
Page 9, Para. 9  
A number of changes to the GST regime took place in the period under review, including its extension 
to digital products and services supplied cross -border to consumers i n Australia.  
 
Questions 8 -9 
8. Please provide further details regarding the changes to the GST regime. What changes have 
been made to the goods and service taxes applied to cross -border transactions among 
enterprises?  
 
RESPONSE:  Australia reformed the GST rul es applying to cross -border supplies between 
businesses on 1 October 2016. These changes align with the OECD International VAT/GST 
Guidelines and in summary:  
• amended the test for ‘carrying on an enterprise in Australia’  
• limited the cases where a non -resident entity must pay GST on supplies of things done in 
Australia  
• made sure there is no GST liability for certain supplies made between non -residents  
• extended the GST -free (zero rate) rules for certain supplies made to non -residents  
• moved liability,  in some circumstances, from overseas businesses to the Australian -based 
business recipients that are already registered for GST through a reverse charge.  
 
9. Please provide further information regarding the zero tax rate policy of goods and service 
exports during the review period and the dynamic adjustments made during this period.  
 
RESPONSE:  There have been no recent GST changes to Australia’s zero rate tax for exports of 
goods and services.  
 
Exports of goods from Australia are generally GST -free if they are exported from Australia 
before or within 60 days of the first of the following two events:  
 
• the supplier receives any payment for the goods  
• the supplier issues an invoice for the goods.  
Exports, such as services, various rights, financial s upplies and other professional services can 
have specific rules to determine when they are GST -free or if they are excluded from being 
treated as GST -free. 
 
Page 40, Para. 3.2  
Nearly all import transactions (excluding the majority of international mail items) are processed 
electronically through the Integrated Cargo System (ICS), a single window application for 
coordinated customs and quarantine clearance.  
 
 WT/TPR/M/396/Add.1  
 
- 48 - 
 
  Question 10  
10. Which departments are connected to the ICS? In addition to customs  and quarantine clearance, 
what other functions does the ICS have? What is the utilization rate of the functions of the ICS?  
What is Australia’s vision for the construction of a single window by adopting the latest 
technological applications and digital to ols? 
 
RESPONSE:  "Which departments are connected to the ICS?  
 
The Australian Border Force and the Department of Agriculture, Water Resources and the 
Environment work directly in the ICS to clear cargo.  A number of other agencies including the 
Australian T axation Office, the Department of Industry, Science, Energy and Resources and the 
Australian Bureau of Statistics provide information into the ICS or receive reports from the ICS.  
 
In addition to customs and quarantine clearance, what other functions does the ICS have?  
 
• Compliance with permit requirements for imports and exports  
• Trade statistical data  
• Collection of indirect tax revenue  
 
What is the utilization rate of the functions of the ICS?  
 
Statistics on the utilisation of ICS reporting compared to manual import/export declarations are 
not available. The vast majority of import/export transactions are completed electronically 
through the ICS. It is mandatory to use the ICS for reporting the arrival of air and sea cargo.  
 
What is Australia ’s vision for the construction of a single window by adopting the latest 
technological applications and digital tools?  
 
Australia has a customs single window for the processing of imports and exports, the Integrated 
Cargo System. As part of Australia’s cus toms and border modernisation agenda, Australia is 
considering how best to modernise end -to-end cross -border trade. Considerations include 
leveraging contemporary technology and business practices, connectivity between current and 
future capabilities and a  flexible and scalable architecture.  
 
Page 47, Para. 3.14  
In this paragraph, the report indicates that among the products that do not meet the conditions to 
qualify for an order on tariff concessions include, textiles, clothing and footwear, certain motor 
vehicles and parts, jewe llery and furniture, as local industry producing these goods.  
 
Question 11  
11. What conditions are sufficient to constitute an order on tariff concessions and what criteria are 
used to determine such conditions?  
 
RESPONSE:  To apply for a tariff reduction through a Tariff Concession Order (TCO), an importer 
must lodge the approved form to the Australian Border Force (ABF) and provide reasonable 
grounds to assert that an Australian manufacturer of substitutable goods does not exist. The 
ABF has 150 days after receiving a valid application for a TCO to decide whether that TCO 
should be granted. If a TCO application is not decided within that 150 -day period, the TCO 
application will be rejected.  
 
If a TCO covering the goods being imported al ready exists, the importer will show on an import 
declaration the current TCO that applies to the goods being imported or a by -law or allocated 
determination. The goods being imported must precisely meet the description given in the TCO.  
Additional docume nts are not required to be lodged at the time of importation; however pre 
and post entry audits may be conducted.  
 
Page 49, Para. 3.33  
Certain changes in the legislation related to the GST took place since the last Review. Effective 1 
October 2016, the application of GST in cross -border transactions between businesses was modified 
to ensure that non -resident suppliers are not drawn unnece ssarily into Australia's GST system, thus 
reducing the compliance costs for some non -resident suppliers. The purchaser, rather than the seller, WT/TPR/M/396/Add.1  
 
- 49 - 
 
  was made responsible ("reverse charge") for the remittance of GST on taxable supplies of gold, 
silver and platin um from 1 April 2017.  
 
Question 12  
12. The reverse charge mechanism is generally applicable to the B2B mode. If a domestic buyer is 
not a VAT taxpayer, how will Australia bring the buyer under taxation management?  
 
RESPONSE:  The reverse charge mechanism for precious metals only applies to B2B 
transactions, requiring the purchaser to account for the GST on the transaction rather than the 
seller who may be at risk of becoming a “missing trader”.  Where a person who is not registered 
purchases good s containing precious metals, GST will apply to the purchase and is required to 
be remitted by the seller. If the unregistered person subsequently sells the precious metal to a 
refiner or other registered entity, that purchasing entity can no longer claim an imputed input 
tax credit under the second hand goods provisions so the opportunities for the parties involved 
to gain a benefit have been removed.  
 
Page 49, Para. 3.33  
On 1 July 2017, the scope of the GST was extended to digital products and services, s uch as 
architectural and legal services, supplied cross -border to consumers in Australia. Overseas platforms 
allowing Australian consumers to download films, music, apps, games, e -books, etc. are thus now 
required to register for payment of GST with the Au stralian Taxation Office (ATO), and collect, report 
and remit the GST on all such sales to Australian customers. On the same date, the GST treatment 
of digital currencies (e.g. Bitcoin) also became aligned with the GST treatment of money. On 28 
March 2018,  GST legislation was amended to require purchasers of new residential premises and 
potential residential land to withhold an amount of the contract price and remit it to the ATO (rather 
than entrusting it to property developers) and on 1 July 2018, a tax l oophole was closed on imports 
of low -value goods by Australian consumers.  
 
Questions 13 -15 
13. The simple taxation registration for non -resident businesses and the taxation of digital platforms 
have been implemented in Australia quite long time. What experienc e do you have? Do the 
digital platforms have any objections to the full liability system? What difficulties has Australia 
encountered during the implementation? How to solve these difficulties?  
 
RESPONSE: Non-resident digital platforms that make supplies o f imported digital products or 
low value goods have the option to choose registration in the simplified or standard full liability 
system. The choices that they have made have been guided by their own commercial 
considerations.  
 
The Australian Taxation Off ice (ATO) engaged early with platforms and other suppliers to 
understand their operation and concerns. This led to the development of comprehensive 
guidance that addressed issues and has ensured that suppliers required to collect GST 
understand their oblig ations. Key guidance provided to industry on implementation can be found 
here:  
 
• https://www.ato.gov.au/Business/International -tax-for-business/GST -on-imported -services -
and-digital -products/   
• GSTR 2017/1 Goods and services tax: making cross -border supplies to Australian consumers.  
• Law Companion Ruling LCR 2018/2 GST on supplies made through electronic distribution 
platforms.  
 
14. What is the information that needs to be exchanged with the customs when low -value products 
are imported? How to achieve effective connection between tax and customs information?  
 
RESPONSE: The ATO has responsibility for collecting GST collected on low value  imported 
goods and enforcement. It is important to note that the Australian law treats this as a GST tax 
issue and not a customs import issue. This means that low value imported goods are goods at 
the point of supply (when they are sold) and not at the po int of importation.  
 
Online businesses under the GST law (not the customs law) do not need to provide a tax invoice 
but must provide a receipt to help prevent double taxation (that is tax applying to both the 
supply and the import events).  WT/TPR/M/396/Add.1  
 
- 50 - 
 
  Under the GST la w (not the customs law) businesses liable for GST on these goods must ensure 
the relevant tax information is included on customs documents, generally for imports through 
the cargo/express carrier systems.  
 
15. How to define the low -value goods? How to define d igital products and services? Are all things 
other than goods defined as digital goods and services?  
 
RESPONSE:  In summary, low value goods are goods (except for tobacco products or alcoholic 
beverages) that have a customs value of AUD 1,000 or less when the price is first agreed with 
the customer. If multiple low value goods are sold together (for example, two goods that each 
have a customs value of AUD 600), the default rule is that businesses should charge GST. 
However, they can apply an exception if it is clear that the goods will be shipped in one 
consignment and taxed at the border.  
 
Tobacco products and alcoholic beverages are excluded because GST always applies at the 
border when these items are imported (regardless of their value). For a typical transaction 
where goods are sold in Australian dollars, the customs value is the price the goods are sold 
for, minus any amount included for freight and insurance from the place of export to Australia. 
Although these amounts are taken out when dete rmining whether the goods are low value 
goods, charges for freight and insurance will typically form part of the price when calculating 
the GST on the sale. If businesses sell goods in a currency other than Australian dollars they 
first need to convert the  amount into Australian dollars to determine the customs value . 
 
Imported services and digital products are known as inbound intangible consumer supplies in 
the GST law. This term is used in a number of our guidance and ruling documents.  
 
For more informat ion see: https://www.ato.gov.au/AusGST .  
 
PART II:  QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
Page 4, Para 2.5  
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.  
 
Question 16  
16. Please list the specific steps taken by the Australian Government to enhance the development 
of digital economy.  
 
RESPONSE:  Australia has de veloped a range of initiatives and approaches to adapt to the needs 
of the digital economy. For instance:  
 
• the Australian  Government has committed to implementing a single window trading system 
with particular regard to exporting digital goods and servic es through its obligations under the 
Trade Facilitation Agreement;  
• Australia’s Tech Future, Australia’s digital economy strategy details how Australia can 
maximise the opportunities of technological change by focusing on: developing Australia’s 
digital s kills, how Government can better deliver digital services, building infrastructure and 
providing secure access to high -quality data and maintaining our cyber security and reviewing 
our regulatory systems;  
• the Digital Transformation Strategy complements A ustralia’s Tech Future by identifying how 
to harness digital technology and data to deliver more responsive policy, less red tape and 
better services;  
• the International Cyber Engagement Strategy, which is aimed at strengthening cross -border 
cooperation i n developing regional digital connectivity and cyber security capabilities, and 
shaping an enabling environment for digital trade; and  
• the Cyber Security Strategy, aimed at addressing cyber security and cyber resilience issues 
in the rapidly evolving cyb er threat environment.  
The strategy can be viewed at www.industry.gov.au/australiastechfuture .  
 
 
 WT/TPR/M/396/Add.1  
 
- 51 - 
 
  Page 10 Para 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 issu es including cooperation, capacity -building and transparency.  
 
Question 17  
17. Are there any regulations concerning Cybersecurity in Australia? If any, what do they focus on?  
 
RESPONSE : At the Commonwealth level, legislation relating to cybersecurity includes:  
 
• Corporations Act 2001 (Cth) – a failure by a company to prevent, mitigate, manage or respond 
to a cyber incident may result in breaches of provisions of this Act. The Corporations Act imposes 
duties on directors to exercise powers and duties with the c are and diligence that reasonable 
person would.  
• Crimes Act 1914 (Cth) – prescribes the sentences applicable to breaches of Commonwealth 
legislation, including the Criminal Code Act 1995 (Cth).  
• Privacy Act 1998 (Cth) – in addition to provisions regardin g how regulated entities must handle 
and use personal information, this Act includes the mandatory Notifiable Data Breaches Scheme 
which requires regulated entities to, as soon as practicable, provide notice to the Office of the 
Australian Information Comm issioner and affected individuals, of an ‘eligible data breach’ where 
there are reasonable grounds to believe that an ‘eligible data breach’ has occurred.  
• Prudential Standard CPS 234 – Information Security – aims to ensure that regulated entities 
in the  banking and finance sector take measures to be resilient against information security 
incidents by maintaining an information security capability commensurate with information 
security vulnerabilities and threats.  A key objective is to minimise the likel ihood and impact of 
information security incidents on the confidentiality, integrity or availability of information 
assets, including information assets managed by related parties to third parties.  
• Security of Critical Infrastructure Act 2018 (Cth) – the Act establishes a Register of Critical 
Infrastructure Assets, empowers the Secretary of the Department of Home Affairs with an 
information -gathering power (whereby certain information can be requested of direct interest 
holders, responsible entities and operators of critical infrastructure assets) and authorises the 
Minister to issue directions to an owner or operator of critical infrastructure assets to mitigate 
national security risks.  
• Telecommunications (Interception and Access) Act 1979 (Cth) – protects privacy by 
prohibiting interception of communications and access to stored communications.  
• Telecommunications Act 1997 (Cth) – protects privacy by prohibiting telecommunications 
service providers from disclosing information about their customers’ us e of telecommunications 
services.  
• Telecommunications and Other Legislation (Assistance and Access) Act 2018 – the Act 
provides for the facilitation of covert access to data for the purposes of disrupting and 
investigating criminal activity, as well as establishing a framework to facilitate lawful assistance 
from communications providers.  
 
At the Commonwealth level, applicable laws criminalising certain activity related to cyber 
security (universal for Commonwealth and States and Territories) includes:  
 
• Unauthorised access (s 478.1 Criminal Code Act 1995 (Cth)).  
• Denial of service attacks (s 477.3 Criminal Code Act 1995 (Cth)).  
• Phishing (s 134.2(1), 135.1 (1), (3) and (5) Criminal Code Act 1995 (Cth)).  
• Infection of IT systems with malware (includin g ransomware, spyware, worms, trojans and 
viruses) (s 478.2 Criminal Code Act 1995 (Cth)).  
• Possession or use of hardware, software or other tools used to commit cybercrime (s 478.3 
Criminal Code Act 1995 (Cth)).  
• Identity threat or identity fraud (Divis ion 372 Criminal Code Act 1995 (Cth)).  
• Electronic theft (eg beach of confidence by a current or former employee or criminal copyright 
infringement) (s 478.1 Criminal Code Act 1995 (Cth)).  
• Dishonesty with respect to carriage services and interference with telecommunications (Part 
10.6 of the Criminal Code Act 1995 (Cth)).  
 
 
 WT/TPR/M/396/Add.1  
 
- 52 - 
 
  Page 16, Para. 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 p rivate 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 includes an Investor State Dispute 
Settlement mechanism to promote investor confidence.  
 
Questions 18 -19 
18. Does Australia have any plan or specific measures to increase the predictability of the screening 
of investments by Chinese state -owned enterprises which may provide stable expectations and 
good investment environment for Chinese state -owned enterprises to invest in Australia?  
 
RESPONSE: Australia has previously explained the position regarding foreign  government 
investors in its responses to Questions 7 and 9 from China as set out in our ‘Response to Written 
Questions’ submitted to the WTO on 4 March 2020.  
 
19. Please explain the considerations regarding differentiated investment screening between state -
owned and private enterprises.  
 
RESPONSE: Australia has previously explained the position regarding foreign government 
investors in its responses to Questions 7 and 9 from China as set out in our ‘Response to Written 
Questions’ submitted to the WTO on 4 Marc h 2020.  
 
PART III:  OTHER QUESTIONS  
 
Questions regarding the PMS practices in Australia’s anti -dumping investigations  
 
Article 269TAC of the Customs Act 1901 authorizes the Australian anti -dumping investigation 
authority to determine that “the domestic sal es of exporting countries do not reflect fair price under 
normal market conditions”, instead of using domestic sales price of the exporting countries, the 
authority can use structural normal value. According to the Australia’s Anti -dumping Manual, the 
investigating authorities should consider two factors when identifying “special market situations”: 
(1) whether the prices are artificially low; (2) whether there are other situations in which sales price 
is not suitable to be the basis for determining normal value. In practice, Australia has identified 
government actions such as the release of economic plans by the government as “special market 
situations” in a number of investigations.  
 
In addition, China also notes that on December 4, 2019, the Dispute Settl ement Body of the WTO 
circulated a Panel report on Indonesian v. Australia Anti -Dumping Measures on A4 Paper (DS529). 
The report ruled that Australia’s anti -dumping measures against some Indonesian A4 paper 
exporters violated the provisions of Articles 2.2  and 2.2.1.1 of the Anti -Dumping Agreement, and 
recommended that Australia correct the illegal measures as soon as possible.  
 
Questions 20 -22 
20. Australia’s Anti -dumping Manual requires investigating authorities to focus on the basis for 
determining “whether the prices are artificially low”. Are there any quantitative criteria? If yes, 
please specify.  
 
RESPONSE: Australia notes that some of the extracts and quotations posed by China above do 
not accurately reflect the text of the Customs Act 1901 (Cth) or the Dumping and Subsidy 
Manual. For clarity, Australia notes that:  
 
- S269TAC provides that where the Minister is satisfied that “because the situation in the market 
of the country of export is such that sales in the market are not suitable for use in dete rmining 
a price”, then the normal value may be constructed.  
- The Dumping and Subsidy Manual does not make reference to “special market conditions”. In 
considering “market situation”, (p 37), the Dumping and Subsidy Manual states that the 
Commission may ha ve regard to factors such as whether prices are artificially low and whether 
there are other conditions in the market which render sales not suitable for use in determining 
normal value.  
 WT/TPR/M/396/Add.1  
 
- 53 - 
 
  Further, we note that among the findings of the Panel in Australia – Anti-Dumping Measures on 
Paper, the Panel found that Indonesia had not demonstrated that Australia acted inconsistently 
with Article 2.2 of the Anti -Dumping Agreement in finding a particular market situation in the 
Indonesian A4 copy paper market.  
 
For cl arity, Australia’s Anti -Dumping Manual provides that the Commission may have regard to 
factors such as: whether the prices are artificially low, or; whether there are other conditions 
in the market which render sales not suitable for use in determining nor mal value. Chapter 7 of 
the Dumping and Subsidy Manual provides information about the factors that may be considered 
in assessing whether prices are artificially low due to a situation in the market of the country of 
export. This is an assessment that cons iders all relevant information (quantitative and 
qualitative) provided by interested parties, including exporters and overseas governments, and 
examined on a case -by-case basis.  
 
21. Article 2.2 of the Anti -Dumping Agreement states that “appropriate comparison s of such sales 
are not allowed… or determined by comparison of production cost in the country of origin plus 
a reasonable amount for administrative, sales, general costs and profits.” Please explain on 
what basis the Australian investigating authorities h ave determined that the domestic sales 
price cannot be properly compared.  
 
RESPONSE:  Article 2.2 states (in relevant part) that “…when, because of the particular market 
situation…such sales do not permit a proper comparison” an investigating authority has recourse 
to calculate the normal value according to one of the two alternative bases. The DS529 Panel 
has clarified that where an investigating authority identifies a particular market situation, it 
must examine the relative effect of the particular market  situation on domestic and export 
prices in order to assess whether those sales can be properly compared and provide a reasoned 
and adequate explanation as to its decision.  
 
The Commission considers each case on its facts and makes recommendations accordin gly. In 
cases where it has been determined that normal values cannot be based on domestic sales that 
would otherwise be relevant for ascertaining the normal value due to a situation in the market 
of the country of export, the basis for that determination i s set out in the Final Report for the 
case. These Final Reports are available on the electronic public register of past cases, available 
at: https://www.industry.gov.au/regulations -and-standards/anti -dumping -and-countervailing -
system/anti -dumping -commi ssion-archive -cases .  
 
22. How does Australia view and enforce this ruling? Will Australia review the PMS positive rulings 
made in the past? Will the investigation methods for “production cost assumption” be adjusted 
in future anti -dumping investigations?  
 
RESPONSE: As Members may be aware, the Panel’s findings in Australia – Anti-Dumping 
Measures on Paper (DS529) relate to anti -dumping measures on two specific Indonesian 
exporters of A4 copy paper to Australia. On 12 March 2020, the Commissioner of the Anti -
Dumping Commission initiated a review of the anti -dumping measures on A4 copy paper 
exported to Australia from Indonesia by these two exporters. The review will consider the 
findings of the Panel. Further information about the review is available at : 
https://www.industry.gov.au/regulations -and-standards/anti -dumping -and-countervailing -
system/anti -dumping -commis sion-current -cases/547 .  
 
As Indonesia’s complaint concerned anti -dumping measures on two Indonesian exporters on an 
“as applied” basis, Australia’s compliance obligation is to bring those specific measures into 
conformity with the findings and recommendat ions as adopted by the DSB. Australia’s anti -
dumping legislation seeks to implement Australia’s obligations under the Anti -Dumping 
Agreement and is therefore to be interpreted and applied so that it is in conformity and not in 
conflict with the Panel’s fin dings. For future cases, Australia will actively consider whether the 
effect of the market situation is such that domestic and export prices cannot be properly 
compared, in line with the DS529 Panel’s reasoning.  
 
Questions 23 -24 
23. Does Australia have specifi c subsidy policies called “amber box”, non -specific “amber box” or 
“blue box” for agricultural products such as cotton, grain or livestock? If yes, please specify the 
agricultural products covered and detailed measures in this regard.  WT/TPR/M/396/Add.1  
 
- 54 - 
 
  RESPONSE:   Australia remains compliant with its domestic support notifications as per the 
requirements under the Committee on Agriculture. Information on Australia’s specific, WTO 
compliant, subsidies can be found on the Agriculture Information Management System at:  
 
https://agims.wto.org/en/SearchNotificationIssue/SearchResults . 
 
24. Does Australia have any restrictions on market access for foreign investment in civil aviation 
transport services such as public transport aviation, general aviation, air traffic control, aircraft 
maintenance, aviation ground services, passenger and freight forwarding, aviation fuel, and 
computer reservation systems? Please brief on the legal basis for industry admini stration and 
market access administration on foreign investment in the above sectors.  
 
RESPONSE:  Australia has one of the most open and competitive domestic aviation markets in 
the world. At the Commonwealth economic regulatory level, Australian based airl ines are free 
to operate any domestic service they deem commercially viable, subject only to holding the 
necessary operational safety and security approvals.  
 
Australian Government policy allows any foreign investor (airline or other) to own up to 100 per 
cent of an Australian domestic airline, subject to approval by the Foreign Investment Review 
Board. The restrictions on ownership of Australian international airlines protect their designation 
in accordance with the ownership and control requirements in ma ny of our bilateral agreements.  
 
While foreign investment in Australian airports is welcomed and recognised as bringing broad 
benefits to the Australian economy and people, the Australian Government recognises there is 
considerable national and public inte rest in maintaining majority Australian ownership and 
control of nationally significant transport infrastructure such as airports. The existing restrictions 
ensure no area of national and public interest can be compromised by commercial 
considerations.  
 
The cost of regional air services reflects the nature of these services, with long thin routes often 
increasing the cost per kilometre of travel. There is no economic regulation of these services at 
the federal level, meaning any domestic airline (including foreign owned airlines) can compete 
on these routes. Some state governments restrict competition and/or provide subsidies to help 
ensure the viability of routes that would otherwise be uncommercial and not receive any 
services.  
 
  WT/TPR/M/396/Add.1  
 
- 55 - 
 
  Chinese Taipei  
PART I: REGARDING THE SECRETARIAT REPORT (WT/TPR/S/396)  
 
II. TRADE and investment regimes  
2.2 Trade policy  formulation and objectives  
 
Page 26 (Para 2 .8) 
Trade policy in Australia is founded on a broad understanding that international trade and investment 
is critical to the economy, providing jobs and prosperity. Emphasis has been given to trade 
agreements that can improve market access across all areas of trade, goods, services and 
investment, and help to maintain and stimulate the competitivene ss of Australian firms. The 
Government also places importance on an open international economy to guard against 
protectionism, and promotes international rules that counter unfair trade actions and help resolve 
disputes. Furthermore, the new Economic and C ommercial Diplomacy Agenda, launched in 
November 2018, promotes an open global economy, supporting businesses seeking commercial 
opportunities, advancing Australia's political and economic interests, and strengthening their 
international competitiveness. T he Agenda focuses on five key pillars of activity: promoting 
investment; addressing non -tariff barriers; supporting and facilitating business; advocating for the 
global rules -based trade system; and increasing science, technology and innovation links.  
 
Questions 1 -2 
1. How does Australia address foreign trading partner’s non -tariff barriers? Is there a regular 
bilateral communication platform to exchange views on issues of concern or to eliminate 
barriers? Does Australia have specific and effective tools or measures to request counterparties 
to remove non -tariff barriers?  
 
RESPONSE: In response to ongoing business concerns, the 2017 Foreign Policy White Paper 
foreshadowed a new Australian Government strategy on non -tariff barriers. This resulted in the 
Decemb er 2018 Non -Tariff Barriers Action Plan, developed in consultation with Australian 
industry.  
 
The Action Plan commits to more comprehensive inter -agency coordination and tracking of 
NTBs, better access for business to government and building capability wi thin government and 
Australian industry to tackle NTBs hampering Australian exports in foreign markets.  
 
As part of the NTB Action Plan the Australian Government has set up a website for Australian 
exporters to report trade barriers. The website provides an official channel for industry to report 
their NTBs to government. Depending on the industry sector affected, and the nature of the 
NTB reported, the Australian Government may seek a resolution to the reported NTB. The 
website is not used as a channel to  share and resolve reported NTBs with foreign governments. 
The website can be accessed here: https://tradebarriers.dfat.gov.au/ . 
 
Australia uses a number of tools to address non -tariff barriers. Options in clude:  
• directly raising our concerns with other governments  
• pressing for clarification through WTO committees  
• negotiating with other countries through established bilateral meetings.  
 
2. Please briefly describe the items/categories of non -tariff barriers that  Australia views as top 
priority for removal by other trading partners.  
 
RESPONSE: Australian exporters have identified actual or potential NTBs across more than 20 
sectors and in over 70 markets. Decisions about which NTBs are prioritised is determined in  
close consultation with industry and with relevant government departments.  
 
Page 26 (Para 2.10)  
The trade policy formulation and evaluation structure continues to be very transparent, and involves 
interactions between the executive branches of government, advisory bodies, businesses, non -
governmental organizations (NGOs), and other stakeholders. The Productivity Commission (PC) 
remains the Government's independent research and advisory body on a range of economic, social 
and environmental issues . Its advice to the Government, together with the information and analysis 
on which it is based, are open to public scrutiny.  WT/TPR/M/396/Add.1  
 
- 56 - 
 
  Question 3  
3. When formulating foreign trade policy, apart from collecting cross -ministerial comments and 
opinion, does Australia als o incorporate the opinions of the public and the private sector, and 
incorporate them and industry expectations into the policy making process? Could you give us 
some examples of actual cases?  
 
RESPONSE: The Australian Government conducts extensive consultations with stakeholders, 
including with businesses and civil society groups, on trade agreements.  These consultative 
processes are well -established and involve: calls for stakeholder and public submissions; 
stakeholder consultations incl uding community groups, non -government organisations, unions 
and business; day -to-day communication with interested groups by the Department of Foreign 
Affairs and Trade and other departments throughout the negotiations; and consultation with 
State and Ter ritory Governments.  There is a high -level of scrutiny of the impact of all trade 
agreements.  The Cabinet receives a Regulatory Impact Statement and a National Interest 
Analysis following the conclusion of an agreement, and public scrutiny is undertaken b y the 
Joint Standing Committee on Treaties (JSCOT) and Parliamentary discussion, prior to 
ratification.  
 
2.3.2 REGIONAL AND PREFERENTIAL AGREEMENTS  
2.3.2.1 REGIONAL TRADE AGREEMENTS (RTAS)  
Page 29 (Para 2.22)  
The CPTPP, signed by 11 countries in March 2018 , sets up a free trade area for goods and services. 
It establishes a Commission to oversee its implementation among the CPTPP parties. The CPTPP 
incorporates, by reference, the provisions of the Trans -Pacific Partnership (TPP) Agreement (signed 
but not yet  in force), except for a limited set of suspended provisions. According to the authorities, 
the current 11 parties have a shared vision of the CPTPP as a platform open to others to join if they 
meet its standards. The CPTPP ensures that the substantial mar ket access package secured in the 
original TPP is maintained, as well as its commitments on the regulation of foreign investment.  
 
Questions 4 -5 
4. Could Australia please explain in more detail the criteria for countries to join the CPTPP?  
 
RESPONSE: At its f irst Commission meeting in Tokyo in January 2019, the CPTPP Commission 
(Commission) decided on a process for allowing interested economies to negotiate their 
accession to the CPTPP.  
 
As part of this process, aspirant economies are encouraged to engage info rmally with all CPTPP 
signatories regarding their interest in joining the CPTPP prior to submitting a formal accession 
request. Once a formal accession request is submitted to the CPTPP Depositary, the 
Commission will establish a working group (Accession W orking Group) to negotiate the 
accession of the aspirant economy.  
 
The aspirant economy will then be required to:  
• demonstrate its ability to make any changes to its domestic law and regulations, in 
order to comply with the obligations of the CPTPP;  
• submit market access offers and Non -Conforming Measures that align with the 
CPTPP accession benchmarks* outlined by the Commission;  
• negotiate its market access offers via the Accession Working Group and bilaterally, 
and demonstrate how it will meet the CPT PP’s accession benchmarks.  
 
Once the aspirant economy has met these requirements, the Accession Working Group will 
submit a report to the Commission outlining the terms and conditions of their accession to the 
CPTPP. The Commission will then determine, by  consensus, whether to approve the terms and 
conditions for the aspirant economy’s accession to the Agreement.   
 
*Benchmarks outlined in the Annex on the CPTPP’s Accession Process - 
https://dfat.gov.au/trade/agreements/in -force/cptpp/news/Documents/annex -to-cptpp -
com-2019-d002.pdf . 
 
5. To the best of Australia's knowledge, apart from the 11 signatories, which other members 
have applied to join t he partnership?  
 WT/TPR/M/396/Add.1  
 
- 57 - 
 
  RESPONSE: Australia is aware of several economies that have informally expressed interest 
in joining the CPTPP. To date, none have lodged a formal accession request.  
 
2.4 INVESTMENT REGIME  
Page 33 (Para 2.38)  
However, as a result of RTA/FT A commitments, private investors from Canada, Chile, China, Japan, 
Mexico, New Zealand, Singapore, the Republic of Korea, the United States, and any country for 
which CPTPP -11 subsequently comes into force, have a higher threshold for acquisitions in non -
sensitive (AUD 1,154 million) and sensitive (AUD 266 million) businesses. Sensitive businesses 
include media, telecommunications, transport, defence and military related industries and activities, 
encryption and securities technologies and communications sy stems, the extraction of uranium or 
plutonium, and the operation of nuclear facilities.  
 
Question 6  
6. Could Australia explain in more detail the reasons for the increase in the threshold for 
acquisitions in the CPTPP and the possible impact on foreign compan ies? 
 
RESPONSE: The Australian Government welcomes foreign investment. The Australian 
Government reviews foreign investment proposals against the national interest on a case -by-
case basis. The Government works with applicants to ensure the national interes t is protected. 
However, if it is ultimately determined that a proposal is contrary to the national interest, it 
will not be approved, or conditions may be applied to safeguard the national interest.  
 
Australia has sought to liberalise trade and investment through free trade agreements (FTAs), 
some of which include commitments on higher foreign investment screening thresholds. These 
are negotiated outcomes. The higher thresholds granted in CPTPP mean that private investors 
from CPTPP countries in non-sensitive businesses are exempt from foreign investment 
screening if their investment is less than the higher screening threshold. The Foreign 
Investment Review Board website ( www.firb.gov.au ) provides detailed guidance for investors 
on the operation of the foreign investment framework.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 MEASURES DIRECTLY AFFECTING I MPORTS  
3.1.7 ANTI -DUMPING, COUNTERVAILING, AND SAFEGUARD MEASURES  
Page 56 (Para 2)  
Although the principal features of Australia's anti -dumping and countervailing system remain 
unchanged since 2015, certain legislative changes took place during the period under review. The 
Customs Amendment (Anti -dumping Measures) Act (No. 1), 2015, passed by Parliament on 13 May 
2015, introduced the possibility to submit dumping and countervailing applications by email. Other 
changes included stricter enforcement of  deadlines for submissions to conform with the standard 
investigation/inquiry period of 155 days, "cumulative assessment" of injury when two or more 
countries are subject to an investigation, confirmation that third -country sales do not need to be 
consider ed before constructing normal values, and amendments relevant to accelerated reviews.  
 
Question 7 -9 
7. In the case of small -volume exports, should the Australian anti -dumping authority refer to the 
provisions of Article 2.3 of the WTO Agreement to assess if t here are special associations or 
compensatory arrangements, instead of simply relying on export volume to determine if the 
export price is credible?  
 
RESPONSE: The export price of goods exported to Australia is determined in accordance with 
section 269TAB and other relevant provisions of Part XVB of the Customs Act 1901 . There are 
several factors that may be taken into account depending on different circumstances, including 
whether there are circumstances in which special associations or compensatory arrang ements 
between importers and exporters affect the export price of the relevant goods, consistent with 
Article 2.3 of the WTO Agreement on Implementation of Article VI of the GATT 1994 (the Anti-
Dumping Agreement). Further information about these provisions  is available in Chapter 6 of 
the Dumping and Subsidy Manual, available at https://www.industry.gov.au/sites/default 
/files/2019 -05/adc_dumping_an d_subsidy_manual.pdf . 
 
8. We understand that an application for review should be applied 12 months after the final 
determination announcement. However, applicants can submit review applications before the WT/TPR/M/396/Add.1  
 
- 58 - 
 
  final determination is announced. By doing so, regulat ions prohibiting submission of applications 
within 12 months after the final determination announcement do not apply. Is there a need to 
re-consider the timing and restrictions of review to prevent abuse of this investigation 
procedure?  
 
RESPONSE: Applicat ions for the review of measures cannot be made before the final 
determination to impose measures has been made. A review application may not be lodged 
earlier than 12 months after publication of either the notice implementing the original measures, 
or the noticed declaring the outcome of the last review. This requirement is set out in the 
application guidelines – available at https://www.industry.gov.au/sites/default/files/2019 -
05/guidelines_ -_application_for_review_or_revocation_of_measures.pdf  - and applies to all 
interested parties. This 12 month period ensures sufficient time has passed that appropriate 
data to cond uct a review of measures is more likely to be available.  
 
9. According to Article 5 of Australia’s Customs Tariff (Anti -Dumping) Regulation 2013, the 
methods of calculating interim dumping duties include: the ad valorem duty method, the fixed 
duty method, the  floor price duty method and the fixed and variable duty combination method. 
Most countries only adopt one of the methods. However, in recent years Australia has often 
simultaneously applied the floor price duty and ad valorem duty or fixed duty. Under thi s 
circumstance and when the export price decreases, the actual duty would exceed the margin of 
dumping, which is clearly beyond necessity and constitutes over -protection. Would this violate 
the WTO Anti -Dumping Agreement Article 11.1: “An anti -dumping duty  shall remain in force 
only as long as and to the extent necessary to counteract dumping which is causing injury.” 
and Article 9.3: “The amount of the anti -dumping duty shall not exceed the margin of dumping 
as established under Article 2.”  
 
RESPONSE: Australia’s anti -dumping legislation provides for four forms of dumping duty:  
• combination of fixed and variable duty method (‘combination’ duty);  
• fixed duty method;  
• floor price duty method; and  
• ad valorem duty method.  
Regardless of which form of duty is imposed, Australia’s prospective duty collection system 
provides a process for the refund of any duty paid in excess of the margin of dumping.  
 
3.2.4 EXPORT SUPPORT AND PROMOTION  
Page 63 (Para 3.70)  
The Landing Pads programme was introduced to provide a co st-effective option for market -ready 
startups and scale -ups to land and expand in major global innovation hubs. In the five landing pads 
established to date (San Francisco, Tel Aviv, Shanghai, Berlin and Singapore).  
 
10. Could the Government of Australia elabo rate on its future plans to increase establishments of 
landing pads, and whether it will establish more landing pads in Asian cities to integrate into 
local markets?  
 
RESPONSE: The Australian Government is committed to supporting Australian technology 
comp anies who are expanding into global markets through the Landing Pads program. Through 
the Landing Pads program, and through the Australian Trade and Investment Commission’s 
(Austrade) global network, Australian companies can explore new markets, develop ne w 
partners and customers in the five Landing Pad locations (SF, Shanghai, Berlin, Tel Aviv and 
Singapore) and surrounding markets. To complement the Landing Pad services, Austrade is 
continually strengthening its trade services and networks across Asia. Au strade’s global 
footprint spans 80 plus offices globally in over 40 markets. Austrade’s ability to connect 
Australian businesses to the world lies in its global network and services. Landing Pad Managers 
work with seamlessly with Austrade Business Developm ent Managers in regional markets to 
connect them to new partners. For example, a former participant at the Shanghai Landing Pad 
established an office in Hong Kong after completing the program. Austrade Hong Kong provided 
advice and introductions that facil itated this outward investment. Austrade is continually 
evolving its services to respond to feedback and needs of business.  
 WT/TPR/M/396/Add.1  
 
- 59 - 
 
  3.3 MEASURES AFFECTING PRODUCTION AND TRADE  
3.3.7 INTELLECTUAL PROPERTY RIGHTS  
3.3.7.5 INDUSTRIAL PROPERTY  
3.3.7.5.1 PATENTS  
Page 8 6 (Para 3.172)  
The Patents Act, 1990, last amended in 2018, provides protection for standard patents and 
innovation patents, with terms of 20 years (up to 25 years for eligible pharmaceuticals) and 8 years, 
respectively. Several amendments were made to the  Patents Act during the review period. The 
Intellectual Property Laws Amendment Act, 2015 (IPLA 2015) amended the Patents Act to give effect 
to Australia's obligations under the TRIPS Protocol. The amendments enable Australian medicine 
producers to apply t o the Australian Federal Court for a compulsory licence to manufacture and 
export patented pharmaceuticals to eligible importing countries. The IPLA 2015 also established a 
single trans -Tasman patent attorney regime for Australia and New Zealand, as part o f the original 
broader SEM agenda.  
 
Questions 11 -12 
11. If the Australian Federal Court makes an order requiring a compulsory license but the patentee 
is dissatisfied with the decision, what would be the remedy for this situation?  
 
RESPONSE: A patentee may seek the leave of the Federal Court to appeal the decision to 
order that a licence be granted, or the decision regarding the terms of the licence.  
 
 
12. If the patentee is dissatisfied with the remuneration determined by the Federal Court, may 
the patentee mak e an appeal only arguing the remuneration?  
 
RESPONSE: Under subsection 136J(3) of the Patents Act , remuneration is to be an amount 
agreed between the patentee and the licensee, or if agreement is not reached, an amount 
determined by the court to be adequat e remuneration, taking into account the economic value 
to the importing country of the use of the pharmaceutical product. If the court makes a 
determination, the patentee may apply to the court under paragraph 136J(4)(b) of the Patents 
Act to amend the det ermination, or may seek the leave of the court to appeal the 
determination.  
 
3.3.7.5.8 COPYRIGHT  
Page 92 (Para 3.204)  
During the review period, the Government introduced key reforms to reduce online copyright 
infringement. The Copyright Amendment (Online Infringement) Act, 2015 (CAA 2015) amended the 
Copyright Act to enable copyright owners to apply to the Federal Court of Australia for a "blocking 
injunction" - an order requiring a Carriage Service Provider (CSP) to block access to an online locat ion 
outside Australia that has a primary purpose of infringing copyright or facilitating the infringement 
of copyright. The Copyright Amendment (Online Infringement) Act 2018 (CAA 2018) strengthened 
the blocking injunction provisions, extending them to web sites which have the primary effect of 
infringing or facilitating the infringement of copyright, making injunctions available against search 
engine providers, introducing a rebuttable presumption that the online location is outside Australia, 
and providing  a mechanism for copyright owners and CSPs to subsequently agree to block other 
related domains. These amendments respond to specific concerns raised by copyright owners, and 
address the difficulties in taking direct enforcement action against entities ope rating outside 
Australia. Since the enactment of the CAA 2015, blocking injunctions have been granted on a number 
of occasions, including in relation to the "Pirate Bay" website.  
 
Questions 13 -14 
13. What is the effectiveness of implementation after the 2015 a nd 2018 Copyright Amendment 
(Online Infringement)? What are the right holders’ opinions on the two amendments? Have 
there been any opposition from the industry? Were there any challenges encountered in the law 
enforcement of the new act?  
 
RESPONSE: The Gov ernment measures levels of, and attitudes towards, copyright 
infringement, including attitudes to blocking of infringing websites, in an annual survey, 
available at : https://www.communications.gov.au/documents/consumer -survey -online -
copyright -infringement -2019. The most recent survey showed that consumption of digital WT/TPR/M/396/Add.1  
 
- 60 - 
 
  content is increasing, and that infringement levels have been decreasing and that  blocking of 
infringing sites has been a deterrent to piracy.  
 
In 2018, the Government reviewed the operation of the Copyright Amendment (Online 
Infringement) Act 2015  (online infringement reforms). Submissions from copyright owner 
industry associations i ncluding the Australian Film & TV Bodies, Free TV Australia, and Music 
Rights Australia were supportive of the 2015 online infringement reforms, and recommended 
additional reforms to make the scheme more effective. Submissions from telecommunications 
indus try stakeholders, including Communications Alliance and Telstra noted that the 2015 online 
infringement reforms were operating smoothly and effectively. Some telecommunications 
industry stakeholders were opposed to further reforms to the online infringemen t provisions in 
2018. Submissions to this review can be viewed at: https://www.communications.gov.au/have -
your-say/review -copyright -online -infringement -amendment . 
 
The amendments require action to be taken by copyright owners to apply for an injunction 
rather than by law enforcement bodies. Following an initial decision by the Federal Court which 
set out the costs to be paid by copyright owners to Carriage Service Providers, there have not 
been any challenges to implementing the court ordered injunctions.  
 
14. What is the background to the 2018 Copyright Amendment (online infringement)?  
 
RESPONSE: When the Copyright Amendment (Online Infringem ent) Act 2015  was passed by 
Parliament, the Government committed to a review the operation of the online infringement 
reforms to be held 18 months after commencement. The changes to the blocking scheme in the 
2018 Copyright Amendment (Online Infringement) Act were in response to this review.  
 
IV. TRADE POLICIES BY SECTOR  
4.2 MINING AND ENERGY  
4.2.2 ENERGY  
Page 111 (Para 4.57)  
Since 2016, responsibility for energy matters lies with the Department of the Environment and 
Energy, which, in addition to energy and environmental legislation, is also responsible for energy 
security. The Australian Energy Regulator (AER), which is a constituent part of the Australian 
Competition and Consumer Commission (ACCC), is responsible for promoting competition, fair 
trading, and regulating national infrastructure in the energy sector (gas and electricity). The National 
Competition Council, a research and advisory body, regulates third -party access to services provided 
by monopoly infrastructure.  
 
Question 15  
15. Please pro vide further information on the sectors (for example, gas and electricity), scope (for 
example, generation, transmission, distribution and sales), and specific regulations regarding 
third-party access.  
 
RESPONSE: Part IIIA of Australia’s Competition and Co nsumer Act 2010  establishes a legal 
regime to facilitate third party access to certain services provided by means of significant 
infrastructure facilities. Further information about this regime can be found at:  
https://www.accc.gov.au/regulated -infrastructure/about -regulated -infrastructure/acccs -role-
in-regulated -infrastructure/national -access -regime -under -part-iiia. 
 
Access to energy infrastructure (gas and electricity) are dealt with by the Australian Energy 
Regulator (AER) under the National Electricity Law and National Gas Law. Further information 
can be found at: https://www.aer.gov.au/networks -pipelines/our -role-in-networks . 
 
Page 112 (Para 4.60)  
According to the International Energy Agency, "energy prices have remained continuously high 
against low level s of competition in gas and electricity markets and low consumer choice, pointing 
to structural challenges. Concerns have been raised that gas supplies may reach a shortage in the 
east coast market as liquefied natural gas (LNG) exports ramp up to 2022, fu rther pushing up power 
prices".  In response, the Commonwealth Government introduced a gas security mechanism in July 
2017, involving possible LNG export restrictions.  
 
 WT/TPR/M/396/Add.1  
 
- 61 - 
 
  Questions 16 -17 
16. Please indicate whether the aforementioned natural gas security mechanism complies with WTO 
regulations.  
 
RESPONSE: The Australian Domestic Gas Security Mechanism (ADGSM) is a targeted and 
temporary energy security measure.  The Australian Government carefully considered its 
international obligations, includin g its WTO obligations, in developing the ADGSM.  
 
17. What are the results of the implementation of the mechanism so far? And has Australia proposed 
a withdrawal mechanism?  
 
RESPONSE: Since its implementation in 2017, no export restrictions have been issued und er 
the ADGSM as there has not been a domestic gas market shortfall required to trigger the 
mechanism. The ADGSM is scheduled to be repealed on 1 January 2023.  
 
4.4 SERVICES  
4.4.1 FINANCIAL SERVICES  
4.4.1.1 BANKING SECTOR  
Page 121 (Para 4.98)  
It is mentione d in the “Report by the Secretariat” that wholesale funding continues to be responsible 
for about one third of total bank liabilities, of which nearly two thirds is from international sources, 
making domestic banks susceptible to shocks in the global finan cial markets.  
 
Question 18  
18. According to the “ADI Authorisation Guidelines” of the Australian Prudential Regulation Authority 
(APRA), as an ADI (foreign deposit taking institution), a foreign bank cannot accept initial 
deposits of less than AUD 250,000. Con sidering that Australia overly depends on international 
capital, lowering the initial deposit requirement should help buffer the shocks in the global 
financial markets on wholesale funds, and increase the proportion of domestic sources of funds 
in the Aust ralian banking industry.  
 
RESPONSE: The observation is noted. The restriction referred to applies only to foreign bank 
branches, not locally -incorporated subsidiaries of foreign banks.  Deposits with foreign bank 
branches are not covered by the Financial Cl aims Scheme.  Also, APRA has no powers to set 
prudential capital requirements for foreign bank branches.  Accordingly, APRA’s view is that it is 
not appropriate for foreign bank branches to conduct retail banking business in Australia.  The 
minimum initial am ount of AU$250,000 for deposits is a means of operationalising that policy 
intent.  As a consequence, foreign bank branches in Australia generally only deal with wholesale 
and professional counterparties.  
 
PART II: REGARDING THE GOVERNMENT REPORT (WT/TPR/G/ 396)  
 
2 ECONOMIC POLICY  
1.1 DOMESTIC ECONOMY  
Page 4 (Para 6)  
For real wage growth to improve, ongoing productivity increases will be required, which is an ongoing 
challenge both in Australia and internationally.  
 
Question 19  
19. What are the measures that the Government of Australia has adopted to address the issue of 
declining productivity and how effective have those measures been?  
 
RESPONSE: The Australian Government is committed to boosting Australia’s competitiveness 
and productivity through policy ini tiatives that are cooperative, orderly and pro -growth. For 
example, the Government’s 2019 -20 Budget contains a range of measures to boost Australia’s 
growth and competitiveness including:  
– Funding for 80,000 new apprenticeships;  
– Reducing the company tax rat e for small and medium sized businesses and expanding 
the instant asset write -off to encourage more business investment; and  
– AU$100 billion in infrastructure spending over the next 10 years to improve the 
efficiency of the economy by reducing congestion and improving freight links.  WT/TPR/M/396/Add.1  
 
- 62 - 
 
  Further, the Government is taking action on many other fronts to boost Australia’s growth and 
competitiveness, including:  
– Establishing the Deregulation Taskforce in Treasury to ensure regulations support 
business inv estment;  
– Providing consumers with new rights to access and transfer their digital data to third 
parties to spur competition through passage of legislation for the new Consumer Data 
right, initially for banking services; and  
– Making productivity an ongoing p riority for the Council of Australian Governments’ 
Council on Federal Financial Relations, with an initial focus on initiatives in the areas of 
transport, health, skills and environmental regulation.  
 
2.4.5 SERVICE EXPORT COMPETITIVENESS  
Page 7 (Para 30)  
A total of 17 MRAs have been signed since 2016 across four professions (accountancy, architecture, 
engineering and quantity surveying) with counterparts in ten WTO members (Canada, Hong Kong, 
China, Malaysia, Pakistan, the Philippines, Singapore, South Afri ca, Sri Lanka, the UK, and the US).  
 
Question 20  
20. Could the Government of Australia elaborate on its policy direction and priority for the future 
promotion of services MRAs?  
 
RESPONSE: The Australian Government is working with Australian professional services peak 
bodies to increase their adoption of mutual recognition agreements (MRAs) with counterparts 
in markets of interest to them. In Australia, MRAs are negotiated by industry peak bodies 
independent of government. Government policy is  to encourage MRAs that include the 
recognition of both qualifications and professional licensure/registration as MRAs can play an 
important role in reducing or eliminating process, procedural and other domestic regulatory 
barriers faced by professionals s eeking to provide services internationally. The Government will 
continue this work with the aim of promoting two -way trade in professional services and two -
way mobility of professionals.  
 
There is also another related ongoing initiative of collaboration wi th industry and is expected to 
continue through 2020 and beyond. Greater details of industry recommendations and the 
Australian Government’s response is available from the following website: 
https://dfat.gov.au/trade/services -and-digital -trade/Pages/services -export -action -plan.aspx . 
 
III. TRADE POLICY DEVELOPMENTS  
Page 9 (Para 4)  
The Government has committed that around 90% of Australia’s trade will b e covered by FTAs by 
2022.  
 
Questions 21 -22 
21. How does the Government of Australia achieve the goal of increasing her FTA coverage to 90% 
of her trade by 2022?  
 
22. Could the Government of Australia elaborate details of her FTA agenda and priority to achieve 
the above -mentioned goal?  
 
RESPONSE: The Australian Government has committed that around 90 per cent of Australia's 
two-way trade will be covered by FTAs by 2022. It is pursuing this commitment through the 
conclusion of free trade agreements under negotiation and planned, with a focus on signature 
of the Regional Comprehensive Economic Partnership (RCEP), and conclusion of the Australia -
EU FTA, and the Australia -UK FTA.  
 
3.5 BILATERAL AND REGIONAL FTAS UNDER NEGOTIATION  
3.5.5 TRADE IN SERVICES AGREE MENT (TISA)  
Page 15 (Para 3.50.)  
The CPTPP is one of the most 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 WT/TPR/M/396/Add.1  
 
- 63 - 
 
  preferential market access Australia had already secured through existing FTAs with Japan, Malaysia, 
Chile, Singapore, Vietnam and Brunei.  
 
Questions 23 -24 
23. How Australia conducted a quantitative impact assessment of the economy, investment, and 
trade for joining the CPTPP? Is there any difference between the actual impact of the CPTPP 
and the Australian ass essment so far?  
 
RESPONSE: Modelling by the Peterson Institute for International Economics in 2017 found that 
the CPTPP would increase Australia’s income by 0.5 per cent by 2030. * The Canada West 
Foundation modelling found that Australia’s exports to other CPTPP Parties would increase by 
0.12 per cent under the CPTPP.  
 
The 10 CPTPP partner countries include some of Australia’s most important trading partners. 
Total two -way goods trade between Australia and the CPTPP partner countries was valued at 
AU$1 20 billion for the period January – September 2019, representing an increase of 5 per cent 
compared to the same period in 2018.  
 
Just one year after the CPTPP’s entry into force, it is too early to properly assess the CPTPP’s 
impact. The Government is in the process of collecting more extensive data and analysis on the 
CPTPP and its impact on Australia’s trade and investment activity.  
 
*https://dfat.gov.au/news/news/Documents/national -interest -analysis -including -analysis -of-
regulatory -impact -on-australia.pdf . 
 
24. Could Australia elaborate on how the CPTPP market's condition for service trade have improved 
and what are the implications for companies?  
 
RESPONSE: The CPTPP has delivered high quality outcomes that have opened substantial new 
services trade opportunities for the 11 CPTPP Parties.  The Agreement provides a strong 
framework of rules and commitments that promote co ntinued growth in exports across a range 
of services sectors, including education, finance, health, transport and logistics, tourism, mining 
and professional services.  
 
The Agreement removes key barriers to services trade, and ensures that service provide rs have 
improved transparency and predictability in the operating conditions of CPTPP markets.  The 
CPTPP also captures future market reforms in services sectors, meaning that any liberalisation 
will flow through to service providers across the CPTPP econo mies.  
 
CPTPP Parties have also agreed to work to foster enhanced recognition of professional 
qualifications, and improved licensing and recognition arrangements in sectors such as 
professional services.  
 
3.8 THEMATIC TRADE POLICY PRIORITIES  
3.8.1 E -COMMERC E/DIGITAL TRADE  
Page 18 (Para 76)  
Australia is currently negotiating a digital economy agreement with Singapore that intends to cover 
a broad range of new areas of bilateral cooperation, including digital trade facilitation, e -invoicing, 
e-payments, FinTec h, digital identity and artificial intelligence. It will expand on both countries’ 
commitments under the Singapore -Australia Free Trade Agreement.  
 
Questions 25 -26 
25. Could Australia please give some examples of bilateral cooperation in these new areas 
mentioned above?  
 
RESPONSE: The outcomes of the Australia -Singapore Digital Economy Agreement (DEA) are 
still under negotiation. Final outcomes will be made public following signature of the treaty in 
accordance with Australian treaty practice. Cooperation on harnessing the trade benefits of 
digital technologies under the DEA is likely to take place at agency level, and will be structured 
within the context of Australia’s bilateral relationship with Singapore.  
 
26. Does the digital economy agreement with Singapore cover market access?  WT/TPR/M/396/Add.1  
 
- 64 - 
 
  RESPONSE: The outcomes of the Australia -Singapore Digital Economy Agreement (DEA) are 
still under negotiation. Final outcomes will be made public following signature of the treaty in 
accordance with Australian treaty pra ctice. Cooperation on harnessing the trade benefits of 
digital technologies under the DEA is likely to take place at agency level, and will be structured 
within the context of Australia’s bilateral relationship with Singapore.  
  WT/TPR/M/396/Add.1  
 
- 65 - 
 
  Colombia  
Informe de la Secr etaría - Documento WT/TPR/G/396  
RESUMEN  
 
El párrafo 6 del Informe de la Secretaría menciona que: “Desde el último examen, Australia ha 
ratificado el Acuerdo sobre Facilitación del Comercio de la OMC y ha aplicado plenamente los 
compromisos de todas las cat egorías. También está implementando la ampliación del Acuerdo sobre 
Tecnología de la Información, que abarca 201 productos adicionales, y se adhirió al Acuerdo sobre 
Contratación Pública plurilateral en 2019. Mantuvo un sólido historial de notificaciones, ya que desde 
inicios de 2015 ha presentado unas 200 notificaciones a la OMC….”  
 
• El Gobierno de Colombia desea aprovechar esta ocasión para valorar el esfuerzo realizado por 
el Gobierno de Australia para cumplir los compromisos de notificación de sus medi das ante la OMC.  
 
RESPONSE: Australia has a consistent record as a member of the WTO in meeting our formal 
notification commitments. Australia is conscious of the importance of timely notifications by 
members to allow the WTO to function and meet its full  potential to facilitate and promote 
global trade and economic development. Australia is currently on track to meet all of our 
formal commitments in this regard.  
 
The various notification commitments and processes embedded in the WTO are central to the 
core role that transparency plays in the organisation. Australia is an active supporter of reform 
of the WTO’s notification and transparency processes and we have made practical suggestions 
under this heading – including as co -sponsor of the trilateral notif ications proposal. Australia’s 
ideas on improving notifications in the WTO take account of – inter alia – the resource 
constraints and other difficulties that many developing countries face when seeking to comply 
with these formal requirements.  
 
RESUMEN  
 
El párrafo 12 del Informe de la Secretaría menciona que: “La entrada en vigor de la Ley de 
Bioseguridad (en 2015), de dos reglamentos básicos de aplicación y de varios instrumentos jurídicos 
conexos constituye una novedad importante reciente en el ámbito d e las medidas sanitarias y 
fitosanitarias en Australia. La legislación prevé el examen de las condiciones vigentes del comercio 
y la realización de un análisis del riesgo de las mercancías mediante un proceso regulado (análisis 
del riesgo de las importacio nes para la bioseguridad), así como en respuesta a las solicitudes de 
importación de mercancías que no se han importado nunca a Australia, o que no se han importado 
antes de un país o región particulares. Como antes, las importaciones no se autorizan a men os que 
los riesgos estimados para la bioseguridad sean "muy bajos" (o un nivel inferior a este)”.  
 
Question 1  
1. ¿Cómo podría el Gobierno de Australia sustentar que los niveles “muy bajos” (o un nivel inferior) 
en los riesgos estimados para la bioseguridad, no se conviertan en una restricción al comercio?  
 
RESPONSE: The Australian Government undertakes risk assessments in response to market 
access requests from other countries and from Australian businesses to import animals, plants 
and/or other  goods into Australia, where they have not been imported into Australia before, or 
have not been imported into Australia from a particular country or region. In determining an 
Appropriate Level of Protection (ALOP) as defined in the Biosecurity Act 2015  and Biosecurity 
Regulation 2016, Australia takes account of the objective of minimising negative trade effects. 
Australia applies the concept of ALOP consistently in a manner that avoids arbitrary or 
unjustifiable distinctions that result in discrimination o r a disguised restriction on international 
trade.  
 
Under the Sanitary and Phytosanitary Measures (SPS) Agreement, Australia is entitled to 
maintain a level of protection considered appropriate to protect life or health. Australia is one 
of the few countrie s in the world to remain free from the world’s most severe pests and diseases. 
Australia meets its international rights and obligations under WTO, OIE and IPPC agreements.  
 WT/TPR/M/396/Add.1  
 
- 66 - 
 
  Risk assessments follow a regulated process (BIRA) or a non -regulated process that meets 
internationally agreed principles outlined in the SPS Agreement and in the OIE and IPPC codes 
and standards concerning import and pest risk analyses.  
 
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1.1.1  Requisitos de documentación y medidas de facilitación del comercio  
 
El párrafo. 3.5 del Informe de la Secretaría menciona que: “Las empresas que reúnen las condiciones 
para ser ATT ponen en marcha su proceso de solicitud mediante la creación de una cuenta 
ImmiAccount, lo cual puede efectuarse des de el sitio web del Programa ATT. Una vez tengan una 
cuenta, cumplimentarán y presentarán el formulario de solicitud en línea de ATT, que posteriormente 
será examinado por un funcionario de las Fuerzas de Seguridad Fronteriza de Australia dedicado al 
Progr ama ATT. Si la empresa cumple los requisitos iniciales, se lleva a cabo una visita de validación 
sobre el terreno para verificar la información contenida en la solicitud por escrito, constatar los 
procesos y evaluar la compatibilidad de la entidad con el R eglamento y el Marco SAFE. Un delegado 
del Controlador General de Aduanas ofrecerá un acuerdo jurídico a la empresa que reconozca la 
seguridad de su cadena de suministro y su cumplimiento de las normas comerciales en caso de que 
el funcionario de las Fuerz as de Seguridad Fronteriza de Australia encargado del examen considere 
que dicha empresa se ajusta a los criterios dispuestos en el Reglamento y el Marco SAFE. Tanto la 
solicitud como la ulterior participación en el programa son gratuitas”.  
 
Question 2  
2. ¿Podría el gobierno de Australia confirmar si pueden participar en el Programa de Comerciantes 
de Confianza Australianos (ATT) empresas exportadoras e importadoras? y si ¿Pueden participar 
en este programa empresas de todos los sectores económicos?  
 
RESPON SE: Yes, both exporting and importing companies can participate in the Australian 
Trusted Trader programme. Companies from all economic sectors can participate in the 
programme.  
 
El párrafo 3.6 del Informe de la Secretaría menciona que: “Los ATT se conside ran empresas de bajo 
riesgo y reciben un trato prioritario en la frontera, a saber, una mayor rapidez en la tramitación y 
un menor número de intervenciones... Los ATT también tienen acceso a requisitos de documentación 
simplificados por lo que respecta al origen de las importaciones procedentes de Chile; China; Corea, 
República de; el Japón; Malasia; Singapur; y Tailandia.”  
 
Questions 3 -4 
3. Podría el Gobierno de Australia indicar las razones por las cuales las empresas que son 
miembros del Programa de Comerci antes de Confianza Australianos (ATT) tienen requisitos de 
documentación simplificados por lo que respecta al origen de las importaciones solamente de 
los 7 (siete) países mencionados en este párrafo?  
 
RESPONSE: ATT importers are no longer required to obtain or present origin certification 
documents, such as a Certificate of Origin (CoO) or Declaration of Origin (DoO) in order to claim 
preferential rates of duty under certain free trade agreements (FTAs).  The ATT Origin Waiver 
benefit removes the need for documentary evidence of origin for Trusted Traders importing 
under Free Trade Agreements with Chile, Japan, the Republic of Korea, Malaysia, Singapore and 
Thailand. The ATT Origin Advance Ruling benefit assists Trusted Traders importing goods under 
the China Australia Free Trade Agreement (ChAFTA).  This benefit allows Trusted Trader 
importers to request a single, special advance ruling that refers to goods classified under 
multiple tariff classifications and consignments, which meet the rules of origin  and consignment 
rules under ChAFTA.  
 
4. ¿Por qué requisitos de documentación simplificados por lo que respecta al origen de las 
importaciones a los que tienen derecho las empresas del Programa ATT no se aplica a otros 
países con los cuales Australia tiene ac uerdos comerciales?  
 
RESPONSE: The Origin Waiver benefit and the ATT Origin Advance Ruling are only possible 
under the text of specific free trade agreements (FTAs). This is due to different documentary 
evidence requirements across Australia's FTAs.  
 
 WT/TPR/M/396/Add.1  
 
- 67 - 
 
  3.3.3 Prescripciones sanitarias y fitosanitarias  
 
El párrafo 3.112 del Informe de la Secretaría establece: “El 1º de julio de 2016 Australia introdujo 
un nuevo sistema de etiquetado del país de origen, que pasó a ser obligatorio para los "alimentos 
prioritario s" a partir del 1º de julio de 2018.  La Comisión Australiana para la Competencia y el 
Consumo se encarga de aplicar el nuevo sistema. Las prescripciones en materia de etiquetado 
comprenden una declaración del país de origen y un logotipo/marca y gráfico d e barras 
estipulados…”  
 
Questions 5 -6 
5. Podría el Gobierno de Australia indicar ¿Cuáles son los “alimentos prioritarios” mencionados en 
este párrafo para efectos de la aplicación del nuevo sistema de etiquetado de país de origen, la 
forma como acceder o busc ar esta información?  
 
RESPONSE: A food will be a priority item unless it belongs to one of the following non -priority 
food categories:  
1. seasonings  
2. confectionery  
3. biscuits and snack foods  
4. soft drinks and sports drinks  
5. alcoholic drinks  
6. tea and coffee  
7. bottled water.  
 
Further information is available in the Australian Competition and Consumer Commission guide 
for business: https://www.accc.gov.au/system/files/Country%20of%20Origin%20food%20% 
20labelling%20Guide_March%202019.pdf . 
 
6. Podría el Gobierno de Australia precisar ¿Cuál es la diferencia entre el “marcado normal” para 
productos no prioritarios y el “marcado para los producto s prioritarios”?  
 
RESPONSE: A food will be a priority item unless it belongs to one of the following non -priority 
food categories:  
1. seasonings  
2. confectionery  
3. biscuits and snack foods  
4. soft drinks and sports drinks  
5. alcoholic drinks  
6. tea and coffee  
7. bottled water .  
Imported non -priority products must carry a text statement about where the food was grown, 
produced, made or packed. Imported priority products must carry that information as well, and 
also display it within a clearly defined box. Further information is  available in the Australian 
Competition and Consumer Commission guide for business: https://www.accc.gov.au/ 
system/files/Count ry%20of%20Origin%20food%20%20labelling%20Guide_March%202019. 
pdf. 
 
4.3.2  Textiles, vestido y calzado  
 
El párrafo 4.82 del Informe de la Secretaría menciona: “El sector de los textiles, el vestido y el 
calzado desempeña un papel importante en toda la economía, en particular en las esferas del diseño, 
la enseñanza, la producción de fibras, los servicios, la investigación y la tecnología. Según las 
autoridades, el sector está continuamente en proceso de diversificación, y Australia pasó a ser un 
país inn ovador en materia de textiles inteligentes, fibras de alta calidad, enseñanza de diseño de 
primera calidad, y desarrollo de tejidos únicos… El Gobierno presta al sector asistencia de diversos 
tipos, en particular en el marco del Programa de Creación de Cap acidad en la Industria de los Textiles 
para Uso Doméstico y las Prendas de Vestir (AUD 21,2 millones en 2015/2016)”.  
 
Question 7  
7. Podría el Gobierno de Australia ampliar información sobre el “Programa de Creación de 
Capacidad en la Industria de los Textiles para Uso Doméstico y las Prendas de Vestir”, en 
particular: ¿Qué tiempo de funcionamiento lleva este programa? ¿A qué tipo de pe rsonas o WT/TPR/M/396/Add.1  
 
- 68 - 
 
  empresas está dirigido? Cuáles son los requisitos para ser beneficiario de este programa?; ¿Qué 
entidad en Australia lidera o administra este Programa?  
 
RESPONSE: The AU$112.5 million Clothing and Household Textile (Building Innovative 
Capability)  scheme (BIC scheme) formed part of the TCF innovation package. The scheme was 
open to entities conducting eligible clothing and household textile manufacturing and/or 
designing for manufacture activities in Australia. Innovation grants were available on a n 
entitlement basis for research and development including innovative product design activities, 
innovative process improvements, market research and some industrial property rights 
expenditure. Funding of AU$22.5 million per annum was available.  
 
All gran ts were paid annually and in arrears. The maximum grant entitlement is 50 per cent of 
eligible expenditure. Grants are subject to a 5 per cent sales cap on Australian manufactured 
sales and modulated to ensure they do not exceed the legislated annual cap. In the 2014 budget 
the Government proposed to bring the program to a close one year earlier than its original end 
date of 30 June 2015 , but the amending legislation did not pass , and the program closed on 30 
June 2015 with final payments made in 2015 -2016.  
 
3.1.7   Medidas antidumping, compensatorias y de salvaguardia  
En el párrafo 3.49. se indica que: “La Comisión Antidumping investiga las reclamaciones formales 
de que importaciones objeto de dumping o de subvención han causado un daño importante a ramas 
de producción australianas. Su Comisario, que dirige esa labor, rinde informe directamente al 
Ministro de Industria, Ciencia y Tecnología. La Comisión realiza sus investigaciones sobre la base de 
la Ley de Aduanas de 1901, la Ley del Arancel de Aduan as (Antidumping) de 1975, el Reglamento 
del Arancel de Aduanas (Antidumping) de 2013, el Reglamento de Aduanas (Obligaciones 
internacionales) de 2015 y la Ley por la que se modifica la Ley de Aduanas (Medidas antidumping) 
de 2017.  La Comisión Antidumping elaboró un manual detallado en el que se establecen los 
requisitos relativos a las solicitudes, y los factores que ella misma tendrá en cuenta al examinar las 
reclamaciones de dumping causante de daño o de subvención recurrible causante de daño. El manual 
se actualiza de vez en cuando, según sea necesario…”  
 
Question 8  
8. ¿Cuáles son las disposiciones destinadas a prevenir la elusión de las medidas antidumping o 
compensatorias de Australia y cuales ha sido sus resultados?  
 
RESPONSE: Australia’s anti ‑circumvent ion framework was established in June  2013. The 
provisions allow measures to be amended to address the following types circumvention 
behaviour:  
- Assembly of parts in Australia - parts of goods subject to measures are imported to Australia 
and assembled d omestically;  
- Assembly of parts in a third country - parts of goods subject to measures are exported to a 
third country for assembly prior to export to Australia; Export of goods through one or more 
third countries;  
- Arrangements between exporters - goods are exported under an arrangement between 
exporters whereby the exported goods improperly attract the more favourable rate of measures 
applicable to an exporter rather than the rate applicable to the actual exporter of the goods;  
- Avoidance of the inte nded effect of duty - the price of the goods does not increase 
commensurate with the anti -dumping duties payable; and  
-  Slight modification of goods - the goods have been slightly modified in order to circumvent 
duties that apply to the original (or unmod ified) goods . 
 
Eight circumvention inquiries have been initiated by Australia since the framework was 
established. Of these, two involved the avoidance of the intended effect of duty, one involved 
the export of goods through one or more third countries and five involved the slight modification 
of goods. Seven of these inquiries found that circumvention had occurred.  
 
Parrafo 3.53. “En comparación con los demás países, Australia recurre con relativa frecuencia a los 
procedimientos antidumping. E n el período 1995 -2018 inició 344 investigaciones antidumping e 
impuso 156 medidas antidumping en total, con lo que se convirtió en el sexto Miembro de la OMC 
más activo en cuanto a iniciación de investigaciones.  Aunque el número de investigaciones ha sid o 
menor en los últimos años si se compara con el máximo registrado a finales de la década de 1990, WT/TPR/M/396/Add.1  
 
- 69 - 
 
  la proporción de asuntos que concluyen con la constatación de la existencia de dumping y daño 
importante es actualmente mayor (gráfico 3.2).”  
 
Question 9  
9. A partir de 2015 se ha visto un cambio en la tendencia del número de investigaciones y de 
medidas antidumping aplicadas (37), a pesar que Australia es de los países que más ha 
impuesto medidas 1995 -2018 (156 medidas), esto a que se debe, a la negociación y en trada 
en rigor de los nuevos acuerdos comerciales o al mejoramientos en la metodología de 
investigación o parámetros para la entrega de información?  
 
RESPONSE: Australia’s anti -dumping system is demand driven. Investigations, and any 
resulting measures, are in response to applications from industry and reflect market conditions. 
Any anti -dumping measures imposed result from an independent, rigorous and transparent 
investigation, offering due process to interested parties and the possibility of b oth merits and 
judicial review.  
 
En el párrafo 3.56 se indica que “En la OMC, Australia se sitúa en el cuarto lugar entre los Miembros 
que imponen medidas compensatorias; a finales de 2018 había notificado 15 medidas en total. En 
el período objeto de exame n entraron en vigor seis nuevas medidas (cuadro 3.10). Desde agosto de 
2017 no se han impuesto nuevos derechos compensatorios. Sin embargo, en 2018 se iniciaron tres 
investigaciones.”  
 
Questions 10 -11 
10. En la práctica de Australia se aplican derechos antidum ping y compensatorios paralelamente?  
RESPONSE: Australia’s anti -dumping legislation provides for the imposition of concurrent 
dumping and countervailing duties following investigations which arise from application alleging 
both dumping and subsidisation of  a certain product. When concurrent dumping and 
countervailing duty is applied, the Commission acts in accordance with Article VI of GATT 1994 
and Article 10 of the Agreement on Subsidies and Countervailing Measures. Further detail on 
how Australia impleme nts concurrent dumping and countervailing duties is available in Chapter 
20 of the Dumping and Subsidy Manual, available at https://www.industry.g ov.au/sites/ 
default/files/2019 -05/adc_dumping_and_subsidy_manual.pdf . 
 
11. En la práctica de Australia una investigación antidumping conlleva también la aplicación de un 
derecho compensatorio? Se observa que no hacen referencia a investigaciones por 
subvencio nes para la aplicación de derechos compensatorios?  
 
RESPONSE: When making an application to Australia’s Anti -Dumping Commission, an applicant 
can request an investigation into the dumping of certain goods, the subsidisation of certain 
goods, or the dumping  and subsidisation of certain goods. Countervailing duties are only applied 
following an investigation into the subsidisation of the goods.  
 
3  POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1  Medidas que afectan directamente a las importaciones  
3.1.1  Procedimientos y requisitos aduaneros y valoración en aduana  
3.1.1.1  Requisitos de documentación y medidas de facilitación del comercio  
 
En el párrafo 3.8.  Australia ratificó el Acuerdo sobre Facilitación del Comercio (AFC) de la OMC  el 9 
de junio de 2015 y, como país desarrollado Miembro de la OMC, está obligada a cumplir todos los 
compromisos establecidos en el Acuerdo desde su entrada en vigor el 22 de febrero de 2017. A 
principios de 2018, Australia notificó sus servicios de infor mación sobre el AFC, su punto de contacto 
para el intercambio de información, medidas sobre el recurso a agentes de aduanas, enlaces a 
legislación y procedimientos pertinentes y un enlace que dirigía a una descripción de su ventanilla 
única y, en mayo de 2 019, presentó una versión revisada de la notificación.  Australia patrocina una 
serie de proyectos de facilitación del comercio gestionados por asociados multilaterales, regionales 
o de otra índole y desembolsó un total de AUD 189 millones en el período 20 16/2017 y casi AUD 
160 millones en el período 2017/2018.  
 
Question 12  
12. Nos permitimos solicitar ampliar la información de las medidas sobre el recurso a agentes de 
aduanas y su obligatoriedad o no en las operaciones de comercio exterior?  
 WT/TPR/M/396/Add.1  
 
- 70 - 
 
  RESPONSE: Australi a has a licensing regime for customs brokers (agents). Agents are required 
to comply with a number of licence obligations and conditions. These can be found on the 
Australian Border Force (ABF) website at:  
https://www.abf.gov.au/licensing/brokers/when -you-have/obligations -conditions .  
 
An ABF officer may call for additional information/documents in relation to an import declaration 
under Section 71DA of the Customs  Act 1901  (Act). This can be requested from the importer 
or the customs agent acting on behalf of the importer. Section 240 of the Act requires 
commercial documents to be retained for five years.  
https://www.legislation.gov.au/Details/C2019C00314 . 
 
3.3.  En 2015, el Parlamento modificó la Ley de Aduanas de 1901 por conducto de la Ley de 
Modificación de la Ley de Aduanas (Programa de Comerciantes de Confianza Australianos) de 2015, 
a la que complementó el Reglamento de Aduanas (Programa de Comerciantes de Confianza 
Australianos) de 2015.  El Programa de Comerciantes de Confianza Australianos (ATT) se empezó a 
ejecutar en j ulio de 2015 con un plan piloto de 12 meses de duración, se aplicó plenamente a partir 
de julio de 2016 y, en la actualidad, tiene casi 500 miembros acreditados. Las ramas de producción 
participaron en el diseño de las especificidades del Programa ATT, cuy o funcionamiento es 
compatible con los Programas de Operadores Económicos Autorizados (OEA) del Marco Normativo 
SAFE de la Organización Mundial de Aduanas.  
 
Question 13  
13. Agradecemos mayor información sobre el Programa de Comerciantes de Confianza respecto d e 
los usuarios que pueden aplicar al mismo?  
 
RESPONSE: Businesses that can apply to ATT include importers, exporters and service providers 
that demonstrate:  
- that they have been active in the international supply chain for 2 years;  
- are financially solvent; and 
- have an Australian Business Number (ABN).  
WT/TPR/G/396  
Informe de Gobierno  
 
3.1.4  Negociaciones sobre el comercio electrónico  
En el párrafo 3.14. Los principales intereses de Australia residen en la facilitación del comercio digital 
y las transaccione s electrónicas (por ejemplo, promover el comercio sin papel, mejorar la 
transparencia, permitir la firma electrónica, etc.), la protección de los consumidores (por ejemplo, 
proteger a los consumidores en línea, la información personal y la privacidad, etc. ) y la prohibición 
de las restricciones a los flujos de datos, incluidas las prescripciones de localización. Otro de los 
principales objetivos es conferir carácter permanente a la moratoria en el marco de la OMC sobre la 
imposición de derechos de aduana a las transmisiones electrónicas.  
 
Question 14  
14. Podría Australia detallar las acciones de política pública que ha adelantado Australia en materia 
de facilitación del comercio digital y transacciones electrónicas?  
 
RESPONSE: Australia has developed a range of initiatives and approaches to adapt to the needs 
of the digital economy. For instance:  
 
• the Australian Government has committed to implementing a single window trading 
system with particular regard to exporting digital goods and services through i ts 
obligations under the WTO Trade Facilitation Agreement;  
• the majority of Australia’s free trade agreements include e -commerce chapters which 
contain rules to reduce barriers to digital trade, and support Australian businesses and 
consumers to take advant age of the opportunities that e -commerce offers;  
• the Australia -Singapore Digital Economy Agreement, which is under negotiation, will 
reduce barriers to digital trade and build an environment in which Australian businesses 
are able to participate and benefi t from the digitalisation of the economy;  
• Australia’s Tech Future, Australia’s digital economy strategy details how Australia can 
maximise the opportunities of technological change by focusing on: developing Australia’s 
digital skills, how Government can b etter deliver digital services, building infrastructure WT/TPR/M/396/Add.1  
 
- 71 - 
 
  and providing secure access to high -quality data and maintaining our cyber security and 
reviewing our regulatory systems;  
• the Digital Transformation Strategy complements Australia’s Tech Future by ide ntifying 
how to harness digital technology and data to deliver more responsive policy, less red tape 
and better services;  
• the International Cyber Engagement Strategy, which is aimed at strengthening cross -
border cooperation in developing regional digital c onnectivity and cyber security 
capabilities, and shaping an enabling environment for digital trade; and  
• the Cyber Security Strategy, aimed at addressing cyber security and cyber resilience 
issues in the rapidly evolving cyber threat environment.  
 
Otras pre guntas no clasificadas:  
 
Questions 15 -19 
15. Desde la óptica de la verificación del origen de las mercancías, se consulta si existen 
restricciones normativas – diferentes a las acordadas en propiedad intelectual, reservas 
financieras, etc. - para intercambio o  suministro de la información de los procesos productivos 
y de la información financiera que soporta los productos importados?  
 
RESPONSE: Each of Australia's free trade agreements (FTAs) contain requirements regarding 
information related to the origin of g oods that claim to be originating when imported or exported 
under that FTA.  
 
For exports, these requirements are given effect through Divisions 4A through 4K of Part IV of 
the Customs Act 1901  and include powers for authorised officers to require records, ask 
questions and to share that information with the importing customs authority. Further 
requirements are set out in Divisions 1 through 4 of Part 3 to the Customs (International 
Obligations) Regulation 2015 or in regulations specific to that FTA.  
 
For im ports, sections 71DA, 240AA, 240AB and 240AC of the Customs Act 1901 provide 
authorised officers with powers to require  the owner of goods imported into Australia to keep 
and produce records. Penalties may apply in the case where fraudulent claims of origi n are 
made.  
 
As an example, Section 9.6 of the ABF Guide to the Peru -Australia Free Trade Agreement sets 
out these compliance procedures: https://www.abf.gov.au/free -trade -agreements/files/fta -
guide -peru.PDF  
 
Depending on the nature of the verification on the origin of the goods, requested information 
could include records of purchases, evidence of the value and classification of the good, and 
records of the production and production processes. The types of inf ormation that could be 
sought by the ABF are included in Section 2.6 of the ABF’s Origin Advice guide for goods being 
imported into Australia when seeking an origin advice ruling: https://www.abf.gov.au/free -
trade -agreements/files/origin -advice -guide.pdf . 
 
In addition to the general requirement under the Customs Act  that commercial documents be 
kept for at least five years, the regulations enacted for each FTA provide a list of th e records 
that should be maintained by the producer or exporter in Australia making a claim their goods 
originating under a particular FTA.  
 
The Customs Act  allows for full powers to verify all details in an import declaration, including 
origin claims. As such, non -preferential origin claims are treated similar to other matters of 
false or misleading statements under Section 243T(1) or 243U(1) of the Customs Act 1901.  
 
It is important to note that the release of information held by the ABF is regulated by the Privacy 
Act 1988  and others Acts, including the Australian Border Force Act 2015 , that set limits as to 
why information is collected, how it will be used and when it will be disclosed.  
 
16. Quisiéramos conocer mayor información sobre la reglamentación y pl ataforma de comercio 
electrónico?  
 WT/TPR/M/396/Add.1  
 
- 72 - 
 
  RESPONSE: The Australian Government is working to make it easier and more reliable to use 
electronic communications in business and personal transactions. This includes a commitment 
to provide government services online wherever possible.  
 
Australia has implemented  a range of measures to facilitate and promote e -commerce in 
Australia. Electronic commerce is principally regulated and facilitated by federal, state and 
territory Electronic Transaction Acts.  Other measures adopted include the Competition and 
Consumer A ct 2010 (Cth) to ensure businesses adopt fair business practices when engaging in 
electronic commerce, the Privacy Act (Cth) which regulates the collection, use and disclosure 
of personal information. The Do Not Call Register Act (Cth) and the Spam Act (Ct h) also provide 
protection to users from unsolicited marketing communications transmitted via phone calls, 
faxes and messages.  
 
More information on work the Government is doing to promote e -commerce for businesses in 
Australia is available: https://www.business.gov.au/Marketing/Online -presence/Buying -and-
selling -online . 
 
The Australian Guidelines for electronic commerce may also be useful: 
https://treasury.gov.au/publication/the -australian -guidelines -for-electronic -commerce/the -
australian -guidelines -for-electronic -commerce . 
 
17. En las operaciones de importación, los usuarios presentan declaraciones anticipadas? En qué 
porcentaje del total de las operaciones?  
 
RESPONSE: Importers or their agent may submit import declarations prior to the arrival of 
goods into Australi a. The Time Release Study 2016 indicates that in 2016, on average, the 
Australian Border Force received all documents, including declarations, for sea cargo imports 
3.8 days prior to the goods arriving and for air cargo imports 3.1 hours prior to the goods  
arriving.  
 
18. Cuanto tienen estimado se encuentran los tiempos de nacionalización?  
 
RESPONSE: The Time Release Study 2016 indicates that the Australian Border Force (ABF) 
typically completed risk assessment, evaluation and processing of sea cargo two days prior to 
its arrival in Australia. On average, sea cargo was available to be entered into home 
consumption within 0.1 days of landing and air cargo was available to be entered into home 
consumption within 3 hours. Since 2007, the Time Release Study co nsistently demonstrated 
the integral link between early reporting of goods by industry and early clearance times by the 
ABF. 
 
19. Con respecto al Cannabis medicinal, existe algún tipo de reglamentación y/o restricción para la 
importación de este tipo de produc tos? 
 
RESPONSE: Australian import controls on cannabis, for medical use, are applied as required 
under Article 31 of the Single Convention on Narcotic Drugs of 1961, as amended by the 1972 
protocol (the Single Convention). Import controls are implemented u nder Regulation 5 of the 
Customs (Prohibited Imports) Regulations 1956 all forms of cannabis, cannabis resins, extracts 
(including extracts from hemp) and cannabinoids. Importers require a licence and permit to 
import and the use of the imported material i s restricted to medicinal or scientific research 
purposes.  
 
Restrictions on the quantities of cannabis imported are subject to estimates as required under 
Article 19 of the Single Convention.  
 
While Medicinal Cannabis products are regulated as medicines in  Australia, only some have 
been entered into the Australian Register of Therapeutic Goods (ARTG). Generally, medicines 
imported and supplied in Australia must be entered into the ARTG, however the Therapeutic 
Goods Act 1989 provides several mechanisms to a llow for use of unregistered medicines in 
certain circumstances.  
  WT/TPR/M/396/Add.1  
 
- 73 - 
 
  Colombia follow up questions  
PREGUNTAS DE SEGUIMIENTO QUE EL GOBIERNO DE COLOMBIA FORMULA AL GOBIERNO 
DE AUSTRALIA  
 
Propiedad Intelectual  
3.89. Since the last WTO Trade Policy Review of Australia, some legislative changes have been made 
to the IP regime:  
 
On February 24, 2017, the Law on the Amendment of Intellectual Property Legislation of 2015 came 
fully into force. This Law put into practice the Protocol amending the TRIPS Agreement of  the WTO, 
which allows producers of Australian medicines manufacture and export patented pharmaceutical 
products to countries experiencing health crises.  
 
A number of amendments to the Copyright Law were implemented to address online infringements 
and acce ss by persons with disabilities to copyrighted material, as well as to broaden the scope of 
the current safe harbor regime in copyright infringement case to cover a broader set of service 
providers.  
 
Questions 1 -2 
1. Could Australia provide more details on how the Protocol Amending the WTO TRIPS Agreement, 
which allows Australian drug producers to manufacture and export patented pharmaceutical 
products to crisis -affected countries, has been implemented? Has the protocol been executed? 
What results  have been obtained?  
 
RESPONSE:  Under Australia's implementation of the TRIPS Protocol (TRIPS Article 31bis), 
pharmaceutical man ufacturers can apply to the Federal Court of Australia for a compulsory 
licence to manufacture generic versions of patented medi cines to supply to eligible importing 
countries in need.  
 
Section 136E Patents Act 1990 provides that in order to make an order to grant a compulsory 
licence under the system the Court must be satisfied of several factors including that:  
 
 - the applicat ion is made in good faith; and  
 - the proposed use of the pharmaceutical product is to address a public health problem in the 
eligible importing country (a) in circumstances of extreme urgency or (b) by the public non -
commercial use of the product. In non -urgent circumstances the applicant for the licence has 
sought authorisation from the patentee, without success, to exploit the patented invention on 
reasonable terms and conditions; and  
 - reasonable measures will be taken to prevent the pharmaceutical fro m being used for another 
purpose.  
 
Remuneration is to be paid to the patent owner, with the amount to be agreed between the 
patent owner and the applicant, or as determined by the court to be adequate remuneration 
taking into account the economic value to  the importing country of the use of the product.  
 
An eligible importing country is one identified by the United Nations as a least developed 
country, or a WTO member that has notified the TRIPS Council of its intention to use as an 
importer the Article 3 1bis system. More information is available at : 
https://www.ipaustralia.gov.au/about -us/legislation/compulsory -licensing -manufacture -and-
export -patented .  
 
The Protocol was implemented in Australia on 25 August 2015. To date, no applications for a 
compulsory licence under the system has been made.  
 
2. Could Australia provide more details on how the scope of application of the current safe har bor 
regime in the event of copyright infringement was expanded, and what reception and 
consequences these measures brought in the development of the sector and users of internet 
service providers?  
 
RESPONSE:  In 2018 Australia made amendments to copyright l aw to improve the online 
enforcement of copyright and reduce the availability of infringing content online.  WT/TPR/M/396/Add.1  
 
- 74 - 
 
  Australia firstly reformed its copyright safe harbour scheme introduced in 2004 under the 
Copyright Act 1968 to extend the scheme from applying onl y to carriage service providers 
(CSPs) defined under the Telecommunications Act 1997 (that is telecommunications internet 
service providers) to the following additional online service providers:  
 
• educational institutions, including universities, schools,  technical colleges, training bodies and 
pre-schools;  
• libraries that either make their collection available to the public or are Parliamentary libraries;  
• archives, including the National Archives of Australia and specified state archives, galleries 
and museums;  
• key cultural institutions including specific archives and libraries that are not open to the 
general public; and  
• organisations assisting persons people with a disability, which undertake online activities 
under the scheme (i.e. caching, hosting of third party material).  
 
The effect of the reforms is that these sectors can work with copyright owners to take reasonable 
steps to reduce copyright infringement and reduce their liability for any potential infringement 
on their online systems.  
  
Secondly, the Government made cha nges in the 2018 Copyright Amendment (Online 
Infringement) Act to the operation of its copyright website blocking scheme which enabled 
injunctions to be extended to search engine providers, as well as CSPs. It broadens the range 
of infringing websites that  can be addressed through website blocking orders, and enabled the 
Court to make more responsive blocking orders.  
 
QUESTIONS ON THE GOVERNMENT REPORT (WT/TPR/G/396)  
 
2.19 During the reporting period, the Australian Government has sought to improve the 
comp etitiveness and overall performance of the Australian economy through a series of reforms and 
regulatory changes, including those aimed at strengthening competition and protection legislation 
consumers, reform taxation, increase investment in infrastructur e and reform the regulatory 
environment in which SMEs operate in order to minimize regulatory obstacles. The Government also 
launched a plan for the development of the digital economy and initiated a process aimed at boosting 
the competitiveness of the ser vice sector in Australia.  
 
Questions 1 -2 
1. Could Australia provide details on how it has implemented the plan for the development of the 
digital economy and its process to boost the competitiveness of the services sector?  
 
RESPONSE: Since the release of Aust ralia’s national strategy for Australia’s Tech Future on 19 
December 2018, the Australian Government has worked toward implementing a range of 
initiatives to develop the digital economy and boost the competitiveness of the services sector. 
These are ongoin g initiatives and are expected to continue through 2020 and beyond. 
Adjustments are being made to reflect ongoing consultation with relevant stakeholders, 
including industry. Examples of initiatives to develop the digital economy are:  
 
· ensuring that regu latory frameworks across all areas of the modern economy are fit for 
purpose. To this end, the Government is working to implement the recommendations from 
Digital Platforms Inquiry to address the impact of digital platforms on Australian consumers, 
busines s and society, particularly around privacy and use of data 
(https://www.accc.gov.au/publications/digital -platforms -inquiry -final-report ), identifying 
opportunities around blockchain technology ( https://www.industry.gov.au/data -and-
publications/national -blockchain -roadmap ), and developing responsible approaches to 
capturing t he potential of Artificial Intelligence development ( https://data61.csiro.au/en/Our -
Research/Our -Work/AI -Roadmap ); 
· building digital competence for SMEs ( https://www.business.gov.au/Grants -and-
Programs/Empowering -Business -to-go-Digital ), and  
· delivering the new Cyber Security Strategy ( https://www.cyber.gov.au/publications/small -
business -cyber -security -guide ).  
 WT/TPR/M/396/Add.1  
 
- 75 - 
 
  Additionally, to help establish Australia as a leading digital economy by 2030, the Australian 
Government set up a Digital Technology Tas kforce in late 2019 with members from across 
government ( https://www.pmc.gov.au/domestic -policy/digital -technology -taskforce#deac ).  
 
The taskforce is examining a range of issues, including ways the government can boost 
productivity through the increased uptake of digital technology, and how to use digital 
techn ology to benefit Australians while minimising harms.  
 
To help boost the competitiveness of Australia’s services sector, the Australian Government has 
been progressing an initiative to identify and address barriers to services exports and 
competitiveness, in close collaboration with industry. In August 2019, the services industry 
presented government with Industry's Recommendations - An Action Plan to Boost Australia's 
Services Exports; the Government released responses in November 2019. Greater details of 
industry recommendations and the Australian Government’s response is available from the 
following website:  
 
https://dfat.gov.au/trade/services -and-digital -trade/Pages/services -export -action -plan.aspx . 
 
2. Could Australia indicate what the impact of these measures has been and whether adjustments 
to them are considered?  
 
RESPONSE: It is too early to assess the impact of the relevant measures.  
 
Creative Industries  
Australia has had global recognition for its comparative advantages in the creative and cultural 
industries sector. He is known for being one of the pioneers in formulating a public policy aimed at 
this sector with the creation of the “ Creation Nation” project (1994) which has been in operation for 
more than 25 years, achieving a synergy between cultural policy, creative work, the insertion of the 
technological sector and the role that creative industries play within its economy.  
 
Questi ons 1 -3 
1. Could Australia report what results have been achieved in the creative industries sector on the 
occasion of the latest legislative reforms such as the extension to the GST regime; for digital 
products and services supplied to consumers in Australia  from other countries?  
 
RESPONSE: It is premature to comment on what impacts the reforms of GST relevant to 
imports of digital products have had on the cultural/creative industries sector.  
 
2. Could Australia report whether the reforms to the SME regulatory e nvironment include the 
creative industries sector and whether there are tax benefits for them, setting out the results 
obtained to date?  
 
RESPONSE: The reforms to the SME regulatory environment referred to in the Australian 
Government TPR Report were deve loped to aid business overall rather than being sector -
specific. Many businesses in the creative/cultural industries sector are MSMEs, and are 
benefitting from these reforms.  
 
While not related to reforms to the SME regulatory environment, the Australian Government 
does offer tax rebates for screen production, which have been in place since 2007. The 
Australian Screen Production Incentive is the Australian Government’s primary mechanism for 
providing support to the screen industry. It provides tax incentiv es for film, television and other 
screen production in Australia. Incentives under the Producer Offset, Post Digital and Visual 
Effects (PDV) Offset and Location Offset are calculated as a percentage of a production’s 
Qualifying Australian Production Expen diture (QAPE). Further information can be found at:  
 
www.arts.gov.au/what -we-do/screen/australian -screen -production -incentive . 
 
The Australian Government also supports organisations in the cultural and creative sector 
through other initiatives delivered through the tax system. For example, not -for-profit cul tural 
organisations can be granted Deductible Gift Recipient (DGR) status by being listed on the 
Register of Cultural Organisations. Individuals and companies that make donations to DGR WT/TPR/M/396/Add.1  
 
- 76 - 
 
  organisations can claim a tax deduction for the value of the donation,  making it easier for these 
organisations to raise funds from private donations.  
 
Another tax incentive program, the Cultural Gifts Program, allows donors of cultural property 
to receive a tax deduction for gifts made to public libraries, museums and art galleries 
(institutions) that have DGR status. The program supports institutions to expand their 
permanent, public collections by providing private collectors with an incentive to donate. For 
example, in 2017 -18 over $57 million of cultural property was va lued and donated under the 
program. Further information on these initiatives can be found at:  
 
www.arts.gov.au/what -we-do/cultural -heritage .  
 
3. Could Australia report whether economic stimulus measures to counter the slowdown in private 
consumption, such as investment in research, consider disbursements targeting the creative 
industries sector as a sector that may be more resilient to the effects of global financial crises?  
 
RESPONSE: The following report from the Bureau of Communications and Arts Research on 
‘Cultural and Creative Activity in Australia 2008 -09 to 2016 -17 provides relevant background 
on the economic performance of this sector of the Australian economy:  
 
https://www.communications.gov.au/publications/cultural -and-creative -activity -australia -
2008-09-2016-17.  
 
  WT/TPR/M/396/Add.1  
 
- 77 - 
 
  Costa Rica  
A. Informe de la Secretaría  
 
Página 9, párrafo 15  
15. Además de los amplios esfuerzos desplegados por simplificar y racionalizar el régimen 
reglamentario, en especial en favor de las pequeñas empresas, se redujo el tipo del impuesto sobre 
sociedades del 30,0% al 27,5% en e l caso de determinadas empresas. El tipo reducido del impuesto, 
inicialmente aplicable a las empresas con una cifra de negocios global inferior a AUD 2 millones, se 
aplica ahora a las empresas con una cifra de negocios anual inferior a AUD 50 millones, y e ntraron 
en vigor nuevas concesiones fiscales para las empresas más pequeñas. Además, se proporciona 
asistencia a la producción mediante donaciones, préstamos en condiciones de favor y concesiones 
arancelarias. Según la Comisión de Productividad, en 2017/20 18 alrededor del 70% de la ayuda 
presupuestaria medida estuvo dirigida directamente a la investigación y desarrollo y a las pequeñas 
empresas.  
 
Question 1  
1. ¿Cuáles son las nuevas concesiones fiscales aplicables a las empresas más pequeñas? ¿Qué 
porcentaje r epresentan las empresas beneficiadas con dichas concesiones del total de empresas 
en el país? ¿Qué requisitos deben cumplir para ser categorizadas como “más pequeñas”?  
 
RESPONSE: The unincorporated small business tax discount rate (which applies for 
unincorporated small businesses with an aggregated turnover below AU$5 million) will rise from 
8 per cent currently to 13 per cent in 2020 -21 and to 16 per cent in 2021 -22 and subsequen t 
years (up to the existing cap of AU$1,000 a year). This will benefit up to 2.4 million businesses.  
 
The instant asset write -off has been increased to AU$30,000, and access expanded to include 
medium ‑sized businesses with an annual turnover of less than AU$50 million, until 30 June 
2020.  The threshold applies on a per asset basis, so eligible businesses can instantly write off 
multiple assets. Around 3.4 million small and medium businesses with annual turnover less than 
AU$50 million are eligible to acce ss the instant access write -off. 
 
Página 29, párrafo 2.14  
2.14. Australia fue una de las primeras partes contratantes del GATT y ha sido Miembro de la OMC 
desde su fundación en 1995. Concede al menos el trato de nación más favorecida (NMF) a todos sus 
interlocutores comerciales. Durante el período que se examina, Australia ratificó el Acuerdo sobre 
Facilitación del Comercio (AFC) de la OMC (el 9 de junio de 2015) y ha cumplido el 100% de los 
compromisos contraídos hasta la fecha en el marco de todas las cat egorías.13 Además, Australia se 
adhirió al Acuerdo sobre Contratación Pública de la OMC, de carácter plurilateral, tras presentar su 
instrumento de adhesión a la Secretaría de la OMC el 5 de abril de 2019.14 Asimismo, en 2015, 
acordó ampliar la cobertura d el Acuerdo sobre Tecnología de la Información (ATI) para abarcar 201 
productos más.  
 
Question 2  
2. Australia ratificó el Acuerdo sobre Facilitación del Comercio en junio de 2015 y ha cumplido al 
100% sus compromisos. ¿Cuál es la dinámica operativa y la normat iva interna bajo la cual se 
rige su Comité Nacional de Facilitación del Comercio, según lo estipulado en el artículo 23 del 
AFC? 
 
RESPONSE: The National Committee on Trade Facilitation (NCTF) is a strategic -level whole -of-
government forum to oversee the implementation of Australia’s obligations under the WTO 
Agreement on Trade Facilitation. Australia’s NCTF operates in accordance with their Terms of 
Reference (ToR), and an annual work program, which provide the internal governance and 
strategic direction of the NCTF. The NCTF has established three working groups focused on 
trade facilitation initiatives, legislation, and trade and goods compliance. Each working groups 
has their own ToR and aligns with the NCTF work program. The Chair of the NCTF is the Dep uty 
Comptroller -General of Customs, Customs Group, Australian Border Force (ABF). The NCTF 
comprises representatives of government agencies and industry stakeholders. Membership is 
reviewed every two years or at the discretion of the Chair. The deliberatio ns and 
recommendations of the NCTF, and its working groups, are reported to the Commissioner and 
Senior Executive of the ABF for their consideration and action as appropriate. The NCTF forms 
a key part of the Home Affairs Portfolio’s industry engagement pr ogram.  WT/TPR/M/396/Add.1  
 
- 78 - 
 
  For more information please refer to the Industry Engagement Strategy:  
https://www.abf.gov.au/trade -and-goods -compliance -subsite/files/ ies-trade -customs -
traveller.pdf .  
And the Department of Home Affairs website:  
https://www.homeaffairs.gov.au/help -and-support/how -to-engage -us/committees -and-fora). 
 
Página 37, párrafo 2.42  
2.42. En el período objeto de examen se aprobó la gran mayoría de las solicitudes remitidas a la 
Junta de Examen de las Inversiones Extranjeras, ya que solo se rechazaron 13 y se denegaron 3 
(cuadro 2.1). En términos de valor, entre 2013/2014 y 2017/2018 se aprobaron solicitudes por una 
cuantía de AUD 968.000 millones. Los Estados inversores que presentaron las propuestas de 
inversión con mayor valor acumulado fueron los Estados Unidos, China, el Reino Unido, Singapur y 
el Canadá (gráfico 2.1).61 Según las autoridades, si se excluye el sector inmobiliario residencial, las 
propuestas de inversión rara vez son rechazadas. En muy pocos casos se produce un rechazo 
categórico, dado que en los sectores sensibles las preocupacion es relativas al interés nacional 
pueden abordarse aplicando medidas de mitigación adecuadas.  
 
Question 3  
3. ¿Podría Australia por favor brindar algunos ejemplos de lo que considera “medidas de mitigación 
adecuadas”?  
 
RESPONSE: Appropriate mitigation measures are generally implemented by placing conditions 
on foreign investment approvals. Australia provides information about certain types of 
conditions on the Foreign Investment Review Board website (www.firb.gov.au), including in 
Guidance Notes 19 and 47, which  provide information on vacant land conditions and tax 
conditions respectively.  
 
Página 41, párrafo 3.2  
3.2. Para las importaciones con un valor superior a AUD 1.000 se debe presentar una declaración 
de importación íntegra (FID).2 Las FID han de incluir información fundamental tanto sobre la carga, 
como sobre el propietario, el proveedor, el valor, detalles relativos al transporte e información sobre 
la protección de la comunidad (según proceda).3 También deben citarse los permisos de 
importación, en caso de precisarlo el organismo que expide la licencia.4 Casi la totalidad de las 
transacciones de importación  (sin contar la mayoría de envíos postales internacionales) se tramitan 
electrónicamente a través del sistema integrado de carga y descarga (ICS), una ventanilla única que 
posibilita la coordinación de los procedimientos de despacho de aduana y cuarentena.  La información 
puede ser presentada telemáticamente por los propios importadores o por un agente de aduanas 
autorizado que actúe en nombre de ellos o, en algunas circunstancias, se puede presentar 
manualmente en una ventanilla de las Fuerzas de Seguridad Fronteriza de Australia. El ICS necesita 
el cumplimiento activo de las ramas de producción para posibilitar evaluaciones exactas del riesgo 
y el rápido movimiento de mercancías de bajo riesgo; por otro lado, se han instalado tecnologías 
sofisticadas de ges tión del riesgo para que los funcionarios de las Fuerzas de Seguridad Fronteriza 
de Australia puedan detectar cargas de alto riesgo y artículos prohibidos. La comunicación entre los 
usuarios de las ramas de producción y el ICS se lleva a cabo mediante una de estas plataformas en 
línea: Cargo Interactive o el sistema de intercambio electrónico de datos.5 El ICS permite que los 
usuarios registrados de las ramas de producción sigan el movimiento de sus mercancías (con fines 
legítimos). Las Fuerzas de Seguridad  Fronteriza de Australia han elaborado diversos manuales y 
guías para que estos usuarios accedan al ICS de la manera más eficiente posible. Las secciones en 
la esfera del cumplimiento de las Fuerzas de Seguridad Fronteriza de Australia llevan a cabo 
contro les de auditoría periódicos para garantizar que la información de las declaraciones de 
importación concuerda con la documentación adjunta y las características de la carga física. Los 
documentos comerciales relativos a las cargas declaradas se deben conser var durante cinco años 
como mínimo.  
 
Question 4  
4. ¿El sistema integrado de carga y descarga (ICS) además de posibilitar los procedimientos de 
despacho de aduana y cuarentena, permite el perfilamiento de las mercancías y/o carga?  
 
RESPONSE: Yes, data collected in the ICS enables profiling of goods and cargo.  
 
 
 WT/TPR/M/396/Add.1  
 
- 79 - 
 
  Página 42, párrafo 3.6  
3.6. Los ATT se consideran empresas de bajo riesgo y reciben un trato prioritario en la frontera, a 
saber, una mayor rapidez en la tramitación y un menor número de interve nciones. También se les 
otorga un trato prioritario en cuanto a cuestiones como las resoluciones anticipadas (clasificación 
aduanera, valoración, normas de origen, etc.), los exámenes, los reembolsos y los reintegros de 
derechos. Las Fuerzas de Seguridad F ronteriza de Australia designan a uno de sus funcionarios como 
gestor de cuentas para los ATT que actuará como único punto de contacto para toda cuestión que 
pueda plantearse. Otros beneficios son, por ejemplo, la reducción de las cargas aplicables a la 
tramitación, dado que se puede presentar una sola declaración de importación respecto de múltiples 
informes de carga, y la consolidación de los pagos de derechos de aduana en una sola transacción 
mensual para los ATT que hayan concertado acuerdos similares c on la Oficina de Impuestos de 
Australia para el pago del impuesto sobre bienes y servicios. Los ATT también tienen acceso a 
requisitos de documentación simplificados por lo que respecta al origen de las importaciones 
procedentes de Chile; China; Corea, Rep ública de; el Japón; Malasia; Singapur; y Tailandia.  
 
Question 5  
5. ¿Podría Australia por favor brindar mayor información, incluyendo los beneficios, sobre el 
programa ATT?  
 
RESPONSE: Detailed information on Australian Trusted Trader (ATT) can be found on th e 
Australian Border Force (ABF) website at:  
https://www.abf.gov.au/about -us/what -we-do/trustedtrader/overview .  
 
ATT currently has 13 benefits for Trusted Traders that are detailed on the ABF website at:  
https://www.abf.gov.au/about -us/what -we-do/trustedtrader/benefits . 
 
Página 42, párrafo 3.7  
3.7. A 2 de agosto de 2019 había 495 ATT acreditado s y otras 195 solicitudes se encontraban en 
distintas etapas de tramitación. El objetivo fijado consistía en alcanzar los 1.000 ATT para 2020, 
cifra que constituiría el 30% del comercio de Australia en términos de volumen (y el 50% en términos 
de valor).8 El Gobierno ha concertado acuerdos de reconocimiento mutuo (ARM) que posibilitan el 
acceso de los ATT a los beneficios en materia de facilitación del comercio (como la tramitación 
prioritaria) en ocho interlocutores comerciales.9 Además, el Gobierno tiene el propósito de celebrar 
nuevos ARM. Las autoridades estiman que el Programa ATT generará beneficios por un valor de AUD 
3.500 millones en términos nominales durante el período 2015/2025 y prevén que, de esa cantidad, 
AUD 2.800 millones se deriven de la tr amitación rápida y simplificada en los interlocutores en el 
marco de ARM.  
 
Question 6  
6. ¿Qué porcentaje de los ATT acreditados utilizan los ARM? ¿Los ARM brindan beneficios 
adicionales que los establecidos por el programa ATT?  
 
RESPONSE: Mutual Recognition Arrangements (MRAs) are a benefit under ATT. MRA -partner 
economies recognise Australian Trusted Traders and provide Trusted Trader exporters with 
preferential treatment of their goods when the goods arrive at the border of each respective 
MRA p artner. All Australian Trusted Traders who export to our MRA partner economies are 
eligible to receive the benefit of having their Authorized Economic Operator (AEO) status 
recognised by the partner customs administration.  
 
Página 44, párrafo 3.15  
3.15. Las Fuerzas de Seguridad Fronteriza de Australia pueden emitir resoluciones formales sobre 
cuestiones relativas al origen a petición de los importadores (resoluciones anticipadas en materia de 
origen). En ellas se determina si las mercancías reúnen l as condiciones para solicitar un trato 
preferencial en el marco de un esquema de preferencias unilateral o un acuerdo preferencial regional 
o bilateral.  
 
Question 7  
7. ¿Podría Australia por favor brindar información sobre el trámite o procedimiento para solic itar 
resoluciones anticipadas en materia de origen al amparo del SGP?  
 
RESPONSE: The ABF provides written advice, upon request, for determining whether a good 
originates for the purposes of claiming preferences under the Australian System of Tariff WT/TPR/M/396/Add.1  
 
- 80 - 
 
  Prefere nces (Australia's GSP Scheme) to Australian importers of goods, as well as exporters and 
producers of those goods that are located in a ASTP country.  
• Origin Advice Guide: https://www.abf.gov.au/free -trade -agreements/files/origin -
advice -guide.pdf . 
• B659 – Application for Origin Advice Ruling: https://www.abf.gov.au/form -
listing/forms/b659.pdf . 
 
Página 50, párrafo 3.28  
3.28. Las industrias manufactureras nacionales también pueden solicitar desgravaciones 
arancelarias con respecto a determinados insumos en el marco de la partida 50 en virtud de u n 
sistema de concesiones fiscales denominado Programa de concesiones arancelarias (TCS), que se 
basa en las órdenes en materia de concesiones arancelarias (TCO) y de cuya gestión se ocupan las 
Fuerzas de Seguridad Fronteriza de Australia. Las TCO se pueden  tomar en consideración cuando no 
se tiene constancia de ningún fabricante australiano de las mercancías que puedan ser reemplazadas 
por las mercancías importadas de que se trate. Actualmente hay más de 15.000 TCO en vigor y cada 
mes se emiten unas 60 nuev as órdenes. Tras su publicación, las TCO son aplicables a todos los 
importadores del producto o los productos abarcados, y no solo al importador que presente la 
solicitud. El Controlador General de Aduanas puede determinar que una TCO ha dejado de ser 
necesaria en caso de que no haya sido citada en ninguna declaración de importación en un plazo de 
dos años. Los fabricantes australianos también pueden impugnar una TCO y solicitar su revocación. 
Cada año se revocan, de media, unas 700 TCO. Las modificaciones introducidas en el TCS, incluidas 
las medidas propuestas, se anuncian en la Tariff Concessions Gazette ("Gaceta de Concesiones 
Arancelarias") del Commonwealth de Australia, una publicación de periodicidad semanal.  
 
Question 8  
8. ¿Cuál es el proceso por seguir para solicitar la desgravación arancelaria? ¿De cuánto es el plazo 
de resolución de este? ¿Se debe presentar algún documento adicional para beneficiarse de esta 
desgravación al momento de importación?  
 
RESPONSE: To apply for a tariff reduction throu gh a Tarrif Concession Order (TCO), an importer 
must lodge the approved form to the Australian Border Force (ABF) and provide reasonable 
grounds to assert that an Australian manufacturer of substitutable goods does not exist. The 
ABF has 150 days after rec eiving a valid application for a TCO to decide whether that TCO 
should be granted. If a TCO application is not decided within that 150 -day period, the TCO 
application will be rejected.  
 
If a TCO covering the goods being imported already exists, the import er will show on an import 
declaration the current TCO that applies to the goods being imported or a by -law or allocated 
determination. The goods being imported must precisely meet the description given in the TCO.  
 
Additional documents are not required to  be lodged at the time of importation however; pre 
and post entry audits may be conducted.  
 
Página 70, párrafo 3.67  
3.67. El Programa de Concesiones para el Comercio y la Exportación (Tradex) es administrado por 
AusIndustry -Support for Business, de conform idad con la Ley del Programa Tradex de 1999. En su 
marco se otorga a los exportadores una exención directa de los derechos de aduana y el GST sobre 
las mercancías importadas en Australia y exportadas en el plazo de un año (a menos que se haya 
aprobado una prórroga).60 Las mercancías se deben exportar en el mismo estado en que se 
importaron, tratar o transformar antes de la exportación, o incorporar en otros productos para su 
posterior exportación. Los beneficiarios deben obtener una orden en el marco del Tr adex antes de 
importar las mercancías. Las solicitudes de esas órdenes se presentan en la oficina local de 
AusIndustry, utilizando el formulario prescrito, y se suelen tramitar en unos pocos días. En 
2018/2019 se expidieron 1.201 órdenes del Tradex, y los ingresos fiscales sacrificados ascendieron 
en total a AUD 157.171.  
 
Question 9  
9. ¿El programa mencionado en el párrafo 3.67 (Tradex) prevé la posibilidad de que las mercancías 
se puedan vender en el mercado doméstico o estas deben ser necesariamente exportadas?  
 
RESPONSE: Goods imported under the Tradex Scheme must be exported to benefit from the 
scheme's GST and customs duty relief. Goods imported under the Tradex Scheme and not WT/TPR/M/396/Add.1  
 
- 81 - 
 
  exported will be liable for Tradex duty (equal to the cus toms duty that otherwise would have 
been levied on the imports if the goods had not entered under the Tradex scheme. GST may 
also be liable on the goods not exported.  
 
Páginas 71 -73, párrafos 3.71 y 3.80  
3.71. Export Finance Australia, denominado hasta el 1º de julio de 2019 Corporación de Financiación 
y Seguro de las Exportaciones (EFIC), es el organismo de crédito a la exportación de propiedad 
exclusiva del Gobierno. Este organismo, que en la Ley de Gobernanza, Rendimiento y Rendición de 
Cuentas del Secto r Público (Ley PGPA) de 2013 se define como una persona jurídica del 
Commonwealth, rinde informe al Ministro de Comercio, Turismo e Inversiones (Ministro de 
Comercio). Export Finance Australia trabaja en estrecha colaboración con bancos, otras institucione s 
financieras y asociados como el DFAT y Austrade, a fin de proporcionar financiación para las 
exportaciones australianas y el desarrollo de infraestructura en el extranjero, con inclusión de 
préstamos, avales, garantías y seguros contra el impago resultan te de riesgos comerciales o 
políticos.63 Ofrece soluciones financieras, en condiciones comerciales de mercado, a pequeñas y 
medianas empresas (pymes), gobiernos y grandes empresas de varios sectores en los que no se 
dispone de fuentes comerciales normales de financiación (a lo que se denomina "vacío de mercado"). 
El Gobierno garantiza la deuda de Export Finance Australia. No obstante, esa garantía nunca se ha 
utilizado.  
 
3.80. La Ley de la EFIC exige que determinadas transacciones de exportación incluyan c ontenido 
australiano o reporten beneficios a Australia, para poder recibir financiación de Export Finance 
Australia. La Declaración de Expectativas exige asimismo que haya un contenido australiano 
importante y/o beneficios atribuibles a los proyectos de re cursos nacionales y extranjeros apoyados 
por Export Finance Australia. Con arreglo a la política de beneficios para Australia aplicada por el 
organismo, la evaluación del contenido/beneficio nacional de un proyecto propuesto puede incluir 
factores como los  siguientes: contenido o insumos australianos; participación australiana (incluidas 
las pymes) en las cadenas de suministro; oportunidades de acceso a nuevos mercados para las 
empresas australianas; aumento del empleo australiano; pagos o dividendos; u otr os beneficios 
financieros para Australia procedentes del extranjero. Export Finance Australia lleva a cabo su debida 
diligencia (que incluye la búsqueda de representaciones de los solicitantes) para verificar el 
cumplimiento de esos requisitos. Esas evalua ciones son sometidas a auditoría de forma aleatoria y 
periódica para verificar los datos y asegurar el cumplimiento de las obligaciones pertinentes.  
 
Question 10  
10. ¿Cómo se enmarca Export Finance Australia en los compromisos asumidos bajo el artículo 3 del 
ASMC? Favor ampliar en cómo este programa cumple con lo establecido en el artículo 3 del 
ASMC y cómo el requisito de utilización de contenido/insumos australianos no violan el principio 
de trato nacional.  
 
RESPONSE: Export Finance Australia (EFA) is Austral ia’s export credit agency and is similar to 
other such bodies operated by many governments around the world. It provides insurance, 
guarantees and financial services and products in support of Australian exporters where the 
commercial market is unable to p rovide support, including infrastructure development in the 
Pacific region and beyond.  
  
EFA is instructed to conduct its operations on a commercial basis. It is also instructed to comply 
with the Australian Government’s obligations under the OECD Arrangement on Guidelines for 
Officially Supported Export Credits (the Arrangement). The Arrangem ent establishes minimum 
lending rates and maximum repayment terms.  
 
Consistent with the principle of national treatment, EFA may provide support to Australian -
owned or foreign -invested companies registered in Australia that export goods wholly or 
substant ially produced in Australia and as otherwise defined in the Export Finance and Insurance 
Corporation Act 1991 (Cth).  
 
Página 80, párrafo 3.105  
3.105. La entrada de alimentos en Australia está sujeta a la Ley de Control de los Alimentos 
Importados de 1992 y  al Reglamento de Control de los Alimentos Importados de 1993.90 La Ley fue 
modificada en 2018 mediante la Ley de Modificación de la Ley de Control de los Alimentos 
Importados de 2018, a fin de reforzar el sistema de inocuidad de los alimentos importados. Esta Ley 
afecta al funcionamiento del Sistema de Inspección de los Alimentos Importados, basado en el WT/TPR/M/396/Add.1  
 
- 82 - 
 
  riesgo, ya que eleva el grado de responsabilidad de los importadores con respecto a la inocuidad de 
los alimentos y al suministro de alimentos inocuos. As imismo, refuerza la vigilancia y la gestión de 
los nuevos riesgos emergentes para la inocuidad de los alimentos, así como la respuesta a 
incidentes. En el caso de determinados alimentos importados, el Ministerio de Agricultura exige 
pruebas de que se han r ealizado controles en toda la cadena para demostrar que los riesgos para la 
inocuidad de los alimentos se han gestionado de manera efectiva durante la producción. El Ministerio 
mantiene un acuerdo con los Estados Unidos para todo el sistema (Acuerdo de Rec onocimiento de 
la Inocuidad de los Alimentos) desde abril de 2017, así como una serie de acuerdos 
intergubernamentales de certificación con otros países para determinados alimentos importados. En 
total, existen 16 acuerdos de certificación con autoridades competentes nacionales, que abarcan 
toda una gama de alimentos de alto riesgo, como los productos marinos, la carne de bovino y el 
queso de leche cruda.  
 
Question 11  
11. Se indica que el Ministerio de Agricultura mantiene un acuerdo con los Estados Unidos par a todo 
el sistema (Acuerdo de Reconocimiento de la Inocuidad de los Alimentos) desde abril de 2017. 
¿Es este un acuerdo en doble vía? ¿Se refiere este acuerdo a que los productos australianos 
pueden ingresar más fácilmente a los Estados Unidos en materia d e inocuidad de los alimentos? 
¿Qué productos se benefician específicamente de este acuerdo? ¿Incluye alimentos frescos? 
¿Podría Australia brindar un link en Internet en donde se pueda revisar el acuerdo?  
 
RESPONSE: In April 2017, the (then) Department of A griculture and Water Resources signed 
a two -way agreement with the United States Food and Drug Administration (US FDA) 
recognising that Australia’s food safety system and the US’s food safety system, as administered 
by US FDA, are comparable to each other.  The purpose of the agreement is to reduce the rate 
of import inspection and analysis of a food covered by the agreement, on the basis that the 
food has been produced under an equivalent food safety system in the exporting country. Foods 
covered by this ag reement include canned foods (except those containing beef), most seafood, 
most dairy products, fresh fruit and vegetables, fruit juices, confectionery, baked goods and 
game meat. Food not covered by this agreement include meat (except game meat), poultry,  
processed egg products, raw bivalve molluscan shellfish, raw milk cheese, and dietary 
supplements and natural health products. The Department's website provides more information 
about Food Safety Recognition Agreements, including the current agreement wit h the US FDA.  
https://www.agriculture.gov.au/export/from -australia/food -safety -recognition -agreements . 
 
Página 92, párrafo 3.149  
3.149. En las licitaciones convocadas por los organismos del Gobierno del Commonwealth deben 
respetarse otros principios, como la política de  contratación a empresas indígenas, los principios de 
contratación en materia de igualdad de oportunidades para las mujeres en el lugar de trabajo y la 
guía del usuario. La política de contratación a empresas indígenas, que empezó a aplicarse el 1º de 
julio de 2015, exige que las entidades del Commonwealth adjudiquen el 3% de los contratos a 
empresas indígenas para 2020. Desde 2015/2016 se aplican objetivos intermedios cada año.  Los 
principios de contratación en materia de igualdad de oportunidades para la s mujeres en el lugar de 
trabajo y la guía del usuario exigen que los empleadores australianos del sector no público con 100 
o más empleados presenten una carta de cumplimiento de sus obligaciones en virtud de la Ley de 
Igualdad de Oportunidades para las M ujeres en el Lugar de Trabajo de 2012. Asimismo, con arreglo 
al marco nacional de participación de la industria australiana (AIP), podrá exigirse a los 
adjudicatarios de contratos públicos del Commonwealth cuyo valor sea igual o superior a AUD 20 
millones que elaboren y apliquen un plan de participación de la industria australiana, en el que 
expongan cómo brindarán una oportunidad plena, equitativa y razonable a las empresas para que 
participen en el proyecto. Los planes de AIP no exigen que se recurra a em presas australianas, sino 
que el objetivo es ofrecerles la oportunidad de demostrar su capacidad para que puedan ser tenidas 
en cuenta en las decisiones de compra.  
 
Question 12  
12. ¿Podría Australia brindar más información sobre la política de contratación a e mpresas 
indígenas, en específico si pudieran aclarar si los objetivos intermedios que se han aplicado 
desde 2015 son los porcentajes de contratos que se deben adjudicar a empresas indígenas y 
de ser así, si estos se han cumplido?  
 
RESPONSE: Yes, the interi m targets are for the percentage of contracts awarded to Indigenous 
businesses, and these targets have been achieved.  WT/TPR/M/396/Add.1  
 
- 83 - 
 
  Further information can be found on this website - https://www.niaa.gov.au/indigenous -
affairs/economic -development/indigenous -procurement -policy -ipp. 
 
Página 104, párrafo 3.204  
3.204. Durante el período objeto de examen, el Gobierno puso en marcha reformas decisivas para 
reducir las infracciones en línea del derecho de autor. Mediante la Ley de Modificación de la Ley de 
Derecho de Autor (Infracciones en línea) de 2015 se modificó la Ley de Derecho de Autor para que 
los titulares de derechos de autor pudieran solicitar ante  el Tribunal Federal de Australia un 
"mandamiento judicial de bloqueo", es decir, una orden que obligue a un proveedor de servicios de 
telecomunicaciones a bloquear el acceso a un sitio en línea fuera de Australia que tenga como 
principal finalidad infring ir el derecho de autor o facilitar su infracción. La Ley de Modificación de la 
Ley de Derecho de Autor (Infracciones en línea) de 2018 reforzó las disposiciones en materia de 
mandamientos judiciales de bloqueo, al ampliar su aplicación a los sitios web que  tengan como 
efecto principal infringir el derecho de autor o facilitar su infracción; permitir que se dicten 
mandamientos judiciales contra proveedores de motores de búsqueda; introducir una presunción 
refutable de que el sitio en línea está fuera de Aust ralia; y establecer un mecanismo para que los 
titulares de derechos de autor y los proveedores de servicios de telecomunicaciones puedan convenir 
posteriormente en bloquear otros dominios relacionados.  
 
Question 13  
13. Costa Rica reconoce el avance realizado p or Australia para fortalecer su marco normativo en 
materia de derechos de autor. ¿Puede Australia dar más detalle sobre el mecanismo para que 
los titulares de derechos de autor y los proveedores de servicios de telecomunicaciones puedan 
convenir en bloquea r los dominios relacionados?  
 
RESPONSE: Section 115A of the Copyright Act 1968 allows a copyright owner to apply to the 
Federal Court of Australia (Court) for a court order that requires a telecommunications service 
provider (Carriage Service Provider - CSP) to block access to an overseas online location that 
has the primary purpose or primary effect of infringing, or facilitating the infringement of 
copyright. It is the Court that makes the decision to grant the injunction, based on a wide range 
of factors  to ensure that the interests of CSPs and the operator of the online location are taken 
into account before the Court issues the blocking order.  
 
Página 139, párrafo 4.109  
4.109. Con arreglo a las disposiciones de la ley, no se pueden ofrecer seguros de vi da y seguros 
generales simultáneamente por medio de una misma entidad. Las entidades extranjeras solo pueden 
asegurar bienes nacionales si se satisfacen determinadas condiciones, por ejemplo, si se trata de 
objetos asegurados de gran valor, de riesgos atíp icos o de riesgos que no es posible, 
razonablemente, asegurar en Australia.  
 
Question 14  
14. ¿Podría Australia por favor brindar más información sobre esta limitación al comercio de 
servicios por parte de entidades extranjeras, en particular desde el punto de vista del comercio 
transfronterizo?  
 
RESPONSE: The second sentence in paragraph 4.109 addresses the specific circumstances of 
an Australian seeking to access insurance services from a foreign general insurer that has not 
been authorised to operate in Austr alia. This is in addition to the more usual situation outlined 
in paragraphs 4.110 and 4.111, in which Australians can access foreign general insurers via an 
authorised branch or a domestic subsidiary of a foreign general insurance company. Foreign 
compani es are able to establish subsidiaries in Australia to write general insurance business in 
Australia and are able to acquire interests in Australian general insurance companies (subject 
to meeting requirements in relation to the ownership of such companies as set out in the 
Financial Sector Shareholdings Act 1998 (Cth) and the Foreign Acquisitions and Takeovers Act 
1995 (Cth)). As stated, there is no restriction on the number and size of authorised foreign 
general insurers, and the legal, capital and other r equirements placed upon an authorised 
foreign general insurance branch are very similar to those placed upon an Australian general 
insurer - whether domestic or foreign owned.  
 
Further, Australian general insurers are not restricted from accessing unauthor ised foreign 
reinsurance, although there may be capital implications for doing so.  
 WT/TPR/M/396/Add.1  
 
- 84 - 
 
  Página 145, párrafo 4.137  
4.137. El régimen normativo que rige el sector cinematográfico incluye cuotas de contenido 
australiano y subcuotas de contenido infantil, document ales y obras teatrales australianas. Estas 
cuotas se aplican a la radiodifusión en abierto y a la televisión de pago y garantizan que se produzca 
y difunda un mínimo de contenido cinematográfico de origen australiano.  
 
Question 15  
15. ¿Podría Australia brinda r más información sobre las cuotas de contenido establecidas en la 
radiodifusión abierta y los parámetros para calificar que el contenido encaja dentro de las 
cuotas? ¿Existen mecanismos o excepciones que permitan un mayor acceso a proveedores 
extranjeros,  considerando que las cadenas de valor de la industria audiovisual están cada vez 
más globalizadas?  
 
RESPONSE: One of the objectives of the Broadcasting Services Act 1992  (BSA) is to promote 
the role of broadcasting services in developing and reflecting a sense of Australian identity, 
character and cultural diversity. This objective is promoted via, among other things, 
programming quotas which require minimum amounts of co ntent produced under the creative 
control of Australians to be broadcast by commercial television broadcasting licensees. In 
particular, the BSA:  
 
• Sets transmission quotas, requiring commercial television broadcasting licensees to 
transmit minimum amounts of Australian content on their primary channels and their 
multi-channels.  
• Requires the Australian Communications and Media Authority (ACMA) to determine 
program standards relating to Australian programming, Australian content in 
advertising and programs fo r children that are to be observed by commercial television 
broadcasting licensees. The current standards are the Broadcasting Services (Australian 
Content) Standard 2016; the Children's Television Standards 2009; and the 
Broadcasting Services (Australian Content in Advertising) Standard 2018. The ACMA is 
the independent Commonwealth statutory authority that regulates communications and 
media services in Australia.  
 
Generally, a program is regarded as an Australian program if it satisfies the definition in  section 
7 of the Broadcasting Services (Australian Content) Standard 2016 including being produced 
under the creative control of Australians.  
 
New Zealand programs (programs produced under the creative control of New Zealanders) and 
Australian official co -productions are treated as "Australian programs" for the purposes of the 
obligations. This is to ensure the obligations are consistent with Australia’s international 
co‑production obligations and the Protocol on Trade in Services to the Australia New Zeal and 
Closer Economic Relations Trade Agreement.  
 
The co -regulatory Commercial Radio Code of Practice also includes the Australian music quota 
obligations that apply to commercial radio broadcasting licensees (in section 5).  
 
Página 145, párrafo 4.139  
4.139. Existen tres incentivos fiscales diferentes para la producción de películas y programas de 
televisión en Australia, a saber: la compensación por productor, la compensación por localización y 
la compensación por posproducción y efectos digitales y vi suales.  
 
Question 16  
16. ¿Podría Australia por favor indicar si se han elaborado estudios sobre el impacto de otorgar 
estos incentivos fiscales en la atracción de inversión y promoción del sector audiovisual local, y 
de ser así, los resultados que se han obten ido? 
 
RESPONSE: A number of inquiries and reviews have been undertaken that have looked at the 
impact and effectiveness of the Australian Government's screen support policies.  
 
• Inquiry into factors contributing to the growth and sustainability of the Australian film 
and television industry. The report can be found here - 
https://www.aph.gov.au/Parliamentary_Business/Committees/House/Communications
/AustralianfilmandTV . WT/TPR/M/396/Add.1  
 
- 85 - 
 
  • Review of Australian and Children’s Screen Content. The report has not been publically 
released but information about the review can be found here -  
https://www.communications.gov.au/australian -childrens -screen -content -review . 
• Economic Contribution of the Motion Picture and Television Industry in Australia. The 
report can be found here - https://anzsa.film/wp -content/uploads/2020/02/Study -on-
the-Economic -Contribution -of-the-Motion -Picture -and-Television -Industry -in-
Australia_Final -Report.pdf . 
 
B. Informe de Gobierno  
 
Página 10, párrafo 3.1  
3.1. En el período objeto de examen, el Gobierno ha aplicado un ambicioso programa de comercio 
internacional  con el fin de fomentar la prosperidad de Australia. Los principales elementos han sido, 
y siguen siendo, los siguientes: resistencia al proteccionismo; refuerzo del apoyo a un sistema de 
comercio abierto basado en normas; mejora del acceso y las oportunid ades para las empresas 
australianas; y aumento de la competitividad de Australia.  
 
Question 17  
17. ¿Qué medidas se han aplicado en el marco del programa de comercio internacional? ¿Qué 
resultados se han observado? ¿Cuánto es el plazo de aplicación de este prog rama?  
 
RESPONSE: Australia’s international trade strategy is broad ranging and covers a diverse range 
of policies and activities. Key aspects include multilateral, regional and bilateral trade 
negotiations and implementation activities, including in relati on to the WTO itself; as well as 
various trade policy related activities undertaken within international organisations such as the 
OECD, APEC, UNCTAD and the World Customs Organization. A range of trade activities are also 
undertaken as part of our economi c and commercial diplomacy initiative. The following links 
provide further detail:  
 
• https://www.fpwhitepaper.gov.au/foreign -policy -white -paper  (see especially chapters 
1 and 4)  
• https://www.dfat.gov.au/trade/Pages/trade -and-investment.aspx  
• https://www.dfat.gov.au/trade/resources/publications/Pages/benefits -of-trade-and-
investment.aspx . 
 
Página 19, párrafo 3.65  
3.65. Australia trabaja en el APEC para fom entar el apoyo a los mercados abiertos y al sistema 
multilateral de comercio basado en normas y para oponer resistencia al proteccionismo. Las 
prioridades de Australia comprenden: promover las oportunidades que ofrece la economía digital; 
aplicar iniciativ as prácticas encaminadas a apoyar la integración regional y conducentes, en último 
término, al establecimiento de una Zona de Libre Comercio de Asia y el Pacífico (FTAAP); apoyar a 
las economías en desarrollo del APEC para que realicen reformas estructural es que promuevan el 
crecimiento económico; invertir en el empoderamiento económico de las mujeres; poner en práctica 
la Hoja de Ruta del APEC sobre la Competitividad de los Servicios, y contribuir al desarrollo de la 
visión del APEC posterior a 2020 en pro  de la integración económica regional.  
 
Question 18  
18. ¿Podría Australia por favor comentar sobre las acciones que ejecuta en el marco de APEC en 
relación con su prioridad de promover las oportunidades que ofrece la economía digital?  
 
RESPONSE: A key priority for Australia in APEC is to foster the growth of digital trade through 
greater regional cooperation, with a focus on the objectives of shaping an enabling environment 
for digital trade and supporting economies to enhance their participation in the  digital economy. 
This links to other work in the region, such as through ASEAN, the G20 and the OECD.  
 
Australia will focus on encouraging APEC participation in setting standards for digital trade, 
marshalling support for regulatory coherence, enhancing o nline consumer protection (including 
work to support Australia’s implementation of APEC’s Cross -Border Privacy Rules System, and 
encourage other economies to participate in the System) and improving business engagement 
on digital trade. Collectively, work in these areas would help to shape digital trade rules.  
 WT/TPR/M/396/Add.1  
 
- 86 - 
 
  In November 2018, the Minister for Trade, Tourism and Investment announced Australia would 
contribute AU$1.1 million towards digital trade initiatives in APEC. Funds will contribute to 
Australia -led capacity building activities, including a Digital Symposium to be held in April 2020.  
 
Página 21, párrafo 3.78  
3.78. Australia también quiere alcanzar resultados en el APEC, la ASEAN, el G -20 y la OCDE que 
apoyen la elaboración y el establecimiento de normas sobre comercio digital. Por ejemplo, Australia 
apoya firmemente el Sistema de Normas de Privacidad Transfronteriza del APEC.  
 
Question 19  
19. ¿Podría Australia por favor brindar mayor detalle sobre los parámetros que considera necesar ios 
incluir en el Sistema de Normas de Privacidad Transfronteriza, que se desarrolla en el marco de 
APEC?  
 
RESPONSE: Australia is a participant in the Cross -Border Privacy Rules (CBPR) System, and is 
now considering strategies for domestic implementation.  Australia considers CBPR an effective 
system for supporting cross -border digital trade, and considers all principles embodied in the 
CBPR as necessary.  
 
Página 22, párrafo 3.89, subpárrafo 2  
3.89. En respuesta a una encuesta pública de la Comisión de Prod uctividad sobre el sistema de 
propiedad intelectual de Australia, se introdujeron varios cambios a través de la Ley de Modificación 
de la Legislación sobre Propiedad Intelectual de 2018, que consistieron, entre otros, en aclarar la 
importación paralela en relación con el derecho de autor y las marcas, introducir modificaciones 
respecto a las variedades vegetales esencialmente derivadas y reducir el período de solicitud para 
la eliminación de una marca por falta de uso.  
 
Question 20  
20. Costa Rica reconoce el av ance realizado por Australia con la reforma la Ley de Modificación de 
la Legislación sobre Propiedad Intelectual de 2018. ¿Puede Australia ampliar sobre la reforma 
realizada en relación con importaciones paralelas? ¿Para qué tipo de bienes es aplicable y a  la 
fecha a cuáles bienes ha sido aplicado en mayor medida?  
 
RESPONSE: Entering into force on 25 August 2018, the Intellectual Property Laws Amendment 
(Productivity Commission Response Part 1 and Other Measures) Act 2018  implemented the 
Productivity Commis sion’s (PC) recommendations to clarify for parallel imports of trade marked 
goods. Parallel importation applies to all trade marked goods. Parallel importing increases the 
competition in a market, however, legal decisions had increased the difficulty for i mporting 
legitimately marked goods into Australia. The Act addressed this by changing the parallel 
importation defence to reduce uncertainty for importers, which will ultimately strengthen 
competition, benefitting the market and consumers. The amendments e nsure that parallel 
imports of legitimately marked goods are not taken to infringe an Australian registered trade 
mark when the goods have first been brought to market in any country by the registered owner 
of that mark or another person who has (or had at  the relevant time) some sort of relevant 
commercial or contractual relationship with the registered owner.  
  WT/TPR/M/396/Add.1  
 
- 87 - 
 
  Dominican Republic  
Examen de Política Comercial de Australia: Documento WT/TPR/S/396  
 
PREGUNTAS  
RESUMEN  
Pág. 11  
Párrafo 26. “El turismo es un sector de creciente importancia económica y fuente de empleo, en 
especial en las regiones de Australia. Turismo 2020 es una asociación estratégica entre el Gobierno 
y el sector cuyo objetivo es duplicar los gastos de pernoctación y alcanzar una cifra de en tre AUD 
115.000 millones y AUD 140.000 millones para 2020. Cuenta con el apoyo de varias metas 
relacionadas con la oferta destinadas a ayudar al sector a lograr ese objetivo. Se están realizando 
esfuerzos por atraer a más visitantes extranjeros, por ejempl o, invirtiendo en nuevas tecnologías 
para actualizar el sistema de visados de Australia. El Comité Directivo de la Iniciativa Más Allá de 
Turismo 2020, dirigido por representantes del sector, preparó un informe a fin de que constituyera 
la base para la sig uiente estrategia (Turismo 2030).”  
 
Question 1  
1. ¿En qué consiste el Programa de Turismo 2020?  
 
RESPONSE: Tourism 2020 is the national strategy to grow the tourism industry through a 
partnership of government working with industry to achieve a target of doub ling overnight 
expenditure of domestic and international visitors to between AU$115 and AU$140 billion by 
2020. The strategy brings together the demand and supply side of tourism in a coordinated way 
to ensure relevant policy issues are addressed to help t he industry achieve its potential. Tourism 
2020 has been highly successful to date with five key targets for the strategy – total overnight 
visitor expenditure, domestic overnight visitor expenditure, accommodation capacity, 
international air capacity, and  tourism employment - having been achieved.  
 
Further details on the Tourism 2020 strategy are available here: https://www.austrade. 
gov.au/Australian/Tourism/Po licy-and-Strategy/tourism -2020. 
 
2 REGÍMENES DE COMERCIO E INVERSIÓN  
2.2 Formulación y objetivos de la política comercial  
Pág. 29  
Párrafo 2.13.  “La legislación comercial australiana consiste fundamentalmente en leyes y sus 
reglamentos de aplicación. Los reglamentos se publican en las gacetas del Commonwealth de 
Australia, mientras que las leyes se publican por separado. Los gobiernos de los estad os y los 
territorios aplican disposiciones similares”.  
 
Question 2  
2. ¿Australia nos podría remitir los enlaces electrónicos para visualizar los reglamentos que se 
publican en Government Notices Gazette; Australian Public Service Gazette; Business Gazette; 
Tariff Concessions Gazette; Chemical Gazette; Australian Pesticides and Veterinary Medicines 
Authority Gazette; y Food Standards Gazette?  
 
RESPONSE: The relevant gazettes can be found at the following links:  
- Government Notices Gazette:  
https://www.legislation.gov.au/Browse/ByPublicationDate/Gazettes/InForce/1/  
- Australian Public Service Gazette: https://www.apsjobs.gov.au/s/gazette  
- Business Gazette: https://asic.gov.au/about -asic/corporate -publications/asic -gazette/#about  
- Tariff Concessions Gazette:  
https://www.abf.gov.au/importing -exporting -and-manufacturing/tariff -concessions -
system/tariff -concession -order/gazette  
- Chemical Gazette: https://www.nicnas.gov.au/news -and-events/chemical -gazette  
- Australian Pesticides and Veterinary Medicines Authority Gazette:  
https://apvma.gov.au/news -and-publications/publications/gazette  
- Food Standards Gazette:  
https://www.foodstandards.gov.au/code/changes/gazette/Pages/default.aspx . 
 
 
 WT/TPR/M/396/Add.1  
 
- 88 - 
 
  3.1.5 Otras cargas que afectan a las importaciones  
3.1.5.2 Impuesto sobre bienes y servicios (GST)  
Pág. 52  
Párrafo 3.33.  “La legislación relativa al GST ha sido objeto de alguna s modificaciones desde el 
último examen. El 1º de octubre de 2016 entró en vigor la modificación de la aplicación del GST a 
las transacciones transfronterizas entre empresas para evitar la participación innecesaria de los 
proveedores no residentes en el si stema del GST de Australia, lo que ha reducido los costos de 
cumplimiento para determinados proveedores no residentes. A partir del 1º de abril de 2017, la 
responsabilidad de abonar el GST respecto de los suministros de oro, plata y platino sujetos a este 
impuesto no recae en el vendedor, sino en el comprador ("inversión del sujeto pasivo"). De forma 
simultánea, la Ley del Impuesto sobre Bienes y Servicios se modificó para que las mercancías que 
contienen oro, plata o platino no puedan considerarse mercancí as de segunda mano a los efectos 
del GST. El 1º de julio de 2017 se amplió el alcance del GST para que abarcara los productos y 
servicios digitales suministrados a consumidores en Australia desde otros países, entre los que se 
incluyen, entre otros, servic ios jurídicos y de arquitectura. En consecuencia, las plataformas 
extranjeras que permiten que los consumidores australianos descarguen elementos como películas, 
música, aplicaciones, juegos o libros electrónicos ahora están obligadas a registrarse en la O ficina 
de Impuestos de Australia (ATO) para el pago del GST, así como a recaudar, notificar y abonar el 
GST respecto de todas esas ventas efectuadas a clientes australianos. En esa misma fecha, el 
tratamiento de las monedas digitales (por ejemplo, el bitcó in) a los efectos del GST también se puso 
en consonancia con el tratamiento del dinero a tales efectos. El 28 de marzo de 2018 se modificó la 
legislación relativa al GST con el propósito de exigir que los compradores de nuevas zonas 
residenciales y terreno s potencialmente residenciales retengan una cuantía del precio contractual y 
la remitan a la ATO (en lugar de confiarla a los promotores inmobiliarios) y, el 1º de julio de 2018, 
se puso fin a una laguna tributaria concerniente a las importaciones de merca ncías de bajo valor 
efectuadas por consumidores australianos. No se modificó el umbral de AUD 1.000 del procedimiento 
de despacho en frontera. Los derechos de aduana, los impuestos y otras cargas se siguen evaluando 
en la frontera, según corresponda.”  
 
Question 3  
3. Con respecto a la Ley de Impuesto sobre bienes y servicios, puede explicarnos ¿cuál era el 
tratamiento de los productos de oro, plata y platino antes de la modificación de dicha Ley?  
 
RESPONSE: From 1 April 2017, some business -to-business purchasers of gold, silver and 
platinum are responsible for remitting GST, rather than the supplier (which was the case prior 
to 1 April 2017).  
Further details can be found here: https://www.ato.gov.au/Business/GST/In -detail/Rules -for-
specific -transactions/Reverse -charge -in-the-valuable -metals -industry/ . 
 
3.1.5 Otras cargas que afectan a las importaciones  
3.1.5.2 Impuesto sobre bienes y servicios (GST)  
Pág. 53  
Párrafo 3.37.  “3.37. Las licencias para cultivar tabaco son objeto de una regulación estricta y raras 
veces se conceden. En la actualidad no hay licencias vigent es para cultivar tabaco para consumo 
personal o fines comerciales y tampoco hay fabricantes tabacaleros en Australia. La venta de tabaco 
en polvo (rapé) está prohibida. El tabaco y otros productos del tabaco están sujetos a impuestos 
especiales conforme a unos tipos que se revisan en marzo y septiembre cada año en función de la 
evolución de los ingresos medios semanales en horario laboral normal. Además, está previsto que 
los impuestos especiales sobre el tabaco aumenten un 12,5% el 1º de septiembre de 2019  y otro 
12,5% el 1º de septiembre de 2020. Los impuestos especiales en vigor en julio de 2019 ascendían 
a AUD 0,81775 por barra de tabaco en barra (por ejemplo, cigarrillos y puros) y AUD 1.090,33 por 
kg de contenido de tabaco respecto de otros tipos de ta baco y productos del tabaco. El régimen de 
impuestos especiales correspondiente al tabaco para liar (y otros productos, como los puros) se 
modificó en el período objeto de examen para que el trato fiscal fuese comparable al otorgado a los 
cigarrillos manuf acturados. Este ajuste de los tipos impositivos más elevados se aplica de forma 
escalonada mediante cuatro variaciones anuales, la primera de las cuales surtió efecto el 1º de 
septiembre de 2017. Hasta el 1º de julio de 2019, los impuestos especiales sobre  el tabaco se 
pagaban en el momento de la entrada en el mercado para consumo interno, es decir, cuando las 
mercancías salían de los depósitos de aduanas. A partir de esa fecha, el pago se adelantó hasta el 
momento de la importación o la fabricación. Las me rcancías de tabaco se pueden seguir 
almacenando en los depósitos autorizados, pero solo una vez se hayan pagado los derechos 
correspondientes.”  WT/TPR/M/396/Add.1  
 
- 89 - 
 
  Question 4  
4. La República Dominicana solicita que nos aclaren el momento del pago de impuestos y otras 
cargas a lo s productos de tabaco. ¿Estos productos son sujeto de pago de impuestos y cargas 
antes de su llegada al país o en el lugar de origen o fabricación?  
 
RESPONSE: Any tobacco importers are required to pay import duty on tobacco products upon 
importation into A ustralia. Any domestic tobacco manufacturers would be required to pay excise 
duty on tobacco at the time of manufacture. Further information can be found at:  
https://www.abf.gov.au/importing -exporting -and-manufacturing/prohibited -
goods/categories/tobacco . 
https://www.ato.gov.au/Business/Excise -and-excise -equivalent -goods/Tobacco -excise/ . 
 
3.2.4  APOYO Y PROMOCIÓN DE LAS EXPORTACIONES  
Pág. 71  
Párrafo 3.69.  “La red  TradeStart tiene por objeto ayudar a las pequeñas y medianas empresas 
exportadoras a lograr un éxito duradero en los mercados internacionales. Es una prolongación de 
las oficinas y los programas de Austrade, y se ofrece en asociación con los gobiernos est atales, 
territoriales y locales, así como con asociaciones empresariales y cámaras de comercio, con lo que 
se combina la asistencia local con el acceso directo a los servicios y la red exterior de Austrade. A 
mediados de 2019, la red contaba con 34 asesore s de TradeStart en oficinas repartidas por toda 
Australia. Austrade dispone actualmente de 79 oficinas en países y territorios de ultramar.”   
 
Question 5  
5. ¿Es posible conocer detalles sobre la evaluación de estos programas?  
 
RESPONSE: Austrade measures the  number of companies supported through the TradeStart 
network.  
 
Client satisfaction is measured as part of Austrade’s current survey process of random selection 
of companies receiving services i.e. not all clients are surveyed. The results of Austrade clie nt 
satisfaction surveys are published in Austrade’s annual report. This is publicly available here: 
https://www.austrade.gov.au/About/Corporate -Information/AnnualReport . 
 
4.1.1.2 MEDIDAS COMERCIALES  
4.1.1.2.1 Importaciones  
Pág. 111  
Párrafo 4.8  “Las importaciones de productos agrícolas están sujetas a medida sanitarias y 
fitosanitarias (MSF) estrictas, con inclusión de medidas de cuarentena, para preservar la situación 
favorable de Australia en lo que respecta a plagas y enfermedades. En virtud de las disposiciones 
vigentes en materia sanitaria y fitosanitaria, los productos agrícolas procedentes de determinadas 
regiones del mundo están sujetos a restricciones a la importación.”  
 
Question 6  
6. ¿Es posible ampliar la información respecto a las restri cciones mencionadas?  
 
RESPONSE: Australia's sanitary and phytosanitary measures are based on science. The 
Department of Agriculture, Water and the Environment conducts science -based risk 
assessments, including import risk analyses (IRAs) conducted under a regulated process, and 
develops recommendations on import conditions that would meet Australia's ALOP. For further 
information on the department’s procedures and methods for assessing risks see the IRA 
handbook.  
 
Once import conditions are established, the  Department of Agriculture, Water and Environment 
is responsible for ensuring that these import conditions are met. Further information on these 
import conditions can be found at: https://www.agriculture .gov.au/bicon . 
 
4.1.1.2.2 Exportaciones  
Pág. 112  
Párrafo 4.13.  “Como resultado de la Lista de mercancías negociada por Australia en el marco de la 
Ronda Uruguay, Australia tenía compromisos en materia de subvenciones a la exportación para 
diversos producto s lácteos (mantequilla y aceite de mantequilla, quesos, leche desnatada en polvo 
y otros productos lácteos) y para las peras. No obstante, Australia eliminó sus niveles autorizados WT/TPR/M/396/Add.1  
 
- 90 - 
 
  de subvenciones a la exportación en el sector agrícola a partir del 22 de m ayo de 2017. Por lo tanto, 
ya no está en condiciones de otorgar ese tipo de subvenciones.”  
 
Question 7  
7. ¿En materia de MSF, agradeceríamos conocer el estatus de la prohibición de importaciones de 
peras originarias de los EE.UU. y el motivo de la misma?  
 
RESPONSE: A risk analysis has not been undertaken for the importation of US pears into 
Australia. Therefore , there are no import conditions to facilitate trade.  
 
  WT/TPR/M/396/Add.1  
 
- 91 - 
 
  European Union  
WTO/TPR/S 396  
Section 2.4 on investment regime  
 
Question 1  
1. Given the wide grounds for screening  foreign direct investment (as “national interest” goes 
beyond “national security” by inter alia incorporating concepts like market competition, 
economic, social considerations) and taking into account that screening is on ca se by case, what 
measures does Australia take regarding its decision making process so that there is no 
discrimination?  
 
RESPONSE: The Australian Government welcomes foreign investment. Under Australia’s 
foreign investment framework, each foreign investmen t application is assessed on its merits, 
regardless of the nationality of the investor.  
 
There is no sector in the Australian economy in which foreign investment is prohibited, nor any 
country from which it is prohibited. Australia’s system is open and tra nsparent.  
 
To support transparency on foreign investment and the foreign investment framework, the 
Australian Government publishes data on foreign investment approvals and foreign ownership 
in certain sectors. The Foreign Investment Review Board annual re port includes data on 
approvals by country of investor. The Government has also established registers for agricultural 
land (announced in May 2015) and water entitlement (announced in July 2017), and every year 
publishes reports on each.  
 
Page 33, paragrap h 2.37 “ According to the authorities, the changes [as mentioned in paragraphs 
2.35-2.36] were shaped by public and political concerns about foreign investment, but also by calls 
for further clarity and certainty from foreign investors.”  
 
Question 2  
2. Could Australia explain how the changes mentioned in paragraphs 2.35 -2.36 have improved 
the predictability (clarity and certainty) for foreign investors?  
 
RESPONSE: Two key changes improved the predictability for foreign investors.  
 
First, the announcement  of the open and transparent sale process requirement for proposed 
foreign investment in agricultural land. This announcement improved the predictability for 
foreign investors as concerns around the ability of Australians to participate in the sale process  
of agricultural land acquisitions had been a factor in previous foreign investment decisions.  
 
The announcement clarified that the Government considers the sale process as part of its case -
by-case national interest considerations for proposed foreign inv estment applications. Thereby 
the guidance makes it easier for potential foreign investors to undertake steps to increase the 
likelihood of their applications receiving approval. [Link to https://ministers.treasury.gov.au/ 
ministers/scott -morrison -2015/media -releases/ensuring -australians -can-purchase -agricultural 
-land] 
 
Second, the announcement that future  sales of electricity transmission and distribution assets, 
as well as some generation assets, may incur ownership restrictions or conditions for foreign 
buyers. These conditions had already applied, on a case -by-case basis, to previous transactions. 
In this way the announcement gave clarity to potential foreign investors on the factors that the 
Government would take into consideration when assessing proposed investment in Australian 
electricity assets. [ Link to https://ministers.treasury.gov. au/ministers/scott -morrison -
2015/media -releases/new -conditions -sale-australian -electricity -assets ] 
 
Page 33, paragraph 2.38 “[ … ]  as a result of RTA/FTA commitments, private investors from 
Canada, Chile, China, Japan, Mexico, New Zealand, Singapore, the R epublic of Korea, the United 
States, and any country for which CPTPP -11 subsequently comes into force, have a higher threshold 
for acquisitions in non -sensitive (AUD 1,154 million) and sensitive (AUD 266 million) businesses. “  
 
 WT/TPR/M/396/Add.1  
 
- 92 - 
 
  Question 3  
3. How does the conclusion of a(n) RTA/FTA with a third country limit risks to (national) security 
and justify lower thresholds for screening investments on (national) security grounds?  
 
RESPONSE: The Australian Government welcomes foreign investment. The Australian 
Government reviews foreign investment proposals against the national interest on a case -by-
case basis. The Government works with applicants to ensure the national interest is protected. 
However, if it is ultimately determined that a proposal is contrary to the national interest, it will 
not be approved, or conditions may be applied to safeguard the national interest.  
 
Australia has sought to liberalise trade and investment through free t rade agreements (FTAs), 
some of which include commitments on higher foreign investment screening thresholds. These 
are negotiated outcomes. In every agreement, these negotiated outcomes have preserved 
Australia’s right to safeguard its security.  
 
In pract ice, the screening threshold for sensitive businesses for investors from FTA partner 
countries (AU$275 million) is the same as the screening threshold for business acquisitions in 
all sectors for investors from other countries (AU$275 million). In other wo rds, the AU$275 
million threshold for FTA countries for sensitive businesses simply operates as an exception to 
the preferential screening threshold of AU$1,192 million for FTA partner countries’ investors. In 
addition, the screening threshold for foreign government investors (AU$0) is the same for all 
countries.  
 
Page 34, paragraph 2.42 and Table 2.1. “The vast majority of the applications referred to the 
FIRB were approved in the period under review, as only 13 applications were rejected, and 3 were 
declined. Proposed investments are according to the authorities rarely rejected. “  
 
Question 4  
4. Whereas on the one hand, the number of decisions rejecting the investment is small, on the 
other hand, in more than 40% of all cases, national interest concerns are a ddressed through 
so-called appropriate mitigating measures. These measures may involve changes such as to 
the composition of an investment consortium or carving out certain assets from being sold. This 
exposes foreign investors to numerous uncertainties an d creates a high -level of unpredictability. 
Could Australia indicate how can this be reconciled with the efforts of the Australian government 
to improve clarity and certainty for foreign investors?  
 
RESPONSE: The Australian Government welcomes foreign inve stment. The Government 
reviews foreign investment proposals against the national interest on a case -by-case basis. The 
case-by-case approach maximises investment flows, while protecting Australia’s interests. 
Under the relevant legislation (the Foreign Acq uisitions and Takeovers Act 1975  (FATA)), 
conditions may be imposed on an investment, but only if they are necessary to protect the 
national interest (see s74, FATA). This makes the basis on which conditions will be imposed 
clear to investors. Information about factors that are relevant in determining the national 
interest is made available in the foreign investment policy, which is available on the Foreign 
Investment Review Board (FIRB) website ( www.firb.gov.au ). 
 
Australia’s foreign investment framework is open and transparent.  The FIRB website has 50 
Guidance Notes to help provide clarity on the FIRB process for inv estors. These Guidance Notes 
include those on Commercial Land (Guidance Note 14), Foreign Government Investors 
(Guidance Note 23), and Tax Conditions (Guidance Note 47). Guidance Notes 19 and 47 provide 
examples of the types of conditions that are imposed.  
 
Para 2.46 on Double Taxation Agreements (DTA): “The DTA between Australia and Germany 
came into force since the last Review ”. However , the EU notes that several EU member states still 
do not have DTAs with Australia, and have made repeated requests to commence DTA discussions 
with the Australian Treasury, which has thus far declined requests, citing resource constraints. We 
note, however , that Israel and Australia were able to complete discussions, and signed a DTA in 
March 2019.   
 
 
 
 WT/TPR/M/396/Add.1  
 
- 93 - 
 
  Question 5  
5. Can Australia explain why it has not been able to provide the resources necessary to conclude 
DTAs with those EU member states who do not yet have a DTA with Australia, and has requested 
DTA discussions?  
 
RESPONSE: The Australian Government has noted requests from various countries, including 
certain EU member states, for new tax treaties. Australia is currently focusing resources on tax 
treaty negotiations that have been announced and are underway, as well as implementing the 
OECD Multilateral Instrument to address base erosion and profit shifting.  
 
Page 36 para 2.47 on Offshore Banking Units (OBU):  The OECD forum on harmful tax practices 
has ra ised concerns about Australia’s OBU laws, including the 10% concessional tax rate. The 
Offshore Banking Unit Regime, established in 1992, provides a more attractive tax rate for offshore 
banking activity conducted by Australian registered banks. This regim e was deemed harmful by the 
OECD Forum on Harmful Tax Practices back in October 2018 and AUS made a commitment to the 
OECD to amend this regime to remove its potentially harmful features. However, as of January 2020, 
the regime still has not been changed.  
 
Question 6  
6. What are Australia’s intentions in light of the above? What is the timeline for complying with 
recommendations from the OECD forum on harmful tax practices and reform its offshore 
banking units (OBU) fiscal regime?  
 
RESPONSE: Australia has made  a commitment to address the concerns raised by the OECD in 
relation to the OBU regime and is currently consulting with the OECD in relation to possible 
options and their timing.  
 
Page 41 para 3.1.3.1. The EU notes that Australia has very high bound tariff s. In particular the 
average bound tariff is not less than 9.8%, much higher than most developed countries, including 
the US, EU or Japan. The EU sees those high bound tariffs are a source of uncertainty for business 
as the applied tariffs can quadruple wi thin those margins. The high level of “water” between bound 
and applied tariffs means that Australia could decide to almost quadruple its applied tariffs without 
being obliged to enter into Article 28 negotiations.  
 
Questions 7 -9 
7. How does Australia reconci le trade facilitation with this policy that entails many uncertainties 
for operators? How can this be compatible with competitiveness?  
 
RESPONSE: In recent decades, Australia’s approach has been either to reduce MFN applied 
duty rates or hold them at exist ing levels.  There is no intention to increase MFN applied rates. 
This consistent policy approach provides predictability for traders.  
8. Could Australia confirm that it has no intention to increase its applied tariffs to the level of the 
bound rate?  
 
RESPONS E: There is no intention to increase MFN applied rates to the level of the bound rate.  
 
9. If the answer to question 7 above is yes, why does Australia maintain this large distance 
between bound and applied tariffs?  
 
RESPONSE: Australia is prepared to reduce its bound tariff commitments as part of the 
outcome of plurilateral or multilateral tariff negotiations in the WTO. We have done this, for 
example, in relation to negotiations to establish and update the Information Technology 
Agreement.  
 
The report  shows that “ Australia also maintains 145 tariff lines wholly unbound, while an 
additional 71 tariff lines are partially unbound.”  As indicated above the EU is of the view that this is 
an impediment to predictability, transparency and business facilitatio n. 
 
Question 10  
10. What is the rationale for such policy?  What are Australia’s intentions in the near future 
regarding the binding of these tariffs?  
 WT/TPR/M/396/Add.1  
 
- 94 - 
 
  RESPONSE: Australia, like a number of WTO members does not have bound commitments on 
all goods. Based on the WTO Secretariat’s calculations reflected in Table 3.1, the percentage of 
Australia’s unbound tariff lines is 4.3 per cent of total tariff lines. The binding of Australia’s 
unbound tariff lines would be considered as part of the outcome of plurilateral or multilateral 
tariff negotiations in the WTO. We have done this, for example, in relation to negotiations to 
establish and update the Information Technology Agreement.  
 
Page 44 para 3.22  Tariff rate quotas (TRQs)  
The EU notes that Australia has a WTO TRQ  on cheese and curd, amounting to 11,500 tons per year. 
In-quota imports are subject to an import duty of AUD 96 per ton; the MFN rate on out -of-quota 
imports is AUD 1,220 per ton. Importers obtain their quotas upon application to Customs. The 
allocation i s based on historic performance over the previous 23 months. New importers may only 
obtain a quota by transfer from an existing holder. Quota fill rates have been at, or very close to, 
100% in recent years.  
 
Question 11  
11. Does Australia plan to increase the quotas on cheese and curd? Does Australia plan to introduce 
measures to improve access by new importers to these quotas?  
 
RESPONSE: The current cheese and curd tariff quota scheme (the Scheme) forms part of 
Australia’s bound commitments under the WTO. Unde r this commitment, Australia has a lower 
tariff on 11,500 tonnes of certain cheese and curd products.  
 
The Australian Border Force determines the yearly quota allocations for the Scheme. The 
calculation of an importer’s quota each financial year is based on the use of quotas by that 
importer in the previous 23 -month period.  
 
Australia is not considering amending the cheese and curd quota or tariff rates. Additionally, 
Australia does not intend to alter the allocation arrangements of the Scheme.  
 
The following historical document provides a detailed explanation of how the quota allocation is 
determined https://www.abf.gov.au/help -and-support -subsite/fi les/ps -cheese -curd-quota.pdf . 
The 2019 -20 factor and allocation is available at https://www.abf.gov.au/help -and-support -
subsite/CustomsNotices/2019 -30.pdf . 
 
Page 45 table 3.4 shows that Australia offers 100% duty free and quota free access to 
LDCs. The EU strongly supports giving unlimited access to imports from LDCs. The EU would 
appreciate further information on the impact of these measures on LDCs’ exports to Au stralia.  
 
Question 12  
12. Could Australia give more detailed and quantitative information about the impact of this 
measure since its introduction and precise their date of entry into force? In particular, did 
imports from LDCs increase and if so from which LDC s? 
 
RESPONSE: Australia has provided Least Developed Countries (LDCs) full duty -free and quota -
free access into Australia since 2003. LDC exports to Australia increased markedly from 
AU$135.5 million in 2009 to AU$1.1 billion in 2019, averaging 25.6 per ce nt growth every year.  
 
Page 46 para 3.1.5. The EU notes that the Government announced in the 2018 -2019 Federal 
Budget that the Levy would be imposed from 1 July 2019. This deadline was revised to 1 September 
2019 in the 2019 -2020 Budget. The measure is, however, yet to be introduced. This measure will 
apply a $10.02 levy per twenty foot container (or equivalent) and non -containerised cargo will incur 
a levy of $1 per tonne. The levy will be payable on a quarterly basis. The levy is estimated to have 
a gain to revenue of $360.0 million in fiscal balance terms over the forward estimates period. In 
underlying cash balance terms the measure has a gain of $325.0 million over the forward estimates.  
 
Question 13  
13. What is the status of the legislation designed to introduce this levy?  
 
RESPONSE: In the 2019 -20 Mid Year Economic and Fiscal Outlook the Australian Government 
announced that it would no longer continue with the previously announced Biosecurity Imports WT/TPR/M/396/Add.1  
 
- 95 - 
 
  Levy. Instead it is currently working with industry o n the design of a new onshore biosecurity 
levy. 
 
Page 48 para 3.34  
Luxury Car Tax (LCT) : The EU recalls that previous secretariat reports noted that LCT 
disproportionately targeted imported vehicles; however Australia ceased production of automobiles 
in 2017, meaning LCT now falls exclusively on imports. Further, the EU is concerned by reports12 
that 80% of the vehicles subject to LCT are imported from the EU. The government's own reviews13 
have recommended suppression of this tax.  
 
The EU re grets that the Secretariat report did not mention that since the last TPR, several sub -
federal governments in Australia have introduced various state -based taxes or surcharges aimed at 
luxury cars. These are Queensland's Premium Motor Vehicle Duty , which i mposes a 2 percentage 
point surcharge on registration fees of cars valued at over AU$100 000, and Victoria's Motor Vehicle 
Duty , a transaction duty of 7% levied on the sale of cars valued at over $100 000 (increasing to 
9% for cars over $150 000). These h ave the same discriminatory effect on EU vehicles as for the 
federal LCT mentioned previously. The cumulative effect of these taxes and tariffs translates to a 
marginal rate as high as 52%. Recommendation was made for abolition but yet the tax remains  
 
Questions 14 -15 
14. Could Australia explain why its sub -federal governments have imposed further measures 
which in particular have the effect of disproportionately impacting motor vehicles imported 
from the EU, such as Queensland's PMVD and Victoria's MVD?  
 
RESPO NSE: The LCT is a consumption tax applied equally to all domestically and foreign -
produced passenger motor vehicles used for non -commercial purposes, above a relevant dollar 
threshold. By way of background, the LCT was brought in following the introduction  of 
Australia's GST and the abolition of a wide range of sales taxes that applied at different rates. 
Sales taxes applying to luxury vehicles (as well as other luxury goods) were very high. The LCT 
was introduced in order to maintain a similar price of lux ury vehicles to consumers following 
introduction of the GST in 2000.  
 
Australia is not currently considering the removal of the federal LCT, and state and territory 
governments are free to levy their own taxes, provided they are similarly non -discriminator y. 
 
15. Does Australia contemplate suppressing this LCT measure? If Australia were to remove its 
federal LCT, how would it ensure sub -federal government?  
 
RESPONSE: The LCT is a consumption tax applied equally to all domestically and foreign -
produced passenger motor vehicles used for non -commercial purposes, above a relevant dollar 
threshold.  By way of background, the LCT was brought in following the introduction of 
Australia's GST and the abolition of a wide range of sales taxes that  applied at different rates. 
Sales taxes applying to luxury vehicles (as well as other luxury goods) were very high. The LCT 
was introduced in order to maintain a similar price of luxury vehicles to consumers following 
introduction of the GST in 2000.  
 
Australia is not currently considering the removal of the federal LCT, and state and territory 
governments are free to levy their own taxes, provided they are similarly non -discriminatory.  
 
Page 48 para 3.35  on Wine Equalization Tax (WET) : “According to the N ew Tax System (Wine 
Equalization Tax) Act, 1999, a flat rate of 29% ad valorem is applied to the wholesale value of wines, 
including imported wine, with a minimum alcohol content of 1.15% (volume of ethyl alcohol)… “. 
Since domestic wine producers (with an Australian Business Number) and New Zealand Wine 
producers can receive a rebate on that tax, this creates an unlevelled playing field for European wine 
exporters, mostly small producers who do not have a business registered in Australia.  
 
 
 
12 https://www.caradvice.com.au/729414/exclusive -toyota -customers -pay-more-luxury -car-tax-than-
owners -of-porsche -ferrari -lamborghini -maserati -rolls-royce-bentley -and-audi-bmw-and-lexus/ . 
13 Bracks  Review of A ustralia's Automotive Industry 2008 ; the Henry Review  of Australian Taxation 
System 2008; Productivity Commission  Inquiry into Australia's Aut omotive Manufacturing Industry 2014.  WT/TPR/M/396/Add.1  
 
- 96 - 
 
  Questio n 16 
16. Is Australia considering to ensure a level playing field by introducing rebates of the wine 
equalization tax not only for domestic producers as this is the case now but also non NZ 
producers with an Australian Business Number)?  
 
RESPONSE: Wine produce rs that have sales connected to Australia and are eligible to register 
for GST, regardless of origin, are able to access the WET rebate through the GST system. There 
is no requirement for wine to be produced or manufactured in Australia, nor is there a 
requirement for wine to be produced or manufactured from Australian ingredients. Wine 
producers can claim the rebate if, among other things: at least 85 per cent of the total volume 
of wine originated from source product (e.g. grapes) they owned; and provided  they maintained 
ownership throughout the winemaking process.  
 
Page 50 para3.43 on discriminatory state -level land taxation for foreign investors : “Recent 
changes to state taxes discriminate against foreign investors in residential property in several stat es 
in the form of a "stamp duty surcharge" applying to acquisition of residential land liable to a stamp 
duty. “  
 
Questions 17 -18 
17. How does Australia manage to keep these tax surcharges that are against national treatment 
principles?  
 
RESPONSE: Australia’s federal system of government provides the basis for taxation, whereby 
authority to impose differing forms of taxation is separated between the Commonwealth and 
the States and Territories. The Commonwealth maintains exclusive authority over personal and 
corporate income taxation, customs duties, and excise duties. State and territory governments 
possess authority to levy taxes and duties which include: stamp duty, payroll tax, and land tax.  
 
State and Territory (subnational) governments have made use of these powers to implement 
fees and taxes to address housing affordability and availability issues.  These measures have 
taken the form of stamp duties and land tax measures, which have been introduced at varying 
levels throughout Australia.  
 
Several Austra lian state governments have introduced stamp duty surcharge for foreign persons 
buying residential real estate. Some state governments have said the surcharge was introduced 
to ensure foreign buyers/owners contribute to the cost of the infrastructure and s ervices that 
support residential property in Australia.  
 
18. Does Australia intend to eliminate tax discrimination or stamp duty surcharges (or at least 
harmonize these across sub -federal jurisdictions)?  
 
RESPONSE: As noted in Australia's response to the previ ous question, Australia’s federal 
system of government gives state and territory governments authority to levy taxes and duties 
which include: stamp duty, payroll tax, and land tax. Some state and territory governments 
have used this power to introduce a s tamp duty and land tax surcharge for foreign persons 
acquiring residential property. Some state governments have said the surcharge was introduced 
to ensure foreign buyers/owners contribute to the cost of the infrastructure and services that 
support reside ntial property in Australia. The Australian Government is unaware of any current 
moves to eliminate or harmonise these surcharges.  
 
Page 69 para 3.93. “The ACCC annually conducts safety audits on products where there are 
indications of non -compliance with specific regulations. The audits include a national series of 
surveys to determine the level of compliance in the market (including online suppliers). Audits are 
also conducted on unsafe goods that are not subject to any specific mandatory requirement. Between 
July 2019 and June 2020, 20 products were prioritized to undergo surveillance and testing. The 
ACCC carries out the audits and, if a non -compliant product is identified, suppliers are required to 
remove these products from sale, and co nduct a voluntary recall. In serious instances, the ACCC 
may take immediate enforcement action by issuing Infringement Notices or court action with 
penalties of up to AUD 1.1 million. Each supplier in the supply chain is responsible for compliance 
and ensu ring products are safe and fit for purpose, regardless of where they may be in the supply 
chain, or whether they are domestic or overseas manufacturers, suppliers or distributors. According 
to the authorities, between 2015 and 2019, the ACCC, together with  state and territory counterparts, WT/TPR/M/396/Add.1  
 
- 97 - 
 
  removed millions of products from sale across 198 product types for breaches of, or suspected non -
compliance with, mandatory standards and bans.” Page 69 para 3.95 states that  “In the absence 
of a suitable international s tandard, national standards are developed, with transparency and 
consensus being two key requirements. As at November 2019, approximately 40% of Australian 
Standards were identical to, or slightly modified adoptions of, international standards.”  
 
Questions  19-22 
19. Does Australia apply the system of Self Declaration of Conformity Assessment (SDoC), and if 
so, in which sectors? What are Australia's experiences in using this system? Has it led to savings 
and other gains for companies, such as allowing for earlie r marketing and sale of new products? 
Did it affect the safety of products (positively or negatively)?  
 
RESPONSE: The Australian Competition and Consumer Commission (ACCC) administers and 
enforces mandatory safety standards and permanent bans made or decla red under the 
Australian Consumer Law (ACL), which is Schedule 2 of the Competition and Consumer Act 
2010. 
 
There is currently no system comparable to Self Declaration of Conformity Assessment (SDoC) 
under the ACL. For an overview of the ACCC’s safety audi t process, see our response to question 
204.  
 
We note that the mandatory safety standard for disposable cigarette lighters 
<https://www.legislation.gov.au/Details/F2019L00132 > allows suppl iers to comply with the 
European Standard EN 13869:2016 Lighters – Child Safety Requirements for Lighters – Safety 
Requirements and Test Methods (with variation). This standard requires a declaration of 
compliance to accompany each shipping unit of the pro duct, or otherwise be furnished to any 
distributor or retailer to whom the product is sold or delivered by the producer. However, this 
is incomparable to SDoC as it does not require individual products to be marked to allow easy 
recognition of compliance.  
 
More broadly, Australia recognises that first -party conformity assessment options, such as 
SDoC, have a valid place in regulatory schemes and can help facilitate trade provided the right 
regulatory, compliance and enforcement frameworks are in place to support their reliable use. 
For example, for products relating to telecommunications, radiocommunications and 
electromagnetic compatibility (EMC), and electromagnetic energy (EME) of 
radiocommunications transmitters, in addition to an SDOC, suppliers must also obtain test 
reports, register on a national database, apply a compliance label and maintain records.  
 
20. Would Australia be ready to consider using SDoC in more sectors? If so, which sectors would 
qualify?  
 
RESPONSE: Australia has legislation governing t he use of SDOCs across a range of sectors, 
including telecommunications, radiocommunications and electromagnetic compatibility (EMC) 
and electromagnetic energy (EME) of radiocommunications transmitters. Australia also uses 
DOCs in the health sector, for ex ample in relation to medical devices. Federal, State and 
Territory regulators may impose additional obligations on suppliers, manufacturers or importers 
if products are medium or high risk.  
 
This usage is appropriate based on current regulatory and policy settings and reflects the 
current Australian regulatory framework. This takes into account the level of risk associated 
with a particular product, service or system, the views of interested stakeholders, and 
Australia’s international obligations.  
 
21. What is the percentage of alignment of Australian national standards with the relevant 
international standards developed by the international standardisation organisations ISO and 
IEC? 
 
RESPONSE: 96 per cent of identical and modified adoptions in Standards Australia’s catalogue 
are from original ISO or IEC Standards.  
 
22. How does Australia ensure that overseas online suppliers that are not domiciled in its territory 
comply with any corrective actions, such as removal of products or voluntary recalls, or any WT/TPR/M/396/Add.1  
 
- 98 - 
 
  other enforcement actions taken by Australian authorities in the case of non -compliant products 
placed on the market in Australia? What are the legal and regulatory tools used in these 
circumstances?  
 
RESPONSE: All products sold in Australia must comply with Australian product safety laws 
whether bought in a local store or online from overseas. Over the last few years, a key focus 
area for the Australian Competition and Consumer Commission (ACCC) is improving product 
safety in the online marketplace. The ACCC has a dedicated team who are responsible for 
implementing the ACCC’s Online Compliance Initiative (OCI), a strategy that aims to strengthen 
and improve product safety compliance in the online marketplace. Recognising the challenges 
of enforcing local regul ations in an overseas market, the OCI focuses on awareness raising, 
education and targeted engagement with platforms, online suppliers and consumers.  
 
The OCI takes a market -wide approach to compliance at both domestic and cross -border levels, 
targeting co nsumers, online suppliers, platforms and international retailers, and regulators.  
 
Over the last few years, the ACCC has developed effective relationships with online platforms 
such as AliExpress, Catch.com.au, eBay, Etsy and Gumtree to ensure better produ ct safety 
outcomes for consumers in the online marketplace. As a result of the ACCC's ongoing 
engagement, these platforms are undertaking a range of activities to improve awareness of 
unsafe products, including sending tailored compliance alerts and inform ation to sellers about 
Australian regulations and working swiftly with the ACCC to remove listings of unsafe products. 
The ACCC encourages online selling platforms to have policies addressing product safety and 
adopt proactive processes to ensure recalled and/or non -compliant products are not being sold 
on their platform by third party suppliers.  
 
The ACCC has also developed a suite of educational resources and tools to support online 
suppliers with their product safety obligations, including an online sell ing webpage and a series 
of fact sheets and online information about Australian mandatory standards and bans, some of 
which have been translated in various languages to assist offshore suppliers.  
 
To complement these domestic activities, the ACCC has taken  a lead role in several OECD 
campaigns to raise awareness of product safety on a global scale. In 2018, the ACCC co -led an 
OECD campaign on the safety of products bought and sold online. The campaign highlighted 
the importance of suppliers and online retai lers being aware of the product safety rules and 
regulations in different countries before placing products on the market. In 2020, the ACCC will 
co-lead an OECD campaign on the safety of toys bought and sold online. This campaign will aim 
to improve onlin e suppliers’ understanding of the importance of selling safe toys online and 
removing unsafe toys immediately from sale.  
 
Page 70 para 3.98 on conformity assessment and international cooperation “ The 
Government has MRAs with the Australian states and terri tories (Mutual Recognition Act, 1992), 
New Zealand (Trans -Tasman Mutual Recognition Act, 1997), the European Union (1999, amended 
2013), the European Free Trade Association (EFTA) (2000, currently being updated), and Singapore 
(2001). It also signed an MRA  with the United Kingdom, which will enter into force once it departs 
the European Union.”  
 
Questions 23 -24 
23. In which regulatory areas do Australian States and territories have competences to regulate 
conformity assessment procedures?  
 
RESPONSE: Under the Australian federal system the majority of goods regulations – including 
those that include conformity assessment aspects – are developed at the Commonwealth 
(Australian Government) level. A key exception and example of a regulatory area where the  
state and territory governments play a lead role relates to the safety of electrical goods. 
However, in this area the Electrical Regulatory Authorities Council (ERAC) works towards 
coordination in Australia’s technical and safety electrical regulatory fun ctions. ERAC is made up 
of representatives of the regulatory authorities responsible for electrical safety, supply and 
energy efficiency in the Australian Government and the state and territory governments. 
Further, the Mutual Recognition Agreement (MRA) b etween the Australian Government and the 
state and territory governments allows for a common domestic market, including for electrical 
goods.  WT/TPR/M/396/Add.1  
 
- 99 - 
 
  There are also certain regulatory areas where overall policy direction is set at the Australian 
Government level,  with the states and territories playing a role in enforcement. Such areas 
include consumer product safety under the Australian Consumer Law, and food and building 
product regulation under the Food Standards Code and the National Construction Code.  
 
24. Do all  the results of these conformity assessment procedures produced at State and territories 
level benefit from the MRA with the Australian Government?  
 
RESPONSE: The MRA between the Australian Government and the state and territory 
governments creates a commo n domestic market, meaning a good that can legally be sold in 
one jurisdiction can be legally sold in another jurisdiction, without the need for further 
compliance testing. Under the MRA, Australian regulators need to consider their mutual 
recognition obli gations in establishing approval requirements, and are encouraged to recognise 
approvals or conformity assessments made by their counterparts or accepted third -party 
conformity assessment bodies.  
 
Page 71 para 3.99. “ Australia is a party to the MRAs within the Asia -Pacific Economic Cooperation 
for Conformity Assessment of Telecommunications Equipment (1999); Conformity Assessment of 
Electrical and Electronic Equipment (1999); and Conformity Assessment of Foods and Food Products 
(1997). The NATA and th e JAS -ANZ have developed a network of multilateral recognition 
arrangements (MLAs) and MRAs through international and regional fora. The NATA is an inaugural 
signatory to the International Laboratory Accreditation Cooperation MRA; and JAS -ANZ is a signator y 
to the International Accreditation Forum MLA. Both the NATA and the JAS -ANZ are signatories to 
the Asia Pacific Accreditation Cooperation (APAC) MRA. The APAC was formed on 1 January 2019 
from the amalgamation of the Asia Pacific Accreditation Cooperatio n (APLAC) and the Pacific 
Accreditation Cooperation (PAC). The NATA and the JAS -ANZ had previously been signatories to the 
APLAC and the PAC, respectively.”  
 
Question 25  
25. Does Australia directly recognise or accept (i) accreditation certificates issued by a ccreditation 
bodies signatories of APAC MRA or ILAC/IAF MLAs, and (ii) conformity assessment certificates 
and test reports issued by conformity assessment bodies accredited by those accreditation 
bodies? If so, in which regulatory areas and under which con ditions (if any)?  
 
RESPONSE: Australia accepts these certificates, dependent on the regulatory jurisdiction and 
sector in question. Where accreditation from one of our peak bodies (for example, the National 
Association of Testing Authorities, NATA) is mand ated or preferred by Australian regulators and 
industry, reports from multilateral MRA signatory -accredited conformity assessment bodies are 
often recognised – this occurs in the area of manufactured products, for example. Where 
conformity assessment is co nsidered relevant to a particular sector, the Australian Government 
encourages government agencies to make use of accreditation – from our peak accreditation 
bodies or their multilateral MRA signatory partners, as appropriate – although this is not 
mandate d. This is also facilitated by the Australian Government’s Memorandum of 
Understanding with NATA. Beyond this it would be too broad and complex to catalogue the full 
range of regulatory sectors here, however Australia would be pleased to continue engaging with 
the EU on this matter.  
 
Page 73 para 3.112 Country of Origin Labelling : The report mentions Australia's introduction 
for new country of origin labelling system, as enforced from the 1st of July 2018 by the Australian 
Competition and Consumer Commissio n. The mandatory labelling requirements include a country of 
origin statement and a prescribed logo/mark. However, “made in the EU” is still not recognized as a 
legal origin label.  
 
Question 26  
26. Could Australia explain the rationale for not recognizing "mad e in the EU" as an origin label?  
 
RESPONSE: Under Australia’s Country of Origin Labelling (CoOL) there are country or origin 
labelling requirements that must be met for food imports into Australia.  
 
CoOL is backed by Australian origin marking requirements  that are set out under the Commerce 
(Trade Descriptions) Act 1905  (the Act) and the Commerce (Trade Descriptions) Regulation 
2016 (the Regulation). The Act specifies that a trade description include ‘any description, WT/TPR/M/396/Add.1  
 
- 100 - 
 
  statement, indication…. as to the country or place in or at which the goods were made or 
produced’. The regulations state that the trade description must include ‘the n ame of the 
country in which the goods were made or produced’.  
 
Australia's CoOL system has been designed to address a consumer information objective and is 
supported by robust evidence.  
 
Page 75, para 3.126. section 3.3.4 on Competition policy and price controls. The EU notes 
that “ the exemptions to the application of competition policy are in most cases at state and territorial 
levels where they seem difficult to reform. They include spec ific postal mail delivery services and 
cargo -liner shipping conferences at the national level, and agricultural marketing boards, taxi 
services and pharmacies at state or territory level. Several deal with marketing arrangements for 
agricultural products, by authorizing either the operation of monopolies or joint action, ostensibly to 
equalize bargaining power between producers and processors.  “ 
 
Question 27 -28 
27. As there are still many other exemptions from the Competition and Consumer Act (CCA) 
prevailing o n the sub -federal level? If so could Australia list them?  
 
RESPONSE: Some Commonwealth, state, and territory legislation permits conduct that would 
normally contravene the Competition and Consumer Act 2010 (Cth)  (CCA). Section 51(1) of the 
CCA provides tha t such conduct may be permitted if it is specifically authorised under those 
other Acts. As per footnote 102 in paragraph 3.126 of the original report, a list of the legislation 
that allows such conduct or provides for regulations to be made authorising pa rticular conduct 
is available at : <https://www.accc.gov.au/about -us/australian -competition -consumer -
commission/legislation/exceptions -under -commonwealth -state-territory -legislation >. The list 
includes legislation that the ACCC has been notified of or has otherwise become aware of.  
 
28. Does Australia plan to take any further concrete steps towards futu re convergence of 
competition and consumer policies on the state/ territorial and federal levels?  
 
RESPONSE: Australia has a national consumer law (the ‘Australian Consumer Law’ or ACL) that 
applies in all States and Territories. Under the ACL, consumers h ave the same protections and 
expectations about business conduct wherever they are in Australia. Similarly, businesses have 
the same obligations and responsibilities wherever they operate in Australia. The ACL was a key 
part of the deregulatory reforms of the Council of Australian Governments (COAG) to deliver a 
seamless national economy.  
 
Australia already has uniform competition laws after the prohibitions on anti -competitive 
conduct in the then Trade Practices Act 1974 , now Competition and Consumer Act 2010 (CCA), 
were extended to unincorporated businesses (which are subject to state and territory law) via 
the National Competition Policy reforms in the 1990s.  
 
Page 79 section 3.3.5 Government business enterprises : There is a lack of transparency on 
which SOEs (called government business enterprises in Australia) exist at sub -federal level and how 
Australia distinguishes between commercial activities and non -commercial activities of SOEs.  
 
Questions 29 -31 
29. Could Au stralia indicate if there are intentions to further privatize the Government business 
entities operating in the commercial domain?  
 
RESPONSE: The Australian Government’s government business enterprises (GBEs) are 
established to fulfil a Commonwealth govern ment purpose. Once the Commonwealth 
government purpose or policy need is fulfilled, the Government may look to sell the GBE. A 
scoping study into the GBE and current market conditions is conducted in order to establish 
potential ownership options, includin g recommendations whether to privatise the entity and 
what the best method of sale would be. Once the scoping study is complete, the Australian 
Government considers the outcome of the study and may decide to sell an entity.  
 
30. How does Australia define comme rcial activities of SOEs and do Australian financial reporting 
requirements mandate GBEs to distinguish between revenues stemming from these activities 
and revenues from other activities?  WT/TPR/M/396/Add.1  
 
- 101 - 
 
  RESPONSE: Government Business Enterprises (GBEs) have commercial act ivities agreed upon 
between the GBE and Shareholder Ministers through the Corporate Planning process. This is 
reviewed annually. For those GBEs undertaking non -commercial activities, a Community Service 
Obligation (CSO) is negotiated with the GBE and repor ted on separately in Annual Reports.  
 
31. Could Australia provide full a comprehensive list of Government Business Enterprises (GBEs) at 
sub-federal level?  
 
RESPONSE: Government Business Enterprises at sub -federal level are a matter for each State 
and Territory government.  
 
Page 80 para 3.144. on Government procurement reads  “ With regards to SMEs, officials are 
required to consider the benefits of doing business with competitive SMEs; barriers to entry, such 
as the cost of preparation of submissions, t hat may prevent SMEs from competing; SME capabilities 
and their commitment to local or regional markets; and the potential benefits of having a larger, 
more competitive supplier base. A target of 10% of procurement from SMEs is in place for non -
corporate C ommonwealth entities. Furthermore, under the 2019 CPRs, non -corporate 
Commonwealth entities have a target of procuring 35% of contracts by volume, with a value of up 
to AUD 20 million, from SMEs .“ 
 
Question 32  
32. Could Australia explain how the achievement of the target is monitored and how the public 
buyers are encouraged to reach it? What happens if the target is not achieved? What are the 
criteria (definition) of SMEs that would qualify under this target?  
 
RESPONSE: Statistics for SME particip ation are reported retrospectively based on data 
collected at the end of the relevant financial year.  
 
Estimated SME participation is reported annually on the Statistics on Australian Government 
Procurement Contracts website -  
https://www.finance.gov.au/government/procurement/statistics -australian -government -
procurement -contracts -   
 
Estimates on SME participation are provided by the Australian Bureau of Statistics (ABS) based 
on AusTender contract data and the ABS Business Register.  
 
To support the achievement of the targets, the Commonwealth Procurement Rules (CPRs) 
provide that officials should apply procurement practices that do not unfairly discriminate 
against SMEs and provide appropriate opportunities for SMEs to compete.  
 
For the purposes of the CPRs, an SME is defined as an Australian or New Zealand firm with 
fewer than 200 full -time equivalent employees.  
 
Page 99 para 4. 1.2 on the Rice Marketing board : Australia submitted notifications on the 
activities of the Rice Marketing board of the State of New South Wales. The Board's exclusive rights 
are limited to the State of New South Wales (NSW) and its vesting powers have bee n extended to 
2022.  
 
Questions 33 -35 
33. What is the reason NSW feels it is necessary to maintain such a monopoly? Do other States 
intend to introduce similar monopolies? Does the government of NSW consider extending the 
Board's powers beyond 2022?  
 
RESPONSE: According to WTO notification G/STR/N/15/AUS, the rationale for the Board 
include:  
 
i. to encourage the development of a competitive domestic market for rice.  
ii. to ensure the best possible returns from NSW grown rice sold outside Australia based on 
the quality differentials or attributes of Australian grown rice.  
 
The NSW Government undertakes regular reviews of the vesting arrangements. In 2016, the 
NSW Government extended the vesting powers of the Rice Marketing Board to 2022, af ter an WT/TPR/M/396/Add.1  
 
- 102 - 
 
  industry review concluded the marketing arrangements for rice delivered net benefits to the 
NSW rice industry and the broader community. The next review will take place this year (2020). 
The findings of that review will be detailed to the WTO upon c onclusion via Australia's relevant 
STE notification.  
 
34. Could Australia clarify whether they have established a phase -out schedule for this system?  
 
RESPONSE: The NSW Government undertakes regular reviews of the vesting arrangements. 
In 2016, the NSW Governm ent extended the vesting powers of the Rice Marketing Board to 
2022, after an industry review concluded the marketing arrangements for rice delivered net 
benefits to the NSW rice industry and the broader community.  The next review will take place 
this yea r (2020). The findings of that review will be detailed to the WTO upon conclusion via 
Australia's relevant STE notification.  
 
35. Could Australia clarify the status of the organisation “Queensland Sugar Limited (QSL)” and its 
role in sugar marketing and export s? Can it be considered as an export monopoly?  
 
RESPONSE: Queensland Sugar Limited (QSL) is a not -for-profit organisation owned by its 
members. It is a public limited company independent of Government and receives no 
government funding. QSL does not have a ny legal vesting rights for sugar produced, processed, 
marketed or traded by Australia. QSL enters into voluntary agreements with Queensland mills 
to market their sugar exports. Mills not contracted to QSL independently market their own 
sugar.  
 
Page 112 pa ra 4.61  details a number of weaknesses and suggestions for improvement regarding 
the governance of the National Electricity Market and the gas market. Issues highlighted in the 
interim reports include, inter alia: inability of market participants to gain a ccess to pipeline capacity 
at reasonable prices, certain pipelines being contractually congested, and monopoly pricing by many 
major pipelines. It is reported that the Commonwealth Government is amending the competition 
laws with a view to improving compet ition, and the ACCC is conducting several inquiries into 
electricity and gas prices, including the review by the AER of potential generator market power. 
Concerns have been raised that gas supplies may reach a shortage in the east coast market as 
liquefied  natural gas (LNG) exports ramp up to 2022, further pushing up power prices".30 In 
response, the Commonwealth Government introduced a gas security mechanism in July 2017, 
involving possible LNG export restrictions.", in conjunction with paragraph 4.61: "(… ) both stressed 
the need for institutional reform, and provided recommendations for streamlining and improving 
NEM governance. (…) "  
 
Questions 36 -38 
36. Could Australia provide information on the actions it is intending to take, or is already taking, 
in respo nse to these issues listed in the paragraph, including notably the amendments to the 
competition laws referred to in the report? What impact does the government foresee from 
these measures on the need to maintain the Australian Domestic Gas Security Mechan ism in 
the future?  
 
RESPONSE: The Australian Domestic Gas Security Mechanism (ADGSM) is a targeted and 
temporary energy security measure that is due to be repealed in 2023.  
 
Other initiatives are being pursued to improve market conditions in the longer term. The 
Australian Government has extended the Australian Competition and Consumer Commission's 
Gas Inquiry to 2025 to provide important transparency, monitoring and oversight of gas market 
activities.  
 
37. Could Australia elaborate on how introducing a gas security mechanism based on (LNG ) export 
restrictions would be more efficient than a reform of the National Electricity Market and the gas 
market, along the lines outlined in paragraph 4.61, to achieve the legitimate objective of 
ensuring domestic security of gas supply?  
 
RESPONSE: The A ustralian Domestic Gas Security Mechanism (ADGSM) is only intended to be 
used in specific circumstances where market operators forecast a shortfall. In such cases, short 
term export restrictions could be imposed as a measure of last resort to ensure that t his shortfall 
is alleviated. Market and industry based solutions remain preferable.  WT/TPR/M/396/Add.1  
 
- 103 - 
 
  Ongoing gas and electricity market reforms are complementary and remain a priority for the 
Australian Government in ensuring secure, reliable and affordable energy supplies . 
 
38. Will Australia rescind the gas security mechanism once the Commonwealth Government has 
appropriately amended competition laws?  
 
RESPONSE: The Australian Domestic Gas Security Mechanism (ADGSM) is set to be repealed 
on 1 January 2023. The ADGSM was introduced as a targeted and temporary energy security 
measure of last resort.  
 
Page 119 para 4.89:  “[…] With a view to encouraging competition, the APRA introduced a phased 
or restricted licensing regime in 2018. The new regime, which is geared towards sm aller players and 
startups, allows new entrants two years to develop the resources and capabilities which would allow 
them to become fully -licensed ADIs. The approach has phased -in regulatory obligations, reflecting 
the restricted range of permitted activi ties. The APRA also put limitations on the size and operations 
of thes e restricted licensees, to reduce possible financial stability risks. It also requires that such 
institutions formulate an exit strategy (with resolution funds) to ensure they can smooth ly exit the 
market if necessary without causing financial stability concerns.”  
 
Question 39  
39. Could Australia clarify whether the restricted licensing regime applies to branches or only to 
established financial institutions? Could Australia clarify the types  of permitted activities 
covered by this regime and which regulatory obligations are phased in, and the timetable for 
the phasing in? (B1)  
 
RESPONSE: As per the Information Paper released in May 2018 - ADI licensing: restricted ADI 
Framework ( https://www.apra.gov.au/sites/default/files/information -paper -adi-licensing -
restricted -adi-framework -20180504.pdf ), there are eligibility c riteria for the restricted licensing 
regime. The Restricted Authorised Deposit -Taking Institution (ADI) licence is intended to 
facilitate entry into the banking system for applicants that require time to develop resources 
and capabilities before progressin g to an ADI licence and that would otherwise not be able to 
enter the market. Where an institution has significant resources and capabilities, or is proposing 
a higher risk business model, it would be expected to apply directly for an ADI 
licence.   Applica nts that are part of an existing ADI or foreign bank are unlikely to be eligible 
for the restricted route as these applicants are expected to have sufficient resources and 
capabilities to apply directly for an ADI licence.  
 
In practice this has meant that foreign bank branch applicants – or wholly -owned subsidiaries 
of foreign banks – have not been eligible for the restricted ADI route.  
 
Permitted activities are not specified, but it is expected that a restricted ADI would n ot conduct 
high-risk business. For example, no trading book activities would be permitted.  
 
Chapter 4 of the May 2018 Information Paper details which prudential requirements apply in 
full or in part during the restricted phase.   Restricted ADIs must progr ess to a full ADI licence 
within two years, and the licence is issued with a specific condition that it lapses after that time.  
 
Page 123 para 4.110.  Australia permits full foreign ownership of private general and life insurance 
companies. Foreign general  insurance companies may establish in Australia as branches or 
subsidiaries; there are no restrictions on the number or size of either. Foreign life insurance 
companies may only establish as subsidiaries but not branches. An exception to this rule exists f or 
eligible foreign life insurance companies from the United States; New Zealand; Japan; and the 
Republic of Korea under their respective RTAs. There are no restrictions on the number and size of 
foreign -owned life insurance companies.  
 
Question 40  
40. Could  Australia clarify whether there is a specific regulatory regime for the branches of foreign 
life insurance companies or whether the regulatory regime is non -discriminatory? What are the 
eligibility requirements for foreign life insurance companies to esta blish branches?  
 
RESPONSE: The requirements placed upon an Australian branch of a foreign life insurance 
company are very similar to those placed upon Australian life insurance companies. For WT/TPR/M/396/Add.1  
 
- 104 - 
 
  example, under section 16ZF of the Life Insurance Act 1995  (Life Act) a foreign life insurance 
company that establishes an Australian branch must establish and operate a Compliance 
Committee with the power to manage the Australian branch so that it complies with the Life 
Act. 
 
A foreign life insurance company is eligib le to establish an Australian branch where the foreign 
company is incorporated and authorised to carry on life insurance business in the United States 
of America, New Zealand, Japan, Korea or China (excluding Hong Kong, Macao and Separate 
Customs Territory  of Chinese Taipei, Penghu, Kinmen and Matsu). These arrangements were 
negotiated as part of Australia's bilateral free trade agreements with these WTO Members.  
 
Any foreign life insurance company is able to establish a subsidiary in Australia to write lif e 
insurance business in Australia or to acquire interests in Australian life insurance companies 
(subject to meeting requirements in relation to the ownership of such companies as set out in 
the Financial Sector Shareholdings Act 1998  and the Foreign Acqui sitions and Takeovers Act 
1995). 
 
Page 126 para 4.128 on telecoms . […] “ The Government is also developing a new Universal 
Service Guarantee (USG), which will ensure all Australians have access to voice and broadband 
services. Under the USG, the NBN will be  the default network for the supply of broadband services 
nationally, and will also support the supply of voice services in NBN Co's fixed -line and fixed wireless 
footprints. The Government proposed statutory infrastructure provider legislation to lock in this role 
for NBN Co, and for other providers who are the network providers in an area. The USG incorporates 
the existing Universal Service Obligation for voice, to ensure that voice services continue to be 
available from Telstra where they cannot be suppo rted by the NBN, particularly in NBN Co's satellite 
footprint. “  
 
Questions 41 -42 
41. Could Australia elaborate on the functioning of the new Universal Service Guarantee, in 
particular concerning the fact that it incorporates the existing Universal Service Obl igation for 
voice, whose performance agreement with TELSTRA foresees funding in excess of $200 million 
per year until 2032?  
 
RESPONSE: The then Minister for Communications’ media release of 5 December 2018 
(available at : https://www.minister.communications.gov.au/minister/mitch -fifield/news/ 
telecommunications -universal -service -guarantee ) provides additional information and links to 
a summary report on the development of the Universal Service Guarantee (USG). The USG 
builds on the Universal Service Obligation (USO) by providing that people in Australia should 
have access to broadband as well as voice services. That is, the USG covers two services, voice 
and broadband. The USO continues as part of the USG as analysis in 2018 found this was the 
most cost -effective way to deliver both USG services  (i.e. voice and broadband) for now. The 
Minister also announced that there is scope for some careful examination of payphone locations 
given the strong uptake of mobile services. He added that the Government will undertake 
further work in this area, while  continuing to work with consumers and industry on ways to 
improve the USG over time.  
 
42. In light of the fact that it incorporates the existing Universal Service Obligation for voice, how 
will the new Universal Service Guarantee address the concerns expressed by the Productivity 
Commission in its Inquiry Report No. 83 of 28 April 2017 on the “Telecommunications Universal 
Service Obligation”, where such existing Universal Service Obligation is considered to lack 
transparency and to have an adverse effe ct on competition.  
 
RESPONSE: The then Minister for Communications responded to the Productivity Commission 
in December 2017 – see: https://www.minister.communications.gov.au/minister/mitch -fifield/ 
news/turnbull -government -improve -regional -telecoms -delivery -new-universal . The Minister 
stated that four prerequisites would need to be met before any cha nges would be made to the 
existing USO, namely that:  
• broadband services would need to be available to 100 per cent of Australian premises, 
on request, at the completion of the National Broadband Network (NBN) rollout in 
2020 
• voice services would need to be  available to 100 per cent of Australian premises on 
request  WT/TPR/M/396/Add.1  
 
- 105 - 
 
  • any proposed new service delivery arrangements would need to be more cost effective 
than the existing USO contract (including any transitional costs)  
• a new consumer safeguards framework would nee d to be in place, following a review 
and associated public consultation process.  
 
Importantly, the Minster indicated that the current USO arrangements would remain in place 
until these prerequisites could be satisfied. That is, the existing USO arrangement s would remain 
the default unless and until these prerequisites were met and a decision was made to change 
them. The USO continues as part of the USG as analysis in 2018 found this was the most cost -
effective way to deliver both USG services (i.e. voice an d broadband) for now. More specifically, 
the summary report on the development of the USG (cited above) noted that the closure of 
Telstra's copper network could involve significant additional costs for NBN Co, in excess of 
estimated savings.  
 
Page 130 para  4.149. Maritime transport . “In 2017, the Government introduced the Coastal 
Trading (Revitalising Australian Shipping) Amendment bill, 2017. According to the authorities, the 
Bill aims at creating a simpler and more flexible coastal shipping industry that carries an increased 
share of freight.”  
 
Question 43  
43. Could Australia describe whether any measures under the bill entail National Treatment 
limitations?  
 
RESPONSE: The Coastal Trading (Revitalising Australian Shipping) Amendment Bill 2017 (the 
Amendment Bi ll) is no longer current. The Amendment Bill was available for debate in the 
Senate in April 2019 when Parliament was prorogued. It has not been reintroduced.  
 
Consultation is currently being undertaken with stakeholders on options for coastal trading 
reform. The outcomes of this consultation will be provided to the Australian Government for 
consideration.  
 
Page 131 section on Air Transport: The EU is aware that the air transport sector in Australia is 
still relatively restricted. Board members and the chair of Australian airlines must be Australian 
citizens, and the operational base and head office must be located in Australia. Additionally, the 
formerly state -owned airline QANTAS  must be at least 51% Australian -owned, 2/3 of its 
directors and i ts chair must be Australian citizens. §4.164 of the secretariat report notes similar 
foreign ownership restrictions on Australian airports.  
 
Given Australia's geography, accessibility of air services for regional areas is a major problem; 
§4.162 notes the government provides support for regional air services. At the same time, the lack 
of competition has increased prices, leading the government to direct an inquiry into the economic 
impact of air services and airport ownership on regional areas.  
 
Foreig n airlines may be permitted to operate flights originating or terminating in Australia to and 
from third country depending on bilateral agreements (1st -5th freedoms of the air), however, 
domestic flights can only be operated by Australian airlines, as Aust ralia does not allow air cabotage 
(9th freedom) except for New Zealand , although the government's "Harper" Competition Policy 
Review in 2015 recommended these restrictions be removed.  
 
Questions 44 -45 
44. What is the rationale behind maintaining restrictions on foreign ownership of Australian airlines 
(particularly QANTAS), and airports, given the lack of competition, and high cost of regional air 
services?  
 
RESPONSE: Australia has one of the most open and competitive domestic aviation markets in 
the world. At  the Commonwealth economic regulatory level, Australian based airlines are free 
to operate any domestic service they deem commercially viable, subject only to holding the 
necessary operational safety and security approvals.  
 
Australian Government policy al lows any foreign investor (airline or other) to own up to 100 per 
cent of an Australian domestic airline, subject to approval by the Foreign Investment Review WT/TPR/M/396/Add.1  
 
- 106 - 
 
  Board. The restrictions on ownership of Australian international airlines protect their designati on 
in accordance with the ownership and control requirements in many of our bilateral agreements.  
 
While foreign investment in Australian airports is welcomed and recognised as bringing broad 
benefits to the Australian economy and people, the Australian Go vernment recognises there is 
considerable national and public interest in maintaining majority Australian ownership and 
control of nationally significant transport infrastructure such as airports. The existing restrictions 
ensure no area of national and pu blic interest can be compromised by commercial 
considerations.  
 
The cost of regional air services reflects the nature of these services, with long thin routes often 
increasing the cost per kilometre of travel.  There is no economic regulation of these serv ices 
at the federal level, meaning any domestic airline (including foreign owned airlines) can 
compete on these routes. Some state governments restrict competition and/or provide 
subsidies to help ensure the viability of routes that would otherwise be unco mmercial and not 
receive any services.  
 
45. Why does Australia maintain restrictions on air cabotage, when its own Competition Policy 
Review recommended that they be removed?  
 
RESPONSE: Cabotage currently gives effect to national interest, safety and security objectives. 
The Harper Competition Review recommended that "air cabotage restrictions should be 
removed to specific areas … unless it can be demonstrated that the benefits of the restrictions 
to the community as a whole outweigh the costs, and the objectiv es of the restrictions can only 
be achieved by restricting competition."  
 
The Australian Government’s response to the Harper review indicated that the Government is 
committed to ensuring that aviation is safe, reliable, efficient and competitive.  The Gove rnment 
will continue to examine ways to reduce costs for consumers and producers in an already highly 
liberalised aviation sector and remove impediments to increased services while maintaining 
safety and security as its highest aviation priorities.  
 
Other EU questions  
 
Fuel Standards:  Australia's fuel standards are not mentioned in the Secretariat report. However, 
due to the comparably high Sulphur content, vehicles with high -efficiency engines that are tuned to 
operate on low -Sulphur fuel cannot operate in Australia. This represents a  considerable trade barrier 
that results in having more polluting vehicles in Australia.  
 
Questions 46 -47 
46. In the 2019 National Strategy for Electric Vehicles, the Australian government has stated that 
“As part of our commitment to cleaner air, the Coalition Government is also improving 
Australia’s fuel quality to ensure access to the latest vehicles, and savings for motorists from 
more fuel efficient vehicles.” Could Australia provide further elements on the precise timing 
and scope of any foreseen initiative in this regard?  
 
RESPONSE: Since 2009, the maximum sulfur content allowed under Australia's Automotive 
Diesel standard is set at 10ppm.   The Government has decided to lower the maximum sulfur 
limit to 10ppm across all petrol grades from 1 July 2 027. Australia’s new Petrol standard, which 
came into effect in October 2019, reduces the pool average of aromatics in petrol from 42 per 
cent to 35 per cent from 1 January 2022. The Government will consult with industry to review 
aromatics in petrol by 20 22 to set a reduced limit by 2027 or establish an alternative solution.  
 
47. To which degree will this strategy lead to Australia adhering to international best practices on 
fuel standards and to effectively removing technical barriers to trade for high -efficiency 
vehicles?  
 
RESPONSE: Please refer to our answer to the question above.  
 
Regarding domestic Reservation of Liquid Natural Gas (LNG). The EU notes that The Western 
Australian state government has local gas reservation policy for many years, whereby 15%  of gas 
production is reserved for consumption in that state. In 2017, the Federal Government introduced WT/TPR/M/396/Add.1  
 
- 107 - 
 
  the Australian Domestic Gas Security Mechanism (ADGSM), whereby the Energy Minster can impose 
export restrictions in any given year if it appears there  may be a shortfall of supply in the domestic 
market. The government is now also conducting a review of the ADGSM, which is considering (among 
other measures) a more permanent gas reservation scheme, whereby a percentage of gas 
production would be reserved  for the local market . 
 
Question 48  
48. How does Australia reconcile these domestic energy reservation mechanisms with its policy 
that is in principle in line with free trade given that those are distortionary?  
 
RESPONSE: The Australian Domestic Gas Security M echanism (ADGSM) is a targeted and 
temporary energy security measure.  
 
The Australian Government is in the early stages of considering options on a possible national 
gas reservation scheme.  
 
Regarding the movement of Natural Persons (Mode IV Service Delive ry), the Australian Government 
is working with the business community with the view to identify barriers to Australia -based 
exporting firms in the area of services. Primary consultations (in the form of an 'industry -led services 
export action plan' commiss ioned by Trade Minister Simon Birmingham) have produced 17 industry  
recommendations focusing on three broad areas: reducing domestic regulatory complexity; 
addressing barriers in international markets; and helping services firms to internationalize.  
 
Question 49  
49. What are the measures being put in place to address the issue of domestic regulatory complexity 
in regards to the access of international talent for services firms? EU Question No. Does Australia 
intend to commission an independent review of the skilled visa regime and restrictive criteria 
(such as age restrictions), given that current and regular domestic consultation have requested 
such action?  
 
RESPONSE: Australia has permanent and temporary visa options that enable Australian 
businesses to  access global talent. To further ensure Australia is attracting the best and the 
brightest talent, a number of Global Talent programs were introduced in 2018 and 2019.  
 
Information about these programs can be found: https://immi.homeaffairs.gov.au/visas/ 
working -in-australia/visas -for-innovation . 
 
The Productivity Commission (PC) made an inquiry into Migrant Intake into Australia and 
released a report in 201 6. The analysis and recommendations have supported policy thinking 
in relation to Australia’s skilled migration program. A further independent review of the program 
has not been planned.  
 
The PC report can be found https://www.pc.gov.au/inquiries/completed/migrant -intake/report . 
The report states that: Government expenditure per person increases rapidly after the age of 
60 years, labour market participation falls precipitously a nd taxes paid decrease  The steep rise 
in such net costs to taxpayers after age 60 years means that the present value of the future 
stream of net transfers to immigrants required from existing Australians is positive at ages 
much earlier than 60 years (and  under any realistic scenarios at an age less than 50 years).  
 
In July 2019 the Prime Minister established a Deregulation Taskforce led by the Treasurer to 
drive improvements to the design, administration and effectiveness of government regulation 
to ensur e it is fit for purpose.  The Taskforce will develop and recommend solutions to lower 
the costs of regulation while retaining the benefits, making it easier for businesses to invest, 
create jobs and grow the economy.  The Taskforce’s primary focus is to id entify barriers to 
investment and job creation from the perspective of business, and then to work with business 
and agencies to co -design solutions across Federal and State and Territory jurisdictions.  Further 
information on this initiative is available a t: https://treasury.gov.au/review/deregulation -
taskforce . 
 
In 2019, the Australian Government commenced an initiative working in close collaboration with 
industry across the services sec tor to identify and address barriers to services exports and 
competitiveness. In August 2019 the services industry presented government with Industry's WT/TPR/M/396/Add.1  
 
- 108 - 
 
  Recommendations - An Action Plan to Boost Australia's Services Exports.  In November 2019 
the Government  released the Government Response to this Action Plan.  This is an ongoing 
Industry -Government initiative. Further information is available at : 
https://dfat.gov.au/trade/services -and-digital -trade/Pages/services -export -action -plan.aspx . 
 
The EU is informed that ACCC (the regulator on international cyber strategy) issued several reports 
in 2019 among which one mentions the adoption of new rules on data protection in particular. The 
Government following the issuance of these reports announced its intention to review the 
recommendations made and to consult stakeholders on the implementation of new rules.  
 
Question 50  
50. Could Australia inform about the t imetable for the proposed adoption of new rules that would 
implement the recommendations of the ACC, in particular but not only on data protection? 
Could Australia give indication regarding the consultation process?  
 
RESPONSE: On 12 December 2019 the Australian Government released its response and 
implementation roadmap to the Australian Competition and Consumer Commission’s (ACCC) 
Digital Platforms report. The Government has supported in principle, subject to further 
consultation and consideration of specific design, four of the specific privacy protections 
recommended by the ACCC. These will:  
 
- ensure technical data and online indicators, such as IP addresses, device identifiers 
and location data, that may be used to identify an individual, are affor ded protection by 
the Privacy Act;  
- strengthen notice and consent requirements; and  
- allow consumers to directly seek compensation in a court for breaches of the Privacy 
Act. 
 
The Australian Government will seek further views on these protections, with a  focus on making 
sure they can be provided in an effective way that does not impose significant regulatory 
burden. This consultation will form part of the consultation already announced on the privacy 
code for social media and online platforms and strength ened penalties first announced by the 
Government in March 2019.  
 
Draft legislation increasing penalties and introducing a social media privacy code will be released 
for consultation and, subsequent to consultation, introduced to the Parliament in 2020. Th e 
Government will also build on these commitments by taking a longer term view of Australia’s 
privacy regime by accepting the ACCC’s recommendation for a broader review of the Privacy 
Act, to be undertaken by the Attorney -General’s Department, which will c ommence mid -2020 
and conclude in 2021.  
  WT/TPR/M/396/Add.1  
 
- 109 - 
 
  European Union  follow up questions  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Page 73 para 3.112 - Country of Origin Labelling : The report mentions Australia's introduction 
for new country of origin labellin g system, as enforced from the 1st of July 2018 by the Australian 
Competition and Consumer Commission. The mandatory labelling requirements include a country of 
origin statement and a prescribed logo/mark. However, “made in the EU” is still not recognized as a 
legal origin label.  
 
(Following Question and Response provided earlier in Australia’s response to written 
questions)  
 
EU Question 26 :  Could Australia explain the rationale for not recognizing "made in the EU" as an 
origin label?  
 
RESPONSE : Under Australia’s Country of Origin Labelling (CoOL ) there are country of origin 
labelling requirements that must be met for food imports into Australia.  
 
CoOL is backed by Australian origin marking requirements that are set out under the Commerce 
(Trade Descriptions) Act 1905 (the Act) and the Commerce ( Trade Descriptions) Regulation 
2016 (the Regulation). The Act specifies that a trade description include ‘any description, 
statement, indication…. as to the country or place in or at which the goods were made or 
produced’. The regulations state that the tr ade description must include ‘the name of the 
country in which the goods were made or produced’.  
 
Australia's CoOL system has been designed to address a consumer information objective, and 
is supported by robust evidence.  
 
EU follow -up question to initial  question 26  
 
Question 1  
1. The EU notes Australia’s reply and in particular that “The Commerce (Trade Descriptions) Act 
1905 (the Act) specifies that a trade description include ‘any description, statement, 
indication…. as to the country or place in or at wh ich the goods were made or produced’.  
 
The EU believes that the notion of “place” should apply to the EU origin as a whole, allowing for 
the recognition of "made in the EU" as an origin label”.  
 
Would Australia commit to ensure that its Commerce (Trade D escriptions) Regulation 2016 (the 
Regulation) allows for such consideration of origin to be made possible?  
 
RESPONSE:  Australia’s Country of Origin Labelling requirements are designed to fulfil a 
consumer information objective; that is, to provide consume rs with specific information about 
the country in which products  are made or produced. These requirements are set out in the 
Commerce (Trade Descriptions) Act 1905 (the Act) and the Commerce (Trade Descriptions) 
Regulation 2016 (the Regulation).  
 
The Act and the Regulation prescribe the specific goods or classes of goods that require country  
of origin  labelling when imported into Australia. For goods subject to mandatory country of 
origin labelling, the Act and the Regulation also prescribe the type and po sitioning of the label.  
 
The Act specifies that a trade description includes ‘any description, statement, indication…. as 
to the country  or place in or at which the goods were made or produced’. While the regulations 
state that a trade description must inc lude ‘the name of the country in which the goods were 
made or produced’.  
 
To comply with the regulations, labels can include a reference to a place, or indeed to a regional 
bloc, but the trade description must include the name of the country.  
 
For example, “Made in France, in the EU”, complies with Australia’s Country of Origin Labelling 
requirements, however, “Made in the EU” does not.  
  WT/TPR/M/396/Add.1  
 
- 110 - 
 
  Guatemala  
PREGUNTA DE GUATEMALA PARA EL TPR DE AUSTRALIA  
3.3.7 Derechos de propiedad intelectual  
3.3.7.5.8 Derecho de autor  
 
3.204. Durante el período objeto de examen, el Gobierno puso en marcha reformas decisivas para 
reducir las infracciones en línea del derecho de autor. Mediante la Ley de Modificación de la Ley de 
Derecho de Autor (Infracciones e n línea) de 2015 se modificó la Ley de Derecho de Autor para que 
los titulares de derechos de autor pudieran solicitar ante el Tribunal Federal de Australia un 
"mandamiento judicial de bloqueo", es decir, una orden que obligue a un proveedor de servicios d e 
telecomunicaciones a bloquear el acceso a un sitio en línea fuera de Australia que tenga como 
principal finalidad infringir el derecho de autor o facilitar su infracción. La Ley de Modificación de la 
Ley de Derecho de Autor (Infracciones en línea) de 201 8 reforzó las disposiciones en materia de 
mandamientos judiciales de bloqueo, al ampliar su aplicación a los sitios web que tengan como 
efecto principal infringir el derecho de autor o facilitar su infracción; permitir que se dicten 
mandamientos judiciales  contra proveedores de motores de búsqueda; introducir una presunción 
refutable de que el sitio en línea está fuera de Australia; y establecer un mecanismo para que los 
titulares de derechos de autor y los proveedores de servicios de telecomunicaciones pue dan convenir 
posteriormente en bloquear otros dominios relacionados. Estas modificaciones responden a 
preocupaciones específicas expresadas por los titulares de derechos de autor y apuntan a resolver 
las dificultades que supone adoptar medidas directas par a asegurar la observancia contra entidades 
que actúan fuera de Australia. Desde que se promulgó la Ley de 2015 se han dictado mandamientos 
judiciales de bloqueo en varias ocasiones, por ejemplo, en relación con el sitio web "Pirate Bay"  
 
3.205. La Ley de M odificación de la Ley de Derecho de Autor (Acceso de personas con discapacidad 
y otras medidas) de 2017 mejoró el acceso al material protegido por derecho de autor de las 
bibliotecas, los archivos y las instituciones de enseñanza, así como de las personas con discapacidad 
y sus asistentes, en cumplimiento de las obligaciones que corresponden a Australia en virtud del 
Tratado de Marrakech. Además, la Ley de Modificación de la Ley de Derecho de Autor (Proveedores 
de servicios) de 2018 hizo extensivas las exce pciones de protección previstas en la Ley de Derecho 
de Autor a una amplia gama de proveedores de servicios en los sectores de la discapacidad, la 
enseñanza y la cultura, con lo que limitó los recursos disponibles contra esos proveedores en caso 
de infracc ión en línea de los derechos de autor, siempre que se cumplan determinados criterios  
 
Question 1  
1. Podría el Gobierno de Australia ampliarnos información con respecto a las reformas legales que 
realizó a su ley de Derecho de Autor, en especial lo relacionado  al proceso para evitar 
infracciones en línea?  
 
RESPONSE: In 2018 Australia made amendments to copyright law to improve the online 
enforcement of copyright and reduce the availability of infringing content online.  
 
Australia firstly reformed its copyright  safe harbour scheme introduced in 2004 under the 
Copyright Act 1968  to extend the scheme from applying only to carriage service providers 
(CSPs) defined under the Telecommunications Act 1997  (that is telecommunications internet 
service providers) to the f ollowing additional online service providers:  
• educational institutions, including universities, schools, technical colleges, 
training bodies and pre -schools;  
• libraries that either make their collection available to the public or are 
Parliamentary librarie s;  
• archives, including the National Archives of Australia and specified state 
archives, galleries and museums;  
• key cultural institutions including specific archives and libraries that are not 
open to the general public; and  
• organisations assisting persons people with a disability, which undertake online 
activities under the scheme (i.e. caching, hosting of third p arty material).  
The effect of the reforms is that these sectors can work with copyright owners to take reasonable 
steps to reduce copyright infringement and reduce their liability for any potential infringement 
on their online systems.  
 WT/TPR/M/396/Add.1  
 
- 111 - 
 
  Secondly, the Gover nment made changes in the 2018 Copyright Amendment (Online 
Infringement) Act  to the operation of its copyright website blocking scheme which enabled 
injunctions to be extended to search engine providers, as well as CSPs. It broadens the range 
of infringing  websites that can be addressed through website blocking orders, and enabled the 
Court to make more responsive blocking orders.  
  WT/TPR/M/396/Add.1  
 
- 112 - 
 
  Hong Kong, China  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
Trade Policies by Sector  
Banking Services  
(WT/TPR/S/396, Page 122, paras 4.101 -4.102)  
To investigate alleged misconduct in banks and other financial services entities, the Australian 
Government established a Royal Commission in 2017. Focusing on the cause and prevention of 
misconduct, the commissi on issued the final report in February 2019, making 24 recommendations 
on the dishonest misconduct of institutions and individuals, and on the responsibility of the 
regulators for not acting.  
 
Question 1  
1. What is the latest implementation status of the reco mmendations?  What are the new or 
enhanced measures that have been put in place?  
 
RESPONSE: In the Royal Commission’s Final Report, Commissioner Hayne made 76 
recommendations for reform. Of these, 54 recommendations were directed to the Government, 
12 to t he regulators and 10 to the industry. In addition to the Commission’s 76 
recommendations, the Government in its response announced a further 18 commitments to 
address issues raised in the Final Report.  
 
As at 6 February 2020, the Government had implemented  24 commitments and had 
substantially progressed a further 35, which had been, or were being, consulted on ahead of 
their introduction.  
 
Key completed commitments include:  
• implementing legislation to end grandfathered commissions for financial advisors;  
• establishing a best interest  duty for mortgage brokers and reforms to mortgage 
broker commissions;  
• applying unfair contract terms protections to insurance contracts; and  
• strengthening and harmonising the powers of the Australian Securities and 
Investment Commission, including licensing powers and its ability to ban people in the 
financial sector.  
 
Telecommunication Services  
(WT/TPR/S/396, Page 128, paras 4.138 -4.139)  
Regarding television broadcasting and film production, there are three different  tax incentives to 
produce films and television programme in Australia, namely producer offset, location offset, and 
the post, digital and visual effects offset.  Only production companies that are permanently resident 
in Australia or with a permanent esta blishment there are eligible to apply, subject to specified offset 
rate and qualifying Australian production expenditure (QAPE) threshold.  
 
Question 2  
2. Are foreign service suppliers subject to the same treatment as other domestic service suppliers 
in the co urse of considering the granting of tax incentives? Is there any plan to review the 
incentives, such as the rate of rebate and threshold in near future?  
 
RESPONSE: All applicants to the tax incentives must be either Australian resident companies 
or foreign  resident companies with permanent establishment in Australia and an Australian 
Business Number. For expenditure to be eligible under the tax incentives, subject to other 
requirements, it must be incurred in Australia. On 12 December 2019, the Australian 
Government released its response and implementation roadmap to the Australian Competition 
and Consumer Commission’s (ACCC) Digital Platforms Inquiry. As part of the response, Screen 
Australia and the Australian Communications and Media Authority (ACMA), wil l prepare an 
Options Paper that will look at how to best support Australian stories in a modern, multi -platform 
environment. This will involve consideration of the current policy settings of the tax rebates.  
 
 
 
 WT/TPR/M/396/Add.1  
 
- 113 - 
 
  Maritime Transport Services  
(WT/TPR/S/396, Pages 130 -131, para 4.153)  
A range of tax incentives may be available in respect of operations associated with the shipping 
industry to encourage investment in the industry and the development of sustainable employment 
and skills opportuniti es for Australian seafarers.  
 
Question 3  
3. Are these incentives provided to both local and foreign service suppliers on a non -discriminatory 
basis?  
 
RESPONSE: Yes. The tax incentives under the Shipping Reform (Tax Incentives) Act 2012  are 
provided to an entity that is a constitutional corporation within the meaning of paragraph 51(xx) 
of the Constitution. Paragraph 51 (xx) of the Constitution reads "foreign corporations, and 
trading or financial corporations formed within the limits of  the Commonwealth".  
 
Tourism  
(WT/TPR/S/396, Page 10, para 26; Page 133, para 4.170)  
The Australian tourism sector is a sector of growing economic importance and source of employment. 
An industry -led Beyond Tourism 2020 Steering Committee prepared a report to the Government as 
the basis for work on the Tourism 2030 strategy.  Tourism ministers were to consider the direction 
of the Tourism 2030 in October 2019.  
 
Question 4  
4. What is the latest progress regarding the development of Tourism 2030 strategy? What is  the 
implementation timeline?  
 
RESPONSE: An extensive national consultation program on the development of the Tourism 
2030 strategy was undertaken during September -November 2019. Austrade and Tourism 
Australia are working with State and Territory Governments and the tourism industry in 
developing  a draft strategy for consideration by Ministers during 2020. At present there is no 
timeframe nominated for the release of the strategy, but it will commence on 1 January 2021.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
Trade and Investment Polic y  
(WT/TPR/G/396, Page 9, para 3.4; Page 13, para 3.33)  
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%. If all current trade negotiations were 
conclud ed, 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 around 90% 
of Australia’s trade will be covered by FTAs by 2022.  Australia increase d 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.  
 
Question 5  
5. According to the website of Australian Government’s Department of Foreign Affairs and Trade, 
a number o f FTAs are under negotiation between Australia and other economies currently. In 
order to meet the target of 90% of Australia’s trade being covered by FTAs, what is Australia’s 
plan to initiate new FTA negotiations in the near future?  Is there a list of p rospective economies?  
 
RESPONSE: The Australian Government has committed that around 90 per cent of Australia's 
two-way trade will be covered by FTAs by 2022. It is pursuing this commitment through the 
conclusion of free trade agreements under negotiation and planned, with a focus on signature 
of the Regional Comprehensive Economic Partnership (RCEP), and conclusion of the Australia -
EU FTA, and the Australia -UK FTA.  
  WT/TPR/M/396/Add.1  
 
- 114 - 
 
  Iceland  
WTO Secretariat Report: Section 3.3.6, Para. 3.149, p. 81 and Australian Government 
Report, Section 3.8.3, Para. 3.83 -3.89, p. 4 -25 
 
Australia played an active role in the adoption and implementation of the Buenos Aires Declaration 
of Trade and Women’s Economic Empowerment adopted at the MC11. As is mentioned in chapters 
3.8.3 of the report (WT/TPR/G/396) Australia has since the adoption of the Declaration focused on 
finding practical ways to promote women’s economic empowerment by raising women’s participation 
in, or reducing barriers to access the multilateral rules -based trad ing system and the international 
economy.  
 
Iceland would like to ask Australia the following questions:  
 
Question 1  
1. What is the participation of women in the economy of Australia, and particularly in external 
trade?  
 
RESPONSE: The Australian Bureau of Stat istics (ABS) issues gender indicators (latest 
November 2019) including on women’s economic security and provides “Gender Comparisons” 
under “Snapshots of Australia”.  The ABS has also produced a “Profile of Australian Women in 
Business” in the past. The De partment of Education, Skills and Employment released, “A 
statistical snapshot of women in the Australian workforce” in March 2019.  
 
Women comprise 47 per cent of all employed persons in Australia and the workforce 
participation rate is 61.1 per cent for women.  
 
As of January 2019, 34.9 per cent of all business operators were women, representing an 
increase of 2 per cent over 2018. Wom en who operated their own business made up 12.1 per 
cent of those employed in Australia.  
 
In terms of domestic policy, Australia’s Women’s Economic Security Statement and package of 
measures targets: workforce participation; earning potential, and; econom ic independence.  
 
Australia has not produced statistics focusing on women’s participation in international trade 
per se, but qualitative and anecdotal reports provide glimpses into the situation. The Women in 
Global Business (WIBG) initiative, established by the Government in 2010, commissioned a 
sample survey on Australian women in international business leading to the 2013 report, 
“Australia’s underestimated resource: women doing business globally”. The main findings of 
this report based on the survey res ults included:  
 
- there was a large, active group of women -owned businesses operating across a wide range 
of foreign markets, predominantly young, SMEs that had internationalised in the previous 
six years;  
- 29 per cent of the women -owned businesses earnt more than 50 per cent of their sales 
revenue internationally;  
- more than 70 per cent were well -educated and nearly half spoke a foreign language;  
- a similar sized group of women held senior roles in international organisations;  
- Australia’s women -owned busine sses were largely successful overseas, operating in a 
number of foreign markets, and keen to continuing to expand their businesses overseas.  
 
Question 2  
2. Have particular barriers that limit women’s participation in trade been identified, and, if so, how 
have they been addressed?  
RESPONSE: The report, “Australia’s underestimated resource: women doing business globally” 
(https://www.austrade.gov.au/ArticleDocuments/1414/Australias -underestimated -resource -
women -doing -business -globally -exec-summary.pdf.aspx ) cited main barriers as: resource 
issues, especially relative to costs, including access to alternative sou rces of funding; knowledge 
issues, such as awareness of assistance programs, concerns with risks from exchange rate 
fluctuations and the high Australian dollars, and; personal challenges from managing family and 
caring roles. The WIGB initiative seeks to e mpower Australian women to overcome such barriers 
by increasing access to mentors, role models and networks.  WT/TPR/M/396/Add.1  
 
- 115 - 
 
  The Australian Trade and Investment Commission (Austrade) supports female -led businesses 
to export and provides services and greater opportunities to drive higher representation of 
women engaging and succeeding in international business, pursuant to its Diversity and 
Inclusion Strategy (2019 -21). 
 
Austrade provides tailored services for women to conduct business internationally. Austrade 
offers, with  the Chief Executive Women network, Women in Export Scholarships awards to 
senior business women in an internationally focused role to attend a Harvard Business School 
course. Austrade administers the Export Market Development Grants scheme, which is targe ted 
at SME businesses where women business owners and operators are concentrated.  
 
The Department of Foreign Affairs and Trade is also supporting women entrepreneurs in the 
Indo-Pacific region. The Women Trading Globally program trains women on making the ir 
businesses ‘export ready’, by helping them build networks and develop mentoring relationships 
with women exporters in Australia.  
 
Australia is also one of the largest donors to the ILO’s Better Work Program which aims to 
improve workplace standards and  eliminate gender discrimination in exporting garment 
factories where the majority of workers are women.  
 
Question 3  
3. Are there any best practices that Australia can share with the WTO membership as regards 
women’s economic empowerment and trade? For exampl e, could Australia provide information 
on its efforts to ensure gender equality in the workplace through the Workplace Gender Equality 
Procurement Principles mentioned in chapter 3.3.6 of the Secretariat reports (WT/TPR/S/396).  
 
RESPONSE: The Workplace Gen der Equality Procurement Principles and User Guide support 
the Workplace Gender Equality Act 2012  (WGEA Act) as a Procurement Connected Policy. The 
WGEA Act’s administering agency is responsible for the Principles which are summarised as,  
 
“To be consider ed for Australian Government procurement contracts valued at or above the 
relevant procurement thresholds, certain tenderers (employers with 100 or more employees in 
Australia) must be able to demonstrate they are compliant with the Workplace Gender Equali ty 
Act 2012 by supplying a letter of compliance either with their submission to an approach to 
market or before entering into a contract.”  
 
Anecdotally, reports suggest the Workplace Gender Equality Procurement Principles incentivise 
organisations with 100 or more employees to report annually to the Workplace Gender Equality 
Agency, hence lifting compliance rates.  
 
The Workplace Gender Equality Procurement Principles and User Guide support the Workplace 
Gender Equality Act 2012 (WGEA Act) as a Procurement Connected Policy. The WGEA Act’s 
administering agency is responsible for the Principles which are summarised as,  
 
“To be considered for Australian Government procurement contracts valued at or above the 
relevant procurement thresholds, certain tenderers (employers with 100 or more employees in 
Australia) must be able to demonstrate they are compliant with the Workpl ace Gender Equality 
Act 2012 by supplying a letter of compliance either with their submission to an approach to 
market or before entering into a contract.”  
 
Anecdotally, reports suggest the Workplace Gender Equality Procurement Principles incentivise 
organ isations with 100 or more employees to report annually to the Workplace Gender Equality 
Agency, hence lifting compliance rates.  
 
Question 4  
4. Have the effects of trade policy on women and men been measured and monitored, and if so 
how? 
 
RESPONSE: The Austral ian Government has not conducted nor commissioned systematic 
monitoring or measurement of the differential impacts of Australia’s international trade 
policies on women.  
  WT/TPR/M/396/Add.1  
 
- 116 - 
 
  India  
Questions based on Secretariat Report (WT/TPR/S/396)  
 
Page 55, Para 3.45  
 
Quest ion 1  
1. “In 2009, the Australian Customs Service introduced some flexibility, by allowing additional 
time to importers/owners genuinely not aware of the need to, or unable to, obtain the required 
permission in advance. In such instances, Customs may detain the goods for up to 30 days 
while permission is sought. However, Customs will seize the goods in accordance with the 
Customs Act, should the request be refused , or no permission be sought.”  
 
What is the procedure by which the permit referred is obta ined?  
 
RESPONSE: Importers seeking post -importation permission for goods need to lodge an 
application with the appropriate permit issuing agency.  
 
Details of the permit issuing agencies for prohibited goods can be found on the Australian Border 
Force’s website: https://www.abf.gov.au/importing -exporting -and-manufacturing/prohibited -
goods/categories . 
 
Page 7, Para 4  
 
Questions 2 -3 
2. India requests Australia to provide deta ils of equity caps for foreign investment in airports, civil 
aviation, marine transport and telecommunications?  
 
RESPONSE: The Department of Infrastructure, Transport, Regional Development and 
Communications regulates issues of ownership and control at the  leased federal airports through 
restrictions provided under the Airports Act 1996 (Cth) (the Act) and the associated regulations. 
[Link to https://www.legislation.gov.au/Details/C2010C00109 ] 
 
There are major restrictions on ownership at leased federal airports:  
1. Foreign ownership  
Under section 40 of the Act, a foreig n person or a group of foreign persons cannot own a stake 
in an airport -operator company of more than a 49 per cent. A person’s stake includes the 
interests of the person’s associates.  
 
2. Airline ownership  
Under section 44 of the Act, an airline cannot o wn a stake in an airport -operator company of 
more than 5 per cent limit. An airline’s stake includes the interests of the airline’s associates.  
 
3. Cross -ownership  
Under section 50 of the Act, a person cannot own more than a 15 per cent stake in each of a 
pair of airport -operator companies (Sydney and Perth, Sydney and Brisbane, Sydney and 
Melbourne).  
 
Marine Transport  
The Shipping Registration Act 1981 (Cth) requires that a ship must be majority Australian -
owned if it is to be registered in Australia, unless it is designated as chartered by an Australian 
operator.  
 
Telecommunications sector  
Foreign ownership in the industry is subject to the general provisions of the Foreign Acquisitions 
and Takeovers Act 1975 (Cth). The exception is Telstra. Under the Telstra Corporation Act 1991 
(Cth), only 35 per cent of Telstra shares can be owned by foreign interests.  
 
3. What is the threshold limit of proposed investment which is screened on a case -by-case basis 
by the Foreign Investments Review Boa rd to ensure that the investments are consistent with 
domestic requirements and in the national interest? Can Australia provide few examples of the 
same?  WT/TPR/M/396/Add.1  
 
- 117 - 
 
  RESPONSE: The Australian Government welcomes foreign investment. Australia’s foreign 
investment framew ork operates as a ‘negative test’. This means there is a presumption that 
foreign investment proposals are allowed to proceed unless found to be contrary to the national 
interest. In other words, the framework operates not by approving proposed foreign 
investments based on their expected benefits, and instead by prohibiting investments if they 
are likely to be contrary to Australia’s national interest.  
 
Foreign investment is screened if the proposed investment exceeds prescribed monetary and/or 
equity thres holds. These thresholds can be found on the Foreign Investment Review Board 
website, Guidance Note 34: https://firb.gov.au/guidance -resources/guidance -notes/gn34 . 
 
Page 7, Para 6  
 
Question 4  
4. Australia is requested to provide the list of 201 additional products which they are implementing 
by virtue of expansion of the information technology agreement.  
 
RESPONSE: Australia was a participant in the negotiations to expand coverage to 201  more 
products in the Information Technology Agreement (ITA). Details of Australia’s commitments 
under the ITA can be viewed at:  
https://dfat.gov.au/tr ade/organisations/wto/Pages/information -technology -agreement.aspx . 
 
Page 7. Para 6  
 
Question 5  
5. Australia was a respondent in one new dispute settlement case, and a complainant in two new 
cases, in the period under review. Please elaborate on the specific i ssues raised in the case in 
which Australia is a respondent.  
 
RESPONSE: Australia is a respondent in DS529, Australia – Anti-Dumping Measures on A4 
Copy Paper, a dispute brought by Indonesia. Indonesia’s alleges that the methodology 
undertaken by Australia’s Anti -Dumping Commission in calculating the dumping margin and 
imposin g anti -dumping duties on two Indonesian exporters is inconsistent with the certain 
provisions of The Agreement on Article VI of the General Agreement on Tariffs and Trade 1994 
(the Anti -Dumping Agreement).  
 
In the underlying investigation, the Anti -Dumpin g Commission found that a "particular market 
situation" existed in the Indonesian A4 copy paper market such that the domestic price of A4 
copy paper was not suitable for determining normal value. The Anti -Dumping Commission 
instead “constructed” the normal  value based on an alternative methodology set out in Article 
2.2 of the Anti -Dumping Agreement. In constructing the normal value, the Anti -Dumping 
Commission's found the price of pulp, the primary input into the production of A4 copy paper, 
was affected b y the "particular market situation" and disregarded this component of the 
Indonesian exporters’ domestic costs. The Anti -Dumping Commission instead substituted this 
cost with a third country benchmark price for pulp. The Anti -Dumping Commission then 
compar ed the export price with this constructed value in determining the relevant dumping 
margins.  
 
Indonesia's challenge concerns the Anti -Dumping Commission's decision not to use the 
domestic sales of A4 copy paper due to the finding of the "particular market situation", the 
methodology used in constructing the normal value and the decision to disregard the pulp 
component of the Indonesian exporters records and use a third country benchmark in 
constructing the normal values.  
 
The Panel’s report was circulated t o WTO members on 4 December 2019. The Panel upheld 
Australia’s finding of a particular market situation, but found that the aspects of the 
methodology in determining the normal value was inconsistent with the Anti -Dumping 
Agreement.  
 
 
 
 WT/TPR/M/396/Add.1  
 
- 118 - 
 
  Page 8, Para 7  
 
Question 6  
6. Please explain the working of single window Integrated Cargo System which is used to process 
trade transactions.  
 
RESPONSE: Australia maintains a customs single window, the Integrated Cargo System (ICS), 
which provides a secure digital interface  between industry and government. The ICS processes 
import and export documentation and is used by the Australian Border Force (ABF), Australia’s 
customs agency, and the Department of Agriculture, Water and the Environment, Australia’s 
biosecurity and quar antine agency. Customs duties and fees are collected through the ICS, as 
well as Goods and Services Tax and other indirect taxes on behalf of the Australian Taxation 
Office. Additional information can be found at: https://www.abf.gov.au/help -and-
support/ics/integrated -cargo -system -(ics)/resources -and-guides . 
 
Page 8, Para 8  
 
Question 7  
7. Kindly specify the reason behind keeping high bound rates for t extile and clothing.  
 
RESPONSE: Australia is prepared to reduce its bound tariff commitments as part of the 
outcome of multilateral or plurilateral tariff negotiations in the WTO. We have done this, for 
example, in relation to negotiations to establish and update the Information Technology 
Agreement. Australia applies duty free treatment on textiles and clothing to many trading 
partners through our network of FTAs and LDC concessions. The openness of this sector is 
illustrated by the very high market penetration of imports in most areas of the textile and 
clothing domestic market.  
 
Page 8, Para 10  
 
Question 8  
8. Could Australia explain the reason for actively using anti -dumping and countervailing measures?  
 
RESPONSE: Australia’s anti -dumping system  is demand driven. Investigations, and any 
resulting measures, are in response to applications from industry and reflect market conditions. 
Any anti -dumping measures imposed , result from an independent, rigorous and transparent 
investigation, offering due process to interested parties and the possibility of both merits and 
judicial review.  
 
Page 8, Para 9  
 
Question 9  
9. India requests Australia to provide the details of all the m ajor changes to the GST regime which 
took place in the period under review.  
 
RESPONSE: The Australian Taxation Office issues a range of guidance materials that detail the 
major changes made in the review period. Refer to the below links:  
 
2016: GST cross -border transactions between businesses:  
https://www.ato.gov.au/Business/International -tax-for-business/In -detail/Doing -business -in-
Australia/GST -cross-border -transactions -between -businesses   
2017: Reverse charge in the valuable metals industry:  
https://www.ato.gov.au/Business/GST/In -detail/Rules -for-specific -transactions/Reverse -
charge -in-the-valuable -metals -industry/  
2017: GST on imported services and digital products:  
https://www.ato.gov.au/Business/International -tax-for-business/GST -on-imported -services -
and-digital -products/  
2018: GST at settlement:  
https://www.ato.gov.au/Business/GST/In -detail/Your -industry/Property/GST -at-settlement/  
2018: GST on low value imported goods:  
https://www.ato.gov.au/Business/International -tax-for-business/GST -on-low-value -imported -
goods/ . WT/TPR/M/396/Add.1  
 
- 119 - 
 
  Page 9, Para 17  
 
Question 10  
10. Can Australia provide a list of all 56 recommendations regarding policy, law and institutions 
resulting out of Harper Review?  
 
RESPONSE: The Harper Review can be found at this link ( https://treasury.gov.au/publication/ 
p2015 -cpr-final-report ). The list of recommendations are found in Part 2 (starting from page 
29). 
 
Page 10, Para 22  
 
Question 11  
11. In this paragraph, the report mentions regarding the various government programmes 
implemented by Australia to provide support at different s tages of a firm’s lifecycle. Kindly 
elaborate on the government programmes initiated in this regard.  
 
RESPONSE: Advanced manufacturing has the potential to benefit all manufacturers. It’s a 
broad set of enabling technologies, processes and practices that industry sectors can use to 
improve their productivity and competitiveness. It includes a number of digital technologies 
collectively known as Industry 4.0.  
 
Some examples of advanced manufacturing technologies are:  
• additive manufacturing (3 D printing)  
• robotics and automation  
• advanced materials  
• artificial intelligence and machine learning  
• nanotechnologies  
• biotechnologies.  
More information is available - https://www.industry.gov.au/funding -and-incentives/supporting 
-advanced -manufacturing . 
 
Page 10, Para 25  
 
Question 12  
12. Could Australia elaborate on the eco nomic impact of the reforms undertaken to regulate 
transportations sector?  
 
RESPONSE: The Productivity Commission (PC) is currently reviewing the economic impacts of 
transport regulatory reforms agreed by the Council of Australian Government in 2008 -09. It s 
final report (Inquiry into National Transport Regulatory Reform) is scheduled for delivery to 
government in April 2020. A draft report is available at: https://www.pc. 
gov.au/inquiries/current/transport/draft . 
 
Page 10, Para 25  
 
Question 13  
13. In this paragraph, Australian government requested the Productivity Commission to assess the 
economic impact of the reforms on transport regulation. Kindly elucidate the impact analysis of 
the reforms undertaken by the Productivity Commission.  
 
RESPONSE: The Productivity Commission Inquiry into National Transport Regulatory Reform is 
scheduled for delivery to government in April 2020. A draft report is available at : 
<www.pc.gov.au/inquiries/current/transport#report >. 
 
Page 10 Paragraph 21  
 
Question 14  
14. Can we have the details on Government introduced gas security mechanism  that may involve 
export restrictions on LNG?  
 WT/TPR/M/396/Add.1  
 
- 120 - 
 
  RESPONSE: The Australian Domestic Gas Security Mechanism (ADGSM) was implemented in 
2017 to ensure sufficient domestic gas supply. It allows LNG exports to be restricted in cases 
where they have contributed to  a supply shortfall in the domestic gas market.  
 
The ADGSM is a targeted and temporary measure. It ensures domestic gas supply security. It 
can only be used in specific circumstances where there is no other way of securing domestic 
gas supply.  
 
Since its implementation in 2017, no export restrictions have been issued under the ADGSM as 
there has not been a domestic gas market shortfall required to trigger the mechanism.  
 
Page 10 Paragraph 24  
 
Question 15  
15. India requests Australia to provide list of the ir policies regarding the audiovisual sector which 
includes a regulatory regime that applies Australian content quotas, including sub -quotas for 
children's content, documentaries and drama.  
 
RESPONSE: Please see the list of regulation below:  
• Broadcasting Services Act 1992 (subsection 3(1); sections 121G and 122; Division 2A in 
Part 7)  
• Broadcasting Services (Australian Content) Standard 2016  
• Children's Television Standards 2009  
• Broadcasting Services (Australian Content in Advertising) Standard 2018  
 
One of  the objectives of the Broadcasting Services Act 1992 (BSA) is to promote the role of 
broadcasting services in developing and reflecting a sense of Australian identity, character and 
cultural diversity. This objective is promoted via programming quotas whi ch require minimum 
amounts of content produced under the creative control of Australians to be broadcast by commercial 
television broadcasting licensees and minimum expenditure requirements which apply to 
subscription television broadcasting licensees. In particular, the BSA:  
 
• Sets transmission quotas, requiring commercial television broadcasting licensees to transmit 
minimum amounts of Australian content on their primary channels and multi -channels 
(s121G).  
• Requires subscription television broadcasting licensees to ensure the maintenance of 
minimum levels of expenditure on new release Australian and New Zealand drama programs 
(Pt 7, div 2A).  
• Requires the Australian Communications and Media Authority (ACMA) to determine 
standards relating to Australian programming, Australian content in advertising and 
programs for children that are to be observed by commercial television broadcasting 
licensees (s 122). The current standards are: the Broadcasting Services (Australian Content) 
Standard 2016; th e Children's Television Standards 2009; and the Broadcasting Services 
(Australian Content in Advertising) Standard 2018. The ACMA is the independent 
Commonwealth statutory authority that regulates communications and media services in 
Australia.  
 
Page 10 Paragraph 26  
 
Question 16  
16. India requests Australia to list some of its measures/ steps taken in their efforts to attract more 
foreign visitors which include investment in new technologies to upgrade Australia's visa 
system.  
 
RESPONSE: Australia has expande d online visa and Australian citizenship application 
lodgement channels. Individuals and businesses can access services and tools that enable them 
to lodge, track, manage and pay for a wide range of visa and citizenship applications online. 
Australia has i mplemented a range of enhancements including automated reminders for clients, 
improved document upload, mobile device optimisation, verification of email addresses and 
improved processes for clients to identify the next actions required in the application process.  
 WT/TPR/M/396/Add.1  
 
- 121 - 
 
  To attract more foreign visitors, Australia has invested in the following new technologies and 
enhancements to visa systems:  
 
• Expansion of online lodgement capability to organisations and individuals globally to 
allow clients to lodge application s and use many departmental services 24/7  
• IMMIAccount which allows individuals and approved organisations to:  
- set up an account and register their details  
- streamline application submission  
- submit forms and support documents online  
- notify the Department of Home Affairs of a change in circumstances or 
register a new passport  
- monitor the progress of applications  
• Push notifications by email or SMS from the Department of Home Affairs that can be 
sent directly to clients  
• An online pricing estimator to obtain an  estimate of the full cost of lodging a specific 
visa application  
• Improved client messaging through simplified client correspondence  
• Visa Entitlement Verification Online (VEVO) which allows visa holders, employers, 
education providers and other organisations to check visa details and conditions  
• Flexibility in global application distribution to manage peaks and streamline processing 
and decisions.  
 
Page 11, Para 1.1  
 
Question 17  
17. What are the reasons behind the declining shares of manufacturing and construction in the year 
2018-19? 
 
RESPONSE: Manufacturing output has remained relatively constant over the last 5 years. Over 
this period, Au stralia has seen a steady increase in the output of other sectors, leading to an 
increase in the total GDP, which has resulted in a decrease in the manufacturing percentage of 
GDP. 
 
Page 11 &12, Para 3.23 & 3.27  
 
Background  
 
Australia played an active role during the review period on the plurilateral Environmental Goods 
Agreement (EGA), including as Chair of those negotiations. 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, including climate change. The EGA has not been finalized and the last 
negotiations took place in November -December 2016.  
 
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 A ustralia's tariffs is contributing to the 
efficiency, competitiveness and technological development of Australian industries that access and 
supply global value chains.  
 
Question 18  
18. Australia is requested to provide a response on how will elimination of tariffs contribute to the 
efficiency, competitiveness and technological development of Australian industries, if these 
regulated by the application of non -tariff measures (like technical regulations and standards).  
 
1. Do the Australian trade p olicy makers feel that reductions in tariff alone are sufficient for 
achieving efficiency competitiveness and technological development across the domestic firms?  
 
2. What role doe the Non -Tariff Measures and Public Policy Measures play?  
 
RESPONSE: Internatio nal trade plays a vital role in Australia’s economic success, with over 
one quarter of our economic growth over the past five years generated by trade and one in five WT/TPR/M/396/Add.1  
 
- 122 - 
 
  jobs relating to trade.  Reductions in tariffs has resulted in real prices falling for co nsumer 
products and business inputs, including items such as clothing, footwear, motor vehicles, 
household appliances and audio visual equipment.  Further information can be accessed at:  
https://dfat.gov.au/about -us/publications/trade -investment/trade -at-a-glance/trade -
investment -at-a-glance -2019/Pages/default.aspx . 
 
Relevant WTO agreements recognise members' rig ht to implement measures to achieve 
legitimate policy objectives, providing such measures are non -discriminatory and do not create 
unnecessary obstacles to trade. Australia seeks to achieve legitimate regulatory and public 
policy objectives in a way that i s consistent with an open and transparent business environment.  
 
Page 13, Para 1.6  
 
Question 19  
19. Kindly explain the repercussions Australia will be facing because of the economic restructuring 
of China?  
 
RESPONSE: The Australian Government is committed to p roviding opportunities to Australian 
exporters in a range of international markets. The Australian Government is also committed to 
supporting the global rule -based trading system and to increasing the proportion of Australia’s 
international trade that is c overed by bilateral and regional free trade agreements. These 
agreements provide the necessary framework for Australian exporters to make independent 
and commercial decisions as to the ultimate destination of their exports.  
 
Page 16, Para 1.16  
 
Question 20  
20. What criteria do you consider the government of Australia follow to disburse R&D Tax Incentive 
at the firm -level?  
 
RESPONSE: To be eligible to register R&D activities and claim R&D tax offsets in any given 
year, an entity must generally be an incorporated entity (company), conduct at least one 
activity that meets the definition of a core R&D activity, and have eligible R&D expen diture 
greater than AU$20,000.  
 
Core R&D activities are experimental activities are those whose outcome cannot be known or 
determined in advance on the basis of current knowledge, information or experience, but can 
only be determined by applying a systema tic progression of work that: (1) is based on principles 
of established science; and (2) proceeds from hypothesis to experiment, observation and 
evaluation, and leads to logical conclusions. Core R&D activities must be conducted for the 
purpose of generati ng new knowledge (including about creating new knowledge or improved 
materials, products, devices, processes or services).  
 
A supporting activity is one that is directly related to core R&D activities or, for certain activities, 
has been undertaken for the  dominant purpose of supporting core R&D activities.  
 
Page 17, Para 1.19  
 
Question 21  
21. What are the reasons behind the declining export receipts due to which current account deficit 
has widened?  
 
RESPONSE: Australia’s export receipts  actually  increased from 2015 -16 to 2018 -19, driven by 
increased resource exports and increased Education exports. The Current Account Deficit ( CAD) 
narrowed from A U$51.3 billion in 2017 -18 to A U$12 billion in 2018 -19, helped by these 
increases in export receipts.  
 
Page 20, Para 1.27  
 
Question 22  
22. Kindly state the top importing countries from which Australia imports machinery and electrical 
equipment, and vehicles and transport.  WT/TPR/M/396/Add.1  
 
- 123 - 
 
  RESPONSE: Please see the top importing countries for the requested sectors below:  
• Machine ry: China, United States of America, Germany Japan and Italy  
• Electrical equipment: China, United States of America, Germany, Japan, Italy  
• Vehicles: Japan, Thailand, Germany, United States of America, Republic of Korea  
• Other transport equipment: United States of America, China, Switzerland, Italy, 
France . 
 
Page 21, Para 1.28  
 
Question 23  
23. As specified in the report that China continues to be the largest destination for Australian 
exports. Does Australia is able to take the benefit of the free trade  agreement with China?  
 
RESPONSE: The China -Australia Free Trade Agreement (ChAFTA) benefits Australia through 
liberalising trade and investment flows between our countries, enhancing opportunities for our 
businesses and consumers.  The Agreement builds on  our complementary economic 
relationship. Australia's exports to China have grown on average by ten per cent a year over 
the last five years.  
 
Page 21, Para 1.28  
 
Question 24  
24. Explain the reasons behind the increasing share of exports to Asia over 84% in 20 18? 
 
RESPONSE: Noting this question relates to merchandise exports, Asia’s share of exports has 
been, for the most part, greater than 80 per cent for the last few years. Growth to Asia has 
nevertheless been strong. For example, merchandise exports to China  have been growing at an 
average 8.7 per cent in the five  years to 2018. Similarly, growth in merchandise exports to the 
Republic of Korea has averaged 10.7 per cent and Vietnam 7.2 per cent. These growth rates 
compare to an average overall growth rate of 3.8 per cent over the five years to 2018.  
 
Page 26, Para 2.9  
 
Question 25  
25. In this paragraph, the report mentions that Minister for Trade, Tourism and Investment and the 
Department of Foreign Affairs and Trade (DFAT) maintain responsibility for bilateral, regional, 
and multilateral trade policy, as well as administrative responsibility for all treaties. In this 
regard, kindly elaborate on the demarcation of the responsibility of the states and territories; 
Minister for Trade, Tourism and Investment; and the  Department of Foreign Affairs and Trade 
(DFAT) on the subject of trade.  
 
RESPONSE: Commonwealth and State powers in relation to trade  
Australia’s Constitution confers powers on the Commonwealth Parliament to make laws in 
relation to particular subjects. Those subjects include ‘trade and commerce with other countries’ 
(s 51(i) of the Constitution). The Commonwealth’s power to make laws in relation to trade and 
commerce with other countries is not exclusive of State powers; it is concurrent with p owers of 
the States over the same matters. However, if there is any inconsistency between a valid 
exercise of power by the Commonwealth and the valid exercise of power by a State, the 
Commonwealth exercise of power prevails under s 109 of the Constitution to the extent of the 
inconsistency.  
 
Ministerial and departmental responsibility for trade at the Commonwealth level  
In an Order known as the Administrative Arrangements Order, the Governor -General 
established that the Department of Foreign Affairs and Tra de is responsible, among others, for 
the following matters:  
External Affairs, including - 
- relations and communications with overseas governments and United Nations agencies  
- treaties, including trade agreements  
- bilateral, regional and multilateral tra de policy  
- international trade and commodity negotiations  
 WT/TPR/M/396/Add.1  
 
- 124 - 
 
  The Governor -General has appointed the Minister for Trade, Tourism and Investment to 
administer the Department of Foreign Affairs and Trade, and this gives the Minister the authority 
to undertake the matters listed above and to administer relevant legislation.  
 
Page 32, Para 2.33  
 
Question 26  
26. In this paragraph, the report mentions that the Government is also supporting growth, higher 
wages and jobs through the Ten Year Enterprise Tax Plan, involvin g gradual reductions in the 
corporate tax rate to a more competitive level internationally. Does the gradual reductions in 
the corporate tax will affect the fiscal health of the economy?  
 
RESPONSE: The Australian Government's fiscal outlook is reported ann ually in the Federal 
Budget and a mid -year update. These updates include the impact of all government policies, 
including the scheduled changes to corporate tax rates. The latest mid -year update indicates 
that the budget is expected to be in surplus across  all years of the forward estimates period.  
 
Page 32, Para 2.36  
 
Questions 27 -29 
27. How foreign investment framework take up the scrutiny of agricultural investments  
 
RESPONSE: The Foreign Investment Review Board website ( https://www.firb.gov.au ) includes 
guidance notes that detail how the foreign investment review framework applies to agricultural 
land investments (Guidance Note 17) and agribusiness investments (Guidance Note 18).  
 
28. What are the higher screening thresholds for developed commercial property?  
 
RESPONSE: For privately -owned investors from free trade agreement partner countries that 
have the higher threshold (United States of America, New Zealand, Chile, Japan, the Republic 
of Korea, China, Singapore, Canada, Mexico, Hong Kong, Peru and Vietnam),  the monetary 
threshold for proposed investments in developed commercial land is AU$1,192 million. For 
private investors from other countries, the threshold is AU$275 million. For fo reign government 
investors from any country, the threshold is AU$0. For further information, see Guidance Note 
14 on the Foreign Investment Review Board website ( https://www.firb.gov.au ). 
 
29. Kindly elaborate on the new penalties for non -complaint investors.  
 
RESPONSE: Since the 2015 legislative reforms to the foreign investment review framework, 
penalties for non -compliance have increased. Criminal penalties increased (currently 750 
penalty units, which is equal to A U$157,500, three years imprisonment, or both for individuals). 
For corporations, this is multiplied by five. Criminal penalties are supplemented by new civil 
penalties and infringement notices for breaches of the residential real estate rules. For less 
serious matters, an infringement notice might be granted to impose a fine that is a lesser 
amount than the full penalty that would otherwise apply.  
 
Page 40, Para 3.10  
 
Question 30  
30. Kindly explain the hierarchy of valuation methods for imported goods custom pu rposes.  
 
RESPONSE: Australia’s Customs Act 1901  reflects the WTO’s Customs Valuation Agreement and 
provides for sequential methods for arriving at the customs value. Those methods and the order 
are as follows:  
1. Transaction Value  
2. Identical Goods Value  
3. Similar Goods Value  
4. Deductive (Contemporary Sales) Value  
5. Deductive (Later Sales) Value  
6. Deductive (Derived Goods Sale) Value  
7. Computer Value  
8. Fall back Value  WT/TPR/M/396/Add.1  
 
- 125 - 
 
  If the first method, Transaction Value, which is used in the vast majority of importations, fails 
to produce a value, the importer must proceed to the second method and so on until the customs 
value is determined.  
 
Page 40, Para 3.11  
 
Question 31  
31. Australia is requested to provide the details of transaction value method used in nearly all cases 
of customs valuation?  
 
RESPONSE: The Transaction Value is defined in section 161(1) of the Customs Act 1901 as 
being the adjusted price of the goods in their import sales transaction plus any price related 
costs that have not been taken into account in determining the price of the goods.  
 
There are five steps in determining the Transaction Value.  
• The first step is to identify the price in the import sales transaction.  
• The second step is to establish the price paid taking into account any rebates or 
discounts that have been received when the price was being determined.  
• The third step is to adjust the price for the following costs: deductible financing costs; 
post importation expenses (such as erection, texting assembly and other technical 
assistance);  Australian inland freight and Australian inland insurance; administrative 
costs (such as quarantine, clearance and brokerage fees); and overseas freight and 
overseas insurance charges.  
• The fourth step is to further adjust the price to add costs that have  not already been 
taken into account being: any production assist costs; packing, fumigation and similar 
costs; foreign inland freight and insurance charges to get the goods to their place of 
export; commissions and brokerage; royalties and licence fees; a nd payments of any 
proceeds of subsequent resale.  
• The fifth and final step is to convert the price or any other relevant amounts into 
Australian dollars.  
 
Page 41 -42, Para 3.17  
 
Background  
The very simple tariff structure with low rates of duty leads to a simple average tariff rate of 2.5% 
since 1 July 2019, with a somewhat lower average for agricultural products (1.4%) than the 2.7% 
simple average rate for non -agricultural goods (Table 3.2). The applied average tariff declined by 
0.5 percentage points from  2014 to 2019, reflecting Australia's implementation of new zero -duty 
commitments under the ITA expansion on approximately 100 tariff lines, and unilateral reductions  
 
Question 32  
32. Australia is requested to provide clarification on the presence of non -ad va lorem (NAV) duties 
which are bound at the WTO.  
1. Has Australia undertaken the excise of ad -valorem equivalents (AVEs) for the NAV tariff 
lines?  
2. If yes, Australia is requested to provide the detailed methodology used?  
 
RESPONSE: Australia has not recent ly undertaken an exercise of converting non -ad valorem 
duties into ad -valorem equivalents.   
 
Page 41 -42, Para 3.22  
 
Background  
 
The South Pacific Forum island countries, LDCs, and preferential partners covered by Australia's 
RTAs/FTAs are exempted from the TRQ on cheese and curd. Imports from developing countries of 
cheeses covered by the TRQ may be accorded a 5% rebate on the MFN tariff rate of 
AUD 1,220/tonne.  
 
Question 33  
33. Can Australia provide time series information on utilization of the exemption provided to South 
Pacific Forum island and the LDCs (since 2008)?  WT/TPR/M/396/Add.1  
 
- 126 - 
 
  RESPONSE: In 1966, Australia became the first country to introduce tariff preferences for 
developing countries. The Australian System of Tariff Preferences (ASTP) provides non -
reciprocal tariff preferences for the worlds’ least developed and developing countries. The ASTP 
is supporting the integration of LDCs and developing countries into the global trading system 
as a means to promote their economic growth.  
 
LDC and Forum Island C ountry (FIC) exports to Australia increased significantly from AU$224.4 
million in 2009 to AU$1.2 billion in 2019, averaging 17.5 per cent growth every year. In 
particular, Bangladesh, Cambodia, Fiji, Myanmar and Madagascar have benefited from the 
ASTP. Th e highest preference user, Bangladesh, accounted for over 96 per cent of the total LDC 
and FIC trade under preference for the past five years, with preference utilisation increasing 
from just under 60 per cent in 2008 to 88 per cent in 2019.  
 
Page 44, Para  3.22 
 
Question 34  
34. Could Australia explain the procedure by which the Customs, upon request, assign a quota?  
 
RESPONSE: Australia's only quota arrangements cover cheese and curd.  
 
A quota holders' allocation is based upon their actual use of in -quota chees e and curd, which 
were entered for home consumption during the qualifying period. The Australian Border Force 
(ABF) contacts qualifying importers during the allocation process and uses departmental records 
(ICS), so a request is not required.  
 
The list of current allottees is set out in ACN 2019/30, which also advises the final factor of 
05.059. An initial allocation equals the importer’s previous import performance (PIP) multiplied 
by the factor (allocation= PIP*factor).  
https://www.abf.gov.au/help -and-support -subsite/CustomsNotices/2019 -30.pdf . 
 
Page 47, Para 3.31  
 
Background  
Furthermore, the warehouse goods declaration fee and other charges related to brokerage, dep ot 
and warehouse licenses were changed further to the Customs Amendment (Fees and Charges) Act, 
2015, and the Customs Depot Licensing Charges Amendment Act, 2015 modified the fees for broker, 
depot and warehouse licenses. Finally, the Customs and Other Leg islation Amendment Act,2017 
stipulates that goods imported under a Status of Forces Agreement are exempt from the import 
processing charge.  
 
Question 35  
35. Can Australia provide an explanation on the application of Import processing charges as shown 
in Table 3.5 Import Licensing charges? (1) What is public policy concern in the application of 
such charges?  
 
RESPONSE: Import processing charges (IPCs) apply when an importer is required to make an 
import declaration (when the value of imported goods is more than AU$1,000). Goods imported 
under Status of Forces Agreements (SOFA) are exempt from the IPC. Further information on 
IPCs is available at:  
https://www.abf.gov.au/importing -exporting -and-manufacturing/importing/cost -of-importing -
goods/charges . 
 
Current IPC rates have been in effect since 1 January 2016, following the Government’s decision 
to restructure the IPCs to simplify charging arrangements and better reflect similar risk and 
volume profiles and work effort required in import processing. The IPCs are cost recovery based.  
 
Page 50, Para 3.25  
 
Background  
 
Australia's unilateral preference schemes for LDCs and the South Pacific Foru m island countries, 
together with the extensive zero -duty regime applied on an MFN basis, imply that these trading WT/TPR/M/396/Add.1  
 
- 127 - 
 
  partners enjoy duty -free and quota -free access to the Australian market for all their exports. The 
bilateral FTAs that Australia concluded wi th Chile (ACIFTA), China (ChAFTA), Malaysia (MAFTA), New 
Zealand (ANZCERTA), Singapore (SAFTA), Thailand (TAFTA), and the United States (AUSFTA) also 
provide the same level of duty -free quota -free access for all goods into Australia. Although the tariff 
preferences accorded to other members of the Association of Southeast Asian Nations (ASEAN) or 
within the CPTPP do not extend the same duty -free treatment across the board for all products, the 
number of items on which tariffs remain for these countries are very limited, and the average tariffs 
are negligible (Table 3.4).  
 
Question 36  
36. Has Australia provided tariff concession under the DFQF as agreed by the all WTO members?  
 
If yes, can Australia explain why only 50% (3,277 tariff lines) of the total of 6,474 tariff lines (2019) 
is listed as the lines which received tariff concessions. What is the exact status?  
Australia is requested to Clarify the following:  
1. Has Australia provided DFQF Status to the LDCs?  
2. Does this mean that only 3277 tariff lines are e xported by the LDCs?  
3. If yes, what is the coverage of tariff lines which is zero?  
 
RESPONSE: Australia has provided Least Developed Countries (LDCs) full duty -free and 
quota -free access into Australia since 2003. LDC exports to Australia increased markedly from 
AU$135.5 million in 2009 to AU$1.1 billion in 2019, averaging 25.6 per cent growth every 
year. 
 
The 2019 MFN tariff consists of 6,474 tariff lines, of which 3,197 bear a duty -free rate (N.B. 
there is no need to provide DFQF treatmen t for duty -free tariff lines).  The remaining 3,277 
tariff lines do have MFN duty rates and are covered by Australia’s DFQF regime. As a result, 
Australia’s DFQF treatment for LDCs covers 100 per cent of tariff lines.  
 
Page 57, Para 3.53  
 
Question 37  
37. Could  Australia provide an explanation of its relatively high use of Anti -Dumping measures by 
international comparison?  
 
RESPONSE: Australia’s anti -dumping system is demand driven. Investigations, and any 
resulting measures, are in response to applications from  industry. Increased demand for trade 
remedy relief in the steel industry is consistent with global overcapacity. Any anti -dumping 
measures imposed result from an independent, rigorous and transparent investigation, offering 
due process to interested parti es and the possibility of both merits and judicial review.  
 
Page 69, Para 3.93  
 
Question 38  
38. Could Australia provide details of its safety audits procedure and whether these, along with the 
removal of non -complying products, have been notified to the relevant WTO Committee?  
 
RESPONSE: The Australian Competition and Consumer Commission (ACCC) has a dedicated 
team of surveillance officers who conduct safety audits, primarily in relation to products that 
are subject to national mandatory safety standards and bans. The responsible Commonwealth 
Minister under the Australian Consumer Law (ACL) makes these regulations.  
 
Section 106 of the ACL prohibits suppliers from supplying consumer goods that do not comply 
with mandatory safety standards. Section 118 of th e ACL prohibits suppliers from supplying 
consumer goods covered by bans.  
 
Safety audits typically involve assessment of products sold through physical and online stores. 
For products covered by mandatory safety standards, the assessment will be whether the 
product complies with the specific requirements of the relevant standard, which can include 
design, performance and labelling requirements. For products potentially covered by a ban, 
surveillance officers will assess whether the product has the  characteristics outlined in the 
‘particulars of the goods’ in the regulatory instrument.  WT/TPR/M/396/Add.1  
 
- 128 - 
 
  The ACCC may purchase products as part of a safety audit for testing by a National Association 
of Testing Authorities (NATA) accredited testing agency/laboratory. The  ACCC may also request 
information from suppliers, including test reports and product information, to inform the overall 
assessment.  
 
In the majority of matters, suppliers initiate voluntary recalls when informed by the ACCC that 
their products do not comp ly with mandatory safety standards or are banned. Section 128 of 
the ACL outlines the notification requirements for a voluntary recall of consumer goods. 
Suppliers must notify the responsible Commonwealth Minister within two days of taking 
voluntarily acti on to recall consumer goods.  
 
The ACCC operates in accordance with relevant Australian law when conducting safety audits 
and engaging with suppliers of non -compliant products.  
 
In addition to notification through the WTO, all member countries are invited t o access high -
level information about the results of ACCC audits by viewing the ‘Surveillance and audits’ 
section of the Product Safety Australia website. The ACCC also publishes financial year 
aggregate results in the ACCC and AER Annual Report.  
 
Page 69,  Para 3.95  
 
Question 39  
39. Could Australia explain why more than half of its standards are not identical or modified 
adoptions of International Standards? Furthermore, will Australia make any effort to align these 
standards with International standards?  
 
RESP ONSE: It is Australian Government policy to use/accept trusted International Standards 
first, wherever appropriate (more information can be found here, under ‘Using international 
standards in policy and regulation’: https://www.industry.gov.au/regulations -and-
standards/australias -standards -and-conformance -infrastructure ). It is therefore a requirement 
before any standards project is unde rtaken that relevant International standards be first 
considered for adoption. 96 per cent of the identical or modified adoptions of International 
Standards in the Australian Standards catalogue stem from original ISO or IEC Standards.  
 
Only where an appli cable International Standard cannot be found or would not be suitable can 
alternatives be considered, including regional and national standards. Areas that often lack 
suitable International Standards include building and construction. Australia’s National 
Standards Body, Standards Australia, also recognises that in many instances stakeholders 
prefer to use an international standard directly, without undertaking the process of adoption.  
 
Further, Standards Australia maintains a standards review process to e nsure that standards are 
relevant, up to date and fit for purpose. Standards Australia is moving from a 10 yearly review 
process to a five yearly review process. When each standard is reviewed, part of this process is 
to consider any International Standard s that are relevant for adoption.  
 
Page 70, Para 3.102  
 
Question 40  
40. Could Australia explain how the Biosecurity Act, 2015, which replaces the Quarantine Act, 1908, 
is flexible by design to respond to changes in technology, biosecurity challenges, and the n eed 
for more adaptability to increasing passenger traffic and trade?  
 
RESPONSE: The Biosecurity Act 2015 (Biosecurity Act) establishes a modern and effective 
regulatory framework for Australia's biosecurity system that enables flexible and responsive 
biosecurity management. The Biosecurity Act replaced the Quarantine Act 1908 (Quarantine 
Act) in response to Australia's changing biosecurity risks since the Quarantine Act's creation in 
1908. Such changes include shifting global demands, growin g passenger and trade volumes, 
increasing imports from a growing number of countries and new air and sea craft technology.  
 
The Biosecurity Act does this through the division of its powers into chapters by subject matter. 
The Act can be divided into three types of chapters: operational chapters that support day to 
day biosecurity business; chapters that support specialised bios ecurity management; and WT/TPR/M/396/Add.1  
 
- 129 - 
 
  general biosecurity system administrative chapters that support necessary functions and 
powers. This arrangement provides greater clarity and ease of use than the previous structure 
in the Quarantine Act, and also removes duplicate powers to reduce administrative complexity. 
Future powers can be inserted into the relevant parts of the legislation that clearly define how 
the powers can be used. The flexibility of the application of powers in the Biosecurity Act also 
allow biosecurity risks to be specifically targeted based on circumstances of each situation. This 
provides for a more efficient and effective biosecurity system.  
 
Page 71, Para 3.106  
 
Question 41  
41. Could Australia provide information on the number of outstanding import reque sts for which a 
risk assessment is yet to commence?  
 
RESPONSE: Australia has a large number of outstanding import market access requests. This 
is due to the fact that it receives a significant number of requests for new import market access 
for a wide vari ety of products, including plant and plant products every year. These requests 
are addressed in a manner consistent with international obligations, including those of the WTO 
Agreement on the Application of Sanitary and Phytosanitary Measures and the Inter national 
Plant Protection Convention (IPPC). Australia maintains a range of bilateral engagement forums 
with its trading partners and routinely advises of the status and progress of individual import 
requests through these established engagement mechanisms . These requests are also 
progressed subject to a range of factors including Australia's existing commitments to conduct 
risk analyses and the availability of future technical resources. The assessment process involves 
rigorous scientific risk analysis and  stakeholder engagement.  
 
Further information about Australia's biosecurity import risk analysis guidelines is available at 
https://www.agriculture.gov.au/biosecurity/risk -analysis/guidelines . 
 
Page 72, Para 3.107  
 
Question 42  
42. Could Australia provide the list of completed BIRAs that have enabled imports to Australia for 
foreign -origin/Indian -origin agricultural products? Could Australia also provide details of BIRAs 
and oth er risk assessment that are currently in the pipeline.  
 
RESPONSE: No BIRAs (regulated risk analysis) have commenced or been completed for India 
or any other country since the commencement of the Biosecurity Act 2015 . This is because the 
circumstances in wh ich a BIRA can commence have not yet occurred. No relevant requests have 
been made to the Director of Biosecurity nor has the Director concluded that a BIRA is 
necessary. Australia has however completed numerous non -regulated risk analysis for a range 
of trading partners, including Indian table grapes completed in 2018. Australia maintains a 
range of bilateral engagement forums with its trading partners and routinely advises of the 
status and progress of individual import requests through these established engagement 
mechanisms . Risk analyses for animals and animal products are available on the department's 
website: https://www.agriculture.gov.au/biosecurity/risk -analysis/animal . 
 
A list of Australia’s current plant risk analyses and finalised plant risk assessments is available 
at: https://www.agriculture.gov.au/biosecurity/risk -analysis/plant . 
 
Information on weed risk assessments can also be found at : 
https://www.agriculture.gov.au/biosecurity/risk -analysis/weeds . 
 
Page 72, Para 3.107  
 
Question 43  
43. Could Australia inform what the criteria for Biosecurity Import R isk Analysis (BIRA) are and how 
it is set?  
 
RESPONSE: A BIRA is undertaken when:  
• relevant risk management measures have not been established; or  WT/TPR/M/396/Add.1  
 
- 130 - 
 
  • relevant risk management measures for a similar good and disease/pest combination 
do exist, but the likelihood and/or consequences of entry, establishment or spread of 
diseases or pests could differ significantly from those previously assessed.  
 
The content of a regulated BIRA is set out under section 30 of the Biosecurity Regulation 2016 
"Content of BIR A report". The Director of Biosecurity may also determine other material that 
may be included. Australia’s procedures for conducting import risk analyses is set out in the 
Biosecurity Import Risk Analysis Guidelines, which can be found at: 
https://www.agriculture.gov.au/biosecurity/risk -analysis/conducting . 
 
Page 72, Para 3.110  
 
Question 44  
44. Could Australia elaborate on how Maximum Residue Limit (MRL) is set by the FSANZ?  
 
RESPONSE: Australia establishes maximum residue limits (MRLs) under two standards:  
 
1. The Australian Pesticides and Veterinary Medicines Authority (APVMA) sets MRLs in the 
Agricultural and Veterinary Chemicals Code (MRL Standard) Instrument 2019 
(https://www.legislation.gov.au/Series/F2019L01105 ) for the domestic use of agricultural and 
veterinary (agvet) chemicals in food and animal feed commodities based on use patterns 
necessary to contr ol pests and/or diseases in Australia. This MRL Standard is used by Australian 
State and territories to manage the use of chemicals and to enforce good agricultural practice 
(GAP) within Australia;  
 
2. The APVMA and Food Standards Australia New Zealand (FS ANZ) have shared responsibility 
for setting MRLs listed in Schedule 20 of the Australia New Zealand Food Standards Code (the 
Code; https://www.legislation.gov.au/Series/F2015L00468 ). Schedul e 20 of the Code lists 
MRLs for Australian uses under GAP, as well as MRLs based either on the Codex or exporting 
country’s MRLs through an MRL harmonisation process. The MRLs in Schedule 20 apply to food 
at point of sale within Australia and at entry into  Australia for imported food.  
 
The APVMA establishes and amends MRLs in schedule 20 based on its assessment of applications 
for the domestic use of agvet chemicals. FSANZ also amends MRLs through an ‘M’ proposal or 
an application. The FSANZ annual MRL harm onisation proposal process is the most common 
route used by domestic and international stakeholders to seek consideration of import MRLs in 
schedule 20 to harmonise with Codex or third country MRLs. The FSANZ MRL harmonisation 
proposal page provides furthe r information on this process and the requirements which need to 
be met as part of FSANZ’s assessment of import MRL requests 
(https://www.foodstandards.gov.au/code/chan ges/limits/Pages/default.aspx ).  
 
FSANZ also has a system of establishing MRLs for all other foods (except animal food 
commodities) to avoid the application of default ‘zero tolerance’ to food commodities. This 
system is intended to cover inadvertent prese nce of trace residues e.g. through spray drift. This 
system was established following gazettal of Proposal P1027 in January 2017.  
 
All MRLs established in the MRL standard and schedule 20 of the Code are subject to a dietary 
risk assessment with Australia n food consumption data, using methodologies consistent with 
those recommended by the Food and Agriculture Organization of the United Nations, and the 
World Health Organization.  
 
Page 73, Para 3.114  
 
Question 45  
45. Could Australia provide the details of the Specific Trade Concerns (STCs) which were raised in 
the WTO Committee on Sanitary and Phytosanitary Measures, regarding measures maintained 
by Australia during the period under review and their current status?  
 
RESPONSE: A search of the Sanitary and Ph ytosanitary Information Management System 
shows that no Specific Trade Concerns (STCs), in the SPS Committee, were raised against 
Australia in the years 2016 to 2020.  
 WT/TPR/M/396/Add.1  
 
- 131 - 
 
  Page 73, Para 3.112  
 
Question 46  
46. Could Australia provide an assurance that any revisions  to its country of origin labelling laws 
will be WTO -consistent and that trade partners will be consulted and have the opportunity to 
provide comments on draft legislation prior to it being finalized?  
 
RESPONSE: Regulations developed and implemented will be consistent with Australia’s 
international obligations, including Australia's notification obligations under the WTO Agreement 
on Technical Barriers to Trade.  
 
Page 75, Para 3.126  
 
Question 47  
47. How does this authorization affect internati onal commitments on market access? Can the 
authorization turn the company into monopoly provider?  
 
RESPONSE: The competition chapters of free trade agreements to which Australia is a party 
provide that "A Party may exempt specific businesses or sectors fro m the application of 
competition measures, provided that such exemptions are transparent and are undertaken on 
the grounds of public policy or public interest."  
 
Some Commonwealth, state and territory Acts permit conduct that would normally contravene 
the Competition and Consumer Act . Section 51(1) of the Act provides that such conduct may 
be permitted if it is specifically authorised under those other Acts.  
 
The legislative exemptions can authorise the creation of a monopoly provider, however, to be 
a vali d exemption the benefits of the legislation to the community must outweigh the costs. 
Additionally, for the law to be valid the objectives achieved by restricting competition must 
only be able to be achieved by restricting competition. These legislative ex emptions only apply 
in relation to the prohibitions on restrictive trade practices. They do not apply to merger 
authorisations or the consumer protection provisions of the Australian Consumer Law.  
 
The ACCC website contains a public list of legislation tha t exempts specific conduct from the 
competition provisions of the Competition and Consumer Act. The list includes legislation 
which the ACCC has been notified of or has otherwise become aware of. Additionally, the ACCC 
provides an update of the exemptions in each financial year’s Annual Report.  
 
Page 80, Para 3.144  
 
Question 48  
48. Has this target of 10% increased over the years? Are there plans to increase such a target of 
minimum SME participation purchases from domestic SMEs?  
 
RESPONSE: The 10 per cent targe t is long standing and can be found in the 2002 
Commonwealth Procurement Guidelines & Best Practice Guidance. There is no intention to 
increase the SME targets outlined in the CPRs.  
 
Page 81, Para 3.148  
 
Question 49  
49. “Entities must only conduct a limited tender at, or above, the relevant procurement threshold 
in limited circumstances, and certain reporting requirements apply”. Could Australia elaborate 
on what the limited circumstances and certain reporting requirements refer to?  
 
RESPONSE: For pro curements valued at, or above, the relevant procurement thresholds, 
procuring entities may undertake limited tenders in accordance with the Conditions for Limited 
Tender outlined at paragraph 10.3 of the Commonwealth Procurement Rules (CPRs), or the 
Exempt ions listed in Appendix A of the CPRs.  
 
In these circumstances, the contract notice published on AusTender specifies which limited 
tender condition or exemption the procuring entity has used.  WT/TPR/M/396/Add.1  
 
- 132 - 
 
  Page 81, Para 3.149  
 
Question 50  
50. Question 50:  
a) Could Australia explain whether the AIP Plans require approval by relevant government 
authorities? On what grounds can approval of the Plan be denied? What are the 
consequences for the successful bidder of a procurement contract if its proposed AIP Plan is 
denie d approval?  
b) If the AIP policy does not mandate the use of Australia suppliers, does the policy nonetheless 
send a signal to potential bidders that the use of Australia suppliers of goods and services is 
to be preferred over foreign suppliers?  
c) Could Austral ia indicate whether AIP Plans are required as conditions of any loans or grants 
or other forms of financial assistance provided by the Australia Commonwealth government 
to private enterprises?  
 
RESPONSE: Where an AIP plan is required, it needs to be submit ted to the Department of 
Industry, Science, Energy and Resources for approval.  
 
An AIP plan must meet six criteria as outlined in the User Guide for developing an AIP Plan. As 
part of the assessment process, the Department will provide feedback where an AI P plan requires 
further development or clarification.  
 
The successful tenderer is required to submit their approved AIP plan before signing the contract 
or head agreement.  
 
An AIP plan is only required from the successful tenderer and is therefore not considered during 
the tender evaluation process.  
 
AIP plan requirements are applied to:  
• major public and private projects with capital expenditure of AU$500 million or more  
• Australian Government procurements of AU$20 million or more  
• Australian Government grants of AU$20 million or more  
• Australian Government payments of AU$20 million or more to state and territory 
governments for large infrastructure projects  
• investments from the  Clean Energy Finance Corporation and Northern Australia 
Infrastructure Facility of AU$20 million or more.  
Further information can be found on this website - https://www.industry.gov.au/regulations -
and-standards/australian -industry -participation . 
 
Page 87, Para 3.172  
 
Question 51  
51. How, if at all, will the single trans -Tasman patent attorney regime affect patent and trade -mark 
agents in terms of privilege?  
 
RESPONSE: The Single Trans -Tasman Patent Attorney Regime does not affect client -attorney 
privilege for patent and trade mark attorneys in any way. Subsections 200(2) and (2A) of the 
Patents Act 1990 provide that communications and records or documents made for the 
dominant purpose of a registered patent attorney providing intellectual property advice are 
privileged in the same way, and to the same extent, as a legal practitioner. Subsection 200 
(2B) extends this to an individual authorised to do patents work under a law of another country 
or region, to the extent to which the individual is authorised to provide intellectual property 
advice of the kind provided. Therefore, the privilege provisions already applied to a patent 
attorney registered in New Zealand and other countries.  
 
Page 84, Para 3.159  
 
Background  
In 2017/18, Australia's IP stocks were valued at AUD 246.9 billion, with estimated expenditure on 
IP products in Australia of AUD 37.4 billion. Its reported trade in IP, measured by royalties and 
payments for IP not recorded elsewhere, was worth AUD 1.4 bi llion (exports) and AUD 6.3 billion WT/TPR/M/396/Add.1  
 
- 133 - 
 
  (imports). Australia is a net exporter of IP to non -OECD countries. According to the authorities, IP 
imports and exports support the development of Australian industries such as the mining, services, 
innovation and techn ology, and creative industries.  
 
Question 52  
52. The secretariat report mentions that the Australia’s IP products for the year 2017 -18 were 
valued at AUD 246.9 billion and Australia’s trade in IP, measured by royalties and payment for 
IP were worth AUD 1.4 bil lion (exports) and AUD 6.3 billion (import). The document also states 
that Australia is a net exporter of IP to non -OECD countries.  
 
What methodology was adopted by Australia for the valuation of IP assets? Kindly provide 
details.  
 
RESPONSE: The methodolo gy adopted for valuation of IP assets in Australia’s National 
Accounts is the Perpetual Inventory Model (PIM). The PIM uses the net of Gross Fixed Capital 
Formation (GFCF) and Consumption of Fixed Capital to calculate the published net capital stock, 
including IP assets. GFCF is broadly calculated by valuing the costs of the key components of 
IP activities.  
 
Page 84, Para 3.159  
 
Background:  
In 2017/18, Australia's IP stocks were valued at AUD 246.9 billion, with estimated expenditure on 
IP products in Austr alia of AUD 37.4 billion. Its reported trade in IP, measured by royalties and 
payments for IP not recorded elsewhere, was worth AUD 1.4 billion (exports) and AUD 6.3 billion 
(imports). Australia is a net exporter of IP to non - OECD countries. According to the authorities, IP 
imports and exports support the development of Australian industries such as the mining, services, 
innovation and technology, and creative industries.  
 
Question 53  
53. Kindly provide the composition of the IP assets that were valued at AUD 246.9 billion.  Also, 
what was the composition by IPRs of royalties and payments received by Australia and those 
that were paid out by Australia?  
 
RESPONSE: The composition of IP assets that were valued at AU$246.9 billion (2017 -18) were:  
• Research and Deve lopment  101.0  
• Mineral and Petroleum exploration  95.0 
• Computer software  47.6 
• Artistic originals  3.1 
 
The above total to AU$246.7 billion is a subsequently revised figure from the initially cited 
AU$246.9  billion.  
 
Composition of IP receipts and payments is set out below (2017 -18). 
 
Composition of IP Assets in the ABS National Accounts (cat. no. 5204.0)  AU$m   
Net capital stock: Intellectual property products: Research & development:  101,035  
 
Net capital stock: Intellectual property products: Mineral & petroleum exploration:  95,040   
Net capital stock: Intellectual property products: Computer software:  47,582   
Net capital stock: Intellectual property products: Artistic originals:  3,066   
Total  246,723   
2017/18   
Credits: Charges for the use of intellectual property: Total: YEARLY   
 
Credits: Charges for the use of intellectual property: Total: YEARLY  1,167   
Credits: Charges for the use of intellectual property nie: Licences to reproduce 
and/or distribute computer services: Total: YEARLY  365 
 
Credits: Charges for the use of intellectual property nie: Licences to reproduce 
and/or distribute computer services: Software: YEARLY  362 WT/TPR/M/396/Add.1  
 
- 134 - 
 
   
Credits: Charges for the use of intellectual property nie: Licences to reproduce 
and/or distribute computer services: Hardware & design: YEARLY  3 
 
Credits: Charges for the use of intellectual property nie: Licences to repr oduce 
and/or distribute audiovisual & related services: YEARLY  0 
 
Credits: Charges for the use of intellectual property nie: Outcomes of research & 
development: YEARLY  338 
 
Credits: Charges for the use of intellectual property nie: Franchise & trademarks 
licensing fees: YEARLY  121 
 
Credits: Charges for the use of intellectual property nie: Other charges: Total: 
YEARLY  343 
 
Credits: Charges for the use of intellectual property nie: Other charges: Royalties 
on education: YEARLY  32 
 
Credits: Charges for the use of intellectual property nie: Other charges: Royalties 
on telecommunication services: YEARLY  0 
 
Credits: Charges for the use of intellectual property nie: Other charges: Music: 
YEARLY  117 
 
Credits: Charges for the use of intellectual property nie: Other charges: Other: 
YEARLY  194 
 
Credits: Personal, cultural & recreational services: Audiovisual & related: 
Royalties: Total: YEARLY  247 
 
Credits: Personal, cultural & recreational services: Audiovisual & related: 
Royalties: Film: YEARLY  5 
 
Credits: Personal, cultural & recreational services: Audiovisual & related: 
Royalties: Television: YEARLY  141 
 
Credits: Personal, cultural & recreational services: Audiovisual & related: 
Royalties: Home entertainment royalties: YEARLY  0 
 
Credits: Persona l, cultural & recreational services: Audiovisual & related: 
Royalties: Other audiovisual royalties: YEARLY  13 
 
Credits: Personal, cultural & recreational services: Audiovisual  & related: 
Royalties: Other film, TV & multimedia royalties: YEARLY  88 
 
Credits: Personal, cultural & recreational services: Audiovisual & related: 
Royalties: Other audiovisual nie: YEARLY  29 
 
Total IP Credits (receipts)  1,414  
Debits: Charges for the use of intellectual property: Total: YEARLY   
 
Debits: Charges for the use of intellectual property nie: Total: YEARLY     -4,625   
Debits: Charges for the use of intellectual property nie: Licences to reproduce 
and/or distribute computer services: Total: YEARLY  -1,652  
 
Debits: Charges for the use of intellectual property nie: Licences to reproduce 
and/or distribute computer services: Software: YEARLY  -1,592  
 
Debits: Charges for the use of intellectual property nie: Licences to reproduce 
and/or distribute computer services: Hardware & design: YEARLY  -60 
 
Debits: Charges for the use of intellectual property nie: Licences to reproduce 
and/or distribute audiovisu al & related services: YEARLY  0 
 
Debits: Charges for the use of intellectual property nie: Outcomes of research & 
development: YEARLY  -518 
 
Debits: Charges for the use of intellectual property nie: Franchise & trademarks 
licensing fees: YEARLY  -1,482  
 
Debits: Charges for the use of intellectual property nie: Other charges: YEARLY  -973  
Debits: Charges for the use of intellectual property nie: Other charges: Royalties 
on education: YEARLY  -3 
 
Debits: Charges for the use of intellectual property nie: Other charges: Royalties 
on telecommunication services: YEARLY  0 WT/TPR/M/396/Add.1  
 
- 135 - 
 
   
Debits: Charges for the use of intellectual property nie: Other charges: Music: 
YEARLY  -356 
 
Debits: Charges for the use of intell ectual property nie: Other charges: Other: 
YEARLY  -614 
 
Debits: Personal, cultural & recreational services: Audiovisual & related: 
Royalties: Total: YEARLY     -1,671  
 
Debits: Personal, cultural & recreational services: Audiovisual & related: 
Royalties: Film: YEARLY  -369 
 
Debits: Personal, cultural & recreational services: Audiovisual & related: 
Royalties: Television: YEARLY  -1,102  
 
Debits: Personal, cultural & recreational services: Audiovisual & related: 
Royalties: Home entertainment royalties: YEARLY  -99 
 
Debits: Personal, cultural & recreational services: Audiovisual & related: 
Royalties: Other audiovisual royalties: YEARLY  -32 
 
Debits: Personal, cultural & recreational services: Audiovisual & related: 
Royalties: Other film, TV & multimedia royalties: YEARLY  -69 
 
Debits: Personal, cultural & recreational services: Audiovisual  & related: 
Royalties: Other audiovisual nie: YEARLY  -51 
 
Total IP debits (payments)  -6,296  
Source:   ABS catalogue 5368.0.  
 
Page 84, Para 3.160  
 
Background:  
During the review period, Australia strengthened its international commitments to the protection of 
IP by concluding free trade agreements with Peru and Hong Kong, China, both of which contain 
provisions regarding the protection of IP rights and key principles, such as transparency. In addition, 
the China -Australia Free Trade Agreement (ChA FTA) and the Comprehensive and Progressive 
Agreement for Trans -Pacific Partnership (CPTPP) entered into force for Australia, and include 
chapters on IP. In each case, Australia considers that the IP chapters are consistent with its existing 
IP regime.  
 
Questions 54  
54. Australia has concluded a number of free trade agreements (FTAs) with Peru, Hong Kong, China, 
among others. These free trade agreements contain dedicated chapters on IP protection.  
 
Do these agreements go beyond the minimum standard of protection  obligated under the TRIPS 
Agreement? Kindly explain and list the TRIPS -plus provisions in these agreements.  
 
RESPONSE: The IP Chapters in Australia’s Free Trade Agreements with the Republic of Peru, 
the Hong Kong Special Administrative Region of the Peopl e’s Republic of China and the People’s 
Republic of China affirm and build on commitments in the WTO Agreement on Trade -Related 
Aspects of Intellectual Property Rights (TRIPS). In addition to reinforcing existing levels of 
commitment on IP rights in TRIPS, these agreements provide TRIPS -plus elements such as: 
additional provisions on IP rights that complement TRIPS commitments, such as additional due 
process commitments regarding the granting of geographical indications rights; enhanced 
commitments on transp arency of IP systems, making it easier for traders to obtain information 
about existing rights; and mechanisms to facilitate cooperation between Australia and FTA 
partners in relation to the protection and enforcement of IP rights.  
 
The Department of Foreign Affairs and Trade website contains factsheets providing more detail 
on the benefits of each FTA, including with regard to IP Chapters (available through 
https://dfat.gov.au/trade/agreements/pages/trade -agreements.aspx ). 
 
 
 
 
 WT/TPR/M/396/Add.1  
 
- 136 - 
 
  Page 84, Para 3.160  
 
Background  
During the review period, Australia strengthened its international commitments to the protection of 
IP by concluding free trade agreements with Peru  and Hong Kong, China, both of which contain 
provisions regarding the protection of IP rights and key principles, such as transparency.  
 
In addition, the China -Australia Free Trade Agreement (ChAFTA) and the Comprehensive and 
Progressive Agreement for Trans -Pacific Partnership (CPTPP) entered into force for Australia, and 
include chapters on IP. In each case, Australia considers that the IP chapters are consistent with its 
existing IP regime.  
 
Question 55  
55. Whether the free trade agreement entered by Aust ralia contain any obligations on ‘data 
exclusivity’?  
 
RESPONSE: Of the free trade agreements (FTAs) Australia has entered into since the last 
review, the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP) 
contains a provision for  the protection of undisclosed test or other data in relation to agricultural 
chemical products (Article 18.47).  
 
The Trans -Pacific Partnership (TPP) includes a suspended provision for the protection of 
undisclosed test or other data in relation to pharma ceuticals (Article 18.50); however, this 
provision was suspended in the CPTPP.  
 
The other FTAs that entered into force during the review period do not contain such provisions 
(China, Hong Kong, Peru).  
 
Page 84 -85, Para 3.163 -164 
 
Background  
During the review period, the Government introduced a number of initiatives aimed at assisting 
Australian businesses to secure, commercialize and protect their IP in overseas markets. In 
December 2015, the Government announced the National Innovation and Science Agen da, which 
commits AUD 1.1 billion over four years for 24 innovation -related initiatives. Its overarching aim is 
to support the transition of Australia from an economy based on mining and resources to one based 
on innovation and entrepreneurship. One of the se initiatives, the Global Innovation Strategy, is 
designed to advance international collaboration, and encourage Australians to leverage 
entrepreneurial expertise in key locations overseas. It provides grants aimed at encouraging 
business -research collabo rations with overseas partners, and facilitating the establishment of 
Australian start -ups in key international locations.  
 
The IP Summit, an event held by IP Australia in 2018 and 2019, provided Australian businesses (and 
in particular, SMEs) with informa tion on how to access grants, funding and support, commercialize 
their inventions, expand into key overseas regions, and protect their IP rights.  
 
In April 2017, the Export Finance and Insurance Corporation (Efic), in collaboration with IP Australia, 
released a white paper on "protecting IP overseas", which helps SMEs understand the IP challenges 
they are likely to face. IP Australia also provides jurisdiction -specific information regarding the 
protection of IP in various markets, via its website. Between 1  December 2018 and 30 June 2019, 
IP Australia offered free trial Patent Landscape Reports with every international search, to assist 
Australian businesses to determine whether to seek patent protection overseas. In 2016, Australia 
appointed its first IP Co unsellor to China. The Counsellor's role involves supporting Australian 
businesses to navigate Chinese IP systems and engaging with the Chinese Government on IP policy.  
 
Question 56  
56. With respect to the global IP initiatives undertaken by the Australian Gov t, what initiatives were 
undertaken to educate and encourage its enterprises and institutions in their territories for the 
purpose of promoting and encouraging technology transfer to developing and least -developed 
country as mandated under Article 66 of th e TRIPS Agreement. Please provide details.  
 WT/TPR/M/396/Add.1  
 
- 137 - 
 
  RESPONSE: Australia was pleased to submit in September 2019 its annual report on 
implementation of Article 66.2 of the TRIPS Agreement. That report contains information on 
incentives and support Australia offers to enterprises and institutions to promote and encourage 
technology transfer to least developed country Members (LDCs). Some examples of activities 
are set out below.  
 
The Australian Infrastructure Financing Facility for the Pacific (AIFFP) offers loans and grants to 
support vital infrastructure projects in Timor Leste and the Pacific Island Countries, four of 
which are LDCs (Kiribati, Solomon Islands, Tuvalu and Vanuatu ). Loans are made available to 
both private sector and government entities. An important element of the AIFFP’s design is a 
commitment to use local workers and companies in the delivery of projects, and to boost local 
skills.  Obligations for contractors t o transfer skills to local staff will be included in loan conditions 
and grant agreements.  Projects funded under the AIFFP will only use technologies that are 
appropriate to the local conditions in each recipient country, and that are within each country’ s 
capacity to maintain. By investing in high -priority infrastructure projects across the Pacific, 
including in high -tech sectors such as telecommunications, the AIFFP will help support the 
transfer of technology to LDCs in our region.  
 
Australia’s export c redit agency, Export Finance Australia, provides support to Australian 
exporters aiming to expand their businesses overseas. It supported projects in LDCs during the 
period covered by the report that resulted in technology transfer. This support included 
providing bonds valued at around AU$1 million to a Melbourne -based specialist building 
contractor for the completion of a seawall project in Kiribati. It also included establishing an 
export line of credit for an advanced technology company, also located in  Melbourne, part of 
which supported the construction of a high -resolution numerical weather prediction system in 
Nepal.  
 
Since 2012, Australia has provided funding to the Australia -World Intellectual Property 
Organization (WIPO) Funds in Trust (FIT) progra m to assist technology and knowledge transfer 
to LDCs and developing countries in the Indo -Pacific region. The FIT has supported a range of 
intellectual property (IP) capacity building activities, which have enabled the development of IP 
systems in benefic iary countries. During this most recent Article 66.2 reporting period, the FIT 
supported training workshops for IP Offices from developing countries and LDCs in the Pacific 
Island region, designed to enhance understanding of the WIPO tools and services ava ilable to 
IP Offices. The FIT program also supported the Regional Meeting on Women and IP 
Commercialisation in Asia which was hosted in the Philippines. Participants from LDCs and 
developing countries benefited from the establishment of a network of women involved in the 
technology transfer process in the Asia Pacific region.  
 
Page 85, Para 3.165  
 
Background  
Since the last review, Australia has introduced several measures aimed at boosting innovation and 
assisting Australian businesses, in particular SMEs a nd start -ups, to develop and commercialize IP. 
A number of these measures seek to address perceived barriers to collaboration between Australian 
businesses and the public sector. For example, Source IP provides an online platform for public 
sector patent h olders to signal their licensing intent and promote their key areas of technology. It 
aims to make it easier for small business to access innovation and technology generated by the 
public research sector. The IP Toolkit is another initiative, aimed at faci litating collaboration between 
business and public research organizations. It provides tools and model contracts for the use and 
management of IP in public -private collaborations.  
 
Question 57  
57. Australian Govt. in order to boost innovation and assisting Aus tralian businesses (in particular 
SMEs and start -ups), has come up with online platforms such as Source IP. How does these 
platform s enhance the affordability of expensive technologies to entrepreneurs?  
 
RESPONSE: Source IP is a digital marketplace for inf ormation, contact facilitation and licensing 
preferences for patents generated by the public research sector in Australia. Research 
organisations can use Source IP to promote their inventions and technologies to potential 
business partners and indicate how  their patents can be licenced. The IP Tooklkit facilitates 
collaboration between business and public research organisation by providing tools and model WT/TPR/M/396/Add.1  
 
- 138 - 
 
  contracts for the management of IP. Source IP and the IP Toolkit help businesses to get access 
to IP bu t do not directly affect the affordability of technologies.  
 
Page 87, Para 3.173  
 
Background  
 
The Intellectual Property Laws Amendment (Productivity Commission Response Part 1 and Other 
Measures) Act 2018 (IPLA 2018) implemented Part 1 of the Australian Government's response to 
the PC Report. The Act removed a requirement for patentees who receive a patent term extension 
to provide the Department of Health with information regarding the costs of R&D. The original policy 
objective of this requir ement was to provide data for the Government to use, to determine whether 
patent term extensions were serving their purpose in incentivising local R&D. However, it was often 
not complied with, and alternative sources of data are now available that can prov ide the same type 
of information. The IPLA 2018 also introduced a number of administrative and technical amendments 
intended to streamline and align the administration of Australia's IP systems.  
 
Question 58  
58. The Intellectual Property Laws Amendment (Produc tivity Commission Response Part 1 and 
Other Measures) Act 2018 (IPLA 2018) removed the requirement for patentees who receive 
patent term extensions to provide for Department of Health with information regarding the cost 
of R&D.  
What is the rationale for p roviding ‘patent term extension’ after the concerned patent has 
enjoyed 20 year exclusivity over others? Has there been any study at Govt. level to examine 
the linkage between patent term extension and accessibility of patented subject matter 
(especially i n case of pharmaceuticals)?  
 
RESPONSE:  Patent applications for pharmaceuticals often occur well before a product is 
approved for sale in the Australian market. This can reduce the effective patent life for 
pharmaceuticals. The aim of the patent term extension is to compensate for regulatory de lays 
in allowing original pharmaceuticals to get to market, and to encourage pharmaceutical R&D in 
Australia.  
 
The Pharmaceutical Patents Review in 2013, and the 2016 Productivity Commission review of 
Australia’s intellectual property arrangements, both co nsidered the linkage between patent term 
extension and accessibility of patented pharmaceuticals.  
 
https://www.ipaustralia.gov.au/ about -us/public -consultations/archive -ip-
reviews/pharmaceutical -patents -review . 
 
https://www.pc.gov.au/inquiries/completed/intellectual -property/report . 
 
Page 88, Para 3 .179 
 
Background  
 
The Federal Court of Australia may order the granting of a compulsory licence if it is satisfied that 
the applicant has tried for a reasonable period, without success, to obtain authorization from the 
patentee, the reasonable requirements  of the public have not been met in relation to the invention, 
and the patentee has not given a satisfactory reason for failing to exploit the patent. Compulsory 
licences may also be made available where the Court is satisfied that the patentee is engaging  in 
restrictive trade practices in contravention of Australian competition law. To date, a compulsory 
licence has never been granted in Australia, and applications for compulsory licences are seldom 
made.  
 
Following a number of reviews into compulsory lice nsing, the Government proposes to amend the 
compulsory licensing provisions to replace the "reasonable requirements of the public test" – which 
is currently defined by reference to the interests of Australian trade or industry – with a "public 
interest" tes t. This intends to provide clarity and ensure that the provisions serve their original 
objective of promoting community -wide welfare.  
 
 WT/TPR/M/396/Add.1  
 
- 139 - 
 
  Question 59  
59. What is meant by the term ‘failing to exploit the patent’?  What factors go into determining 
whether a right  holder has exploited the said patent?  
 
RESPONSE: In the context of a patent, ‘exploit’ is defined in schedule 1 of the Patents Act 
1990. It includes:  
(a) where the invention is a product —make, hire, sell or otherwise dispose of the 
product, offer to make, sell, hire or otherwise dispose of it, use or import it, or 
keep it for the purpose of doing any of those things; or  
(b) where the invention is a method or process —use the method or process or do 
any act mentioned in paragraph (a) in respect of a product resulting from such 
use. 
 
The factors determining whether a rights holder has failed to exploit the patent are currently 
set out in paragraph 135(a)(1) of the Patents Act 1990 , and indicate that the patentee must 
have failed:  
(i) to manufacture the pat ented product to an adequate extent, and supply it 
on reasonable terms; or  
(ii) to manufacture, to an adequate extent, a part of the patented product that 
is necessary for the efficient working of the product, and supply the part on 
reasonable terms; or  
(iii) to carr y on the patented process to a reasonable extent; or  
(iv) to grant licences on reasonable terms;  
 
The Australian Parliament recently passed the Intellectual Property Laws Amendment 
(Productivity Commission Response Part 2 and Other Measures) Bill 2019 which am ends the 
requirement for compulsory licenses. When the Bill comes into force, section 135 of the Patents 
Act 1990  will be repealed. The new test will be whether demand exists in Australia for the 
patented invention, and the patentee has failed to exploit t he patent (within the meaning of 
schedule 1) to the extent necessary to meet that demand on reasonable terms.  
 
Page 88, Para 3.179  
 
Background  
The Federal Court of Australia may order the granting of a compulsory license if it is satisfied that 
the applica nt has tried for a reasonable period, without success, to obtain authorization from the 
patentee, the reasonable requirements of the public have not been met in relation to the invention, 
and the patentee has not given a satisfactory reason for failing to exploit the patent. Compulsory 
licenses may also be made available where the Court is satisfied that the patentee is engaging in 
restrictive trade practices in contravention of Australian competition law. To date, a compulsory 
license has never been grante d in Australia, and applications for compulsory licenses are seldom 
made.  
 
Following a number of reviews into compulsory licensing, the Government proposes to amend the 
compulsory licensing provisions to replace the "reasonable requirements of the public t est" – which 
is currently defined by reference to the interests of Australian trade or industry – with a "public 
interest" test. This intends to provide clarity and ensure that the provisions serve their original 
objective of promoting community -wide welfar e. 
 
Question 60  
60. How many compulsory licenses have been applied for so far? How is ‘public interest’ evaluated 
in the context of compulsory license?  
 
RESPONSE: A compulsory licence has never been granted in Australia. There have been three 
cases where an ap plication has been made. There are several possible reasons for the limited 
number of compulsory licence applications:  
• Compulsory licensing is a safeguard that is rarely needed;  
• Compulsory licensing provisions may act as a deterrent against refusals to licence on 
voluntary terms; and/or  
• Issues with the compulsory licensing provisions may be limiting their utilisation.  
 WT/TPR/M/396/Add.1  
 
- 140 - 
 
  Section 133(3)(e) of Intellectual Property Laws Amendment (Productivity Commission Response 
Part 2 and Other Measures) Bill 2 019, provides that the grant of the licence must be in the public 
interest, and sets out factors for a court to consider when determining whether the public interest 
will be met.  
 
The intent of the ‘public interest’ test is to recognise the balance require d between the rights of 
the patent holder and the interests of the broader public. Section 133(3)(e) sets out three factors 
for the court to have regard to when considering the public interest:  
(i) the benefits to the public from meeting the relevant unmet  demand for the original 
patented invention;  
(ii) the commercial costs and benefits to the patentee and the applicant from providing 
authorisation to exploit the original patented invention;  
(iii) any other matters the court considers relevant, including those relating to greater 
competition and any  impact on innovation.  
https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22legisla tion
%2Fbills%2Fs1216_aspassed%2F0000%22;rec=0 . 
 
Page 87, Para 3.178  
 
Background  
Since 1980, there are two ways to apply for a standard patent in Australia: either directly  with IP 
Australia, or through an international filing system under the PCT. In 2018 , IP Australia received 
29,957 standard patent applications, an increase of over 3% compared with 2017.160 Of these, 
91% were filed by non -residents, with the United States, Japan, Germany and the  United Kingdom 
the top four sources of patent filings. With  3,663 patent applications, up 8% from 2017, medical 
technology was the leading field in 2018. Applications for biotechnology and pharmaceuticals also 
grew strongly. Civil engineering, by contrast, saw a sharp decline. These trends are consistent with 
global changes, such as an ageing population and the consequent growing demand for medical goods 
and services, as well as technology life cycles.  
 
Question 61  
61. Kindly provide a detailed account of how many patents were filed in Australia in 2018 by 
developing c ountries such as India and China?  
 
RESPONSE: In 2018, applicants from China filed 1,252 standard patent applications and 720 
innovation patent applications in Australia.  
 
In 2018, applicants from India filed 211 standard patent applications and 17 innovation patent 
applications in Australia.  
 
IP Australia publishes an annual IP report which includes a digital interactive with publicly 
accessible annual data on patent applications by applicant, country of origin and technology. 
Patent statistics for 2017 and 2018 can be found at this link https://www.ipaustralia.gov.au/ip -
report -2019-patents -data. 
 
Page 88, Para 3.181  
 
Background  
The Government considers that world -wide high -quality IP examination based on internationally 
agreed standards is in the interests of Australian businesses, and has, accordingly, committed to 
improving the quality of its patent examination. As part of this commitment, IP Australia provides a 
comprehensi ve, flexible training programme for patent examiners – the Self -paced Training for 
Examiners of Patents programme. A number of the Government's legislative responses to the PC 
Report are also directed to improving the quality of Australian patents.  
 
Question 62  
62. The PC report mentions the need to improve quality of patent grant. Have any steps been taken 
to improve the quality of grant? Please provide details.  
 
RESPONSE: IP Australia has introduced programs which focus on continuous learning to 
improve  patent examiner knowledge and skill in all aspects of examination including searching WT/TPR/M/396/Add.1  
 
- 141 - 
 
  the prior art base and the assessment of the legal requirements necessary for obtaining patent 
protection.  
 
IP Australia is designing new quality standards and systems t hat support examination processes 
and practices leading to increased confidence in the validity of granted patents.  
 
Page 87, Para 3.178  
 
Background  
Since 1980, there are two ways to apply for a standard patent in Australia: either directly with IP 
Austra lia, or through an international filing system under the PCT. In 2018, IP Australia received 
29,957 standard patent applications, an increase of over 3% compared with 2017.160 Of these, 
91% were filed by non -residents, with the United States, Japan, German y and the United Kingdom 
the top four sources of patent filings. With 3,663 patent applications, up 8% from 2017, medical 
technology was the leading field in 2018. Applications for biotechnology and pharmaceuticals also 
grew strongly. Civil engineering, by  contrast, saw a sharp decline. These trends are consistent with 
global changes, such as an ageing population and the consequent growing demand for medical goods 
and services, as well as technology life cycles.  
 
Question 63  
63. Kindly provide a detailed breakup of patents that have been filed in Australia in the field of 
Artificial Intelligence (AI) machine learning. What are the major trends emerging in patent filing 
in AI?  
 
Are there any special guidelines for patents related to AI and machine learning?  
 
RESPONSE: IP Australia prepared a patent analytics report that provides a specific analysis of 
emerging technologies in machine learning relating to AI. This report analyses the development 
and uses of technology relating to machine learning and  also provides insight into innovators in 
this field – based on patents filed – with potential connections for research, development and 
commercialisation.  
 
There are no special guidelines for patents relating to AI and machine learning.  
 
https://www.ipaustralia.gov.au/sites/default/files/reports_publications/patent_analytics_repor
t_on_machine_learning_innovation .pdf. 
 
Page 90, Para 3.193  
 
Background  
 
In 2018, 384 PBR applications were filed, an increase of 12%, returning to their 2016 level. In the 
same year, 222 applications were registered, a fall of 9%, from 245 in the previous year. Two plant 
groups, ornamentals and fruit crops, were the strongest performers in both applications and 
registrations. Fruit crops comprised 39% of applications and 18% of registrations. Ornamental plant 
varieties accounted for 28% of applications and 48% of registrations. No n-resident applications 
accounted for 57% of total applications in 2018. The United States was the largest source, filing 
almost a quarter of the applications, followed by the Netherlands.  
 
Question 64  
64. Under the plant variety protection laws of Australia, farmer, nursery owner among others can 
be right holders. Please provide composition of the applications filed in 2018 by applicant type 
such as corporations, nursery owner, farmers and others.  
 
RESPONSE: In Australia the breeder of a plant variety may appl y for a plant breeder’s right 
(PBR) however the right to apply may be assigned or transmitted to other entities. A structured 
categorisation of PBR applicants is not captured but can be broadly estimated. In 2018 the 
approximate composition of the 384 appl icants for a PBR were: Corporations 17 per cent, 
Businesses (including companies and nurseries) 59 per cent, Individuals (including breeders, 
growers and farmers) 13 per cent and Others (including Universities, Research Stations, 
Government agencies, Trust s and Authorities) 12 per cent.  
 WT/TPR/M/396/Add.1  
 
- 142 - 
 
  Page 90, Para 3.193  
 
Background  
 
In 2018, 384 PBR applications were filed, an increase of 12%, returning to their 2016 level. In the 
same year, 222 applications were registered, a fall of 9%, from 245 in the previous year. Two plant 
groups, ornamentals and fruit crops, were the strongest performers in both applications and 
registrations. Fruit crops comprised 39% of applications and 18% of registrations. Ornamental plant 
varieties accounted for 28% of applicat ions and 48% of registrations. Non -resident applications 
accounted for 57% of total applications in 2018. The United States was the largest source, filing 
almost a quarter of the applications, followed by the Netherlands.  
 
Question 65  
65. Under the plant varie ty protection laws of Australia, farmer, nursery owner among others can 
be right holders. Please provide composition of the applications filed in 2018 by applicant type 
such as corporations, nursery owner, farmers and others.  
 
RESPONSE: In Australia the br eeder of a plant variety may apply for a plant breeder’s right 
(PBR) however the right to apply may be assigned or transmitted to other entities. A structured 
categorisation of PBR applicants is not captured but can be broadly estimated. In 2018 the 
approx imate composition of the 384 applicants for a PBR were: Corporations 17 per cent, 
Businesses (including companies and nurseries) 59 per cent, Individuals (including breeders, 
growers and farmers) 13 per cent and Others (including Universities, Research Sta tions, 
Government agencies, Trusts and Authorities) 12 per cent.  
 
Page 91, Para 3.196  
 
Background  
 
Wine Australia's Geographical Indications Committee determines applications for the registration of 
new Australian and foreign wine GIs. The Wine Act, toget her with the Wine Regulations, set out the 
criteria for the determination of new wine GIs, including the grounds for objection by third parties, 
as well as the circumstances in which GIs may be omitted from the Register. A person may object 
to an applicati on for the registration of a wine GI on the basis of pre -existing trade mark rights, or 
on the grounds that the name of the GI was already in common use as the common name of a type 
or style of wine or as the name of a variety of grapes. A person may apply  for the omission of a pre -
existing GI from the Register on the grounds that the GI is not in use in Australia, that the GI is no 
longer required (for Australian GIs only) or that the GI is not protected in its country of origin and 
not in use in Australia . 
 
Question 66  
66. What is meant by the use of GI in Australia? What are the criteria used to identify whether a GI 
has been used or not?  
 
RESPONSE: For wine, to use a GI refers to its inclusion in the description and presentation of 
wine that is sold, exporte d or imported from Australia. Under the Wine Australia Act 2013 
(section 5C), this includes all names (including business names) and other descriptions, 
references (including addresses), indications, signs, designs and trade marks used to 
distinguish the w ine and appearing: anywhere on the container (e.g. wine bottle) or its 
packaging (e.g. wrapping, cartons or cases); in documents relating to the transport of the wine 
or in other commercial documents relating to the sale or transport; or in advertisements relating 
to the wine. The Wine Australia Act 2013 and regulations set out the circumstances under which 
the use of the GI in the description and presentation of the wine would not be considered false 
or misleading and therefore not an offence under the Act . 
 
Page 91, Paragraph -3.19 
 
Question 67  
67. More information on what the "certain criteria" referred to accept the registration of 
geographical indications is requested.  
 WT/TPR/M/396/Add.1  
 
- 143 - 
 
  RESPONSE: To obtain registration as a certification trade mark, a geographical indication must 
meet the requirements of examination and opposition processes. These requirements are laid 
out in Part 4, Division 2 and Part 5, Division 2 of the Trade Marks Act 1995. These include, inter 
alia. 
• The certification trade mark mu st be capable of distinguishing the certified goods from 
goods not so certified;  
• The certification trade mark must not be the same or confusingly similar to an earlier 
trade mark for the same or similar goods; or likely to deceive or confuse, or be 
scandal ous or contrary to law, or consist of or contain a prohibited sign.  
Applications must also be accompanied by rules governing use of the certification trade mark 
which must include:  
• the requirements that goods or services must meet for the certification tra de mark to 
be applied to them;  
• the attributes that a person must have to become an approved certifier;  
• the requirements that the owner of the certification trade mark or an approved user 
must meet to use the certification trade mark in relation to goods or  services;  
• the procedure for resolving a dispute about whether goods or services meet the 
certification requirements.  
Once a certification trade mark has met registration requirements, the application is forwarded 
to an independent government organisation,  the Australian Competition and Consumer 
Commission (ACCC), to ensure the application rules are consistent with competition principles 
and in the public interest.  
 
The rules must not unfairly exclude those qualified to use the trade mark and certification 
authorities must be competent.  
 
Under the Wine Australia Regulations 2018, the ‘certain criteria’ differs according to whether an 
application for determination of a wine GI is foreign or domestic. If the GI to be determined is 
foreign, and no objection to the GI has been successful, then the Geographical Indications 
Committee must:  
• Identify the boundaries of the area or areas in the region or locality to which the GI 
would relate;  
• Determine the indication to be used to indicate that area;  
• Determine any con ditions of use that would apply to the GI;  
• Have regard to whether the GI is protected by the country in which the GI is located 
(refer section 92 of the Regulations).  
For domestic GI applications, the Geographical Indications Committee should consider a r ange 
of specific criteria relating to the geophysical features of the area, the winemaking within that 
area and for the determination of the indication to be used, any history or other evidence relating 
to use or knowledge of that name (refer section 57 of  the Regulations).   
 
Page 92, Para 3.200  
 
Background  
 
During the review period, no changes were made to the law in relation to undisclosed information 
and trade secrets, which are protected under common law and by equity.  
 
Question 68  
68. Has there been any assessment of the effectiveness of common law and equity for protection 
of trade secret in Australia? Is there any proposal to have specific law on trade secret? Please 
share the details.  
 
RESPONSE: Trade secrets are protected under Aus tralian law principally by the common law 
action for breach of contract, where the obligation to maintain the confidentiality of the trade 
secret is based in contract, and by the equitable action for breach of confidence.  
 
While there has been no assessmen t of the effectiveness of the protection of trade secrets, 
whether by the equitable action for breach of confidence or the common law action for breach 
of contract, both causes of action are ancient in origin and their fundamental principles are well -
known  and understood.  
 WT/TPR/M/396/Add.1  
 
- 144 - 
 
  The Australian Government has no intention of introducing a specific law on trade secret 
protection. This has the potential to undermine the adaptability of the equitable action for 
breach of confidence to the circumstances of individual  cases, which is seen as one of its 
strengths. In particular, its normative standard of ‘trust and confidence’ has enabled the courts 
to adapt its content and operation to evolving social contexts by focussing on standards of 
propriety and good faith, whic h when absent constrain the effective circulation of knowledge, 
both within and between organisations.  
 
In certain circumstances, the misappropriation of trade secrets may also constitute a criminal 
offence. For example, theft of trade secrets on behalf of  a foreign government constitutes an 
offence, punishable by fifteen years’ imprisonment, under the National Security Legislation 
Amendment (Espionage and Foreign Interference) Act 2018 (Cth). Division 476 of the Criminal 
Code Act 1995 (Cth) also contains a  number of offences relating to unauthorised access, 
modification or impairment of data held on a computer disk. For instance, a person commits an 
offence punishable by two years’ imprisonment if she or he causes any unauthorised access to 
restricted data.  Where a party has implemented measures to restrict access to trade secrets 
stored on a computer disk, unauthorised access to that data may constitute an offence under 
this provision. Similar offences exist under state and territory criminal laws.  
 
Page 92 , Para 3.202 -3.203  
 
Background  
 
The Copyright Act, 1968, last amended in 2018, protects original dramatic, musical and artistic 
works, as well as sound recordings, films, television and sound broadcasts, and published editions 
of works. Copyright for liter ary, dramatic, musical and artistic works generally lasts for the author's 
life plus 70 years, or, if the identity of the author is not known, 70 years from the first publication 
of the work. Copyright for films and sound recordings lasts 70 years from the ir publication, whereas 
copyright in a television or sound broadcast lasts for 50 years from the date of the broadcast. 
Copyright is granted automatically where the substantive requirements are fulfilled.  
 
A 2018 survey charted the changes in digital conte nt consumption since 2015, with a significant rise 
in content streaming for music, television and cinematic works against a smaller drop in downloaded 
consumption. The same survey showed a rise in the consumption of exclusively lawful digital content 
from 57% in 2015 to 67% in 2018. The report observes that quality, convenience and price are the 
key differentiating factors which motivate consumers to use paid services rather than consume 
unlawful content.  
 
Question 69  
69. The Secretariat report mentions a 2018 survey that charted the changes in digital content 
consumption since 2015 and explains about the significant rise in content streaming for music, 
television, and cinematic works against small drop in download consumption.  
 
Has Australia come up with any specific licensing regime for streaming services? Kindly provide 
details.  
 
RESPONSE: Australia does not regulate to provide any specific licensing regime for streaming 
services.  
 
Australian Copyright Collecting Societies of fer licensing options for users of copyright material 
that potentially include streaming services.  
 
Page 92, Para 3.202  
 
Background  
 
The Copyright Act, 1968, last amended in 2018, protects original dramatic, musical and artistic 
works, as well as sound recordings, films, television and sound broadcasts, and published editions 
of works. Copyright for literary, dramatic, musical and artis tic works generally lasts for the author's 
life plus 70 years, or, if the identity of the author is not known, 70 years from the first publication 
of the work. Copyright for films and sound recordings lasts 70 years from their publication, whereas WT/TPR/M/396/Add.1  
 
- 145 - 
 
  copyrigh t in a television or sound broadcast lasts for 50 years from the date of the broadcast. 
Copyright is granted automatically where the substantive requirements are fulfilled.  
 
Question 70  
70. What are the substantive requirements for a copyright to be granted au tomatically?  
 
RESPONSE: The Copyright Act 1968  protects works or subject matter other than works made 
by a resident or citizen of Australia, or made or first published in Australia, or has a specified 
connection with a country which is a member of a releva nt international copyright treaty.  
 
Copyright protection is granted automatically from the time an original work is created. There 
are no formalities (such as publication, registration or payment of fees). Copyright work will be 
considered original if it i s the product of the creator's own intellectual effort and has not been 
copied from another person's work.  
 
Page 95, Para 3.218  
 
Background  
 
The Australian Border Force (ABF) of the Department of Immigration and Border Protection 
administers border enforcement measures for trademarks and copyrights. Upon acceptance of a 
Notice of Objection lodged by the IPR owner, the ABF may seize and hold imported goods that 
infringe, or appear to infringe, copyrights or trademarks. The importer must then make a cl aim for 
release of the seized goods within ten working days, without which the goods will be forfeited.  If 
the importer does make a claim for release, the objector has ten working days to either commence 
legal action, or consent to the release of the good s. The IPLA 2018 amended the Copyright Act and 
the Trade Mark Act to provide the ABF with more flexibility on how seizure notices are issued, and 
what information is to be included on those notices.  
 
Question 71  
71. Kindly clarify whether goods in transit whic h are meant for third countries will be subjected to 
suspension of release or detention on suspicion of trademark or patent infringement?  
If yes, please clarify the procedure of suspension of release or detention of such goods?  
 
RESPONSE: Australian Border  Force (ABF) officers are able to undertake normal import/export 
seizures under Customs legislation on trans -shipped goods that are landed in Australia.  ABF is 
only able to seize transit goods (goods not coming off a vessel) if in possession of a warrant.  
 
Page 96, Para 3.219  
 
Background  
 
In August 2017, the Standing Committee on Indigenous Affairs adopted an inquiry into the growing 
presence of inauthentic Aboriginal and Torres Strait Islander "style" art and craft products and 
merchandise for sale across  Australia, publishing its final report in December 2018. The report made 
a number of recommendations to restrict the prevalence of these inauthentic products, including 
that IP Australia develop a certification trade mark scheme for authentic First Nation s art and craft, 
and that the Government begin consultation to develop stand -alone legislation protecting Indigenous 
Cultural Intellectual Property (including traditional knowledge and cultural expressions). The 
Australian Competition and Consumer Commissi on (ACCC) has enforced the Australian Consumer 
Law in a number of cases relating to the sale of inauthentic indigenous art and craft products.  
 
Question 72  
72. Has there been any progress on the recommendation made by the Standing Committee on 
Indigenous Affai rs regarding the standalone legislation protecting Indigenous Cultural 
Intellectual Property (including traditional knowledge and cultural expressions) thereof.  
 
RESPONSE: The Australian Government is currently considering its response to the 
recommendati ons made in this report.  
 
 
 WT/TPR/M/396/Add.1  
 
- 146 - 
 
  Page 119, Para 4.89  
 
Question 73  
73. Australia is requested to provide the details of the legislative and prudential requirements for 
setting up foreign -owned subsidiaries of foreign banks?  
 
RESPONSE: Subsidiaries of foreign -owned banks that wish to become authorised deposit -
taking institutions (ADIs) in Australia are subject to exactly the same prudential requirements 
as Australian -owned companies that wish to become ADIs.  New ADIs are subject to exactly the 
same prud ential requirements as incumbents.   There are only three notable differences in the 
approach that the Australian Prudential Regulation Authority (APRA) would take in assessing 
such applications.  Firstly, a subsidiary of a foreign -owned bank would require a n exemption 
from the stipulation in the Financial Sector (Shareholdings) Act 1998 (Cth) that no individual, 
entity, or group of associated persons/entities may own in excess of 20 per cent of an 
ADI. Australia notes that there are seven subsidiaries of for eign-owned banks currently 
operating in Australia.  Secondly, in assessing the ADI’s access to additional capital, APRA will 
need to undertake an assessment of the parent entity. Thirdly, a letter of non -objection is 
required from the foreign bank’s home su pervisor, as well as confirmation that the parent entity 
is in good standing with the home supervisor.  
 
Page 127 Para, 4.130  
 
Question 74  
74. Kindly explain the Mobile Black Spot Program?  
 
RESPONSE: The Australian Government’s AU$380 million Mobile Black Spot Program (MBSP) 
was established in 2014, and seeks to improve mobile coverage in regional and remote areas 
(https://www.communication s.gov.au/what -we-do/phone/mobile -services -andcoverage/ 
mobile -black-spot-program ). The MBSP provides funding towards the capital costs of building 
new base stations that provide new and improved mobile coverage in regional and remote 
Australia. The funding  is awarded through a competitive assessment process. The MBSP has 
been highly successful. The first four rounds are funding the delivery of 1,047 new base stations 
across regional and remote Australia providing new and improved mobile coverage to thousand s 
of communities. The assessment process for Round 5 has recently been completed and there is 
funding allocated for future rounds. The access criteria do not discriminate between domestic 
and foreign entities. The MBSP has also received strong support from  the community and other 
stakeholders including State Governments and the peak bodies representing regional and 
remote telecommunications users.  
 
Page 130, Para 4.149  
 
Question 75  
75. Australia is requested to give details of Coastal Trading (Revitalising Aust ralian Shipping) 
Amendment Bill, 2017 and its provisions.  
 
RESPONSE: The Coastal Trading (Revitalising Australian Shipping) Amendment Bill 2017 (the 
Amendment Bill) is no longer current and will not be reintroduced to Parliament for 
consideration.  
 
Consul tation is currently being undertaken with stakeholders on options for coastal trading 
reform. The outcomes of this consultation will be provided to the Australian Government for 
consideration.  
 
Page 131, Para 4.153  
 
Question 76  
76. “Exemption from the royalty withholding tax for foreign owners of eligible vessels leased under 
a bareboat or demise charter to an Australian resident company.”  
Australia is requested to specify the conditions of eligibility.  
 
RESPONSE: In accordance with the Shipping Reform (Tax Incentives) Act 2012, the following 
conditions must be satisfied:  WT/TPR/M/396/Add.1  
 
- 147 - 
 
  • Lessee must be an Australian resident company;  
• Vessel must be an excluded vessel listed in subsection 10(4) of the Shipping 
Reform (Tax Incentives) Act 2012;  
• Under the lease, the lesse e has whole possession and control of the vessel, 
including the right to appoint the master and crew of the ship (i.e. the vessel must 
be leased on a bareboat basis); and  
• The vessel must be used, or available for use, wholly or mainly for business or 
comme rcial activities that involve shipping cargo or passengers for consideration.  
 
Page – 98, Paragraph – 4.4 
 
Background  
 
Australia’s agricultural business is strongly export oriented. About 77% of the production is exported. 
In 2018, farm exports reached nearly AUD 49 billion, or 14% of total merchandise exports.  
 
Question 77  
77. Australia ranks as a top or one of the top expor ters for multiple agricultural commodities such 
as sheep, goat meat, wool, rapeseed, beef, sugar, dairy, and cotton. In the Trade Policy Review - 
Report by Australia (WT/TPR/G/396) it mentioned that Australia was the first member to have 
implemented the 201 5 Nairobi Decision on Export Competition. In this regard India would 
request Australia to address the following :- 
a) Does Australia have any working capital financing programmes in place?  
b) If yes, then what commodities do these programmes cover  
c) How ar e these working capital financing programmes notified?  
d) What are the eligibility requirements under these programmes?  
 
RESPONSE:  
 
a) Export Finance Australia provides a range of commercial financial products, including 
loans, bonds and guarantees, to support Australian export trade. These may include 
working capital financing.  
b) Export Finance Australia finance is not restricted by commodity type.  
c) Footnote 7 of the Nairobi Decision provides that programs that only provide working 
capital f inancing support for suppliers (exporters) are not export credit programs.   
d) Export Finance Australia may provide support to Australian -owned or foreign -invested 
companies registered in Australia that export goods wholly or substantially produced in 
Austra lia and as otherwise defined in the Export Finance and Insurance Corporation Act 
1991. 
 
Page – 103, Paragraph – 4.23 
 
Background  
 
The Government continues to finance a certain number of concessional loan schemes. A recent 
addition to this system is the Reg ional Investment Corporation (RIC), established under the Regional 
Investment Corporation Act, 2018. The RIC administers the delivery of farm business loans within a 
total frame of AUD 2 billion, and national water infrastructure loans to eligible state an d territory 
government projects (up to AUD 2 billion in total). As at August 2019, the loans provided to farmers 
through the RIC at concessional rates were for farm investments (up to AUD 2 million), drought 
loans (up to AUD 2 million), and AgRebuild loans  (up to AUD 5 million), following severe flooding in 
North and Far North Queensland in early 2019.  
 
Question 78  
78. The Australian Government recently established the Regional Investment Corporation (RIC) 
which will administer the delivery of farm business lo ans and national water infrastructure loans. 
In this regard Australia is requested to address the following - 
a) Have these loans been notified in the CoA? If yes, how have they been notified?  
b) What are the eligibility criteria for these loans?  
c) What ha s been the expenditure till date under the initiative?  
 
 WT/TPR/M/396/Add.1  
 
- 148 - 
 
  RESPONSE:  
 
a) The Regional Investment Corporation (RIC) was established in February 2018. The RIC did 
not fund any loans in the 2017 -18 reporting period. Funding provided through the RIC's loan 
facilities will be notified in Australia's Domestic Support notification/s for 2018 -19 and 
subsequent reporting periods. Australia's Domestic Support notification/s for 2018 -19 are 
currently being finalised.  
 
b) Standard RIC eligibility criteria for farm b usiness loans includes:  
 
The applicant:  
• Is an Australian citizen or permanent resident;  
• Contributes at least 75 per cent of their labour to the farm business; and  
• Earns at least 50 per cent of their income from the farm business.  
The farm business:  
• Is in need of the concessional loan;  
• Has the capacity to repay the loan;  
• Has existing commercial debt;  
• Is financially viable in the long term;  
• Is registered for tax purposes in Australia and has a Australian Business Number 
(ABN) and is registere d for Goods and Services Tax (GST);  
• Is not under external administration or bankruptcy; and  
• Must provide security for the loan.  
These are general criteria across all farm loans. Some loan products have specific criteria, such 
as for the Drought Loan produc t the applicant must complete a drought management plan.  This 
outlines to the RIC how the applicant will use loan funds to prepare for, manage through or 
recover from drought.  
 
Eligibility for water infrastructure loans are that the applicant:  
• Is a State  or Territory Government;  
• Has written support of the state or territory Minister who is responsible for Water 
infrastructure; and  
• Has necessary planning and government approvals to start construction.  
The water infrastructure project must be:  
• A major project such as a dam, weir, pipeline, managed groundwater (aquifer) 
recharge or waste water treatment and reuse scheme;  
• Ready to begin construction;  
• Be consistent with the Australian Government National Water Initiative principals; and  
• Economically viable  over its proposed operational life.  
For water infrastructure loans, the RIC will fund AU$10 million or more and no more than 49 
per cent of the cost of the project.  
 
c) Since its establishment and as at 31 December 2019, the RIC had provided 177 loans wi th a 
total value AU$162 million. There have been no water infrastructure loans provided.  
 
Background  
 
The objective of this question is to gather more information about the mandatory data sharing 
framework in Australia – with the aim of assessing their WTO  compatibility.  
 
Question 79  
79. Australia is requested to share the details of the various mandatory data sharing requirements 
being imposed or proposed to be imposed at the federal or the sub -federal level in Australia.  
 
In particular, Australia is requested to provide the mandatory data sharing requirement 
proposed to be imposed on car manufacturers in relation to service and repair information being 
provided to independent repairers in the same form as it is shared with their franchised 
dealership networks.  
 
Are such mandatory data sharing requirements in conformity with Australia’s WTO 
commitments?  
 WT/TPR/M/396/Add.1  
 
- 149 - 
 
  RESPONSE: The Australian Government has initiatives underway to encourage more data 
sharing between government agencies for government held data.  
 
The Australian Government Public Data Policy Statement commits Australian Government 
entities to a range of actions designed to optimise the use and reuse of government data. These 
commitments include releasing non -sensitive data as open by default on the Aus tralian 
Government’s open data portal (data.gov.au) and using agreed upon open data standards. As 
a result of this commitment, there are now over 80,000 datasets available on the site, up from 
the approximately 500 datasets in 2013 (prior to the Statement' s release).  
 
Australia is currently developing a new data sharing Bill to provide an alternative pathway for 
federal government agencies to share data held by them to other entities that are accredited 
by a National Data Commissioner. These accredited enti ties could include federal and sub -
federal level government agencies.  
 
Government agencies may have other mandatory reporting requirements to other Government 
agencies, including State and Territory Governments.  In these cases, agencies are responsible 
for ensuring data is provided in the timeframe specified in the agreement made between the 
parties.  
 
Please see  
https://www.pmc.gov.au/sites/default/files/publications/aust_govt_public_data_policy_statem
ent_1.pdf and https://data.gov.au/ for further information . 
 
Question: In particular, Australia is requested to provide the mandatory data sharing 
requirement proposed to be imposed on car manufacturers in relation to service and repair 
information being provided to independent repairers in the same form as it is shared with their 
franchised dealership networks.  
 
The Australian Governmen t passed the Treasury Laws Amendment (Consumer Data Right) Act 
2019 on 1 August 2019, introducing the legal framework for a mandatory data access regime 
in relation to consumer data - the Consumer Data Right (CDR).  
 
The CDR will provide individuals and bus inesses with a right to directly access specified data 
relating to them held by businesses (e.g. credit card transaction data); and to authorise secure 
access to this data by accredited third parties. The CDR also enables public access to product 
reference  data in machine readable form (e.g. the key terms and conditions for all mortgages 
on offer in Australia). The CDR will be rolled out economy -wide on a sector -by-sector basis.  
 
Question: Are such mandatory data sharing requirements in conformity with Aust ralia’s WTO 
commitments?  
 
The CDR regime has been developed in line with Australia’s WTO obligations. The Australian 
Government is developing its motor vehicle service and repair information sharing scheme, as 
well as the data sharing Bill which will enabl e sharing of information between accredited entities, 
in line with Australia’s WTO obligations.  
 
Page – 119, Paragraph –4.90 
 
Background  
 
The RBA serves as the lender of last resort and is responsible for ensuring the stability of the financial 
system. In its role as the as the central bank, it is responsible for mitigating the risk of financial 
shocks that may have systemic consequences, and for responding if a financial crisis does occur. 
The RBA is also mandated to ensure that the payment syst em is safe and sound. A New Payments 
Platform was launched in February 2018. It provides an open access infrastructure for fast payments 
in Australia. It enables households, businesses, and government agencies to make simply addressed 
payments, with near r eal-time fund availability to the recipient, on a 24/7 basis.  
 
Question 80  
80. Australia is requested to provide the details of the New payments Platform launched in 2018. 
Please also clarify whether participation of foreign players is allowed or not.  WT/TPR/M/396/Add.1  
 
- 150 - 
 
  RESPONSE : The New Payments Platform (NPP), launched in February 2018, is a fast retail 
payments system developed by a consortium of 13 financial institutions, including the Reserve 
Bank of Australia. The NPP provides the clearing and settlement infrastructure thro ugh which 
financial institutions can provide their household, business and government customers with the 
ability to make fast, versatile and data -rich payments on a 24/7 basis. Utilising the Fast 
Settlement Service provided by the Reserve Bank, payments th rough the NPP are settled 
between financial institutions in real -time, which enables financial institutions to provide 
immediate funds availability to payment recipients. Access to the NPP is governed by the 
operator of the NPP, NPP Australia Limited (NPPA ). The NPP was designed to facilitate a number 
of different types of access to the central infrastructure to cater for different business models, 
with risk -based access criteria applying to each. The access criteria and the process by which 
NPPA assesses a nd determines applications to participate are set out in the NPP Regulations, 
which are published on NPPA's website. The access criteria do not discriminate between 
domestic and foreign entities. For more information, see: https://nppa.com.au/accessing -the-
platform and nppa.com.au/the -company/governance . 
 
Page – 123, Paragraph –4.106  
 
Background  
 
The main laws governing the insurance sector are the Insurance Act 1973 for general insurance; the 
Life Insurance Act, 1995 for life insurance; and the Private Health Insurance Act 2007 for private 
health insurance.  
 
Question 81  
81. Australia is requested to inform whether insurance portability particularly for medical purposes 
allowed or not. If not, what are the conditions imposed on such insurance portability?  
 
RESPONSE: There is no restriction on private health insurers offering an insurance product 
with portability for medical services. If the medical servic es occur outside of Australia, it would 
be a class of business other than ‘health insurance business’ under the Australian Government’s 
health insurance regime.  
 
Page – 125, Paragraph – 4.121  
 
Background  
 
Telstra, Optus and Vodafone are the main carriers o perating in the mobile phone network, and their 
respective market shares remained largely stable in 2017/18 (Telstra 53.6%, Optus 29.2%, and 
Vodafone 17.2%). According to the authorities, mobile carriers are rolling out advanced 4G 
infrastructure in the 70 0 MHz and 850 MHz spectrum bands, and the 5G mobile network is expected 
to be activated in 2019.  
 
Question 82  
82. Australia is requested to inform the current status of 5G application and the applicable standards 
for adoption of 5G technology.  
 
RESPONSE: Telstra and Optus have launched 5G services in Australia to date. Vodafone has 
announced they will be launching services in 2020. The 5G rollout is in its early stages and 
carriers will continue to roll out 5G services over the coming years. As w ith previous generations 
of mobile technology, the rollout of 5G in Australia will be driven by commercial and competitive 
forces.  
 
The International Mobile Telecommunications -2020 (IMT -2020) is the international technical 
framework supported by the Intern ational Telecommunication Union (ITU) to underpin 5G, 
including broadband networks and customer devices.  
 
Page – 126, Paragraph – 4.123  
 
Background  
The Australian Competition and Consumer Commission (ACCC) has the primary responsibility to 
ensure that indi viduals and businesses comply with Australian competition, fair trading, and WT/TPR/M/396/Add.1  
 
- 151 - 
 
  consumer protection laws. It also promotes fair trade in markets, to benefit consumers, businesses, 
and the community, and regulates national infrastructure services. In 2018, the  ACCC launched a 
public inquiry, examining whether the current regulation of voice and Short Message Service (SMS) 
Mobile Terminating Access Service (MTAS) should be revoked, extended or varied, after it expired 
in June 2019. In 2019, the ACCC announced th at it will extend its regulation of Australia's MTAS for 
voice services for another five years. However, it will not do the same for SMS services.  
 
Question 83  
83. Australia is requested to inform how it regulates unsolicited messages and calls and spam 
messag es. It is also requested to provide details as to how effective are the method adopted.  
 
RESPONSE: The Australian Communications and Media Authority (the ACMA) is the Australian 
Government body responsible for enforcing the rules relating to spam, telemark eting and 
marketing faxes. The Do Not Call Register Act (Cth) and the Spam Act (Cth) provide protection 
to consumers from unwanted marketing communications transmitted via phone calls, faxes and 
messages. Under the Spam Act 2003, commercial electronic mess ages must not be sent without 
consent. Exemptions apply for factual messages and certain messages from registered charities, 
government bodies, political parties and educational institutions. Under the Do Not Call Register 
Act 2006, telemarketing calls and  faxes must not be made to a number on the Do Not Call 
Register, without consent. Exemptions apply for certain calls and faxes from registered 
charities, government bodies, political parties, election candidates, independent members of 
Parliament, and educ ational institutions. Industry Standards made under the 
Telecommunications Act 1997 regulate how and when calls and faxes can be made, such as the 
time of day that calls can be made and the information that must be included on a call. The 
Australian Govern ment concluded a review of the operation of the Spam Act in 2006 and found 
that the Act was operating successfully. The ACMA publishes the outcome of its major 
enforcement cases on its website. There are significant financial penalties for breach of the 
Spam Act.  
 
Page – 130, Paragraph – 4.152  
 
Background  
 
During the review period, the Government continued to provide funds to the national system 
delivering safety benefits for commercial boating, fishing and tourism operations across Australia. 
In addition, in response to the concerns of the domestic commercial vessel industries regarding the 
cumulative impact of costs and charges on these industries, the Government provided AUD 10 million 
in funding for the national system, increasing its total contribution to AUD 65 million over ten years, 
and increasing total funding by all governments to AUD 112.4 million.  
 
Question 84  
84. Australia is requested to inform if these funds support is available only for domestic service 
providers or also to the foreign service providers.  
 
RESPONSE: Transitional funding for the national system for domestic commercial vessel safety 
is government funding for the Australian Maritime Safety Authority to provide some of its 
regulatory services for maritime safety to domestic v essels and seafarers.   Foreign vessels 
operating in Australia are not regulated under this system.  
 
Questions based on Government Report WT/TPR/G/396  
 
Page 1, Para 1.6  
 
Question 85  
85. Could you elaborate on the initiative taken under aid for trade to be consistent with the UN 
Sustainable Development Goals?  
 
RESPONSE: The Sustainable Development Goals (target 8A) call to “increase Aid for Trade 
support for developing countries, particularly LDCs, including through the Enhanced Integrated 
Framework for LDCs ”. Consistent with the SDGs, the Australian Government set a target to 
increase its aid for trade to 20 per cent of the aid budget by 2020. Australia achieved its target WT/TPR/M/396/Add.1  
 
- 152 - 
 
  ahead of schedule in 2016 -17, when aid for trade reached 23.3 per cent (or AU$941 mill ion). 
It is forecast to be 23 per cent, or AU$949 million in 2019 -20.  
 
Through the aid for trade program, Australia is a longstanding donor to the Enhanced Integrated 
Framework for LDCs. Australia is also supporting developing countries and LDCs to undert ake 
trade facilitation reforms in line with the WTO Agreement on Trade Facilitation. We are doing 
this through funding support to the WTO (Trade Facilitation Agreement Facility), World Bank 
(Trade Facilitation Support Program), and the Global Alliance for Trade Facilitation.  
 
Page 7, Para 2.29  
 
Question 86  
86. In this paragraph, the report mentions that Australian government is working with the business 
community to develop a policy agenda to boost Australia’s services exports. In this regard, 
Preliminary consu ltations with the industry have focused on three broad areas:  
 
• Reducing domestic regulatory complexity;  
• Addressing barriers in international markets; and  
• Helping services firms as they internationalize.  
Kindly elaborate on the various steps undertaken in order to focus on the three broad areas 
mentioned above.  
 
RESPONSE: In 2019, the Australian Government commenced an initiative working in close 
collaboration with industry across the services sector to identify and address barriers to service s 
exports and competitiveness. The services industry presented government with Industry's 
Recommendations - An Action Plan to Boost Australia's Services Exports in August 2019 and 
the Government released the Government Response to Industry's Action Plan to  Boost 
Australian Services Exports in November 2019.  
 
This is an ongoing initiative of collaboration with industry and is expected to continue through 
2020 and beyond. Greater details of industry recommendations and the Australian 
Government’s response is available from the following website: 
https://dfat.gov.au/trade/services -and-digital -trade/Pages/services -export -action -plan.aspx . 
 
General Question s 
 
Question 87  
87. It is understood that Australia has also introduced GST on intangible imports of goods and 
services (mainly online) from non -Australian suppliers. Australia is requested to clarify whether 
such taxation of intangible imports (digital product s and services) is done on a discriminatory 
or a non -discriminatory basis.  
 
RESPONSE: Digital products covered by GST include streaming or downloading of movies, 
music, apps, games and e -books as well as other services, such as consultancy and professional  
services. This 2017 measure ensures non -Australian suppliers are treated the same as domestic 
suppliers, and is therefore not discriminatory.  
 
Question 88  
88. The Australian government has abolished the subclass 457 visa category for skilled overseas 
workers.  In its place it has introduced a new Temporary Skill Shortage (TSS) visa category 
(subclass 482) with effect from March 2018.  
a. Has Australia’s work visa norms been made more restrictive in the recent past? Have 
the qualifying criteria for the TSS become  more stringent? Please provide details.  
b. How frequently does the skilled occupation list changes? How many times has it changed 
in the last two decades? How does it affect the GATS commitments and other international 
agreements of Australia?  
c. Details are sought on the reduction of job categories in the occupation list in the new 
visa policy of Australia compared to the earlier one.  
d. How are the qualification norms for the skilled occupation list determined? Are they 
aligned with international standar ds? 
e. Whether the skill shortage categories are applicable for the entire country or are there 
regional restrictions or quotas within that?  WT/TPR/M/396/Add.1  
 
- 153 - 
 
  f.  Are there region -specific restrictions on movement of service providers or the visa 
granted under different cat egories valid for the entire country?  
g. How are the qualification requirements for the job descriptions determined and has 
Australia done equivalence of the competency/qualification requirements with any 
international body or any other country?  
 
RESPONSE:  a. Has Australia’s work visa norms been made more restrictive in the recent past? 
Have the qualifying criteria for the TSS become more stringent? Please provide details.  
 
The Government is currently taking steps to transform Australia’s visa system to make it easier 
to understand, easier to navigate, and better aligned with Australia’s long -term economic and 
social priorities. Over the last two decades, successive governments have recalibrated the 
Migration Program to address the unique workforce challe nges that Australia faces. Policy 
settings aim to ensure skilled migration to Australia complements domestic employment and 
training initiatives to meet skills needs.  
 
Whilst serving a similar function to its predecessor, the TSS visa does bear some notabl e 
differences to the subclass 457 visa. The subclass 457 visa was built on the premise that it does 
not undermine job opportunities for Australians, this commitment has been further bolstered 
under the TSS visa.  
 
Strengthened integrity settings under the TSS visa work to protect overseas workers in relation 
to English language skills and minimum salary requirements ensure that skilled work visa 
holders are less vulnerable to exploitation and can fully participate in the workforce and 
community. The TSS ref orms have resulted in more professionally skilled workers with higher 
salaries using the program compared to those under the subclass 457 program.  
 
Information on the Temporary Skill Shortage (TSS) visa, including sponsorship and other 
eligibility criteria , is on the Department of Home Affairs website at : 
https://immi.homeaffairs.gov.au/visas/getting -a-visa/visa -listing/temporary -skill-shortage -
482. This website also includes information on recent up dates to the skilled migration program 
at: https://immi.homeaffairs.gov.au/what -we-do/skilled -migration -program/recent -changes . 
 
b. How many times has it ch anged in the last two decades? How does it affect the GATS 
commitments and other international agreements of Australia?  
 
Australia meets its international trade obligations relating to the movement of natural persons, 
including those under the GATS within the structures of its existing visa programs. Visa settings 
are consistent with Australia’s international trade obligations, which include commitments for 
certain categories of entrant and flexibility regarding visa duration and not imposing Labour 
Market Testing.  
 
Any changes to visa settings or programs will be implemented in a manner consistent with 
Australia’s international trade commitments.  
 
Information on changes to the employer -sponsored visa programs is on the Department of 
Home Affairs website at  https://immi.homeaffairs.gov.au/what -we-do/skilled -migration -
program/recent -changes . 
 
c. Details are sought on the reduction of job categories in the occup ation list in the new visa 
policy of Australia compared to the earlier one.  
 
The occupation lists are for the purpose of identifying occupations in Australia where there is a 
genuine skills needs and where migration is an appropriate solution.  Certain occ upations 
deemed by industry as having a skills shortage may not be appropriate for mainstream 
temporary or permanent skilled migration.  
 
Occupation lists are regularly reviewed by the Department of Education, Skills and Employment 
and are updated to reflec t labour market requirements, stakeholder feedback, and employment 
trends across the economy. The purpose of these reviews is to ensure the skilled migration lists 
reflect genuine skills needs and enable businesses to temporarily access the skills they nee d to 
grow if skilled Australian workers are not available.  WT/TPR/M/396/Add.1  
 
- 154 - 
 
  The skilled migration occupation lists currently include over 500 skilled occupations (compared 
to 430 occupations when the lists were first introduced in April 2017).  
 
d. How are the qualification  norms for the skilled occupation list determined? Are they aligned 
with international standards?  
 
The skilled migration occupation lists are referenced to occupations listed in the Australian and 
New Zealand Standard Classification of Occupations (ANZSCO) , details at : 
https://www.abs.gov.au/ausstats/abs@.nsf/mf/1220.0 ). 
ANZSCO is a statistical classification of over a thousand occupations which are assigned a skill 
level based largely on qu alifications described in the Australian Qualifications Framework (AQF) 
but using an “inverted” numbering system. ANZSCO Skill Level 1 is the highest (usually 
requiring a degree i.e. an AQF level 7 or higher) and Skill Level 5 is the lowest (requiring an 
AQF Certificate 1 or a short period of on -the-job training). New Zealand uses the New Zealand 
Qualifications Framework (NZQF).  
 
While ANZSCO is, to a large extent, conceptually aligned with the International Standard 
Classification of Occupations (ISCO) - as both classifications use skill level and skill 
specialisation as foundational principles - there are important differences. For example, ANZSCO 
is more detailed than ISCO (ISCO does not define the occupation level and has only four skill 
levels ). 
 
ANZSCO skill levels (explained further below) are not based on international standards, partly 
because education requirements differ between countries but chiefly because the main 
statistical requirement was to reflect the Australian and New Zealand co ntext.  
 
ANZSCO provides information on the skill level of jobs, qualifications and/or experience needed 
to work in the occupations. In ANZSCO, skill level is defined as a function of the range and 
complexity of the set of tasks performed in a particular oc cupation.  
Skill level is measured by:  
• The level or amount of formal education and training;  
• The amount of previous experience in a related occupation; and  
• The amount of on -the-job training required to competently perform the set of tasks 
required for that occupation.  
 
ANZSCO does not measure the skill level of an individual. Rather, it refers to the level of skill 
that is typically required to competently perform the tasks of a particular occupation. For 
example, occupations at Skill Level 1 have a level o f skill commensurate with a bachelor degree 
or higher qualification. However, in some instances, at least five years of relevant experience 
may substitute for the formal qualification. In some other instances, relevant experience and/or 
on-the-job training  may be required in addition to the formal qualification. Similarly, for lower 
skill levels, work experience can sometimes substitute for formal qualifications or additional on -
the-job training may be required.  
 
e. Whether the skill shortage categories are  applicable for the entire country or are there 
regional restrictions or quotas within that?  
 
The Australian Government recognises the need to manage population growth and to support 
the growth of regional economies through migration.  There are a range of  visa options, 
including skilled regional provisional visas, the Temporary Skill Shortage visa, Working Holiday 
Maker, the Seasonal Worker Programme and the Pacific Labour Scheme, which provide skilled, 
semi-skilled and seasonal labour where appropriately qualified Australian workers are 
unavailable.  Australia’s employer -sponsored visa programs are uncapped and demand -driven 
based on the needs of employers.  
 
The TSS visa is an uncapped employer demand driven temporary migration program. 
Occupations on the  Short -term Skilled Occupation List (STSOL) or the Medium and Long -term 
Strategic Skills List (MLTSSL) are available throughout Australia. Occupations on the Regional 
Occupation List (ROL) are required to be located in regional areas.  
 
The Skilled Employe r Sponsored Regional (Provisional) (subclass 494) visa enables regional 
employers to address identified skill shortages through sponsoring skilled overseas workers WT/TPR/M/396/Add.1  
 
- 155 - 
 
  where an appropriately skilled Australian worker cannot be found. Applicants for this visa c an 
only be sponsored for occupations included on a skilled occupations list. A key feature of the 
new visas is a requirement for visa holders to live and work in designated regional areas of 
Australia for three years before being eligible for permanent res idence. This encourages visa 
holders to remain in regional Australia, build ties to a particular location through workforce 
participation or community involvement, which in turn will support the local communities and 
enhance population growth and economies  of regional Australia.  
 
f. Are there region -specific restrictions on movement of service providers or the visa granted 
under different categories valid for the entire country?  
 
Visas granted for occupations on the Short -term Skilled Occupation List (STSO L) or the Medium 
and Long -term Strategic Skills List (MLTSSL) are available throughout Australia. Visas granted 
for occupations on the Regional Occupation List (ROL) are required to be located in regional 
areas.  
 
The definition of ‘regional Australia’ for  skilled migration purposes is comprised of the following 
three categories:  
• Category 1 – ‘Major Cities’ of Sydney, Melbourne and Brisbane do not receive any 
regional incentives  
• Category 2 – ‘Cities and Major Regional Centres’ of Perth, Adelaide, the Gold Coast. 
The Sunshine Coast, Canberra, Newcastle/Lake Macquarie, Wollongong/Illawarra, 
Geelong and Hobart have access to:  
• 25,000 regional places;  
• Priority processing of regional v isas; 
• Regional Occupation List;  
• International graduates with a bachelor or higher qualification from a regional 
campus of a registered institution will be eligible to access an additional year 
in Australia on a post -study work visa.  
• Category 3 – ‘Regional  Centres and Other Regional Areas’ also have access to the 
25,000 regional places, priority processing of regional visas, and the Regional 
Occupations List.  Additional incentives include international graduates with a bachelor 
or higher qualification from  a regional campus of a registered institution will be eligible 
to access an additional two years in Australia on a post -study work visa.  
 
Refinement of the definition of ‘regional Australia for skilled migration purposes, which is a key 
pillar of the Gove rnment’s Population Plan, adds to incentives for skilled migrants to settle in 
Australia’s regions, and at the same time, helps ease growing infrastructure and congestion 
pressures in Australia’s major cities.  
 
Holders of the Skilled Employer Sponsored Re gional (Provisional) (subclass 494) visa are 
subject to regional compliance conditions that require them to live, work and study in regional 
Australia (including family members) for the duration of their visa.  Compliance of visa 
conditions will be assesse d when skilled regional provisional visa holders apply for permanent 
residence – those who have breached visa conditions will not be granted permanent residence.  
g. How are the qualification requirements for the job descriptions determined and has Australi a 
done equivalence of the competency/qualification requirements with any international body or 
any other country?  
 
The skilled migration occupation lists are referenced to occupations listed in the Australian and 
New Zealand Standard Classification of Occu pations (ANZSCO, details at : 
https://www.abs.gov.au/ausstats/abs@.nsf/mf/1220.0 ).  
 
ANZSCO is a statistical classification of over a thousand occupations which are assigned a skill 
level ba sed largely on qualifications described in the Australian Qualifications Framework (AQF) 
but using an “inverted” numbering system. ANZSCO Skill Level 1 is the highest (usually 
requiring a degree i.e. an AQF level 7 or higher) and Skill Level 5 is the lowes t (requiring an 
AQF Certificate 1 or a short period of on -the-job training). New Zealand uses the New Zealand 
Qualifications Framework (NZQF).  
 
There is no formal correspondence or equivalence between competency/qualification 
requirements in ANZSCO and tho se of other countries, even though there are many similarities. WT/TPR/M/396/Add.1  
 
- 156 - 
 
  This is partly due to different formal educational requirements between countries and, 
sometimes, very different labour markets.  
 
ANZSCO provides information on the skill level of jobs, qualif ications and/or experience needed 
to work in the occupations. In ANZSCO, skill level is defined as a function of the range and 
complexity of the set of tasks performed in a particular occupation.  
Skill level is measured by:  
• The level or amount of formal e ducation and training  
• The amount of previous experience in a related occupation, and  
• The amount of on -the-job training required to competently perform the set of tasks 
required for that occupation.  
 
Formal education and training refers to the level and amount of education and training required 
for competent performance of the tasks required in an occupation. It is measured in terms of 
educational qualifications as set out in the Australian Qualifications Framework (AQF) and the 
New Zealand Qualifications  Framework (NZQF). Previous experience refers to the time spent 
gaining work experience in related occupations or activities required for the competent 
performance of the tasks in an occupation. It is measured in months or years. On -the-job 
training refers  to the amount of training required after commencing work in an occupation for 
competent performance of the tasks in that occupation. It is measured in months or years, and 
may be undertaken at the same time as formal training.  
 
ANZSCO does not measure the  skill level of an individual. Rather, it refers to the level of skill 
that is typically required to competently perform the tasks of a particular occupation. For 
example, occupations at Skill Level 1 have a level of skill commensurate with a bachelor degr ee 
or higher qualification. However, in some instances, at least five years of relevant experience 
may substitute for the formal qualification. In some other instances, relevant experience and/or 
on-the-job training may be required in addition to the forma l qualification.  
 
Skills assessment settings for visa programs balance migration integrity concerns with 
streamlined processing and stakeholder concerns on the burden of undertaking a skills 
assessment. Obtaining a suitable skills assessment is mandatory f or some visa subclasses (and 
streams) and may be requested for others. Skills assessments are issued by relevant skills 
assessing authorities that check that an individual’s skills meet the standards they set to work 
in a relevant occupation. Most occupati ons on the lists have their own skills assessing authority. 
The Department of Home Affairs will only accept a skills assessment issued by the relevant 
assessing authority.  
 
The website of the Department of Home Affairs provides details on, and links to, t he Australian 
assessing authorities whose respective websites provide information on the skill assessment 
and qualification standards ( https: //immi.homeaffairs.gov.au/visas/working -in-australia/skills -
assessment/assessing -authorities ). 
  WT/TPR/M/396/Add.1  
 
- 157 - 
 
  Indonesia  
Report by the Secretariat WT/TPR/S/396  
 
Page 38 paragraph 3.3, Page 39 paragraph 3.7  
 
Question 1  
1. Australia amended its Customs Act year 1901 through Australian Trusted Trader (ATT) 
Programme in 2015 under Customs Amendment Act (2015). Could Australia elaborate the 
changes of the Customs Act, particularly with regard to the businesses access on trade 
facilitation benefits?  
 
RESPONSE: The Customs  (Australian Trusted Trader Programme) Rule 2015 amended the 
Customs Act 1901 to establish the ATT.  The ATT introduced a differentiated trust -based 
regulatory framework at the border for those entities that meet or exceed international supply 
chain securi ty and trade compliance standards.  
 
Page 56 paragraph 3.51  
 
Questions 2 -3 
2. The Secretariat Report notes that under Customs Amendment (Anti -dumping Measures) Act 
(No. 1), year 2015, “the Minister authorized to set a fee for the handling of such reviews. 
However, Parliament subsequently disallowed the legislative instrument prescribing the fee, and 
no fee has been charged for applications to the ADRP since 2 March 2016”.  
 
In light of this statement, could Australia provide more information on the handling of reviews 
mechanism that is now applied?  
 
RESPONSE: Appeals to the Anti -Dumping Review Panel do not require the payment of an 
application fee.  
 
3. Secretariat Report paragraph 3.51 also stated “The Customs Amendment (Anti -Dumping 
Measures) Act, 2017  addressed attempts by exporters to have the rate of anti -dumping duty 
reduced by exporting low volumes of goods, or not exporting, in the period examined for the 
purpose of the review”. Could Australia provide a more detail explanation regarding the 
imple mentation of the Act?  
 
RESPONSE: WTO document G/ADP/N/1/AUS/2/Suppl.17, G/SCM/N/1/AUS/2/Suppl.15, 
25 January 2018 describes the legislative changes and operation of the Customs Amendment 
(Anti-Dumping Measures) Act 2017 in relation to ‘Low Volume Exporters ’. The amendments 
provide a range of methods to determine appropriate export prices where there are no exports, 
or a low volume of exports, during the period examined for a review of measures. It enables 
the Minister to consider alternative information to determine the export price and to establish 
an export price that is reasonably reflective of the export price that would have existed had the 
exporter made exports.  
 
Page 73 paragraph 3.112  
3.112.  Australia introduced a new country of origin labelling sys tem on 1 July 2016 that became 
mandatory for "priority food" from 1 July 2018. The new system is enforced by the Australian 
Competition and Consumer Commission. The labelling requirements include a country of origin 
statement and a prescribed logo/mark and  bar chart. Food with all ingredients grown, produced or 
made in Australia carry a prescribed kangaroo logo. For imported food or food ingredients, the 
marking should include a text and bar chart indicating the proportion of Australian ingredients by 
ingoing weight.  
 
Questions 4 -6 
4. What is the major purpose of differentiating the Australian products and imported products on 
the labelling?  
 
RESPONSE: The purpose of the Country of Origin Food (CoOL) Labelling Information Standard 
2016 is to provide clearer, mo re consistent, more informative and easier to find country of WT/TPR/M/396/Add.1  
 
- 158 - 
 
  origin labels for food —so that consumers can make more informed choices about the food they 
buy, in line with their personal preferences.  
 
5. Please clarify the purpose of marking a text and bar ch art for the imported food packaging, 
which have to include the proportion of Australian ingredients.  
 
RESPONSE: Food that is not grown, produced, made or packed in Australia is classified as 
imported food. Under the Standard, imported priority food must, at a minimum, carry a country 
of origin text statement (e.g. ‘Made in China’ or ‘Product of Brazil’) in a clearly  defined box.  
 
As an alternative, if a food imported into Australia contains some Australian ingredients, the 
food may carry a two -component standard mark. The mandatory explanatory text must identify 
the food’s country of origin and state the percentage of Australian ingredients in the food. The 
explanatory text on the label may be modified if:  
 
• between 1 and 9 per cent of ingredients are Australian —the explanatory text may 
state that the food was grown, produced, made or packed ‘from less than  10 per cent 
Australian ingredients’  
• the business wishes to highlight the origin of a particular ingredient.  
 
Australia's country of origin labelling requirements are intended to enable consumers to make 
purchasing decisions in line with their personal pre ferences.  
 
6. In which regulation these standards stated? And has been notified on which WTO document?  
 
RESPONSE: Australia's Country of Origin Labelling (CoOL) requirements are set out in the 
Country of Origin Food Labelling Information Standard 2016:  
https://www.legislation.gov.au/Details/F2017C00920 . 
 
The notification was made in document: G/TBT/N/AUS/100.  
 
Page 148 Table A3.1  
 
Question 7  
7. The table indicates an increase in the number of subsidies on some federal programmes, please 
provide explanation about the purpose and coverage of those programmes such as grants for 
Advanced Manufacturing Growth, etc.  
 
RESPONSE: Some further information on the programmes where subsidies have increased 
from 2017/18 to 2018/19 are included below.  
 
The AU$100 million Advanced Manufacturing Fund to support business investment in new 
technologies and workforce upskilling, and collaborative industry -research infrastructure such 
as the AU$40 million Innovation Manufacturing CRC and the Advanced Manufacturing Growth 
Centre.  
 
The Entrep reneurs programme is helping Australian businesses to improve their growth 
capabilities and networks, engage with researchers, foster innovation and encourage 
commerciali sation of novel products, processes or services.  
 
The Biomedical Translation Fund (BTF) provides companies with venture capital through 
licensed private sector fund managers. It helps to develop biomedical discoveries into tangible 
products, services and o utcomes.  
 
The Gas Acceleration Program aims to speed up the responsible development of onshore natural 
gas. Through matched funding, the program supports projects to secure new volumes of gas 
for domestic customers.  
 
Please refer to the grant guidelines fo r further information on the forms of assistance offered 
through these programs:  
 WT/TPR/M/396/Add.1  
 
- 159 - 
 
  • https://www.business.gov.au/Grants -and-Programs/Advanced -Manufacturing -Growth -
Fund  
• https://www.business.gov.au/Grants -and-Programs/Entrepreneurs -Programme   
• https://www.business.gov.au/Grants -and-Programs/Biomedical -Translation -Fund 
• https://www.business.gov.au/Grants -and-Programs/Gas -Acceleration -Program  
 
Repor t by Australia WT/TPR/G/396  
 
Page 21 paragraph 4.3  
 
Question 8  
8. It is noted that the Australian Government is focused on assisting and investing digital economy. 
Please provide description about these programmes in brief. Are there other incentives given 
by the Government beside for research and development of private sector innovation?  
 
RESPONSE: In December 2018, the Australian Government released its digital economy 
strategy Australia’s Tech Future ( https://www.industry.gov.au/data -and-
publications/australias -tech-future ). The Strategy outlines the role of Government in seizing the 
benefits of digital transformation . 
 
In November 2019, the Australia Government also released an artificial intelligence (AI) 
Technology Roadmap ( https://data61.csiro.au/en/Our -Research/Our -Work/AI -Roadmap ) and 
AI Ethics Principles ( https://www.industry.gov.au/data -and-publications/building -australias -
artificial -intelligence -capability/ai -ethics -framework ) to provide guidance and pathways to 
ensure Australia captures the potential of AI, and the development and adoption of AI is 
responsible and ethical. The Roadmap identifies areas where Australia is well positioned to use 
AI including for better health, aged care and disability service; for better towns, cities and 
infrastructure; and for better natural resource management. Australia’s AI Ethics Principles 
draw on the OECD’s Principles on AI, which aim to ensure countries are re sponsible stewards 
of AI. Not long after the OECD’s principles were adopted in May 2019, the G20 adopted human -
centred AI principles that draw from those of the OECD.  
 
In February 2020, the Australian Government released a National Blockchain roadmap 
(https://www.industry.gov.au/data -and-publications/national -blockchain -roadmap ) to 
showcase key sectoral use cases for blockchain technology, and identify opportunitie s around 
regulation and standards, skills, innovation and capacity building, and international 
collaboration. Australia is active in the international blockchain environment, with Standards 
Australia chairing the International Organization for Standardizat ion working group responsible 
for international development of blockchain standards.  
 
Secretariat Report Section 3.1.7 Anti -dumping, countervailing, and safeguard measures; 
para 3.50  
 
3.50. Although the principal features of Australia's anti -dumping and co untervailing system remain 
unchanged since 2015, certain legislative changes took place during the period under review. The 
Customs Amendment (Anti -dumping Measures) Act (No. 1), 2015, passed by Parliament on 13 May 
2015, introduced the possibility to subm it dumping and countervailing applications by email. Other 
changes included stricter enforcement of deadlines for submissions to conform with the standard 
investigation/inquiry period of 155 days, "cumulative assessment" of injury when two or more 
countrie s are subject to an investigation, confirmation that third -country sales do not need to be 
considered before constructing normal values, and amendments relevant to accelerated reviews. 
(...) 
 
Question 9  
9. Please provide detail explanation regarding the “acce lerated reviews” procedure, as well as 
“cumulative assessment of injury”, that stated on the Customs Amendment (Anti -dumping 
Measures) Act (No. 1), 2015.  
 
RESPONSE: The amendment to accelerated review provisions provides for exporters who did 
not export re levant goods during the investigation period, but who can show that they have 
since exported or will export, to access accelerated reviews. This aligns with the purpose of an 
accelerated review, which is to enable those who did not export during the invest igation period WT/TPR/M/396/Add.1  
 
- 160 - 
 
  and who are not related to the exporters or foreign producers subject to measures to access an 
individual dumping margin. The amendments give effect to, and are consistent with, Article 9.5 
of the Agreement on Implementation of Article VI of  the GATT 1994 (the Anti -Dumping 
Agreement).  
 
The amendment to provisions regarding the consideration of cumulative assessment of injury 
or hindrance in the termination of an investigation ensures consistency between the information 
that is allowed to be c onsidered by the Commissioner in terminating an investigation and the 
Minister in imposing measures. Amending the legislation clarifies that the Commissioner can 
consider this information in deliberating termination decisions. The amendments concerning 
cumulative assessment of injury or hindrance in the termination of an investigation give effect 
to and are consistent with both the provisions of Article 3.3 and 5.8 of the Anti -Dumping 
Agreement as well as the provisions of Article 11.9 and 15.3 of the Agree ment on Subsidies and 
Countervailing Measures.  
 
WTO documents G/ADP/N/1/AUS/2/Suppl.15 and G/SCM/N/1/AUS/2/Suppl.13 describe the 
legislative changes and operation of the Customs Amendment (Anti -Dumping Measures) Act  
(No. 1) 2015.  The notifications can be found at – 
https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S009 -
DP.aspx?language=E&CatalogueIdList=227130,226772,225248,135344,134488,131596,1308
13,126806,123316,122449&CurrentCatalogueIdIndex=4&FullTextHash=&HasEnglishRecord=
True& HasFrenchRecord=True&HasSpanishRecord=True . 
 
Secretariat Report section 3.3.2.1 Standards and technical regulations; para 3.93  
 
3.93. The ACCC annually conducts safety audits on products where there are indications of non -
compliance with specific regulations. The audits include a national series of surveys to determine 
the level of compliance in the market (including online suppliers). Audits are also conducted on 
unsafe goods that are not subject to any specific mandatory requirement. Between July  2019 and 
June 2020, 20 products were prioritized to undergo surveillance and testing. The ACCC carries out 
the audits and, if a non -compliant product is identified, suppliers are required to remove these 
products from sale, and conduct a voluntary recall.  In serious instances, the ACCC may take 
immediate enforcement action by issuing Infringement Notices or court action with penalties of up 
to AUD 1.1 million. (…)  
 
Questions 10 -11 
10. Please provide information on the classification and procedure of safety aud its conducted by 
ACCC.  
 
RESPONSE: The Australian Competition and Consumer Commission (ACCC) has a dedicated 
team of surveillance officers who conduct safety audits, primarily in relation to over 60 products 
that are subject to national mandatory safety sta ndards and bans. The responsible 
Commonwealth Minister under the Australian Consumer Law (ACL) makes the regulations for 
these consumer goods.  
 
Safety audits typically involve assessment of products sold through physical and online stores. 
For products cov ered by mandatory safety standards, the assessment will be whether the 
product complies with the specific requirements of the relevant standard, which can include 
design, performance and labelling requirements. For products potentially covered by a ban, 
surveillance officers will assess whether the product has the characteristics outlined in the 
‘particulars of the goods’ in the regulatory instrument.  
 
The ACCC may purchase products as part of a safety audit for testing by a National Association 
of Testing  Authorities (NATA) accredited testing agency/laboratory. The ACCC may also request 
information from suppliers, including test reports and product information, to inform the overall 
assessment.  
 
The ACCC publishes high -level information about the results o f ACCC audits in the ‘ Surveillance 
and audits’  section of the Product Safety Australia website. The ACCC also publishes financial 
year aggregat e results in the ACCC and AER Annual Report . 
 
11. Please give more detail information regarding:  WT/TPR/M/396/Add.1  
 
- 161 - 
 
  a. Procedures of sanctions given to suppliers that are not comply with the Australian standards.  
b. The basis for calculating the amount of penalty to supplier.  
c. Mechanism to inform suppliers, importers and exporters regarding sanctions.  
RESPONSE: Section 106 of the Australian Consumer Law (ACL) prohibits suppliers from 
supplying consumer goods that do not comply with mandatory safety standards. Section 118 of 
the ACL prohibits suppliers from supplying consumer goods covered by bans.  
 
When the Australian Competition and Consumer Commission (ACCC) finds that  a supplier is 
supplying consumer goods or product related services that breach a mandatory standard or are 
banned, our priority is to ensure that the hazardous goods or product related services are 
removed from the marketplace.  
 
In the majority of matters , suppliers initiate voluntary recalls when informed by the ACCC that 
their products do not comply with mandatory safety standards or are banned. Section 128 of the 
ACL outlines the notification requirements for a voluntary recall of consumer goods. Suppli ers 
must notify the responsible Minister within two days of taking voluntarily action to recall 
consumer goods.  
 
An assessment will then be made of what compliance and enforcement action may be appropriate 
in the circumstances. How the ACCC responds and wh at sort of action it takes depends on a 
range of factors including:  
• the seriousness of the safety hazard – how much damage it has caused or is likely to 
cause;  
• the volume of goods supplied;  
• the blatancy of the breach;  
• the supplier’s past conduct;  
• the exten t to which the supplier cooperates.  
 
Infringement notices  
The ACCC can issue an infringement notice if it has reasonable grounds to believe a person or a 
business has contravened certain consumer protection laws. The payment of a penalty specified 
in an in fringement notice is not an admission of a contravention of the ACL.  
 
The penalty amount in each infringement notice will vary, depending on the alleged 
contravention, but in most cases is fixed at:  
• AU$12,600 for a corporation (or AU$126,000 for a listed c orporation) and  
• AU$2,520 for an individual for each alleged contravention.  
 
The ACCC will usually issue a media release to inform the public when an infringement notice 
has been paid. For example: https: //www.productsafety.gov.au/news/big -red-jacks-pays-
penalty -for-alleged -breach -of-mandatory -safety -standard .  
 
Court proceedings  
The ACCC can also initiate court proceedings against suppliers for non -compliance with 
mandatory standards and bans. If the Cour t rules that a supplier has breached the ACL the below 
penalties apply.  
 
Standards  
A supplier may be found guilty of a criminal offence if they fail to comply with a mandatory safety 
or information standard. The maximum fine for individuals is AU$500,000, whereas  
for a body corporate, it is the greater of:  
• AU$10,000,000;  
• three times the value of the benefit received; or  
• 10 per cent of annual turnover in the preceding 12 months, if a court cannot 
determine the benefit obtained from the offence.  
 
Civil penal ties for the same amounts also apply.  
 WT/TPR/M/396/Add.1  
 
- 162 - 
 
  Bans  
A person who supplies a product or product related service which is the subject of a ban may be 
found guilty of a criminal offence. The maximum fine for individuals is AU$500,000, whereas  
for a body corporate, it is the greater of:  
• AU$10,000,000;  
• three ti mes the value of the benefit received; or  
• 10 per cent of annual turnover in the preceding 12 months, if a court cannot 
determine the benefit obtained from the offence.  
 
Civil penalties of the same amounts also apply.  
 
The ACCC will usually issue a media re lease to inform the public of the result of court action. For 
example: https://www.productsafety.gov.au /news/court -orders -penalties -of-500000 -for-online 
-retailer -ozsale -s-non-compliant -childrens -nightwear .  
 
Secretariat Report section 3.3.3 Sanitary and Phytosanitary Requirements; para . 3.102  
3.102.  (…) As at November 2019, 117 legal instruments related to biosecurity had been issued, in 
addition to the Act itself and the two basic regulations (the Biosecurity Regulations, 2016 and the 
Biosecurity (Human Health) Regulations, 2016). Most of these legal instruments were 
determinations of  first point of entry, i.e. goods that may, or may not, enter a specific location in 
Australia.  
 
Questions 12 -14 
12. Please provide in general the change of requirements in the new legal instruments related to 
biosecurity mentioned on the para 3.102 Secretaria t Report, compared with the previous 
regulations.  
 
RESPONSE: The Biosecurity Act 2015  provides the primary legislative means and modern 
regulatory framework for the Australian Government to manage the risk of pests and diseases 
entering Australian territor y and causing harm to animal, plant and human health, the 
environment and the economy. The Act also allows for Australia to manage biosecurity risks in 
a manner that is consistent with Australia’s international obligations.  
 
The Director of Biosecurity or the Director of Human Biosecurity to make legislative instruments 
within the modern regulatory framework established by the Act. These instruments support the 
efficient and effective risk assessment systems in place by Australia to prevent pests and 
diseas es from crossing Australia’s border. For example, these instruments include the 
Biosecurity (Prohibited and Conditionally Non -Prohibited) Determination 2016, which provides 
specified classes of goods that must not be bought or imported Australia unless spe cified 
conditions are complied with.  
 
The regulatory framework established by the Act enables flexibility to respond to changing and 
evolving biosecurity challenges. Australia will continue to update trading partners as required 
with Australia’s internatio nal obligations.  
 
13. As stated on para 3.102: “Most of these legal instruments were determinations of first point of 
entry, i.e. goods that may, or may not, enter a specific location in Australia.” What is it mean 
by “first point of entry”? what are the crite rias and procedures to determine a location as first 
point of entry?  
 
RESPONSE: The Biosecurity Act 2015  requires that, subject to certain specified exceptions, all 
aircraft and vessels must arrive into Australia at a place determined by the Director of 
Biosecurity or Human Biosecurity (the Director) as a first point of entry.  
 
The purpose of determining a l anding place or port as a first point of entry is to ensure that 
overseas aircraft, vessels and any goods on board enter Australia at a designated place that 
has the appropriate facilities and operations to effectively assess and manage biosecurity risk. 
Overseas aircraft and goods may pose an unacceptable level of biosecurity risk that, if not 
assessed and managed appropriately, may result in foreign pests and diseases establishing or 
spreading and negatively impacting upon Australia’s human, plant and ani mal health, the 
environment and the economy.  
 WT/TPR/M/396/Add.1  
 
- 163 - 
 
  Section 18 of the  Biosecurity Act 2015 defines the meaning of a first point of entry. The Act can 
be found on Australia’s Federal Register of Legislation at: 
https://www.legislation.gov.au/Details/C2019C00097 . 
 
Subsection 18(3) of the Act defines a first point of entry for goods as:  
 
(3)  A first point of entry  for goods that are subject to biosecurity control, or exposed 
goods in relation to which an exposed goods order is in force, is:  
                    (a)  a landing place that is determined, under paragraph  223(1)(b), to be a first 
point of entry for those goods or a class of goods that includes those goods; 
or 
                    (b)  a port that  is determined, under paragraph  229(1)(b), to be a first point of 
entry for those goods or a class of goods that includes those goods.  
 
Before a port can be determined as a first point of entry, the Department must first assess its 
general eligibility base d on the biosecurity risks posed by the port’s operations.  
 
Once the Department has determined that the risks can be acceptably managed, all operators 
facilitating international arrivals at the port must be assessed to ensure they comply with 
regulatory standards. Ports wishing to gain determination as a First Poin t of Entry should email 
the Department of Agriculture, Water and the Environment at: 
biosecurityfirstpoints@agriculture.gov.au .  
 
14. Please explain further on the policy regarding the imported g oods from countries’ that have a 
high-risk disease i.e. corona virus, ebola virus, salmonella, swine fever, avian influenza.  
 
RESPONSE: Australia has a favourable biosecurity status and is free from many pests and 
diseases that are present in other countri es. To maintain our favourable animal health status, 
products are only permitted entry to Australia under conditions specified to manage the 
biosecurity risks assessed to be associated with the trade. Australia’s import policies for animals, 
their genetic material and other animal products are based on science -based risk analyses. 
These risk analyses consider the biosecurity risk associated with the importation of animals and 
animal products in accordance with Australia’s international obligations. Informat ion on 
Australia’s appropriate level of protection and the process for conducting a biosecurity risk 
analysis can be found here - https://www.agriculture.gov.au/biosecurity/risk -analy sis. 
 
General Questions  
 
Question 15  
15. Follow -up the 22nd meeting of the Australia -Indonesia WGAFFC Crops and Plant Products 
Taskforce that was held in Lampung, Indonesia on 10 July 2019, could you please give any 
information about the possibility of de-crowned pineapples’ market access?  
 
RESPONSE: Australia is progressing Indonesia’s existing plant market access priorities through 
biosecurity support activities on phytosanitary treatments. Noting the number of existing market 
access issues for Indonesian horticulture exports to Australia, Australia is actively seeking to 
resolve these matters for Indonesia. Therefore, commencement of a new market access request 
for pineapples is not feasible at this time.  
 
A risk analysis for decrowned pineapple s from Chinese Taipei has recently been completed by 
Australia with import conditions agreed to now facilitate the import to Australia. For Indonesia, 
a risk analysis would also need to be completed for pineapples before market access can be 
achieved.  Aus tralia currently has 11 plant risk analyses being progressed. Current and finalised 
risk analyses can be found on the Department of Agriculture, Water and the Environment website 
at: https://www.agriculture.gov.au/biosecurity/risk -analysis . 
 
Question 16  
16. The Australian Government through the Australian Anti -Dumping Commission (AADC) imposed 
an anti -dumping measure on import of power transformer from Indonesia. The AADC has 
extended the period of imposing the 28.3% anti -dumping duty on the mentioned product.  
 WT/TPR/M/396/Add.1  
 
- 164 - 
 
  In the original case, AADC conducted investigation only for 2 HS code while on the sunset review 
the product coverage are expanded to 6 HS code, including distribution transformer. M eaning, 
all size of transformer imported from Indonesia will be imposed with anti -dumping duty.  
 
Indonesia has submitted evidences to proof that there is no dumping and injury on the Australia 
sides. However, there is no further and clear explanation from the AADC until today pertaining 
this matter.  
 
In this regard, Indonesia request that the Australian Government removes the anti -dumping 
duty on import of power transformer from Indonesia.  
 
RESPONSE: Following a continuation inquiry conducted by the Anti -Dumping Commission in 
accordance with Article 11(3) of the WTO Agreement on Implementation of Article VI of the 
GATT 1994 (the Anti -Dumping Agreement), on 1 November 2019 a decision was made under 
subsection 269ZHG(1) of the Customs Act 1901  to continue an ti-dumping measures on exports 
of power transformers from Indonesia for a further five years. Following an application by an 
Indonesian exporter, the Anti -Dumping Review Panel (ADRP) decided to conduct a review of 
the decision to continue the measures, and  on 31 January 2020, requested the Commission to 
reinvestigate its recommendation. The reinvestigation is ongoing. Further information about the 
ADRP Review is available at https://www.industry.gov.au/data -and-publications/anti -dumping -
review -panel -current -reviews/power -transformers -exported -from-the-republic -of-indonesia -
and-taiwan . 
 
  WT/TPR/M/396/Add.1  
 
- 165 - 
 
  Israel  
4 TRADE POLICIES BY SECTOR  
4.1.1 Agriculture  
4.1.1.2.2 Exports  
 
Question 1  
1. Israel notes that in 2015 Australia has expanded its tariff quotas allocated to exporters. Could 
Australia explain how these quotas are determined?  
 
RESPONSE: The paragraphs in question refer to Australia's administration of trading partners 
tariff quotas into their markets, not Australia implemented export quotas. Australia's current 
TRQ schemes form part of Australia's bound commitments under the WTO . 
 
4.1.1.4 Levels of Support  
 
Question 2  
2. Israel notes the increase of the "income insurance and income safety net programmes" 
component of the Green Box.  
Could Australia elaborate on this measure?  
Is it related to the ending of the Exceptional Circumstanc es programmes mentioned or to the 
Managing Farm Risk programme mentioned in 4.19?  
 
RESPONSE:  The increased component of the "income, insurance and income safety -net 
programme" noted is predominantly due to an increase in the estimated foregone revenue for  
the Farm Management Deposits Scheme. This estimate was increased due to three changes 
made to the Scheme from 1 July 2016, including an increase in the amount a primary producer 
can hold in Farm Management Deposits, allowing some primary producers to acce ss their 
deposits early in limited circumstances and allowing deposits to offset primary production loans.  
 
The increase is not at all related to the Managing Farm Risk Program. The increase is also not 
directly related to ending Exceptional Circumstances however programs that encourage risk 
management such as Farm Management Deposits were introduced as an alternative to the 
exceptional circumstances approach.  
 
  WT/TPR/M/396/Add.1  
 
- 166 - 
 
  Japan  
Report by the Government (WT/TPR/G/396)  
 
3 TRADE AND INVESTMENT POLICY  
3.7 Other International Economic Engagement  
3.7.2 Asia -Pacific Economic Cooperation (APEC)  
and 
3.8 Thematic Trade Policy Priorities  
3.8.1 E -Commerce/Digital Trade  
 
Question 1: Paragraph 3.67, page 17 and Paragraph 3.78, page 18  
1. The Government Report states that "Aus tralia 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." 
(Paragraph 3.67). It also states that "Australia is a strong supporter of the APEC Cross -Border 
Privacy Regime." (Paragraph 3.78).  
 
In this context, please elaborate on what concrete me asures will be taken to promote the Cross 
Border Privacy Regime (CBPR) system in Australia to ensure appropriate protection and smooth 
flow of cross -border data. Please also elaborate on the Australian strategy to further develop 
the practical enforcement of this framework and how it plans to gain more support and 
involvement of APEC/non -APEC economies.  
 
RESPONSE: In this context, please elaborate on what concrete measures will be taken to 
promote the Cross Border Privacy Regime (CBPR) system in Australia t o ensure appropriate 
protection and smooth flow of cross -border data.   
 
Australia will incorporate the Cross -Border Privacy Rules (CBPR) program requirements through 
the development of a Code under Part IIIB of the Privacy Act 1988. This will ensure that the 
Australian Information Commissioner (Australia’s privacy regulator) has jurisdiction over 
privacy law issues.  
 
Australia will identify a suitable Accountability Agent (which will most likely be an Australian 
business) that will be subject to Australia ’s privacy law, consumer protection, trade mark and 
corporations legislation in relation to its activities. Australian businesses that are certified by 
the Accountability Agent will also be bound by Australia’s privacy law, consumer protection, 
trade mark and corporations legislation in relation to their activities.  
 
Australian consumers will be able to seek redress for privacy complaints through the 
Accountability Agent dispute resolution services in the first instance, and then may have their 
complaints escalated to the Australian Information Commissioner for further  resolution if their 
complaint is unable to be resolved by the Accountability Agent.  
  
Please also elaborate on the Australian strategy to further develop the practical enforcement of 
this framework and how it plans to gain more support and involvement of  APEC/non -APEC 
economies.  
 
Domestic implementation will require industry engagement and consultation to raise awareness 
of the CBPR system within the Australian business community, in particular, with businesses 
that transfer personal information overseas either for processing or for goods or service 
delivery.  
 
Australia is an active member of APEC’s Data Privacy Sub -group and engages with other 
member economies in initiatives aimed at ensuring the CBPR program requirements are 
effective and fit for purpos e. Australia is also a member of the DPS Administration and 
Accountability Study Group (AASG) which is an informal working group that undertakes 
necessary intersessional work for the operationalisation of the CBPR system. All members 
economies and other in vited guests are encouraged to participate in the work of the AASG, 
regardless of whether their economy currently participates in the CBPR system or not.  WT/TPR/M/396/Add.1  
 
- 167 - 
 
  Australia does not have an opinion on the involvement of non -APEC economies in the CBPR 
system.  
 
Repor t by the Secretariat (WT/TPR/S/396)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
3.3.2.3 Transparency  
 
Question 2: Paragraph 3.100 -101, page 70  
2. (1) Could Australia outline the consultation process involved in the development of a mandatory 
standard or technical regulation in Australia?  
(2) How can a foreign business participate in the standards development process for technical 
regulations in Australia?  
 
RESPONSE: (1) All Standards developed by Standards Australia – Australia’s National 
Standards Body – are voluntary, and the processes used are in line with international norms 
(see: https:// www.standards.org.au/standardisation -guides ). If the standard was to become 
mandatory, the specific regulator would have its own consultation process which it would 
undertake. For example, with regards to food standards, Food Standards Australia New Zealan d 
(FSANZ) undertakes public consultation on all applications and proposals to amend the Food 
Standards Code (the Code). Further information on this process can be found on the FSANZ 
website: https://www.foodstandards.gov.au/code/changes/Pages/default.aspx .  
 
Further, the Australian Government (through the Department of Industry, Science, Energy and 
Resources) has published a ‘Best Practice Guide to Using Standards and Risk Asse ssments in 
Policy and Regulation’, which helps policy officers and regulators assess how to most 
appropriately use standards in support of policy and regulatory goals, in consultation with key 
stakeholders (available here: https://www.industry.gov.au/regulations -and-
standards/australias -standards -and-conformance -infrastructure ).  
 
(2) Organisations from other countries (including businesses, where appropriate) can 
participate in Australian Standards development, subject to meeting certain requirements. 
Details are available in ‘SG -002 Structure and Operation of Standardisation Commi ttees’ – see 
Clause 6.5: https://www.standards.org.au/getmedia/00a7a293 -b416-4bb5-81f7-
79e9a6cf 2107/SG -002-Structure -and-Operation -of-Standardisation -Committees.pdf.aspx . 
 
With regards to food standards, a foreign business can participate in the standards development 
process by either directly submitting an application to amend the Code, or by provi ding a 
submission in relation to a public consultation process. Further information on how to make an 
application and the data requirements for an application can be found on the FSANZ website 
at: https://www.foodstandards.gov.au/code/changes/Pages/default.aspx . 
 
3.3.7 Intellectual property rights  
3.3.7.4 Institutional and registration issues  
 
Question 3: Paragraph 3.171, page 86  
3. (1) Could IP Australia tell us the target countr ies for the Regional Patent Training programme? 
Moreover, how would IP Australia define the targeted countries?  
(2) Will IP Australia continue to conduct the Regional Patent Training programme? If so, what 
would you consider a comprehensive goal for the Re gional Patent Training programme?  
 
RESPONSE: The Regional Patent Training program ( RPET) is a patent examination training 
initiative delivered from 2013 to 2018 by IP Australia under the ASEAN -Australia -New Zealand 
Free Trade Agreement. Trainees from IP of fices in the Philippines, Malaysia, Indonesia, Vietnam 
and Thailand participated in the program. The World Intellectual Property Organization 
supported trainees from the African Regional IP Organisation and Kenya to participate in the 
program.  
 
RPET concl uded in 2018. RPET Mentoring is a follow -on program which has assisted participating 
RPET offices to develop their own in -house training programs, incorporating the RPET WT/TPR/M/396/Add.1  
 
- 168 - 
 
  competency based training methodology. The program has focused on filling gaps in exis ting 
training practices in each participating office, with self -sustainability in delivery of their own 
patent examination training the ultimate aim. RPET Mentoring is expected to continue in 2020.  
  WT/TPR/M/396/Add.1  
 
- 169 - 
 
  Korea, Republic of  
PART I: Questions Regarding the Secretariat Report  
 
Page 8 (Para 9)  
Australia's system of indirect taxation includes a general Goods and Services Tax (GST)  of 10%, a 
luxury car tax, a wine equalization tax, and excise duties on alcoholic beverages, tobacco and 
tobacco products, and fuel and petroleum products. A number of changes to the GST regime took 
place in the period under review, including its extension to digital products and services supplied 
cross-border to consumers in Australia. The application of GST to cross -border transactio ns between 
businesses was also modified to ensure that non -resident suppliers are not drawn unnecessarily into 
the GST system . Excise duty rates are indexed, and adjustments are normally carried out twice a 
year. The tobacco tax was raised an additional 12 .5% in September 2019, and a further 12.5% 
increase should come into force on 1 September 2020. Australia's states and territories also collect 
a number of duties and taxes, but, except for motor vehicles, insurance and gambling, most of these 
have little or no bearing on trade. [Emphasis added]  
 
Question 1  
1. Could Australia elaborate on the definition and scope of the term “digital products” subject to 
GST under its domestic tax scheme? Korea would also like to know whether it is Australia’s 
position the concept can be fitted into the context of the ongoing WTO digital trade negotiations.  
 
As stated on page 16, paragraph 1.17 of WT/TPR/S/396, Australia’s GST scheme is a ‘domestic 
indirect tax’ as opposed to customs duties. Nevertheless, concerns may exist as to the 
extraterritorial effects of such a tax, as well as the possibility that it may function as a de facto 
circumvention to the WTO Digital Moratorium which has been in effect since 1998. Korea would 
like to ask Australia’s position on this issue.  
 
According to page 8, paragraph 9 of WT/TPR/S/396, Australia modified its GST scheme to 
“ensure that non -resident suppliers are not drawn unnecessarily into the [same] system”. Could 
Australia provide more information on this issue? For instance, has Australi a adopted export -
side border tax adjustments for its GST (or value -added tax), in accordance with GATT Ad 
Article XVI and the WTO Subsidies Agreement?  
 
RESPONSE: Consistent with most value added tax systems in the world, Australia seeks to 
apply the destin ation principle in imposing GST on cross -border supplies. This principle states 
that GST on cross -border supplies should only be levied in Australia when consumption of the 
product or service supplied occurs in the indirect tax zone (Australia). The GST is  a multistage 
tax under which input tax credits are generally available to businesses to prevent cascading of 
GST through each stage of production and ensure that the economic cost of GST is borne on 
private consumption in the indirect tax zone. Australia does not consider the GST as a de facto 
circumvention of the moratorium on electronic transmissions. It is an internal tax, not a customs 
duty, and applies equally to domestic and imported goods.  
 
Page 73 (Para 3.112)  
Australia introduced a new country of origin labelling system on 1 July 2016 that became mandatory 
for "priority food" from 1 July 2018.95 The new system is enforced by the Australian Competition 
and Consumer Commission. The labelling requirements include a country of origin statement and a 
prescribed logo/mark and bar chart. Food with all ingredients grown, produced or made in Australia 
carry a prescribed kangaroo logo. For imported food or food ingredients, the marking should include 
a text and bar chart indicating the proportion of Australia n ingredients by ingoing weight.  
 
Question 2  
2. Could Australia please explain the factual background and reasons behind its introduction of a 
new country of origin labelling system, and how this change may affect trade?  
 
RESPONSE: Australia's Country of Orig in Labelling (CoOL) reforms were introduced in response 
to consumer confusion about country of origin food labelling that had existed for a long time. 
Consumers had been calling for changes to simplify origin claims on foods and to make them 
clearer, more meaningful and easier to find. Businesses, though recognising the value of country 
of origin labelling, often struggled to understand labelling requirements and/or to meet 
consumer expectations.  WT/TPR/M/396/Add.1  
 
- 170 - 
 
  Australia's CoOL reforms apply to all food sold in a retail setting, and are intended to enable 
consumers to make purchasing decisions in line with their personal preferences.  
 
Australia produced a Regulatory Impact Statement (RIS) for the CoOL reforms, which found 
that the reforms would remain consistent with Aus tralia's international trade obligations 
(https://ris.pmc.gov.au/sites/default/files/posts/2016/04/Country -of-Origin -Labelling -
Decision -RIS-1.pdf). 
 
These reforms are expected to have a predominantly facilitative effect on trade by addressing 
consumer confidence concerns.  
 
Page 101 (Para 4.19.)  
In its most recent notification to the WTO Committee on Subsidies and Countervailing Measures, 
Australia listed three federal programmes directed towards the agricultural sector in financial years 
2017/18 and 2018/19.8 The programmes comprised pest animal and weed management in drought -
affected areas, the Farm Household Allo wance, and the Managing Farm Risk programme. The latter 
involves a one -off rebate to eligible farm businesses that seek independent and professional advice 
when applying for a new insurance policy covering drought management and other production or 
market risks. The rebate amounts to 50% of the costs for seeking advice (up to AUD 2,500). Total 
expenditures under this programme were AUD 277,000 in 2018/19. Two programmes related to 
water management were notified under the heading environmental programmes.  
 
Question 3  
3. [Question withdrawn]  
 
Page 110 (Para 4.49)  
Foreign investment in the sector is governed by the Foreign Acquisitions and Takeovers Act, 1975, 
the Foreign Acquisitions and Takeovers Fees Imposition Act, 2015, and the Register of Foreign 
Ownership of Water or Agricultural Land Act, 2015. Under the provisions of the law, Australia applies 
a screening process, whereby foreign investment proposals are evaluated against the national 
interest criteria on a case by case basis. Under the current foreign investment framework, a mining 
or production tenement is considered to be Australian land; as such, the threshold for such 
acquisitions is AUD 0. A higher screening threshold of AUD 1,154 million applies to privately owned 
investors from Chile, New  Zealand, and the United States.  
 
Question 4  
4. Could Australia please specifically explain the applicable criteria when evaluating foreign 
investment? Korea would also like to ask Australia’s position on the criticism that these criteria 
may function as an a rbitrary instrument that impedes foreign investment.  
 
RESPONSE: The Foreign Acquisitions and Takeovers Act 1975 (Cth) empowers the Treasurer 
to prohibit an investment if satisfied it would be contrary to the national interest. The Australian 
Government has  provided general guidance on the national interest factors that are typically 
considered when assessing foreign investment proposals. These include: national security, 
competition, other Government policies (including tax), impact on the economy and the 
community, and the investor’s character. Where a proposal involves a foreign government 
investor, the Government also considers if the investment is commercial in nature or if the 
investor may be pursuing broader political or strategic objectives that may b e contrary to 
Australia’s national interest.  
 
The relative importance of these considerations can vary depending upon the nature of the 
target enterprise. Investments in enterprises that are large employers or that have significant 
market share may raise more sensitivities than investments in smaller enterprises. However, 
investments in small enterprises with unique assets or in sensitive businesses may also raise 
concerns.  
 
The Australian Government welcomes foreign investment. Australia’s foreign invest ment 
framework is clearly established in legislation. It is open and transparent. The Government 
reviews foreign investment proposals against the national interest on a case -by-case basis. The 
approach maximises investment flows, while protecting Australia ’s interests.  
 WT/TPR/M/396/Add.1  
 
- 171 - 
 
  Australia’s foreign investment framework also strikes a balance between ensuring that Australia 
remains an attractive investment destination and maintaining the community’s confidence in 
foreign investment. Community confidence is critical t o ensure continued support for foreign 
investment and the many benefits it provides.  
 
Page 117 (Para 4.80)  
The average MFN applied tariff on motor vehicles and related products (3.7%) remains higher than 
the average rate for the manufacturing sector, altho ugh it is much lower than in 2015. Net tariff 
assistance also decreased from AUD 167.4 million in 2014/15 to AUD 117.9 million in 2017/18. In 
2017/18, budgetary assistance was directed to the Automotive Transformation Scheme (allocated 
to motor vehicles an d parts) (AUD 87 million), the Automotive Diversification Programme (AUD 1.7 
million), Encouraging Innovation in Advanced Manufacturing (AUD 1.6 million), and the Toyota Major 
Facelift Vehicle and Supplier Grant (AUD 700,000).  
 
Question 5  
5. Based on the Secr etariat Report, the automotive sector appears to receive strong government 
support for its transition from simple assembly to higher value -adding activities, for example 
through higher tariffs compared to other manufacturing sectors, dedicated funds and so  on. 
Can Australia elaborate on the eligibility to apply for such assistance? Can foreign entities or 
workers also apply? Additionally, the assistance granted to the automotive sector is on the 
decline, for example lower tariffs compared to 2015 and, decre ased net tariff assistance. Does 
Australia intend to reduce its assistance to the sector?  
 
RESPONSE: As noted in the WTO Secretariat Report, Australian Government programs to 
support the transition and continuing development of the automotive industry include the 
Advanced Manufacturing Fund (which includes the Advanced Manufacturing Growth Fund; 
Automotiv e Innovation Labs; and Automotive Engineering Graduate Program), and the 
Automotive Transformation Scheme which runs until the end of 2020.  
 
Please refer to the grant guidelines for information regarding eligibility requirements for these 
programs:  
• https://www.business.gov.au/Grants -and-Programs/Advanced -Manufacturing -Growth -
Fund  
• https://www.business.gov.au/Grants -and-Programs/Automotive -Engineering -
Graduate -Program   
• https://www.business.gov.au/G rants-and-Programs/Automotive -Innovation -Lab-
Access -Grants   
• https://www.business.gov.au/Grants -and-Programs/Automotive -Transformation -
Scheme  
 
PART III: Other Questions  
 
Question 6  
6. Many Korean companies are facing difficulties in exporting to the Australia market due to non -
tariff barriers, especially strict quarantine procedures. Due to Australia's strict quarantine 
procedures, customs clearance  takes long time, and it is critical for food products with short 
shelf life After shipment from Korea, generally it takes about two months for customs clearance 
and distribution to Australia. Therefore, products with shorter shelf life are getting more di fficult 
to import. Is there any possibility to reduce this period for products with short shelf life?  
 
RESPONSE: Australia applies sanitary and phytosanitary measures at the border in accordance 
with our WTO obligations, specifically those related to peri shable goods in the WTO Agreement 
on Trade Facilitation.  
 
Further information on clearance times is available at:  
https://www.homeaffairs.gov.au/research -and-statistics/statistics/operational -reports . 
 
Question 7  
7. The mandatory to use more than 90% local contents in state of Victoria’s Infra structure project 
makes it difficult for other member’s companies to participate in the bidding. Also, there is a 
possibility that This measurement is against on the WTO GPA Agreement. Could Australia please WT/TPR/M/396/Add.1  
 
- 172 - 
 
  specifically explain the legal basis for this measurement and relationship between WTO GPA 
Agreement and this measurement?  
 
RESPONSE: The 90 per cent local content requirement in Victoria is targeted at ensuring that 
small and medium enterprises (SMEs) are given a full and fair opportunity to participate in 
selected construction projects. Requirements to engage local SMEs as part of construction 
projects are published in tender documentation and do not prevent the suppliers of WTO GPA 
members from tendering. Australia, as do a number of other WTO GPA parties, has an exception 
to its commitments for policies in relation to SMEs.  
 
  WT/TPR/M/396/Add.1  
 
- 173 - 
 
  Malaysia  
SECRETARIAT REPORT  
 
Page 31  
2.4 Investment Regime  
2.28. The Government has continued its commitment to a deregulation agenda, removing barriers 
to competition, innovation and growth, reducing red tape further while also seeking improved 
regulatory performance.39 Commonwealth government initiatives continue to promote regulatory 
quality through, for example, the Regulatory Impact Analysis (RIA), required for every policy 
proposal designed to introduce or abolish a regulation; the Commonwealth Regulatory Burden 
Measure, used by policymakers to measure compliance costs of regulatory proposals on businesses, 
individuals and community organizations; and the Regulator Performance Framework, designed to 
assist Commonwealth regulators in minimizing the impact on those being regulated w hile still 
achieving their set goals. The Government reports regularly on the implementation of regulatory 
reforms and the administration of the RIA.  
 
Question 1  
1. How effective has the Regulatory Impact Analysis (RIA) been in Australia?  
 
RESPONSE: Australia ’s Regulatory Impact Analysis (RIA) system covers every major decision 
of government, including those made by the Prime Minister, the Cabinet and its committees, 
and those delegated to Ministers or officials. Where a decision is anticipated to have more th an 
a minor impact (be it positive or negative) on individuals, businesses or community 
organisations, a Regulation Impact Statement (RIS) is required. This RIS, which is assessed for 
quality by the Office of Best Practice Regulation (OBPR), must be made av ailable to the decision 
maker to inform their decision.  
 
Over the period 2014 -15 to 2019 -20 (up to 14/02/20), there were 237 RISs produced by 
Australian Government agencies, of which approximately 76 per cent were considered Best 
Practice by the OBPR. In a ddition, the OBPR is also responsible for administering the Council of 
Australian Government’s (COAG’s) RIA requirements. In the period 2016 -17 to 2019 -20 (up to 
14/02/20) there were also 40 RISs produced.  
 
Australia’s RIA framework gives decision makers a nd stakeholders alike confidence that when 
Government makes a decision with regulatory impacts on Australians, these impacts have been 
examined in detail. Importantly, RIA is not about making the decision, but informing those who 
make decision of the trade -offs they face. As such, Australia’s RIA framework is recognised as 
world -leading.  
 
Page 32  
2.32. Launched in 2016, the National Business Simplification Initiative (NBSI) is a Commonwealth 
agreement between the Australian, state and territory governments to make it simpler to do 
business in Australia. The purpose of the NBSI is to allow businesses to cut costs and thereby enable 
them to focus on job creation, product development, and new market opportunities. Through this 
Initiative, the Govern ment seeks to ease doing business with government, to streamline regulations 
and its services, make it easier to get government contracts and improve procurement processes so 
that businesses of all sizes may compete, and remove barriers to business growth and innovation. 
The Initiative launched the Business Registration Service, which made it easier to register a business 
online. Online registration has shortened the average time taken to register a business from more 
than one hour to less than 15 minutes.  
 
Question 2  
2. What is the mechanism used to monitor the implementation of the National Business 
Simplification Initiative (NBSI)?  
 
RESPONSE: The National Business Simplification Initiative (NBSI) is a Commonwealth 
agreement between the Australian, state and territory governments. 
(https://www.industry.gov.au/strategies -for-the-future/simplifying -business ).  
 
The agreement focuses on helping businesses grow and creat e jobs, new products, and market 
opportunities. It achieves this by cutting red tape and improving services.  WT/TPR/M/396/Add.1  
 
- 174 - 
 
  The governments are looking at improvements in:  
- Making it easier to do business with government: streamlining regulation and 
services.  
- Making it ea sier to get government business: improving procurement processes so 
businesses of all sizes can compete.  
- Removing barriers to business growth and innovation: improving regulations and 
platforms to promote greater innovation and expansion.  
 
The Department o f Industry, Science, Energy and Resources will continue to deliver online 
services to business through the Business Registration Service (BRS) and the Australian 
Business Information and Licensing Service (ABLIS).  
 
Page 71  
3.3.3 Sanitary and phytosanitary requirement  
3.105. The Imported Food Control Act, 1992 and the Imported Food Control Regulations, 1993 
govern food entering Australia.90 The Act was amended in 2018, through the Imported Food Control 
Amendment Act, 2018, to strengthen the safety system fo r imported food. It affects the operation 
of the risk -based Imported Food Inspection Scheme, as it increases the importers' accountability for 
food safety and the sourcing of safe food. It also strengthens the monitoring and management of 
new and emerging food safety risks, and incident response. For certain imported food, the 
Department of Agriculture requires evidence of through -chain controls, to demonstrate that food 
safety hazards were effectively managed during production. The Department has a whole s ystem 
agreement (Food Safety Recognition Agreement) in place with the United States since April 2017, 
and it has a number of government -to-government certification arrangements with other countries 
for certain imported food. In all, 16 certification arrang ements are in place with national competent 
authorities, covering a range of high -risk foods such as seafood, beef and raw milk cheese.  
 
Question 3  
3. Could Australia please provide the 16 certification arrangements in detail and the procedures 
for countries to go through the certification issuance?  
 
RESPONSE: Under Section 18 of the Imported Food Control Act 1992 , the Department of 
Agriculture, Water and the Environment can enter into a government -to-government 
certification arrangement with the relevant national competent authority of a country exporting 
food to Australia. Foreign government certification arrangements address requirements for 
safety and compliance with Australia’s food standards only, and do not cover other import 
requirements (s uch as biosecurity) for any food imported into Australia.  
 
Foreign government certification arrangements are applicable to food that presents a potential 
medium or high risk to public health and are classified as risk food in the Imported Food Control 
Order 2019. These arrangements are mandatory for certain risk food, such as beef and beef 
products, raw milk cheese, certain ready -to-eat meat and human milk. Voluntary foreign 
government certification arrangements can also be considered for risk food.  
 
Export ing countries interested in negotiating a foreign government certification arrangement 
can apply to the department for an equivalence assessment of their regulatory system. The 
competent authority must demonstrate that the food safety controls in place for  a particular 
type of food achieve equivalent food safety outcomes to Australia’s. The equivalence 
assessment is undertaken in accordance with Codex Alimentarius guidelines.  
 
Consignments accompanied by a recognised certificate may be subject to a reduced  rate of at -
border inspection and analysis, on the basis that the food has been produced under an 
equivalent food safety system in the exporting country.  
 
The Department’s website provides a list of current certification arrangements and more details 
about  the equivalence assessment process: https://www.agriculture.gov.au/import/goods/ 
food/inspection -compliance/foreign -government -certification . 
 
The Department’s website also provides information on its food safety recognition agreements 
with other countries: https://www.agriculture.gov.au/import/goods/food/foreign -system -
recognition -agreements . 
 WT/TPR/M/396/Add.1  
 
- 175 - 
 
  GOVERNMENT REPORT  
 
Page 6  
2.4.1 Tax reform  
2.22. Australia broaden ed 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 vendor collects the tax at the time of sale and remits t he 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 register, 
collect and remit GST.14  
 
Question 4  
4. What has b een the impact of the implementation of this tax on overseas vendors?  
 
RESPONSE: From July 2017, GST applies to digital products and services that are imported by 
consumers in Australia from overseas. These include intangible supplies such as e -books, vide o 
streaming services or game downloads, as well as services provided to consumers from 
overseas, including legal and accountancy services supplied by offshore entities.  
 
However, this measure only applies to offshore vendors and electronic distribution platforms 
with Australian turnover of AU$75,000 or more. Entities with Australian turnover less than this 
do not need to register for GST, or charge GST to Australian consumers.  
 
As at June 2019, over 1,500 offshore businesses have registered for GST with the Australian 
Taxation Office, to ensure they can comply with this and other similar GST measures. Strong 
compliance has resulted in GST revenue from this measure exceeding original expectations.  
 
QUESTIONS FROM MOH  
 
SECRETARIAT RE PORT  
 
Page 39  
3.1.1.1 Documentation requirements and trade facilitation measures  
3.9. Australia has been conducting an annual Time Release Study (TRS) for imported cargo since 
2010. The reports analyse data on border clearance times for a sample period, to  determine average 
clearance times for different types of cargo arriving in Australia. The TRS has consistently shown 
that customs procedures are not an impediment to cargo release times. The TRS2016, covering both 
2015 and 2016, was published on 1 April 2 019. 
 
Question 5  
5. Did the TRS include perishable items such as cargo consisting of vaccines in its data analysis?  
 
RESPONSE: Yes, the TRS does include perishable items such as cargo consisting of vaccines in 
its data analysis.  
 
Page 60  
3.2.3 Export prohibit ions, restrictions, and licensing  
3.60. Australia's export controls reflect a number of factors, notably international commitments it 
undertook regarding the non -proliferation of nuclear materials, sales of military and dual -use goods 
and technologies, cou nter-terrorism measures, cultural heritage, and the protection of endangered 
animals and plants (Table 3.11).  
 
Human body fluids, organs and 
other tissue  Public health or safety 
concerns  Permission may be granted by 
the Therapeutic Goods 
Administration. Human 
remains may be exported 
without a permit  
 WT/TPR/M/396/Add.1  
 
- 176 - 
 
  Question 6  
6. Ministry of Health Malaysia seeks clarification if Australia, has imposed any license/permit 
requirements under their country le gislation and guidelines: to import or export human remains, 
human tissues (including blood and blood components; cell, tissue and organs; semen), 
microorganisms and pathogenic substances (including the toxin), and biological goods.  
 
RESPONSE: Importation – human tissue, microorganisms and pathogenic substances  
The Biosecurity (Prohibited and Conditionally Non -Prohibited Goods) Determination 2016 
(Goods Determination), under the Biosecurity Act 2015 (Biosecurity Act), provides that classes 
of goods must not  be brought or imported into Australian territory unless specified conditions 
are complied with.  
 
As per section 48 of the Goods Determination, human tissues (including human blood or blood 
components); cells; human tissue extracts or organs; human semen, embryos or ova can be 
imported into Australian territory if the goods are covered by an import permit, or the goods 
are for human therapeutic use and are not antibodies or cell lines. The human therapeutic use 
has the same meaning as therapeutic use  in section 3 of the Therapeutic Goods Act 1989.  
 
As per section 10 of the Goods Determination, biological material or infectious agents that cover 
microorganisms, pathogenic substances (including the toxin), and biological goods can be 
imported into Austr alian territory if the goods are covered by an import permit or if the specified 
alternative conditions are complied with. There are no export requirements for the above goods 
under the Biosecurity Act.  
 
Importation – human remains  
Under section 110 of the  Biosecurity Act, human remains can be brought into Australian territory 
provided specific requirements are met as listed in the Biosecurity (Managing Human Remains) 
Instrument 2016. Import clearance and/or permission may also be required from Department 
of Agriculture, Water and the Environment.  
 
Exportation – human tissue, microorganisms and pathogenic substances  
The exportation of human body fluids, organs and other tissue, and substances derived from 
human blood is prohibited under regulation 8, and lis ted in Schedule 6, of the Customs 
(Prohibited Export) Regulations 1958, unless permission has been granted or the goods are 
exempt from this requirement. Permission is granted by the Therapeutic Goods Administration 
(TGA). Valid permission must be presente d to the Australian Border Force at the time of 
exportation through an export declaration.  
 
A TGA export permit may be required based on the type of good being exported and volume of 
the container of the good. If the good being exported contains human body  fluids, organs and 
other tissues:  
• a TGA export permit is not required if the volume of each individual container is 50 mL 
or less (even if the total volume of a shipment exceeds 50 mL);  
• a TGA export permit is required if the volume of a container exceeds 50 mL.  
If the good being exported contains substances derived from human blood, a TGA export permit 
is required regardless of the volume.  
 
The above excludes microorganisms, pathogenic substances, and biological goods that are not 
considered to be human su bstances. Further information can be found in Export of human 
substances.  
 
Exportation – human remains  
A TGA export permit is not required to export human remains or human ashes, and there are 
no export requirements for human remains under the Biosecurity Act. 
 
Page 86  
3.3.7.5.1 Patents  
3.172. The Patents Act, 1990, last amended in 2018, provides protection for standard patents and 
innovation patents, with terms of 20 years (up to 25 years for eligible pharmaceuticals) and 8 years, 
respectively. Several ame ndments were made to the Patents Act during the review period. The 
Intellectual Property Laws Amendment Act, 2015 (IPLA 2015) amended the Patents Act to give effect 
to Australia's obligations under the TRIPS Protocol. The amendments enable Australian medic ine WT/TPR/M/396/Add.1  
 
- 177 - 
 
  producers to apply to the Australian Federal Court for a compulsory licence to manufacture and 
export patented pharmaceuticals to eligible importing countries.  
 
Questions 7 -8 
7. What are the circumstances that allow for the application of CL for pharmaceuticals? Does the 
Australian Patents Act narrow the scope to only cases of “extreme urgency”?  
 
RESPONSE: Circumstances of extreme urgency are not the only circumstances in which a 
compulsory licence under the Article 31bis system may be granted in Australia.  
 
The court has to be satisfied that the proposed use of the pharmaceutical product is to address 
a public health problem in the eligible importing country, either in circumstances of national 
emergency or other circumstances of extrem e urgency, or by the public non -commercial use of 
the product. Public non -commercial use includes use by a government or a non -profit non -
government organisation to address ongoing public health problems in the importing country.  
 
8. What is the definition fo r ‘eligible importing countries’ as determined by Australian law?  
 
RESPONSE: The definition of "eligible importing countries" is contained in the Patent 
Regulations 1991 https://www.legisla tion.gov.au/Details/F2019C00756 . 
 
1.4A Meaning of eligible importing country  
For the definition of eligible importing country in Schedule 1 to the Act, the following kinds of 
foreign countries are prescribed:  
(a)  a WTO member that notifies the Council for  TRIPS, in accordance with the Annex 
to the TRIPS Agreement, of the member’s intention to use the system set out in Article 
31bis of the TRIPS Agreement and the Annex to that Agreement as an importer;  
(b)  a least developed country.  
 
Page 88  
3.181. The Government considers that world -wide high -quality IP examination based on 
internationally agreed standards is in the interests of Australian businesses, and has, accordingly, 
committed to improving the quality of its patent examination. As part of this com mitment, IP 
Australia provides a comprehensive, flexible training programme for patent examiners - the Self -
paced Training for Examiners of Patents programme. A number of the Government's legislative 
responses to the PC Report are also directed to improvin g the quality of Australian patents  
 
Question 9  
9. Does the Australian Patent Office consult the Australian Government’s Department of Health or 
The Therapeutic Goods Administration (TGA) on patents application concerning 
pharmaceuticals?  
 
RESPONSE: No, the A ustralian Patent Office does not consult the Department of Health or the 
TGA when considering patent applications for pharmaceuticals.  
 
QUESTIONS FROM KKR  
 
SECRETARIAT REPORT  
Page 147  
Table A2.3 Selected bilateral treaties relating to trade and investment  
 
Question 10  
10. Australia has a very extensive technical cooperation program around the world particularly 
through AusAid. Is there a policy to accommodate the participation of consultants from 
developing countries, for example Malaysia, in the technical coop eration programs?  
 
RESPONSE: Australian development assistance is untied (i.e. the delivery of our development 
assistance is not restricted to Australian citizens or firms). As such, experts from other 
countries, including Malaysia, are eligible to tender for work associated with Australia’s program 
of development assistance. No quotas apply to the employment of experts from other countries.  
  WT/TPR/M/396/Add.1  
 
- 178 - 
 
  Mexico  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measure Directly Affecting Imports  
3.1.6 Anti-dumping, countervailing, and safeguards measures  
3.50 
 
Question 1  
1. Al respecto de la presentación de las solicitudes por correo electrónico, ¿podría Australia 
mencionar, de manera general, las medidas de seguridad que implementa para mantener la 
confid encialidad de la información de las solicitudes que esté clasificada de esa manera?  
 
RESPONSE: The onus is on the applicant to ensure that the non -confidential version of the 
application is correctly redacted. Applicants provide both public record and conf idential versions. 
Only the public record version is uploaded on to the Anti -Dumping Commission’s website.  
Applications received by email are stored in a document management and collaboration share 
point tool. The confidential and public record classifica tions are maintained for the files. Only 
Anti-Dumping Commission staff can access files on this system to ensure that confidentiality is 
maintained.  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measure Directly Affecting Imports  
3.1.6 Anti -dumping, coun tervailing, and safeguards measures  
3.51 
 
Questions 2 -3 
2. ¿Podría Australia explicar cuáles son las decisiones que el ADRP puede examinar?, ¿qué 
características deben de cumplir para que se pueda llevar a cabo su revisión?  
 
RESPONSE: Decisions subject to review are set out in legislation under Section 269ZZA and 
269ZZN of the Customs Act 1901. Reviewable decisions of the Minister are decisions to publish 
(or not to publish) a dumping duty or countervailing duty notice, the outcome of a review of 
measures ( e.g. to vary the level of duties), to continue (or decide not continue) the application 
of anti -dumping measures and a decision made following an anti -circumvention inquiry. 
Reviewable decisions of the Commissioner include decisions to reject an applicatio n for 
measures, to terminate an investigation or anti -circumvention inquiry, to reject an application 
for duty assessment or to terminate the examination of an application for duty assessment.  
Applications for review must be made in writing, using the pre scribed application form on the 
ADRP website. They must provide a full description of the goods to which the application relates; 
contain a statement setting out the grounds on which the applicant considers the decision was 
not correct or preferable; and a  statement setting out the decision the applicant considers 
should have been made. To initiate a review, the Panel must be satisfied that an application 
contains reasonable grounds for a decision not being the correct or preferable decision.  
 
3. ¿Podría Austr alia indicar la forma en la que la ley referida (The Customs Amendment (Anti -
Dumping Measures) Act, 2017) toma en cuenta los intentos de reducir el tipo del derecho 
antidumping por solicitud del exportador?  
 
RESPONSE: WTO document G/ADP/N/1/AUS/2/Suppl.17, G/SCM/N/1/AUS/2/Suppl.15, 25 
January 2018 describes the legislative changes and operation of the Customs Amendment (Anti -
Dumping Measures) Act 2017 in relation to ‘Low Volume Exporters’. The amendments provide 
a range of methods t o determine appropriate export prices where there are no exports, or a 
low volume of exports, during the period examined for a review of measures. It enables the 
Minister to consider alternative information to determine the export price and to establish an  
export price that is reasonably reflective of the export price that would have existed had the 
exporter made exports.  
  WT/TPR/M/396/Add.1  
 
- 179 - 
 
  New Zealand  
REPORT BY THE WTO SECRETARIAT (WT/TPR/S/396)  
 
SECTION 3: TRADE POLICIES AND PRACTICES BY MEASURE  
Copyright  
WT/TPR/S/396, se ction 3.3.7.5.8, page 92 -93, paragraph 3.205  
Section 3.3.7.5.8, paragraph 3.205, states that “The Copyright Amendment (Disability Access and 
Other Measures) Act, 2017 improved access to copyright materials for libraries, archives and 
educational institutio ns, as well as persons with disabilities and those assisting them, implementing 
Australia's obligations under the Marrakesh Treaty. In addition, the Copyright Amendment (Service 
Providers) Act, 2018 extended safe harbour defences in the Copyright Act to a broad range of service 
providers in the disability, educational and cultural sectors, limiting the remedies that are available 
against them for online copyright infringement provided certain criteria are met.”  
 
Question 1  
1. Thus far, what has been the impac t on the Australian literary sector arising from implementation 
of the Copyright Amendment (Disabilities Access and Other Measures) Act 2017?  
 
RESPONSE: The implementation of “The Copyright Amendment (Disabilities Access and Other 
Measures) Act 2017” has i mproved access to copyright materials, including for Australians with 
a vision, hearing or intellectual disability, and has been an important step in bringing Australia's 
copyright laws into the digital age.   
 
Australia is pleased that these access reform s have been embraced by stakeholders, including 
the Australian literary sector, and have resulted in positive outcomes for the community.  
 
For example, The Australian Inclusive Publishing Initiative (AIPI) was launched, bringing 
together publishers, disabi lity associations, libraries, copyright organisations, editors, 
designers, indexers and literary agents, government and accessible -format providers, to foster 
a cross -industry collaborative approach to identify the challenges in making published material 
accessible to the print disabled and the pathways to address those challenges. Led by the 
Australian Publishing Association, AIPI has developed two guides for the publishing and 
disability sectors, and aims to build publishing industry capability in produci ng accessible digital 
books that are inclusive by design.  
 
In another example, Australian libraries, archives and other key cultural institutions can now 
make digital preservation copies of copyright material in a version or format that is in line with 
the current best practice, ensuring it is available for future generations. Importantly, by setting 
a term of copyright protection for unpublished materials, this has freed up large collections of 
historic and culturally valuable unpublished materials held i n our cultural institutions for 
digitisation and communication to the wider community.  
 
REPORT BY THE AUSTRALIAN GOVERNMENT (WT/TPR/G/396)  
 
SECTION 3: TRADE AND INVESTMENT POLICY  
E-Commerce/Digital Trade  
WT/TPR/G/396, section 3.8.1, page 18, paragraph 3.79  
Section 3.8.1, paragraph 3.79 states, “Australian industry has expressed a strong interest in seeing 
e-commerce negotiations set 21st century rules to facilitate cross border data flows, prohibit forced 
data localization for all services sectors and enhance trade facilitation while maintaining strong 
consumer and privacy protections.”  
 
Questions 2 -3 
2. In addition to existing initiatives reported here, what other initiatives/measures is the Australian 
Gover nment undertaking to reflect the interests of Australian industry?  
 
RESPONSE: The Australian Government has a range of initiatives designed to support Australian 
businesses, including:  
 WT/TPR/M/396/Add.1  
 
- 180 - 
 
  • the National Innovation and Science Agenda, aimed at encouraging digit al literacy 
including in early education, and creating ‘landing pads’ that assist Australian start -ups 
to access support, information, partners and venture capital;  
• Australia’s Tech Future, Australia’s digital economy strategy, aimed at enabling the 
digital economy through digital infrastructure, standards and regulations, and 
facilitating cooperation between government, private sector and community;  
• the Cyber Security Strategy, aimed at addressing cyber security and cyber resilience 
issues; and  
• the Inter national Cyber Engagement Strategy, aimed at strengthening cross -border 
cooperation in developing regional digital connectivity and cyber security capabilities, 
and shaping an enabling environment for digital trade.  
 
3. How will initiatives like e -invoicing, and the adoption of e -procurement generally, assist 
Australian and foreign businesses?  
 
RESPONSE: Enabling electronic invoicing can create cost and efficiency benefits for businesses 
by removing the need for paper -based or PDF invoicing and the associated manual labour, and 
facilitating electronic communication in procurement.  
  WT/TPR/M/396/Add.1  
 
- 181 - 
 
  Perú  
Informe del Miembro bajo Examen: WT/TPR/G/396  
 
Comercio y empoderamiento económico de las mujeres  
 
Question 1  
1. El Perú saluda las acciones de Australia en materia de empoderamiento económico de la mujer 
y comercio, incluyendo el copatrocinio de Australia de la Declaración Conjunta en materia de 
Comercio y Empoderamiento Económico de la Mujer en el marco de la Conferencia Ministerial 
de la OMC en Buenos Aires. En este s entido, ¿podría Australia señalar qué acciones son llevadas 
a cabo por el sector público y/o por la sociedad civil australianos para promover el 
empoderamiento económico de la mujer a través del comercio en Australia? De ser el caso, 
¿podría Australia desc ribir brevemente dichas acciones?  
 
RESPONSE: Australian policy seeks to promote women’s economic empowerment in broad to 
form a stronger basis for Australian women to participate in international trade. Australia’s 
inaugural Women’s Economic Security State ment of 20 November 2018 targets Australian 
women’s:  
• workforce participation;  
• earning potential, and;  
• economic independence.  
 
This Statement and measures deliver on the 2014 G20 leaders’ summit or ‘Brisbane goal’ to 
reduce the gender workforce participa tion gap between men and women by 25 per cent by 
2025. This would mean reducing Australia’s gap to 9.1 per cent or, stated differently, 200,000 
more Australian women entering the workforce above current projections. Domestic policy and 
strategy aligns with  this goal by identifying key areas for action:  
• ensuring affordable, acce ssible, and flexible childcare;  
• improving workplace diversity and flexibility;  
• supporting women to innovate, success as entrepreneurs and thrive in jobs of the 
future;  
• strengthening w omen’s economic security; and  
• enhancing financial incentives to work.  
 
The Government’s Women in Global Business (WIBG) initiative (2010) commissioned a sample 
survey on Australian women in international business leading to the report, “Australia’s 
underestimated resource: women doing business globally” which identified acces s to resources, 
knowledge and personal barriers to Australian women participating in international trade.  
 
The WIBG initiative seeks to empower Australian women to overcome such barriers by 
increasing access to mentors, role models and networks. For insta nce, the Australian Trade and 
Investment Commission (Austrade) supports female -led businesses to export and provides 
services and greater opportunities to drive higher representation of women engaging and 
succeeding in international business, pursuant to i ts Diversity and Inclusion Strategy (2019 – 
2021). Austrade provides tailored services for women to conduct business internationally. 
Austrade offers, with the Chief Executive Women network, Women in Export Scholarships 
awards to senior business women in a n internationally focused role to attend a Harvard Business 
School course. Austrade administers the Export Market Development Grants scheme, which is 
targeted at SME businesses where women business owners and operators are concentrated.  
 
The Australian pu blic sector promotes more equitable access of women to government 
procurements by launching the Workplace Gender Equality Procurement Principles and User 
Guide which came into effect in 2013. These Principles support the Workplace Gender Equality 
Act 2012 (WGEA Act) as a Procurement Connected Policy. The WGEA Act’s administering agency 
is responsible for the Principles. Anecdotally, the Workplace Gender Equality Procurement 
Principles have incentivised organisations with 100 or more employees to report annu ally to the 
Workplace Gender Equality Agency and lifted compliance rates.  
 
Australian civil society operates within robust democratic political traditions and institutions, 
which provides opportunities to contribute their views on Australian trade policy. Information 
spanning the Government’s trade and investment agenda is openly available as are clear WT/TPR/M/396/Add.1  
 
- 182 - 
 
  mechanisms for the public to make its views known.  In relation to free trade agreements (FTAs) 
specifically, the Department of Foreign Affairs and Trade inv ites interested people and 
organisations, including civil society groups, to make submissions on FTAs under negotiation or 
review. Representatives of government also hold meetings with civil society representatives, 
among other stakeholders, as part of the  negotiating process.  
  WT/TPR/M/396/Add.1  
 
- 183 - 
 
  Russian Federation  
REPORT BY THE SECRETARIAT (WT/TPR/S/396)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
 
Page 71, para 3.106  
The Biosecurity Act, 2015 and the Biosecurity Regulation, 2016 mandate the Department of 
Agriculture to review existing trade and to undertake risk analysis in response to requests to import 
goods that have never been imported into Australia, or have not previ ously been imported from a 
particular country or region. The risk analysis may be conducted through a regulated process 
provided for in the legislation (Biosecurity Import Risk Analysis – BIRA) or through a non -regulated 
procedure (e.g. a scientific review  of existing policy and import conditions, a pest -specific 
assessment, a weed risk assessment, or a biological control agent assessment). If the identified 
biosecurity risks exceed the appropriate level of protection (ALOP) for Australia, goods may not be 
imported unless the proposed risk management measures reduce the risks to an acceptable level. 
Australia's risk assessment method has been used since 2001, and includes a risk estimation matrix 
that follows international principles consistent with World Or ganisation for Animal Health (OIE) and 
International Plant Protection Convention risk management standards. Australia's ALOP is only 
considered achieved when the estimated risk is at or below "very low".  
 
Question 1  
1. Could Australia please elaborate on its domestic requirements for the estimation of risk being 
«very low»?  
 
RESPONSE: Australia's requirements include either a Biosecurity Import Risk Analysis (BIRA) 
or a non -regulated approach (e.g. a scientific review of existing policy and import conditions, a 
pest-specific assessment, a weed risk assessment, or a biological control agent assessment).  
 
It is not feasible nor desirable to seek to reduce the biosecurity risk associated with importing 
goods to zero. However, if identified biosecurity risk exceeds Australia’s ALOP, goods may not 
be imported unless the proposed risk management measures reduce the risk to an acceptable 
level.  
 
The relative risk of importing the good is assessed through the regulated process or non -
regulated approach and w ill vary depending on factors including but not limited to the type of 
good, its origin and means of transport.  
 
Page 73, para 3.111  
The Australia New Zealand Food Standards Code may be amended, inter alia, at the request of 
stakeholders. Applications to a mend the Code are forwarded to the FSANZ, which must make an 
administrative assessment of the application within 15 business days. The assessment determines 
whether the application meets the requirements of the Application Handbook (Part 3) and the 
procedu re (i.e. general, high -level health claim, minor, major, or urgent) under which it should be 
considered. Accepted applications are incorporated into the FSANZ Work Plan, and the agency has 
fixed time -lines to finalize its formal proposals, depending on the  procedure chosen (3 to 12 months). 
Fees apply if the applicant derives "an exclusive capturable commercial benefit" from the 
amendment, or if s/he would like to expedite the process. Non -payment prompts the automatic 
rejection of the application. A revise d version of the Australia New Zealand Food Standards Code 
was introduced on 1 March 2016. The principal purpose was to clarify the requirements applicable 
to the labelling of food.  
 
Question 2  
2. Could Australia please give an explanation and provide criteria for «exclusive capturable 
commercial benefit» from the amendment?  
 
RESPONSE: Exclusive Capturable Commercial Benefit (ECCB) is defined within Section 8 of the 
Food Standards Australia New Zealand Act 1991.  
 
An ECCB is conferred upon a person who applies for the development of a food regulatory 
measure or the variation of a food regulatory measure if:  WT/TPR/M/396/Add.1  
 
- 184 - 
 
  (a) the applicant can be identified as a person or body that may derive financial gain from the 
coming into effect of the draft standard that would be prepared in relation to the application; 
and 
(b) any other person or bodies, including unrelated commercial entities, that would require the 
agreement of the applicant in order to benefit financially from the approval of the application.  
 
Page 73, para 3.112  
Australia introduced a new country of origin labelling system on 1 July 2016 that became mandatory 
for "priority food" from 1 July 2018. The new system is enforced by the Australian Competition and 
Consumer Commission. The labelling requirements incl ude a country of origin statement and a 
prescribed logo/mark and bar chart. Food with all ingredients grown, produced or made in Australia 
carry a prescribed kangaroo logo. For imported food or food ingredients, the marking should include 
a text and bar ch art indicating the proportion of Australian ingredients by ingoing weight.  
 
Question 3  
3. Australia has mentioned that standard marks may be applied voluntary to non -priority food. 
Could Australia please clarify which food is considered to be “priority” or “n on-priority”?  
 
RESPONSE: A food will be a priority item unless it belongs to one of the following non -priority 
food categories:  
 
1. seasonings  
2. confectionery  
3. biscuits and snack foods  
4. soft drinks and sports drinks  
5. alcoholic drinks  
6. tea and coffee  
7. bottled water.  
 
Further information is available in the Australian Competition and Consumer Commission guide 
for business: https://www.accc.gov.au/system/files/Country%20of%20Origin%20food%20% 
20labelling%20Guide_March%202019.pdf . 
  WT/TPR/M/396/Add.1  
 
- 185 - 
 
  Singapore  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
QUESTION:  
 
2.4. Investment Regime  
 
Page 32 (Para 2.35)  
 
Question 1  
1. The WTO Secretariat Report notes that Australia’s foreign investment screening framework 
evaluates foreign investment proposals “against the national interest criteria on a case -by-case 
basis”. Are there specific factors that are considered under the natio nal interest criteria, and if 
so, what are these factors?  
 
RESPONSE: The Australian Government welcomes foreign investment. The national interest is 
not defined in the Foreign Acquisitions and Takeovers Act 1975 (Cth). Instead, the Act confers 
upon the Tr easurer the power to decide in each case whether a particular investment would be 
contrary to the national interest.  
 
The Government has provided general guidance on the national interest factors that are 
typically considered when assessing foreign invest ment proposals. These include: national 
security, competition, other Australian Government policies (including tax), impact on the 
economy and the community, and the investor’s character. Where a proposal involves a foreign 
government investor, the Governm ent also considers if the investment is commercial in nature 
or if the investor may be pursuing broader political or strategic objectives that may be contrary 
to Australia’s national interest.  
 
The relative importance of these considerations can vary depe nding upon the nature of the 
target enterprise. Investments in enterprises that are large employers or that have significant 
market share may raise more sensitivities than investments in smaller enterprises. However, 
investments in small enterprises with u nique assets or in sensitive businesses may also raise 
concerns.  
 
Page 34 (Para 2.42)  
 
Question 2  
2. The WTO Secretariat Report also notes (with reference to Table 2.1) that between 2013/2014 
and 2017/2018, “only 13 applications [referred to the FIRB] were re jected, and 3 were 
declined”. Could Australia clarify the difference between rejecting and declining an application, 
as well as why these 3 specific applications were declined instead of rejected?  
 
RESPONSE: On 1 July 2017, the Foreign Acquisitions and Tak eovers Regulation 2015 
(Regulation) was amended to introduce a new exemption certificate (EC) for foreign investors 
proposing to undertake a program of acquisitions. ECs allow broad pre -approval for multiple 
transactions in low -risk acquisitions. For furth er explanation of ECs, please see Guidance Note 
26: https://firb.gov.au/guidance -resources/guidance -notes/gn26 . 
 
The distinction between an application being ‘declined’ or ‘rejected’ relates to ECs. ECs are 
“declined” whereas applications for foreign investment are “rejected”. This is outlined in the 
Foreign Investment Review Board 2017 -18 Annual Report ( https://firb.gov.au/about -
firb/publications/2017 -18-annual -report ), on page 24.  
  WT/TPR/M/396/Add.1  
 
- 186 - 
 
  Switzerland  
Report by the Secretariat (WT/TPR/S/396)  
 
SUMMARY  
 
Question 1  
1. Para 7, What are Australia's current priorities with regard to new free trade agreements besides 
your current negotiations?  
 
RESPONSE: Australia is currently focussed on the signature of the Regional Comprehensive 
Economic Partnership (RCEP), concluding our FTA with the European Union, and commencing 
FTA negotiations with the United  Kingdom.  
 
1. ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
 
Question 2  
2. Para 1.6 mentions the trade tensions between the US and CN (or now the US -China Phase one 
deal). Which are the sectors that are most affected for Australia?  
 
RESPONSE: The Aust ralian Government welcomed the announcement of the Phase One trade 
deal between the United States and China. Australia regards it as important that the deal be 
implemented in a manner that treats all trading partners fairly, and protects the integrity of t he 
multilateral trading system.  
 
1.3 Developments in Trade and Investment  
1.3.1 Trends and patterns in merchandise and services trade  
 
Question 3  
3. Para 1.28, Within the Asian emerging markets, where do you see any potential for your exports?  
 
RESPONSE: The Australian Government’s 2017 Foreign Policy White Paper 
(https://www.fpwhitepaper.gov.au/ ) in part deals with the likely future economic growth in the 
Indo-Pacific region (covering Asian emergi ng markets). Australia will continue to benefit from 
the complementarity of our economy with those of our neighbours. Asian economic growth, 
urbanisation and expanding middle classes will sustain or increase demand for Australia’s 
energy and mineral resour ces, where Australia enjoys a comparative advantage. Beyond 
resources, emerging Asia’s transformation is bringing unprecedented opportunities for 
Australian services, including in tourism, education, health and aged care. Australian businesses 
are also acc essing large regional markets by integrating into regional value chains.  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures directly affecting imports  
3.1.3 Tariffs  
3.1.3.1 Bound tariffs  
 
Question 4  
4. Para 3.17 reports that Australia’s participation in the expansion of the WTO Information 
Technology Agreement has slightly lowered its average bound tariff. Given the positive effect 
of trade liberalization in general and taking into account the question of access to medicines 
has Australia  undertaken any steps to join the Pharmaceutical agreement?  
 
RESPONSE: Australia continues to monitor developments on the WTO pharmaceutical 
agreement to inform consideration of possible future participation in the plurilateral 
arrangement.  
 
Question 5  
5. According to paragraph 3.17 Australia has a significant number of non -agricultural products on 
which the tariff is unbound.  
 WT/TPR/M/396/Add.1  
 
- 187 - 
 
  • Could Australia indicate whether it modified its applied MFN duties on those tariff lines in the 
past two years?  
• If yes, could Au stralia provide an exhaustive list of the rates and tariff lines affected as well 
as the rationale for such changes?  
 
RESPONSE: Based on the WTO Secretariat’s calculations reflected in Table 3.1, the percentage 
of Australia’s unbound tariff lines is 4.3 pe r cent of total tariff lines. Australia has not modified 
the applied MFN duties for the WTO unbound tariff lines over the past two years.  
 
3.1.3.2 Applied MFN tariffs  
 
Question 6  
6. Paragraph 3.20 indicates that “the comparatively high bound rates leave consi derable scope for 
Australia to raise its import duties”. Could Australia indicate if it has or intend to raise its MFN 
applied rates in the near future and for which products?  
 
RESPONSE: In recent decades, Australia’s approach has been either to reduce MFN applied 
duty rates or hold them at existing levels. There is no intention to increase MFN applied rates.  
 
3.1.5 Other charges affecting imports  
3.1.5.2  Goods and Services tax (GST)  
 
Question 7  
7. According to paragraph 3.33 the GST legislation was amended on 1 July 2018 to close a tax 
loophole on imports of low -value goods by Australian consumers. Could Australia elaborate on 
this tax loophole and the amendments that were adopted?  
 
RESPONSE: The changes to GST on 1 July 2018 ensure that GST is payab le on certain supplies 
of low value goods (valued at AU$1,000 or less) that are purchased by consumers and are 
imported into Australia, consistent with equivalent supplies made within Australia. Information 
on how these changes were implemented can be foun d at: https://www.ato.gov.au/ 
Business/International -tax-for-business/GST -on-low-value -imported -goods/ . 
 
3.1.5.5. Excise duties  
 
Question 8  
8. Paragraph 3.36 indicates that the excise tax structure distinguishes between the alcoholic 
strength of beers (less than 3%, 3% -3,5%, and over 3,5%), the size of the beer container and 
the type of distribution (pump or pressurized gas delivery system), resul ting in different tax 
rates. Could Australia explain the rationale for including the size of the container and the type 
of distribution as criteria to calculate the level of the tax, since the type of distribution, for 
instance, does not affect the alcohol  content of a beer?  
 
RESPONSE: The lower excise rates applying to beer sold in kegs were originally implemented 
following introduction of the GST in 2000 to ensure that the price of draught beer did not 
significantly increase as a result of the tax changes . The type of distribution component was 
added in 2019 as part of broader reforms to extend the concessional draught beer excise rate 
to draught craft beer, which is usually distributed in smaller kegs. Now, smaller kegs of beer 
(of not less than 8 litres)  are taxed at the same rate as larger kegs of beer (of not less than 48 
litres).  
 
3.1.7 Anti -dumping, countervailing, and safeguard measures  
 
Question 9  
9. Paragraph 3.51 indicates that a six -member Anti -Dumping Review Panel (ADRP) may, upon 
request, review c ertain decisions of the Minister or the Commissioner of the Anti -Dumping 
Commission. Could Australia provide more information on the composition of the Review Panel, 
the decisions that may be subject to review and the scope of review?  
 
RESPONSE: Under Sec tion 269ZM of the Customs Act 1901 , the ADRP must consist of one 
Senior Member and at least two other Members. The Panel is currently constituted by six 
members. Members have extensive experience and knowledge of Australia’s anti -dumping WT/TPR/M/396/Add.1  
 
- 188 - 
 
  system and adminis trative law. A single member will be assigned by the Senior Member to 
undertake a particular review. Decisions subject to review are set out in legislation under 
Section 269ZZA and 269ZZN of the Customs Act 1901 . Reviewable decisions of the Minister are 
decisions to publish (or decide not to publish) a dumping duty or countervailing duty notice, the 
outcome of a review of measures (e.g. to vary the level of duties), to continue (or decide not 
continue) the application of anti -dumping measures  and a decision made following an anti -
circumvention inquiry. Reviewable decisions of the Commissioner include decisions to reject an 
application for measures, to terminate an investigation or anti -circumvention inquiry, to reject 
an application for duty a ssessment or to terminate the examination of an application for duty 
assessment. The ADRP’s power to review is limited to the decision under review, relevant 
information relating to that decision and the grounds accepted by the Panel in its notification of  
review.  
 
3.2 Measures directly affecting exports  
3.2.2 Taxes, charges and levies  
 
Question 10  
10. According to Paragraph 3.59 the Department of Agriculture is reviewing all export certification 
charges and expects to implement new prices towards the end of 2020. Could Australia 
provide additional information on the changes foreseen?  
 
RESPONSE: Export certification fees and charges were last updated in 2015 and are being 
reviewed by the Department of Agriculture, Water and the Environment to ensure the ongoin g 
financial sustainability of the arrangements. The review is also considering the impact of 
changes to the Department's regulatory business model since 2015. The cost to regulate has 
increased across most arrangements due to inflation, increases in volume  of regulatory activities 
and changes in regulatory functions. The specific price impacts on different exporters will differ 
depending on the commodity group being exported, and the conditions imposed by offshore 
countries on export consignments.  
 
3.2 Meas ures Directly Affecting Exports  
3.2.3 Export prohibitions, restrictions and licensing  
 
Question 11  
11. Para 3.63, “An initiative to consolidate and streamline export -related requirements for 
agricultural commodities and food products is currently underway. A r eview conducted in 2015 
of the existing legal framework, i.e. the Export Control Act, 1982, the Australian Meat and Live -
stock Industry Act, 1997, and various orders and regulations, found scope for improvement. 
Discussions are moving forward on the basis of the Export Control Bill, 2017 and draft Export 
Control Rules. The aim is to have a new legal regime in place by 1 April 2020.”  
 
Could Australia provide us with an update on where the discussions about the export -related 
requirements stand? Will the new legal regime be in place by April 2020 as planned?  
 
RESPONSE: The initiative to consolidate and streamline export -related requirements for 
agricultural commodities and food products continues to be progressed. The Export Control Bill 
2019 was introduce d into the Australian Parliament in December 2019. The time for 
commencement of the new export legislation framework has been extended by 12 months to 
1 April 2021. Further information is available on the Department of Agriculture, Water and the 
Environmen t’s website: https://www.agriculture.gov.au/market -access -trade/improving -
export -legislation . 
 
3.2 Measures Directly Affecting Exports  
3.2.5 Export finance, ins urance, and guarantees  
 
Question 12  
12. Para 3.72, “The legal basis for Export Finance Australia remains the Efic Act, 1991. In addition, 
as a corporate Commonwealth entity governed by the PGPA Act, its key priorities and objectives 
are detailed in a Statement  of Expectations issued by the Trade Minister (Section 34). The most 
recent of these was published on 3 April 2019. The scope of the agency's operations has been 
enlarged in recent years.”  
 WT/TPR/M/396/Add.1  
 
- 189 - 
 
  Will this enlargement of the scope of the agency’s operations also  affect the agriculture sector?  
 
RESPONSE: In 2017, Export Finance Australia’s (EFA) legislation and ministerial Statement of 
Expectations were amended to include support for tourism businesses, online businesses, 
exporters of intellectual property and ov erseas direct investment. In 2019, EFA’s legislation and 
ministerial Statement of Expectations were again amended to include finance for overseas 
infrastructure development.  
 
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price co ntrols  
 
Question 13  
13. Para 3.120, could Australia elaborate on the experience with the notification of resale price 
maintenance (how often is it used)? What are the costs for the ACCC?  
 
RESPONSE: We have received five notifications of resale price maintenance (RPM) conduct 
since the RPM notification system was introduced in 2017. The ACCC’s reviews of those 
notifications have taken between two and five months, with teams of four to eight people. The 
ACCC publishes a draft decision and a final decisi on, informed by views of interested parties. 
Interested parties are consulted via a public process in which submissions are published on our 
register, along with the RPM notification. The ACCC has a process to exclude confidential and 
sensitive information  from the public register.  
 
3.3 Measures Affecting Production and Trade  
3.3.5 State trading, state -owned enterprises, and privatization  
 
Question 14  
14. Para 3.142, “Australia notifies the WTO on a regular basis of enterprises it considers to be state -
trading enterprises, according to Article XVII:4(a) of the GATT 1994 and Paragraph 1 of the 
Understanding on the Interpretation of Article XVII. In the period under review, Australia 
submitted two notifications, providing information on the activities of the Rice Marketing Board 
for the State of New South Wales in the years 2014/15 and 2015/16.112 The vesting powers 
of the Board have been extended until 30 June 2022. The Board's exclusive rights are limited 
to the exportation of rice grown in New South Wales. Rice grown and exported from other 
Australian states is not subject to similar statutory restrictions.”  
 
May Australia explain its decision of extending the vesting powers of the Board until June 2022?  
 
RESPONSE: According to WTO notification G/STR/N/15/AUS, th e rationale for the Board 
include:  
 
i. to encourage the development of a competitive domestic market for rice.  
ii. to ensure the best possible returns from NSW grown rice sold outside Australia based 
on the quality differentials or attributes of Australian  grown rice.  
 
The NSW Government undertakes regular reviews of the vesting arrangements. In 2016, the 
NSW Government extended the vesting powers of the Rice Marketing Board to 2022, after an 
industry review concluded the marketing arrangements for rice del ivered net benefits to the 
NSW rice industry and the broader community. The next review will take place this year (2020). 
The findings of that review will be detailed to the WTO upon conclusion via Australia's relevant 
STE notification.  
 
4. TRADE BY SECTOR S 
4.1. Agriculture and Fisheries  
4.1.1 Agriculture  
4.1.1.3 Domestic programmes  
 
Question 15  
15. Para 4.23, “The Government continues to finance a certain number of concessional loan 
schemes. A recent addition to this system is the Regional Investment Corporation (RIC), 
established under the Regional Investment Corporation Act, 2018. The RIC administe rs the 
delivery of farm business loans within a total frame of AUD 2 billion, and national water WT/TPR/M/396/Add.1  
 
- 190 - 
 
  infrastructure loans to eligible state and territory government projects (up to AUD 2 billion in 
total). As at August 2019, the loans provided to farmers throu gh the RIC at concessional rates 
were for farm investments (up to AUD 2 million), drought loans (up to AUD 2 million), and 
AgRebuild loans (up to AUD 5 million), following severe flooding in North and Far North 
Queensland in early 2019.“  
 
Could Australia p rovide us with further information about the number of concessional loan 
schemes they provide?  
 
RESPONSE: The Regional Investment Corporation (RIC) was established by the Australian 
Government to help eligible farm businesses improve their long term stren gth, resilience and 
profitability and to support the development of critical water infrastructure.  
 
The RIC currently offers five loan programs. These are available to farm businesses, farm -
dependent small businesses and State or Territory governments.  
 
The RIC offers the following loan programs to farm businesses:  
 
1. AgRebuild loans to help farmers replant, restock and recover following the North 
Queensland floods of early 2019; and  
2. Farm Investment loans help farmers build and maintain diversity in t he markets they 
supply; and  
3. Drought Loans to help farmer prepare for, manage through and recover from 
drought.  
 
In recognition of the impact of drought on farm -dependent small businesses, the RIC launched 
a loan program called AgBiz. AgBiz supports smal l businesses to manage through and recover 
from the drought.  
 
Water Infrastructure Loans are available to State and Territory governments only. They assist 
with funding construction of major water infrastructure.  
 
4.2 Mining and Energy  
 
Question 16  
16. Chapter 4.2 describes the large size of the energy production in Australia, of which a large 
part is fossil fuel energy.  
• Is Australia supporting the production and consumption of fossil fuels and if yes, what are 
the main subsidies?  
• Furthermore, what s teps does Australia undertake to abide by its G20 -commitment to phase 
out inefficient fossil fuel subsidies?  
 
RESPONSE: The Australian Government’s actual budgetary assistance to mining is published 
in the Productivity Commission’s (PC) 2017 -18 Trade and A ssistance Review: 
https://www.pc.gov.au/research/ongoing/trade -assistance/2017 -18/trade -assistance -review -
2017-18.pdf . 
 
Total Australian Government budgetary assistance in 2017 -18 was AU$14.4 billion; mining 
(including coal) received AU$461.1 million or 3.2 per cent. The ma jority of budgetary assistance 
was provided through the Research and Development (R&D) Tax Incentive and R&D through 
the CSIRO; smaller amounts of assistance were provided for exploration through the Junior 
Minerals Exploration Incentive and Small Business  capital gains measures. Many of the 
measures are not sector -specific.  
 
After deducting for cost penalty of tariffs on imported inputs (AU$2.1 billion in 2017 -18) 
combined assistance was AU$12.3 billion in 2017 -18; mining accounted for AU$359 million or 
2.9 per cent. Source: Table A.11 is found on pages 100 -101 of the PC Review.  
 
Australia is a party to the G20 commitment to remove inefficient fossil fuel subsidies that 
encourage wasteful consumption. We have formally reported back to the G20 indicating tha t 
Australia has no measures within the scope of the commitment.  
 WT/TPR/M/396/Add.1  
 
- 191 - 
 
  4.3 Manufacturing  
 
Question 17  
17. Paragraph 4.64 indicates that Australia has different government programmes that support 
assistance to Australian manufacturers.  
• Could Australia elaborate on  the specific elements regarding the form of the assistance 
provided to Australian manufacturers?  
• What is the form of the assistance provided by the Government?  
• In particular could Australia explain how these assistance programmes comply with its WTO 
obligations?  
 
RESPONSE: The Australian Government carefully considers its WTO obligations when 
developing these programmes. Australia has established an integrated set of policies and 
programs to support manufacturing growth and competitiveness. This includes competitive 
grants programs such as the recent AU$50 million Manufacturing Modernisation Fund and the 
AU$100 million Advanced Manufacturing Fund to support business investment in new 
technologies and workforce upskilling, and  collaborative industry -research infrastructure such 
as the AU$40 million Innovation Manufacturing CRC and the Advanced Manufacturing Growth 
Centre.  
 
Please refer to the grant guidelines for further information on the forms of assistance offered 
through th ese programs:  
• https://www.business.gov.au/Grants -and-Programs/Manufacturing -Modernisation -
Fund. 
• https://www.business.gov.au/Grants -and-Programs/Advanced -Manufacturing -Growth -
Fund.  
• https://www.business.gov.a u/Grants -and-Programs/Research -and-Development -Tax-
Incentive .  
• https://www.business.gov.au/Grants -and-Programs/Entrepreneurs -Programme . 
 
Report by Australia (WT/TPR/G/396)  
1. INTRODUCTION  
 
Question 18  
18. In para 1.6, “The Australian Government also invests in economic cooperation through FTAs 
with developing country part ners in order to realize the benefits for all parties.“  
 
Question: Could the Australian Government give more precision on the form of the economic 
cooperation through FTAs including the areas covered?  
 
RESPONSE: The ASEAN -Australia -New Zealand Free Trade A greement (AANZFTA) is a good 
example of Australia’s commitment to ensuring the benefits of our free trade agreements (FTAs) 
are realised by all Parties, and to maximising the contribution that our FTAs make to 
strengthening regional economic integration.  AANZFTA was Australia's first FTA to include an 
economic cooperation chapter, and the undertaking to provide technical assistance and capacity 
building for developing ASEAN countries to assist in the implementation of the AANZFTA. 
Australia has contributed  over AU$30 million to the AANZFTA economic cooperation program 
since 2010, in support of activities, including, but not limited to, areas of intellectual property 
and patent examinations, sanitary and ph ytosanitary measures, and competition law and policy . 
 
The recently concluded Indonesia -Australia Comprehensive Economic Partnership Agreement 
(IA-CEPA) also includes a standalone chapter on economic cooperation. IA -CEPA is Australia’s 
first bilateral FTA to include an economic cooperation chapter. Under IA -CEPA, Australia and 
Indonesia have committed to establish a framework for trade and investment related 
cooperation through a jointly funded work program, which presents a unique opportunity to 
further strengthen the trade and investment relationsh ip between our two countries.  
 
 
 
 
 
 WT/TPR/M/396/Add.1  
 
- 192 - 
 
  3. TRADE AND INVESTMENT POLICY  
3.8 Thematic Trade Policy Priorities  
3.8.1 E -Commerce/Digital Trade  
 
Question 19  
19. Has the Australian Government developed a cooperation strategy in this field to support DCs 
and LDCs to seiz e the opportunities of digital technologies and participate in shaping global 
rules on e -commerce?  
 
RESPONSE: Australia has not developed a specific cooperation strategy. However, Australia's 
International Cyber Engagement Strategy (2017) (ICES) details ou r approach to digital trade 
and technology for development. The Strategy can be viewed at: 
https://dfat.gov.au/international -relations/themes/cyber -affairs/ai ces/index.html . A report on 
the progress of Australia's implementation of the Strategy can be viewed at: 
https://dfat.gov.au/intern ational -relations/themes/cyber -affairs/aices/chapters/2019_ 
progress_report.html . 
 
As outlined in the strategy, Australia aims to maximise the opportunity for economic growth 
and prosperity through digital trade. To achieve this goal, Australia aims to: shape an enabling 
environment for digital trade, including through trade agreements, harmonisation of standards, 
and implementation of trade facilitation measures; and promote trade and investment 
opportunities for Australian digital goods and services.  
 
Australia also seeks to ensure that digital technologies are used to achieve sustainable 
development and inclusive economic growth in the Indo -Pacific. To achieve this goal, Australia 
aims to: improve connectivity and access to the Internet across the Indo -Pacific, in collaboration 
with international organisations, regional governments and the private sector; encourage the 
use of resilient development -enabling technologies for e -governance and the digital delivery of 
services; and support entrepreneurship, d igital skills and integration into the global 
marketplace.  
  WT/TPR/M/396/Add.1  
 
- 193 - 
 
  Thailand  
PART I: QUESTIONS REGARDING THE REPORT BY WTO SECRETARIAT (WT/TPR/S/396)  
 
“2.23. Australia offers non -reciprocal trade preferences under the Australian System of Tariff 
Preferences (ASTP) to developing countries, least developed countries (LDCs) and Forum Island 
economies (the latter based on the South Pacific Regional Trade and Economic Cooperation 
Agreement). As a result of the removal of the MFN specific duty on import ed used vehicles, through 
the amendment of the Customs Tariff Act, 1995, since 1 January 2018, LDCs and Forum Island 
countries now effectively receive the same duty -free and quota -free treatment for all tariff lines.”  
 
“2.24. The ASTP currently comprises f ive preference categories, i.e. LDCs, Forum Island countries, 
developing countries, developing country status, and developing country category T. These 
economies enjoy preferential access to the Australian market. Australia provides an online version 
of its current tariff classification, containing the lists of preference countries and products, and the 
applicable rates of duty. As at 1 July 2019, 56 developing country members were entitled to "DC" 
rates of duty on 3,171 tariff lines, amounting to a 5% marg in of preference over the MFN rate when 
the MFN rate is 5% or higher. Where the applied MFN rate is less than 5%, the preferential rate is 
0%. Around 110 developing country members are entitled to "DCS" rates of duty on 830 tariff lines, 
and Category T cou ntries are eligible for preferential tariffs, "DCT" rates, on 190 tariff lines. The 
developing country members eligible for these different duty rates are listed in Schedule 1 of the 
Customs Tariff.”  
 
Question 1  
1. What is the criteria for categorizing differ ent types of developing countries under the Australian 
System of Tariff Preferences (ASTP)?  
 
RESPONSE: Australia operates a system of tariff preferences for imports from the worlds’ least 
developed and developing countries. The intent of the Australian Sys tem of Tariff Preferences 
(ASTP) is to support the integration of developing countries into the global trading system as a 
means to promote their economic growth.  
 
The ASTP provides duty -free, quota -free access for least developed countries and provides 
developing countries with duty -free and preferential access on a broad range of goods where 
Australia levies a tariff. To claim a preferential rate under the ASTP, goods are required to meet 
rule of origin requirements.  
 
The ASTP has undergone a number of c hanges since it was first introduced in 1966. The ASTP 
currently comprises five preference categories: Least Developed Country (LDC), Forum Island 
Country (FIC), Developing Country (DC), Developing Country Status (DCS), and Developing 
Country Category T (D CT). There are two divisions for each category which distinguish between 
countries/territories and places. The list of countries/territories and places eligible for DC and 
DCS rates of duty is provided in Schedule 1 of the Customs Tariff Act 1995, a copy o f which can 
be accessed at:  
https://www.abf.gov.au/importing -exporting -and-manufacturing/tariff -classification/current -
tariff.  
 
Prefere nce-granting countries are entitled to establish their own conditions for defining 
developing country beneficiaries in GSP schemes.  Australia is currently undertaking a review 
of the ASTP, including reassessing eligibility requirements for preferential tr eatment.  
 
“3.107. A BIRA for a good or class of goods may be initiated by the Director of Biosecurity if s/he 
believes that the criteria for the BIRA have been met, or upon instruction from the Minister of 
Agriculture. The Director of Biosecurity may choos e to commence a BIRA, for example, upon the 
request of the government of an exporting country or of institutions and traders proposing to import 
plants, animals or other goods in circumstances where import conditions have not been established 
previously. T he Director of Biosecurity must (i) outline opportunities for consultation, and prepare 
and publish an issues paper on the Department of Agriculture website when announcing the 
commencement of the BIRA; (ii) prepare and publish a draft BIRA report on the w ebsite, and allow 
for a public submission period of a minimum of 60 calendar days; (iii) prepare and publish on the 
website the provisional BIRA report, which must include any information or submissions received, 
inputs from the scientific advisory group ( where provided), and findings, including economic WT/TPR/M/396/Add.1  
 
- 194 - 
 
  consequences, associated with the entry, establishment or spread of pest and diseases included in 
the class of goods under review; and (iv) progress the provisional BIRA report as it becomes the 
final BIRA report, unless the Inspector General of Biosecurity is requested to review the process 
used to conduct the BIRA within 30 days of publication of the provisional report. Unless specific 
circumstances apply, the BIRA report must be finalized within 30 months  from the date of publication 
of the notice that the BIRA is commencing.”  
 
Question 2  
2. Please clarify the definition of “specific circumstances”. What circumstances would be 
considered “specific”? In case of the specific circumstances, does Australia determine the exact 
timeframe for each case?  
 
RESPONSE: The ‘specific circumstances’ referred to in paragraph 3.107 of the TPR relate to 
cases where the BIRA (Biosecurity Import Risk Analysis) finalisation may take more than 30 
months from the date of the BIRA commencement notice. These circumstances (outlined in 
Biosecurity Regulation 2016 Part 4, Division 1, s31) include where:  
 
• a review of the BIRA process request has been made (subject to certain conditions, a 
person who does not agree with the process of conducting a BIRA can make this 
request);  
• further information, research or expert advice is necessary to complete the BIRA;  
• a scientific advisory group has been requested to examine and provide comments on 
any aspect of the BIRA; or  
• a biosec urity circumstance of national or international significance has occurred.  
The exact timeframes in these ‘specific circumstances’ are determined by the Director of 
Biosecurity.  
 
“3.112. Australia introduced a new country of origin labelling system on 1 Jul y 2016 that became 
mandatory for "priority food" from 1 July 2018.95 The new system is enforced by the Australian 
Competition and Consumer Commission. The labelling requirements include a country of origin 
statement and a prescribed logo/mark and bar chart . Food with all ingredients grown, produced or 
made in Australia carry a prescribed kangaroo logo. For imported food or food ingredients, the 
marking should include a text and bar chart indicating the proportion of Australian ingredients by 
ingoing weight. ” 
 
Question 3  
3. What is the impact of the new country of origin labelling system? Has the demand for Australian 
goods changed after the new labelling system was implemented?  
 
RESPONSE: The impact of the Country of Origin Food (CoOL) Labelling Information Sta ndard 
2016 (Information Standard) has been to provide consumers with access to clear, consistent, 
and more informative country of origin labels for food —enabling consumers to make more 
informed choices about the food they buy, in line with their personal p references. The reforms 
also provided businesses with increased certainty about what activities constitute —or do not 
constitute —substantial transformation; in addition to providing a new ‘safe harbour’ defence for 
claims that comply with the Information St andard.   
 
The intention of the CoOL reforms was not to influence domestic consumer habits, and the 
Australian Government does not have data measuring the changes in the demand for Australian 
goods since the CoOL reforms were implemented.  
 
“3.218 The Austr alian Border Force (ABF) of the Department of Immigration and Border Protection 
administers border enforcement measures for trade marks and copyrights. Upon acceptance of a 
Notice of Objection lodged by the IPR owner, the ABF may seize and hold imported go ods that 
infringe, or appear to infringe, copyrights or trade marks. The importer must then make a claim for 
release of the seized goods within ten working days, without which the goods will be forfeited. If the 
importer does make a claim for release, the objector has ten working days to either commence legal 
action, or consent to the release of the goods.215 The IPLA 2018 amended the Copyright Act and 
the Trade Mark Act to provide the ABF with more flexibility on how seizure notices are issued, and 
what in formation is to be included on those notices.  
 
 WT/TPR/M/396/Add.1  
 
- 195 - 
 
  Question 4  
4. We note that the Intellectual Property Laws Amendment Act (IPLA) 2018 amended the 
Copyright Act and the Trade Marks Act to provide the Australian Border Force (ABF) of the 
Department of Immigration and Border Protection with more flexibility on how seizure notices 
are issued, and what information is to be included on those notices. In this connection, Thailand 
would like to seek more clarification on the flexibility provided by the said A cts. 
 
RESPONSE: Registered Trademark or Copyright owners can lodge a Notice of Objection with 
Home Affairs. Lodgement of this form gives the Department of Home Affairs officers the 
authority to seize goods suspected of infringing an IPR.  
 
The flexibility provided by the legislation amendments allows seizure notices to be issued by 
any means of communication, rather than only by post or in person, and allows the name and 
address of certain parties to be withheld where confidentiality is desirable.  
 
Page  61  Table  3.11 
Exports subject to licensing or other restrictions, 2019  
Item  Justification  Measure  
Rough diamonds (Kimberley 
Process Certification Scheme 
(KPCS))  
 International commitments  
 Prohibited unless the diamonds are 
transported in a tamper -proof 
container, exported from a country 
participating in the KPCS, and 
accompanied by a valid KP 
certificate  
 
Question 5  
5. According to the information in table 3.11 page 61 “Rough diamonds are prohibited unless the 
diamonds are transported in a tam per-proof container, exported from a country participating in 
the KPCS, and accompanied by a valid KP certificate”. However, the information provided by 
the authorities and ABF in the website (the link below table 3.11 page 61) indicates that “the 
exporter  must retain the original KP certificate for a period of 5 years after the time of 
exportation from Australia. The certificate must be made available to DIIS if requested”. Please 
clarify the process of exporting Rough diamond whether (1) the exporter must  attach a valid 
KP certificate with the product to export or (2) the exporter must keep the KP certificate.  
 
RESPONSE: A rough diamond export must be accompanied by a valid Kimberley Process 
Certificate (KPC) and must be in a tamper -resistant container. Th e Department of Industry, 
Science, Energy and Resources (DISER) sends the  disclaimer below to each applicant once their 
KPC has been granted.  
 
‘Please be aware that the Australian Kimberley Process Certificate and the goods must be 
presented to Customs at least three hours prior to export. Rough diamonds must be exported 
in a tamper resistant container and the Kimberley Process Certificate must accompany the 
shipment during transit and remain valid for the period until the rough diamonds arrive a t the 
designated destination’.  
 
Australian KPC’s are valid for 60 days from the date of issue, so after that 60 -day period, the 
KPC can no longer be used for exports. If an exporter misses the opportunity to export their 
goods within that timeframe, they m ust re -apply for another KPC.  
 
The original KP certificate must accompany the shipment during exportation – without a valid 
KPC the shipment will be seized by the foreign customs authority. The KP certificate must then 
be retained by the importer (not the exporter) for a period of five years after the time of 
importation. The certificate must be presented to DISER if requested.  
 
“4.132. According to the authorities, Australians spend most of their viewing time watching 
broadcast television. However, thi s share continues to decrease, driven by younger Australians' 
demand for online content, including online subscriptions and user -generated content.  
 WT/TPR/M/396/Add.1  
 
- 196 - 
 
  4.133. In 2017, the Broadcasting Legislation Amendment (Broadcasting Reform) Act, 2017 repealed 
two media d iversity and control rules in the Broadcasting Services Act, 1992. It repealed the 75% 
audience reach rule, which prevented an entity from controlling television services that reach in 
excess of 75% of the population. It also repealed the two out of three -control rule, which prevented 
an entity from controlling more than two of the three regulated forms of media (commercial radio, 
commercial television and associated newspapers) within a commercial radio licence area.”  
 
Question 6  
6. Since the share of Austral ian’s watching broadcast television time has decreased due to the 
demand for online content, does Australia have any law regulating the online content which 
might have similar effect as the rules repealed by the Broadcasting Reform Act?  
 
RESPONSE: The Broa dcasting Reform Act repealed the ’75 per cent audience reach rule’ which 
prevented a single controller from controlling commercial broadcast television companies that 
reached more than 75 per cent of the national population, and the ‘2 out of 3 rule’ which  
prevented transactions where the transaction would result in a person being in a position to 
control more than 2 out 3 of the traditional media types, including commercial radio, commercial 
television and print newspapers. These laws only applied to these  media forms and not to online 
services.  
 
Transactions involving media firms, including those providing online services, remain subject to 
general competition rules, administered by the Australian Competition and Consumer 
Commission.  
 
“4.170. In 2018, the Government established the industry -led Beyond Tourism 2020 Steering 
Committee, to shape the next long -term tourism strategy which will commence in January 2021. 
The Committee submitted its report to the Government in December 2018, calling for a strategy to 
increase visitor numbers, trip length and expenditure for all visitors, encourage regional dispersal, 
and empower the tourism industry to thrive in the digital world. This report forms the basis for work 
on the Tourism 2030 strategy, which is led by Aus trade, Tourism Australia and state and territory 
governments. Tourism ministers were to consider the direction of the Tourism 2030 strategy at their 
meeting in October 2019.”  
 
Question 7  
7. Could Australia provide an update on the direction of the Tourism 203 0 strategy?  
 
RESPONSE: The Australian Government Minister for Trade, Tourism and Investment 
considered the direction of the Tourism 2030 strategy with state and territory Tourism Ministers 
in October 2019. The Australian Government continues to develop the Tourism 2030 strategy 
in consultation with state and territory governments and industry. At present there is no 
timeframe nominated for the release of the strategy, but it will commence on 1 January 2021.  
 
“4.20 It states in this paragraph that  “The current drought policy in Australia is based on a 1992 
policy document of the Government as well as a formal cooperation framework between the 
Government and state and territory governments. The 1992 National Drought Policy aims at farmers 
and rural communities adopting self - reliant approaches to managing climate variability, the 
maintenance and protection of the  resource base during periods of climatic stress, and the early 
recovery of agricultural and rural industries consistent with long -term sust ainable levels. Starting in 
June 2018, the Government announced a series of measures to support farmers in drought -affected 
areas. These measures (Box 4.1) were complemented by additional support from state governments 
(Box 4.2).”  
 
Box 4.1 Government drought assistance  
Government drought assistance measure (as at September 2019)  
Measure  
Farm Allowance  Nature and recipient assistance  
Provides farming families experiencing financial hardship with 
assistance, through planning and training for long-term financial 
improvements as well as income support for up to four years  
 
 
 WT/TPR/M/396/Add.1  
 
- 197 - 
 
  Question 8  
8. Please further explain about financial measures taken to ease the cost of living for agricultural 
household as appears in Box 4.1, specifically income support measure including criteria, 
methods, conditions, and operation procedures.  
 
RESPONSE: When paid at the maximum rate Farm Household Allowance provides AU$250 per 
week for a maximum of 4 years. Income from any source that the person receives while on 
payment is likely to reduce this figure.  
 
The Farm Household Allowance criteria, methods, co nditions and operation procedures are 
publically available at:  
https://www.servicesaustralia.gov.au/individuals/services/centrelink/farm -household -
allowance . 
 
Further guidance is provided in the Farm Household Allowance guidelines publically available 
at: 
https://www.agriculture.gov.au/ ag-farm-food/drought/assistance/farm -household -
allowance/guidelines . 
 
“4.69   Industry 4.0 is one of the Australian industries response to the global opportunities arising 
from digital technologies. The initiative focuses on the opportunities arising in ma nufacturing from 
investments in digital technologies and from the integration of these   new technologies into a range 
of manufacturing processes and supply chains. The Government provided AUD 6 million in 2018/19 
to establish Industry 4.0 test labs to pre pare businesses to transition to the smart factories of the 
future. Test labs are being established at the University of Queensland, the University of Western 
Australia, the University of South Australia, Swinburne University of Technology, the University of 
Technology Sydney, and the University of Tasmania. This pilot programme is a result of the principles 
and framework explored by the Government's Industry 4.0 Taskforce for the adoption of Industry 
4.0 in Australia.”  
 
Question 9  
9. Industry 4.0 Test Labs ha ve played the key role in adopting Industry 4.0 in Australia. In this 
regard, in which context that Industry 4.0 Testlabs have contributed to the transition to Industry 
4.0 in Australia such as Technologies, Solutions or Workforce and in what ways?  
 
RESPONSE: The AU$6 million Industry 4.0 Testlabs for Australia pilot program prepares 
businesses to transition to the smart factories of the future. The Testlabs are currently being 
rolled out by six universities across Australia. ( https://www.industry.gov.au/data -and-
publications/industry -40-testlabs -in-australia ) 
 
Building on the recommendations of the Industry 4.0 Testlabs in Australia report, the Testlabs : 
• provide a physical space for businesses and researchers to trial, explore and showcase 
Industry 4.0 technologies and processes  
• enable educational institutions and industry, particularly small and medium enterprises, 
to collaborate  
• develop skills needed t o take full advantage of opportunities presented by Industry 4.0.  
 
“22.  Manufacturing, which accounts for nearly 6% of GDP and 7.4% of employment, experienced 
declining competitiveness due to high costs for energy and other inputs, and tighter credit cond itions. 
However, certain indicators show a manufacturing expansion since 2016. Various government 
programmes provide support at different stages of a firm's lifecycle. Among the stated objectives 
are the transition of businesses to high -value, high -growth activities; the promotion of innovation 
and advanced manufacturing; and the development of collaborative business networks (hubs) for 
SMEs.”  
 
Question 10  
10. What are the Australian government’s strategies to promote development hub for SMEs, and 
are there any  specific incentives for foreign investors?  
 
RESPONSE: The Small and Medium Enterprises (SME) grant supports SME export hubs 
developing local, regional and Indigenous brands. The hubs will work with Growth Centres in 
each sector to take advantage of export  opportunities.  WT/TPR/M/396/Add.1  
 
- 198 - 
 
  This grant assists with the set up and/or running of SME export hubs in the following six growth 
sectors:  
- Advanced Manufacturing  
- Cyber Security  
- Food and Agribusiness  
- Medical Technologies and Pharmaceuticals  
- Mining Equipment, Technology and Services  
- Oil, Gas and Energy Resources.  
 
It also supports SME development by:  
- assisting with export opportunities  
- working with the Growth Centres.  
The available grant amount is between AU$150,000 and AU$1.5 million. It can cover up to 50 
per cent of eligible project costs.  
 
The maximum grant period is two years five months and projects have to be completed by 30 
June 2022.  
 
Page 49 -50 
3 TRADE POLICIES AND PRACTICE BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Other charges affecting imports  
3.1.5.6 Other charges and levies  
3.41. Many primary products are subject to excise levies (paid by the producer) when destined for 
the domestic market, or customs charges if the commodities are exported or imported. These levies 
are colle cted to fund five main purposes. Levies and charges funding for research and development 
(R&D), and marketing are distributed to 15 commodity -based R&D corporations. Levies and charges 
for national residue surveys are paid to the Department of Agriculture.  Levies and charges for 
biosecurity activities or emergency response purposes are directed to Plant Health Australia (PHA) 
or Animal Health Australia (AHA). PHA and AHA invest in biosecurity activities and emergency 
responses with industry through a deed a rrangement. These arrangements are made at the request 
of agricultural, forestry and fisheries industries to fund shared industry priorities. The Department 
of Agriculture collects, administers and disburses the levies and charges on behalf of primary 
industries, and co -invests in R&D activities by providing matching funding. In 2017/18, the 
Department disbursed AUD 839.8 million in levies, charges and Commonwealth matching payments 
to the 18 levy recipient bodies.  
 
3.42. For commodities destined for the do mestic market, the excise levies are imposed in accordance 
with the Primary Industries (Excise) Levies Act, 1999, the Primary Industries (Excise) Levies 
Regulations, 1999, the National Residue Survey (excise) Levy Act, 1998, and the Horse Disease 
Response Levy Act, 2011, and subordinate legislation. Customs charges are imposed under the 
Primary Industries Customs Charges Act, 1999 and the National Residue Survey (Customs) Levy 
Act, 1998, and subordinate legislation. The basic reporting and collection arrang ements for the 
producer levies are laid down in the Primary Industries Levies and Charges Collection Act, 1991, and 
the Horse Disease Response Levy Collection Act, 2011, and their subordinate legislation. As levies 
and charges are imposed by the Government  at the request of primary industry commodity sectors, 
those sectors are responsible for consultation and demonstrating majority industry support for each 
levy or charge proposal.  
 
Question 11  
11. Could Australia provide more information on practice about exci se levies and customs charges, 
such as list of commodities and clearly state the five main purposes mentioned in the report?  
 
RESPONSE: Australian primary industries that choose to invest in the levies system prescribe 
the amount of levy or charge applied to a commodity under the Primary Industries (Customs) 
Charges Act 1999 , Primary Industries (Excise) Levies Act 1999 , National Residue Su rvey 
(Customs) Levy Act 1998  and the National Residue Survey (Excise) Levy Act 1998 and their 
subordinate legislation.  
 
The proportion of how a levy or charge is directed is prescribed in the relevant legislation. The 
five main purposes are biosecurity pr eparedness, emergency plant pest and animal disease 
responses, residue testing, marketing, and research and development.  WT/TPR/M/396/Add.1  
 
- 199 - 
 
  Information on the levy and charge rates is available on the Department’s website 
https://www.awe.gov.au/ag -farm-food/levies/rates . 
 
PART II: QUESTIONS REGARDING THE REPORT BY AUSTRALIA (WT/TPR/G/396)  
“ 2.30 In addition, in October 2016 the Australian Government established a Professional Services 
Mutual Recognition Unit to work with pro fessional bodies and regulators in Australia and other 
countries to negotiate mutual recognition agreements of professional qualifications and licensing. 
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 
profile of Australian professionals, and improve the two -way movement of professionals. A total of 
17 MRAs have been signed since 2016 across four profession s (accountancy, architecture, 
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).”  
 
Question 12  
12. Are there any othe r countries in the process of MRAs negotiations with Australia? Will additional 
professions besides accountancy, architecture, engineering and quantity surveying, be included 
in the future MRAs?  
 
RESPONSE: In Australia, MRAs are negotiated by industry peak  bodies independent of 
government. Hence, the Government plays an advisory and facilitative role in increasing the 
finalisation of MRAs. The Australian Government is working with Australian professional services 
peak bodies to increase their adoption of MR As with counterparts in markets of interest to them. 
In addition to the countries identified in the report, Australian professional bodies either have 
MRAs or are currently negotiating MRAs with Chinese Taipei, India, Ireland, Japan, Mexico, New 
Zealand, S outh Korea, and the UAE counterparts. In addition to the professions identified, 
Australia’s actuarial services and veterinary services sectors have also finalised MRAs prior to 
2016 with overseas counterparts. Government policy is to encourage MRAs across  all 
professions that have an interest in pursuing opportunities internationally.  
 
There is also another related ongoing initiative of collaboration with industry and is expected to 
continue through 2020 and beyond. Greater details of industry recommendati ons and the 
Australian Government’s response is available from the following website: 
https://dfat.gov.au/trade/services -and-digital -trade/Pages/services -export -action -plan.aspx . 
 
3.4 Bilateral and Regional FTAs Concluded in the Review Period  
3.5 Bilateral and Regional FTAs Under Negotiation  
3.6 Bilateral or Regional FTAs Entering into Forc e or Reviewed During the Review Period  
 
Question 13  
13. Apart from FTAs concluded, under negotiation, and entering into force, will there be other new 
FTAs that Australia plan to negotiate in the future.  
 
RESPONSE: Australia is currently focussed on the signature of the Regional Comprehensive 
Economic Partnership (RCEP), concluding our FTA with the European Union, and commencing 
FTA negotiations with the United Kingdom.  
 
“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 target 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 for trade reached 23.3% (or AUD 941 million) of the total 
budget. The target was met again in 2018 and 2019.”  
 
Question 14  
14. Would the Australia consider increasing t he target set spending of development budget on aid 
for trade beyond the current 20%? And would Australia expand aid budget to other group of 
recipient countries besides LDCs in the future?  
 
RESPONSE: On 10 December 2019, Australia’s Minister for Foreign A ffairs and Minister for 
International Development and the Pacific jointly announced that the Australian Government is 
preparing a new international development policy and performance framework. The new WT/TPR/M/396/Add.1  
 
- 200 - 
 
  development policy will set out future priorities for Australia’s aid budget, including our 
approach to trade and development, and the regions in which we work. The new policy is 
currently being developed, and is expected to be released in mid -2020. We already work with 
other recipient countries besides LDCs.   
  WT/TPR/M/396/Add.1  
 
- 201 - 
 
  Turkey  
THE SECRETARIAT REPORT  
 
1. Economic Environment, 1.3. Developments in Trade and Investment, 1.3.1. Trends and 
patterns in merchandise and services trade, pg. 19, 1.24.  
 
It is stated in the Secretariat Report that  “Measured in US dollars, merchandise exports declined 
from USD 252.9 billion in 2013 to USD 187.5 billion in 2015, before rising to USD 257.4 billion in 
2018. Over the same period, merchandise imports followed the same trend. As per balance -of-
payments da ta, total merchandise trade (sum of exports and imports) declined from the equivalent 
of 33.6% of GDP in 2013/14 to 31% in 2015/16, before rebounding to 33.4% in 2017/18. ”  
 
Question 1  
1. Turkey has observed relatively strong increases in merchandise exports of Australia in 2019 
despite the slowdown in the global economy and global trade. Could Australia provide detailed 
information about the reasons behind this increase?  
 
RESPONSE: The majority of Australia’s merchandise trade for exports comes from the mineral 
products sector, and in terms of percentage this sector’s share of Australian merchandise trade 
for exports has increased from 57.2 per cent to 58.2 per cent from 2013 to 2018, which is a 
US$2.6 billion increase in that sector alone.  As such, the overall increase in merchandise trade 
for exports can be directly linked to the mineral products sector.  
 
Australia’s resources and energy exports reached a record AU$279 billion in 2018 –19. 
 
Despite recent challenging market conditions, Aust ralia’s resource and energy export earnings 
have grown as a result of a relatively low Australian dollar and growing export volumes.  
 
Australia has benefited from large investments in its mining sector over the last two decades, 
in addition to a strong his tory of innovation and productivity gains in the mining sector, which 
has translated into mining output growth, particularly for iron ore and LNG.  
 
Australia’s LNG exports have grown substantially in recent years. A wave of LNG investment in 
Australia saw seven new LNG projects commissioned between 2009 and 2012, at a total cost 
of over US$200 billion. The ramp up of these projects has seen Australia’s LNG exports earnings 
reach AU$49 billion in 2019. Export volumes reached 77 million tonnes, making Austral ia the 
world’s largest LNG exporter in 2019.  
 
3. Trade Policies and Practices by Measure, 3.1. Measures Directly Affecting Imports, 
3.1.6. Import prohibitions, restrictions, and licensing, pg. 55, 3.45.  
 
It is stated in the Secretariat Report that ‘‘ The measures imposed on a wide range of restricted 
imports are detailed in the Customs (Prohibited Imports) Regulations, 1956, established under the 
Customs Act, 1901.44 According to the regulations currently in force, an absolute prohibition on 
importatio n (Schedule 1) relates only to specific dangerous dog breeds (and related advertising 
materials). Schedule 2 lists goods that are prohibited to import unless written permission has been 
granted by the responsible minister or an authorized person, e.g. cosm etics and toys that include 
toxic materials in quantities that exceed established tolerances. Other schedules to the regulations 
concern the compliance with specified conditions, restrictions or requirements for certain imported 
goods (Schedule 3) or the e nforcement of provisions relating to drugs; firearms, weapons and 
weapon parts; glazed ceramic ware; certain organochlorine chemicals; chemical compounds; and 
ODSs (Schedules 4 to 13). In some instances, when non -automatic licensing is applied, a two -step 
procedure is followed, whereby the prospective importer first requests authorization to be 
acknowledged as a legal importer of the goods in question, and subsequently files applications for 
import permits for individual consignments of the said goods. The regulations oblige entities and 
persons to obtain import permits from the relevant permit -issuing authority prior to importation, so 
that all relevant documents may be presented to the ABF at the time of clearance through Customs. 
In 2009, the Australian C ustoms Service introduced some flexibility, by allowing additional time to 
importers/owners genuinely not aware of the need to, or unable to, obtain the required permission 
in advance. In such instances, Customs may detain the goods for up to 30 days while  permission is WT/TPR/M/396/Add.1  
 
- 202 - 
 
  sought. However, Customs will seize the goods in accordance with the Customs Act, should the 
request be refused or no permission be sought.’’  
 
Question 2  
2. Australia has imposed prohibitions on air cargo originated from, or transited through T urkey on 
October 26, 2017, which applied to electromechanical devices that weigh over 1 kilogram and 
currently in force. Could Australia provide detailed information about the legal basis of 
prohibition on air cargo originated from, or transited through Tu rkey and inform when this 
implementation will cease to apply?  
 
RESPONSE: The prohibition was implemented through a legislative instrument made under 
subsection 65B(1) of the Aviation Transport Security Act 2004 . 
 
The Australian Government, through the Depa rtment of Home Affairs continues to monitor 
aviation security developments in Turkey. The Department of Home Affairs will provide advice 
to the Australian Government on adjustments to Australia's air cargo security arrangements as 
necessary.  
 
4. Trade Poli cies by Sector, 4.2. Mining and Energy, 4.3.1. Mining, pg. 110, 4.50.  
 
It is stated in the Secretariat Report that “On 1 December 2015, new foreign investment laws came 
into force. The new regime features, inter alia, stronger compliance and enforcement provisions, 
and higher screening thresholds for certain types of investment. Significant changes relevant to the 
mining and energy sector include an increase, from 15% to 20%, of what constitutes a substantial 
interest. In the case of investmen t in sensitive businesses, the AUD 266 million threshold for 
screening is also applicable to FTA partners.”  
 
Question 3  
3. Could Australia elaborate more on this new investment regime including sensitive businesses 
with respect to its impact on market access conditions for the interested foreign business 
circles?  
 
RESPONSE: The Australian Government welcomes foreign investment. Previous changes to 
Australia’s foreign investment framework have had no discernible impact on foreign investments 
inflows. For instan ce, following the introduction of fees in 2015, non -residential real estate 
investment increased from AU$131.1 billion in 2014 -15 to AU$175.4 billion in 2015 -16.  
 
4. Trade Policies by Sector, 4.4. Services, 4.4.1. Financial services, 4.4.1.1. Banking sect or, 
pg. 122, 4.100.  
 
It is stated in the Secretariat Report that “… The authorities stated that a number of the 
recommendations made in the Productivity Commission report have already been implemented or 
are at an advanced stage of development, including implementing open banking as part of the 
broader Consumer Data Right, mandating comprehensive credit reporting to give new entrants and 
smaller lenders access to a deeper, richer set of data, enabling them to better serve customers and 
assess bor rowing capacity ....”  
 
Question 4  
4. Planning to invest more in open banking initiatives, could Australia comment on how it will deal 
with possible security concerns for local banks and fintechs, while sustaining transparency and 
open communication? Could Aus tralia further explain its investment plans in open banking 
initiatives in terms of data privacy?  
 
RESPONSE: The Australian Government has legislated a Consumer Data Right (CDR) to give 
Australians greater control over their data, empowering customers to c hoose to share their data 
with trusted recipients only for the purposes that they have authorised. The CDR will be 
implemented initially in the banking sector, to be followed by the energy and 
telecommunications sectors, and then rolled out economy -wide on  a sector -by-sector basis.  
 
The CDR operates under a multi -regulator model, comprising the Australian Competition and 
Consumer Commission (ACCC) as lead regulator, the Office of the Australian Information 
Commissioner (OAIC) focussing on privacy issues, an d a new Data Standards Body (DSB).  WT/TPR/M/396/Add.1  
 
- 203 - 
 
  Part of the implementation of the CDR requires the creation of common technical standards 
making it easier and safer for consumers to access data held about them by businesses, and – 
if they choose to – share this data vi a application programming interfaces (APIs) with trusted, 
accredited third parties. These technical standards are developed and maintained 
collaboratively and transparently and are openly licensed for anyone to access and use. The 
DSB is responsible for as sisting the Data Standards Chair, in the development of common 
technical standards to allow Australians to access data held about them by businesses and direct 
its safe transfer to others. The DSB has consulted extensively with the banking industry to make  
sure these standards work for banks from a business operations perspective, whilst also 
maintaining high levels of security governing the transfer of consumer data within the CDR 
ecosystem.  
 
The ACCC, the lead regulator of the CDR, consulted extensively with industry and consumer 
groups to develop and implement the CDR Rules regulating this system, and the transfer of 
data within it. The CDR Rules require that the CDR ecosystem is essentially a closed system, 
meaning that the holders of the data (in the e xample of open banking, this will be the banks) 
will transfer data directly to the business requesting it, who will then use the data within their 
own system to provide a service to their customer. This closed system relies on the existing 
data security of  firms and businesses will only be accredited to receive consumer data if they 
can demonstrate robust data security. Recognising a need for transparency, however, there are 
strict regulations around how firms will use a consumer’s data.  
 
The CDR Rules spe cify that a request for consumer data can only be initiated with consent from 
the consumer, which they can withdraw at any time. As part of that consent, the business must 
specify:  
• the types of data to be collected;  
• the specific uses of that data;  
• a period over which that data is to be collected and used, up to a maximum of 12 
months, including whether CDR data may be:  
• collected on a single occasion and used over a specified period of time; or  
• collected and used ov er a specified period of time.  
 
Once data has become redundant through withdrawal of consent, conclusion of the service or 
expiration of the time specified, the business must de -identify the data or delete it if the 
consumer elects. This will ensure the on going transparency of how data is used and the privacy 
of the consumer once the customer -to-business relationship has concluded. There will be the 
option for consumers to receive a copy of their own data, however they will then be responsible 
for who they give it to.  
 
There are added complexities to this, such as the position of intermediaries in data security. 
The ACCC recognises the important role of intermediaries in the financial services sector in 
facilitating the efficient and secure collection of dat a. As such, Australia is currently investing 
resources to consult on the role of intermediaries and integrate this process into the CDR, thus 
allowing for a better understood and secure process to transfer data in line with current industry 
processes.  
 
There is also a set of CDR privacy safeguards that require some broad privacy and transparency 
requirements such as requiring CDR participants to:  
• have up -to-date and open policies describing how they manage CDR data;  
• not use CDR data for direct marketing;  
• notify the consumer when they have disclosed their data; and  
• de-identify CDR data.  
 
The privacy safeguards have been finalised following extensive consultation with industry and 
set out how businesses must protect consumers’ data under the CDR. They build on Australia’s 
existing privacy framework and provide detailed guidance for businesses handling consumers’ 
data in the new system to ensure it is protected.  
 
 
 
 WT/TPR/M/396/Add.1  
 
- 204 - 
 
  4. Trade Policies by Sector, 4.4. Services, 4.4.3. Transport, 4.4.3.1. Maritime transport, 
pg. 130, 4.153.  
 
It is stated in the Secretariat Report that  “A range of tax incentives may be available in respect of 
operations associated with the shipping industry. The incentives are designed to encourage 
investment in the industry, and to encourage the development of sustainable employment and skills 
opportunities for Australian seafarers. The incentives include the Shipping Exempt Income Tax 
incentive for Australian operators of Australian -registered eligible vessels on qualifying shipping  
income; accelerated depreciation and roll -over relief for Australian corporate owners of Australian -
registered eligible vessels; the Seafarer Tax Offset for Australian corporate employers who employ 
eligible Australian seafarers on overseas voyages perfor med by Australian -registered eligible 
vessels; and the exemption from the royalty withholding tax for foreign owners of eligible vessels 
leased under a bareboat or demise charter to an Australian resident company.”  
 
Question 5  
5. Is there any qualitative anal ysis to calculate the overall impact of these incentives? If so, could 
Australia provide further information about the analysis?  
 
RESPONSE: No, there is none available.  
 
4. Trade Policies by Sector, 4.4. Services, 4.4.4. Tourism, pg. 133, 4.172.  
 
It is st ated in the Secretariat Report that  “The Tourism Major Project Facilitation (TMPF) service was 
specifically developed for tourism investments. The TMPF service within Austrade provides investors 
with a central contact person in the Government to help guide  them through both Australian and 
state or territory government approval processes. The TMPF service works in cooperation with 
Australian, state and territory  government agencies to process approvals in a streamlined and 
efficient manner. Similarly, the Re gional Tourism Infrastructure Investment Attraction Strategy is a 
five-year (2016 -21) plan between Austrade and Tourism Australia to work with state, territory and 
local governments to create an environment conducive to attracting FDI into the regional tou rism 
infrastructure.”  
 
Question 6  
6. Could Australia explain the initial results of the Regional Tourism Infrastructure Investment 
Attraction Strategy and its impact on FDI?  
 
RESPONSE: The Australian Government works closely with all levels of government to 
implement tourism investment and regulatory reform measures. The report card on these 
initiatives is available at: https://www.austrade.gov.au/Australian/Tourism/Policy -and-
Strategy/Infrastructure -and-Investment/regulatory -reform . Information on increased 
international traffic and utilisation of investment data, marketing resources and industry 
updates is accessible from the online tourism investment portal at 
http://www.tourisminvestment.com.au . 
 
The Australian Government does not report on the Regional To urism Infrastructure Investment 
Attraction Strategy's individual projects under assessment by investors due to their commercial -
in-confidence nature.  
 
THE GOVERNMENT REPORT  
2. Economic Policy, 2.4. Economic Policy Developments, 2.4.6. Developments in the D igital 
Economy, pg. 8, 2.34.  
 
It is stated in the Government Report that   “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. The strategy details how Australia can 
maximi ze the opportunities of technological change by focusing on four key areas: 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. ” 
 
 
 WT/TPR/M/396/Add.1  
 
- 205 - 
 
  Question 7  
7. Could Australia elaborate on the context of provisions related to the national strategy for 
Australia’s Tech Future?  
 
RESPONSE: In December 2018 the Australian Government released its digital economy strategy 
– Australia’s Tech Future. The strategy shows how digital technology can be applied to provide 
benefits to different industry sectors, including agriculture, health, education and manufacturing. 
The strategy highlights the signific ant work already happening across Government and identifies 
further action required to ensure all Australians can thrive in a global digital economy by focusing 
on four key areas:  
• People: developing digital skills and ensuring everyone can participate  
• Services: how government can better deliver digital services  
• Digital assets: building infrastructure and ensuring high -quality, secure data is 
available  
• Enabling environment: to facilitate investment, identify digital trade opportunities, and 
ensure regulation s encourage innovation and growth.  
 
The strategy can be viewed at www.industry.gov.au/aus traliastechfuture . 
 
3. Trade and Investment Policy, 3.4. Bilateral and Regional FTAs Concluded in the Review 
Period, pg. 13, 3.33.  
 
It is stated in the Government Report that “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.”  
 
Question 8  
8. Could Australia explain whether this target coverage will be met by increasing bil ateral trade 
volume with existing FTA partners? Does Australia have any plans for establishing new FTA 
networks? If so, with which countries?  
 
RESPONSE:  
The Australian Government has committed that around 90 per cent of Australia's two -way trade 
will be c overed by FTAs by 2022. It is pursuing this commitment through the conclusion of free 
trade agreements under negotiation and planned, with a focus on signature of the Regional 
Comprehensive Economic Partnership (RCEP), and conclusion of the Australia -EU FT A, and the 
Australia -UK FTA.  
  WT/TPR/M/396/Add.1  
 
- 206 - 
 
  Ukraine  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT ( WT/TPR/S/396)  
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.2 Regional and preferential agreements  
2.3.2.2 Preferential trade agreements  
Page 30 (paragraphs 2.23 – 2.24)  
 
The Report describes the Australian System of Tariff Preferences (ASTP), under which Australia offers 
non-reciprocal trade preferences to five preference categories, i.e. LDCs, Forum Island countries, 
developing  countries, developing country status, and developing country category T. These 
economies enjoy preferential access to the Australian market. As at 1 July 2019, 56 developing 
country members were entitled to “DC” rates of duty on 3,171 tariff lines, amount ing to a 5% margin 
of preference over the MFN rate when the MFN rate is 5% or higher. Where the applied MFN rate is 
less than 5%, the preferential rate is 0%. Around 110 developing country members are entitled to 
“DCS” rates of duty on 830 tariff lines, an d Category T countries are eligible for preferential tariffs, 
“DCT” rates, on 190 tariff lines.  
 
Questions 1 -5 
1. Could Australia, please, clarify the rationale behind establishing three classes of developing 
countries in relation to which special rates (marked as “DC”, “DCS” and “DCT”) apply under the 
ASTP?  
 
RESPONSE: Australia operates a system of tariff preferences for imports from the worlds’ least 
developed and developing countries. The intent of the Australian System of Tariff Preferences 
(ASTP) is to support the integration of developing countries into the global trading system as a 
means to promote their economic growth.  
 
The ASTP provides duty -free, quota -free access for least developed countries and provides 
developing countries with duty -free a nd preferential access on a broad range of goods where 
Australia levies a tariff. To claim a preferential rate under the ASTP, goods are required to meet 
rule of origin requirements.   
 
The ASTP has undergone a number of changes since it was first introduc ed in 1966. The ASTP 
currently comprises five preference categories: Least Developed Country (LDC), Forum Island 
Country (FIC), Developing Country (DC), Developing Country Status (DCS), and Developing 
Country Category T (DCT). There are two divisions for e ach category which distinguish between 
countries/territories and places. The list of countries/territories and places eligible for DC and 
DCS rates of duty is provided in Schedule 1 of the Customs Tariff Act 1995, a copy of which can 
be accessed at: https://www.abf.gov.au/importing -exporting -and-manufacturing/tariff -
classification/current -tariff.   
 
Preference -granting countries are entitl ed to establish their own conditions for defining 
developing country beneficiaries in GSP schemes.  Australia is currently undertaking a review 
of the ASTP, including reassessing eligibility requirements for preferential treatment.  
 
2. Is there any difference  in application mechanism of “DCS” and “DCT” rates of duty in comparison 
with “DC” rates (please, specify, if so)?  
 
RESPONSE: To claim a preferential rate under the ASTP, the relevant preference scheme is 
required to be indicated in the Import Declaration (B650). Eligible goods are required to meet 
rule of origin requirements.  
 
3. What are the criteria for developing countries to be included in the list and what steps should 
an interested developing country take to become a beneficiary of the ASTP under each c lasses?  
 
RESPONSE: Preference -granting countries are entitled to establish their own conditions for 
defining developing country beneficiaries in GSP schemes.  Australia is currently undertaking a 
review of the ASTP, including reassessing eligibility requir ements for preferential treatment.  
 WT/TPR/M/396/Add.1  
 
- 207 - 
 
  4. Would Australia, please, inform on the grounds for reviewing the list of developing countries 
eligible for the ASTP, in particular to “DCS” rates of duty, and Australia`s plans concerning its 
amendment?  
 
RESPONSE: Prefer ence-granting countries are entitled to establish their own conditions for 
defining developing country beneficiaries in GSP schemes. Australia is currently undertaking a 
review of the ASTP, including reassessing eligibility requirements for preferential tr eatment.  
 
5. Could Australia also explain whether Australian law provides special provisions on procedures 
of the government decisions in this sphere?  
 
RESPONSE: Preference -granting countries are entitled to establish their own conditions for 
defining developing country beneficiaries in GSP schemes.  The list of countries/territories and 
places eligible for DC and DCS rates of duty is provided in Schedule 1 of the Customs Tariff Act 
1995, a copy of which can be accessed at: https://www.abf.gov.au/importing -exporting -and-
manufacturing/tariff -classificatio n/current -tariff. 
 
2.4 Investment Regime  
Pages 32 - 33 (Para 2.36)  
The Report mentions changes in the foreign investment regime since 2015 that have covered such 
area as agricultural land. Respective changes include increased scrutiny of agricultural investments 
and the implementation of a register for foreign ownership o f agricultural land, the requirement for 
the sale processes involving foreign purchases of agricultural land to be open and transparent.  
 
Question 6  
6. Would Australia, please, provide more information on the recent changes in the area of 
agricultural land, including the openness and transparency requirement for the sale processes, 
and share its view concerning possible influence of these changes on foreign investors and 
national security needs?  
 
RESPONSE: Over the last five years, Australia has made three ke y changes to the treatment of 
agricultural land under its foreign investment framework.  
• The screening threshold for foreign purchases of agricultural land was reduced from 
AU$252 million to AU$15 million with effect from 1 March 2015.  
• To provide greater t ransparency on foreign ownership in Australia, the Government 
established agricultural land (announced in May 2015) and water entitlement registers 
(announced in July 2017), and has reported on each.  
• On 1 February 2018, the Government announced that foreig n investors will need to 
demonstrate that there has been an open and transparent sale process if they propose 
to buy agricultural land. The ‘Australian opportunity’ requirement aims to ensure that 
Australian bidders have had an opportunity to participate i n the sale process.  
The requirement, which is part of the national interest test, only applies to agricultural land that 
is intended to be used for a primary production business or residential development. There are 
two general exceptions to the requireme nt:  
• Proposals where the target entity is already a foreign person, or the target land is 
already held by a foreign person, and there is no change in control; and  
• Acquisitions that allow Australian investors to participate in a significant way.  
Please see  Foreign Investment Review Board guidance note 17 for further details: 
https://firb.gov.au/guidance -resources/guidance -notes/gn17 ]. 
 
The Australian opportunity requirement is not re lated to national security, which is another 
national interest factor that Australia considers when assessing foreign investment proposals. 
For further information please see Australia’s foreign investment policy: 
https://firb.gov.au/sites/firb.gov.au/files/2018/12/1 -January -2019-Policy_.pdf ].  
 
The introduction of the policy does not appear to have affected demand for foreign investment 
in Australian agricultural land, which has remained strong since it was introduced. The third 
Register of Foreign Ownership of Agricultural Land report shows that at 30 June 2018 foreign 
investors held 52.6 million hectares of agricultural land in Australia, up from 50. 5 million 
hectares a year earlier.  
 
 WT/TPR/M/396/Add.1  
 
- 208 - 
 
  Page 33 (Para 2.37)  
The Report notes, that changes in the foreign investment regime were shaped by public and political 
concerns about foreign investment, but also by calls for further clarity and certainty from foreign 
investors. Compliance efforts were strengthened to meet public expectations and to respond to 
intelligence and national security needs. This is most pronounced in residential real estate.  
 
Question 7  
7. Could Australia elaborate on public and politica l concerns about foreign investment that shaped 
relevant changes in the foreign investment regime for the purchase of agricultural land?  
 
RESPONSE: Over the last five years, changes to Australia’s foreign investment review 
framework balance the need to wel come foreign investment against the need to reassure the 
public that the investment is not contrary to Australia’s national interest. Lower agricultural land 
and agribusiness screening thresholds allow the Government to screen an increased number of 
propos ed foreign investments on a case -by-case basis against the national interest test.  
 
The open and transparent sale process requirement was introduced in response to public 
concerns regarding the ability of Australians to participate in the sale process of agricultural 
land acquisitions.  
 
Page 33 (Para 2.38)  
The Report states, “Proposals for foreign investment are sent to the FIRB, which analyses them and 
makes recommendations to the Treasurer within set time -frames.”  
 
Questions 8 -11 
8. Could Australia kindly specify how the Foreign Investment Review Board (FIRB) analyses 
proposals for foreign investments in the framework of the screening process?  
 
RESPONSE: The Australian Government welcomes foreign investment. The Foreign 
Acquisitions and Takeovers Act 1975  empowers the Treasurer to prohibit an investment if 
satisfied it would be contrary to the national interest. The Government has provided general 
guidance on the national interest factors that are typically considered when assessing foreign 
investment prop osals. These include: national security, competition, other Australian 
Government policies (including tax), impact on the economy and the community, and the 
investor’s character.  
 
Where a proposal involves a foreign government investor, the Government als o considers if the 
investment is commercial in nature or if the investor may be pursuing broader political or 
strategic objectives that may be contrary to Australia’s national interest.  
 
The relative importance of these considerations can vary depending u pon the nature of the 
target enterprise. Investments in enterprises that are large employers or that have significant 
market share may raise more sensitivities than investments in smaller enterprises. However, 
investments in small enterprises with unique a ssets or in sensitive businesses may also raise 
concerns.  
 
If it is determined that a proposal is contrary to the national interest, it will not be approved or 
conditions will be applied to safeguard the national interest.  
 
9. Would Australia also clarify whether all types of foreign investments undergo the screening 
process?  
 
RESPONSE: Foreign investment is screened if the proposed investment exceeds prescribed 
monetary and/or equity thresholds.  
 
These thresholds can be found on the Foreign Investm ent Review Board (FIRB) website, 
Guidance Note 34: https://firb.gov.au/guidance -resources/guidance -notes/gn34 . 
 
The Foreign Acquisitions and Takeovers Act 1979 deals with certain ac tions to acquire interests 
in securities, assets or Australian land, and actions taken in relation to entities (being 
corporations and unit trusts) and businesses, that have a connection to Australia. These actions WT/TPR/M/396/Add.1  
 
- 209 - 
 
  are called significant actions. For an ac tion to be a significant action, the action must result in 
a change in control involving a foreign person or be taken by a foreign person.  
 
Some significant actions (called notifiable actions) must also be notified to the Treasurer before 
the actions can b e taken. Further information can be found on the FIRB website, Guidance Note 
35: https://firb.gov.au/guidance -resources/guidance -notes/gn35 . 
 
10. What are the key criteria for assessmen t of foreign investment applications (please, specify 
possible requirements concerning thresholds, country of origin, total amount etc.)?  
 
RESPONSE: Australia’s foreign investment framework is open and transparent. It is clearly 
defined in legislation:  
 
• Foreign Acquisitions and Takeovers Act 1975 (Cth) [Link to 
https://www.legislation.gov.au/Series/C2004A01402 ] 
• Foreign Acquisitions and Takeovers Regulation 2015 [Link to 
https://www.legislation.gov.au/Details/F2019C00072 ] 
• Foreign Acquisitions and Takeovers Fees Imposition Regulation 2015 [Link to 
https://www.legi slation.gov.au/Details/F2017C00518 ] 
Foreign investment is screened if the proposed investment exceeds prescribed monetary and/or 
equity thresholds. These thresholds can be found on the Foreign Investment Review Board 
website, Guidance Note 34: https://firb.gov.au/guidance -resources/guidance -notes/gn34 . 
Applications are considered on a case -by-case basis and assessed against the national interest, 
regardless of the nationality of the investor.  
 
The Government has provided general guidance on the national interest factors that are typically 
considered when assessing foreign investment proposals. These include: national security, 
competition, other Australian Government policies (including tax), impact on the economy and 
the community, and the investor’s character. Where a proposal involves a foreign government 
investor, the Government also considers if the investment is commercial in nature or if the 
investor may be pursuing broa der political or strategic objectives that may be contrary to 
Australia’s national interest.  
 
11. What information should be included in proposals for foreign investment, sent to the FIRB?  
 
RESPONSE: The Foreign Investment Review Board website provides resources to assist foreign 
investors with their application process. The requirements are listed in an ‘application checklist’: 
https://firb.gov.au/sites/firb.gov.au/files/2018/06/FIRB -application -checklist_08 -ACC-1.pdf. 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.2 Measures Directly Affecting Exports  
3.2.4 Export support and promotion  
Page 63 (Pa ra 3.69)  
Under the Report, “The TradeStart network aims at assisting small and medium -sized exporters to 
achieve long -term success in international markets. It is an extension of Austrade`s own offices and 
programmes. It is delivered in partnership with st ate, territory and local governments, industry 
associations and chambers of commerce, and thus combines local assistance with direct access to 
Austrade`s services and overseas network. In mid -2019, the network included 34 TradeStart 
advisers, located in of fices across Australia. Austrade currently has 79 offices in countries and 
territories overseas”.  
 
Question 12  
12. What are the main export promotion instruments (services) that the Australian Trade and 
Investment Commission (Austrade) and the TradeStart use t o help exporting industries to 
deliver their goods and services abroad?  
 
RESPONSE: Austrade (and TradeStart) provide advice to businesses on exporting, including 
overseas market selection and market entry strategies, connection with potential customers in 
target markets, marketing and promotion advice.  Export promotion activities include 
introducing individual exporters to buyers overseas, trade show participation (often with 
industry associations and state governments), educating overseas buyers about Aus tralian WT/TPR/M/396/Add.1  
 
- 210 - 
 
  capability, inbound missions to Australia and digital marketing campaigns on Australian 
industries.  
 
The TradeStart network is delivered in partnership with state, territory and local governments, 
and chambers of commerce. This means TradeStart adv isors are able to offer exporters the 
combined resources of both Austrade (including the services referred to above) and the partner 
organisation.  
 
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
Page 73 (Para 3.11 2)  
According to the Report “Australia introduced a new country of origin labelling system on 1 July 2016 
that became mandatory for “priority food” from 1 July 2018. The new system is enforced by the 
Australian Competition and Consumer Commission. The labe lling requirements include a country of 
origin statement and a prescribed logo/mark and bar chart. Food with all ingredients grown, 
produced or made in Australia carry a prescribed kangaroo logo. For imported food or food 
ingredients, the marking should in clude a text and bar chart indicating the proportion of Australian 
ingredients by ingoing weight”.  
 
Questions 13 -15 
13. Could Australia kindly elaborate on the list of “priority food” for which a new country of origin 
labelling system is mandatory?  
 
RESPONSE: A food will be a priority item unless it belongs to one of the following non -priority 
food categories:  
1. seasonings  
2. confectionery  
3. biscuits and snack foods  
4. soft drinks and sports drinks  
5. alcoholic drinks  
6. tea and coffee  
7. bottled water.  
Further information is available in the Australian Competition and Consumer Commission guide 
for business: https://www.accc.gov.a u/system/files/Country%20of%20Origin%20food%20% 
20labelling%20Guide_March%202019.pdf . 
 
14. How does the Australian Competition and Consumer Commission enforce this new system and 
what remedies are provided for breach of labelling requirements (for example, pen alties for 
non-compliance etc.)?  
 
RESPONSE: The Australian Competition and Consumer Commission (ACCC) uses a range of 
compliance and enforcement tools to encourage compliance with Australia’s country of origin 
food labelling system. Both the ACCC and local  consumer law regulators are responsible for 
enforcing country of origin labelling laws and have the power to call on businesses to 
substantiate the country of origin claims made on their labels.  
 
Where the ACCC identifies possible non -compliance, it will  take the surrounding circumstances 
into account. Many matters are resolved by communicating with businesses to seek changes to 
address non -compliance. Where stronger action is warranted, the ACCC may escalate matters 
for an enforcement approach in line wi th the principles set out in the ACCC’s Compliance and 
Enforcement Policy. The ACCC is more likely to take enforcement action where businesses fail 
to respond to concerns or choose not to take steps to address compliance failures, or the issues 
go beyond a  failure to comply with labelling requirements and involve conduct or labelling that 
is likely to mislead consumers. The ACCC is more likely to take action where such conduct is 
undertaken by large or national traders and impacts a large number of consumer s.  
 
If the ACCC decides to take legal action, a court may impose a financial penalty. The maximum 
financial penalty for breach of Australia’s country of origin labelling requirements is up to the 
greater of AU$10 million or three times the value of the be nefit received or, where the benefit 
cannot be calculated, 10 per cent of annual turnover in the preceding 12 months for corporations 
and up to AU$500 000 for an individual. Other orders a court may make and which the ACCC 
may seek include injunctions, com pensatory orders and corrective advertising orders.  WT/TPR/M/396/Add.1  
 
- 211 - 
 
  15. Could Australia further elaborate on how this system corresponds to Australia’s obligations 
under the relevant WTO Agreements (e.g. TBT Agreement)?  
 
RESPONSE: Australia produced a Regulatory Impact Statement (RIS) for the CoOL reforms  
(https://ris.pmc.gov.au/sites/default/files/posts/2016/04/Country -of-Origin -Labelling -
Decision -RIS-1.pdf), which found that the reforms would remain consistent with Australia's 
international trade obligations. The regulations were developed and implemented consistent 
with Australia’s international obligations, including under the Technical Barriers to Trade 
agreement.  
 
3.3.7 Intellectual property rights  
3.3.7.5 Industrial property  
3.3.7.5.1 Patents  
Pages 86 - 87 (Para 3.172)  
The Report mentions the Intellectual Property Laws Amendment Act, 2015 (IPLA 2015), which 
amended the Patents Act to give effe ct to Australia`s obligations under the TRIPS Protocol. The 
amendments enable Australian medicine producers to apply to the Australian Federal Court for a 
compulsory licence to manufacture and export patented pharmaceuticals to eligible importing 
countries . 
 
Questions 16 -18 
16. Would Australia kindly inform whether adoption of the IPLA 2015 required development of by -
law implementing regulations and, if so, describe and provide the links to respective legal acts?  
 
RESPONSE: IPLA 2015 required the development of supporting regulations. The Intellectual 
Property Legislation Amendment (TRIPS Protocol and Other Measures) Regulation 2015 made a 
number of amendments to the Patents Regulations 1991, Designs Regulations 2004, Trade 
Marks Regulations 1995. These comprised amendments:  
- relating to the implementation of the TRIPS Protocol. These included inserting 
definitions of terms such as ‘eligible importing country’, prescribing the requirements 
for applications for a compulsory licence under the system, p rescribing the notification 
requirements for the eligible importing country and the applicant for the licence, and 
prescribing requirements for labelling of pharmaceutical products and shipment 
information;  
- to simplify records management at IP Australia, b y ensuring that it is governed solely 
by the Archives Act 1983; and  
- to make technical amendments, ensure consistency in terminology, and remove 
obsolete references.  
https://www.legislation .gov.au/Details/F2015L00852 . 
 
17. Could Australia also clarify if there is any established mechanism for collaboration between 
Australian medicine producers and authorities (other than the Australian Federal Court) in case 
of possible use of the IPLA 2015 prov isions for manufacturing and exporting patented 
pharmaceuticals to eligible importing countries?  
 
RESPONSE: The IPLA 2015 provisions give effect to Australia’s obligations under the TRIPS 
Agreement to facilitate access to essential medicines by enabling Au stralian producers to 
manufacture and export patented pharmaceuticals to eligible importing countries under certain 
circumstances.  
 
These provisions enable arrangements for the use of the medicines to be determined between 
the relevant parties, or by the Federal Court where necessary, and are not reliant on 
collaboration between Australian medicine producers and other government authorities.  
 
18. What Australian agency is responsible for notification of the Council for TRIPS in the event of 
the grant of a compulsory licence, as stipulated by the TRIPS Protocol?  
 
RESPONSE: The Department of Foreign Affairs and Trade leads whole -of-government 
engagement in the WTO concerning TRIPS matters.   It would provide any notification.  
 
 
 WT/TPR/M/396/Add.1  
 
- 212 - 
 
  4 TRADE POLICIES BY SECTOR  
4.1 Agriculture and Fisheries  
4.1.2 Fisheries  
4.1.2.1 General  
4.1.2.3 Aquaculture  
Pages 105 -106, 108 (paragraphs 4.30, 4.38 -4.39)  
According to the Report  “Australia`s 200 -mile Fishing Zone (AFZ) is the third largest in the world, 
and is larger than Australia`s land area. However, biological productivity in the marine territory is 
relatively low, due to the generally shallow waters of the continental shelf and the scarcity of 
nutrient -rich currents. Regulatory responsibilities affecting the fisheries sector fall within eight 
jurisdictions, each of which develop their own policies with respect to resource management, 
research, reporting, and environmental standards. Generally, state and territory governments 
regulate on -land facilities and marine fisher ies within three nautical miles of the coastline (low water 
mark), while the Government holds jurisdiction between the three -mile internal limit and the 200 -
mile outer limit of the AFZ. Since 1979, cross -jurisdictional issues, including the management of 
migrating fish stocks, have been regulated under the Offshore Constitutional Settlement (OCS). At 
present, 59 separate agreements exist under the OCS to regulate the harvesting of cross -
jurisdictional fish stocks.”  
 
Besides, the Report mentions some aspects  of regulation that affects the aquaculture sector of 
Australia (Section 4.1.2.3).  
 
Questions 19 -21 
19. Could Australia, please, share its experience with respect to the methodology of aquatic 
bioresources stocks assessment and clarify, whether it is provided harvesting of aquatic 
bioresources during such assessment?  
 
RESPONSE: The Australian Fisheries Management Authority (AFMA) uses evidence based 
techniques to assess the status of fish stocks and determine the level of catch or fishing effort 
that is sustain able. A sustainable fish catch or amount of fishing effort for a species or stock is 
set for a fishing season and is usually termed a Total Allowable Catch (TAC) or Total Allowable 
Effort (TAE). A fishing quota provides a share of the fish catch or fishing  effort allowed in a 
fishery to an individual fisher. A fishing quota is usually specific to a fish species as part of a 
fish stock (a distinct population of a species). Harvest strategies are also developed by AFMA, 
states and territories to maintain key commercial stocks at ecologically sustainable levels whilst 
maximising the economic returns.  
 
More information on fishing quota and harvest strategies can be found on the Australian 
Fisheries Management Authorities website: https://www.afma.gov.au . 
 
20. What are the legal means of aquaculture activity regulation in Australia and what are the terms 
and mechanisms of mariculture regulation, in particular with respect to allocation of the marine 
areas for mariculture?  
 
RESPONSE: Local governments review applications for land -based aquaculture projects and 
state and territory governments are principally responsible for the management and regulation 
of marine -based aquaculture. For example, for South Australia, the South A ustralia Aquaculture 
Act 2001 is the main piece of legislation governing the management, control and development 
of marine -based aquaculture. It is important to note most other jurisdictions do not regulate 
aquaculture through dedicated legislation.  
 
The ‘National Aquaculture strategy’ outlines the regulatory framework under which Australia’s 
aquaculture industry operates. The latest strategy can be accessed here 
https://www.agriculture.gov.au/sites/default/files/sitecollectiondocuments/fisheries/aquacultu
re/national -aquaculture -strategy.pdf . 
A licencing system is used in the states and territories to mitigate co ncerns about the 
aquaculture industries use of publicly owned land and water and the sectors impact on the 
environment. The suitability of a marine area for aquaculture is considered in the decision to 
grant a licence to operate in a specific location. An aquaculture licence can be suspended or 
cancelled if the licensee obtained the licence improperly, the licensee has failed to comply with 
a condition of the licence, or the licensee has committed an offence against any other law 
relating to aquaculture, fi shing or environment protection.  WT/TPR/M/396/Add.1  
 
- 213 - 
 
  21. Could Australia kindly inform on its legislation that provides traceability of origin and regulates 
trade in aquatic bioresources in the Australian market?  
 
RESPONSE: Australia regulates country of origin labelling via the Food Standards Code 
(https://www.foodstandards.gov.au/code/Pages/default.aspx ). Regulation of domestic trade 
and food safety aspects of aquatic bioresources is a matter for each State  and Territory 
government.  
 
Page 106  (Para 4.31)  
The Report  mentions the Fisheries Research and Development Corporation (FRDC), which is the 
national fisheries -related R&D agency and a statutory corporation of the Government accountable 
to Parliament through the Minister for Agriculture. It states, that the FRDC is funded jointly by the 
Government and the commercial fishing and aquaculture industries.  
 
Questions 22 -23 
22. Ukraine would appreciate if Australia could inform on the mechanism and te rms of cooperation 
of the FRDC with commercial fisheries and aquaculture industries.  
 
RESPONSE: The role of the Fisheries Research and Development Corporation (FRDC) is to plan 
and invest in fisheries research, development and extension (RD&E) activities i n Australia. The 
FRDC is funded by the Australian Government and the commercial fishing and aquaculture 
industries. It was formed as a statutory corporation under the provisions of the Primary 
Industries Research and Development Act 1989. Funds are collect ed by the Commonwealth, 
state and territory governments as part of their fisheries management activities. As stipulated 
in the PIRD Act, the FRDC's primary revenue source is based on:  
 
• the Australian Government providing unmatched funds equivalent to 0.50 per cent of 
the average gross value of Australian fisheries production (AGVP) for the current year 
plus the two preceding years;  
• fishers and aquaculturists providing contributions via government; and  
• the Australian Government matches this amount up to a ma ximum of 0.25 per cent of 
AGVP.  
Using this revenue, a significant responsibility of the FRDC is to ensure, on behalf of the 
Australian Government, that research is undertaken to assist in the management of the fisheries 
and aquaculture resource for ongoing  sustainability.  
 
23. Could Australia also elaborate whether private fisheries industries/business entities are engaged 
in the process of aquatic bioresources stocks assessment and, if so, under what terms?  
 
RESPONSE: The Australian Fisheries Management Authority (AFMA) is the Australian 
Government agency responsible for the efficient and sustainable management of 
Commonwealth fish resources on behalf of the Australian community. Management advisory 
committees and resource assessment groups pro vide crucial advice and input to AFMA’s 
management of Commonwealth fisheries, including stock assessments. Members of these 
committees and groups are appointed by AFMA and include fishing operators and recreational 
fishers along with AFMA fishery managers,  scientists, researchers, state and territory 
governments, and conservation groups.  
 
Page 106  (Para 4.32)  
The Report  refers to the 2018/19 Labour Force Survey, according to which commercial fisheries and 
aquaculture industries employed approximately 12,500  people, of which 72% were working full time. 
It also mentions estimations of fish processing and fish wholesaling.  
 
Question 24  
24. What are the types and methodologies of statistical data collection in fisheries industry, in 
particular regarding aqua - and ma riculture, social indicators (employment in fisheries industry), 
internal retail and wholesale trade (please, also clarify legal framework for regulation of 
mentioned aspects of fisheries industry)?  
 
RESPONSE: The fisheries research and analysis conducted by the Australian Bureau of 
Agricultural and Resource Economics and Sciences (ABARES) provides the Australian 
Government with economic and scientific evidence to support fisheries policy and the sustainable WT/TPR/M/396/Add.1  
 
- 214 - 
 
  management of fisheries resources. ABARES provide s research and data on Australia’s domestic 
fisheries and marine environment, including:  
 
• Stock assessment and stock status determination, including production of the annual 
ABARES Fishery status reports  
• The sustainability of fish stocks, fishing practices  and fisheries, as well as impacts of 
fisheries on the marine environment  
• Multi-sectoral fisheries management and resource sharing practices  
• Analyses of recreational fishing, including fishery survey techniques  
 
The Australian fisheries and aquaculture sta tistics 2017 report published by ABARES also 
includes a detailed analysis of social indicators associated with land based and marine 
aquaculture such as employment in the fishing industry.  
 
The ‘Australian fisheries economic indicators report’ and ‘Annual Fisheries Outlook’ provide data 
on aquaculture production to exports, global and domestic seafood consumption, and 
information about key species. The latest publications mentioned above can be found on the 
ABARES website https://www.agriculture.gov.au/abares/research -topics/fisheries . 
 
4.3 Manufacturing  
Page 1 13 (Para 4.65)  
The Report notes, that the Department of Industry, Innovation and Science developed policies and 
programmes to assist businesses across Australia to build their capability, innovate, and grow in 
new and changing markets.  
 
Question 25  
25. Could Australia kindly provide further information regarding the abovementioned policies and 
programmes?  
 
RESPONSE: Growth Fund  
The Australian Government’s AU$155 million Growth Fund provided an assistance package 
between 2014 and 2018 to help automotive workers and supply chain businesses. The Growth 
Fund delivered the following programs:  
• Automotive Industry Structural Ad justment Programme to help redundant automotive 
workers find new jobs ( https://www.business.gov.au/Assistance/Automotive -
Industry -Structural -Adjustme nt-Programme )  
• Skills and Training Initiative to help workers build on existing skills and gain 
capabilities to transfer to new jobs  
• Automotive Diversification Programme funding to help automotive supply chain firms 
capable of diversifying to find new mark ets 
• Next Generation Manufacturing Investment Programme support to accelerate private 
sector investment in high value manufacturing sectors in Victoria and South Australia 
(https://www.business.gov.au/Assistance/Next -Generation -Manufacturing -
Investment -Programme )  
Geelong Regional Innovation And Investment Fund (GRIIF)  
• GRIIF was established in 2015 by the Australian and Victorian Governments in 
response to the announcement by Ford Australia that it will cease its vehicle and 
engine manufacturing operations in Australia from October 2016.  
• GRIIF supported innovative, job creation projects to strengthen and diversify 
Geelong’s regional economy and employment  base.  
• Further information on the program is available at the  
(http://www.g21.com.au/sites/default/files/resources/GRIIF_FactSheet.pdf )  
Melbourne’s North Innovation a nd Investment Fund (MNIIF)  
• MNIIF was established in 2015 by the Australian and Victorian Governments with 
support from Ford Australia as part of the commitment to the region in the lead up to 
the closure of Ford’s manufacturing operations in Melbourne’s no rth.  
• The objective of the fund was to support innovative, job creation projects to 
strengthen and diversify Melbourne North's regional economy and employment base.  
• Further information on the program is available 
(https://www.minister.industry.gov.au/ministers/macfarlane/media -
releases/applications -open-round -two-245-million -melbournes -north ) 
Tasmanian Jobs and Investment Fund (TJIF)  WT/TPR/M/396/Add.1  
 
- 215 - 
 
  • TJIF was announced in September 2015 by the Australian and Tasmanian 
Governments.  
• The fund supported projects to create sustainable business investment and job 
opportunities that contribute to s trengthening Tasmania’s economy.  
• Further information on the program is available 
(https://www.minister.industry.gov.au/ministers/pyne/media -releases/24m -fund-
support -tasmanian -business -growth ) 
 
4.4 Services  
4.4.1 Financial services  
Page 1 18 (Para 4.85)  
The Report notes, that Australia has a well -integrated, developed and deep financial sector, which 
has considerable bearing on the regional financial sector and architecture. It comprises authorized 
deposit taking in stitutions, responsible for approximately 60% of the sector`s total assets; pension 
funds (27%); investment funds (5%); insurance (5%); finance companies (2%); and specialized 
credit institutions (the rest).  
The Report also describes the regulatory develo pments in legal and institutional framework for 
financial services activities in Australia that have occurred during the period under review.  
 
Questions 26 -30 
26. Would Australia, please, describe the procedure for assessment of the ownership structure, 
busine ss reputation and financial conditions of a bank by the Australian Prudential Regulation 
Authority (APRA), in particular requirements to acquisition of qualifying holding in the regulated 
entities, indicators of non -transparency of the ownership structure?  
 
RESPONSE: The Australian Prudential Regulation Authority’s (APRA) assessment of acceptable 
Approved Deposit -taking Institution (ADI) shareholdings is assisted by the Financial Sector 
(Shareholdings) Act 1988  (FSSA) which includes limits around ownership structure. Additionally, 
APRA’s prudential concerns regarding shareholdings in ADIs can be summarised thus:  
- Access to additional capital is a risk indicator when assessing an ADI’s resilience in the 
face of a dverse conditions. ‘Access to capital’ is a category in APRA’s PAIRS framework.  
- In assessing the governance framework of an ADI, no individual, entity, or group should 
have an undue and malign influence through its shareholding.  
 
The FSSA states that no individual, entity, or group of associated persons/ entities may own in 
excess of 20% of an ADI. Exemptions may be granted, either on the grounds of ‘national 
interest’, or – in some cases – on grounds of the shareholder being ‘fit and proper’. An applican t 
for an exemption from the FSSA must detail their holdings, and those of any associates. This 
application must look through to ultimate beneficial ownership. So if layers of companies are 
involved, APRA needs to satisfy itself that the ultimate beneficial  owners have been identified; 
where this is opaque, unclear or APRA has doubts regarding the veracity of the application, no 
exemption will be granted.  
 
Privately -owned entities are expected to conduct their own ‘fit and proper’ assessment of 
potential sh areholders, and share the results with APRA.  
 
In addition, the Foreign Investment Review Board assesses some proposals for foreign 
investment in Australia under the auspices of the Foreign Acquisitions and Takeovers Act 1975 . 
 
27. What are the conditions for authorization of non -banking financial institutions in Australia: types 
of activities, key requirements to applicants, approval procedure; verifying sources of funds for 
the formation of capital?  
 
RESPONSE: Non-banking financial institutions  are not required to be licensed as authorised 
deposit -taking institutions (ADIs) by the Australian Prudential Regulation Authority (APRA) 
because they do not accept deposits. As a result they are not required to comply with the 
prudential regulatory requi rements that apply to banks. They are, however, subject to other 
regulatory requirements. If they provide financial services they will need to obtain an Australian 
Financial Services Licence from the Australian Securities and Investments Commission (ASIC).  
If they offer credit, they will require an Australian Credit Licence also issued by ASIC. Both types 
of licences are accompanied by regulatory requirements and have their own approval 
procedures that are detailed on the ASIC website.  WT/TPR/M/396/Add.1  
 
- 216 - 
 
  28. What are specific fea tures of regulation and supervision of fintech companies and what agency 
oversees fintech companies?  
 
RESPONSE: The regulation of fintech companies depends on the products and services they 
provide. The key regulators are the Australian Securities and Inve stments Commission (ASIC, 
the corporate and financial services regulator) and the Australian Prudential Regulation Agency 
(APRA), which provide prudential oversight of banks, insurers and superannuation funds.  Firms 
are also regulated by AUSTRAC, Australi a’s anti -money laundering regulator.  
 
Generally speaking , the same regulations apply to fintechs as those applying to established 
businesses providing the similar products and services. Some departures include:  
• ASIC’s Innovation Hub provides assistance for  fintechs to navigate the regulatory 
environment and determine what approvals may be required. ASIC has a number of 
agreements with overseas regulators to provide mutual assistance for fintech firms.  
• The Government has passed legislation for an enhanced re gulatory sandbox, 
administered by ASIC. This will provide the opportunity for eligible innovative products 
and services to be tested in a controlled environment, subject to appropriate consumer 
protections, for up to two years, without first obtaining an A ustralian Financial Services 
Licence.  
• APRA has introduced a phased approach to bank licensing to encourage new entrants. 
While this is not specific to fintech companies, it has assisted several digital banks to 
obtain a banking licence.  
The Government and  regulators have also put in place ongoing consultative mechanisms with 
fintechs, including through a Ministerial Fintech Advisory Group and ASIC’s Digital Finance 
Advisory Panel.  
 
Implementation of new Consumer Data Right or 'Open Banking' laws will make  it possible for 
consumers to choose to share their banking data with Fintech companies, which in turn will 
allow Fintechs to develop new and better products for consumers.  
 
29. What are the differences in prudential regulation and corporate governance require ments for 
banks, credit unions and building societies, insurance companies?  
 
RESPONSE: Under its standard setting power, the Australian Prudential Regulation Authority 
(APRA) establishes prudential requirements for banks, credit unions, building societies and 
insurance companies. Banks, credit unions and building societies are all considered to be 
Authorised Deposit -Taking Institutions (ADIs) and are hence subject to a consistent set of 
prudential requirements based on their holding of an ADI license. Insur ance companies hold a 
separate license as insurers and are subject to their own set of requirements.  
 
APRA’s requirements align with those of international standard setting bodies. For ADIs, APRA’s 
framework aligns to the standards of the Basel Committee o n Banking Supervision and for 
insurers, the framework aligns to the standards of the International Association of Insurance 
Supervisors.  
 
APRA has standardised prudential requirements wherever possible. For requirements relating 
to capital, both ADIs and insurers have minimum capital requirements which are standardised 
to the extent appropriate. These frameworks differ as needed to recognise the differences in 
business models of ADIs and insurance.  
 
For requirements relating to particular risks, APRA’s requirements are more bespoke, 
recognising differences across industries. In this respect, APRA has specific prudential standards 
for ADIs on, for example, credit risk, market risk and interest rate risk in the banking book. For 
insurers, standards address matters such as asset risk and insurance risk.  
 
With regards corporate governance, including risk management, governance, and fit and 
proper, APRA has in place cross -industry prudential standards that apply to both the ADI and 
insurance industries ensuring a consistent approach on corporate governance where it is a 
prudential concern.  
 
Within each industry, APRA applies its standards and its intensity of supervision commensurate 
with an entity’s size and complexity. So , while a particular prudential  standard will apply to one WT/TPR/M/396/Add.1  
 
- 217 - 
 
  or more industries, APRA will have differing expectations of entities within those industries, 
dependent on the entity’s size and complexity.  
 
Outside of APRA’s prudential requirements, ADIs and insurers are also subject to the corporate 
governance requirements regulated by ASIC.  
 
30. Could Australia kindly inform on the purpose of introduction of the Restricted Authorised 
Deposit -taking Licence?  
 
RESPONSE: In summary, a Restricted Authorised Deposit -taking Licence allows eligible 
applicants to conduct limited banking business while developing their capabilities and resources, 
facilitating entry into the banking sector while not materially lessening entry standards that 
serve as important protections for the Australian community. It a llows eligible applicants to be 
authorised at an earlier stage in the licensing assessment process than under the direct route. 
This can assist applicants in seeking the investment required to develop resources and 
capabilities, demonstrating progress made  towards fully complying with the prudential 
framework.  
 
4.4.2 Communications  
4.4.2.2 Television broadcasting and film production  
Page 12 8 (Para 4.137)  
Under the Report, “The regulatory regime governing the screen industry includes Australian content 
quota s, and sub -quotas for children`s content, documentaries and Australian drama. These quotas 
apply to free -to-air broadcasters and pay television, and ensure a minimum amount of Australian 
screen content is produced and broadcasted”.  
 
Question 31  
31. Would Austr alia, please, specify its policies regarding the audiovisual sector and inform more 
on the regulatory regime with respect to Australian content quotas, mechanism of its 
application, special requirements and impact on respective Australian and foreign compa nies? 
 
RESPONSE: One of the objectives of the Broadcasting Services Act 1992 (BSA) is to promote 
the role of broadcasting services in developing and reflecting a sense of Australian identity, 
character and cultural diversity. This objective is promoted via  programming quotas which 
require minimum amounts of content produced under the creative control of Australians to be 
broadcast by commercial television broadcasting licensees and minimum expenditure 
requirements which apply to subscription television broa dcasting licensees. In particular, the 
BSA:  
• Sets transmission quotas, requiring commercial television broadcasting licensees to 
transmit minimum amounts of Australian content on their primary channels and multi -
channels (section 121G).  
• Requires subscription television broadcasting licensees to ensure the maintenance of 
minimum levels of expenditure on new release Australian and New Zealand drama 
programs (part 7, division 2A).  
• Requires the Australian Communications and Media Authority (ACMA) to d etermine 
program standards relating to Australian programming, Australian content in 
advertising and programs for children that are to be observed by commercial television 
broadcasting licensees. The current program standards are the Broadcasting Services 
(Australian Content) Standard 2016; the Children's Television Standards 2009; and the 
Broadcasting Services (Australian Content in Advertising) Standard 2018. The ACMA is 
the independent Commonwealth statutory authority that regulates communications 
and me dia services in Australia.  
 
The impact of these obligations is currently being considered as part of the Australian 
Government's response to the Australian Competition and Consumer Commission’s Digital 
Platforms Inquiry Final Report (Regulating in the digital age: Government Response and 
Implementation Roadmap for the Digital Platforms Inquiry). In particular, the Australian 
Government has announced that an options paper co -authored by Screen Australia and the 
ACMA will be released in early 2020 that wi ll look at how to best support Australian stories on in 
a modern, multi -platform environment.  
 
 WT/TPR/M/396/Add.1  
 
- 218 - 
 
  Page 12 8 (Para 4.139)  
The Report describes different tax incentives, which are provided for the production of films and 
television programmes, in the form of pr oducer, location and post, digital and visual effects offsets.  
 
Question 32  
32. Could Australia, please, elaborate whether there are any incentives, provided for the 
development of its book publishing sector?  
 
RESPONSE: The Australian Government recognises th e significant contribution writers and 
publishers make to the cultural life of Australia and supports them through a range of programs 
including the Public and Educational Lending Right schemes, the Prime Minister’s Literary 
Awards and through the Australi a Council for the Arts (the Council) funding programs.  
 
The Council supports the excellence, diversity and vitality of Australian literature and is focused 
on creation, publication and promotion of Australian writing and a vibrant literary culture 
national ly. Funding is delivered through grants to writers at all stages of their career, as well as 
to the publishing industry, including literary magazines and journals. The Council also provides 
grants to organisations and programs that contribute to the skills  and professional development 
of Australian writers and the development and presentation of their work.  
 
PART II: QUESTIONS REGARDING THE REPORT  BY AUSTRALIA (WT/TPR/G/39 6) 
2 ECONOMIC POLICY  
2.4 Economic Policy Developments  
Page 6 (Para 2.19) 
Under the Report, the Australian Government put in place a plan for development of the digital 
economy, and established a process designed to boost the competitiveness of Australia’s services 
sector.  
 
Question 33  
33. Could Australia, please, elaborate more on the concre te measures already taken to develop the 
digital economy, as well as on concrete steps already made to boost the competitiveness of 
Australia’s services sector?  
 
RESPONSE: Australia has implemented a range of measures to develop the digital economy in 
Australia. Electronic commerce is principally regulated and facilitated by federal, state and 
territory Electronic Transaction Acts.  Other measures adopted include the Competition and 
Consumer Act 2010 (Cth) to ensure businesses adopt fair business practices when engaging in 
electronic commerce, the Privacy Act (Cth) which regulates the collection, use and disclosure 
of personal information. The Do Not Call Register Act (Cth) and the Spam Act (Cth) also provide 
protection to users from unsolicited marketing co mmunications transmitted via phone calls, 
faxes and messages.  
 
In 2019, the Australian Government commenced an initiative working in close collaboration with 
industry across the services sector to identify and address barriers to services exports and 
competitiveness. The services industry presented government with Industry's 
Recommendations - An Action Plan to Boost Australia's Services Exports in August 2019 and 
the Government released the Government Response to Industry's Action Plan to Boost 
Austral ian Services Exports in November 2019.  
 
This is an ongoing initiative of collaboration with industry and is expected to continue through 
2020 and beyond. Greater details of industry recommendations and the Australian 
Government’s response is available from  the following website: 
https://dfat.gov.au/trade/services -and-digital -trade/Pages/services -export -action -plan.aspx . 
  WT/TPR/M/396/Add.1  
 
- 219 - 
 
  Ukraine  follow up questions  
Part III:  Other Questions  
 
Questions 1 -10 
1. Are there  any criteria/conditions/prerequisites/standards/requirements (hereinafter the 
“criteria”) that developing countries must meet in order to be included in the list of countries 
eligible for DC, DCS and DCT rates of duty under the ASTP?  
 
2. If there are such criteria, what are they? Are the criteria set out in Australia’s legislation (laws, 
regulations or any other acts) and publicly available? (If yes, please, provide a web -link.)  
 
3. What are the “eligibility requirements”, which are being currently reassessed by Australia? Are 
they set out in Australia’s legislation (laws, regulations or any other acts) and publicly available? 
(If yes, please, provide a web -link.) 
 
4. If the criteria or “eligibility requirements” are not publicly available, in what way does Australia 
ensure transparency of the selection process and compliance with WTO rules, including the 
Enabling Clause?  
 
5. If the criteria or “eligibility requirements” are not publicly ava ilable, what are reasons for 
keeping them secret/confidential?  
 
6. If the criteria or “eligibility requirements” are kept secret/confidential how can a developing 
country learn whether it may qualify for the ASTP, incl. DC, DCS and DCT categories, or not?  
 
7. If the criteria or “eligibility requirements” are kept secret/confidential how can anyone 
determine whether they are discriminatory or not?  
 
8. What kind of “development, financial and trade needs” of developed countries and other high -
income economies, include d as beneficiaries in the list under DCS category, does the ASTP 
respond to?  
 
9. How does Australia assess “development, financial and trade needs” of the countries in order 
to ensure that identical treatment is available to all similarly -situated GSP benefic iaries?  
 
10. On what basis were countries selected and included in the list of beneficiaries under DC, DCS 
and DCT categories of the ASTP?  
 
RESPONSE:  The following response is provided as a collective answer to the 10 questions asked 
by the Ukraine in respect to Australia's tariff regime for imp orts from developing countries.  
 
Australia operates a system of tariff preferences for imports from the worlds’ least developed 
and developing countries. The intent of the Australian System of Tariff Preferences (ASTP) i s to 
support the integration of developing countries into the global trading system as a means to 
promote their economic growth.  
 
The ASTP provides duty -free, quota -free access for least developed countries and provides 
developing countries with duty -free and preferential access on a broad range of goods where 
Australia levies a tariff. To claim a preferential rate under the ASTP, goods are required to meet 
rule of origin requirements.  
 
The ASTP has undergone a number of changes since it was first introduced in 1966. The ASTP 
currently comprises five preference categories: Least Developed Country (LDC), Forum Island 
Country (FIC), Developing Country (DC), Developing Country Status (DCS), and Developing 
Country Category T (DCT). There are two divisio ns for each category which distinguish between 
countries/territories and places. The list of countries/territories and places eligible for DC and 
DCS rates of duty is provided in Schedule 1 of the Customs Tariff Act 1995, a copy of which can 
be accessed at : 
 
https://www.abf.gov.au/importing -exporting -and-manufacturing/tariff -classification/current -
tariff. WT/TPR/M/396/Add.1  
 
- 220 - 
 
  Preference -granting countries are entitl ed to establish their own conditions for defining 
developing country beneficiaries in GSP schemes. Australia is currently undertaking a review of 
the ASTP, including reassessing eligibility requirements for preferential treatment.  
  WT/TPR/M/396/Add.1  
 
- 221 - 
 
  United Kingdom  
2. TRADE  AND INVESTMENT  REGIME  
2.4 Investment Regime  
2.39 
 
Question 1  
Over the review period, Australia lowered its monetary screening threshold for proposed investments 
in agricultural land and introduced a specific screening threshold for proposed investment s in 
agribusiness. For the years ended 30 June 2016, 30 June 2017 and 30 June 2018, could Australia 
provide information on the total number and value of agricultural land and agribusiness investment 
applications screened which would not otherwise have fall en within relevant screening thresholds 
prior to the reforms?  
 
RESPONSE: This information is not available. However, Table 3.4 of the 2017 -18 Foreign 
Investment Review Board Annual Report ( https://firb.gov.au/sites/firb.gov.au/files/2019/ 
02/FIRB -2017-18-Annual -Report -final.pdf ) provides data on the number and value of proposed 
foreign investment approvals for the years 2015 -16, 2016 -17 and 2017 -18. 
 
3. TRADE POLICIES AN D PRACTICES BY MEASU RE 
3.1 Measure Directly Affecting Imports  
3.1.3 Tariffs  
3.1.3.2 Applied MFN tariff  
 
Question 2  
We note several positive developments in Australia’s MFN applied tariff structure between 2014 and 
2019, including the increased share of bound tariffs, the reduction in the dutiable lines tariff average 
rate and the drops in domestic and international tariff peaks. What feedback from businesses did 
the Government receive on these changes, and what benefits h as Australia observed as a result of 
them?  
 
RESPONSE: The applied average MFN tariff declined by 0.5 percentage points from 2014 to 
2019, reflecting Australia's implementation of new zero -duty commitments under the ITA 
expansion on approximately 100 tariff  lines, and unilateral reductions (from 10 per cent to 5 
per cent) in the tariff on textile, clothing and footwear items on 1 January 2015.   
 
International trade plays a vital role in Australia’s economic success, with over one -quarter of 
our economic gro wth over the past five years generated by trade and one in five jobs relating 
to trade. Reductions in tariffs has resulted in real prices falling for consumer products and 
business inputs, including items such as clothing, footwear, motor vehicles, househo ld 
appliances and audio visual equipment.  Further information can be accessed at: 
https://dfat.gov.au/about -us/publications/trade -investment/trade -at-a-glance/trade -
investment -at-a-glance -2019/Pages/default.aspx . 
 
3. TRADE POLICIES AN D PRACTICES BY MEASU RE 
3.1 Measure Directly Affecting Imports  
3.1.4 Other charges affecting imports  
3.1.5.3 Luxury car tax  
3.34 
 
Question 3  
Could Australia outline its rationale for maintaining the Luxury Car Tax in light of the increased 
refunds offered to primary producers and tourism operators from 1 January 2020?  
 
RESPONSE: Eligible primary producers and tourism operators can ap ply for a refund of any 
luxury car tax paid, up to a maximum of AU$10,000, for vehicles acquired on or after 1 July 
2019. Previously, eligible parties could only apply for a partial refund, up to a maximum of 
AU$3,000.  
 
This initiative was designed to pro vide further relief to primary producers and tourism operators 
who acquire passenger vehicles for their business, that are subject to the luxury car tax.  
 WT/TPR/M/396/Add.1  
 
- 222 - 
 
  3. TRADE POLICIES AN D PRACTICES BY MEASU RE 
3.1 Measure Directly Affecting Imports  
3.1.4 Other charges  affecting imports  
3.1.5.5 Excise duties  
 
Question 4  
The United Kingdom notes that wine, brandy, beer and other spirits are all subject to differential tax 
treatment and that the rate of taxation is not necessarily related to the alcohol content of the good 
in question. Please could Australia provide more information on the rationale for this differential 
treatment, especially where goods of similar alcohol content are subject to different taxation, and 
what the aims of this policy are for public health  
 
RESPONSE: Although sprits have been subject to excise throughout Australia’s history, at 
different periods in Australia’s history, beer and wine were not subject to specific taxation. The 
rates applicable were determined by successive governments and are subject to the policy 
priorities and considerations at that time.  
 
3. TRADE POLICIES AN D PRACTICES BY MEASU RE 
3.1 Measure Directly Affecting Imports  
3.1.6 Anti -dumping, countervailing, and safeguards measures  
3.53 
 
Question 5  
According to the report, Australia is a relatively frequent user of anti -dumping and countervailing 
procedures by international comparison. What have recent consultations with industry revealed as 
the main areas identified for the strengthening of Australia’s anti -dumping and countervailing 
system?  
 
RESPONSE: Australia continually monitors the operation of its anti -dumping and countervailing 
system and engages with stakeholders that have interests in the imposition of measures and 
those affected by measures.  
 
3.  TRADE POLI CIES AND PRACTICES B Y MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
3.3.2.4 Transparency  
 
Question 6  
We applaud Australia's commitment to transparency. Can you provide more detail on the method of 
publication of proposed regulations and particularly how these are made accessible to SMEs?  
 
RESPONSE: There are several methods for stakeholders, including SMEs, to maintain 
awareness of (and gain access to) proposed laws and regulations in Australia. This in cludes via 
publication on the Australian Government’s Federal Register of Legislation website 
(https://www.legislation.gov.au ), which also allows stakeholders to subscribe and receive 
updates, as well as similar state and territory government websites. The Australian Government 
also maintains a Business Consultation Website ( https://consultation.business.gov.au/ 
consultation ), which provi des the opportunity for businesses, individuals, industry associations 
and not -for-profit organisations to provide input on proposed policies and regulations.  
 
3. TRADE POLICIES AN D PRACTICES BY MEASU RE 
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements / Sanitary and phytosanitary measures  
3.111  
 
Question 7  
We note that the Australia New Zealand Food Standards code may be amended, inter alia, at the 
request of stakeholders. The United Kingdom seeks further in formation or data on the number of 
requests made for amendments of the Australia New Zealand Food Standards Code in the last five 
years; the number of accepted applications currently in the FSANZ work plan; and whether FSANZ 
has any plans to review the ing redients permitted in flour, cereals, biscuits and baked goods, 
chocolate and confectionary, and energy drinks.  WT/TPR/M/396/Add.1  
 
- 223 - 
 
  RESPONSE: Over the past five years, FSANZ has received between 22 -28 applications per year 
to amend the Australia New Zealand Food Standards Cod e (the Code). For this current financial 
year, to date (January 2020) FSANZ has received 21 applications to amend the Code.  
 
Details of all of the applications submitted and accepted by FSANZ can be found on the FSANZ 
Work Plan at https://www.foodstandards.gov.au/code/changes/workplan/Pages/default.aspx . 
It is a statutory requirement that this work plan is updated every three months but in practice 
this occurs more frequently.  
 
FSANZ currently has no intentions to review the ingredients permitted in flour, cereals, biscuits 
and baked goods, chocolate and confectionary. A review is currently underway in relation to the 
composition and labelling of electrolyte drinks ( Proposal P1030). Further information on this 
work can be found at https://www.foodstandards.gov.au/code/proposals/Pages/P1030 
Comp ositionandlabellingofElectrolyteDrinks.aspx . 
 
3. TRADE POLICIES AN D PRACTICES BY MEASU RE 
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.126  
 
Question 8  
Is Australia giving consideration, at the federal, state or t erritory level, to reviewing any of the 
legislative exemptions to conduct that would normally contravene the Competition and Consumer 
Act 2010?  
 
RESPONSE: The Commonwealth, State and Territory governments are required to notify the 
Australian Competition a nd Consumer Commission whenever they enact a legislative exemption 
(pursuant to section 51 of the CCA) to the prohibitions against anticompetitive behaviour 
contained in the Competition and Consumer Act 2010  (Cth) (CCA). The Australian Government 
has no plans to review the exemptions.  
 
3. TRADE POLICIES AN D PRACTICES BY MEASU RE 
3.3 Measures Affecting Production and Trade  
3.3.6 Government procurement  
3.157  
 
Question 9  
The reports note that an exact figure for procurement by states and territories is not available due 
to different methodologies and procurement rules. What is Australia doing to enable the collection 
of statistics on the number and total value of sub -central government contracts covered by the 
WTO’s Agreement on Government  Procurement?  
 
RESPONSE: Following Australia’s recent accession to the WTO Agreement on Government 
Procurement (GPA), Australia will comply with its reporting obligations including in relation to 
the number and total value of sub -central government contrac ts covered by the GPA.  
 
3. TRADE POLICIES AN D PRACTICES BY MEASU RE 
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.5.5 Geographical indications  
3.194  
 
Question 10  
We note that the report outlines the grounds for rejecti on of an application to register a new GI for 
wine and that the Australia New Zealand Food Standards Code contains prohibitions on infringement 
of GIs for spirits. The United Kingdom seeks clarification on whether Australia holds an exhaustive 
list of geog raphical indications that it considers to be “the common name for a type of style” of wine 
or any other food product, and whether the prohibition on infringement of GIs applies to all spirits 
currently sold in Australia or only those protected in Australia  as a registered certification trademark, 
and how many cases of infringements of this standard have been identified by authorities over the 
last five years.  
 WT/TPR/M/396/Add.1  
 
- 224 - 
 
  RESPONSE: Australia does not hold a list of geographical indications (GIs) that are considered 
common names for a type or style of wine or other food product. The determination of whether 
a term is a common name is made when a GI is applied for in Australia, based o n consumer 
perception of that indication in Australia at the time of application.  
 
The prohibition on infringement of spirit GIs contained in the Australia New Zealand Food 
Standards code relates only to spirit GIs that are protected in Australia through the certification 
trade mark system. No infringements of this standard have been prosecuted in the last five 
years.  
 
3. TRADE POLICIES AN D PRACTICES BY MEASU RE 
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.6 Parallel importation  
3.212  
 
Question 11  
The report notes that the Government is monitoring industry -driven reforms that have resulted in 
Australian books being more competitively prices and supplied to Australian consumers. In view of 
industry -driven refor ms, does Australia still support the removal of parallel import restrictions on 
books, as indicated in the Government’s responses to the recommendations of the Competition Policy 
Review and the Productivity Commission Inquiry into Intellectual Property Arr angements?  
 
RESPONSE: In light of industry reforms the Government is considering whether changes in 
regulation impacting parallel importation are warranted at this time.  
 
3. TRADE POLICIES AN D PRACTICES BY MEASU RE 
3.3 Measures Affecting Production and Trad e 
3.3.7 Intellectual property rights  
3.3.7.8 Border measures  
3.218  
 
Question 12  
We note that the Australian Border Force (ABF) of the Department for Immigration and Border 
Protection administers border enforcement measures for trademarks and copyrights. The United 
Kingdom seeks clarification on whether border enforcement measures for trademarks and copyrights 
also extend to geographical indications and provide any further data they have on cases of 
infringement discovered at the border?  
 
RESPO NSE: Trade Marks and Copyright enforcement does not extend to Geographical 
Indications (GIs), other than for those GIs that are registered as Trade Marks and notified to 
the Australian Border Force as part of Australia’s Notice of Objection Scheme.  
https://www.abf.gov.au/importing -exporting -and-manufacturing/importing/how -to-
import/types -of-imports/intellectual -property  
 
Under the Imported Food Control Act 1992 , the Department of Agriculture, Water and the 
Environment enforces the Australia New Zealand Food Standards Code, including the standards 
for use of GIs for spirits. To date, no enforcement action has been taken at the border for 
infringement of the spiri ts standard.  
 
Under the Wine Australia Act 2013 , it is a criminal offence to import wine that has a false or 
misleading description or presentation or presented with a GI protected in Australia (section 
40C). An exemption to this offence provision is prov ided for small quantities of wine as per the 
definition in the Wine Australia Regulations 2018 (section 28). Wine Australia has inspection 
powers associated with the enforcement of these provisions in relation to wine premises (any 
place or conveyance wher e wine goods or documents relating to wine are or might be located) 
that would include those used by importers of wine. This power does not extend beyond 
Australian territories.  
 
 
 WT/TPR/M/396/Add.1  
 
- 225 - 
 
  4. TRADE POLICIES BY  SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1.1 Main features  
4.1 
 
Question 13  
In relation to climate change, we note that Australia's primary industries reduced their greenhouse 
gas emissions by 63% between 1996 and 2016. The United Kingdom seeks further information on 
Australia’s pla ns for further reduction in greenhouse gas emissions from Australia’s primary 
industries . 
 
RESPONSE: The Emissions Reduction Fund (ERF) incentivises activities to reduce emissions or 
sequester carbon across all sectors of the economy, including in the land  management, 
agriculture and industrial sectors. The scheme establishes methods for projects to earn 
Australian Carbon Credit Units by taking action to reduce emissions or sequester carbon. These 
units can be sold to the Australian Government through a car bon abatement contract or to other 
businesses seeking to offset their emissions.  
 
Many ERF projects have abatement profiles extending beyond 2020. The 2019 projections 
indicate the ERF is expected to deliver 61 Mt of contracted abatement to 2020 and is pr ojected 
to deliver a further 240 Mt of abatement to Australia’s 2030 emissions reduction target from 
contracted projects prior to 2020.  
 
In 2019 the Australian Government announced the Climate Solutions Fund, providing an 
additional AU$2 billion to purchas e abatement and build on the success of the ERF.  
 
Primary industries continue to play a key role in the reduction of Australia’s greenhouse gasses. 
Agriculture and vegetation projects under the ERF contribute more carbon abatement and 
sequestration than a ny other sector. These projects will continue to reduce Australia’s 
greenhouse gas emissions by undertaking activities such as planting native trees on previously 
cleared land, or capturing and destroying methane from effluent waste at piggeries.  
 
Australia’s agricultural industry has recently made announcements about reducing greenhouse 
gasses. The peak body for Australian farmers and agriculture, the National Farmers Federation, 
has the goal of Australian agriculture trending towards carbon neutra l by 2030 (see their 
roadmap for more details). Peak body Meat and Livestock Australia is also aspiring to have a 
carbon neutral red meat industry by 2030 (see the Red Meat 2030 plan for more details). The 
Australian government is working with the agricult ure industry to help support these industry 
led initiatives.  
 
4. TRADE POLICIES BY  SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.1.2.2 Exports  
4.9 
 
Question 14  
Noting Australia’s Export Supply Chain Assurance System and its aim to deliver animal welfare 
outcomes, the UK would appreciate further information on how Australia sets animal welfare 
standards at state or federal level in addition to those recommended by the World Organisation for 
Animal Health?  
 
RESPONSE: State and territory gover nments are responsible for animal production and welfare 
laws and their enforcement. The states and territories set and enforce animal welfare standards 
through administration of state legislation for animal welfare or the prevention of animal cruelty.  
 
For Australia’s livestock industries, the Model Codes of Practice for the Welfare of Animals 
(Model Codes) establish an agreed set of principles and practices. The Model Codes were 
endorsed by the then Primary Industries Ministerial Council. The Model Codes serve as voluntary 
guides for people responsible for the welfare and husbandry of a range of livestock animals.  
 
Work is now underway to update the Model Codes and convert them into Australian Animal 
Welfare Standards and Guidelines. The new documents will  incorporate both national welfare WT/TPR/M/396/Add.1  
 
- 226 - 
 
  standards and industry guidelines for each species or enterprise. Animal welfare standards 
endorsed by all state and territory primary industry ministers will be implemented in state and 
territory legislation.  
 
The Austra lian Government is working together with states and territories to develop and 
implement nationally consistent standards and guidelines for farm animal welfare. The 
Australian Animal Welfare Standards and Guidelines update and replace the Model Code of 
Practice for the Welfare of Animals, for particular animal industries. The standards are designed 
to be implemented in state and territory legislation. The standards are accompanied by 
voluntary guidelines that set out recommended practice for the care and hu sbandry and 
animals.  
 
The standards and guidelines are being developed under the direction of an Animal Welfare 
Task Group, which reports to the Agriculture Senior Officials’ Committee. The task group 
includes representatives from each of the state and ter ritory government departments 
responsible for animal welfare, the Department of Agriculture, Water and the Environment and 
the New Zealand Ministry of Primary Industries.  
 
During the development of the standards and guidelines for each industry or species,  a 
stakeholder advisory group is formed to provide advice. The group includes veterinarians, 
animal welfare groups and industry representatives. The draft standards and guidelines are also 
released for public consultation, and community views are incorpora ted in the development of 
the final standards and guidelines. Standards and guidelines are provided to agriculture 
ministers for noting or endorsement. It is then up to each state and territory government to 
implement the standards, as appropriate for thei r jurisdiction. The guidelines are a useful 
reference for people responsible for the care and management of animals and may be used in 
industry quality assurance programs or other initiatives.  
 
For further information on Australia’s animal welfare system, including animal welfare regulation 
in each state and territory of Australia, please refer to Chapter 10 of the Animal Health in 
Australia report (2018).  
https://www.animalhealthaustralia.com.au/our -publications/animal -health -in-australia -report/  
 
4. TRADE POLICIES BY  SECTOR  
4.3 Manufacturing  
4.67 
 
Question 15  
Please detail the kinds of assistance provided to businesses through the SME Export Hubs Initiative, 
including how many firms have benefitted from this programme today and the share of firms that 
engage in exporting. Is assistance provided directly to firms, or though associations or similar 
organisations?  
 
RESPONSE: The Small and Medium Enterprises (SME) grant supports SME export hubs 
developing local, regional and Indigenous brands. The hubs will work with Growth Centres in 
each sector to take advantage of export opportunities. ( https://www.business.gov.au/Grants -
and-Programs/Small -and-Medium -Enterprises -Export -Hubs).  
 
The Initiative funds new and existing export hubs in the Growth Centre sectors: advanced 
manufacturing; cyber securit y; food and agribusiness; medical technologies and 
pharmaceuticals; mining equipment, technology and services; and oil, gas and energy 
resources.  
 
The competitive program provides grants of AU$150,000 to AU$1.5 million. Grant funds must 
be matched with cash and projects must conclude by 30 June 2022. Matched funding can come 
from sources other than Commonwealth funds, such as state and local governments and 
industry.  
 
 
 
 
 WT/TPR/M/396/Add.1  
 
- 227 - 
 
  4. TRADE POLICIES BY  SECTOR  
4.4 Services  
4.4.3.1 Maritime transport  
4.149  
 
Question  16 
The report mentions the Government’s introduction of the Coastal Trading (Revitalising Australian 
Shipping) Amendment Bill 2017, which lapsed at the end of the 45th Parliament. The United Kingdom 
would like to understand whether Australia intend to rei ntroduce amendments to the Coastal Trading 
(Revitalising Australian Shipping) Act 2017 to simplify coastal trading regulation?  
 
RESPONSE: The Coastal Trading (Revitalising Australian Shipping) Amendment Bill 2017 (the 
Amendment Bill) is no longer current. The Amendment Bill was available for debate in the 
Senate in April 2019 when Parliament was prorogued. It has not been reintroduced. 
Consultation is currently being undertaken with stakeholders on options for coastal trading 
reform. The outcomes o f this consultation will be provided to the Australian Government for 
consideration.  
 
GOVERNMENT REPORT  
 
Question 17  
What legislative or regulatory changes specific to international trade has Australia taken or does it 
plan to take in order to assist small and medium -sized enterprises in accessing global markets? Do 
any programmes provide assistance specifically to SMEs owned by women?  
 
RESPONSE: Recognising the importance of SMEs to the Australian economy, particularly for 
employment, the government i s committed to supporting SMEs and opportunities for growth. 
This includes efforts to assist SMEs access global markets. Australia recognises that establishing 
export markets abroad is a challenging task for SMEs.  
 
Australia has been at the forefront of de veloping modern, comprehensive free trade agreements 
(FTAs) to help Australian exporters internationalise. Australia recognises that SMEs may benefit 
from the inclusion of specific chapters and/or obligations to assist them to access FTAs. The 
SME-specific  chapters in the CPTPP and Peru -Australia FTA, and agreement to include an SME 
chapter in the Australia -EU FTA, are examples where Australia and its negotiating partners have 
recognised and agreed to include these obligations aimed at SMEs. Australia suppo rts the 
inclusion of SME -specific chapters and/or SME -specific aspects in traditional chapters such as 
Services, e -Commerce, Rules of Origin and Government Procurement, within FTAs that are 
currently under negotiation.  
 
The Government remains strongly comm itted to increasing awareness and use of FTAs, so 
Australians can take advantage of the competitive edge these FTAs deliver.  
 
The Government is committed to helping businesses, particularly SMEs whether it be indigenous 
businesses or businesses owned by wo men, make the most of opportunities FTAs provide for 
those businesses, including through:  
• the Government’s FTA seminar series;  
• bespoke outreach to third parties, for instance by speaking at third party events, 
and providing materials to support third parti es running their own activities;  
• detailed online information about FTAs, including factsheets summarising 
outcomes and guides for businesses;  
• FTA email inboxes where SMEs and members of the public can seek advice from 
FTA experts with specific questions o r issues;  
• the FTA Portal, a website assisting businesses that contains easy -to-access 
information about the specific benefits of Australia’s FTAs in both goods and 
services as well as trade data.  
 
The Government also provides assistance to SMEs and other b usinesses that export or are 
seeking to export, including through Austrade and Export Finance Australia.  
 
Australia is the Chair of the APEC Small and Medium Enterprises Working Group (SMEWG) for 
2019-2020. Australia actively partakes in discussions with other SMEWG member economies WT/TPR/M/396/Add.1  
 
- 228 - 
 
  on the topics of assisting SMEs, including those owned or led by women and oth er marginalised 
groups, in accessing to global markets, and share best practice stories.  
 
The Australian Government is also supporting small businesses engage with technology through 
the Small Business Digital Champions Project and Australian Small Busines s Advisory Services 
(ASBAS) Digital Solutions Program. Research has shown that when small business are digitally 
engaged, they are seven times more likely to be exporting.1 The Digital Champions project 
offers small businesses the opportunity to undergo a comprehensive digital transformation, 
including women -led small businesses. ASBAS provides small business with low cost, high 
quality advice on a range of digital solutions to help them meet their business needs and grow 
their digital capabilities.  
 
Footno te 1: Deloitte Access Economics, Connected Small Businesses 2017, 
https://www2.deloitte.com/au/en/pages/economics/articles/connected -small-businesses -
google.html . 
 
GOVERNMENT REPORT  
 
Question 18  
Has Australia encountered any significant compliance issues with the broadening of its collection of 
the Goods and Services Tax to low value imported goods? The Australian Taxation Office has 
reported of collections having exceeded expectations but what has been the level of compliance, in 
particular for individual businesses other than international platform operators?  
 
RESPONSE: All known major suppliers and platforms are complying with this measure. A 
concerted campaign of comprehensive communications and client engagement led to high levels 
of willing compliance from overseas businesses. The majority of these are individual businesses, 
not platform operators. Whilst this rate of compliance is good, the Australian Taxation Office 
continues to follow up with overseas businesses where evidence suggests that they are not 
complying with their obligations.  
The Australian Taxation Office made a public statement about the success of this reform on 1 
July 2019: https://www.ato.gov.au/Media -centre/Articles/GST -on-low-value -goods -measure -
continues -to-exceed -expectations/ . 
 
GOVERNMENT REPORT  
 
Question 19  
How has Australia’s intention to reform the regulatory landscape to minimize the regulatory burden 
for SMEs led to changes in the way Australia plans, designs, issues, implements and reviews 
regulatory measures?  
 
RESPONSE: A Regulatory Impact S tatement (RIS) is required for all Cabinet Submissions and 
non-Cabinet proposals that have significant regulatory impacts. The RIS, which documents the 
regulatory impact analysis process, describes the impacts of the proposal, along with alternative 
option s to address the policy problem. It also describes implementation arrangements. RISs 
are published following an announcement of a decision.  
 
The Australian Government also has the Regulatory Performance Framework. This requires over 
70 Australian Governmen t regulators that administer, monitor or enforce regulations to 
measure their performance against outcomes -based key performance indicators. These are 
based on metrics which each regulator agrees with relevant stakeholders  
 
The Australian Government continues to look for new ways to improve its deregulation policy 
approach.  
 
GOVERNMENT REPORT  
 
Question 20  
Please describe how Australia’s regulatory processes including regulatory analysis allow Australia to 
determine the impact of proposed regulatory measures on trade and investment, including that of 
SMEs?  
 WT/TPR/M/396/Add.1  
 
- 229 - 
 
  RESPONSE: The Australian Government’s regulatory impact analysis settings require a 
Regulatory Impact Statement (RIS) which examines the economic, social and environmental 
impac ts of all significant regulatory proposals. The impact analysis requires all significant 
impacts to be described, including where relevant trade and investment impacts, as well as a 
distributional analysis on significantly affected cohorts, such as SMEs.  
 
GOVERNMENT REPORT  
 
Question 21  
Has Australia assessed the impact on third countries, including developing countries, of trade 
agreements that entered into force or were reviewed during the TPR period? Has Australia considered 
taking any action based on the  results of these assessments?  
 
RESPONSE: Australia has not assessed the impact on third parties of its trade agreements that 
entered into force or were reviewed during the Trade Policy Review period.  
  WT/TPR/M/396/Add.1  
 
- 230 - 
 
  United States  
Questions based on the Secretariat Report (WT/TPR/S/396)  
SUMMARY  
Page 8, paragraph 9:   The Secretariat’s report notes specific tax regimes for goods and services 
as part of Australia’s system of indirect taxation.  
 
Questions 1 -2 
1. How does Australia ensure that product -specific rebates and tax exemptions which apply to 
domestic products are equally applied to imported products?  
 
RESPONSE: The Australian Goods and Services Tax (GST) has a limited number of exemptions, 
in specific areas such as food, ed ucation and health. The GST is designed to be a tax on final 
consumption and in regards to these exemptions, imported goods are treated similarly to 
domestically produced goods.  
 
2. What are the differences between the application processes for domestic produ cts versus 
imported products to utilize product -specific tax exemptions and rebates?  
 
RESPONSE: The Australian Goods and Services Tax has a limited number of exemptions, in 
specific areas such as food, education and health. The GST is designed to be a tax on final 
consumption and in regards to these exemptions, imported goods are treated similarly to 
domestically produced goods.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requir ements  
3.1.1.1 Documentation requirements and trade facilitation measures  
Page 39, paragraph 3.9:   With the ending of the Offshore Pre -Shipment Inspection Program (OPI), 
U.S. industry has noted concerns with the ability of Australia to clear for import U.S . agricultural 
products, including highly perishable products. This includes products under OPI, as well as products 
currently not covered. U.S. industry has noted that routine processing delays, spoiled produce, and 
business losses are not uncommon. Addit ionally, U.S. industry notes that with the elimination of 
OPI, over 9,700 additional work hours for on -arrival inspections will be necessary. The United States 
has heard from industry that delays for on -arrival inspections have increased from two days to o ver 
seven days.  In addition to clearance delays, there have been reported delays for pest identification, 
which has resulted in industry choosing to fumigate rather than await an identification. The 
Secretariat notes an annual Time Release Study (TRS) ana lysing data on border clearance times.  
 
Question 3  
3. Can Australia provide a copy of the most recent TRS?  
 
RESPONSE: Yes. Time Release Studies are available at:  
https://www.homeaffairs.gov.au/research -and-statistics/statistics/operational -reports .  
 
The Time Release Study 2016 report is the latest currently publishe d report. Australian Border 
Force expects to publish the next report, covering 2017/18 in coming months.  
 
Page 39, paragraph 3.9:   The Secretariat notes that TRS “consistently showed that customs 
procedures are not an impediment to cargo release times.”  
 
Questions 4 -5 
4. Feedback the United States received from industry is that inadequate staffing has had an impact 
on clearance; does the report look at clearance for biosecurity, or only for customs procedures?  
 
RESPONSE: Appendix A on page 33 of the Time Rele ase Study 2016 defines key events covered 
in the Time Release Study. The ‘Customs unimpeded’ event indicates that Australian Border 
Force risk assessment, evaluation and processing have been completed. The ‘Release’ event 
indicates that goods may be subjec t to compliance beyond border with biosecurity directions 
and conditions. The ‘Clearance’ event indicates that all border agency requirements have been 
met and goods may enter into home consumption.  
 WT/TPR/M/396/Add.1  
 
- 231 - 
 
  5. If only customs procedures, has Australia examined clea rance delays due to the elimination of 
OPI for the United States and other countries that had such a program?  If so, can the results 
be provided?   
 
RESPONSE: The Offshore Pre -clearance Inspection Program (OPI) closes on 30 April 2020. The 
Department of A griculture, Water and the Environment will monitor clearance times in the Time 
Release Study to monitor impacts (if any) of the closure of OPI.  
 
3.1.5 Other charges affecting imports  
3.1.5.3 Luxury car tax  
Page 48, paragraph 3.34: According to the Secretariat’s report, Australia imposes a luxury car tax 
on passenger motor vehicles.  The report states: “The tax is also applied to second -hand motor 
vehicles, including on cars where the LCT has already been paid, but only if the car has increased in 
value. Subsection 25(2) of the New Tax System (Luxury Car Tax) Act, 1999 exempts commercial 
vehicles not designed for the principal purpose of transporting passengers, emergency vehicles, 
vehicles specifically fitted for the transportation of disabled person s in wheelchairs, and motor homes 
and campervans from the LCT. Since 2017, certain public institutions, such as museums, galleries 
and libraries, have also been exempted from the payment of LCT on cars imported or acquired as 
collectors' pieces or works of  art for the sole purpose of public display.”  
 
Questions 6 -7 
6. According to Australia’s 2018 -2019 Budget, from January 1, 2019, the Government of Australia 
removed luxury car tax on cars re -imported into Australia, following a refurbishment overseas; 
however , the Secretariat Report does not mention this exemption. Can Australia confirm that 
this tax exemption has been implemented?  
 
RESPONSE: The exemption from luxury car tax for cars that are re -imported following service, 
repair or refurbishment overseas ha s come into effect, and applies to re -importations occurring 
on or after 1 January 2019.  
 
7. Additionally, can Australia clarify if this exemption applies to “second -hand motor vehicles, 
including on cars where the LCT has already been paid, but only if the c ar has increased in 
value”?  
 
RESPONSE: This exemption applies to cars that have been exported from Australia, subjected 
to treatment after export, and subsequently re -imported, provided the ownership of the car 
does not change. As such, this exemption appl ies to second -hand cars.  
 
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
Page 67, paragraph 3.86:   The Secretariat’s report discusses tariff and budgetary assistance to 
industry.  
 
Questions 8 -10 
8. Does Australia apply tariffs and/or fees to imported and domestic ethanol, and if so, when are 
they applied?  
 
RESPONSE: Domestically produced ethanol is subje ct to excise duty which is applied when the 
fuel is delivered into the domestic market. Imported ethanol is subject to excise equivalent 
customs duty which is applied when the fuel is entered for home consumption.  
 
9. Which agency within Australia sets and o versees tariffs and/or fees on imported and domestic 
ethanol?  
 
RESPONSE: The Department of the Treasury has policy responsibility for both excise duties 
and excise equivalent customs duties. The Australian Taxation Office and the Australian Border 
Force u ndertake the indexation of excise duties and excise equivalent customs duties, update 
the relevant client facing system and inform stakeholders of the changes.  
 
10. Can Australia provide documenting these tariffs and/or fees, and when they were applied?  
 WT/TPR/M/396/Add.1  
 
- 232 - 
 
  RESPO NSE: The Australian Taxation Office publishes excise duty rates on its website 
(https://www.ato.gov.au/business/excise -and-excise -equivale nt-goods/fuel -excise/excise -
rates-for-fuel/) including the date on which indexed rates commence. The Australian Border 
Force publishes excise equivalent customs duty rates on its website 
(https://www.abf.gov.au/help -and-support -subsite/CustomsNotices/2020 -05.pdf ) including 
the date on which indexed rates commence.  
 
3.3.3 Sanitary and phytosanitary requirements  
Page 70, paragraph 3.102:  We appreciate Australia’s development in the area of sanitary and 
phytosanitary measures through the June 16, 2016 entry into force of the Biosecurity Act, 2015. 
This paragraph states, “the new biosecurity legislation is co -administered by the ministers 
responsible for agriculture and health,” and notes that “The Biosecurity Regulations, 2016 are 
administered by the Department of Agriculture, while the Biosecurity (Human Health) Regulations, 
2016 are administered by the Department of Health.”  
 
Questions 11 -12 
11. Please clarify and provide further explanation as to how the Departments of Agriculture and 
Health coordinate their co -administration of the biosecurity legislation.  
 
RESPONSE: The construct and co -administration of the Biosecurity Act 2015 enables cle ar 
delineation of which department is responsible for particular provisions and which provisions 
are jointly administered. This is supported by a Memorandum of Understanding between the 
Department of Health and Department of Agriculture, Water and Environm ent, which formalises 
arrangements for implementation. The two responsible Deputy Secretaries from both 
departments hold regular meetings to discuss each departments' regulatory activities which 
supports business as usual functions and emergency preparedne ss and response.  
 
12. How do these departments differ in their administration and implementation of this legislation?  
 
RESPONSE: When proposing amendments to the Biosecurity Act, responsible Ministers consult 
each other and agree changes. The Department of Health has no physical presence at Australia’s 
international borders. Policies supporting the human health aspects of the Biosecurity Act are 
developed by Health and endorsed by jurisdictional health departments and Department of 
Agriculture,  Water and the Environment. The Department of Agriculture, Water and the 
Environment is responsible for the non -health related aspects of the Biosecurity Act. In its role 
for the administration of the legislation (not including implementation), the Departm ent of 
Agriculture, Water and the Environment consults with the Department of Health in seeking its 
approval when the Department proposes to amend the Biosecurity Regulations 2016.  
 
Page 71, paragraph 3.103:  We understand and appreciate the steps that Aust ralia has taken to 
clarify the term “commercial -in-confidence” information through the Biosecurity Legislation 
Amendment (Miscellaneous Measures) Bill, 2018.   
 
Questions 13 -14 
13. Could the representative of Australia please provide further details regarding the information 
and criteria by which the Director of Biosecurity recognizes information as “commercial -in-
confidence”?  
 
14. Please clarify the criteria and bases for recognizing information as “not readily discoverable” 
and as causing “competitive detriment to a person.”  
 
RESPONSE TO QUESTIONS 13 -14: The Biosecurity Legislation Amendment (Miscellaneous 
Measures) Act 2018  amends the Biosecurity Act 2015 by removing the requirement for a person 
to demonstrate to the Director of Biosecurity that information is commercial -in-confidence, and 
provides that for information to be commercial -in-confidence, the Director of Biosecurity must 
be satisfied that the information meets the criteria as at section 15:  
 
Information is commercial in confidence if the Director of Biosecurity is satisfied that:  
(a)  release of the information would cause competitive detriment to the person; and  
(b)  the information is not in the public domain; and  
(c)  the information is not required to be disclosed under another Australian law; and  
(d)  the information is not readily discoverable.  WT/TPR/M/396/Add.1  
 
- 233 - 
 
  The Director of Biosecurity therefore can determine, at their discretion, if information is to be 
considered to be commercial in confidence, and therefore is protected information under section 
9 of the Act. This amendment is only aimed at improving administrative efficiency, and does 
not substantively amend existing criteria under the section.  
 
Page 71, paragraph 3.105:  We recognize that Australia’s Imported Food Control Amendment Act, 
2018 strengthens the safety system for imported food and “strengthens the monitoring and 
management of new and emerging food safety risks, and incident response.” Additionally, we 
recognize that Australia’s Department of Agriculture has maintained a whole s ystem agreement 
(Food Safety Recognition Agreement) in place with the United States since 2017. This paragraph 
also states that, “For certain imported food, the Department of Agriculture requires evidence of 
through -chain controls, to demonstrate that food  safety hazards were effectively managed during 
production.”  
 
Questions 15 -16 
15. Please clarify the criteria for identifying certain imported foods that require evidence of through -
chain controls.  
 
RESPONSE: Evidence of through -chain controls for certain imported food will need to be 
demonstrated through importers providing a food saf ety management certificate. There are 
currently no foods that require a food safety management certificate. To determine if a food 
needs to be covered by a food safety management certificate, the Department of Agriculture, 
Water and the Environment will co nsider if:  
- the hazard(s) of concern causes serious illness and there is strong evidence of 
foodborne illness associated with the food;  
- analytical testing cannot provide an acceptable level of assurance that the hazard(s) is 
not present because of sampling limitations and/or the lack of a reliable method;  
- there are no processing steps that will eliminate the hazard(s) of concern and 
management of the hazard must be ensured through implementing supply -chain 
controls.  
 
The Department of Agriculture, Water and the Environment may use sources such as imported 
food risk advice from Food Standards Australia New Zealand and international guidelines to 
assess these considerations. The department will make a WTO notification when a food is 
determined to require a food  safety management certificate and a 12 month implementation 
period will apply to allow importers time to adjust to the change.  
 
16. Does the Department of Agriculture also require evidence of through -chain controls from foods 
covered by the U.S. -Australia Foo d Safety Recognition Agreement?  
 
RESPONSE: There are currently no foods that require a food safety management certificate for 
importation. When the Department of Agriculture, Water and the Environment determines that 
a food requires evidence of through -chain controls, consideration will be given to whether the 
requirement falls within scope of the Food Safety Recognition Agreement. The Department will 
advise the USFDA if evidence of through -chain controls are required for certain foods in the 
future.  
 
Page  71, paragraph 3.106:  
Question 17  
17. Could the representative of Australia explain what type and how information received from third 
countries is used in the risk assessment process (both in the regulated process and in non -
regulated procedures)?  
 
RESPONSE: In the regulated Biosecurity Import Risk Analysis (BIRA) process, information from 
third countries may be used as part of a BIRA report if the Director of Biosecurity considers the 
information relevant or if the information directly addresses the question o f "the potential for 
any economic consequences associated with the entry, establishment or spread of a disease or 
pest if the goods, or goods included in the class of goods, were to be imported into Australian 
territory" (Biosecurity Regulation 2016 s30). All the information used to determine the BIRA 
findings must be included in the final BIRA report.  
 WT/TPR/M/396/Add.1  
 
- 234 - 
 
  Page 71, paragraph 3.106:  The Secretariat’s report notes the 2016 mandate of the Department 
of Agriculture to undertake risk analysis in response to requests to import goods that have never 
been imported into Australia, or have not previously been imported from a particular countr y or 
region.  
 
Question 18 -20 
18. Could the representative of Australia explain the criteria by which Department of Agriculture 
determines to conduct risk analysis a non -regulated procedure?  
 
RESPONSE: There are two main types of risk analyses used by the depa rtment:  
• a Biosecurity Import Risk Analysis (BIRA) which is conducted through a regulated 
process provided for in the Biosecurity Act and the Biosecurity Regulation;  
• a non -regulated risk analysis (such as scientific reviews of existing policy and import 
conditions, pest -specific assessments, weed risk assessments, biological control agent 
assessments or scientific advice).  
A BIRA will be undertaken when:  
• relevant risk management measures have not been established; or  
• relevant risk management measures for a  similar good and disease/pest combination 
do exist, but the likelihood and/or consequences of entry, establishment or spread of 
diseases or pests could differ significantly from those previously assessed.  
 
A risk analysis which does not meet the criteria for a BIRA is undertaken as a non -regulated risk 
analysis. Further information about the types of non -regulated risk analyses the department 
conducts is on the department’s website.  
 
19. How does Australia take into account the standards established by Codex A limentarius, the 
World Organization for Animal Health, and the International Plant Protection Convention when 
deciding to conduct a risk assessment?  
 
RESPONSE: Risk assessments follow a regulated process (BIRA) or a non -regulated process 
that meet internat ionally agreed principles outlined in the SPS Agreement and in the OIE and 
IPPC codes and standards concerning import and pest risk analyses.  
 
20. Is there a process to appeal a negative determination?   
 
RESPONSE: The process is outlined in the Biosecurity Risk Analysis Guidelines available at 
https://www.agriculture.gov.au/biosecurity/risk -analysis/guidelines . 
 
Page 72, paragraph 3.108:   We recognize that most import permits are issued within 20 working 
days of receipt, provided the application has been completed correctly and required fees paid in full.  
 
Question 21  
21. Is there a process to appeal a negative determination?  
 
RESPONSE: The decision to refuse, vary, suspend or revoke an import permit, or to impose or 
vary a condition on a permit, is a reviewable decision under the Biosecurity Act 2015. The 
applicant/permit holder can request the Director of Biosecurity to condu ct a formal internal 
review of these reviewable decisions. The decision of the Director of Biosecurity or the internal 
reviewer is also subject to further external review by the Administrative Appeals Tribunal.  
 
Permit decisions and advice issued through t he Biosecurity Import Conditions System (BICON) 
will indicate the contact point and criteria for requesting a review of a decision.  
 
Page 73, paragraph 3.112:  We recognize that Australia introduced a new country of origin 
labelling system on July 1, 2016 t hat became mandatory for “priority food” from July 1, 2018.  
 
Question 22  
22. Please clarify the criteria for what constitutes “priority food.”  
 
RESPONSE: A food will be a priority item unless it belongs to one of the following non -priority 
food categories:  
1. seasonings  WT/TPR/M/396/Add.1  
 
- 235 - 
 
  2. confectionery  
3. biscuits and snack foods  
4. soft drinks and sports drinks  
5. alcoholic drinks  
6. tea and coffee  
7. bottled water.  
 
Further information is available in the Australian Competition and Consumer Commission guide 
for business: https://www.accc.gov.au/system/files/Country%20of%20Origin%20food%20% 
20labelling%20Guide_March%202019.pdf . 
 
Page 73, paragraph 3.113:   We recognize that, in Australia, activities with genetically modified 
(GM) crops are regulated in accordance with the Co mmonwealth Gene Technology Act, 2000, the 
Gene Technology Regulations, 2001, and corresponding state and territory legislation. We also 
understand that key elements of the Commonwealth Gene Technology Act, 2000 are the 
establishment of the Gene Technology Regulator and committees providing expert advice to the 
Regulator, a process to assess risks associated with genetically modified organisms (GMOs), and the 
creation of a database of all GMOs approved in Australia.  
 
Questions 23 -24 
23. Please confirm that the r isk assessment process described in the Act follows international 
principles consistent with World Organization for Animal Health (OIE) and International Plant 
Protection Convention risk management standards.  
 
24. Could the representative of Australia please p rovide greater detail as to the process by which 
the Gene Technology Regulator and Committees assess risks associated with GMOs and 
determine which GMOs are approved in Australia?  
 
RESPONSE TO QUESTIONS 23 -24: The Gene Technology Act 2000 (the Act) require s that 
the Gene Technology Regulator (the Regulator) prepares a risk assessment and a risk 
management plan before issuing a licence authorising dealings with genetically modified 
organisms (GMOs). For licence applications for dealings involving intentional  release of a GMO 
into the environment, section 51 of the Act and paragraph 10(1)(b) of the Gene Technology 
Regulations 2001 list the matters the Regulator must take into account in preparing the risk 
assessment and risk management plan. The legislation do es not provide a risk analysis 
approach.  
 
A key document that informs the approach adopted by the Regulator in undertaking risk 
analyses and arriving at risk management decisions and licence conditions is the Risk Analysis 
Framework developed within the Of fice of the Gene Technology Regulator. The Framework is 
consistent with the risk analysis approaches of the World Organization for Animal Health and 
International Plant Protection Convention.  
 
The Regulator must also seek scientific and technical advice f rom the Gene Technology Technical 
Advisory Committee (GTTAC) on all Risk Assessment and Risk Management Plans for licence 
applications proposing dealings involving intentional release of GMOs into the environment. 
GTTAC is an expert advisory committee appo inted by the Minister with responsibility for gene 
technology. It comprises eminent scientists with expertise in areas such as clinical medicine, 
molecular biology, toxicology, plant biotechnology, virology, immunology, ecology and risk 
assessment.  
 
Part 5, Division 5 of the Act provides the requirements for the Regulator’s decisions on licence 
applications. Having regard to the risk assessment and risk management plan, the Regulator 
must not issue the licence unless satisfied that any risks posed by the dealings proposed to be 
authorised by the licence are able to be managed in such a way as to protect the health and 
safety of people and the environment.  
 
Further information is available on the Office Gene Technology Regulator’s website, including:  
The Risk Analysis Framework http://www.ogtr.gov.au/internet/ogtr/publishing.nsf/Content/ 
raffinal5 -toc/$FILE/raffinal5_2.pdf . 
 
 WT/TPR/M/396/Add.1  
 
- 236 - 
 
  3.3.6 Government Procurement  
Page 80, paragraph 3.143:  In subsection 3.143 the Secretariat reports, “…the Government 
recently agreed to a new Procurement Connected Policy. Since 1 July 2019, businesses tendering 
for government contracts above AUD 4 million are r equired to demonstrate that they have a 
satisfactory tax record. This is to ensure that suppliers are not able to make more competitive bids 
at the procurement point because they have saved costs by not complying with their key tax 
obligations.”  
 
Questions  25-27 
25. Could Australia please explain what is required of suppliers to demonstrate that they have a 
satisfactory tax record under the Procurement Connected Policy?  
 
26. What is the evaluation process for determining whether a supplier meets satisfactory 
requir ements?  
 
27. Does this requirement apply to foreign suppliers and domestic suppliers alike?  
 
RESPONSE TO QUESTIONS 25 -27: Detailed information is available in the publication, Black 
economy – increasing the integrity of government procurement: Procurement conn ected policy 
guidelines.  
 
Part 6 of the publication states that a satisfactory Statement of Tax Record (STR) will be issued 
if the following conditions are met by the tenderer:  
i. The tenderer is up -to-date with registration requirements which may include  being registered 
for an Australian Business Number and Goods and Services Tax, and having a Tax File Number;  
ii. The tenderer has lodged at least 90 per cent of all income tax returns, Fringe Benefit Tax 
returns and Business Activity Statements that were  due in the last four years or the period of 
operation if less than four years. Reasonable delays in lodgements due to extensions agreed to 
by the Australian Taxation Office (ATO) will not affect the receipt of a satisfactory STR; and  
iii. On the date the STR is issued, the tenderer does not have AU$10,000 or greater in 
outstanding debt due to the ATO (excluding debt subject to a taxation objection, review or 
appeal under the provisions of Part IV C of the Taxation Administration Act 19 53). If the 
tenderer has entered into a payment plan with the ATO, they will meet this criterion.  
 
Part 8 of the publication states that directors, partners, trustees or appropriate officers with the 
relevant authority of new businesses and foreign tenderers that do not have an Australian tax 
record of at least four years will need to state on behalf of  the relevant tenderer that it:   
i. is a non -resident with no tax record or a tax record of less than 4 years in Australia (applicable 
to foreign entities);  
ii. will comply and pay all their Australian tax obligations (applicable to Australian and foreig n 
entities);  
iii. has no tax related and/or criminal convictions in the last four years (applicable to Australian 
and foreign entities); and  
iv. is complying with its tax obligations outside of Australia (applicable to foreign tenderers and 
new Australian  businesses).  
 
Once the ATO receives the statements, the new business or foreign tenderer will be issued a 
STR stating they do not have a tax record with the ATO but will be accepted as having a 
satisfactory tax record, or, if they have a tax record with t he ATO of less than 4 years, t hey 
meet the criteria at Part 6.  
 
3.3.7 Intellectual property rights  
3.3.7.5 Industrial property  
3.3.7.5.1 Patents  
Page 86, paragraph 3.172:  The Secretariat’s report notes that innovation patents are provided 
protection for ei ght years.  
 
Question 28  
28. What is Australia’s process for notifying patent holders when their patents expire?  
 WT/TPR/M/396/Add.1  
 
- 237 - 
 
  RESPONSE: IP Australia issues a letter to innovation owners advising their patent has expired, 
the letter includes the expiry date. The expiry date is also published in the Australian Official 
Journal of Patents.  
 
Page 86, paragraph 3.172:  The Secretariat’s report notes that amendments to the Patents Act 
“enable Australian medicine producers to apply to the Australian Federal Court for a c ompulsory 
licence to manufacture and export patented pharmaceuticals to eligible importing countries.”  
 
Questions 29 -33 
29. Can Australia explain what an “eligible importing” country is and how eligibility is determined?  
 
RESPONSE: An ‘eligible importing country’ is defined in regulation 1.4A of the Patents 
Regulations 1991 to be the following kinds of foreign countries:  
(a) a WTO member that notifies the Council for TRIPS, in accordance with the Annex to the 
TRIPS Agreement, of the member’s intention to use the system set out in Article 31bis of the 
TRIPS Agreement and the Annex to that Agreement as an importer;  
(b) a least d eveloped country.  
 
This means that any foreign country that notifies the Council for TRIPS of its intention to use 
the system as an importer, or any least developed country, is eligible to import pharmaceutical 
products under the system. A least developed country is one recognised as such by the United 
Nations on its website.  
 
This definition of eligible countries includes non -WTO members that are least developed 
countries. This is to extend the potential benefits of the system to more countries in need.  
 
30. Can Australia explain what criteria the Australian Federal Court would consider when 
determining whether to grant a compulsory license to manufacture and export patented 
pharmaceuticals?  
 
RESPONSE: Section 136E of the Patents Act sets out the matters the Fe deral Court must be 
satisfied on in order to make an order to grant a compulsory licence under the system. These 
include:  
• the application is made in good faith;  
• the pharmaceutical product is to be imported by the eligible importing country or by a 
third pa rty importer on behalf of, and with the authorisation of, the eligible importing 
country;  
• the proposed use of the pharmaceutical product is to address a public health problem 
in the eligible importing country, either in circumstances of national emergency or 
other circumstances of extreme urgency, or by the public non -commercial use of the 
product;  
• exploiting the patented invention is necessary to enable the import and proposed use 
of the pharmaceutical product;  
• if the proposed use is public non-commercial use, that the applicant for the licence has 
given the patentee a notice in the approved form seeking authorisation to exploit the 
patented invention, and during the following 30 days the applicant has tried, without 
success, to obtain such a n authorisation on reasonable terms and conditions;  
• the notification requirements in relation to the importation of the product have been 
complied with. These are prescribed in regulation 12.2B of the Patents Regulations and 
comprise that the importing cou ntry is either a least developed country or a WTO 
member that has notified the Council for TRIPS of its intention to use the system as an 
importer, and the importing country has given the Commissioner of Patents a written 
notice setting out certain details ; and  
• the applicant for the licence, the importing country and if applicable the third party 
importer will take reasonable measures to prevent a pharmaceutical product that is 
exported from Australia under the system from being used for another purpose.  
 
Section 136F of the Patents Act sets out the terms that the licence must be granted on, including 
the quantity to be exported, duration of the licence, labelling and notification requirements.  
 
In addition, section 136L of the Patents Act provides that the Federal Court must not make an 
order to grant a licence that is inconsistent with a treaty between Australia and a foreign country.  WT/TPR/M/396/Add.1  
 
- 238 - 
 
  31. What is the obligation of the Australian Federal Court and/or Australian medicine producers to 
consult with patent holders p rior to producing and exporting the compulsory licensed product?  
 
RESPONSE: Under paragraph 136E(1)(e) the Patents Act, if the proposed use of the 
pharmaceutical product is public non -commercial use, the applicant for the licence must first 
attempt to obt ain a voluntary authorisation to use the patented invention. The applicant must 
have given the patentee a notice in the approved form seeking authorisation to exploit the 
patented invention, and during the following 30 days the applicant must have tried to  obtain 
such an authorisation on reasonable terms and conditions. Public non -commercial use includes 
use by a government or a non -profit non -government organisation to address ongoing public 
health problems in the importing country.  
 
If the proposed use is  in circumstances of national emergency or other circumstances of 
extreme urgency, the applicant is not required to first seek authorisation from the patentee.  
 
Under section 136D(5), the patentee is one of the parties to the proceedings to an application 
for a licence under the system.  
 
Under section 136J of the Patents Act, the patentee is to be paid remuneration for the use of 
the patented invention. The amount is to be agreed between the patentee and the applicant for 
the licence, or an amount determine d by the court to be adequate remuneration taking into 
account the economic value to the importing country of the use of the pharmaceutical product.  
 
32. Can Australia explain how Australia plans to comply with Article 31bis of the TRIPS Agreement 
and the Anne x to the TRIPS Agreement, which set out requirements when granting a 
compulsory license for the purpose of export to an eligible importing country?  
 
RESPONSE: The requirements set out in Article 31bis of the TRIPS Agreement and the Annex 
to the TRIPS Agree ment are prescribed in the Patents Act 1990, Chapter 12, Part 3, the 
Schedule to the Patents Act and the Patents Regulations 1991, Chapter 12, Part 2.  
 
https://www.legislation.gov.au/Details/C2019C00088 . 
https://www.legislation.gov.au/Details/F2019C00756 . 
 
For example:  
• Article 31bis paragraph 2 requires that, where a compulsory licence is granted under 
the system, adequate remuneration be paid. This is reflected in section 136J of the 
Patents Act.  
• Paragrap h 1(a) of the Annex defines the intended purpose of exporting the product. 
This is reflected in paragraph 136E(1)(c) of the Patents Act, which requires that the 
proposed use of the pharmaceutical product is to address a public health problem in the 
eligibl e importing country, either in circumstances of national emergency or other 
circumstances of extreme urgency, or by the public non -commercial use of the product. 
Public non -commercial use includes use by a government or a non -profit non -
government organisa tion to address ongoing public health problems in the importing 
country.  
• Paragraph 1(a) of the Annex also defines pharmaceutical product, which is reflected in 
the Schedule to the Patents Act which defines a pharmaceutical product to be any 
patented produc t, or product manufactured through a patented process, of the 
pharmaceutical sector.  
• Paragraph 1(b) of the Annex defines eligible importing countries to be certain Members 
of the WTO. Subsection 136D(1) and Schedule 1 to the Patents Act requires export 
under the Australian system to be to an ‘eligible importing country’. This is defined as 
per the TRIPS Annex but also includes non -WTO members that are least -developed 
counties, so as to extend the potential benefits of the system to more countries in need.  
• Paragraph 2(a) of the Annex sets out the notification requirements of the importing 
country. These requirements are reflected in paragraph 136E(1)(f) of the Patents Act 
and regulation 12.2.B(1) of the Patents Regulations.  
• Paragraph 2(b) of the Annex sets ou t a number of conditions that the compulsory licence 
must contain. These are reflected in section 136F of the Patents Act.  
• Paragraph 2(c) of the Annex sets out the notification requirements for the exporting 
country. Paragraph 136F(1)(h) of the Patents Act  requires the licensee to provide WT/TPR/M/396/Add.1  
 
- 239 - 
 
  information to the Commissioner of Patents to enable Australia to provide this 
information to the Council for TRIPS.  
• Paragraphs 3 and 4 of the Annex require importing countries to take reasonable 
measures to prevent re -exportation of the products that have been imported into their 
territories under the system, and to prevent products from being diverted to their 
territories. Subsection 136D(3) of the Patents Act requires an application for a 
compulsory licence under the sys tem to include a statement that the importing country 
will take such measures.  
 
33. Is a decision by the Australian Federal Court to grant a compulsory license to manufacture and 
export patented pharmaceuticals appealable?  If so, to which court?  
 
RESPONSE: A patentee may seek the leave of the Federal Court to appeal the decision to order 
that a licence be granted, or the decision regarding the terms of the licence.  
 
3.3.7.5.8 Copyright  
Page 92, paragraph 3.205 : According to the Secretariat’s report, the Copyright Amendment 
(Service Providers) Act, 2018 extended the Copyright Act’s safe harbor defenses to a broad range 
of service providers in the disability, education, and cultural sectors.  
 
Questions 34 -35 
34. Can you please elaborate on the types of service providers that fall under these categories?  
 
RESPONSE: Australia's 2018 extension of the safe harbour scheme covers educational 
institutions, through their administering bodies, including universities, schools, technical 
colleges, training bodies and pre -schools; libraries that either make their collection available to 
the public or are Parliamentary libraries, through their administering bodies; archives, through 
their administering bodies, including the Nationa l Archives of Australia and specified state 
archives, galleries and museums; key cultural institutions, through their administering bodies, 
including specific archives and libraries that are not open to the public; and organisations 
assisting persons with a disability, which undertake online activities under the scheme (i.e. 
caching, hosting of third party material).  
 
35. For example, would a university or a library website qualify for the safe harbor?  
 
RESPONSE: Yes, a university or a library website would qua lify for the safe harbour scheme 
where they take the necessary steps to prevent copyright infringement required under the 
scheme.  
 
Page 93, paragraph 3.207 : The Productivity Commission recommended the adoption of a 
principles -based fair -use exception in its 2016 report.  The Secretariat points out that Australia took 
note of the recommendation and resolved to publicly consult on more flexible copyright exceptions.  
 
Question 36  
36. What is the status of a public consultation and the possible adopt ion of a fair use provision?  
 
RESPONSE: As part of the response to the 2016 report of the Productivity Commission Inquiry 
into Australia’s Intellectual Property Arrangements, the Australian Government published a 
consultation paper on 19 March 2018 invitin g stakeholder views on modernising copyright. This 
was followed by a series of meetings and roundtable discussions with copyright stakeholder 
groups. The consultation paper, including submissions and roundtable summaries, is available 
at: www.communications.gov.au/have -your-say/copyright -modernisation -consu ltation . 
 
The Government is still considering the stakeholder input it received on modernising copyright, 
including on an appropriate exceptions and orphan works regime for Australia.  
 
Page 93, paragraph 3.208:  The Secretariat’s report notes that in 2018, Australia undertook public 
consultations on options for modernizing the copyright law, and the Australian government is 
continuing to consider copyright reform measures.  
 
Questions 37 -38 
37. What areas of copyright law are being considered for reform measures?  WT/TPR/M/396/Add.1  
 
- 240 - 
 
  RESPONSE: In 2018 the Australian Government published a consultation paper on modernising 
copyright, and conducted a series of meetings and roundtable discussions with copyright 
stakeholder groups. The areas of copyright law considered were the f lexibility of copyright 
exceptions, restrictions on contracting out of exceptions, and access to ‘orphan works’ where 
the author cannot be found.  
 
38. What is the timeline for additional copyright reform measures?  
 
RESPONSE: The Government is still considering  the stakeholder input it received on copyright 
reform measures.  
 
3.3.7.8 Border measures  
Page 95, paragraph 3.218:  According to the Secretariat’s report, the Australian Border Force 
(ABF) administers border enforcement measures for copyrights.  It may seize and hold imported 
goods that infringe, or appear to infringe, copyrights upon acceptance of a Notice of Objectio n lodged 
by the IPR owner.  
 
Question 39  
39. Do ABF officials also have ex officio authority to seize infringing goods without a Notice of 
Objection from the right holder?  
 
RESPONSE: A valid Notice of Objection must be registered with the Australian Border Forc e 
(ABF) in order for private copyrights to be enforced against suspected infringing goods at the 
border. However, ABF officers can exercise ex officio powers for any suspected infringements 
of Australia's Customs law.  
 
4 TRADE POLICIES BY SECTOR  
4.1 Agricu lture and Fisheries  
4.1.1 Agriculture  
4.1.1.1 Main features  
4.1.1.2 Trade measures  
4.1.1.2.2 Exports  
Page 100, paragraph 4.12:   The Secretariat notes that Ricegrowers Limited Trading has the sole 
right to export rice from Australia.  
 
Question 40  
40. Can Australia clarify why its rice export data omits information on the destination markets?  
 
RESPONSE: As Australia's national statistical agency, the Australian Bureau of Statistics (ABS) 
has a responsibility to ensure that it provides a quality statist ical service while also respecting 
the rights of those individuals or businesses who provide information from which the statistics 
are derived.  
 
The ABS has a legal obligation to ensure that confidential data are not released. The Census 
and Statistics Act  1905 sets out the rules governing the collection and dissemination of statistics 
undertaken by the ABS. The Act provides strong protection for the confidentiality of information 
supplied to the ABS.  
 
The ABS recogni zes that detailed commodity statistics f or exported and imported goods play an 
important role in the analysis of Australia's trade with the rest of the world. However, this need 
for detailed information has to be balanced with an individual's or organisation's entitlement to 
data confidentiality . Where a confidentiality restriction is required, the ABS determines the 
lowest form of restriction which satisfies their legal entitlement, while maximising the utility of 
statistical information.  
 
More information on ABS confidentiality is available at : https://www.abs.gov.au/ausstats/ 
abs@.nsf/7d12b0f6763c78caca257061001cc588/21070c4ff6ac19cbca2584230016a052!Open
Document  
 
 
 
 WT/TPR/M/396/Add.1  
 
- 241 - 
 
  4.2 Mining and Energy  
4.2.2 Energy  
Page 112, paragraph 4.60:   The Secretariat notes that energy prices have remained high against 
low levels of competition in gas and other markets.    
 
Question 41  
41. Has Australia examined the role that biofuels could play in reducing energy prices?  
 
RESPONSE: The Australian Government announced the development of a bioenergy roadmap 
to identify the role the bioenergy sector can play in Australia’s energy transition and in helping 
Australia meet its emiss ions reduction obligations. The roadmap will examine bioenergy 
opportunities for heat, steam and power, and opportunities to decarbonise the gas network.  
 
4.4 Services  
4.4.2 Communications  
4.4.2.1 Telecommunications  
4.4.2.2 Television broadcasting and film production  
Page 128, paragraph 4.137:   The Secretariat notes that Australian content quotas apply to free -
to-air broadcasters and pay television.  In a recent proceeding reviewing audiovisual policies, some 
stakeholders have advocated  for extending quotas, or local -content expenditure requirements, to 
online and subscription video on demand services.  
 
Question 42  
42. What is the status of such proposals?  Has the government of Australia taken a position on such 
proposals?  
 
RESPONSE: In its response to the Australian Competition and Consumer Commission’s (ACCC) 
Digital Platforms Inquiry Final Report the Australian Government supported the ACCC’s 
recommendation 6 that a process to implement a harmonised media regulatory framework be 
commenced . 
 
In particular, in the response (Regulating in the digital age: Government Response and 
Implementation Roadmap for the Digital Platforms Inquiry), the Australian Government stated 
that, in this regard, its immediate focus would be on:  
• developing a unifor m classification framework across all media platforms;  
• the extent of Australian content obligations on free -to-air television broadcasters 
(including drama and children’s content), and whether there should be Australian 
content obligations on subscription video -on-demand services; and  
• other aspects of the policy framework to support Australian film and television 
content.  
The Australian Government also announced that an options paper co -authored by Screen 
Australia and the Australian Communications and Medi a Authority (ACMA) will be released in 
early 2020 that will look at how to best support Australian stories in a modern, multi -platform 
environment.  
 
Questions based on the Government Report (WT/TPR/G/396)  
3 TRADE AND INVESTMENT POLICY  
3.8 Thematic Trade Policy Priorities  
3.8.4 Intellectual Property  
Page 19, paragraph 3.89:  The Government’s report notes that a number of intellectual property 
related legislative developments have occurred since Australia’s last TPR, including several relating 
to copyrights.  According to the Report, the Intellectual Property Laws Amendment Ac t 2018 clarified 
parallel importation regarding copyrights.  In contrast, the Secretariat Report (WT/TPR/S/396) does 
not mention an amendment. It states that the Copyright Act permits parallel importation; but that 
there have been a number of government re views recommending repeal of parallel importation for 
books; and the Australian government has consulted with the book industry (Page 94, Paragraph 
3.312). According to the Secretariat Report, “These developments are being monitored by the 
Government.”  
 
Questions 43 -44 
43. Please clarify the parallel importation amendment regarding copyright.  
 WT/TPR/M/396/Add.1  
 
- 242 - 
 
  RESPONSE: The Intellectual  Property Laws Amendment Act 2018  repeals a provision in the 
Copyright Act  and amends the Trade Marks Act  to clarify the circumstances in which the parallel 
importation of trade marked goods does not infringe a registered trade mark.  
 
44. Is it different from the issue discussed in the Secretariat Report?  
 
RESPONSE: Parallel importation on books is a separate issue. In light of book industry reforms 
the Government is considering whether changes in relevant regulation are warranted at this 
time. 
  WT/TPR/M/396/Add.1  
 
- 243 - 
 
  United States  follow up questions  
Questions based on the Secretariat Report (WT/TPR/S/396)  
 
3 TRADE POLICIES AND PRACTICES BY  MEASURE  
3.1 Measures Directly Affecting  Imports  
3.1.1  Customs procedures, valuation, and  requirements  
3.1.1.1  Documentation requirements and trade facilitation  measures  
Page 39, paragraph 3.9: With the ending of the Offshore Pre -Shipment Inspection Program (OPI),  
1.1.  U.S. industry has noted concerns with the ability of Australia to clear for import U.S. agricultural 
products,  including  highly  perishable  products.  This includes  products  under  OPI, as well as products 
currently not covered. U.S. industry has noted that routine processing delays, spoiled produce, and 
business losses are not uncommon. Additionally, U.S. industry notes that with the elimination of OPI,  
over 9,700  additional  work hours  for on-arrival  inspections  will be necessary.  The United  States has  
heard  from industry  that delays  for on-arrival  inspections  have increased  from two days to over seven  
days.  In addition  to clearance  delays,  there  have been reported  delays  for pest identification, which 
has resulted in industry choosing to fumigate rather than await an identification. The Secretariat 
notes an annual Time Release Study (TRS) analy sing data on border clearance  times.  
 
(Following Question and Response provided earlier in Australia’s response to written 
questions)  
 
U.S. QUESTION #3:   Can Australia p rovide a copy of the most recent  TRS? 
 
RESPONSE: Yes. Time Release Studies are available at: 
https://www.homeaffairs.gov.au/research -and-statistics/statistics/operational -
reports . 
 
The Time Release Study 2016 report is the latest currently published report. Australian 
Border Force expects to publish the next report, covering 2017/18 in coming months.  
 
Answers to follow up (late) Questions 1 -3 
The United States thanks Australia for providing the location of past studies. As Australi a noted, the 
most recent study, however, is from 2016.  
 
1. When will Australia provide more up -to-date cargo clearance time data?  
 
RESPONSE:  The Time Release Study 2016 report is the latest currently published report. 
Australian Border Force expects to publi sh the next report, covering 2017/18 in coming months.  
 
2. The United States notes that the OPI was put in place more than 15 years ago, yet the oldest 
available time release study is from 2010. Does Australia have the ability to compare clearance 
times of co mmodities imported into Australia while under an offshore inspection process and 
conversely imported without being under one?  
 
RESPONSE:  No, Australia does not have the ability to compare clearance times of commodities 
imported under OPI and commodities n ot imported under OPI . 
 
3. Given the perishable nature of the products under OPI, please explain if IPO data is available 
specifically for agricultural products and/or clearance times of perishable goods.  
 
RESPONSE:  Australia publishes clearance times via th e Time Release Study, which is not 
specific to agricultural and perishable goods but does provide an average time for imported 
cargo . 
 
(Following Question and Response provided earlier in Australia’s response to written 
questions)  
 
U.S. QUESTION #5:  If only customs procedures, has Australia examined clearance delays due to 
the elimination of OPI for the United States and other countries that had such a program? If so, can 
the results be  provided?  
 WT/TPR/M/396/Add.1  
 
- 244 - 
 
  RESPONSE:  The Offshore  Pre-clearance  Inspection  Program  (OPI)  closes  on 30 April 2020.  The 
Department  of Agriculture,  Water  and the Environment  will monitor  clearance  times  in the Time 
Release Study to monitor impacts (if any) of the closure of  OPI. 
 
Answer to follow up (late) Question 4  
As noted prior, the most recent TRS was issued in 2016. If past precedent is followed, Australia 
would wait four years to release data on time release after the OPI concludes.  
 
4. Is there an ability to provide more timely clearance data for the co mmodities that were covered 
under OPI? This is of particular concern given the perishable nature of the products under OPI.  
 
RESPONSE: Australia publishes clearance times via the Time Release Study, which is not 
specific to perishable goods but does provid e an average time for imported cargo.  
 
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
Page 67, paragraph 3.86: The Secretariat’s report discusses tariff and budgetary assistance to 
industry.  
 
(Following Question and Response provided earlier in Australia’s response to written 
questions)  
 
U.S. QUESTION #8:   Does Australia apply tariffs and/or fees to imported and domestic ethanol, 
and if so, when are they applied?  
 
RESPONSE:  Domestically  produced  ethanol  is subject  to excise  duty which  is applied  when  the fuel 
is delivered into the domestic market. Imported ethanol is subject to excise equivalent customs duty 
which is applied when the fuel is landed for domestic consumption.  
 
Answer to follow up (late) Question 5  
5. Does Australia provide excise duty exemptions for domestically produced ethanol? If so, by 
what policy measure?  
 
RESPONSE: No. 
 
  WT/TPR/M/396/Add.1  
 
- 245 - 
 
  Philippines  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
Para 2.8 (Page 26)  
Trade policy in Australia is founded on a broad understanding that international t rade and investment 
is critical to the economy, providing jobs and prosperity. Emphasis has been given to trade 
agreements that can improve market access across all areas of trade, goods, services and 
investment, and help to maintain and stimulate the comp etitiveness of Australian firms.  The 
Government also places importance on an open international economy to guard against 
protectionism, and promotes international rules that counter unfair trade actions and help resolve 
disputes. Furthermore, the new Econ omic and Commercial Diplomacy Agenda, launched in 
November 2018, promotes an open global economy, supporting businesses seeking commercial 
opportunities, advancing Australia's political and economic interests, and strengthening their 
international competit iveness. The Agenda focuses on five key pillars of activity: promoting 
investment; addressing non -tariff barriers; supporting and facilitating business; advocating for the 
global rules -based trade system; and increasing science, technology and innovation l inks. The 
2018/19 Budget provides AUD 15 million over four years to increase support for Australian business 
overseas, including strengthening the economic and commercial diplomacy agenda.  
 
Question 1  
What are the specific programs implemented under the ne w Economic and Commercial Diplomacy 
Agenda which helped the government of Australia in increasing its FDI as well as trade between 
Australia and its partners?  
 
RESPONSE:  Under the Business Engagement/Advoca cy 2018/19 Budget measure the 
Australian Government is undertaking a range of activities, including:  
• Roll out of Business Literacy and Engagement training for Commonwealth and State 
Government officials.  
• Publishing Market Insights documents to help A ustralian business understand and navigate 
opportunities in international markets.  
• A range of small market specific projects/events to support the pillars of the Economic and 
Commercial Diplomacy agenda both internationally and through the State Office Network.  
• A business speaker series where senior corporate leaders share business insights with 
officials across government.  
• A community outreach program to build understanding of the benefits of trade and 
investment, and the value of an open economy f or Australia, including physical and online 
advocacy products to ensure effective communication with Australian businesses and 
consumers.  
• Efforts to address non -tariff barriers (NTBs) of concern to exporters, including by launching 
a whole -of-government action plan in 2018 to remove unjustified trade restrictions hampering 
exports.  
• A Gateway website (https://tradebarriers.dfat.gov.au) to provide an additional avenue for 
Australian exporters to report trade concerns to government.  
• An initiative working  in close collaboration with industry across the services sector to identify 
and address barriers to services exports and competitiveness. The services industry presented 
government with Industry's Recommendations - An Action Plan to Boost Australia's Serv ices 
Exports in August 2019 and the Government released the Government Response to Industry's 
Action Plan to Boost Australian Services Exports in November 2019.  
• A program of high -level dialogues with business on foreign policy and security issues to 
advance opportunities for business and help business respond to a contested and complex 
world.   
 
Para 2.28 (Page 31)  
The Government has continued its commitment to a deregulation agenda, removing barriers to 
competition, innovation and growth, reducing red  tape further while also seeking improved 
regulatory performance. Commonwealth government initiatives continue to promote regulatory 
quality through, for example, the Regulatory Impact Analysis (RIA), required for every policy 
proposal designed to introduc e or abolish a regulation; the Commonwealth Regulatory Burden 
Measure, used by policy -makers to measure compliance costs of regulatory proposals on businesses, 
individuals and community organizations; and the Regulator Performance Framework, designed to WT/TPR/M/396/Add.1  
 
- 246 - 
 
  assist Commonwealth regulators in minimizing the impact on those being regulated while still 
achieving their set goals. The Government reports regularly on the implementation of regulatory 
reforms and the administration of the RIA.  
 
Question 2  
How does the g overnment of Australia implement the Regulatory Impact Analysis (RIA), specifically 
on handling different issues/challenges identified with RIA such as ensuring compliance and 
adequate scope of coverage, data collection strategies and assuring the required  level of political 
support?  
 
RESPONSE:  Australia’s RIA system covers every major decision of government, including those 
made by the Prime Minister, the Cabinet and its committees, and those delegated to Ministers 
or officials. Where a decision is anticip ated to have more than a minor impact (be it positive or 
negative) on individuals, businesses or community organisations, a Regulation Impact 
Statement (RIS) is required. This RIS, which is assessed for quality by the Office of Best Practice 
Regulation (OB PR), must be made available to the decision maker to inform their decision.  
 
The OBPR is responsible for assessing the RIS’s compliance with the Australian Government’s 
RIA requirements. This includes an assessment of the quality of the analysis, which could 
include whether the RIS has an adequate scope of coverage or has used appr opriate data 
collection strategies.  
 
Australia’s RIA framework has been refined and strengthened by successive governments over 
a 30-year period, indicating broad support within government for RIA.  
 
While Australia is already well regarded in the OECD’s a ssessment of RIA settings and 
administration, the Government recently agreed to further strengthen its RIA framework to 
reinforce expectations of high quality analysis underpinning major decisions of Government.  
 
The strategic placement of Australia’s RIA function, in the Department of the Prime Minister and 
Cabinet, helps to ensure fulsome coverage and compliance with this Government requirement.  
 
Para 3.1.3.2 (Page 43)  
Table 3.3 Summary analysis of MFN tariff, 2019  
 
Question 3  
On the line item on “Fruit, vegetables and plants”, is there a distinction between the trade regime 
on the importation of fruits and tropical fruits?  
 
RESPONSE: No. 
 
Para 3.50 (Page 56)  
Although the principal features of Australia's anti -dumping and countervailing system remain 
unchanged since 2015, certain legislative changes took place during the period under review. The 
Customs Amendment (Anti -dumping Measures) Act (No. 1), 2015, passed by Parliament on 13 May 
2015, introduced the possibility to su bmit dumping and countervailing applications by email. Other 
changes included stricter enforcement of deadlines for submissions to conform with the standard 
investigation/inquiry period of 155 days, "cumulative assessment" of injury when two or more 
countr ies are subject to an investigation, confirmation that third -country sales do not need to be 
considered before constructing normal values, and amendments relevant to accelerated reviews. A 
provision to counter circumvention of Australian anti -dumping or co untervailing measures was 
inserted in the Customs Regulations, 1926, through the Customs Amendment (Anti -Dumping 
Improvements) Regulation, 2015. Two ministerial directions were also issued to the Anti -Dumping 
Commission in 2015, covering extensions of time  for interested parties to respond and non -
cooperation, and the issuance of preliminary affirmative determinations 60 days after the initiation 
of an investigation (or a status report if no preliminary affirmative determination is made).  
 
Questions 4 -5 
In accelerated reviews, does Australia require the company to have already exported the product 
subject of the review to Australia before it can apply for said review? If so, what is the required 
minimum volume of exports?  WT/TPR/M/396/Add.1  
 
- 247 - 
 
  RESPONSE:  Australia does not require  an applicant for an accelerated review to have already 
exported some minimum quantity of the goods to Australia. This aligns with the purpose of an 
accelerated review, consistent with Article 9.5 of the Anti -Dumping Agreement, to enable those 
who did not export during the investigation period and who are not related to the exporters or 
foreign producers subject to measures to access an individual dumping margin. Further 
information about accelerated reviews is available in Chapter 34 of the Dumping and Sub sidy 
Manual available at https://www.industry.gov.au/sites/default/files/2019 -05/adc_dumping_ 
and_subsidy_manual.pdf . 
 
What specific measures/acti ons are provided in Australia’s Regulations to counter circumvention 
of anti -dumping measures? Please elaborate.  
 
RESPONSE: 5. Australia’s anti circumvention framework allows measures to be amended to 
address the following types circumvention behaviour:  
 
- Assembly of parts in Australia - parts of goods subject to measures are imported to Australia 
and assembled domestically;  
- Assembly of parts in a third country - parts of goods subject to measures are exported to a 
third country for assembly prior to exp ort to Australia;  
- Export of goods through one or more third countries;  
- Arrangements between exporters - goods are exported under an arrangement between 
exporters whereby the exported goods improperly attract the more favourable rate of measures 
applic able to an exporter rather than the rate applicable to the actual exporter of the goods;  
- Avoidance of the intended effect of duty - the price of the goods does not increase 
commensurate with the anti -dumping duties payable; and  
- Slight modification of goods - the goods have been slightly modified in order to circumvent 
duties that apply to the original (or unmodified) goods.  
 
Para 3.53 (Page 57)  
Australia is a relatively frequent user of anti -dumping procedures by international comparison. In 
the period 1995 -2018, it initiated 344 anti -dumping investigations and imposed a total of 156 anti -
dumping measures, making it the 6th most active WTO Member in the launch of investigations.  
Although the number of investigatio ns has been lower in recent years compared with the peak in 
the late 1990s, a higher proportion of cases currently conclude with the finding of dumping and 
material injury (Chart 3.2).  
 
Question 6  
Being a relatively frequent user of anti -dumping procedures , can Australia share best practices on 
how it handles voluminous transactions in the computation of normal values, export prices, and 
appropriate dumping margins/duties? Has Australia developed a computation program in relation to 
this? 
 
RESPONSE:  Austral ia’s Anti -Dumping Commission uses a standardised approach to the 
calculation of the variable factors that feed into dumping margins. The Anti -Dumping 
Commission requires all calculations to be done in line with this structure, that is underpinned 
by a seri es of standard template documents, comprising of a set of model calculations, a 
checklist for calculations to ensure conformity with the standards and training and policy 
materials outlining the best practice methods of undertaking calculations. The Anti -Dumping 
Commission conducts all calculations in a spreadsheet application (Microsoft Excel). The 
ascertained export price and ascertained normal value are calculated in different workbooks, 
which means the export and domestic sales information are separated . This allows smaller file 
sizes and greater file stability.  
 
The Anti -Dumping Commission has not developed a standalone computation program for the 
calculation of variable factors or dumping margins.  
 
Para 3.70 (Page 63)  
The Landing Pads programme was int roduced to provide a cost -effective option for market -ready 
start-ups and scale -ups to land and expand in major global innovation hubs. In the five landing pads 
established to date (San Francisco, Tel Aviv, Shanghai, Berlin and Singapore), enterprises are 
offered 90 -day residency in a co -working space to facilitate in -market business development, 
introduction to investors and mentor networks, and strategic partnership opportunities; business WT/TPR/M/396/Add.1  
 
- 248 - 
 
  services and in -market learning from local and international exper ts; access to a curated community 
that supports Australian entrepreneurs; and post -residency assistance to promote the continued 
growth of the enterprise.  As at 5 September 2019, 254 companies had accessed Landing Pads (173 
in the up -to-90-day programme a nd 81 in bootcamps). Boot -camps are sector -focused delegations 
delivered in collaboration with Australian ecosystem partners, which bring start -ups to Landing Pads 
for shorter intensive programmes that combine educational and market -testing elements.  
 
Ques tion 7  
Under the Landing Pads Programme, how does the government of Australia implement the program 
and is the 90 -day residency in a co -working space fully subsidized by the government? Should the 
enterprise successfully develop a product, service or busin ess out of the programme, are the 
beneficiaries required to establish the new business in Australia or are they allowed to establish in 
the landing pads or other areas?  
 
RESPONSE: The Australian Government has established Landing Pads in existing co -workin g 
spaces and innovation hubs in Berlin, San Francisco, Shanghai, Singapore and Tel Aviv. Within 
these facilities, the Australian Government reserves up to 10 desks for selected Australian 
companies to undertake the up to 90 -day residency. The cost of the d esk is fully covered by 
the Australian Government for the duration the company is undertaking the program.  
 
The Landing Pads program’s primary objective is to facilitate access to business growth 
opportunities in overseas markets for Australian companies. As such, companies that are 
selected for the program must already be established in Australia and have existing products 
to meet eligibility for the program. Once in the program or upon completion, it is entirely within 
the Australian company’s discretion as to whether it establishes additional operations in 
overseas markets.  
 
Para 3.102 (Page 70)  
The main development in the area of sanitary and phytosanitary measures in Australia in the period 
under review was the entry into force of the Biosecu rity Act, 2015, replacing the Quarantine Act, 
1908, on 16 June 2016.  The new biosecurity legislation is co -administered by the ministers 
responsible for agriculture and health, and includes a variety of regulations, determinations and legal 
instruments th at, for example, lay down specific conditions for the importation and exportation of 
various commodities.  According to the authorities, the Act provides a modern regulatory framework, 
reduces duplication, and enables more efficient and effective risk asse ssment to prevent pests and 
diseases from crossing Australia's border. The Act is flexible by design to respond to changes in 
technology, biosecurity challenges, and the need for more adaptability to increasing passenger traffic 
and trade. As at November 2 019, 117 legal instruments related to biosecurity had been issued, in 
addition to the Act itself and the two basic regulations (the Biosecurity Regulations, 2016 and the 
Biosecurity (Human Health) Regulations, 2016). Most of these legal instruments were 
determinations of first point of entry, i.e. goods that may, or may not, enter a specific location in 
Australia.  
 
Question 8  
Has there been any significant change in the regulations, requirements and procedures issued based 
on the recent amendment of the Bio security Act of 2015 (effective 01 March 2019) which is relevant 
for exporters of pineapples (fresh, prepared/preserved) and bananas to Australia which includes 
Philippines?  
 
RESPONSE: No. 
 
Para 3.104 (Page 71)  
Australia's states and territories maintain their own legislation, and take measures to minimize the 
spread of pests and diseases that threaten livestock or crop production. The requirements may affect 
interstate trade as well as the intrastate/territory m ovement of animals and animal products, plants 
and plant products, and materials of quarantine concern. For example, based on its Plant Biosecurity 
Act, 2010, Victoria established zones to prevent the spread or entry of certain pests and diseases, 
affectin g the movement of fruit (Queensland fruit fly); grapes, grapevine material, agricultural 
equipment and soil (Grape Phylloxera); potatoes, potato plant material, agricultural equipment and 
soil (Potato cyst nematode); and chestnut blight host materials. Gov erned by its Livestock Disease 
Control Act, 1994, Victoria applies entry requirements to cattle, sheep, goats, pigs, deer, poultry 
and bees from other states and territories in Australia.  Diseased livestock may, with few exceptions, WT/TPR/M/396/Add.1  
 
- 249 - 
 
  only enter Victoria if  a licence has been issued by the Chief Veterinary Officer, and all transportation 
of livestock must meet Australian animal welfare standards. Farms in Victoria running certain 
livestock species are required to have a Property Identification Code.  Importa tion orders, i.e. 
restrictions on entry from other parts of Australia to prevent the spread of disease or pest, have 
been issued in relation to cucumber green mottle mosaic virus, pyriform scale, and tomato potato 
psyllid.  
 
Para 3.106 (Page 71)  
The Biosecu rity Act, 2015 and the Biosecurity Regulation, 2016 mandate the Department of 
Agriculture to review existing trade and to undertake risk analysis in response to requests to import 
goods that have never been imported into Australia, or have not previously b een imported from a 
particular country or region. The risk analysis may be conducted through a regulated process 
provided for in the legislation (Biosecurity Import Risk Analysis – BIRA) or through a non -regulated 
procedure (e.g. a scientific review of exi sting policy and import conditions, a pest -specific 
assessment, a weed risk assessment, or a biological control agent assessment). If the identified 
biosecurity risks exceed the appropriate level of protection (ALOP) for Australia, goods may not be 
importe d unless the proposed risk management measures reduce the risks to an acceptable level. 
Australia's risk assessment method has been used since 2001, and includes a risk estimation matrix 
that follows international principles consistent with World Organizat ion for Animal Health (OIE) and 
International Plant Protection Convention risk management standards. Australia's ALOP is only 
considered achieved when the estimated risk is at or below "very low".  
 
Para 3.108 (page 72)  
When importing into Australia, import ers of plant, animal, mineral and biological products are 
responsible for compliance with conditions set by the Department of Agriculture. They may use the 
Biosecurity Import Conditions (BICON) system to determine whether: a commodity is permitted to 
be im ported; importation is subject to specific conditions; supporting documentation is required; the 
commodity must undergo treatment; or an import permit is needed. Most import permits are issued 
within 20 working days of receipt, provided the application has  been completed correctly and the 
required fees have been paid in full. Australia's biosecurity system is based on the Biosecurity Act, 
2015, and information on biosecurity conditions may also be obtained through BICON. Fresh beef 
can now be imported from Japan (in addition to New Zealand and Vanuatu), subject to import permit 
conditions.  
 
Questions 9 -10 
Kindly identify the circumstances that would warrant a regulated process and a non -regulated 
procedure in undertaking risk analysis.  
 
RESPONSE:  The circums tances for a regulated process are set out in the Biosecurity Act 2015 
section 167 & 168. The BIRA Guidelines ( https://www.agriculture.gov.au/biosecurity/risk -
analysis/guid elines ) provide further information. A risk analysis which does not meet the criteria 
for a BIRA is undertaken as a non -regulated risk analysis. Further information on conducting a 
biosecurity risk analy sis can be found here:  
 
https://www.agriculture.gov.au/biosecurity/risk -analysis/conducting . 
 
Please provide examples or cases where a regulated process and non -regulated risk procedure 
were applied  and their results.   
 
RESPONSE:  No BIRAs (regulated risk analysis) have commenced or been completed for any 
country since the commencement of the Biosecurity Act 2015. This is because the circumstances 
in which a BIRA can commence have not yet occurred. N o relevant requests have been made 
to the Director of Biosecurity nor has the Director concluded that a BIRA is necessary. Australia 
has however completed numerous non -regulated risk analysis for a range of trading partners. 
Australia maintains a range of bilateral engagement forums with its trading partners and 
routinely advises of the status and progress of individual import requests through these 
established engagement mechanisms. Risk analyses for animals and animal products are 
available on the departm ent's website:  
 
https://www.agriculture.gov.au/biosecurity/risk -analysis/animal . 
 WT/TPR/M/396/Add.1  
 
- 250 - 
 
  A list of Australia’s current plant risk analyses and finalised plant risk assessments is avai lable 
at: 
 
https://www.agriculture.gov.au/biosecurity/risk -analysis/plant. Information on weed risk 
assessments is available at : https://www.agriculture.gov.au/biosecurity/risk -analysis/weeds . 
 
Para 3.143 (Page 84)  
Public procurement takes place at both the federal (Commonwealth) level and at the state/terr itory 
level. At the Commonwealth level, the Public Governance, Performance and Accountability Act, 2013 
(PGPA Act) and the Public Governance, Performance and Accountability Rule, 2014 (PGPA Rule) 
govern procurement of both corporate and non -corporate Commo nwealth entities. Additionally, the 
requirements for procurement are detailed in the Commonwealth Procurement Rules (CPRs), which 
are issued by the Minister of Finance under the PGPA Act. The CPRs were amended in 2019, and 
apply to any new procurement unde rtaken since 20 April 2019. The basic tenets of the CPRs remain 
unchanged, namely whether a procurement will deliver the best value for money (the CPR states 
this to be "the core rule"); equal treatment of all potential suppliers so as to encourage competi tion, 
efficiency, effectiveness and ethical accountability and transparency in the procurement process; 
and establishing systems to identify, analyse, allocate and treat procurement risk. Furthermore, 
officials should ensure that the procurement method is conducted by open tender or, when 
circumstances justify it, limited tender. The amended rules make changes to accommodate the 
Government Procurement (Judicial Review) Act, 2018, international law obligations, and the 
introduction of targets for procuring f rom SMEs. Additionally, with a view to encouraging good tax 
behaviour, the Government recently agreed to a new Procurement Connected Policy. Since 1 July 
2019, businesses tendering for government contracts above AUD 4 million are required to 
demonstrate th at they have a satisfactory tax record. This is to ensure that suppliers are not able 
to make more competitive bids at the procurement point because they have saved costs by not 
complying with their key tax obligations.  
 
Questions 11 -13 
How is “best value for money” measured in Australian public procurement and how is it factored in 
the award of contract?  
 
RESPONSE:  Achieving value for money is the core rule of the Commonwealth Procurement 
Rules. Commonwealth officials responsible for a procurement must be satisfied, after 
reasonable enquires, that the procurement achieves a value for money outcome.  
 
The Commonwealth  Procurement Rules state that price is not the sole factor when assessing 
value for money. Assessing value for money requires consideration of relevant financial and 
non-financial costs and benefits of each submission.  
 
This includes but is not limited to :  
• the quality of the goods and services;  
• fitness for purpose of the proposal;  
• the potential supplier’s relevant experience and performance history;  
• the flexibility of the proposal (including innovation and adaptability over the lifecycle of the 
procurement);  
• the environmental sustainability of the proposed goods and services (such as energy 
efficiency, environmental impact and use of recycled products); and  
• whole -of-life costs.  
 
Whole -of-life costs could include:  
• the initial purchase price of the goods and services;  
• maintenance and operating costs;  
• transition out costs;  
• licensing costs (when applicable);  
• the cost of additional features procured after the initial procurement;  
• consumable costs; and  
• disposal costs.  
 
What are the common procurement risks in Australia? How are these addressed during 
procurement planning; and are there rules in place that would mandate the mitigation of risks 
at planning stage?  WT/TPR/M/396/Add.1  
 
- 251 - 
 
  RESPONSE:  Commonwealth entities undertake a wide range of different procu rements and the 
associated risks can vary greatly. The Commonwealth Procurement Rules require that procuring 
entities must establish processes to identify, analyse, allocate and treat risk when conducting 
a procurement. The effort directed to risk assessme nt and management should be 
commensurate with the scale, scope and risk of the procurement.  
 
The Commonwealth Procurement Rules specify that procuring entities should consider risks and 
their potential impact when making decisions relating to value for mon ey assessments, 
approvals of proposals to spend relevant money and the terms of the contract.  
 
Procuring entities are expected to consider and manage their procurement security risk in 
accordance with the Australian Government’s Protective Security Policy Framework.  
 
As a general principle, risks should be borne by the party best placed to manage them; that is, 
relevant entities should generally not accept risk that another party is better placed to manage. 
Similarly, when a relevant entity is best placed t o manage a particular risk, it should not seek 
to inappropriately transfer that risk to the supplier.  
 
Are the targets for procuring from SMEs in terms of volume, value or both? How is the target 
implemented and monitored?  
 
RESPONSE: The Australian Governm ent is committed to sourcing at least 10 per cent of 
procurement by value from SMEs. In addition, the Government has a target of procuring 35 per 
cent of contracts by value, with a value of up to $20 million, from SMEs.  
 
To support the achievement of the t argets, the Commonwealth Procurement Rules provide that 
officials should apply procurement practices that do not unfairly discriminate against SMEs and 
provide appropriate opportunities for SMEs to compete.  
 
Statistics for SME participation are reported r etrospectively based on data collected at the end 
of the relevant financial year. Estimated SME participation is reported annually on the Statistics 
on Australian Government Procurement Contracts website:  
 
https://www.finance.gov.au/government/procurement/statistics -australian -government -
procurement -contracts -. 
 
Estimates on SME participati on are provided by the Australian Bureau of Statistics (ABS) based 
on AusTender contract data and the ABS Business Register.  
 
Para 4.8 (Page 85)  
The IP Summit, an event held by IP Australia in 2018 and 2019, provided Australian businesses (and 
in particula r, SMEs) with information on how to access grants, funding and support, commercialize 
their inventions, expand into key overseas regions, and protect their IP rights.  In April 2017, the 
Export Finance and Insurance Corporation (Efic), in collaboration wit h IP Australia, released a white 
paper on "protecting IP overseas", which helps SMEs understand the IP challenges they are likely to 
face.  IP Australia also provides jurisdiction -specific information regarding the protection of IP in 
various markets, via its website.  Between 1 December 2018 and 30 June 2019, IP Australia offered 
free trial Patent Landscape Reports with every international search, to assist Australian businesses 
to determine whether to seek patent protection overseas.  In 2016, Australia a ppointed its first IP 
Counsellor to China. The Counsellor's role involves supporting Australian businesses to navigate 
Chinese IP systems and engaging with the Chinese Government on IP policy.  
 
Question 14  
The Philippines would appreciate if Australia could briefly share on how SMEs could access grants, 
funding and support, commercialize their inventions, expand into key overseas regions, and protect 
their IP rights.  
 
RESPONSE:  IP Australia is committed to ensuring our intellectual property (I P) system meets 
the needs of Australian small and medium enterprises (SMEs). We have a range of resources 
on our dedicated SME portal ( https://www.ipaustralia.gov.au/sme -portal ) that can help SMEs 
navigate the IP system and to support them in successfully protecting their IP.  
 WT/TPR/M/396/Add.1  
 
- 252 - 
 
  The SME portal provides access to a range of information including:  
• Access to webinars covering IP 101, understanding trade marks, patents and designs.  
• Information t o help SMEs better understand commercialisation.  
• An Attorney Toolkit to help SMEs with everything they need to know about engaging an 
attorney.  
• An IP for Digital Business guide to help SMEs manage their IP in the digital age.  
• Information on IP and ex porting.  
• A link to the Australian Government’s Entrepreneurs Programme, which provides advice, 
funding and incentives to help SMEs innovate, compete and grow.  
 
Para 4.87 (Page 118)  
The main laws governing the banking sector are the Banking Act, 1959 and the Banking Regulation 
2016, which repealed the Banking Regulations, 1966. The new Regulation consolidates the Banking 
Regulations, 1966 and the Banking (Unclaimed Moneys) Regulations 1993 into a single Regulation; 
redundant provisions such as those relati ng to dates that have passed, were repealed; it repealed 
spent or redundant associated regulations, including those due to sunset in the next two years; and 
changes to language were incorporated, so as to make it more current and consistent throughout 
the Regulation.  
 
Questions 15 -16 
What is the legal regime on commercial presence in Australia for representative offices for purposes 
of cash remittances?  
 
RESPONSE:  Section 763D of the Corporations Act 2001 (Cth) (Act) defines the circumstances 
when a person “makes non -cash payments”.  
 
“Non-cash payments” are “financial products” for the purposes of Division 3 of Part 7.1 of the 
Act which deals with financial services and markets.  
 
If a person provides a financial service in Australia in relation to a financial product, they are 
required to hold an Australian financial services (AFS) licence which is authorised for the 
provision of those financial services and products (unless an exemption applies) (refer to section 
911A of the Act). AFS licensees with the authorisation to provide financial product advice and 
dealing services on non -cash payments, can also authorise representatives to provide these 
services on their behalf.  
 
The definition of when a person “makes non -cash payments” in section 763D of the  Act 
specifically does not include the making of payments, or the causing of payments to be made 
by the physical delivery of Australian or foreign currency in the form of note and/or coins.  
 
Sub-section 763D(2) of the Act lists the circumstances which do not fall within the definition of 
“making non -cash payments”.  
 
We have attached a link to section 763D of the Act for your reference:  
 
http:// classic.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s763d.html .  
 
The relevant Australian Securities and Investments Commission (ASIC) Regulatory Guide (RG) 
which covers the AFS licensing requirements relevant to providers of non -cash payments is RG 
185: “Non -cash payment facilities” (a link to which is attached below):  
 
http://classic.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s763d.html . 
 
Whether a repres entative office for the purposes of cash remitters require an AFS licence will 
depend upon the circumstances of the services provided within Australia and whether:  
 
1. Those services are captured within the definition in section 763D of when a person “make s 
non-cash-payments”; or  
2. Whether those services fall within an available exemption.  
 
We note that a number of international, foreign based remittance providers have a presence in 
Australia and hold AFS licences such as, for instance:  WT/TPR/M/396/Add.1  
 
- 253 - 
 
  1. Travelex Limite d;  
2. Google Payment Australia Pty Ltd;  
3. Paypal Australia Pty Limited; and  
4. American Express International Inc.  
 
We also note that “remittance providers” must be registered with the Australian Transaction 
Reports and Analysis Centre (AUSTRAC) pursuant  to the relevant provisions of the Anti Money 
Laundering and Counter Terrorism Financing Act 2006 (Cth) (a link to the guidance on these 
registration requirements is attached below). ASIC will request confirmation from an applicant 
that they have or will o btain AUSTRAC registration or provide evidence that AUSTRAC has 
confirmed that no registration is required.  
 
https://www.austrac.gov.au/remittance -sector-register -and-remittance -registration -actions .  
 
What is the legal regime on the cross -border issuances of securities in Australian financial markets?  
 
RESPONSE:  The Corporations Act 2001 (Act) requires a prospectus or Product Disclosure 
Statement (PDS) for an offer of securities received in Australia (unless an exemption applies 
under the Act or ASIC has given an exemption). This requirement generally applies regardless 
of the place of incorporation of the offeror, although there is a sep arate mutual recognition 
scheme for entities incorporated in New Zealand (see below).  
 
Section 708 of the Act contains a number of exemptions – including for sophisticated investors 
(determined by assets / income or the amount subscribed), institutional in vestors and small 
scale offers. Pursuant to our policy in Regulatory Guide 72, Foreign Securities: Disclosure Relief 
(RG 72) ASIC has granted legislative exemptions (1) where the securities are quoted on an 
approved foreign market (as defined in ASIC Corpo rations (Definition of Approved Foreign 
Market) Instrument 2017/669 and (2) there are comparatively few offers made in Australia:  
 
1. rights issues by foreign companies where the securities are in the same class as those already 
held by Australian investors and the securities to be offered to Australian residents are no more 
than 10% of the securities to be offered: ASIC Corporations (Foreign Rights Issues) Instrument 
2015/356.  
2. foreign scrip bids where Australian residents hold no more than 10% of the bid class 
securities: ASIC Corporations (Foreign Scrip Bids) Instrument 2015/357;  
3. certain offers to employees, contractors and di rectors under an employee incentive scheme: 
Class Order [14 -1000]; and  
4. small scale personal offers made in accordance with foreign regulatory requirements ASIC 
Corporations (Foreign Small -Scale Offers) Instrument 2015/362 – this prospectus exemption 
operates in addition to the exemption for small scale offers in s708(1) of the Act.  
 
ASIC will also grant disclosure relief where a foreign offeror has complied with a disclosure 
regime offering similar levels of investor protection to the Australian disclosu re requirements. 
For example, ASIC has granted prospectus relief for scrip schemes of arrangement conducted 
in Hong Kong, Malaysia, New Zealand, Singapore, South Africa and the United Kingdom: ASIC 
Corporations (Compromises or Arrangements) Instrument 2015 /358. This is analogous to the 
prospectus exemption in s708(17) for schemes of arrangement conducted in Australia.  
 
ASIC may also grant individual relief from the prospectus requirements where a foreign 
company is unable to comply with the terms of legisla tive relief , but ASIC considers that investor 
protection is not compromised (usually because investors will have adequate information on 
which to make a decision).  
 
Pursuant to the policy in Regulatory Guide 178 Foreign collective investment schemes, ASIC 
may grant conditional relief from registration and licensing requirements and product disclosure 
requirements if:  
 
• a foreign collective investment scheme operator wishes to operate a managed investment 
scheme in Australia or offer its securities in Aust ralia if the relevant foreign regulatory regime 
is sufficiently equivalent to the Australian regime;  
• ASIC has effective cooperation with the relevant foreign regulator; and  WT/TPR/M/396/Add.1  
 
- 254 - 
 
  • there are adequate rights and remedies available to investors who are residen t in Australia if 
the operator breaches foreign regulatory requirements.  
 
ASIC has also provided relief from some of the licensing requirements for some financial 
services including dealing and advising about overseas offers of financial products to Austr alian 
wholesale investors located in Australia: see Regulatory Guide 176 Foreign Financial Services 
Providers. ASIC has also provided relief from licensing requirements to allow foreign financial 
services to induce certain types of Australian professional investors involved in funds 
management activities to use the financial services that may be provided by overseas providers, 
such as dealing and advising about securities: see also Regulatory Guide 176 Foreign Financial 
Services Providers.  
 
Mutual recogniti on of trans -Tasman offers  
The trans -Tasman mutual recognition scheme in Chapter 8 of the Act allows Australian and New 
Zealand entities to offer certain securities in both countries using one disclosure document 
prepared under regulation in their home coun try. Entities that wish to operate under the scheme 
are able to comply with minimal entry and ongoing requirements agreed to between the two 
countries and prescribed in each country’s law: see Regulatory Guide 190 Offering financial 
products in New Zealand  and Australia under mutual recognition (RG 190).  
 
Takeovers and buy -backs  
ASIC has also approved foreign financial markets for the purposes of subsection 257B(7) (on -
market buy -backs) and for the purposes of the takeovers' exemption in item 14(b) of sect ion 
611 (downstream acquisitions): see ASIC Corporations (Approved Foreign Financial Markets – 
Buy-backs and Takeovers) Instrument 2015/1071 and Regulatory Guide 71 Downstream 
Acquisitions.  
 
The foreign markets that ASIC has approved for the purposes of subsection 257B(7) and item 
14(b) of section 611 are the same foreign markets approved for disclosure relief purposes, 
although before amendments made by these instruments they were called 'eligible financial 
markets'.  
 
Asia Region Funds Passpo rt  
The Asia Region Funds Passport (ARFP) provides a common framework for offering collective 
investment funds between participating economies. The ARFP allows collective investment 
schemes that are regulated in one member economy (the home economy) to be sold to retail 
investors in other member economies (host economies). The current member economies are 
Australia, Japan, New Zealand, Republic of Korea and Thailand. Funds that are regulated in 
economies that have already implemented the ARFP regime into lo cal legislation are eligible to 
use the ARFP (note: Korea is in the process of implementing its legislation and is anticipated to 
complete its implementation in 2020).  
 
Under Chapter 8A of the Corporations Act 2001, Australia has implemented the ARFP to al low 
for the registration of Australian collective investment schemes as passport funds, and to 
recognise incoming foreign passport funds and provide for the regulation of foreign funds in 
respect of disclosure, distribution, member complaints and other inv estor protections where 
funds are marketed to Australian investors. ASIC has provided guidance in RG 131 Funds 
management: Establishing and registering a fund which set out the requirements to register as 
an Australian passport fund and RG 138 Foreign pass port funds on ASIC’s approach to the 
regulation of foreign passport funds in Australia.  
 
Para 4.106 (Page 123)  
The main laws governing the insurance sector are the Insurance Act 1973 for general insurance; the 
Life Insurance Act, 1995 for life insurance; a nd the Private Health Insurance Act 2007 for private 
health insurance.  
 
Question 17  
What is the legal regime on cross -border supply of insurance and pre -need policies/products to 
Australia?  
 
RESPONSE:  Insurers operating in Australia (or providing insuranc e to Australians) are required 
to be authorised to operate by the Australian Prudential Regulation Authority (APRA). APRA WT/TPR/M/396/Add.1  
 
- 255 - 
 
  supervises insurers to ensure that under all reasonable circumstances they keep their financial 
promises made to their beneficiaries ( i.e. policyholders). The precise rules and requirements 
for insurers may vary depending on the type of business that is being established. Further 
information can be found at www.apra.gov.au . 
 
In addition, insurers pr oviding insurance to retail customers in Australia will also need to be 
licensed under legislation administered by the Australian Securities and Investments 
Commission (ASIC). ASIC regulates companies and financial services businesses and promotes 
investor , creditor and consumer protection by administering relevant laws. Generally, this would 
involve insurers holding an Australian financial services (AFS) licence and complying with certain 
obligations, such as disclosure obligations and dispute resolution p rocesses. Further information 
can be found at www.asic.gov.au.  
 
Para 4.8 (Page 101)  
Agricultural imports are subject to strict sanitary and phytosanitary (SPS) measures, including 
quarantine measures, to preserve Australia's favourable status with regard to pests and diseases. 
The SPS arrangements in force imply that agricultural products from certain regions across the globe 
are subject to import restrictions.  
 
Question 18  
The Philippines would appreciate if Australia can signify if the above stric t SPS measures are 
consistent with the provisions of Article 20 -General Exceptions Paragraph 1.b of the General 
Agreement on Tariffs and Trade (GATT).  
 
RESPONSE:  Australia maintains a strict sanitary and phytosanitary regime, which is 
proportionate to Aust ralia's appropriate level of protection. Our approach to quarantine is 
designed to preserve Australia's favourable pest and disease status and our unique native flora 
and fauna. The Australian Government maintains its commitment to a robust, science based,  
framework to protect Australia's unique environment and biosecurity status.  
 
Under the Sanitary and Phytosanitary Measures (SPS) Agreement, Australia is entitled to 
maintain a level of protection considered appropriate to protect life or health. Article X X:b of 
the GATT also recognises that WTO Members may implement measures "necessary to protect 
human, animal or plant life or health," as long as these measures do not unjustifiably 
discriminate between countries where the same conditions prevailed, or are a disguised 
restriction to trade. Australia’s SPS measures are consistent with its obligations under the WTO 
Agreements.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
III. TRADE AND INVESTMENT POLICY  
Para 3.14 (Page 10)  
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 information and priva cy etc.) and prohibiting 
restrictions on data flows, including localization requirements. Making the WTO moratorium on 
customs duties on electronic transmissions permanent is also a key aim.  
 
Questions 19 -20 
What are the best practices of Australia in faci litating digital trade and electronic transactions, 
ensuring consumer protections, prohibiting restrictions on data flows including localization 
requirements, and measuring digital trade? What are the challenges faced by Australia in 
implementing these pra ctices?  
 
RESPONSE:  The Australia Government’s digital trade strategy is set out in the digital trade 
chapter of Australia’s International Cyber Engagement Strategy, which highlights the 
importance of shaping an environment for digital trade, i.e. by harmon ising standards, enabling 
greater access to markets, facilitating trade and supporting regulatory cooperation.  
 
Finding a balance between promoting trade enabling rules and the free flow of information and 
ensuring the Government can respond to legitimate  public policy concerns has been challenging. 
The Australian Government has consulted on a whole -of-government basis to implement a WT/TPR/M/396/Add.1  
 
- 256 - 
 
  regulatory regime that is responsive to this challenge. For instance, electronic commerce is 
principally regulated and facil itated by federal, state and territory Electronic Transaction Acts.  
Other measures adopted include the Competition and Consumer Act 2010 (Cth) to ensure 
businesses adopt fair business practices when engaging in electronic commerce, and the Privacy 
Act (Ct h) which regulates the collection, use and disclosure of personal information. The Do Not 
Call Register Act (Cth) and the Spam Act (Cth) also provide protection to users from unsolicited 
marketing communications transmitted via phone calls, faxes and messa ges.  
 
Can Australia elaborate on its reasons for proposing that the WTO moratorium on customs 
duties on electronic transmissions be made permanent?  
 
RESPONSE:  It has been the Australian Government’s long -standing position to support a 
permanent moratorium  on customs duties as we do not want tariff barriers to impede trade in 
digital products. Australia views the WTO moratorium on customs duties on electronic 
transmissions as applying to all goods and services transmitted electronically, and we do not 
see any benefit in WTO members applying customs duties on these. Any move to apply customs 
duties would increase the costs of goods and services purchased online and may act as a 
disincentive for business and consumers to engage in e -commerce. The Australian Go vernment 
believes the moratorium acts as a driver of growth in e -commerce as it maintains open trading 
arrangements, provides predictability for business and consumers and encourages engagement 
in digital trade.  
 
Para 3.6.5 (Page 16)  
AANZFTA parties are im plementing recommendations to upgrade the agreement 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, customs procedures (to include trade facilitation), 
services, investment, e -commerce, competition and government procurement.  
 
Question 21  
What is the projected timeline and its objectives for the upgrade of the AANZFTA to address 
government procurement?  
 
RESPONSE:  No projected timeline has been set for the government procurement element of 
the AANZFTA upgrade negotiations. However, in 2019 AANZFTA Ministers tasked officials to 
conclude text for a second protocol to amend AANZFTA within an expeditious timeframe. The 
first round of AANZFTA upgrade negotiations is due to commence in June 2020.  
 
The objective is to add a new chapter on government procurement to the agreement.  
 
__________