WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  WT/TPR/M/244/Add.1 
16 May 2011 
 (11-2474) 
Trade Policy Review Body 
5 and 7 April 2011 Original:   English/ 
 anglais/ 
 inglés 
  
TRADE POLICY REVIEW 
AUSTRALIA  
Record of the Meeting
 
Addendum  
Chairperson:  H.E. Mr. Mario Matus (Chile) 
  This document contains the advance written questions, and replies provided by Australia.
1 
__________________________________________________________________________________ 
Organe d'examen des politiques commerciales 
5 et 7 avril 2011 
 
EXAMEN DES POLITIQUES COMMERCIALES 
AUSTRALIE 
Compte rendu de la réunion  
Addendum  
Président:  S.E. M. Mario Matus (Chili) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par l'Australie.1 
__________________________________________________________________________________ 
Órgano de Examen de las Políticas Comerciales 
5 y 7 de abril de 2011  
EXAMEN DE LAS POLÍTICAS COMERCIALES 
AUSTRALIA 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. Mario Matus (Chile) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Australia.1 
 
 
                                                      
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/244/Add.1 
 Page 3 
 
 
  REPLIES PROVIDED BY AUSTRALIA 
 MEXICO
 
 
CHAPTER III:  TRADE POLICIES AND PRACTICES BY MEASURE 
 
Table III.1 Australian tariff st ructure, 2002, 2006 and 2010 
 This table indicates that the MFN tariff for pas senger motor vehicles fell from 57.6% in 2002 to 
41.7% in 2010, but remains well a bove the final bound rate of 23%. 
 
Question
 
 Could Australia explain why it maintains tariffs of nearly double the bound rate? 
 
Answer
 
 
The 41.7% figure referred to by Mexico includes a calculation of the ad valorem  equivalents of the 
specific duty applied by Australia on used pass enger motor vehicles.  Excluding the specific 
component of the used passenger motor vehicle ta riffs, Australia applies tariffs of only 5% on 
passenger motor vehicles, which is well belo w Australia’s bindings on these tariff lines. 
 
Australia’s tariffs on used passenger motor ve hicles remain unbound under Australia’s Uruguay round 
commitments.  Hence a strict comparison of the average bound rate (which does not take into account the ‘unbound’ used PMV tariffs) agai nst the average applied rate (whi ch does reflect the applied used 
PMV tariffs) is not an appropriate one. 
 
Paragraph 15:
 
 It is stated that:  "despite a low overall average tariff rate and large share of duty-free items, tariff 
peaks in some sectors remain a potential distor tion and thus a source of inefficiency". 
 Question
 
 Does Australia intend to correct the potentia l distortion and sou rce of inefficiency? 
 
Answer
 
 
The purported existence of peaks in Australia’s tari ff schedule is purely a reflection of the very low 
overall average tariff rates which Australia applies.  Australia’s tariffs are applied at an ad valorem 
rate of 5% or less across all tariff lines, aside  from certain textiles and clothing items, which are 
applied at 10%, and a very small number of ite ms (cheese and curd, fruit juices and used passenger 
motor vehicles) which attract a specific duty.  
 
Since the 1980s Australia has undertaken a domes tic reform process which has seen a substantial 
reduction in overall tariff rates, and the removal of tariff peaks.  This process will continue on 
1 January 2015, when tariffs on remaining textil es and clothing items will be reduced from 10% to 
5%. 
 
Paragraph 16:  
 According to the Secretariat, "the textiles and clothing sector shows more significant tariff escalation". WT/TPR/M/244/Add.1 
Page 4  
 
 Question  
 Are there any Australia policies aime d at reducing such tariff escalation? 
 
Answer
 
 
As noted above, Australian tariffs on textiles and cl othing are scheduled to be reduced from 10% to 
5% on 1 January 2015.  This tariff reduction will elim inate tariff escalation in the textiles and clothing 
sector.  CHAPTER IV:  TRADE POLICIES BY SECTOR 
 
Paragraph 44:
 
 In this paragraph it is stated that "average annual MFP growth fell to -0.8% over 2003/04-2007/08 
(from 1.8% in 1998/99-2003/04)". 
 
Question
 
 What steps are being taken to remedy this situation? 
 
Answer
 
 
The Government has a broad, multi-faceted productivit y agenda, which targets the short, medium and 
long-term drivers of productivity, and is suppo rted by Australia’s success in maintaining 
macroeconomic stability.  Current initiatives include: 
 
The Seamless National Economy re gulation and competition reforms being undertaken through the 
Council of Australian Governments (COAG).  These reforms are designed to reduce red tape and 
make it easier for businesses and workers to opera te across State and Territory (State) borders. 
 Adoption of a carbon price mechanism to achieve climate mitigation goals,  a recently announced 
reform that will have implications for energy mark ets and finalising existing areas of energy market 
reform.  Improve human capital including - reforms to a nd investments in early childhood development, 
secondary and tertiary education, skills and wo rkforce development and preventive health. 
 
Significant investments in infrastructure and regulatory and competition reforms.  In addition, options for a further wave of regulat ory and competition reforms to improve Australia’s 
productivity are being pursued through COAG.  Fu rther scoping work currently underway includes 
options to: 
 
Encourage the more efficient operation of, and inv estment in, key sectors such urban water, land 
transport, and the establishment of a price on carbon emissions.  And the development of further options for a future regulatory reform agenda.   
This process is being informed by advice from the Productivity Commission that will also include 
advice on arrangements for consultation with stakeholders.   WT/TPR/M/244/Add.1 
 Page 5 
 
 
  Paragraph 98:  
 Australia does not permit cabotage in aviation services,  where demonstrable benefits can be gained 
through the granting of cabotage rights.  Question
 
 Are there any plans to change this policy? 
 
Answer
 
 
No 
 
ADDITIONAL QUESTIONS FROM MEXICO  
 
Standardization  Question
 
 We would appreciate more specific informati on on your experience and methodology in achieving 
high levels of transparency and coordination in your na tional standardization policies.  In particular, 
we would be interested to know how the Council of Australian Governments (COAG), the COAG 
Reform Council and the National Partn ership Agreement have been set up. 
 Answer
 
 The Council of Australian Governments (COAG) is the peak intergovernmental forum in Australia. 
COAG comprises the Prime Minister, State Premiers, Territory Chief Ministers and the President of the Australian Local Government Association (ALGA). The then Prime Minister, Premiers and Chief Ministers agreed to establish COAG in May 1992. It first met in December 1992. The Prime Minister 
chairs COAG. The COAG Secretariat is located w ithin the Department of the Prime Minister and 
Cabinet.  
 
The role of COAG is to initiate, develop and monitor the implementation of policy reforms that are of 
national significance and which re quire cooperative action by Aust ralian governments (for example, 
health, education and training, Indigenous re form, early childhood development, housing, 
microeconomic reform, climate change and energy, water reform and natural disaster arrangements). 
Issues may arise from, among other things: Minister ial Council deliberations ; international treaties 
which affect the States and Territories; or majo r initiatives of one government (particularly the 
Australian Government) which impact on other gove rnments or require th e cooperation of other 
governments.  COAG meets on an as needed basis.  COAG may also settle particular issues out-of-session by 
correspondence.  In recent years, a number of issues have been settled in this manner.  The outcomes 
of COAG meetings are contained in communiqués rel eased at the end of each meeting. Where formal 
agreements are reached, these may be embodi ed in Intergovernmental Agreements.  
 The COAG Reform Council (the council) has b een established by the Council of Australian 
Governments (COAG) as part of the arrangements fo r federal financial relations to assist COAG to 
drive its reform agenda. Independent of individual government s, the Council reports directly to 
COAG on reforms of national significance that requi re cooperative action by Australian governments. 
 WT/TPR/M/244/Add.1 
Page 6  
 
 The Council’s objectives are to: 
 
• strengthen accountability through objective a nd credible monitoring, assessment and 
reporting of the performance of governments in areas referred by COAG  
• improve the public's ability to evaluate and dr ive performance in the COAG reform agenda  
• proactively improve COAG's capacity to de liver and develop its reform agenda  
• be a centre of excellence and creativity on cross-jurisdictional performance monitoring, 
assessment and reporting.  
 
Its core business is to:  
• monitor, assess and publicly report on the perfo rmance of the Commonwealth and States and 
Territories in achieving the outcomes and perfo rmance benchmarks specified in the six 
National Agreements. The council pr ovides reports to COAG which:  
 
o publish the performance data and provide a comparative analysis of the performance 
of governments in meeting the agreement’s objectives, including highlighting relevant contextual differences between jurisdictions   
o highlight examples of good practice and performance so that, over time, innovative 
reforms or methods of service delivery may be adopted by other jurisdictions (from 
second year of reporting)    
o reflect the contribution of both levels of government to achieving performance 
benchmarks and to achieving continuous improvement against the outcomes, outputs 
and performance indicators (from second year of reporting).  
 
• report to COAG on the performance of govern ments under various National Partnerships. 
There are two distinct tasks in relati on to reporting on National Partnerships:  
 
o for National Partnerships with reward pa yments, the council reports to COAG on an 
independent assessment of whether pred etermined performance benchmarks have 
been achieved prior to reward payments being made   
o as part our reporting to COAG on National Agreements, the council undertakes an 
analytical overview of those National Partnerships that support the objectives in a National Agreement  
 
• assess performance of the Commonwealth and the Basin States under Water Management 
Partnerships as part of reforms under the Agreement on Murray-Darling Basin Reform 
• review the consistency of capital city strategi c planning systems with the new national criteria  
• advise COAG on options to improve C OAG’s performance reporting framework  
• advise COAG on the aggregate pace of activ ity in progressing COAG’s reform agenda. 
 Further detailed information can be found at the following sites:  www.coag.gov.au 
 www.coagreformcouncil.gov.au 
  WT/TPR/M/244/Add.1 
 Page 7 
 
 
  Sanitary and Phytosanitary Measures 
 Question
 
 With regard to sanitary measures, we would appreci ate an explanation of the substantive differences 
between the concepts "quarantine" and "biosecurity", or a definition of each of the two in terms of 
their implementation.  Answer
 
 Biosecurity is broader than quarantine – it extends  to the management of pests and diseases including 
weeds and pest animals, includes a focus on management activities such as monitoring and 
surveillance and response to pest and disease incu rsions (not just prevention and interception), 
recognizes the importance of risk management rather than risk elimination, and fosters a sense of 
shared responsibility. 
 
An example of the shift to biosecurity is th e Australian Government’s move to a risk-based 
operational framework across the biosecurity contin uum.  Australia is progressively implementing 
risk-based intervention strategies at the border to replace the previously mandated intervention targets 
following the trials conducted at airports, mail centres, and seaports. Implementation will impact 
different imported products in different ways. For some, nothing may change, while a small number 
may experience an increased level of inspection. For most, and particularly for those which comply 
with quarantine requirements, it should result in  less AQIS intervention and more efficient passage 
through biosecurity controls without compromising Australia’s quarantine integrity. Improvements to 
current processes will be continuously implemente d as they are developed, tested and found to 
enhance processing efficiency. 
 
Question
 
 Regarding the Post-Import Permission Scheme , in operation since 12 January 2009, whereby 
permission may be granted after importation at the discretion of Customs, in respect of certain 
classes of controlled goods including specific drugs, chemicals and consumer items, it is important 
for us to know the degree of sanita ry control and the impact on violations. 
 Answer
 
 
In terms of the degree of any sanitary interventi on, this is determined on a case-by-case basis. 
However, the goods eligible under the Post-Import Permission Scheme are generally those which are 
considered to be of low biosecurity concern. 
 
Paragraphs 43 and 44:  
 
Question  
 
What safety standards has the Government introdu ced since 1 January 2011, particularly in respect 
of the agriculture, livestock, aquaculture and fis heries products concerned?  The pages we accessed 
via the links provided show that foods of agricul tural, livestock, aquaculture and fisheries origin are 
regulated by other authorities.  Furthermore, some of the provisions are mandatory only for 
Australia, so which are the safety standards that  may affect the export of Mexican products to 
Australia?  WT/TPR/M/244/Add.1 
Page 8  
 
 Answer  
 
FSANZ has not introduced any new safety (food hygiene) standards in the Australia New Zealand 
Food Standards Code  (the Code) since 1 January 2011. The Standards that currently support the safe 
production of commodities are Standard 1.6.1 – Microbiological Limits for Food and Primary 
Production Standards in Chapter 4 of the Code. 
 Standard 1.6.1 lists the maximum pe rmissible levels of foodborne micr o-organisms that pose a risk to 
human health in nominated foods, or classes of food s. This Standard currently lists microbiological 
limits for a number of dairy products, processed meat products and seafood commodities, as well as 
particular infant foods, spices, dried co conut, packaged water and seed sprouts. 
 Currently, three primary production Standards have  been developed and gazetted. These include 
Standard 4.2.1 – Primary Production and Processing Sta ndard for Seafood, (which has been in effect 
since 2007), Standard 4.2.4 – Primary Production and Processing Standard for Dairy Products (which 
has been in effect since 2008) and Standard 4.2. 2 – Primary Production and Processing Standard for 
Poultry Meat (which comes into effect in May 2012).  All food for sale in Australia must comply with th e requirements of the Code. It is the responsibility 
of Australian Quarantine and Inspection Agency  (AQIS), through the Imported Food Inspection 
Scheme, to check that food imported into Australia meets the requirements of the Code. All standards 
other than those that are ‘Australia only’ or ‘New Zealand only’, apply to food sold in both Australia 
and New Zealand. Where they are ‘Australia onl y’, New Zealand has its own separate standards 
applying to food sold in New Zeal and e.g. for maximum residue limits. 
 Paragraph 52:
 
 
Question  
 What standards does Australia use to determine ma ximum pesticide residue limits in products?  Does 
it use national maximum residue limits (MRLs) or those established by CODEX ALIMENTARIUS? 
 
Answer
 
 
Food imported into Australia must comply with th e standards set out in the Australia New Zealand 
Food Code. Australia does not automatically refe r to Codex or MRLs of the exporting country. 
Applications can be made to Food Standards Austra lia New Zealand for adoption of a particular MRL 
into the Australia New Zealand Food Code (eg a pa rticular Codex MRL). Many of the MRLs listed in 
the Code correspond with Codex MRLs.   
Question
 
 Does the Food Standards Australia New Zealand (FSANZ) have a public site for consultation 
regarding MRLs for agricultural and veterinary chemical s?  Or will it take account of the MRLs of 
CODEX ALIMENTARIUS or the producer country?  Answer
 
 FSANZ consults on all proposed MRL variations via its website and WTO notifications. If a limit is 
not listed in the Code for a particular agricultural or veterinary chemical/food combination, there must 
be no detectable residues of that chemical in that  food. In the absence of the relevant MRL in the 
Code, food may not be sold where there are detectab le residues. Where residues do not pose health or 
safety concerns in the context of the Australian di et, MRLs may be varied in line with Codex or  WT/TPR/M/244/Add.1 
 Page 9 
 
 
  trading partner standards where anomalies between standards may result in adverse trade impacts. 
Requests for MRLs for residues that may occur in  imported foods are considered on a case-by-case 
basis in a risk-based assessment.   Paragraph 52
: 
 
Question  
 What assessment and approval process does the FS ANZ apply for importing genetically modified 
organisms? 
 
Answer
 
 
FSANZ is the independent statutory authority resp onsible for the development or variation of food 
standards in the Australia New Zealand Food Standards Code  (the Code). All food sold in Australia 
(and New Zealand), whether imported or produced locally , must comply with the Code, in addition to 
State and Territory food legislation and other legi slative requirements. GM foods are specifically 
captured in the Code by Standard 1.5.2 – Food produced using Gene Technology. 
 The protocol used by FSANZ for the safety assessm ent of GM food is based on widely recognised 
principles that have been established since the 1990s  at the international level by bodies such as the 
Codex Alimentarius Commission, the World Health  Organisation and the Organisation for Economic 
Cooperation and Development (OECD). Similar as sessment procedures are followed in Canada, 
Japan, the European Union and the United States. 
 
To assess an application, FSANZ receives an app lication dossier that must meet certain data 
requirements as outlined in a Guidance Docu ment available on the FSANZ website at 
http://www.foodstandards.gov.au/_srcfiles/GM %20FINAL%20Sept%2007L %20_2_.pdf. Following 
preparation of a comprehensive saf ety assessment there is at least one period of public consultation. 
Providing that no concerns regarding public health  and safety have been identified, an Approval 
Report incorporating the safety assessment is prepar ed for consideration by the FSANZ Board. If the 
Board approves the application, the decision is th en forwarded to the Australia and New Zealand 
Food Regulation Ministerial Council (Ministerial Counc il) for its consideration. Providing Ministerial 
Council does not disagree with the Board’s decision, th e approval is incorporated into Standard 1.5.2. 
The whole process from receipt of an applicati on to gazettal takes an average time of around 
18 months.  
Paragraph 55:
 
 
Question  
 Does the FSANZ envisage recognizing systems to p revent risks of contamination during primary 
production that other countries apply for plant product safety? 
 
Answer
 
 
FSANZ would consider equivalence requests from trading partners.   Question
 
 Does the FSANZ envisage some system to reduce c ontamination risks, in animal production - i.e. are 
imports required to comply with the same regulations as apply nationally? 
 WT/TPR/M/244/Add.1 
Page 10  
 
 Answer  
 
Since June 2002, FSANZ has had responsibility for developing national food safety requirements that 
cover all parts of the food supply chain – an integr ated paddock-to plate approach. To this effect, 
FSANZ has been developing primary production a nd processing standards for identified industry 
sectors for inclusion in Chapter 4 of the Code. A primary production and pro cessing standard is a set 
of obligations on primary producers and processors of food commodities. These obligations include measures to control food safety hazards that could occur during the production and processing of agricultural produce.  Such measur es may include requirements for: 
 
• control of inputs  
• premises and equipment 
• health and hygiene  
• skills and knowledge  
• storage and transportation  
• traceability. 
 Along with other standards in the Code they pr ovide an approach to managing food safety and 
suitability
2 in Australia that extends from production on the farm through to sale to the consumer. 
FSANZ uses an internationally agreed risk analysis  approach to inform its  regulatory decision-making 
processes.  The risk analysis approach3 includes an assessment of  the main hazards associated with 
the commodity and the factors along the supply chain that impact on the presence or level of that 
hazard. This will inform what control measures are needed and the extent to  which potential hazards 
can or cannot be managed at steps in the chain to minimise public health risks. As described 
previously, all food for sale in Australia must comply with the requirements of the Code. It is the responsibility of AQIS, through the Imported Food In spection Scheme, to check that food imported 
into Australia meets the requirements of the Code. 
 
Question
 
 What is the procedure for authorizin g establishments to import horsemeat? 
 
Answer
 
 
Australia does not currently import horsemeat. Hors emeat for export must be processed in export-
accredited abattoirs. Currently there are two abatto irs that are export-accredited, one in Queensland 
and one in South Australia.  
Paragraph 58:
 
 
Question  
 
Australia assists developing countries to build quaran tine infrastructure.  What does this assistance 
consist of?  
                                                     
 
2 The term ‘unsafe and unsuitable’ covers hazards that  could affect the health of consumers as well as 
levels of contaminants and residues which, while not  unsafe, are in excess of the limits in the Code. 
3 Information on the risk analysis framework in which FSANZ operates is available on the FSANZ 
website at: www.foodstandard s.gov.au/aboutfsanz/scientif iccapabilities/riskanalysis.cfm  WT/TPR/M/244/Add.1 
 Page 11 
 
 
  Answer  
 
Details of the type of assistance previously provided can be found in the documents referenced in the 
Trade Policy Review, WTO documents G/ SPS/GEN/717/Add.1, 11 October 2007, and 
G/SPS/GEN/717/Add.2, 6 July 2010.  Question
 
 What is the procedure for selecting the States t hat receive such assistance and what criteria does the 
AQIS apply for providing it? 
 
Answer
 
 
It is the responsibility of interested parties to a pproach the Australia Government with proposals for 
technical assistance, including assistance relating to quarantine infrastructure. Internal processes are 
then used to determine any proposal’s suitability. 
 
Intellectual Property Rights (IPRs)  Question
 
 
Is the Attorney-General's Department an administrative or a judicial authority?  Is it related to IP 
Australia or is it independent?  Answer
 
 
The Attorney General’s Department is a part of the Executive arm of the Commonwealth Government, and plays an administrative role.  It is  not related to IP Australia, which is a self funding 
Government agency which operate s under Department of Industry, Innovation, Science and Research 
(DIISR). IP Australia and DIISR are also administ rative agencies operating within the Executive arm 
of the Commonwealth Government. 
 
Paragraph 120:
 
 
Question  
 
What is the advantage of granting innovation patents to SMEs in terms of the application process?  In 
other words, does the grant of these patents take less time?  Answer
 
 
The objective of the innovation patent system is to stimulate innovation in Australian SMEs by 
providing an incentive to commercialise ideas that may not be sufficiently inventive to meet the 
requirements of standard patent.  An innovation patent provides the pate nt owner with a right that is 
quick and cheap to obtain and lasts for a sufficien t time (8 years) to encourage investment in 
developing and marketing the invention.   If the pa tent meets the requirements of examination it will 
be certified. An innovation patent owner can only enfo rce their rights if their patent has been certified. 
 
Question  
 Could you give an example of this type of patent?  WT/TPR/M/244/Add.1 
Page 12  
 
 Answer  
 
An example of an innovation patent that has enjoyed commercial success is AU 2001100250 entitled 
"A drinking aid".  In this case, the idea was initia lly developed as a drinking aid for people who can 
only use one hand, for example after amputation of an arm.  The main embodiment of this invention 
combines a neoprene glove and a neoprene drink holde r providing a device that keeps the user’s drink 
cold while keeping the user’s hand warm. This example demonstrates that an innovation protects 
simple ideas.  
Question
 
 
Which pharmaceuticals are eligible to have the te rm of their patent protection extended up to 25 
years?  Answer
 
 
To be eligible for an extension of term in Austra lia the patent must be for a product which contains a 
pharmaceutical substance on the Australian Register of Therapeutic Goods, and the first regulatory 
approval date for the pharmaceutical substance must have occurred more than five years after the date 
of filing the patent.  
Paragraph 122:
 
 
Question  
 What are the certified innovation patents referred  to, and what are the sealed standard patents? 
 
Answer
 
 
Innovation patents are a second tier pa tent system akin to utility models or petty patents.  Innovation 
patents provide intellectual property rights for incr emental and lower level i nventions that would not 
be sufficiently inventive to qualify for a standard pa tent. This is due to the inventive threshold being 
lower compared to a standard patent, that is, the innovation patent requires an innovative step rather 
than the inventive step required for a standard pa tent.  Specifically, innovative step merely requires 
that the invention varies from the prior art base in ways that make a substa ntial contribution to the 
working of the invention.   
An innovation patent is granted after a forma lities check but is only certified after substantive 
examination, which only occurs if directed by the Commissioner of Patents or requested by the patent 
owner or a third party.  An innovation patent owner can only enforce their rights if their patent has 
been certified.   Standard patent applications, which require the hi gher threshold of inventive step, once accepted, are 
advertised as such. Third parties then have three months during which they may oppose the grant of 
the patent. If there are no successful oppositions duri ng this period, the patent application will be 
sealed.    Despite the differences in terminology, a certifie d innovation patent and a sealed patent have each 
undergone a substantive examination process and gr ant the patent owner an exclusive enforceable 
right.   WT/TPR/M/244/Add.1 
 Page 13 
 
 
  Further information together with a comparison char t of innovation patent vs . standard patent is 
available on the IP Australia website at th is link: http://www.ipaustralia.gov.au/patents/ 
what_innovation.shtml   Paragraph 123:
 
 
Question  
 With regard to compulsory licences,  does the Commonwealth court order the grant of these licences 
of its own motion or on application by a party? 
 
Answer
 
 
The Federal Court of Australia can only order a compulsory licence on application by a party.   
Paragraph 124:
 
 
Question  
 With regard to the amendment of customs provisions in relation to cash secur ity, referred to in this 
paragraph, what does this  amendment consist of? 
 
Answer
 
 
The Customs notice of objection scheme had previously required right holders to lodge a cash security 
of up to $10,000 at the time of application.  The am endments introduced in 2007  allowed for a deed of 
undertaking, agreeing to repay to Customs the cost s incurred as a result of seizure, to be provided 
instead of a cash security.   Paragraph 125:
 
 
Question  
 
With regard to the public consulta tions held on the amendment of the Trade Marks Act, how are these 
consultations carried out?  Answer
 
 
Consultations on the proposed amendments were  discussions with trade mark user groups and 
consultations with the wider pub lic. Consultations included relea se of a public discussion paper in 
2008 which invited written submissions.  For more info rmation, please refer to the IP laws Exposure 
Draft - Explanatory Memorandum released on the IP  Australia website on 3 March 2011 and available 
at this link:  http://www.ipaustralia.gov.au/resources/news_new.shtml#13 
 
Paragraph 126:  
 
Question  
 
With regard to trademarks, we would like to k now what is meant by "defensive trademarks?" 
 WT/TPR/M/244/Add.1 
Page 14  
 
 Answer  
 
Defensive trademarks form part of a suite of measu res for the protection of well-known trade marks in 
Australia.  It is possible to obtain protection proac tively for well known marks in Australia using this 
system.  A defensive registration will enable its owne r to exclude others from using the trade mark for 
a much wider range of goods or services than the re gistered owner actually uses the trade mark for.  
For a defensive trade mark to be registered, the app licant must already have a registration for the same 
trade mark (for goods or services which do not have to be similar). The registered trade mark must 
have been used to such an extent on the goods or services for which it is registered that consumers are 
likely to assume a connection between those goods or services and the goods or services of the 
defensive trade mark.  There is no requirement that  a defensive trade mark be used on the goods or 
services of the defensive registration and a defens ive trade mark cannot be removed on the basis of 
non-use.  Paragraph 128:
 
 
Question  
 With regard to plant varieties, we would like to k now what the different kinds of false representations 
are.  
Answer
 
 
Offences, other than infringement offences, are dealt with under section 75 of the Plant Breeders 
Rights Act 1994 (PBR Act).  It is a criminal offence:  
• To make a false statement in an application or  other document given to the Secretary or the 
Registrar for the purposes of this Act. 
• For a person who is not the grantee of PBR in a plant variety to represent to another person 
that he or she is the grantee of PBR in that variety. 
• For a person to represent to another person that PBR granted to that first mentioned person in 
a plant variety extends to cover another plant variety that is not: o a dependent variety of the first mentioned variety;  or 
o a variety that has been declar ed to be an essentially derived variety of the first mentioned 
variety. 
• For a person to represent to another person that a plant of a variety in which PBR has not been 
granted is a plant of a variety in which PBR has been granted.  
 Paragraph 131:
 
 
Question  
 
With regard to copyright, what are the substanti ve requirements to be fulfilled for the grant of 
copyright protection?  Answer
 
 
The Copyright Act does not require the completion of  formalities (such as publication, registration or 
the payment of fees) in order to obtain protection in  Australia, or any other country which is also a 
party to an international copyright treaty. This is  unlike the position with patents, trademarks, designs 
and plant breeder's rights where registration is a precondition to protection. Copyright protection is 
granted automatically from the time an original work is created.  WT/TPR/M/244/Add.1 
 Page 15 
 
 
   
Paragraph 135:  
 
Question  
 
Which type of infringements are subject to civ il proceedings and penalties, and which to criminal 
ones?  Answer
 
 Civil proceedings and remedies are available for all infringements of copyright and industrial property 
rights.  Civil proceedings may be pursued throu gh the courts on the initiative of the right holder. 
 Criminal offences relate to a more specific set of infringements.  For example, for copyright, they 
include offences relating to infringement of techno logical protection measures (TPM) liability, abuse 
of rights management information and broadcast  decoding devices, unauthorised access to encoded 
broadcasts, piracy of books, computer software, sound recordings and films, infringements on a commercial scale and other actions that prejudice the economic rights of the copyright owner.  Offences relating to the infringement  of trademarks occur where, in the course of trade, trade mark 
infringement occurs which involves wilful use of, or intention to use, the same (or almost identical) 
trade mark on the same goods or services for wh ich the trade mark is registered, without 
authorisation.  Criminal proceedings can be initiate d ex officio, without request from the right holder. 
 Enforcement of Plant Breeders Rights (PBR) th rough the courts may be conducted through civil 
actions initiated by the PBR owner (Part 5 of the PBR Act), and criminal actions initiated by the 
Crown (sections 74 and 75).   
 
Criminal proceedings and penalties are not ava ilable for patents or designs infringement. 
 
Question
 
 What do the powers of Customs consist of? 
 
Answer
 
 
Customs has the power to seize allegedly infringing materials which are being imported and which are 
brought to Customs attention by a right holder.  Customs also has the power to seize suspected 
infringing materials which are being imported or exported. 
 
Question  
 Which authority hears infringement proceedings?  
Answer
 
 
Infringement proceedings are heard in the Fe deral Magistrates Court or Federal Court. 
 Paragraph 129:
 
 
We have the following questions about  geographical indications (GIs): 
 WT/TPR/M/244/Add.1 
Page 16  
 
 Question  
 Who is entitled to own a GI in Australia?  Answer
 
 
There are no restrictions on who may apply for a certif ication trade mark to protect a GI for any goods 
or services, providing the requirements of the Trad e Marks Act are met. App lications for certification 
marks originate from a range of sources inside and outside Australia including private individuals; large companies; small to medium enterprises; and government organisations; and public interest 
groups.     
 There is a separate system for protecting wine GIs set out in the Wine Australia Corporation Act 1980.  For protection of an Australian wine GI under the Wine Australia Corporation Act, any of the 
following may apply in writing to the Geographical Indications Committee for the determination of a 
geographical indication in relation to a region or locality in Australia:  
 (a) a declared winemakers organisation;  (b) a declared wine grape growers organisation;  (c) an organisation representing winemakers in a State or Territory;  (d) an organisation representing growers of wine grapes in a State or Territory;  
(e) a winemaker;  
(f) a grower of wine grapes.   In addition, the Geographical Indications Committee can  also determine a GI on its own initiative.    
 
A person may apply in writing to the Geographical Indications Committee for the determination of a 
GI in relation to a foreign country or a region or locality in a foreign country.  
 
Question
 
 Does the GI registration allowed for by the Trade Marks Act 1995 apply to national and foreign GIs?  
If so, what are the criteria to be met for registration under this Act?   
 Answer
 
 
A certification trade mark can be obtained for both na tional and for foreign GIs.  Examples of foreign 
GIs protected under the certification trade mark system are Stilton, Roquefort, Grana Padano and 
Parmigiano Reggiano for cheese, Parma and Prosciutto di Parma for ham, Darjeeling for tea, and Asti 
and Chianti Classico for wine.    In Australia, full examination of every trade mark  application, including certification trade mark 
applications, occurs. The criteria include the basi c registrability tests including prior rights, and 
whether use of the term on the goods or services is likely to deceive or cause confusion.   The trade 
mark must, together with the rules, be able to distinguish the goods certified from those not certified. 
 Certification trade marks (in Australia) serve a different purpose to ordinary or collective trade marks in that the use of a certification trade mark on goods does not tell the purchaser who made or 
marketed the goods. Instead, a certification mark in dicates that the goods on which it is used have 
been "certified" as, among other things, as having a pa rticular standard of quality, geographical origin 
or other characteristic.     WT/TPR/M/244/Add.1 
 Page 17 
 
 
  A copy of rules governing the use of the certificati on mark must be filed, at the time of filing the 
application or as soon as practicable after filing. Th ese rules are made available to the public through 
publication on the IP Australia website afte r they have been filed with the office. 
 The registration of certification trademarks require s that competition and public interest issues be 
tested by an independent government organisa tion, the Australian Competition and Consumer 
Commission (ACCC) to ensure the rules do not unfair ly exclude those qualified to use the trade mark 
and that the certification authorities are competent.   The rules are also published once they have been 
certified by the ACCC.  Question
 
 What protection is granted to foreign GIs for spirit beverages?  Is there a specific procedure?  And to 
which Australian authority does one apply for registration?  
Answer
 
 
Australia provides maximum flexibility for users of the system by offering several mechanisms by 
which GIs may be protected.  These are under the Trade Marks Act 1995 for GIs on all goods, the Wine Australia Corporation Act 1980 for wine GIs,  the Australia New Zealand Food Standards Code 
("the Code") for spirit GIs and under consumer protection laws for all GIs. 
 
Foreign GIs for spirit beverages can be protected und er the certification trade mark (CTM) system.  IP 
Australia is the agency to which the application should be made, and the ACCC must also test the 
rules governing use of the CTM for compliance with competition principles and to protect the public interest. 
 
In the absence of registration of a GI as a certification trade mark, TRIPS-consistent protection for spirit GIs in Australia would flow from action to  protect the term by its claimants under other 
legislation. Examples of this could be the acti on available under the Competition and Consumer Act 
2011 (CC Act) to address false or misleading re presentations. Concerned individuals or entities 
themselves need to take such action to the courts in  relation to these GI issues under the CC Act.  The 
Australia New Zealand Food Standards Code, develope d and maintained by Food Standards Australia 
New Zealand (FSANZ), is enforced through legislation in the states and territories and in NZ, and by Commonwealth legislation in relation to imported food. Standard 2.7.5 of this Code makes it 
impermissible to use a GI on spirits unless the spirit  was produced in the country, locality or region 
indicated by the GI. 
 
Question
 
 Does Australia have only the Register of Prot ected Names for the protection of geographical 
indications of Australian and foreign wine?  
Answer
 
 
No. GIs for Australian and foreign wine may also be protected as certification trademarks.  Examples include Asti and Chianti Classico for Italia n wine, and Hilltops for Australian wine.  
 Question 
 
 Which are the eight recognized Australian wine GIs?    WT/TPR/M/244/Add.1 
Page 18  
 
 Answer  
 
There are now nine wine GIs which have been  determined by the Geographical Indications 
Committee of the Wine Australia Corporati on (formerly the Australian Wine and Brandy 
Corporation) and entered on the Register of Pr otected names since 2006.  These are: Manjimup; 
Pemberton; Robe; Great Western; King Valley; New England Australia; Pokolbin; Upper Hunter 
Valley; and Mount Gambier. 
 
Services  
Banking  
Paragraph 68
: 
 
Question  
 
The report states that foreign banks operating bot h branches and subsidiaries may conduct banking 
business through locally incorporated subsidiaries or  through branches; in either case, authorization 
is required from the Australian Prudential Regulat ion Authority (APRA).  Could you indicate the 
requirements for obtaining such authorization?  
Answer
 
 
In Australia, a body corporate seeking an authorit y to carry on banking business should apply in 
writing to APRA in accordance with section 9 of the Act.  An application should be signed by two Directors of the applicant.  Applicants need not offer a full range of banki ng services on authorisation. 
They may choose to provide specialised services pr ovided they can demonstrate expertise in their 
selected area of operation.   Foreign banks may apply to establish locally inco rporated subsidiaries or branches to carry on 
banking business in Australia.  There are no restricti ons on the number or size of operations of foreign 
banks in the Australian market.  A foreign bank may simultaneously hold an authority to operate as a 
foreign ADI and be the parent of a locally incorporated subsidiary authorised as an ADI. 
 Except as explicitly stated in APRA’s Prudentia l Standards (http://www.apra.gov.au/ADI/Prudential-
Standards-and-Guidance-Notes-for-ADIs.cfm) and Di vision 1B of Part II of the Act, foreign bank-
owned subsidiary ADIs are subject to the same legislative and prudential requirements as locally 
owned ADIs.  Although the prime responsibility fo r oversight of the Australian operations of a 
foreign ADI rests with local management and its head office as well as with the foreign ADI’s home 
supervisor(s), the foreign ADI is nonetheless requi red to submit its local operations to APRA’s 
prudential supervision.  Detailed information on the authorisation is ava ilable in APRA’s guidelines on authorization (See 
http://www.apra.gov.au/ADI/upload/ADI-Guidelin es-11-4-08.pdf). The guidelines set down the 
minimum criteria to be addressed by applicants and necessary information and documents to be submitted with an application.   Paragraph 69
: 
 
Question  
 The report states that under relevant legislation,  foreign investment in financial sector companies 
(including banks, general insurers and life insurers)  remains subject to a 15% shareholding limit,  WT/TPR/M/244/Add.1 
 Page 19 
 
 
  although the Treasurer may approve a higher percen tage on "national interest" grounds.  Mexico 
would like to know in what instances the 15% shareholding limit may be exceeded.  Answer
 
 Under the Financial Sector (Shareholding) Act 1998  (the FSSA) the Treasurer’s approval is required 
for a person to hold a stake of more than 15% in a financial sector company.  The requirement applies 
to new as well as existing financial sector companie s.  It should be noted however that the 15% is not 
a limit or ceiling of shareholding  but a threshold where the Treasurer’s approval is required and that 
the provisions are prudential and non-discriminatory a nd they apply equally to Australian and foreign 
investors. 
 The Treasurer’s approval under the FSSA is subject to  a national interest test.  The Treasurer reviews 
applications under the FSSA against the national in terest case-by-case taking into account all relevant 
consideration.  The considerati ons would ultimately depend on the circumstances of the application 
but may include factors such as competition, prudential requirements, and impact on the economy.  
 Paragraph 72
: 
 
Question  
 
The report states that the authorities are about to formulate and implement a number of measures 
intended to promote Australia's financial services se ctor and remove remaining obstacles to Australia 
becoming a financial services centre for the Asia Pac ific.  Could you tell us when you plan to 
implement the measures in question?  
Answer
 
 
Centre for International Finance and Regulation  
 A Centre for International Finance and Regulation is seen as complementary to the recommendations 
of the Johnson Report (Australia as a Financial Serv ices Centre). The Centre will represent a strategic 
link between academia, financial regulators, Government and the financial industry. 
 The focus of the Centre will be to put Australia at  the forefront of regional and global examination of 
financial sector developments and the design of  regulatory responses to these developments.  
 
The establishment is the Centre will be by te nder. An indicative timeline is as follows: 
• Request for Proposal released on Austender – 18 April 2011 • Preferred respondent announced – 1 July 2011 • Contract Negotiations finalised and contract signed – 29 July 2011  The Centre will be progressively established after this date 
 
Asia Region Funds Manage ment Passport (ARFMP)
 
 The ARFMP would provide a multilaterally agreed fra mework allowing the cross border marketing of 
funds across participating countries.  The key benef it of a “passport” arrangement is that a fund 
registered in its home country may be offered in  more than one overseas country, ideally without 
needing to meet different licensing requirements or investment restrictions in each country.  The first APEC policy dialogue on ARFMP that was held in Kuala Lumpur in October 2010. WT/TPR/M/244/Add.1 
Page 20  
 
 A policy and technical workshop on designing a nd developing an ARFMP took place in Hong Kong 
on 15-16 March.  A second policy and technical workshop is expected to be held in mid 2011.  
Timing and implementation of a pilot passport scheme depends heavily on engagement and 
cooperation of target economies going forward. The targeted economies hope to be able to 
recommend to APEC Finance Ministers in November 2011 that a pilot ARFMP be established in 2012.  
Islamic finance
 
 The Government is working towards implementin g recommendations aimed at removing regulatory 
and taxation-related im pediments to the development of  Islamic finance in Australia. 
 
Consistent with this, the Govern ment has asked the Board of Taxation to undertake a comprehensive 
review of Australia’s tax laws to ensure that, wher ever possible, they don’t inhibit the expansion of 
Islamic finance, banking and insurance products.    The Board completed public consultations on 17  December, and is currently reviewing the 
submissions it received.  The Board will make its r ecommendations to Government by June this year. 
 
Additionally, in May 2010, the Australian Treasury and Bank Nega ra Malaysia entered into a 
memorandum of understanding to f acilitate development in the area of Islamic finance. The first 
meeting under the MOU was held in Kuala Lumpur in October 2010.  Transport/(a) Maritime services  
Paragraph 94
: 
 
Question  
 
The report states that coastal operations are ca rried out through a system of licences and permits 
available to both Australian and international opera tors.  We would like to know whether Australian 
and international operators receive the same treatment for carrying out coastal operations. 
 Answer
 
 
The current provisions of Part VI of the Navigati on Act provide for licences and permits to be made 
available to both Australian and international operator s.  Section 287 does prevent ships in receipt of a 
subsidy from a foreign government from engaging in the coastal shipping trade. Section 289 requires 
payment of Australian rates of pay for seaman empl oyed on board a ship engaging in the Australian 
coastal trade. 
 
Transport/(b) Aviation services 
 
Paragraph 97 : 
 Question
 
 The report states, in connection with the Nationa l Aviation Policy White Paper, that Australia 
envisages, inter alia, to:  retain the basic rest riction of 49% on foreign investment in Australia's 
international airlines, but remove the additional restrictions on foreign ownership of the national  WT/TPR/M/244/Add.1 
 Page 21 
 
 
  carrier Qantas (i.e. 25% for foreign individual shareholdings and 35% for total foreign airlines 
shareholdings) by amending the Qantas Sale Act 1992.  We would like to know whether, even with the removal of the additional restrictions on foreign ownership of the national carrier Qantas, the basic restriction of 49% on foreign investment in Australia 's international airlines is to be retained. 
 
Answer
 
 
Yes. As stated in the National Aviation White Pa per the Government has no immediate intention to 
lift the legislated 49% foreign ownership rest riction on Australian international airlines. 
 
(viii) Tourism  
Paragraph 104
: 
 
Question  
 
The report states that under the new TQUAL programme , innovative tourism projects are eligible for 
grants of $A 5,000 to $A 100,000,  national or sectoral tourism initiati ves are eligible for grants of $A 
25,000 to $A 500,000, and integrated tourism development projects are eligible for grants of $A 100,000 to $A 500,000.  We would li ke to know whether the grants come from the Government or 
from private entities. 
 
Answer
 
 
The new TQUAL Grants program has simplified th e categorisation – all Tourism Quality Project 
grants will now be between $15,000 a nd $100,000 (GST excl).  To be eligible to apply applicants 
must have matching cash at least equal to the am ount they are seeking from TQUAL grants – with the 
matching cash coming from a non-Australian Government source.   
INDIA
 
 
SECRETARIAT REPORT (WT/TPR/S/244)  Summary (1)  
Page vii, para 2 :  Australia’s fiscal position shifted to a deficit, largely reflecting reduced tax 
revenues, and spending relating to the implementati on of the generous economic stimulus measures.  
More importantly, however, soaring export prices a nd low unemployment seem to have reduced the 
appetite for further structural reforms, which appear  to have slowed or failed to deliver during the 
review period, possibly affecting the prospects for achieving sustained growth in the future.    
Question 1
:  India would appreciate Australia to sha re its plans to address these issues as well 
agenda for future reforms. 
 Answer
 
 
Notwithstanding the boost to national income from the cu rrent strong terms of trade, the critical factor 
underpinning Australia’s long-term prosperity will continue to be the quality of our people, businesses 
and institutions: flexible, adaptabl e, resilient and innovative.   
 WT/TPR/M/244/Add.1 
Page 22  
 
 The Government has a broad, multi-faceted produc tivity agenda, drawing on these attributes, which 
targets the short, medium and long-term drivers of productivity, and is supported by Australia’s 
success in maintaining macroeconomic stability.  Current initiatives include: 
 
• The Seamless National Econom y regulation and competition reforms being undertaken 
through the Council of Australian Government s (COAG). These reforms are designed to 
reduce red tape and make it easier for businesses and workers to operate across State and Territory (State) borders. 
• Adoption of a carbon price mechanism to achie ve climate mitigation goals, a recently 
announced reform that will have implications for energy markets and finalising existing areas 
of energy market reform. 
• Improve human capital including - reforms to and investments in early childhood 
development, secondary and tertiary educa tion, skills and workforce development and 
preventive health. 
• Significant investments in infrastructure and regulatory and competition reforms. 
 In addition, options for a further wave of regulat ory and competition reforms to improve Australia’s 
productivity are being pursued through COAG.  Fu rther scoping work currently underway includes 
options to: 
 
Encourage the more efficient operation of, and inv estment in, key sectors such urban water, land 
transport, and the establishment of a price on carbon emissions. And the development of further 
options for a future regulatory reform agenda.   
This process is being informed by advice from the Productivity Commission that will also include 
advice on arrangements for consultation with stakeholders. 
 
SUMMARY (1)  
Page vii, para 4:  It continues to screen large investment projects on the basis of vaguely defined 
"national interest" criteria restricting foreign ow nership in a few sensitive areas (e.g. international 
aviation and shipping).     
Question 2:
  We would appreciate if Australia could inform  of its plans to define in a clear manner to 
impart greater transparency to its FDI regime in respect of large investment projects. 
 
Answer  
 
Australia has taken steps over the past few year s to provide more guidance on how our foreign 
investment regime operates.  For instance, the Fo reign Investment Review Board (FIRB) released an 
easy to-read version of Australia’s foreign investme nt policy in June 2010 (the latest version was 
released on January 2011).  This policy statement w ill be made available in other languages, including 
Chinese, Japanese and Bahasa to fu rther improve transparency. 
 The FIRB will also work with individual applicants to  facilitate their investment consistently with the 
national interest. 
 
However, Australia prefers to maintain a forei gn investment review framework premised on case-by-
case assessment of foreign investment proposals against the national interest.  We prefer this flexible 
approach to hard and fast rules.  Rigid laws that  prohibit a class of investments too often also stop 
valuable investments. 
  WT/TPR/M/244/Add.1 
 Page 23 
 
 
  SUMMARY (3) 
 
Page ix, para 11:   SPS measures are taken without simila r cost-benefit analysis, including due 
account of the trade effects of such measures for stakeholders along the supply chain, although import 
risk analyses are expected to address the issue of economic consequences to relevant stakeholders.   
 
Question 3:  Does Australia envisage conductin g cost-benefit analysis of its SPS measures? 
 
Answer  
 Australia maintain a strict sanitary and phytosanita ry regime, which is proportionate to Australia’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. Th e Australian Government 
maintains its commitment to a robust, science b ased, framework to protect Australia’s unique 
environment and biosecurity status. Australia base s its national standards as closely as possible to 
those of the World Organisation for Animal Hea lth (OIE), the International Plant Protection 
Convention (IPPC) and the Codex Alimentarius Co mmission.  However, in some cases, relevant 
standards do not exist or the international standard s do not deliver the level of protection required by 
Australia to maintain its appr opriate level of protection. 
 The SPS Agreement clearly states the economic factors that can be taken into account during risk 
assessment. The use of cost/benefit analysis, as stipul ated in the report, does not comply, in our view, 
with the SPS Agreement and Australia therefore has no plans to conduct a cost-benefit of its SPS 
measures.    Page 18, para 82:   Australia’s engagement with Trans-Pacific Partnership Agreement 
 
Question 4:
  Australia may please explain whether any assessment has been undertaken of the likely 
impact of obligations under TPP on obl igations under WTO agreements. 
 Answer
 
 It is impossible to make any comprehensive and categorical assessment of the outcome of any 
negotiation until it has been completed, and the TPP negotiation is currently underway.  However, 
Australia carefully considers a range of factors wh en assessing its negotiating stance in all of its FTA 
negotiations, and this applies to the Australia pos ition in the TPP negotiatio ns - consistency with 
WTO provisions is an important criteria guiding these assessment.  Australia's general approach to 
FTA negotiation which aims at comprehensive, high ambition and trade liberalising outcomes is 
consistent with the WTO disciplines relevant to RTAs.  
SECRETARIAT REPORT (WT/TPR/S/244) 
  III(1) OVERVIEW 
 Page 32, para 5:  It is mentioned that "export assistance, c onsisting of direct grants (e.g. through 
export market development grants) and tax concessi ons (e.g. Tradex), has been maintained and 
revised. In addition to local-content requirements, te rmed as "Australian activity", export finance is, 
inter alia, conditional upon "national interest" criteria." 
 
Question 5
:  India requests Australia to give more info rmation on these programmes. India will also 
be interested in knowing from Australia as to  how these programmes, in their understanding, is 
compliant with the WTO disciplines under the Ag reement on Subsidies and Countervailing Measures 
and TRIMS?  WT/TPR/M/244/Add.1 
Page 24  
 
  
Answer  
 
The Export Market Development Gran ts (EMDG) Scheme assists with  the development of an export 
culture and creating greater inno vation within Australian business.   It is an open access scheme 
governed by non-discretionary legislation that reim burses part of the expenses incurred by a business 
in promoting market development for goods, services,  intellectual property or know how.  Any type 
of firm from any industry may apply.  Funding is  not related to export performance.  Members may 
find detailed information on the EM DG on Austrade’s website, at 
http://www.austrade.gov.au/exportgrants.   
 
Tradex is an upfront exemption of customs duties an d other taxes, dependent on a demonstration that 
the relevant goods will be exported or  incorporated into goods that are exported.  It is therefore 
compliant with the SCM Agreement, specifically through footnote 1 to the SCM Agreement and Item (i) of Annex I to the SCM Agreement.  If the goods are not exported as required, they become 
liable to duty.   
 The Export Finance and Insurance Corporation (EFIC) is Australia's export cred it agency (ECA).  It 
assists Australian businesses in their overseas activities by providing insurance and financial services. 
 As Australia's official ECA, EFIC is similar in  operation to bodies operated by many governments 
around the world.  The operations of ECAs are specifically identified in Annex I to the SCM 
Agreement (items j and k), which, inter alia , provides that the operations of ECAs must involve 
premium rates which are adequate to cover l ong-term operating costs and losses, and that the 
operations of ECAs are not prohibited so long as they are in conformity with an international 
understanding on official export credits.   
 
As noted in the Secretariat's report (page 63, para  88) EFIC, through the Australian Government, is a 
party to the OECD Arrangement on Guidelines fo r Officially Supported Export Credits (the 
Arrangement).   The Arrangement establishes mini mum lending rates and maximum repayment terms.  
The amount of export finance EFIC will consider for a contract reflects the value of the Australian 
content in that contract plus any foreign content that EFIC also deems eligible for finance.  The 
Australian content includes labour, goods and materi als; services; the exporter’s profits, overheads 
and financing costs; and insurance, shipping and ai r freight costs from Australia.  EFIC’s activities are 
compliant with the TRIMs Agreement. 
 
III(2)(i) 
 Page 33, para 9:   There is a reference to an internal Ti me Release Study (TRS) of Australia as per 
which  in 2007, the arrival to clearance times for sea and air cargo were 1.8 and 0.3 days, respectively. However the World Bank Report on Doing Business 2011 indicates that in Australia import activity takes 6 days out of which document preparation tak es 3 days, customs clearance and technical control 
takes 1 day and port and terminal handling takes 2 days. 
 
Question 6:
  Does Australia’s domestic TRS indicate simila r time lines? If not, India will be interested 
in knowing as to on what parameters its own studi es vary significantly from the published World Bank 
Report.  
 
Answer  
 
The TRS and the World Bank's 'Ease of Doing Bu siness' report (Trading Across Borders segment) 
while both broadly directed at assessing trade fa cilitation performance, do so differently. As a 
consequence the outcomes are different.   WT/TPR/M/244/Add.1 
 Page 25 
 
 
    
In 'Ease of Doing Business-Trading Across Bo rders' (TAB) the World Bank takes a broad 
approach to produce international rankings designed to enable comparisons on various aspects of the 
import process in order to stimulate reform activity. TAB measures the interval from arrival to receipt 
at owner's premises. It does so by aggregating th e average times for 4 different import procedures, 
applying a minimum of 1 day to each. It does not  account for simultaneous processing. The study is 
conducted as a survey of a relatively small number of  industry respondents (generally less than 10) in 
each country.   TRS is conducted by individual countries in accord ance with guidelines issued by the World Customs 
Organization (the only intergovernme ntal organization with competence in customs matters) as a tool 
devised to help improve a nation's trade facilita tion by measuring the performance of the border 
authorities and identifying opportunities for further streamlining. The TRS method is designed to accommodate the circumstances of individual co untries. It measures the average time between the 
arrival of goods at the port of discharge and thei r clearance by the border agencies. TRS is conducted 
as an evidence-backed statistical study with resu lts calculated using actual times of arrival and 
clearance from a large sample of consignments.   The two methods should be seen as complementary a pproaches to trade facilitati on reform rather than 
as directly comparable. The World Bank's survey is  broad and international, the TRS since it is 
targeted at the performance of a country's border ag encies is more focussed and is a tool for national 
reform (is not aimed at supporting international comparisons). 
 
III(2)(ii) 
 
Page 41, para 24:  it is mentioned that a local manufacturer  may object to the granting of a Tariff 
Concession Order (TCO) and may request revocation of  an existing TCO and that a total of 431 TCOs 
were revoked between January 2007 and June 2 010 upon proof that the Australian-made goods 
concerned could be substit uted for imported goods. 
 
Question 7
:  India requests Australia to clarify whether an appeal mechanism is provided under the 
scheme for the potential aggrieved exporters to fil e an appeal against revocation of a TCO? If so, 
have there been cases of successful appeal against revocation of TCOs?  
Answer
 
 
There are internal and external (Administrative Appeal Tribunal) merit review processes that allow 
those affected by the revocation of a TCO to app eal against the revocation.  If Customs and Border 
Protection revokes a TCO, then an aggrieved person may seek external review of the decision by the 
Administrative Appeals Tribunal.  From the AAT, either the aforementioned person or Customs and 
Border Protection can appeal to the Federal Cour t if they can show that the AAT decision was 
incorrect on a point of law.    
Our records indicate that since 2007-08 there have been 10 successful appeals against revocations in 
the Administrative Appeals Tribunal.       In the same period, we have no record of appeal s against revocations bei ng heard by the Federal 
Court. 
 
II(8) F
OREIGN INVESTMENT REGIME  
 
Page 42, para 30:  It is mentioned that Australian Custom s valuation legislation allows for the 
inclusion of foreign inland freight and inland insu rance in the dutiable value of goods and that  the WT/TPR/M/244/Add.1 
Page 26  
 
 Australian  authorities consider that this practi ce is permitted under the WTO Agreement. In this 
regard, it is relevant to recall th at under Article 8 of the Agreement on Customs Valuation, only such 
cost of transport of imported goods is to be include d in the assessable value which constitutes cost of 
transport of the imported goods to the port or place of importation. Similarly insurance charges for international transport of goods ar e includible in the assessable value. 
 Question 8:
  India therefore seeks further clarification from  Australia as to under what provisions of 
the Agreement on Customs Valuation,  it justifies its measure?  
 
Answer  
 
We agree with India that Article 8 of the WTO Valuation Agreement allows the cost of transport of the imported goods to the port or place of importa tion and insurance costs to be included in the 
Customs value of imported goods.  C onsistent with Article 8, Aust ralian legislation also allows 
foreign inland freight and insurance to be included in customs value of goods.  
 
III(2)(vi)  
 
Page 46, para 37:  WTO Secretariat Report indicates that Australia has no specific legislation for the 
imposition of safeguard measures. The Productivity Co mmission remains the investigating authority. 
Following consideration by the Australian Govern ment, the Treasurer may refer matters to the 
Productivity Commission for inquiry. 
 
Question 9
:  Australia may be pleased to explain the specific reasons for not having specific 
legislation for the safeguards purposes even though  they are having the agencies to look into the 
matters? 
 
Answer  
 
Australia’s safeguards investigation procedur es are contained in the Commonwealth Gazette 
No S 297 of 25 June 1998 (as notified to the WTO in document G/SG/N/1/AUS/2 of 2 July 1998) and 
amended by Commonwealth Gazette  No GN39 of 5 October 2005 (as notified to the WTO in 
document G/SG/N/1/AUS/2/Suppl. 1 of 16 December 2005).  
 
III(2)(vi) 
 
Page 47,48,49, para 39-36:  There are seen to be a number of bodies which determine standards in 
Australia; e.g. Council of Australian Government (COAG)- which adopted a best practice regulation 
guide in 2007 designed to promote efficient re gulation; the Australian Competition and Consumer 
Commission (ACCC)- as the agency responsible fo r product safety policy development for Australia; 
the National Association of Testing Authorities (NATA), and the Joint Accreditation system of 
Australia and New Zealand (JAS-ANZ)- the two main accreditation bodies; and the National Measurement Institute (NMI), the physical, chem ical, and biological measurement and metrology 
government body and Standards Australia Internati onal (SAI) or Standards Australia, the top non-
governmental standards writing body, is responsible for the formulation and publication of voluntary 
standards. These standards are applicable for the imported and local products  through the 160 notified 
measures by Australia from January 1995 to December 2010.   WT/TPR/M/244/Add.1 
 Page 27 
 
 
  Question 10 :  Australia is requested to respond how these multiple bodies facilitate trade? 
 
Answer  
 
There are several government and non-government bodies that provide Australia’s measurement, 
standards and conformance infrastructure.  Their roles are interdependent and complementary.  
 Standards rely on units of measurement to expr ess specifications and are needed in setting the 
specifications for measuring equipment.  Confor mance methodologies rely on measurement and the 
test methods written into standards.  Each comp onent has a key role to play in ensuring that 
Australia’s measurement, standards and conformance infrastructure delivers at a high level of quality 
and accuracy, and is consistently accepted with confidence by the community, Australian business 
and international markets.  A number of bodies co mprise Australia’s standards and conformance 
infrastructure.  These are:   
• Standards Australia; 
• Joint Accreditation System of Australia and New Zealand (JAS-ANZ); 
• National Association of Testing Authorities; 
• National Measurement Institute. 
 Standards Australia is recognised by the Federal Government as the nation’s peak standards writing 
body.  It develops voluntary standards for use in Australia which meet the national need for 
contemporary, internationally aligned standards and related services that enhance the nation’s 
economic efficiency and internationa l competitiveness.  It is Australia' s representative in international 
and regional fora such as the ISO, IEC and PASC.  In  preference to developing their own standards or 
regulations, many regulators mandate  standards developed by Standards Australia, and a large number 
of Australian Standards, written originally as volunt ary standards, are called up into legislation.  
 Joint Accreditation System of Australia and New Zealand (JAS-ANZ) provides accreditation of certification bodies, inspection bodies, and auditor training course providers.  Accreditation under this 
program is a measure of the competence and impartiality of certification bodies.  A full list of 
accredited certification bodies can be found on the JAS-ANZ website: www.jas-anz.com.au under 
JAS-ANZ register.   National Association of Testing Authorities (NATA) is recognised by the Federal Government as the 
national authority for the accreditation of laboratories conducting tests and measurements in all 
technical fields and as a peak authority for the accreditation of inspection bodies.  Both NATA and 
JAS-ANZ are members of international and regiona l fora and are parties to multilateral Mutual 
Recognition Agreements which provide wide intern ational acceptance of certificates issued by bodies 
NATA and JAS-ANZ have accredited.  
The National Measurement Institute (NMI) is respons ible for establishing and maintaining Australia’s 
units and standards of measurement and for coordi nating Australia’s national measurement system.  
As well as having responsibilities in areas including ph ysical, chemical and biological measurement, 
the NMI has responsibility in Australia for lega l metrology, including the pattern approval of 
measuring instruments and operating th e national trade measurement system. 
 III(2)(vii) 
 
Page 51, para 51:  " Australia being a leading exporter of agricultural commodities and agri-food 
products has maintained a strict sanitary and phytosanitary (SPS) regime, which the authorities 
consider proportionate and matching their appropriate level of protec tion."  However, this position is WT/TPR/M/244/Add.1 
Page 28  
 
 contradicted by the available facts in terms of  SPS measures notified by Australia for the period 
January 1995 to December 2010 (294  SPS measures inclusive of addition/revision of 37 numbers) 
which are seen to be dominated by  national or regional standards over the international standards.  In 
terms of numbers these add up to 146 national a nd 111 international standards respectively. 
 Question 11
:  Australia is requested to comment on what  measures are being taken for checking this 
growing trend of regionalisation in standards whic h can easily lead to pr otectionism of domestic 
industries. 
 
Answer   
 
Australia does maintain a strict sanitary and phytosanitary regime, which is proportionate to 
Australia’s appropriate level of protection.  Ou r 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. Australia bases its national standards as closely as possible 
to those of the World Organisation for Animal He alth (OIE), the International Plant Protection 
Convention (IPPC) and the Codex Alimentarius Co mmission.  However, in some cases, relevant 
standards do not exist or the international standard s do not deliver the level of protection required by 
Australia to maintain its appr opriate level of protection. 
 III(2)(vii)  
Page 52, para 54:   WTO Secretariat Report indicates that since 2009, Australia's biosecurity system 
has been undergoing institutional reforms. Its revi ew recognized that zero-risk is undesired and 
unattainable and suggested a shift from the largel y negative-defensive quarantine to the pro-active 
biosecurity. Many of the review's recommendati ons are dependent on the commencement of new 
biosecurity legislation. Australia had indicated that a draft of this legislation is getting prepared in this 
regard.  
Question 12
:  Australia is requested to specify when th ey will be realizing the draft and what will be 
the nature and scope of the proposed legislation? 
 
Answer  
 
Development of the new legislation is well underw ay following some drafting delays. An exposure 
draft of the new biosecurity legislation will be re leased for public comment prior to introduction and 
will be accompanied by a draft Regulation Impact Statement. The Biosecurity Bill will be introduced 
into Parliament following this exposure draft peri od.  A 12 month delay in commencement will then 
be pursued following Royal Assent to allow systems a nd industry to adapt. Th e exact timing of these 
steps will depend on drafting progress and further updat es will be provided closer to the release of an 
exposure draft.  
The objectives of the new legislation are to:  
• achieve greater national consistency by dr awing on a broader constitutional power base 
• enable broader and more flexible co-regulator y arrangements to increase ease of compliance 
for industry 
• modernise offences and penalties to su pport an effective compliance scheme 
• implement revised governance arrangements to further promote a tran sparent, scientific 
approach to biosecurity 
• provide for a simpler and more user friendly legislative framework for both industry and the 
regulator  WT/TPR/M/244/Add.1 
 Page 29 
 
 
   
III(2)(viii) 
 
Page 55, para 62:  Government procurement market estimated at 2.6% of GDP 
 Question 13
:  Australia may please stat e the year–wise value of go vernment procurement from 
foreign sources during the period since its previous review.  
 
Answer   
 The Australian Government (Central) is unable to provide a figure on the value of procurement from 
foreign sources as it does not collect, report or maintain  data relating to the origin of the supplier, or 
the goods or services being procured.  This reflect s the Australian Government’s open procurement 
framework, in which the nationality of suppliers is generally not assessed.   
 III(3)(iv)  
Page 60-61, para 80:  Export Assistance-Export Market Development Grant 
 
Question 14
:  Australia may please explain why in its view financial support under EMDG should not 
be considered a prohib ited export subsidy. 
 
Answer   
 
The Export Market Development Gran ts (EMDG) Scheme assists with  the development of an export 
culture and creating greater inno vation within Australian business.   It is an open access scheme 
governed by non-discretionary legislation that reim burses part of the expenses incurred by a business 
in promoting market development for goods, services,  intellectual property or know how.  Any type 
of firm from any industry may apply.  Funding is not related to export performance. Members may find detailed information on the EM DG on Austrade’s website, at 
http://www.austrade.gov.au/exportgrants.    III(4)(iii)  
Page 70-74, para 100-110:  WTO Secretariat Report indicates that Australia had passed its 
Competition laws amendment recently. It  had indicated that by doing so  it is trying to promote fair 
and free competition in its domestic market. 
 
Question 15
: Australia may please clarify that while en forcing the regime what are principle they 
follow especially in the context of per se rule and rule of reason? 
 
Answer   
 Competition and consumer protection la ws are contained within the (now) Competition and 
Consumer Act 2010  (CCA), formerly the Trade Practices Act 1974 .  The core competition 
prohibitions of the CCA are either per se  contraventions or subject to a purpose or effect of 
substantially lessening competition test.  
Decisions made by the Australian Parliament around th e evidentiary burden attached to a particular 
contravention are made with reference to the degr ee of harm held to be caused by the relevant 
conduct.  These decisions are made on a case by case basis, and the reasons for these decisions are 
made public in the explanatory memoranda  which accompany amending legislation. 
 WT/TPR/M/244/Add.1 
Page 30  
 
 III(4)(iv) 
 
Page 76, para 114:   WTO Secretariat Report had indicated th at Australia maintain good number of 
Government trading enterprises (GTEs) remain, of ten as monopolies, engaged in the production of 
goods and services; they are required to substantially or fully cover their costs. GTEs established as 
companies are subject to the Corporations Act. The Government may impose price controls on GTEs 
providing goods and services in a monopolistic market, or specify other targets such as community service obligations (CSOs).  
Question 16:
  Australia may share information how its stand on GTE is compatible to its WTO 
obligations?  
Answer
 
 
Australia considers that its approach to government  trading enterprises is fully consistent with its 
WTO obligations.  Background information on the performance of GTEs can be accessed from the 
following website: http://www.pc.gov.au/__da ta/assets/pdf_file/0003/82227/gte-2006-07.pdf 
 
III(4)(v) 
 
Page 77, para 116:   WTO Secretariat Report indicates that Au stralia is participating in negotiations 
for the establishment of an Anti-Counterfeiting Trade Agreement (ACTA) setting international 
standards on IPR enforcement.  Australia is also no w the party to 17 out of 23 WIPO administered 
treaty on IPRs.  
Question 17:
  Can Australia please clarify how far its participation in ACTA is compatible with 
TRIPS obligations? 
 Answer
 
 
ACTA contains measures which appropriately bu ild on and clarify TRIPS minimum standards.  
Article 1 of TRIPS allows parties to implement in their law more extensive protection than is required 
by minimum standards set out in TRIPS.  ACTA measures are TRIPS consistent.  Similarly, 
Australia’s laws are TRIPS consistent, in some in stances building upon TRIPS minimum standards.   
 
 
CHINA  
 
(1st set)  
 
REPORT BY THE SECRETARIAT 
 
I(1)i  
Paragraph 1 on Page 1 notes that "Although Australia is still considered one of the most competitive 
economies in the world ，it has experienced a marked decline in multi-factor productivity (MFP) 
growth, which is a key determinant of Austra lian enterprises' international competitiveness and 
domestic living standards in the longer term. This sl owdown in MFP growth is due mainly to special 
developments in three sectors:  agriculture; mining;  and electricity, gas, and water."  Paragraph 30 on 
Page 94 notes that "the (mining) sector's averag e MFP growth rate dropped to minus 4.8% (2003/04-
2007/08), the lowest of all sectors of the economy."   WT/TPR/M/244/Add.1 
 Page 31 
 
 
  Question  
 (1) The decline of MFP seems to be one of the major challenges faced by Australia. Could the 
Australian Delegation please provide its evaluation of the impact of the decline on the economy?  
 
Answer
 
 
As the WTO has observed, multifactor productivity (MFP) growth, which measures the amount of output – in real value added terms – obtained from a combined unit of capital and labour, turned negative over the 2003-04 to 2007-08 productivity growth cycle. In the last two years since the end of 
the cycle, MFP has declined furt her at an average annual rate of 0.98% per year, on a 12 selected 
industry basis.  An examination of market sector MFP by industry contribution indicates MFP declines in the mining, 
agriculture and electricity, gas and water indus tries account for up to 80%, dependent upon the 
measure used, of the total decline in productivity.   
 Much of this decline can be attributed to one-o ff and measurement issues. In mining, declining 
resource quality and large capital investment has not yet fully translated into increased output, 
Increased capital investment and reduced rainfall fro m sustained drought through much of the 2000s 
has affected MFP in electricity, gas, water and waste water sector, while agriculture was heavily 
impacted by drought. 
 Despite the decline in MFP, Australia’s income – in the form of GDP per capita – has continued to 
rise over the period, as Australia benefited from the s ubstantial boost to the terms of trade from rising 
commodity prices of which Australia has abundant supply. 
 
Moreover, falling productivity growth in the mining sector has occurred as a direct result of the recent terms of trade boom. The rapid shift in relative prices in the Australian economy has seen strong 
increases in mining investment and employment in the mining and construc tion industries. In the 
seven years to 2007-08, real annual mining investment increased five-fold and mining and construction employment rose by around 50%. 
 
The growth in inputs in the mining sector has not yet been fully reflected in increased output volumes. 
In part, this is likely to reflect lags between th e time when investments are made and when capital 
comes on stream. In previous booms in the late 1970s and early 1980s, it took around five years for the increase in mining investment to translate into higher growth in output. 
 
Resource depletion has also had a significant adve rse effect on measured long-term mining MFP in 
recent years. Higher prices for mineral resources have made mining resources with lower mineral yields economically viable. While higher prices boos t income and profitability, measured productivity 
falls as changes in the quality of an input (for example, lower ore quality) are not recognized.   
 
The combined effects of the commodity price boom  and depletion of oil and gas reserves on mining 
productivity have subtracted around 0.3 percentage points per year from market sector MFP over the 
five years to 2007-08.   
Question
 
 
(2) Is there any measure or plan taken by the Austra lian Government to meet this challenge? If so, 
please elaborate, especially on measures in the mining sector.   WT/TPR/M/244/Add.1 
Page 32  
 
 Answer  
 
The Australian Government is implementing a broad,  multi-faceted productivity agenda targeting the 
short, medium and long-term drivers of productiv ity growth through the following initiatives: 
 
• Maintaining macroeconomic stability – including  low and stable inflation which provides 
certainty for firms and individuals thereby encouraging greater investment and innovation;  
 
• Ensuring that the economy is flexible and that  incentives exist to encourage our labour and 
capital resources to move to their highest va lue uses through reforms to the regulatory 
environment and competition; and  
• Well-targeted investments in skills, infrast ructure and innovation and reforms to early 
childhood development, secondary and tertiary education, skills and workforce development 
and preventive health.  
 As part of the Government’s initiatives to impr ove productivity in the mining sector, the government 
is making significant investments and reforms into improving the efficiency of ports, road and rail 
infrastructure, in order to increas e capacity and reduce bottlenecks.  
 
II(8) F
OREIGN INVESTMENT REGIME  
 
Paragraph 36 on Page 29 notes that "Under its  Foreign Acquisitions and Takeovers Act 1975, 
accompanying regulations, and foreign investment po licy, Australia maintained its screening process 
to ensure that foreign investment is not contrary  to the ‘national interest’;  foreign investment 
restrictions are maintained in certain sensitive sectors,  such as airports, banking, residential real estate, 
telecommunications, and transport (civil aviation and shipping), and possibly, more recently, natural 
resources. The screening processes, undertaken by the Foreign Investment Review Board (FIRB) 
affect only major investment applications, defi ned as any purchase by a foreign entity, and any 
associates, of more than 15% of an Australian comp any, or by several foreign entities of more than 
40% in aggregate. Investors must notify the Government of their proposal, prior to commencement, if 
it exceeds a set of monetary thresholds. Large fore ign investment projects ar e screened in accordance 
with a 'national interest' test, which is not define d under the Act; in effect, it is determined by the 
Government based on a range of factors, and is interpreted on a case-by-case basis. The authorities 
consider that Australia's mode 3 commitments under the GATS are not subject to the national interest 
test." 
 
Question  
 (1) Could the Delegation of Australia please clarify the definition of "national interest" and the process of the "national interest" test?  
 
Answer
 
 
Australia’s Foreign Investment Policy provides guidance on the operation of Australia’s foreign 
investment framework, including the application of the national interest test. 
 
Assessing the national interest allows the Govern ment to balance potential sensitivities against the 
benefits of foreign investment.  The Government reviews foreign investment proposal s against the national interest case-by-case.  We 
prefer this flexible approach to hard and fast rul es.  Rigid laws that prohibit a class of investments too  WT/TPR/M/244/Add.1 
 Page 33 
 
 
  often also stop valuable investments.  Australia’s  case by-case approach maximises investment flows 
while protecting Australia’s national interest.  Australia's Foreign Investment Policy (the Policy), wh ich was released in an ‘easy-to-read’ version in 
June 2010, provides guidance on what factors are typically considered in assessing whether a proposal 
is contrary to the national interest: 
• national security - the extent to which investme nts affect Australia’s ability to protect its 
strategic and security interests; 
• competition - whether a proposed investment may result in an investor gaining control over 
market pricing and production of a good or servi ce in Australia and the impact that it has on 
the make-up of the relevant global industry, pa rticularly where concentration could lead to 
distortions to competitive market outcomes; 
• other Australian Government policies (including tax) - investments must be consistent with 
the Government's objectives in relation to matter s such as environmental impact.  The impact 
of an investment on Australian tax revenues is also considered; 
• the impact on the economy and the community - th e Government considers the impact of any 
plans to restructure an Australian enterprise following an acquisition, the nature of the 
funding of the acquisition, the level of Austra lian participation in the enterprise remaining 
post-acquisition and the interests of employees, creditors and other stakeholders; 
o The Government considers the extent to whic h the investor will develop the project and 
ensure a fair return for the Australian people.  The investment should also be consistent 
with the Government’s aim of ensuring that Australia remains a reliable supplier to all 
customers in the future; and 
• the character of the investor - The Government  considers the extent to which the investor 
operates on a transparent commercial basis and is subject to adequate and transparent 
regulation and supervision. The Government also consid ers the corporate governance 
practices of foreign investors. 
 In the case of foreign government investors, the G overnments 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 Foreign Investment Review Board (FIRB) ex amines the more significant foreign investment 
applications and advises the Treasurer, on a case-by-case b asis, of potential national interest concerns.    
 The FIRB is supported by the Foreign Investment and Trade Policy Division (FITPD) of Markets 
Group within Treasury.  FITPD provides secretariat services to the FIRB and is responsible for day-
to-day administration of the FATA and the Policy.     FITPD generally discusses significant investments with  applicants before and during an investment 
proposal.  The FIRB is kept abreast of developmen ts through the executive members of the FIRB.  
 
Where the Treasurer considers that a proposed investment raises no national interest concerns, the 
applicant is advised as such.    If a proposal raises potential national interest concer ns, then FITPD would liaise with the applicant 
and provide the opportunity for comment.   
 
If concerns remain they may be addressed by unde rtakings from the applicant and/or conditions 
attaching to the approval of the proposal.    WT/TPR/M/244/Add.1 
Page 34  
 
 In rare instances, the concerns may not be able to  be addressed and the proposal may be blocked by 
the Treasurer.  The Government has not blocked a business application since 2001.  
Question
 
 
(2) Is there any formal or informal guideline fo r approving the applications of investments in the 
resource sector? If yes, please elaborate.    Answer
 
 All foreign investment proposals including investment  in the resource sector is subject to Australia’s 
foreign investment review framework, which is ma de up of the Foreign Ac quisitions and Takeovers 
Act 1975, the Foreign Acquisiti ons and Takeovers Regulations  1989 and Australia’s Foreign 
Investment Policy.  
The Treasurer has the power to block, or place special conditions on, those proposals that are 
determined to be contrary to th e national interest.  Australia’s foreign investment policy operates 
under the presumption that foreign investment proposals are generally in the national interest and should go ahead.    When considering foreign investment proposals, the considerations outlined in question one above are 
taken into account.  
 
(2
nd set) 
 
REPORT BY THE SECRETARIAT 
 
I. ECONOMIC ENVIRONMENT (3) M
AIN MACROECONOMIC POLICY DEVELOPMENTS  
(i) Monetary and exchange rate policy 
 
Question 1 :  How does Australia identify the authentic ity of foreign exchange receipts and payments 
under goods and service trade? Does bank or Government need to verify the proof documentation of 
those business contracts?  Question 2
:  How has Australia been responding to the speculative capital inflows? What are the 
countermeasures adopted and what are the effects? 
 Question 3
:  How does Australia understand the concept of Capital Account Convertibility, and how 
is it implemented?  Question 4
:  How does Australia identify and handle vi olations against regulations of foreign 
exchange by banks and enterprises?  
Answer to questions 1-4
 
 
Australia has no capital controls in place, so most  of these issues are not applicable.  Responding to 
speculative capital flows has not been a significant policy concern since the currency was floated and 
foreign exchange controls removed in December 1983.  The Australian economy is well able to 
absorb volatility in capital flows, due to factors such as a strong, well-regulated financial system, a 
floating exchange rate, which allo ws an independent monetary policy, strong public finances and 
flexible product and labour markets.  Importantly, currency risk is limited because offshore borrowing  WT/TPR/M/244/Add.1 
 Page 35 
 
 
  by Australian banks and other firms is largely denominated in, or hedged back into, Australian 
dollars.  
Question 5
:  How does Australia handle those behaviou rs harmful to Australian interests by those 
foreign institutions which have not established branches in Australia? 
 
Answer  
 
This question is unclear.  Australia is happy to pr ovide an answer if Chin a could specify what is 
meant by 'behaviours harmful to Australian inter est' and 'foreign institutions' i.e. in which sectors? 
 
(4) M AIN STRUCTURAL POLICY DEVELOPMENTS AND CHALLENGES  
 
Paragraph 16, page 11  Question 6
:  Are there any restrictions on foreign-invested companies employing staff without 
Australian nationality? If so, please elaborate. 
 
Answer  
 Australian and foreign invested companies both have  access to the same arrangements for sponsoring 
foreign staff under Australia's visa system.  
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(4) T
RADE LAWS AND REGULATIONS  
 Paragraph 12, page 20 
 "While provisions of legislation implementing certa in international treaties have been addressed by 
Australian courts, it is understood that, during th e period under review, those relating to the WTO 
Agreement have not been an issue in domestic court proceedings."  
 
Question 7
:  Could Australia please elaborate further on this issue? 
 
Answer  
 
Australia’s commitments under the WTO Agreemen t are largely implemented in domestic law 
through the enactment of statutes and regulations.  Over time, some provisions of those statutes and 
regulations have been the subject  of consideration and interpreta tion by Australian courts.  Under 
Australia’s common law system, courts are bound (within prescribed limits) to follow the legal 
principles found in prior decisions of superior courts .  As a result, decisions of Australian superior 
courts can also affect the development and applicatio n of those statutes and regulations in Australia.   
 Since preparing paragraph 12 of Australia's repor t for its 2011 Trade Policy Review, Australia has 
identified two domestic court decisions from th e period under review which address Australian 
legislation implementing WTO obligations.  These were both Federal Court decisions interpreting 
provisions of the Customs Act 1901 (Cth)  which implement, in part, Au stralia’s obligations under the 
Agreement on the Implementation of Article VI of  the General Agreement on Tariffs and Trade 1994 . 
 Paragraph 13, page 20:   "On 29 November 2008, COAG agreed to a National Partnership 
Agreement to Deliver a Seamless National Econom y for improving Australia's productivity by 
reducing the cost of and removing regulatory barrier s to doing business across jurisdictional borders.   
The agreement commits the Commonwealth to provide the states and territories with up to WT/TPR/M/244/Add.1 
Page 36  
 
 $A 550 million over five years to facilitate and reward  the delivery of 27 priority reforms.  There are 
also eight areas of competition reform with no re ward payments attached; reward payments are 
contingent upon meeting the key milestones set out in the agreement's implementation plan." 
 
Question 8 :  Could Australia please provide the text of National Partnership Agreement to Deliver a 
Seamless National Economy or the introducti on documents to the 27 priority reforms? 
 
Answer  
 
A copy of the National Partnership Agreement to Deliver a Seamless National Economy (SNE NP) 
can be accessed from the following website: 
http://www.federalfinancialrelations.gov.au/conten t/national_partnership_agreements/OT001/Seamles
s_National_Economy.pdf  A description of the 27 deregulation priorities a nd eight competition reforms under the SNE NP, and 
the other non- SNE NP reforms, can be found in  the implementation plans, which can be accessed 
from the following websites:  http://www.coag.gov.au/coag_meeting_outcomes/2011-02-13/docs/revised_np_sne_part_1_deregul ation_priorities_imp_plan.pdf 
http://www.coag.gov.au/coag_meeting_outcomes/2011-02-
13/docs/revised_np_sne_part_2_deregul ation_priorities_imp_plan.pdf 
http://www.coag.gov.au/coag_meeting_outcomes/2011-02-13/docs/revised_imp_plans_coag_deregul ation_reforms_outside_npa_sne.pdf 
 
(5) T
RADE POLICY OBJECTIVES  
 
Paragraph 16, page 21  "Despite trade openness and certain policy developmen ts, trade and trade-related policy instruments 
continue to be used to support the same activities in different ways (e.g. automotive, textiles, clothing 
and footwear, key infrastructure services), thus  distorting resource allocation in the economy." 
 
Question 9
:  Could Australia please further explain the main trade policy instruments used to support 
the development of industries (automotive, textiles, clothing and footwear), including background and legal basis of policy instruments, content and fo rms of these instruments, competent authorities, 
performance assessment, etc.  
Answer
 
 
Australia is unsure what the Secretariat means by the phrase "trade and trade-related policy 
instruments".  However, the support provided to Aust ralia's automotive and TCF sector is detailed in 
Australia's notification to the SCM Committee (G/SCM/N/186/AUS) and re lated questions and 
answers.  In addition, with resp ect to the automotive industry, on 1 January 2010 applied tariff rates 
on Passenger Motor Vehicles declined from 10% to 5%  and, with respect to the TCF industry,  on 1 
January 2010 tariffs on many textiles, clothing an d footwear items declined from 7.5 and 10% down 
to 5% while tariffs on certain made-up textile ite ms and clothing were reduced from 17.5 to 10%. 
  WT/TPR/M/244/Add.1 
 Page 37 
 
 
  (6) T RADE AGREEMENTS AND ARRANGEMENTS  
 
Paragraph 22, page 23  "Australia's second IAP peer revi ew, held in January 2007, noted,  inter alia,  steady progress in trade 
liberalization and facilitation;  in areas such as tariffs, non-tariff measures, services, and investment, 
Australia had implemented autonomous libera lization beyond its Uruguay Round commitments." 
 
Question 10
:  Could Australia please elaborate on the basis on which this conclusion is made? 
 
Answer  
 
The peer review of Australia's second IAP illust rates Australia has made significant progress in 
liberalising trade and investment across most sectors of the economy.  With the average applied tariff 
rate falling from 7.0% in 1996 to 3.5% in 2008, Au stralia’s applied tariffs are now among the lowest 
in APEC.  Twenty years of trade and investment  liberation and structural reform has delivered 
Australia a high performing and resilient economy.  
Question 11
: Australia is a member of WTO. Me anwhile it has signed several Free Trade 
Agreements. When trade disputes arise between Austra lia and other nations or regions which are also 
above-mentioned FTAs participants and WTO members,  how Australia deal with such disputes? 
 
Answer   
 
Our approach will depend on the Choice of Forum provi sions in the Dispute Settlement Chapter of the 
FTA in question. Also relevant would be the rela tionship, where specified in the text, between the 
FTA Chapter under which the dispute arises and the relevant WTO provision (ie how if at all the 
relevant WTO provisions are referenced in the Chapte r - quite often they are affirmed,  incorporated, 
one is expressed not to derogate from the othe r, or perhaps not referenced at all).   
 
(8) F OREIGN INVESTMENT REGIME  
 
Question 13 : The Foreign Investment Review Board of Australia maintains its screening process and 
restrictions to ensure that foreign investment is not contrary to the "national interest" in certain 
sectors such as banking, shipping transport, te lecommunications, natural resources(coal),but there is 
no clear definition of "national interest", standards of national security, competition and nature of 
investors ,so what improvements will Australia ma ke to further stabilize the investor’s expectation 
when their applications are being processed? 
 
Answer  
 
See response to question 2 in China’s first set of questions 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(vi) Contingency measures 
 
Question 14 : Under what circumstances does Australia ca lculate the normal value of products under 
investigation on the basis of third country price, regarding countries with market economy status? 
Please indicate related domestic legislation. 
 WT/TPR/M/244/Add.1 
Page 38  
 
 Answer  
 
Section 269TAC(2)(d) of the Customs Act 1901 (the Act) provides that if the Minister so directs, the normal value is the price paid or payable for like g oods sold in the ordinary course of trade in arms 
length transactions for exportation to  an appropriate third country. 
 
Where the conditions of s. 269TAC(1) of the Act  are not met, the Minister may determine a price by 
either a constructed value unde r s. 269TAC(2)(c) of the Act  or may direct that s. 269TAC(2)(d) of the 
Act applies and use prices for like goods exported to a third country.  Question 15
: Is the domestic legislation consistent with  Article 2.2 of WTO Anti-dumping Agreement? 
 
Answer  
 
Article 2.2 of the WTO Anti-dumping Agreement places the cost based method and third country 
export sales on an equal footing and Australia’s le gislation is consistent in this regard.   
 
Question 16 :  Does the aforementioned practice exist in  anti-dumping investigations against China by 
Australia? If so, please explain in detail. 
 
Answer  
 
Although the practice of determining a normal value by  using prices for like goods exported to a third 
country is rarely used, in the case of certain steel framed storage shelves in kit form exported from the 
PRC (measures imposed 3 October 2001), the nor mal value for the cooperating exporter was 
determined using the sales price to a third country. 
 
(viii) Government procurement  
Question 17
:  Could Australia please introduce in detail policies and measures in government 
procurement of information technology products an d services. Could Australia please also indicate 
the specific provisions concerning foreign companies  establishing branches or joint ventures with 
Australian firms and taking outsource contracts?  
Answer
 
 
Information on Australian Government ICT policies re levant to procurement is available online at:  
 
http://www.environment.gov.au/sustainabilit y/government/ictplan/index.html  
http://www.finance.gov.au/publications/finance-circulars/2006/03.html  http://www.innovation.gov.au/Industry/Informati onandCommunicationsTechnologies/Pages/Smalland
MediumEnterpriseparticipationprocurementpolicy.aspx  http://www.dsd.gov.au/infosec/index.htm. 
 
There are no procurement policy restrictions on foreign companies participating in procurement 
processes jointly with Australian fi rms or through local branches. 
 
Question 18
:  How does Australia ensure uniform admini stration of government procurement policies 
throughout the country? How does Australia guarantee the consistency of its government 
procurement policies, including those adopted by  local governments, with its WTO obligations?  
  WT/TPR/M/244/Add.1 
 Page 39 
 
 
  Answer  
 
The Australian Government does not seek to en sure uniform implementation of government 
procurement policies throughout the country. Pr ocurement by Australian Government (Central) 
entities is guided by the Commonwealth Proc urement Guidelines (CPGs). The Australian 
Government generally maintains a devolved resource management model in the distribution and use 
of government resources.  This model emphasises fl exibility and would only seek to enforce ‘uniform 
administration of policies’ in instances where th is would demonstrably add to efficiency and 
effectiveness in the achievement of Value for Money (for example through Coordinated 
Procurement).   (http://www.finance.gov.au /procurement/wog-procurement/index.html)  
 
At the sub-central (State and Territory) government level each jurisdiction maintains its own policies. 
Nevertheless, Commonwealth, State and Territory  government entities are bound by international 
government procurement obligations which Aust ralia has assumed through a number of FTA 
government procurement chapters. Australia ha s no WTO obligations relating to government 
procurement.  
 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(iv) Export assistance 
 Question 19
:  According to our knowledge, Export Mark et Development Grants (EMDG), operated 
by Austrade, is one of Australia’s major e xport assistance programmes. Could Australia please 
provide detailed information on th is programme as well as on othe r programmes of the same kind? 
Could Australia please also indicate its future policy directions in this respect?  Answer
 
 
The Export Market Development Gran ts (EMDG) Scheme assists with  the development of an export 
culture and creating greater inno vation within Australian business.   It is an open access scheme 
governed by non-discretionary legislation that reim burses part of the expenses incurred by a business 
in promoting market development for goods, services,  intellectual property or know how.  Any type 
of firm from any industry may apply.  Funding is  not related to export performance.  Members may 
find detailed information on the EM DG on Austrade’s website, at 
http://www.austrade.gov.au/exportgrants.  There ar e no other programmes similar to the EMDG. The 
Australian Government has no plans to alter this programme.  (4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(iii) Competition and consumer policy 
 
Question 20 :  According to the Report, Australian Competition & Consumer Commission (ACCC) has 
approved four industry self-discipline rules. Could Australia please explain in detail the legal basis, 
objective, principles and procedure for ACCC to appr ove industry self-discipline rules? Please also 
indicate the relations between A CCC and various industry associations. 
 
Answer  
 The Policy Framework for Codes of Conduct, published by the Government,  sets out the  principles of 
the codes of conduct policy framework, discusses th e place of prescribed and voluntary codes of 
conduct within the 'regulatory spectrum' and provid es guidance about the use and desirability of codes 
of conduct.  WT/TPR/M/244/Add.1 
Page 40  
 
 Prescribed industry codes of conduct  
 The four prescribed industry codes of conduct curre ntly in place (the Franchising Code, Oilcode, 
Horticulture Code and Unit Pricing Code) we re introduced by the Australian Government. 
 
Prescribed codes are binding on all members of the relevant industry, and a breach of a prescribed 
code is a breach of the Competition and Consum er Act 2010 (CCA) (the new name of the Trade 
Practices Act 1974).  The ACCC does not have the pow er to approve these codes.  Rather, the ACCC 
is responsible for administering prescribed codes—it does this by educating members of the relevant 
industries about their rights and obligations under th e codes, and by taking enforcement action where 
necessary to bring about compliance with the codes. 
 The Prescribed codes of conduct – Policy guidelines on making industry codes of conduct enforceable 
under the Trade Practices Act 1974, published by the Government, detail the circumstances in which a 
minister would propose a code for prescription.  Updated guidance has been prepared and will be 
published soon on the Treasury website, www.treasury.gov.au. 
 Voluntary industry codes of conduct
 
 Many industries decide to develop their own vol untary industry codes of conduct.  These codes are 
only binding on those industry members that choo se to become signatori es.  The ACCC does not 
administer these codes. 
 The Guidelines for developing effective voluntary in dustry codes of conduct, published by the ACCC, 
are designed to help industries improve voluntary compliance with the CCA.  
The relations between ACCC and various industry associations
 
 In terms of small businesses and franchisors/fra nchisees, the ACCC works closely with industry 
groups and small business associations to ensure that  they are aware of their rights and obligations 
under the CCA.  Question 21
: According to the Report, pursuant to ten Au stralian federal laws and seventy local laws, 
certain actions by over twenty industries includi ng some agricultural pr oduction and marketing, 
energy, finance, public services, and state-owned enterprises are exempt ed from Australian 
competition law. Could Australia please provide a br ief assessment of the impact of these exemptions 
on competition environment? Please also indicate  the attitude and opinion of competition authorities 
including ACCC towards these exemptions.  
Answer
 
 
Competition policy in Australia recognises that compe tition is a means, not an end.  Where policies 
are being proposed which contemplate Government in tervention in markets, consideration must be 
given to Clause 5 of the Competition Principles Agreement 1995 .  Relevantly it provides that, when 
intervening in markets, competition should not be  restricted unless it can be demonstrated that: 
 
• the benefits of the restriction to the co mmunity as a whole outweigh the costs, and  
• the objectives of the legislation can only be achieved by restricting competition.  
 At the Commonwealth level, the Regulatory Impact  Analysis process administered by the Office of 
Best Practice Regulation (OBPR) requires an analysis of the extent to which this principle has been  WT/TPR/M/244/Add.1 
 Page 41 
 
 
  met for regulations which restrict competition.  These assessments are publicly available on the 
OBPR’s website (http://www.finance.gov.au/obpr/about/).  
Question 22
:  Please describe in detail the prior repor ting system of exclusive dealing and collective 
bargaining, National Access Regime as well as the January 2011 amendment on creeping 
acquisitions.  
Answer
 
 
The Competition and Consumer Act 2010 (CCA) provides for a system of notification for certain 
conduct considered to be anti-competitive.  The sy stem allows businesses to notify the ACCC of the 
conduct, with immunity from prosecution being au tomatically granted after a short period of time 
unless the ACCC determines that it is not to the public benefit.  Further detail on the operation of the notification system can be found in the ACCC’s public guides to 
notification (available at:  http://www. accc.gov.au/content/index.phtml/itemId/815222). 
 The National Access Regime is contained in Part IIIA of the CCA.  It provides a mechanism for 
seeking access to significant monopoly infrastructur e, where access will promote competition in 
downstream or upstream markets.  Part IIIA wa s amended in 2010 to streamline administrative 
processes and improve the timeliness of decision maki ng.  Further information about the amendments 
is available through the Australian Pa rliament’s website (www.aph.gov.au). 
 Proposed amendments to the Competition and Co nsumer Act 2010 (CCA) relating to creeping 
acquisitions remained before Parliament at the time of its prorogation for the 2010 election, and 
therefore lapsed. 
 
Question 23
:  According to the Report, ACCC is respons ible for price supervision. Please describe 
Australia’s price supervision system, includi ng the applicability, scope, procedure and legal 
consequences of three price supervision mode, i.e. price inquiries, price notification and price 
monitoring; differences between formal and informal  price supervision and the relation between price 
supervision and competition enforcement. 
 
Answer  
 
The Competition and Consumer Act 2010 (CCA) provid es for prices surveillance to be conducted by 
the ACCC.  Prices surveillance is to be applied to markets having regard to the object clause of Part 
VIIA, namely that prices surveillance be applied onl y in those markets where, in the view of the 
Minister, competitive pressures are not sufficient to achieve efficient prices and protect consumers. 
 Further detail on the prices surveillance re gime can be found at http://www.accc.gov.au/ 
content/index.phtml/itemId/788560.  IV. TRADE POLICIES BY SECTOR (2) A
GRICULTURE , LIVESTOCK , FORESTRY , AND FISHERIES  
 
Question 24 :  According to the Report, Australia is a major agricultural product exporter and that 
agricultural production is export-oriented, and envi ronmental cost is a major factor affecting 
Australian agricultural production. Could Australia please indicate what measures are adopted by 
Australia to guarantee harmony between agricultura l export interests and environmental protection, 
especially in terms of reduction of environm ental costs and ensure sustainable development of 
agriculture in the long run? 
 WT/TPR/M/244/Add.1 
Page 42  
 
 Answer  
 
The Australian Government’s aim is to protect ar eas of high environmental value, while facilitating 
the ecologically sustainable development of natu ral resources. The Australian Government uses a 
range of agri-environmental policy measures, in c ooperation with states and territories, to achieve 
these environmental and sustainable agriculture objectives. 
 The Australian Government utilises national environm ental law to protect environmental matters of 
national significance. National frameworks guide prot ection and sustainable use of natural resources 
through a number of policy directives, such as Australia’s Biodiversity Strategy 2010-2030  and 
Australia’s Native Vegetation Framework . Through the Caring for our Country  initiative, assistance 
is available to protect biodiversity and nationa l icons through on-ground works and stewardship 
payments; and to build the capacity of farmers to  adopt sustainable agricultural practices through 
supporting extension activities, information dissemi nation, and actions to demonstrate and pilot 
innovative practices on-ground. 
 
Question 25
:  There is "water" between Australia's  applied tariff rates and bound rates for 
agricultural products while in some  developing countries these two ra tes are basically the same. As a 
major agricultural product exporter, does Australia  have any plan to reduce or eliminate this 
"water"? If so, could Australia please provide a schedule? 
 
Answer  
 
The gap between Australia’s average bound MFN tari ff rates and average applied MFN rates reflects 
the significant unilateral tariff reductions which Au stralia has undertaken in recent decades. These 
unilateral tariff reforms have been a central te net of trade policy in recent decades, driving 
productivity and competitiveness across the economy. In  contrast, some of Australia’s major trading 
partners – particularly in relation to agricultural imports – have lowered and raised rates depending on 
changes in market prices.  Australia’s latest scheduled tariff reduction occu rred on 1 January 2010, and the next scheduled 
reduction will occur on 1 January 2015. As of this date, Australia will apply no tariffs at an ad 
valorem value above 5% with the exception of 13 ta riff lines subject to specific duties. Australia is 
working to conclude the Doha Round which will si gnificantly reduce bound tariff levels and address 
the gap between bound and applied rates.    
(3) M
INING AND ENERGY  
 
Question 26 :  Is there any policy change concerning the limitation on export or production capacity 
of iron ore in response to the pressure of inflation? 
 
Answer  
 The Australian Government does not limit, or place an y controls on, exports or production capacity of 
iron ore.  
Question 27
:  Could Australia please give detailed info rmation concerning its latest price support 
programme on electricity from renewable energy, as  well as estimates of its impact on trade in 
renewable energy?    WT/TPR/M/244/Add.1 
 Page 43 
 
 
  Answer  
 
The Australian Government has introduced a national Renewable Energy Target (RET) of 
45,000 GWh by 2020.  Together with 15,000GWh of  existing hydro-electric generation, this will 
equate to 60,000 GWh or 20% of Australia’s pr ojected electricity cons umption in 2020.  The 
increased targets began on 1 July 2010 , and the scheme will run until 2030. 
 The RET is a mandatory, market based mechanism that uses tradable certificates to encourage 
investment in least-cost renewable technologies.  Competition is used to drive efficient and innovative outcomes. The RET is expected to drive around $20 billion in investment in renewable energy 
projects. 
 On 1 January 2011 the RET was divided into two parts – the Small-scale Renewable Energy Scheme 
(SRES) and the Large-scale Renewable Energy Target (LRET).    
The LRET will deliver the vast majority of the 2 020 target (approximately 41,000 GWh) and will 
provide investment certainty for large scale renewable energy projects.    The SRES will provide a fixed subsidy of $40 per re newable energy certificate (MWh) to small scale 
technologies, such as solar panels and water heaters.    Question 28
:  Could Australia please give detailed inform ation concerning its latest developments on 
legislation concerning renewable energy, as well as estimates of its impact on trade in renewable 
energy? 
 
Answer  
 
Australia’s primary legislation c oncerning renewable energy is the Renewable Energy (Electricity) 
Act 2000, which supports the Renewable Energy  Target scheme.  Changes to implement 
enhancements to the RET scheme (discussed above ) was passed by the Commonwealth Parliament on 
24 June 2010.  
Australia has also introduced the Australian Cent re for Renewable Energy (ACRE) Act 2010, which 
sets out the scope and governance arrangement for th e ACRE Board.  ACRE's objective is to promote 
the development, commercialisation and deployment of renewable energy and enabling technologies 
and to improve their competitiveness in Australia. AC RE will become the Government's central point 
of contact for Australian Government support for renewable energy and enabling technologies. 
 
The ACRE Board provides advice to the Minister in relation to renewable energy technologies and assesses renewable energy technol ogy projects and measures. 
 
Question 29
:  Could Australia please indicate its plan on the pricing mechanism of carbon emission? 
How does Australia prevent "carbon pricing" from  imposing unnecessary obsta cles to international 
trade?  
Answer
 
 
The Government is currently developing its carbon price policy and established a Multi-Party Climate 
Change Committee to explore options for the intro duction of a carbon price and help build consensus 
on how Australia will tackle climate change.  On 24 February 2011, the Prime Minister, the H on Julia Gillard MP, outlined a proposed framework 
for implementing a carbon price in Australia. This two stage plan for a carbon price mechanism will WT/TPR/M/244/Add.1 
Page 44  
 
 start with a fixed price emissions trading scheme for three to five years before transitioning to a fully 
flexible cap-and-trade emissions trading scheme.  The Government proposes that the carbon price 
commences on 1 July 2012, subject to the Govern ment’s ability to negotiate agreement with a 
majority in both houses of Parliament and pass legislation this year.   (4) M
ANUFACTURING  
(i) Automotive 
 
Question 30 : According the latest legislation of Aust ralia, motor vehicles with market authorization 
after 1 November 2011 must be installed with "Elect ric Stability Control (ESC), while motor vehicles 
with market authorization before 2011 must be in stalled with ESC before 1 November 2013. Most 
Chinese motor vehicles are not insta lled with ESC. Could Australia please provide rationale of this 
legislation? How does Australia justify its c onsistency with Articles 2.1 and 2.2 of the TBT 
Agreement? Can Australia please post pone the enforcement of this legislation so as to provide foreign 
manufacturers with a longer period of adaptation?  
 
Answer  
 
The national legislation of Australia (incorpora ting the Australian Design Rules – ADRs) is in 
accordance with Articles 2.1 and 2.2 of the TBT Ag reement. It has been applied to new vehicles 
supplied to the Australian market, regardless of coun try of origin and has been the result of a full 
consultation process publicised both nationally and through the WTO consultation arrangements in 
November 2008.  There were no submissions made  representing Chinese motor vehicle manufacturers 
at that time.  The legislation adopts the requi rements of Global Technical Regulation (GTR) 8 as 
agreed by the UNECE WP29 under the UNECE 1998 Agreement in June 2008 and also the 
implementation timing of the corresponding intern ational standards UNEC E R 13 and R 13H under 
the UNECE 1958 Agreement.  China is a member of UNECE WP29 and while it is not a signatory of the 1958 agreement, it is a signatory of the 1998 agreement, and was involved in WP29 deliberations on Electronic Stability Control (ESC).    
(ii) Textiles, clothing and footwear 
 
Question 31
:  The gap between Australia’s bound rate and applied rate amounts to 55 percentage 
points. Is there any plan to reduce the bound rates? 
 
Answer  
 
The gap between Australia’s average bound MFN tari ff rates and average applied MFN rates reflects 
the significant unilateral tariff reductions which Aust ralia has undertaken in recent decades. Far from 
providing an environment of unpredictability and uncerta inty for trade operators, Australia has in fact 
provided an extended period of certainty for trader s by enshrining a series of scheduled applied tariff 
reductions across automotive and textile, clothi ng and footwear products in legislation. 
 Australia’s last scheduled tariff reduction occu rred on 1 January 2010, and the next scheduled 
reduction will occur on 1 January 2015.  As of this  date, Australia will apply no tariffs at an ad 
valorem value above 5% with the exception of 13 ta riff lines subject to specific duties.  Australia has 
supported an outcome in the Doha Round for indus trial goods based on a Swiss formula, which will 
significantly reduce bound rates and address th e gap between bound and applied rates. 
  WT/TPR/M/244/Add.1 
 Page 45 
 
 
  (5) S ERVICES  
(vi) Communications  
 
Paragraph 80, page 115. 
 
"Australia's Future Fund, which provides for s uperannuation and pensions for Australia's civil 
servants, reduced its share of Telstra from 17%  to 10.9% in August 2009, and to 10% in 
October 2010;  foreign equity limits in Telstra ar e still capped at 35% and up to 5% individually." 
 Question 32
:  Is there any plan to loosen these foreign equity limits? 
 
Answer  
 
Australia’s Future Fund further reduced its share of Telstra to less than 5% in March 2011.  There are 
no plans to review Telstra’s foreign ow nership restrictions at this time. 
 
Paragraph 84, page 117.  "As the broadband sector is dominated by Telstra, in April 2009,  the Australian Government 
announced the establishment of a company to build a national broadband networ k (NBN), to operate 
on a non-discriminatory wholesale-only basis.  The authorities intend to introdu ce legislation ensuring 
full government ownership of the NBN during the network roll-out process and that once the NBN is 
built and fully operational, any priv atization would be subject to th e approval of the Parliament." 
 
Question 33
:  Could Australia please indicate the la test development of establishment of this 
company? Are foreign investment allowed in this co mpany? If so, what are the criteria requirements? 
 
Answer  
 
On 28 March 2011, the Australian Parliament passed  legislation which, amongst other things, governs 
NBN Co Limited’s privatisation arrangements.  
 
Part 3, Division 2 of the National Broadband Network Companies Act 2011  (NBN Companies Act) 
contains provisions relating to Commonwealth ow nership and control of NBN Co Limited. The 
legislation provides for public reviews by the Productivity Commission and a Parliamentary Joint 
Committee, prior to any sale, to assess the impact that sale of th e NBN may have on regulatory, 
budgetary, competition and consumer matters. 
 Five requirements must be met before the Comm onwealth can sell any of its equity in NBN Co 
Limited:  
1. the Communications Minister must declare that the NBN is built and fully operational; 
2. the Productivity Commission must conduct an inqu iry into regulatory, budgetary, consumer 
and competition matters relating to sale of the NBN, and table its report;  
3. a Parliamentary Joint Committee on the Ownership  of NBN Co Limited must consider the 
findings of that report;  
4. the Finance Minister must declare that conditi ons are suitable for an NBN Co Limited sale 
scheme; and 
5. an instrument stating conditions are suitable fo r an NBN Co Limited sale scheme must be 
tabled in both Houses of Par liament and not be disallowed. 
 In its review, the Productivity Commission will have regard to future owners hip and control of NBN 
Co Limited.  WT/TPR/M/244/Add.1 
Page 46  
 
  
Until those five requirements have been comp lied with, NBN will remain 100% owned by the 
Australian Government.   Further, if privatisation of NBN Co is ultimat ely approved, section 95 of the NBN Companies Act 
requires that NBN Co Limited be taken, for the pur poses of the laws of the Commonwealth or a State 
or Territory, not to be a public authority. Con sequently, foreign equity participation in NBN 
Co Limited will be subject to the Foreign Acquis itions and Takeovers Act 1975, which, for purchases 
of more than 15% of NBN Co Limited by a foreign person, would include a consideration by the Foreign Investment Review Board of national interest matters.  
 
Postal services  
 
Question 34
:  Please indicate whether foreign investo rs are allowed in postal and express delivery 
services except for those specifically  reserved to Australian postal authorities? If so, could Australia 
please provide their approval procedures, crite ria requirements and situ ation of commercial 
presence? 
 
Answer  
 
Foreign investors are permitted to engage in postal and express delivery services except for those 
services specifically reserved to Australia Post . Under the Australian Postal Corporation Act 1989 
Australia Post has the exclusive right to provide reserved letter services within Australia for, among 
other things, letters weighing up to  250 grams and carried for a charge or fee less than four times the 
basic postage rate. Given that all other posta l and express delivery services are not reserved to 
Australia Post, foreign investors, subject to  non-communications-specific foreign investment 
requirements, are allowed to provide such servi ces. The approval procedures, criteria requirements 
and situation of commercial presence are those commercial requirements normally applying in 
Australia, including within state, territory and local jurisdictions. 
 
Question 35 :  Please describe Australia’s price ma nagement policies on postal and express delivery 
services as well as their objective, contents and procedures.   
 
Answer  
 
Non-reserved postal and express delivery services are s ubject to normal commercial practices and the 
general trade practices provisions of the Compe tition and Consumer Act 2010. Price management 
policies for Australia Post’s reserved letter services are covered by Sections 29-33 of the Australian 
Postal Corporation Act 1989.  
Question 36
:  Please describe Australia’s customs clearance facilitating measures available to postal 
and express delivery items. 
 
Answer  
 
All incoming mail is subject to 100% screening by customs and quarantine.   
Medical services  
 
Question 37
:  Could Australia please provide regulations  and scientific basis on restrictions of heavy 
metal contaminant in food (l ead, cadmium, mercury, arsenic) and pathogenic microbes? 
  WT/TPR/M/244/Add.1 
 Page 47 
 
 
  Answer  
 
Part 1  Heavy Metal Contaminants 
 
The general principle used in relation to the contro l of contaminants in food is the levels should be 
safe, and kept as low as reasonably achievable unde r the safe limit, without removing the food from 
the food supply. The 'as low as reasonably achievable' (ALARA) principle for contaminants was 
adopted by the Codex Alimenta rius Commission (Codex, 1996). 
 For a period of time from the mid 1990s to early 2000s, Food Standards Australia New Zealand 
(FSANZ) carried out a review of all metal and non- metal contaminants for the purpose of developing 
the joint Australia New Zealand Food Standards C ode (the Code). The review involved collecting 
survey data on the levels of these  substances in foods, and used the results of an Australian National 
Nutrition Survey conducted in 1995. For each heavy me tal, these data were used to estimate potential 
dietary exposure, which together with extensiv e reviews of the toxicology data, allowed an 
assessment of the risk associated with exposure to each substance re levant to the populations of 
Australia and New Zealand.  The review process determined that maximum levels  (MLs) for contaminants in foods be established 
only where they serve an effective risk management  function, based on a scientific risk assessment, 
and only for those foods that provide a significant contribution to total dietary exposures. A ML for 
the heavy metals lead, cadmium, mercury and arsenic  were already in place in both countries, and the 
review supported the retention of the ML in a numbe r of food commodities. Current regulations in the 
Code for heavy metals in particular foods  are listed in Table 1 (following page).  
 In the toxicological evaluation of lead, cadmium, me rcury and arsenic, the approach was to identify a 
reference value for each substance. For these heavy metal contaminants the reference value used was 
the tolerable intake, which was either calculated on a daily, weekly or monthly basis. These values are 
established internationally by the Joint (FAO/WH O) Expert Committee on Food Additives (JECFA). 
If there is a lack of data on health effects in huma ns at low levels of exposure to these substances, the 
tolerable level is ‘provisional’, and new data may cause a change to the tolerable level. For 
contaminants such as lead, cadmium and mercury, the provisional tolerable weekly
 intake (PTWI) is 
used as a reference value to minimise the signifi cance of daily variations in intake. A provisional 
tolerable daily  intake (PTDI) was set for arsenic as this substance does not accumulate in the body. 
The PTWI and PTDI are primary health standards that apply to total exposure, that is, both food and non-food sources. The contribution from non-food exposure was also taken into account in the risk 
assessment of these substances. 
 
For mercury, while the ML is protective for the majority of the population, the risk assessment 
indicated that, as a precautionary measure to protect  the health of the foetus, pregnant women should 
control their dietary sources.  An advisory statement was therefore developed in close consultation with health professionals and seaf ood industry groups that was targeted specifically at pregnant 
women and those considering pregnancy.  
 WT/TPR/M/244/Add.1 
Page 48  
 
 Table 1  
Regulations in the joint Australia New Zealand Food Standards Code for heavy metals in particular foods – Standard 1.4.1 
Contaminants and Natural Toxicants  
Contaminant/commodity Maximum level (mg/kg) 
Arsenic (total) 
    Cereals  
1 
Arsenic (inorganic) 
    Crustacea 
    Fish     Molluscs    Seaweed (edible kelp)  
2 2 1 1 
Cadmium 
    Chocolate and cocoa products 
    Kidney of cattle, sheep or pig     Leafy vegetables     Liver of cattle, sheep or pig     Meat flesh of cattle, sheep or pig     Molluscs (excluding dredge/bluff oysters and queen scallops)     Peanuts     Rice     Root and tuber vegetables     Wheat  
0.5 
2.5 0.1 
1.25 0.05 
2 
0.05 
0.1 0.1 0.1 
Lead 
    Brassicas 
    Cereals, pulses and legumes     Edible offal of cattle, sheep, pig and poultry     Fish     Fruit     Infant formulae     Meat of cattle, sheep, pig and poultry     Molluscs     Vegetables (excluding Brassicas)  
0.3 0.2 0.5 0.5 0.1 
0.02 
0.1 
2 
0.1 
Mercury 
    Crustacea 
    Fish and fish products, excluding gemf ish, billfish (including marlin), southern 
 bluefin tuna, barramundi, ling, orange roughy, rays and all species of shark 
    Gemfish, billfish (including marlin), s outhern bluefin tuna, ba rramundi, ling, orange 
 roughy, rays and all species of shark 
    Molluscs  
Mean level of 0.5 
Mean level of 0.5 
 
Mean level of 1.0 
 
Mean level of 0.5 
 
Part 2  Pathogenic microbes 
 The control of pathogenic microorganisms in f ood is achieved through food safety standards and 
microbiological limits listed in the Code. Standard 1.6.1 – Microbiological Limits for Food lists the 
maximum permissible levels of foodborne microor ganisms that pose a risk to human health in 
nominated foods, or classes of foods.  
These limits were developed following comprehe nsive risk analyses for 26 food groups identifying 
microbiological hazards of concern (i.e. pat hogenic microorganisms) and ranking each pathogen 
according to their relative risk to the consumer. 
 These analyses supported the development of standard s for 17 food groups. Risk assessment indicated 
that there was a need to limit the numbers of  microorganisms in specific food commodities to 
nominated levels, to maintain public health and safety.  Commodities which contribute substantially 
to the dietary exposure from th ese microbiological hazards were identified by dietary modelling 
techniques, and proposed standards were estab lished on the basis of existing exposure data. 
 The Food Safety Standards in Chapter 3 of the Code specify food safety control measures for each 
food handling step. This includes requirements for notification of food businesses, food handlers to  WT/TPR/M/244/Add.1 
 Page 49 
 
 
  have skills and knowledge of food safety, health and hygiene of food handlers, and the cleaning, 
sanitising and maintenance of food premises, equi pment and food vehicles. The Standards also 
specify design and construction outcomes for food premises, equipment and vehicles to facilitate 
compliance with the food safety requirements. Chapte r 3 of the Code also contains Standard 3.2.1 ─ 
Food Safety Programs that sets out requirements for food safety programs that are based on Hazard 
Analysis Critical Control Point (HACCP) princi ples. This Standard takes a risk-based and 
preventative approach to managing food safety.   Since June 2002, FSANZ has had responsibility for developing national, integrated food safety 
requirements that cover all parts of the food supply ch ain. To this effect, FSANZ has been developing 
primary production and processing standards for iden tified industry sectors for inclusion in Chapter 4 
of the Code. A primary production and processing st andard is a set of obligations on primary 
producers and processors of food commodities. These obligations include measures to control food 
safety hazards that could occur during the productio n and processing of agricultural produce.  Such 
measures may include requirements for: 
 
• control of inputs 
• premises and equipment 
• health and hygiene 
• skills and knowledge 
• storage and transportation 
• traceability 
 
such that contamination of microbiological a nd other hazards is prevented or minimised. 
 Along with other standards in the Code, they pr ovide an approach to managing food safety and 
suitability in Australia that extends from produc tion on the farm through to sale to the consumer. 
FSANZ uses an internationally agreed risk analysis  approach to inform its  regulatory decision-making 
processes.  The risk analysis appr oach includes an assessment of the main hazards associated with the 
commodity and the factors along the supply chain that impact on the presence or level of that hazard. 
This will inform what control measu res are needed and the extent to  which potential hazards can or 
cannot be managed at steps in the chai n to minimise public health risks. 
 
Question 38
: Could Australia please provide informa tion on approved foreign-invested medical 
institutions in Australia? 
 
Answer  
 
In the Foreign Investment Review Board Annua l Report 2009-10 there were 31 proposals in the 
services sector involving proposed investment of A$100 million or more, including three of 
A$1 billion or more. Out of this, four proposals were in the health sector. 
 Question 39
: What are the regulations for foreign medical staff to work in Australia? 
 
Answer  
 
All persons entering Australia including medical and other health professionals must meet the relevant 
immigration and visa requirements.  Information rela ting to the visa requirements for overseas trained 
doctors can be provided by the Department of I mmigration and Citizenship.  Contact for DIAC is 
available at:  http://www.immi.gov.au/skilled/ medical-practitioners/medical-practitioners/  
 WT/TPR/M/244/Add.1 
Page 50  
 
 Foreign medical graduates wanting to work in Austra lia must also meet the standards required by the 
Medical Board of Australia and obtain registration by the Australian Health Practitioner Regulation 
Agency (AHPRA).  The AHPRA website www.ahpra.gov. au/index.php contains all legislation, links 
to all Board websites, registration sta ndards and registers of practitioners.   
 
Practitioners that meet these requirements work in a range of settings, including private practice and 
the public hospital and community sectors.  Foreign trained medical staff are subject to sec tion 19AB of the Health Insurance Act 1973, should 
they wish to practice independently.  This secti on restricts access to patient rebates via Medicare 
benefits and generally requires the internationally tr ained medical graduates to work in a district of 
workforce shortage (DWS) for a minimum period from the date of their first medical registration in 
Australia in order for them and their patients to access the Medicare benefits arrangements.  There are 
ways in which this time can be reduced under progr ams offered by the Australian Government which 
are detailed on the Department’s we bsite www.health.gov.au. Subject to section 19AB, internationally 
trained medical graduates work in all geographical  locations, with a significant number in rural and 
remote areas.  National registration now operates for ten health prof essions.  These are: chiropractic, dental practice, 
medicine, nursing and midwifery, optometry, oste opathy, pharmacy, physiotherapy, podiatry and 
psychology.   
 
An additional four professions will be included in the NRAS from 1 July 2012.  For each of these 
professions, overseas-trained practitioners have to a pply for assessment of their qualifications through 
the relevant board.    Television and broadcasting services 
 
Question 40
: Could Australia please describe the situation of radio stations and television stations in 
Australia? Could Australia also indicate its po licies on management of foreign investment in radio 
stations and television stations as well as on foreign radio and television programmes? 
 
Answer  
 
Radio and television stations 
 
Commercial and community broadcasting licences (television and radio) are issued under the 
Broadcasting Services Act 1992 (BSA) by the Au stralian Communications and Media Authority 
(ACMA).  These licences authorise the provision of  the services applicable to each licence type 
within a relevant licence area.  Commercial television and radio broadcasting services are free-to-air services of general appeal to the public. They are operated for profit and are funded predominantly by 
advertising revenue. Community te levision and radio br oadcasting services are free-to-air services 
provided for community purposes on a non-profit basis.  
 
The table below provides details of the commercial and community broadcasting licences issued and operating in Australia.    WT/TPR/M/244/Add.1 
 Page 51 
 
 
  Table 2 
Commercial and community radio broadcasting in Australia  
 Commercial radio broadcasting Community radio broadcasting 
Licences  - Allocated 
 - Operating 273 
273 356 
347 
 Commercial TV broadcasting Community TV broadcasting 
Licences  - Allocated 
 - Operating 67 
58 81 
79 
 
Source:  ACMA website: www.acma.gov.au. 
 
Australia’s national broadcasters – the Austra lian Broadcasting Corporation and the Special 
Broadcasting Service – also provide radio and te levision services across Australia. The provision of 
these services is authorised under their respec tive Acts, rather than via a licence.   
 
Finally, there are other categories of radio and television services licenced under the BSA, including: 
subscription broadcasting services, subscription narrowcasting services, open narrowcasting services 
and international broadcasting services. More info rmation about these services is available at the 
ACMA website: www.acma.gov.au  Management of foreign investment in television and radio stations 
 
Australia’s media industry is a 'sensitive sector' under the Australian Government’s Foreign Investment Policy. This means that any foreign investor who seeks more th an 5% equity in an 
Australian media company must apply for approval from the Treasurer, who may grant that approval 
subject to certain conditions.  
 
The Government may also reject foreign investment proposals which are determined to be contrary to 
the national interest under the Forei gn Acquisitions and Takeovers Act 1975. 
 With regard to foreign radio and television progra ms, as long as any such programs comply with the 
legislative and regulatory framework for Austra lian broadcasting, including the content and 
classification requirements contained in relevant codes of practice, there are no restrictions on their importation or use on Australian broadcasting service s. However, commercial television broadcasting 
licensees are required to broadcast minimum amounts of  Australian content, while there are also local 
content requirements for commercial radio broad casting licensees and Australian drama expenditure 
requirements for subscription television broad casting licensees. Further detail regarding these 
requirements can be found at the ACMA website: www.acma.gov.au.  
(3
rd set) 
 
REPORT BY THE SECRETARIAT 
 
I. ECONOMIC ENVIRONMENT 
(3) M AIN MACROECONOMIC POLICY DEVELOPMENTS  
 Paragraph 69, page 111 
 
Question 1:
 Australia indicated the numbers and valu e of foreign takeovers or acquisitions of 
Australian banks. Could Australia please provide the number of those proposals rejected by the 
Government?  What is the rationale behind these rejections? 
 WT/TPR/M/244/Add.1 
Page 52  
 
 Answer  
 
The number of proposals under Australia’s Foreign Inv estment Policy provided in the section of the 
report China has referenced in respect of this question are sourced from the Foreign Investment 
Review Board Annual Reports for 2007/08 and 2008/09.  In 2007/08, 39 proposals in the finance and 
insurance sector were approved a nd none were rejected.  In 2008/09, 60 proposals in the finance and 
insurance sector were approved and none were rejected.   
 Hence, while Australia maintains a broad forei gn investment screening framework, it imposes few 
actual restrictions on foreign investment.  Also, Australia has not rejected a foreign investment 
proposal in any business sector, including in relation to the banking sector, since 2001 – when 
Australia rejected the Shell Group’s proposed ac quisition of Woodside Petroleum Ltd on national 
interest grounds.  
 
Question 2:
 Could the Australian delegation please clar ify the approval procedures and time-limit for 
applications of foreign banks establishing branches in Australia?  
Answer
 
 
The application process involves the following steps:  
• preliminary consultation between APRA and the prospective applicant to discuss the 
applicant’s plans to carry on banking business in Australia. This discussion will assist in 
identifying any matters which might adversely impact on the proposal and in agreeing the 
format and content required in an application;  
• submission of a draft application and relevant information, as detailed in the authorisation 
guidelines; and  
• APRA’s review of the application. This will in clude meetings with senior officers and other 
responsible persons, as well as on-site prudential reviews.  
 
Generally, the overall licensing process could take from three to 12 months. Some common factors 
that can delay the authorisation process include:  
• an initial submission that contains inco mplete or inadequate documentation;  
• an entity being unable or unwilling to comply with APRA’s requirements (for example, being 
unable to raise the required level of capital); and  
• delays in responding to APRA’s requirements and requests.  
 Further information on APRA’s authorization guide lines is available at http://www.apra.gov.au/ADI/ 
upload/ADI-Guidelines-11-4-08.pdf and APRA  website http://www.apra.gov.au/adi/. 
 
Question 3:
  If a foreign-invested bank has established a br anch in Australia, is it allowed to appoint 
a person with foreign nationality as the chairman of the branch? 
 
Answer  
 
According to subsection 5(1) of the Banking Act 1959 (the Act), the responsible persons in a foreign 
ADI (authorized deposit-taking ins titution) generally comprise senior managers of the Australian 
operations who are ordinarily resident in Australia , auditors, and persons ordinarily resident in 
Australia who perform certain functions in relation to subsidiaries (foreign banks authorised by APRA 
to carry on banking business in Australia through bran ches are referred to as 'foreign ADIs' under the 
Act).  There is no requirement to engage senio r managers of any particular nationality.   
  WT/TPR/M/244/Add.1 
 Page 53 
 
 
  As a guide, a person might be considered ‘ordinarily resident’, as referred to in the prudential standard 
APS 510, if they are likely to be in Australia for a majority of days in any 12-month period (http://www.apra.gov.au/Policy/upload/APS-510-Governance-for-ADIs.pdf). 
 
Question 4:
 What measures have Austra lia’s relevant regulatory authorities adopted to facilitate 
reforms and improvements of the OTC deriva tives market since global financial crisis?  
 Answer
 
 
Australia follows the G20 commitments regardi ng OTC derivatives which are designed to address 
weaknesses in these markets.  Work in Australia  facilitating reform and improvements to OTCD 
markets have largely developed in this context.  Given the relatively small ITCD market in Australia 
with substantial cross-border activity, progress in meeting these commitments is strongly influenced 
by developments in the major markets.  Much of  the Australian regulators’ policy formulation and 
implementation is also substantia lly dependent on the outcomes of th e additional work that has been 
given to international regulatory bodies such as IOSCO, CPSS, BCBS and ODRF.   
 In conjunction with an Australian OTC derivatives re gulatory working group, the relevant Australian 
industry body (the Australian Financial Markets As sociation – AFMA) has initiated a quarterly report 
that tracks the progress of local industry participants with regard to the take up of electronic platforms 
and confirmation services, trade repositories and centr al counterparty clearing.  Regulators are using 
this information to monitor how well the local mark et is keeping pace with developments in major 
offshore markets.  Australia’s regulators and industr y have also been engaging closely in exploring 
possible solutions on central clearing that would be  appropriate to the Australian domestic market, 
including ensuring that they do not concentr ate exposures on global banks, or cause significant 
inefficiencies in the market. We support the need for work by the international regulatory community 
in undertaking a comprehensive analysis comparing th e systemic risk characteristics of various OTCD 
clearing landscapes.  
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(6) T
RADE AGREEMENTS AND ARRANGEMENTS  
 
Question 5:   Australia announced its decision to participat e in the Cyber-Crime Convention on April, 
2010. Could Australia please confirm whether it has already participated in the Cyber-Crime 
Convention ？If so, what is the influence of the Con vention on its domestic cyber law enforcement? 
 
Answer  
 
Australia is yet to accede to the Council of Eu rope Convention on Cyberc rime.  The Australian 
Government undertook public c onsultation on whether accession should occur and the issue is 
currently under consideration by the Parliame ntary Joint Standing Committee on Treaties.   
 
Question 6 :  Australia is actively participating in pr omoting the negotiation of Anti-Counterfeiting 
Trade Agreement. Could Australia please indicate  the negotiation progress and its main contents? 
What might be the influence of the agreement on both the legislation and law enforcement of 
intellectual property?  
Answer
 
 
Australia and 36 other countries completed negotia tions of the Anti-Counterfeiting Trade Agreement 
(ACTA) in December 2010.  Australia’s laws are al ready consistent with the measures contained in 
the ACTA.  Australia has not yet signed or ratif ied ACTA.  If Australia does join ACTA, it would WT/TPR/M/244/Add.1 
Page 54  
 
 enhance Australia’s ability to enforce IP right s through enhanced coopera tion with enforcement 
agencies in other ACTA parties. 
 
Question 7 : Could Australia please indicate polici es on power-marketization and power market 
access?  
 
Answer : 
 The Australian electricity market:  
 The Australian electricity market comprises of three major transmission systems.  In the eastern states 
the National Electricity Market (NEM) forms a si ngle electrically connected system extending from 
Port Douglas in Queensland, through New South Wal es, the Australian Capital Territory, Victoria and 
Tasmania to Port Lincoln in South Australia.  Th e NEM has approximately 300 generating units with 
a capacity rating of around 41,700 MW.  
 
Western Australia's networks consist of the Sout h-West Interconnected System (SWIS) including 
Perth and the North-West Interconnected System (NWI S) for the mining areas in the north of Western 
Australia. While not connected electrically, the SW IS and NWIS are connected through gas pipelines. 
The SWIS accounts for approximately 77% of generation in Western Australia.   
The SWIS has 5,134 MW of installed generation capac ity, 6,000 kilometres of transmission lines, and 
85,000 kilometres of distribution lines.  The NWIS has a generation capacity of around 400 MW and is mainly fuelled by natural gas.   In addition to the SWIS and the NWIS, 29 non-in terconnected distribution systems also operate 
around towns in rural and remote areas across the State.  
 The Northern Territory’s electricity industry is sm all and consists of three regulated systems: the 
Alice Springs regulated system; the Darwin–Kathe rine regulated system; and the Tennant Creek 
regulated system. The total capacity of the Territory’s regulated systems is around 450MW. 
 
Market access:   
 
The NEM operates an open access regime for access to  the interconnected transmission network.  
Under this regime, transmission network service providers (TNSPs) and ge nerators enter into 
connection agreements which specify the details  of the terms of access to the interconnected 
transmission networks which are part of the NEM.  Included in connection agreements are details on 
access standards (which must exceed minimum access standards determined by the Australian Energy 
Market Operator (AEMO)), standards of reliab ility, payment conditions a nd applicable connection 
charges. All generators with a capacity 30MW or a bove must register with AEMO.  A generator’s use 
of the transmission system in the NEM depends on wh ether it is dispatched for generation by AEMO.  
 
In the SWIS access to transmission and distribution network services is managed under the Electricity 
Networks Access Code (the Code).  Currently, the code only covers gove rnment owned Western 
Power’s SWIS networks but other networks may be  covered in the future if they meet the access 
regime’s coverage tests.  The Economic Regulati on Authority administers the Code, which prescribes 
commercial arrangements, including access charges that electricity generators and retailers must pay 
to use Western Power’s networks. 
 The Northern Territory market uses a ‘bilatera l contracting’ system whereby generators are 
responsible for dispatching the power that their cu stomers require.  The industry is dominated by a  WT/TPR/M/244/Add.1 
 Page 55 
 
 
  government owned corporation, Power and Water,  which owns the transmission and distribution 
networks.  Power and Water is also th e monopoly retail provider and generator. 
 
Question 8 : Could Australia please provide laws and re gulations related to power market access? 
Please also provide policies on international bid for government procurement in power sector within 
two years?  
Answer
 
 Laws and regulations:  
 NEM:   Historically, governments owned and operated the electricity supply chain from generation 
through to retailing.  Australian governments began to reform the electricity industry in the 1990s, 
with a National Electricity Law (NEL) passed in 1996 .  The NEL forms the legal basis for the creation 
of the NEM and at that time was agreed by Qu eensland, New South Wales, the Australian Capital 
Territory, Victoria and South Australia.  Tasmania joined the NEM in 2005. 
 Since mid-2005, the Australian Energy Market Commission (AEMC) and the Australian Energy Regulator (AER) have had responsibility for over sight and regulation of the NEM.  AEMC is 
responsible for rule making and market developmen t.  AER has responsibility for the enforcement of 
and monitoring compliance with the National Ener gy Rules, as well as responsibility for economic 
regulation of electricity transmission. 
 Current versions of the national energy Laws and Rules are at www.aemc.gov.au. 
 Western Australia:  The Economic Regulation Au thority (ERA) is the independent economic 
regulator for Western Australia.  It regulates mo nopoly aspects of the gas, electricity and rail 
industries and licenses providers of gas, electricity and water services.  In addition, the ERA has a range of responsibilities in the retailing of gas and su rveillance of the wholesale electricity market in 
Western Australia.  Northern Territory:  The Northern Territory (NT)  Government regulates tariffs for non-contestable 
customers via electricity pricing orders. The NT Utilities Commission regulates service standards, 
including standards for reliability and customer service.  
Bids for procurement in the power sector:  
 The Government relies on the market to signal th e new for new investment in the power sector, and 
does not
 run procurement rounds for capacity. In the eastern and southern states, the Australian 
Energy Market Operator (AEMO) publishes a number of reports which highlight upcoming 
opportunities in electricity and gas markets wh ich are helpful for potential investors.  
 
• The Electricity Statement of Opportunities ( ESOO) presents the outlook for Australia’s 
National Electricity Market (NEM) supply capacity for years 2013-2020 and demand for 
years 2010-2020. The supply-demand outlook reflects the extent of growth, and opportunities for growth, in generation and de mand-side investment. The publication is available on line at: 
www.aemo.com.au/planning/esoo2010.html 
 
• The Gas Statement of Opportunities (GSOO) aims to assist existing participants and new 
investors in making commercial decisions about investment in infrastructure or entering into 
contracts in the Eastern and South Eastern Australian gas industry. The publication is 
available on line at: www.aemo.com.au/planning/gsoo2010.html WT/TPR/M/244/Add.1 
Page 56  
 
  
Polices on foreign investment:  
 
The Australian Government welcomes foreign inv estment.  Under Australia’s foreign investment 
policy larger proposals are assessed by the Foreign Investment Review Board.  This includes all 
proposed investments by foreign governments and their agencies.  
 To ensure they are consistent with Australia’s national interest, the FIRB examines whether proposed 
foreign investments may have any adverse implica tions for Australia’s national security or economic 
development and ensures they are consistent with any specific foreign investment legislation in areas 
such as transport and telecommunications.  It also examines whether proposals have implications for 
other Government policies, competition a nd the operations of Australian businesses. 
 The Australia Government has the power under the Foreign Acquisitions and Takeovers Act 1975 to 
block proposals determined to be contrary to the national interest.  The purpose of Australia’s foreign 
investment screening regime is to ensure that forei gn investment into Australia is consistent with our 
national interest.  Further information is available at www.firb.gov.au 
 
(8) F
OREIGN INVESTMENT REGIME  
 
Question 9:  Please describe the basic information on Au stralia's resources tax, including the basic 
resources tax category(taxation, rental, fee) on mini ng in the sessions of production, sales, export, 
etc.; range of taxation on main resources tax, basis for taxation, tax rate. Please also explain the 
development of resources tax reform.  
 
Answer  
 
Resource Taxes in Australia 
 
In Australia, all onshore minerals and petroleu m are taxed by State and Territory governments 
through royalty systems, except in the Northern Territory where a profits based tax is applied. 
 More information on State and Territory royalties can be found here:   http://www.ret.gov.au/resources/Documents/enhanci ng/minerals-and-petroleum-exploration/AUS 
Minerals_InvestFactsheet18.pdf. 
 
All offshore petroleum is taxed by the Federal Government through the Petroleum Resource Rent 
Tax, and the Crude Oil Excise for production from the North West Shelf.  More information on offshore petr oleum taxation can be found here: 
http://www.ret.gov.au/resources/Documents/enhanci ng/minerals-and-petroleum-exploration/AUS 
Minerals_InvestFactsheet19.pdf 
 
Resource Tax Reform 
 
In 2009, the Australian Government undertook a major re view of Australia’s tax and transfer system 
called the Australian Future Tax Systems Review  (AFTS). The Review took a 'root and branch' 
approach and examined Australian and State governme nt taxes, and interacti ons with the transfer 
system in order to make recommendations to position Australia to deal with the demographic, social, 
economic and environmental challenges that lie ahead.   WT/TPR/M/244/Add.1 
 Page 57 
 
 
  The AFTS review report can be found at  http://www.taxreview.treasury.gov.au. 
 One of the recommendations of the Review was to introduce a resource rent tax on all minerals and 
petroleum, both onshore and offshore in Australia’s  territorial waters. After negotiation with the 
industry, the Government announced that it would implement a Minerals Resource Rent Tax on iron 
ore and coal. 
 
Minerals Resource Rent Tax 
 
The new Minerals Resource Rent Tax (MRRT) will commence on 1 July 2012 and apply to all new 
and existing iron ore and coal projects, and it will apply to the mining of iron ore and coal in 
Australia.   The key features of the MRRT are:  
• The minerals resource rent tax (MRRT) will be  a tax on the net profits resulting from the 
extraction of iron ore and coal. The MRRT will have a headline tax rate of 30% on 
assessable receipts, with the MRRT liability being further reduced by a 25% extraction 
allowance, resulting in an e ffective tax rate of 22.5%.  
• The MRRT liability will be calculated on an  individual taxpayer’s direct ownership 
interest in a project. Small miners with r esource profits below $50 million per annum will 
not have an MRRT liability.  
• The MRRT will recognise the particular char acteristics of different commodities, by 
applying a taxing point as close to the point of extraction as practicable, and using 
appropriate pricing arrangements to ensure only the value of the resources extracted is 
taxed.  
• A project’s taxable profit in the relevant year will be calculated by deducting project 
expenditures and royalties from assessable  revenue. Deductible expenditures and 
assessable revenue will be determined at the ‘taxing point’ in the production chain.  
• New investment will be given generous treatment in the form of immediate write off, 
rather than depreciation over a number of years. This allows mining projects to access the deductions immediately, and means a project will not pay any MRRT until it has made 
enough profit to pay off its upfront investment.  
 For more information on how the MRRT will work, please visit: http://www.futuretax.gov.au 
 
Question 10:
 Could Australia please introduce detailed policies (conditions, regulatory measures, 
approval procedures) concerning foreign companies investing in the Australian resources sector or 
for acquisitions of Australian companies in the resources sector?  
 
Answer:  
 
Question 11:  What is the latest policy direction concern ing the aforementioned activities by relevant 
Australian legislative and regulatory authorities?  
 
Answer to Questions 10 and 11  
 
Please see response to question 2 in China’s first set of questions 
 
Question 12 : There exists some discriminatory treatment towards foreign state-owned enterprises 
with investment or acquisitions in Australia, which includes: the Australian go vernment issues a more 
stringent review regulation towards state-owned en terprises as the source of investment; the approval WT/TPR/M/244/Add.1 
Page 58  
 
 requirements and timing are more stringent and la ck transparency. Is the Australian government 
considering terminating such discriminatory treatment?  Answer
 
 The Australian Government’s longstanding policy as it applies to foreign government investment is 
non-discriminatory.  All foreign governments and th eir related entities need to notify the Government 
and get prior approval before making a direct invest ment in Australia, regardless of the value of the 
investment.  Naturally, notification under Australia ’s Foreign Investment Policy (the Policy) as it 
applies to foreign government investment will ha ppen more often for countries that have a higher 
proportion of state-owned investors.  However, the Policy is blind to the country-of-origin — it is 
applied equally to all investments by foreign go vernments and related entities.  The Australian 
Government monitors the appropriateness of these notification requirements.  Where a proposal involves a foreign government or a related entity, the Australian Government also 
considers if the investment is commercial in natu re or if the investor may be pursuing broader 
political or strategic objectives that may be contrary  to Australia’s national interest.  This includes 
assessing whether the prospective investor’s governance arrangements could facilitate actual or 
potential control by a foreign government (including  through the investor’s funding arrangements).  
Proposals from foreign government entities operating on  a fully arms length and commercial basis are 
less likely to raise national interest concer ns than proposals from those that do not. 
 
Where there are concerns about approval requireme nts or timing, potential investors should contact 
the Foreign Investment Review Board at an early stage so that it can provide advice on any concerns.  
 
Question 13:
 Difficulties in getting a visa or work ing permit have created barriers for foreign 
administrative and technical staff doing business in Australia. What further improvement could 
Australia make to facilitate investment and trade? 
 
Answer  
 
Australia has an open and transparent system to obtain a skilled visa (temporary or permanent) to work in Australia.  Australia would welcome the oppor tunity to discuss specific issues with trading 
partners.  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 Paragraph 1, page 31 
 "Australia has proceeded with some unilateral liber alization in certain areas with a view to increasing 
the competitiveness of domestic firms and reducing anti-export bias."  
Question14:
 Could Australia please provide detailed info rmation, especially on measures related to 
Entry-Exit management by the Australian customs?  
Answer
 
 
Customs procedures for importing and exportin g are detailed at the following website.  
http://www.customs.gov.au/site/page4226.asp 
  WT/TPR/M/244/Add.1 
 Page 59 
 
 
  Paragraph 30, page 42 
 "Goods are valued under nine different methods of valuation in a sequence established in the domestic 
legislation;  the most common is the transaction value method, which is used for around 98% of 
imports." 
 
Question15:
 Could Australia please indicate the nine different methods of valuation of goods, and 
whether they are in comp liance with WTO CVA? 
 
Answer  
 Australia has implemented the GATT/WTO Ag reement on Customs Valuation since 1981. 
 Goods are valued under the following methods of valua tion in Australia consiste nt with the terms of 
the following Articles in the WTO Valuation Agreement: 
 
AUSTRALIAN VALUATION METHODS The relevant Articles in the WTO Valuation Agreement  
(1) Transaction Value  1 
(2) Identical Goods Value 2 
(3) Similar Goods Value 3 
(4) Deductive:   
 I. Contemporary Sales Value 5.1(a) 
 II.  Later Sales Value 5.1(b) 
 III. Derived Goods Sales Value 5.2 
(5) Computed Value 6 
(6) Fall-Back Value 7 
 
The sequential order of application for the above methodologies is set out in section 159 of Customs 
Act 1901.    Consistent with the WTO Valuation Agreement, th e Australian legislation has further refined the 
deductive method under Article 5 into three sub-me thods: contemporary sales value, later sales value 
and derived goods sales value methods." 
 
Paragraph 33, page 45  "Since 12 January 2009, a Post Import Permission Sche me has allowed permissi on to be granted after 
importation, at the discretion of Customs, in resp ect of certain classes of controlled goods including 
specific drugs, chemicals, consumer  items, firearms and knives, asb estos products, and items bearing 
Australian national symbols.  If the post import permi ssion is not sought or it is not granted within 
30 days of application, then Customs seize the goods in question"  
Question 16:
 Could Australia please elaborate on the detailed measures taken under the Post Import 
Permission Scheme? 
 
Answer:  
 
Australia 
 The Customs (Prohibited Import) Regulations 19 56 controls the import of certain goods into 
Australia. Goods may be either prohibited absolute ly, or are restricted goods, meaning they can only WT/TPR/M/244/Add.1 
Page 60  
 
 be imported with the relevant impor t permission or licence, or if certain conditions or requirements 
are met.   For a variety of reasons, it is not always possible to obtain a licence or permission to import goods before their importation. Customs typically seizes a large quantity of prohibited and restricted goods 
from importers who are genuinely unaware of the need  to obtain permission to import, or who did not 
have the opportunity to obtain a permit prior to importing the goods.  With effect from 12 January 2009 a legal basis exis ts for importers to obtain permits for certain 
classes of goods, after the goods have arrived in Australia.  
 
The PIP Scheme operates under Subdivision GC  of Division 1 of Part XII of the Customs Act 1901 
(the Act).  When goods arrive in Australia without the appropria te permission, two criteria must be met in order 
for the goods to be eligible for the PIP Scheme: 
 
• The goods must be among those prescribed in Regulation 170AA of the Customs Regulations 
1926;  and 
• The goods must not be concealed.  
 More detailed information about the Post Import Permission Scheme can be found in the Australian 
Customs Notice via the following website:  http ://www.customs.gov.au/webdata/resources/notices/ 
acn0903.pdf. 
 
IV. TRADE POLICIES BY SECTOR 
(5) S
ERVICES  
 
Paragraph 31, page 9  "Removing impediments to growth includes regul atory reform to deliver a seamless national 
economy, which will help to address behind- the-border barriers to services activities." 
 Question17
:  Could Australia please specify the approac hes or practices concerning the regulatory 
reform? To what extent could they ad dress the barriers to services activities? 
 
Answer  
 
Regulatory barriers to entry sometimes have the e ffect (not always unintended) of restricting 
competition, such as inflexible planning and zoning  regulations or other kinds of regulation such as 
food labelling or occupational licensing imposed at the local or state/territory government 
level. Sometimes these barriers to entry are imposed  with the encouragement of other businesses, 
which have an invested interest in maintain ing the status quo of fewer competitors.   
 
COAG, through the Business Regulation and Co mpetition Working Group (BRCWG), has been 
addressing this issue of regulatory barriers to entr y through measures to harmonise the regulation of 
industries and infrastructure with  cross-border implications.   
 A copy of the National Partnership Agreement to Deliver a Seamless National Economy (SNE NP) 
can be accessed from the following website:  h ttp://www.federalfinancialrelations.gov.au/content/ 
national_partnership_agreements/ OT001/Seamless_National_Economy.pdf 
  WT/TPR/M/244/Add.1 
 Page 61 
 
 
  A description of the 27 deregulation priorities (which cover off regulatory barriers to entry) and eight 
competition reforms under the SNE NP, and the othe r non- SNE NP reforms, can be found in the 
implementation plans, which can be accessed from the following websites:  http://www.coag.gov.au/coag_meeting_outcom es/2011-02-13/docs/revised_np_sne_part_1_ 
deregulation_priorities_imp_plan.pdf 
 http://www.coag.gov.au/coag_meeting_outco mes/2011-02-13/docs/revised_np_snepart_2_ 
deregulation_priorities_imp_plan.pdf  
http://www.coag.gov.au/coag_meeting_outcomes/ 2011-02-13/docs/revised_imp_plans_coag_ 
deregulation_reforms_outside_npa sne.pdf 
 
Paragraph 33, page 9 
 
"This reform agenda has been supported by close a ttention to the role of regulation and competition, 
including through the establishment of bodies such as the Office of Best Practice Regulation and the 
Australian Competition and Consumer Commission."  
Question 18:
 What are the main functions of those bodi es? Please exemplify some effective measures 
and policies the Government and the above-menti oned bodies have conducted for the reform of 
services economy?  
Answer
 
 
A description of the Office of Best Practice Regulation and the Australian Competition and Consumer Commission and their respective roles can be found in the following websites:   
 http://www.accc.gov.au/content/index.phtml/itemId/142  http://www.finance.gov.au/obpr/about/  
 
Question 19
:  Could Australia please indicate the re quirements (qualification, residency, etc.) 
imposed for a foreigner to establish an accounting firm in Australia?  
 
Answer  
 
Before a person can obtain a skilled visa (temporary or permanent) to work in Australia in the 
occupation of accountant, they need to have thei r qualifications assessed by one of the accounting 
bodies in Australia, for example CPA Australia.  This involves having a formal qualification and 
meeting an English la nguage proficiency. 
 
Question 20:  If an accounting firm is allowed to be establis hed in Australia with foreign registration, 
are there any restrictions on the scope of business fo r this kind of accounting firms operating in 
Australia? If so, what are those restrictions and regulatory measures adopted?  
Answer
 
 
There are no market access restrictions on foreig n accountants establishing in Australia.   Natural 
persons trading as auditors or liquidators must be resident.  In relation to company auditing services, 
at least one equity partner in a firm must be ordinarily resident in Australia.  WT/TPR/M/244/Add.1 
Page 62  
 
 Additional qualifications and/or registration requi rements apply to accountants who seek to perform 
particular categories of work (for example, aud iting of company financial statements, insolvency 
practitioners (both corporate and personal)  and preparation of taxation returns). 
 Additional requirements may also apply to accountan ts who perform work that comes within the 
scope of the Investor Protection and Credit Unit.  
 
Question 21:
  Does Australia accept audit reports conduc ted by foreign accounting firms for foreign 
companies listed in the Australian capital market ? If so, are there any restriction conditions?  
 
Answer  
 
Generally we do accept foreign audit reports if the company is foreign.  
 paragraph 93, Page 120,  
 
"…They would include a new tonnage tax..."  
Question 22:
 Could Australia please provide detailed information about the Tonnage Tax, including 
its policy objective, scope of application, tax rate , etc? How is it different from the original tax 
structure for the shipping industry? 
 
Answer  
 
The Australian Government’s objectives for shipping are to: 
• ensure Australia has a viable shipping industry,  able to provide adequate coastal shipping 
services at a reasonable price for customers/cons umers and which reinvests in its ships when 
they reach the end of their economic lives; 
• ensure Australian shipping maintains and potentia lly grows its share of the national transport 
system in order to meet the growing transport t ask efficiently, effectively, safely and with the 
least impact on the environment;  
• provide opportunities to increase Australia’s par ticipation in international shipping, reflecting 
the significance of shipping to our trade b ase and the linkages between strong domestic and 
international sectors; 
 
(1) A Commonwealth Parliamentary Inquiry into th e Australian coastal shipping trade noted that 
Australian shipping companies are subject to the standard corporate tax rate arrangement, which puts them at a competitive disadvantage with ships register ed in countries which offer zero or low tax rates 
for shipping businesses.   Proposed financial incenti ves for Australian companies will include access 
to either the tonnage tax or a tax scheme combin ing accelerated depreciation and relaxed capital gains 
tax provision for selected capital assets.  Th ese two schemes are mutually exclusive.  
 Many of the details relating to the institutional desi gn of the tonnage tax system are currently under 
consideration. We are therefore not in a position to answer these questions definitively at this time.  
 
  WT/TPR/M/244/Add.1 
 Page 63 
 
 
  UNITED STATES  
 
WT/TPR/S/244 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(ii) Tariffs  
Page 38, paragraph 17
:  The Secretariat says that "Australia's bound rates currently exceed applied 
MFN rates by nearly seven percentage points".  In 2007, Australia advised that it has a forward 
program of legislated tariff reductions that will re duce Australian applied tari ffs independently of any 
outcomes of WTO negotiations that would reduce bound tariff levels."  
Question
 
 
Please describe this program of legislated tariff reductions and the timeframe for its implementation. 
 Answer
 
 
Australia’s program of legislated tariff reducti ons involves the reduction of applied tariffs on 
Passenger Motor Vehicles and related parts, and tex tiles clothing and footwear tariffs over a series of 
instalments.  On 1 January 2010 Australia conti nued this program by reducing tariffs on passenger 
motor vehicles to 5%, tariffs on footwear, fabrics an d a range of textiles to 5% and tariffs on certain 
made up textile items and clothing to 10% (from 17.5%).  The next, and final, scheduled tariff reduction is due to occur on 1 January 2015, when remaining 
tariffs on textile and clothing items will be reduced to 5%.  By this date, Australia will apply tariff 
rates of no more than 5% for all but 13 tariff lines (covering cheese and curd, fruit juices, and used 
passenger motor vehicles) which are subject to a specific duty rate.  
(v) Import prohibitions, restrictions, and licensing 
 
Page 63, paragraph 32
:  According to the Secretariat, "Austra lia's last submission to the WTO of its 
Replies to the Questionnaire on Import Licensing Procedures was in October 2006...;  in November 2010, Australia was in the process of de veloping a revised submission to reflect recent 
limited changes."  As of March 8, the submission still had not been posted on the WTO Documents Website.  It also appears that Australia has not re viewed or revised its submissions under Articles 1.4 
and 8.2 of the Agreement since 1997.    
 
Question
 
 
We appreciate Australia’s offer to update its responses to the Questionnaire on Import Licensing 
Procedures, as required under Article 7.3 of the Ag reement.  Does Australia plan to complete this 
process and submit its revised response to th e "annual" Questionnaire on Import Licensing 
Procedures in time for its review in the Committee during 2011?  Will Australia review and revise as well its submi ssions of copies of the public notice of these 
requirements under Articles 1.4 and 8.2 of the Agreem ent, and provide them to the Secretariat in 
electronic media for provision upon request to members of the Committee? 
 WT/TPR/M/244/Add.1 
Page 64  
 
 Answer  
 
It is Australia’s intention to complete the pr eparation of the Questionnaire on Import Licensing 
Procedures ahead of the 2011 Committee meeting.  Au stralia will review other transparency-related 
aspects of the Agreement. 
 
(vii) Standards and other technical requirements 
 
Page 49, paragraph 45 :  According to the Secretariat, Australia ’s policy toward standards is that they 
should be compatible with releva nt international or internationa lly accepted standards or practices, 
with a view to minimizing impediments to trade.   The Report goes on to cite the percentage of 
Australia’s standards (overall) that comply with in ternational standards (where  international standards 
exist).   
Question
 
 
Does this percentage apply to international sta ndards for plant and animal health?  For example, 
does Australia's policy with respect to standards app ly to the World Organization for Animal Health 
(OIE) international standards pertaining to safe trade in animals and animal products?  If so, can 
Australia provide the percentage of its national st andards pertaining to animal health which are 
compatible with OIE international standards?  
 
Answer  
 
Australia maintains a strict sanitary and phytosanita ry regime, which is proportionate to Australia 
appropriate level of protec tion.  Australia bases its national standards as closely as possible to those of 
the World Organisation for Animal Health (OIE),  the International Plant Protection Convention 
(IPPC) and the Codex Alimentarius Commission.  Howe ver, in some cases, relevant standards do not 
exist or the international standards do not deliver the level of protection required by Australia to 
maintain its appropriate level of protection.   
 
Page 53, paragraph 55 :  The Report states that new import risk analysis (IRA) arrangements entered 
into effect on 5 September 2007 setting specific tim eframes for completion of  IRAs within either 
24 months or 30 months.   
 
Question  
 
Can Australia provide examples of completed IRAs  that have enabled new market access for foreign-
origin agricultural products?    Answer
 
 
The requested information is freely available on the Department of Agriculture, Fisheries and 
Forestry’s website:   
 
http://www.daff.gov.au/ba/ira/final-animal  
http://www.daff.gov.au/ba/ira/final-plant  
 
Page 53, footnote 69 :  According to the footnote, the Austra lian constitution states that, "if a state law 
is inconsistent with a Commonwealth law, the Commonwealth law prevails, and the state law is 
invalid to the extent of the inconsistency." 
  WT/TPR/M/244/Add.1 
 Page 65 
 
 
  Question  
 How has the Biosecurity Advisory Council assisted in the resolution of such inconsistent laws?  
 Answer
 
 
The Biosecurity Advisory Council does not look into  such matters.  Information regarding the role 
and current work program of the Biosecurity Adviso ry Council, including its terms of reference, can 
be found at:   
http://www.daff.gov.au/biosecurity-advisory-council  
 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(iv) Export assistance 
(d) Other Schemes 
 
Page 62-63, Paragraph 85 :  According to the Secretariat Report, "The Certain Inputs to Manufacture 
(CIM) scheme provides duty-free entry for raw materi als and intermediate chemicals, plastic and 
paper goods, and metal minerals us ed in manufacturing directed towards ‘import replacement’ and 
export enhancement." 
 
Question  
 Please explain this program in light of Austra lia’s commitments under Article 3 of the Subsidies 
Agreement.    
Answer
 
 
CIM is a concession program administered by the AusIndustry Division of the Department of Innovation Industry Science and Research.  Concessions such as those for the CIM program are made under section 273 of the Customs Act 1901 for the pur poses of specific items of the Customs Tariff 
Act 1995 (Tariff Act) - in this case items 57 and 60 of the Schedule 4 to the Tariff Act.  Under 
Australia's legal system, such concessions must  be made in accordance with the law and the 
Government policy of the day.    CIM is not a widely used concession (in 2009-10, duty forgone under CIM was $2m) The CIM guidelines acknowledge that concessions must  be granted in a broader policy framework, as 
"All applications for concessional entry under item 57 or item 60 will be assessed against the 
Government’s industry policy objectives as determin ed by the Government from time to time".  
Where it can be demonstrated that an applica tion otherwise meets the policy and administrative 
guidelines for CIM, applications w ill be approved irrespective of whether imported goods would be 
used in import replacement or export enhancing ac tivities.  Indeed, many of the raw materials and 
intermediate goods granted concessions under CIM are for use in the manufacture of packaging 
products that are not genera lly imported or exported. 
 Australia is currently rationalising the concession schedule in the Tariff Act to make it easier to 
understand and use.  Once the rationalisation process is  complete, it is anticipated that CIM and other 
concessions will be prioritised for further review. 
 WT/TPR/M/244/Add.1 
Page 66  
 
 (4) M EASURES AFFECTING PRODUCTION AND TRADE  
(v) Intellectual property rights  
Page 82, Paragraph 135
:  The Secretariat Report notes that, in the case of trademark infringement by 
companies, monetary penalties for companies found guilty of trademark offences can be up to 
five times that of monetary penalties for individuals.   
 
Question  
 
Please describe the level of monetary penalties fo r companies found guilty of copyright offences. 
 
Answer  
 
In accordance with Part 2.5 of the Criminal Code, a court can order a penalty of up to five times the 
maximum individual penalty for a company that  is found guilty of copyright offences.  
  
Page 83, Paragraph 136 :  The Secretariat Report notes "In 20 08, in general, representatives of key 
industries viewed civil proceedings as time-cons uming and costly, with losses frequently not 
recovered even when proceedings were successful…v ery few IPRs crimes are pursued at a federal 
level and less well-resourced victim s of IPRs infringement tend not to pursue either civil or criminal 
remedies."  Question
 
 
In light of this statement, what measures is Aust ralia taking to ensure that it is providing for the 
possibility of adequate damage awards in  connection with TRIPS Article 45?   
 
Answer  
 
Australian law provides tools to assist IP rights owne rs to robustly protect their interests and enforce 
their rights.  Australian legislation provides courts  with the ability to award adequate damages as 
required in Article 45 of TRIPS.  For example, section 115 of the Copyright Act 1968 and section 126 
of the Trade Mark Act 1995 allow IP owners to receive compensation in the case of copyright and 
trade mark infringement.  Remedies which can be awarded through these provisions include damages, 
account of profits or injunctions.  The courts hear ing these cases also have the power to compel an 
infringer to pay for the IP owner’s legal costs.    
Because it can be difficult to assess the damages su ffered by a rights holder, Australian courts can 
also require the infringer to pay ‘additional damages’  in some instances.  Presently, courts have the 
power to make this sort of order for infringeme nts under sections 115(4) of the Copyright Act 1968, 
section 75(3) of the Designs Act 2003 and section 122( 1A) of the Patents Act 1990.  A proposal has 
been made to implement similar laws for trade mark infringements under the Intellectual Property 
Laws Amendment (Raising the Bar) Bill 2011). 
 
Australia’s system of additional damages confers a very broad and flexible discretionary power on the 
Court in awarding damages – which goes well beyond the requirements of Article 45 of TRIPS.  It 
provides the Court with the flexibility to set da mages above the damage which a right holder can 
demonstrate having suffered, as there is no limit on th e amount of damages that a Court can award.   
The Court has discretion to award additional damage s where infringement is established regardless of 
whether compensatory damages are awarded.  The Court may also reward relief based on the flagrancy of the infringement and the n eed to deter similar infringements.   
  WT/TPR/M/244/Add.1 
 Page 67 
 
 
  Legoe J of the Supreme Court of South Australia described s 115(4) of the Copyright Act 1968 as 
giving Australian courts "the wid est possible discretionary power to compensate the plaintiff for its 
loss and damage occasioned by the infringement, whet her such loss or damage is classified as of an 
exemplary or aggravated or even punitive na ture" (Concrete Systems Pty Ltd v Dev Symonds 
Holdings Ltd (1978) 20 SASR 79 at 85).    Question
 
 
The Secretariat Report focuses only on the cost of litigation and the lack of  recovery of monetary 
awards in civil cases as factors that influence a corporation or individual not to pursue remedies in 
court.  Why, in the government’s view, are vic tims of intellectual property rights infringement 
reluctant to pursue criminal remedies for copyright infringement in Australia? 
 Answer
 
 
Law enforcement agencies make decisions about pursuing criminal matters as appropriate, not 
stakeholders.  Decisions about law enforcement action follow a case prioritisation model.  There has been successful prosecution of criminal offences fo r intellectual property infringement in Australia 
since 2008, and the Government has noted a signifi cant increase in cooperation between copyright 
owners and law enforcement agencies.    
 
BRAZIL
 
 
WT/TPR/S/244:  III. TRADE POLICIES AND PRACTICES BY MEASURE (4) M
EASURES AFFECTING PRODUCTION AND TRADE   
(v) Intellectual property rights 
 
Question  
 
Paragraph 135 of document WT/TPR/S/244 notes that , currently, "customs does not have similar 
seizure powers in relation to pate nts". Given the recent conclusion of the Anti-counterfeiting Trade 
Agreement (ACT), of which Australia is a part, is Australia supposed to review the referred provision 
to comply with its obligations in  ACTA? If so, in what sense?  
 
Answer  
 
No, Australia is not required to review the referred provision to comply with its obligations in ACTA.  
The relevant ACTA obligations on border measures (Section 3 of Ch apter II) do not apply to patents 
(Article 13 ACTA), therefore there is no obliga tion on parties to implement border measures for 
patents. Australia is not requi red to implement laws to seize and hold imported goods infringing 
patent laws as a result of ACTA.    
 WT/TPR/M/244/Add.1 
Page 68  
 
 SWITZERLAND  
 
Report by the Secretariat 
 
I. ECONOMIC ENVIRONMENT 
(1) O VERVIEW  
 
Questions  
 
Could the Australian authorities indicate how they intend to cope with these challenges? Are there 
structural reform measures in p reparation that would be conducive to improved competitiveness of 
the non-mining economy and what would be the main co mponents of such a program? In this context, 
are the Australian authorities considering any plans to reduce the distorsion in resource allocations 
which are caused by some trade and trade-related po licies, mentionned in other parts of the report, 
such as the pervasive use of antidumping meas ures, widespread assistance to certain domestic 
industries such as the automotive sector and re liance on local contents requirements in some 
instances? 
 
Answer s 
 
The Australian Government is implementing a broad,  multi-faceted productivity agenda targeting the 
short, medium and long-term drivers of productiv ity growth through the following initiatives: 
 
• Maintaining macroeconomic stability – including  low and stable inflation which provides 
certainty for firms and individuals thereby encouraging greater investment and innovation;  
• Ensuring that the economy is flexible and that  incentives exist to encourage our labour and 
capital resources to move to their highest va lue uses through reforms to the regulatory 
environment and competition;  and  
• Well-targeted investments in skills, infrast ructure and innovation and reforms to early 
childhood development, secondary and tertiary education, skills and workforce development 
and preventive health.  
 In addition, options for a further wave of regulat ory and competition reforms to improve Australia’s 
productivity are being pursued through COAG.  Fu rther scoping work currently underway includes 
options to:  
• Encourage the more efficient operation of, and investment in, key sectors such urban water, 
land transport. And the development of further opt ions for a future regulatory reform agenda.  
 
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(6) T
RADE AGREEMENTS AND ARRANGEMENTS  
(i) WTO  
Question
 
 Could the Australian authorities explain the reasons why, so far, despite its status of a developed 
economy, Australia has not found it useful to participate in plurilateral and sectoral agreements 
which are essentially extending further market access?  
  WT/TPR/M/244/Add.1 
 Page 69 
 
 
  Answer  
 
In relation to the WTO plurilateral Government Procurement Agreement (GPA), Australia has not 
joined the existing agreement due to concerns about  the additional levels of regulation which would 
be required, potentially resulting in a less effici ent procurement system. Australia acknowledges that 
many of these concerns appear to have been addr essed in the provisionally agreed revised text, but 
will need to consider whether Australia’s existi ng arrangements would meet all requirements of the 
revised GPA.  In terms of market access, Australia , like the majority of GPA members, maintains an 
open and non-discriminatory procurement system, with only limited exceptions. Australia has 
international procurement commitments via a numbe r of its RTAs and effectively extends to the 
goods, services and suppliers of all WTO members the same treatment it is obliged to extend to RTA 
partners such as the United States and Chile.  
III. TRADE POLICIES AND PRACTICES BY MEASURES  
(1) O
VERVIEW (PARA . 2) AND  
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(ii) Tariffs  
(c) Bound rates (para. 17)  
Questions
 
 
Which measure(s) does Australia envisage to take to increase the predictability and certainty for 
trade operators? What is the rationale for havi ng such a binding overhang between MFN bound and 
applied rates since the possibility to increase applie d rates has not been used and the applied rates 
have been decreased?   
Answer
 
 
The gap between Australia’s average bound MFN tari ff rates and average applied MFN rates reflects 
the significant unilateral tariff reductions which Au stralia has undertaken since the 1980s.  Far from 
providing an environment of unpredictability and uncerta inty for trade operators, Australia has in fact 
provided an extended period of certainty for trader s by enshrining a series of scheduled applied tariff 
reductions across automotive and textile, clothing and footwear products in legislation.  The last 
scheduled tariff reduction occurred on 1 January 2010, and the next scheduled reduction will occur on 
1 January 2015.  As of this date , Australia will apply no tariffs at  an ad valorem value above 5%. 
 
(ii) Tariffs  
(b) Applied MFN tariff  
 Tariff dispersion and escalation (para. 16) 
 
Question
 
 
Does Australia envisages to take measures to ensure a better allocation of resources (i.e. to reduce 
this escalation)? If yes, which ones? 
 
Answer  
 
The purported existence of peaks and escalation in Au stralia’s tariff schedule is purely a reflection of 
the very low overall average tariff rates which Australia  applies.  Australia’s tariffs are applied at an 
ad valorem rate of 5% or less across all tariff lines, aside from certain textiles and clothing items, 
which are applied at 10%, and a very small number  of items (cheese and curd, fruit juices and used 
passenger motor vehicles) which attract a specific duty.  WT/TPR/M/244/Add.1 
Page 70  
 
  
As discussed above, since the 1980s Australia has undertaken a domestic reform process which has 
seen a substantial reduction in overall tariff rates, an d the removal of tariff peaks and escalation.  This 
process will continue on 1 January 2015, when tari ffs on remaining textiles and clothing items will be 
reduced from 10% to 5%. 
 
(ii) Tariffs  
(c) Bound tariff (para. 18) 
 
Question  
 
Could Australia provide an update of the certificati on's situation of the HS96 and 2002 changes to its 
schedule? When does Australia fo resee to complete these procedures ? 
 
Answer  
 
Australia is continuing to work  through a range of domestic processes and the implications of 
developments in relation to sub sequent revisions of the Harmoni sed System (HS) including HS2007 
and HS2012.  Further, as there has been agreemen t that Doha Round schedules will be submitted in 
the HS2002 format, there are issues to consider further in relation to the appropriate staging of formal 
ratification of a HS2002-consistent schedule.   
 
While Australia is yet to finalise domestic pro cedures in relation to earlier nomenclatures, we are 
aware of the importance of transparency of bound rat es.  In that context, Australia is one of only two 
WTO Members to have submitted its draft schedul e of bound rates in the HS2007 nomenclature for 
the consideration of members.   
 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(vi) Contingency Measures 
(a) Antidumping and countervailing measures 
 Question
 
 Para. 36  of the Secretariat’s report indicates that  while a 2009 Productiv ity Commission report 
recommended retaining the existing antidumping  and countervailing system, this system had a 
number of deficiencies which, if not addressed, will  continue to impose a net cost on the economy. 
Could the Australian authorities indicate which th ese deficiencies are and what kind of reforms of 
these instruments they envisage in order to reduce their costs to the economy? In particular, could the 
Australian authorities indicate whether these cost s are linked to inserting Australian companies in 
global supply chains, which, in the absence of  a large recourse to antidumping measures could 
benefit both from cheaper and better imported inputs and, hence, allow the development in Australia 
of higher value-added industries, a development wh ich could precisely contribute to improve the 
competitiveness of the non-mining sector?  
Answer
 
 
The Productivity Commission (PC) concluded that Australia retain an anti-dumping/countervailing 
system, given that the benefits of providing access to anti-dumping remedies comes at a very small 
overall cost to the community.  The PC expressed th e view that the current anti-dumping system has 
some deficiencies. The PC made 20 recommendations  for changes to improve the operation of the 
current system. Details of the findings and recommenda tions are set out in the PC's report available at: 
http://www.pc.gov.au/projects/inquiry/antidumping/report  
  WT/TPR/M/244/Add.1 
 Page 71 
 
 
  The Australian Government is considering the PC's  report and recommendations to ensure that any 
changes made will deliver the intended benefits and still comply with Australia's international 
obligations.  
(viii) Government procurement 
 
Question
 
 
Could the Authorities of Australia explain in which specific areas the GPA would not be an 
Agreement consistent with its approach to  regulation in the public sector?  
 
Answer  
 
As stated in the response to Switzerland’s question re lating to paragraph 17 of the Secretariat’s report, 
a key concern of Australia, regarding the existing GP A is that it requires parties to run procurement 
processes in accordance with a range of prescriptive and inflexible rules. Examples include provisions 
on Selective Tendering, Time limits , Negotiations, Treatment of Tende rs and Awarding of Contracts, 
Limited Tendering, all of which contain  degree of over-prescription or inflexibility that would inhibit 
Australia’s practices without genuine benefit to either dom estic or foreign suppliers. 
 In terms of market access, Australia, like the ma jority of GPA members, maintains an open and non-
discriminatory procurement system, with only li mited exceptions. Australia has international 
procurement commitments via a number of its RTAs  and effectively extends to the goods, services 
and suppliers of all WTO members the same treatment it is obliged to extend to RTA partners such as 
the United States and Chile.  Question
 
 
Australia maintained its target of sourcing of at least 10 % of purchases by value from small and 
medum-size entreprises (SMEs). Do these provisions apply to all SMEs or only to SMEs based in 
Australia ? What are the criteria u sed by Australia to define a SME ? 
 
Answer  
 
The 10% target referred to in the report is correct , though it is worth noting that no specific preference 
policies are required to achieve this level of  SME participation (see http://www.finance.gov.au/ 
publications/statistics-on-commonwealth-purchasing-cont racts/index.html). At the central (Federal) 
government level, the Commonwealth Procuremen t Guidelines (CPGs) define an SME as "…an 
Australian or New Zealand firm with fewer than 200 full time equivalent employees".  The definition 
of SME at the sub-central level of government varies depending on the jurisdiction.  Further 
information on the procurement policies of the Au stralian States and Territories can be found at 
https://www.tenders.gov.au/?event=public.relatedlink.list    Question
 
 
Various states incorporate "buy local" and/or pri ce preferences for local goods in their procurement 
policies which could reach up to 20 % in certain states. What are the legal bases of these local 
preferences (national legislation(s) , local legislation(s), laws, ordinance, policies, guidelines, etc.)? 
Are these preferences of a permanent nature or do  the legal bases forsee a phasing out of these 
regimes? 
 WT/TPR/M/244/Add.1 
Page 72  
 
 Answer  
 
The sub-central government policies referred to in  paragraph 69 of the report are targeted at 
supporting SMEs. Australia’s RTA government procur ement chapters include an exception to allow 
for policies to preference SMEs. These policies ar e therefore entirely consistent with Australia’s 
international government procur ement obligations. Further information on these policies can be 
obtained at https://www.tenders.gov.au/?event=public.relatedlink.list   
(ix) Local-content requirements 
 
Question
 
 
In para 74 , the Secretariat’s report indicates that loca l-content requirements remain in place in a 
number of areas.  Could the Australian authorities cl arify how there measures are consistent with the 
requirements of the WTO Agreement on trade-related  investment measures since no notifications of 
TRIMs have been made during the period under review?   
Answer
 
 
With respect to government procurement arrangeme nts for motor vehicles, Australia considers that 
these measures fall within GATT Article III:8(a).  W ith respect to assistance provided by EFIC, the 
amount of export finance EFIC will consider for a cont ract reflects the value of the Australian content 
in that contract plus any foreign content that EFI C also deems eligible for finance.  The Australian 
content includes labour, goods and materials; servic es; the exporter’s profits, overheads and financing 
costs; and insurance, shipping and air freight costs fr om Australia.  With respect to foreign investment 
requirements in the broadcasting services sector, broadcasting services are not subject to the 
disciplines of the TRIMS Agreement.   
 Australia does not consider any of these measures re quire notification under the TRIMs Agreement.  
 
(4) Measures affecting production and trade 
(iii) Competition and consumer policy 
(a) Competition policy 
 
Question
 
 Para. 102 of the Secretariat’s report indicates that despite a ten-year programme of review and 
revision, a long list of special regimes and exemptions  derogating to the Trade Practices Act (TPA) 
remains. Such exemptions to the TPA  are maintained in particular  for international liner cargo 
shipping at the national level. Could the Australian authorities indicate the rationale for continuing to exempt maritime transport from competition rules?  
 
Answer
 
 
The Australian Government is committed to stre ngthening Australia’s shipping industry and is 
considering a further review of Part X, noting the changing shipping environment. No decision has 
been made to date to commence such a review.  
 
The Government remains supportive of the current regulatory approach as expressed in Part X of the 
Competition and Consumer Act 2010 (formerly the Trad e Practices Act 1974). This is to allow linear 
shipping firms to operate in a way consistent with the majority of our trading partners with a high 
level of transparency afforded by the Linear Shi pping Register. Shipping lines must meet a range of 
regulatory requirements and are not exempt from all competition requirements. They must not engage  WT/TPR/M/244/Add.1 
 Page 73 
 
 
  in anti-competitive behavior such as abuse of market power or unfair pricing. They may also be 
subject to investigation by the Australian G overnment competition regulator, the Australian 
Competition and Consumer Commission.   Australian shippers are provided with counterba lancing powers under Part X to enable direct 
negotiation over issues as they arise. Shippers and ot her affected parties have a range of options for 
investigation should they be unhappy with the outcomes of negotiations.  
 
(iv) Corporate governance 
 
Regarding para. 113  of the Secretariat's report, could the Australian authorities explain the 
legislative or non-legislative changes which took  place since 2007 concerning mutual director 
disqualification with other countries? 
 
Answer
 
 
Paragraph 113 of the report provides that legisl ative changes since 2007 include mutual director 
disqualification with other countries.  Section 206B of the Corporations Act 2001 was amended in 
2009 to provide that a person is automatically disqua lified from managing corporations if the person 
is disqualified under an order made by a court of a foreign jurisdiction from being a director or being 
concerned in the management of a company.   
 
Additionally, the Australian Courts' power to disqua lify people from managing corporations has been 
extended.  These provisions enable Courts to dis qualify a person from managing corporations if that 
person has been disqualified under the law of a fore ign jurisdiction from being a director, or taking 
part in the management, of a foreign company, provid ed that the Court considers disqualification to be 
appropriate and justified (section 206EAA). 
  A foreign jurisdiction must be prescribed by the regul ations to classify as a foreign jurisdiction for the 
purposes of subsection 206B(6).  Regulation 2D.6.0 1 of the Corporations Regulations 2001 outlines 
that the prescribed countries will be provided in th e table in that regulation.  Currently only New 
Zealand is a prescribed foreign jurisdiction. 
 
IV. TRADE POLICIES BY SECTOR 
(2) A
GRICULTURE , LIVESTOCK , FORESTRY , AND FISHERIES  
(ii) Main developments (a) Border measures 
 
Question
 
 
In para. 16 , the Secretariat's report notes that exports  and/or production of certain dairy, grain, 
horticulture, livestock, and wines/grapes commodities remain subject to levies. Could Australia 
explain the precise scope of such levies (by pr oduct and year) and how the potentially amplifying 
effect on world market prices in case of price pe aks of such levies is assessed? Does Australia 
envisage a phasing-out of such measures in  the near future ? How are the levies spent? 
 
Answer  
 
Levies and Charges are initiated at the request of an industry. The industry representative body 
identifies the need for a levy or charge to respond to a problem or opportunity that will benefit its industry. If this requires collective industry funding, the organisation puts a levy proposal to its members and if approved a levy or charge is put in place. 
 WT/TPR/M/244/Add.1 
Page 74  
 
 Industry members pay primary industry levies and charges to fund research and development (R&D), 
marketing and promotion, plant and animal health programs and residue testing activities that benefit 
industry. In many cases, and within certain prescrib ed limits, the Australian Government matches the 
R&D component of levies on a dollar for dollar basis.  
Any decision to cease levies and charges is for industry to determine. 
 
(3) M
INING AND ENERGY  
(ii) Energy 
 
Question  
 
In para. 43 , the Secretariat's report notes that although most state government fuel subsidies to 
consumers were abolished (New South Wales, Queensl and, Victoria, Northern Territory, Tasmania), 
some state governments continue to provide subsid ies at the retail level to reduce the price of 
unleaded petrol and diesel paid by consumers (Queensland, New South Wales, South Australia, 
Northern Territory). The petroleum subsidy scheme in South Australia, which provides subsidies of up 
to 3.3 cents per litre for diesel and unleaded petrol  purchased in "regional areas", was to be 
abolished as of 1 January 2011. Could the Australian authorities explain the situation in this respect 
in the other territories mentioned in the br ackets (Queensland, New South Wales, Northern 
Territory)? Are they planning, in order to be in li ne with the National Strategy on Energy Efficiency, 
to abolish/reduce fossil fuel subsidies as well in  the near future or are they carrying on their current 
subsidy policies? 
 
Answer  
 
The Queensland Fuel Subsidy Scheme and the New South Wales Petroleum Products Subsidy 
Scheme were abolished on 1 July 2009.  The No rthern Territory scheme was abolished from 5 May 
2009.    COSTA RICA
 
 
Trade policy 
 
Question  
 
According to paragraph 12, provis ions of legislation implementing certain international treaties 
(none of them relating to the WTO) have been addressed by Australian courts.  Would Australia 
please specify whether any of these internationa l treaties are preferential or regional trade 
agreements?  If so, with which partners did it conclude these treaties and what were the subject matters of the provisions addressed by the courts? 
 
Answer
 
 
Australia’s commitments under trade treaties are largely implemented in domestic law through the 
enactment of statutes and regulations.  Over time, some provisions of those statutes and regulations 
will be the subject of consideration and interpre tation by Australian cour ts.  Under Australia’s 
common law system, courts are bound (within prescribed limits) to follow the legal principles found in prior decisions of superior courts.  As a result,  decisions of Australian superior courts can also 
affect the interpretation and application of statut es and regulations implementing Australia’s trade 
agreement obligations.  
  WT/TPR/M/244/Add.1 
 Page 75 
 
 
  For the period under review (2007-2011), Australia is not able to provide an  exhaustive list of all 
cases in which Australian courts addressed legisl ative provisions implementing preferential or 
regional trade agreements.  We belie ve such cases to be relatively rare. 
 Examples of such cases in relation to preferential or regional trade agreements include two cases (in 
2008 and 2011) where the Full Court of the Federal Court addressed statutory copyright provisions as 
amended by the US Free Trade Agreement Implementation Act 2004 (Cth).   
  Since preparing paragraph 12 of Australia's repor t for its 2011 Trade Policy Review, Australia has 
identified two domestic court decisions from th e period under review which address Australian 
legislation implementing WTO obligations.  These were both Federal Court decisions interpreting 
provisions of the Customs Act 1901 (Cth)  which implement, in part, Au stralia’s obligations under the 
Agreement on the Implementation of Article VI of  the General Agreement on Tariffs and Trade 1994. 
 
Question
 
 
Paragraph 13 states that there are "eight areas of  competition reform".  What are these eight areas? 
 Answer
 
 
A description of the 27 deregulation priorities a nd eight competition reforms under the SNE NP, and 
the other non-SNE NP reforms, can be found in the implementation plans, which can be accessed 
from the following websites:  http://www.coag.gov.au/coag_meeting_outcom es/2011-02-13/docs/revised_np_sne_part_1_ 
deregulation_priorities_imp_plan.pdf 
 
http://www.coag.gov.au/coag_meeting_outcom es/2011-02-13/docs/revised_np_sne_part_2_ 
deregulation_priorities_imp_plan.pdf  http://www.coag.gov.au/coag_meeting_outcomes/ 2011-02-13/docs/revised_imp_plans_coag_ 
deregulation_reforms _outside_npa_sne.pdf 
 Question
 
 
Footnote 9 at the end of paragraph 13 mentions t hat one improvement on which it would be desirable 
to continue working is to "pursue and expand effort s to harmonize FTAs signed by Australia".  Has 
Australia identified the key aspects where harmoniza tion is needed (that is, where divergence is 
greatest) between its various free trade agreements?  If so, what are these aspects, and has any plan 
been established in this respect?  Answer
 
 Australia takes a consistent approach to its FTA  negotiations, seeking comprehensive, high quality, 
single-undertaking, WTO-consistent outcomes.  In Au stralia's view this approach is most likely to 
maximise the level of trade liberalisation that an  FTA will produce overall and meet our objective of 
harmonising our FTAs.   This is particularly important in certain areas such as Rules of Origin where consistent outcomes across FTAs can have trade li beralising potential in relation to minimising 
administrative costs associated  with trade.  However, as 
each FTA is the result of a negotiation, 
shaped by the range of interests and sensitivities of  the parties, it is unrealistic to expect a close 
alignment of all FTA outcomes in all areas.  WT/TPR/M/244/Add.1 
Page 76  
 
 Question  
 
Paragraph 16 mentions that "[d]espite trade openness and certain policy developments, trade and 
trade-related policy instruments continue to be u sed to support the same ac tivities in different ways 
(e.g. automotive, textiles, clothing and footwear, key infrastructure services), thus distorting resource 
allocation in the economy (Chapter IV)".  In what way do these policies distort resource allocation in 
the economy and how have the forms of support for these activities been modified (i.e. how has the 
way of providing such support changed)?  Answer
 
 
The suggestion that Australian trade policy instrument s "distort resource allocation" in the economy is 
an assessment made by the WTO Secretariat and not  the Australian Government.  The Australian 
Government has undertaken significant reform to reduce distortions in the economy, including through legislated reductions in import tariffs on automotive and TCF imports - which will all fall to 
5% by 2015.  Further, the Australian Government  has adjusted other support programs to encourage 
greater innovation in these sectors.  
Trade agreements and arrangements 
 Question
 
 
According to paragraph 32 (page 27), Australia has  continued to grant preferential treatment 
unilaterally to imports from developing and least de veloped countries.  Has Australia considered the 
possibility of extending such preferences to oth er developing countries, more specifically in 
Latin America? 
 
Answer  
 
Australia grants LDCs duty-free and quota-free entry on all products.  Aust ralia, under its broader 
Generalised System of Preference (GSP) scheme, also provides tariff preferences of varying degrees to all developing countries including La tin American developing countries.   
 Aid for trade  Question
 
 
Costa Rica would be interested to know what are the main instrument s and mechanisms used to 
process AFT applications.  More specifically, it would be  interested in further details on the following 
points: 
 
According to paragraph 19 of Part II of the Secretar iat Report, "Australian aid for trade is made 
through multilateral, regional and bilateral arra ngements".  What kinds of arrangement are 
involved?  Are these trade cooperation arrangeme nts or are they part of broader agreements, for 
instance in the form of a chapter or specific secti on on cooperation within a trade agreement?  Is it 
necessary to negotiate a multilateral, regional or b ilateral arrangement in order to gain access to 
Australian trade-related cooperation funding?  
Answer
 
 
The Australian Agency for Interna tional Development (AusAID) does not have a specific aid or trade 
program or facility.  It is not necessary to negotiate  a multilateral, regional or bilateral arrangement in 
order to gain access to Australian development funding.   WT/TPR/M/244/Add.1 
 Page 77 
 
 
   
Australia’s trade and development activities are wi de-ranging and include multi lateral, regional and 
bilateral activities  
• multilaterally – includes Australian support for the WTO’s Global Trust Fund (AUD2 million 
in 2010 and the Advisory Centre on WTO Law (AUD3 million)  
• regionally - support for regional bodies facilitating tr ade, include the Secretariat of the Pacific 
Community (for quarantine and standards issues), Oceania Customs Organisation (for customs management), and for trade agreements (e.g. ASEAN-Australia-New Zealand FTA, PACER Plus);  and 
• bilaterally – through AusAID’s country pr ograms eg support for countries when 
implementing reforms, developing infrastruct ure, building human capital and developing 
markets for trade 
• since the launch of the ASEAN- Australia-N ew Zealand FTA (AANZFTA) negotiations in 
2004, FTAs have become a feature of DFAT’s regional aid for trade engagement. Such aid 
for trade activities, generally referred to as “economic cooperation”, are aimed at supporting 
capacity-building, economic reforms and regional economic integration.   
 
Question
 
 
Are there regulations covering the procedural re quirements for taking steps of this nature, 
specifically aimed at requesting s upport in trade-related areas? 
 Answer
 
 
All Latin America countries are able to access sma ll grants funding including Australia Awards 
(education scholarships and fellowships) and the Pub lic Sector Linkages Program (to build capacity in 
Latin America public sectors).  These activities are competitive and merit based with a number of rounds held each year.    Outside of small grants program, AusAID works in  partnership with multilateral and other donors to 
provide development assistance to the region.  Re quests for development assistance are considered 
based on AusAID strategic priorities for Latin America and the priorities of its partners. 
 
Question
 
 
Are there eligibility criteria for accessing cooperation funds for aid-for-trade purposes?  How are the 
funds allocated?  Answer
 
 
See Answer above.  More details on application gui delines (including for the Public Sector Linkages 
Program) can be provided on request or accessed on the AusAID website 
(http://www.ausaid.gov.au/business/other_opps/default.cfm). 
 
Question  
 
Is the Australian Agency for International Developmen t (AusAID) responsible fo r such tasks?  Does 
the Agency act as a kind of central office for these types of procedure or does it have any coordinating 
authority within the Australian Government in th e cooperation sphere?  Does it have an office in 
Latin America?  WT/TPR/M/244/Add.1 
Page 78  
 
 Answer  
 
AusAID is responsible for administering Austra lias’s overseas development assistance, including aid 
for trade.  AusAID and DFAT have primary coor dination responsibility, however Australia’s aid for 
trade activites engaging a wide range of agencies  across Government, including the Department of 
Foreign Affairs and Trade, Austrade, Department of Agriculture Fisheries and Forestry, Customs, 
Attorney Generals Department, Treasury, Aust ralian Competition and Consumer Commission, 
Standards Australia, IP Australia, Department of the Environment, Water, Heritage and the Arts, 
Department of Employment and Workplace Relations , Department  of Innova tion, Industry, Science 
and Research.   
 
In Latin America, AusAID has an  office in Santiago, Chile.   
 
Measures affecting imports 
 
Question  
 
Paragraph 19 (page 39) refers to TRQs.  Is there still  a TRQ on tobacco despite the fact that the MFN 
tariff for this item is set at zero?  Answer
 
 
Australia does not apply its rights to a tariff-rate quota on tobacco.  Tobacco is subject to zero duty. 
 
Question  
 
Have all the tariff concession schemes to support loca l industry been notified to  the WTO?  Do they 
apply to all sectors?  Does treatmen t differ if a sector is located in a less developed area of the 
country?  Answer
 
 Australia's tariff concession schemes are not specific subsidies and hence not notifiable.  Australia 
publishes information about these schemes on th e internet (http://www.customs.gov.au/site/ 
page4373.asp). 
 
Question
 
 
Paragraph 34 mentions that under the ANZCERT A Agreement Australia and New Zealand have 
precluded anti-dumping action in trade between the two countries.  As New Zealand is one of 
Australia's major trading partners, how is the ex clusion of anti-dumping action dealt with in cases 
where New Zealand is one of the key suppliers of a product under investigation?  Does Australia 
apply a specific method for disaggregating the ne gative effects of such imports for the domestic 
industry?  How does Australia ensure, in an anti-dump ing investigation, that the injury caused by the 
products under investigation does not derive from imports from New Zealand?  Are such 
considerations taken into account in the conduct of anti-dumping investigations? 
 
Answer  
 
Australia does not initiate anti-dumping action agains t New Zealand pursuant to its RTA with New 
Zealand (ANZCERTA).  During the course of an anti- dumping investigation, Australia treats imports 
from New Zealand similar to how it would treat impor ts from any other country not a subject of the 
investigation.  When determining whether dumped imports have caused material injury to a domestic  WT/TPR/M/244/Add.1 
 Page 79 
 
 
  industry, Australia considers the influence of other factors to ensure that any injury caused by such 
factors is not attributed to the dumped imports.    In conducting this analysis, Australia ensures that  any injury found to be caused by imports from New 
Zealand is not attributed to dumped imports.  Question
 
 
According to paragraph 36, the 2009 report of the Productivity Commission notes that the 
anti-dumping and countervailing system has a number of deficiencies which, if not addressed, will 
continue to impose a net cost on the economy.  On e of the deficiencies listed in footnote 35 is 
"alignment of the subsidies provisions with the Subsidies and Countervailing Agreement".  Would 
Australia please explain what was meant by the Productivity Commission in highlighting this shortcoming?  
Answer
 
 
The Productivity Commission recommended as part of its reform package that Australia’s list of 
actionable subsidies should be ali gned and kept aligned with the lis ts in the latest relevant WTO 
agreements (Rec 6.8).  This recommendation refl ects the Commission's finding that "Australia has a 
more limited list of countervailable subsidi es than that permitted by the WTO" (p. 54). 
 Question
 
 
Paragraph 37 states that Australia has no spec ific legislation for the imposition of safeguard 
measures.  Nonetheless, this same paragraph mentions  that an investigation on increased imports of 
frozen pig meat was initiated in October 2007 and wa s terminated in April 2008 without the adoption 
of any safeguard measures.  Would Australia please specify on which legislation the conduct of this 
investigation was based?  Answer
 
 Australia’s safeguards investigation procedur es are contained in the Commonwealth Gazette 
No S 297 of 25 June 1998 (as notified to the WTO in document G/SG/N/1/AUS/2 of 2 July 1998) and 
amended by Commonwealth Gazette  No GN39 of 5 October 2005 (as notified to the WTO in 
document G/SG/N/1/AUS/2/Suppl. 1 [ PDF ] of 16 December 2005). 
 
Government procurement (pages 54-59)  
Question
 
 
Paragraph 62 - Are there reasons of economic po licy or specific regulations that explain why 
government trading enterprises have dominated the prov ision of infrastructure works?  If so, what 
were the grounds for such policies or regulations? 
 Answer
 
 
The Australian Government (Central) does not main tain a list of 'infrastructure works that the 
government trading enterprises (GTEs) dominate'.  The paper referred to in the report of the 
secretariat was released by Infrastructure Australia  in relation to cross-jurisdictional governance of 
infrastructure delivery.  It does not deal with trad e policy or related measures.  GTEs are not part of 
the governance framework for the Australian Gove rnment (Central).  Clause 5.2 of the WT/TPR/M/244/Add.1 
Page 80  
 
 Commonwealth Procurement Guidelines (CPGs) , December 2008 (http://www.finance.gov.au/ 
publications/fmg-series/procurement- guidelines/index.html) states that:  
 The Australian Government procurement policy framework is non-discriminatory. All potential 
suppliers should have the same opportunities to co mpete for government business and must, subject to 
these CPGs, be treated equitably based on their lega l, commercial, technical and financial abilities. 
Procurement methods must not discriminate against potential suppliers due to their degree of foreign 
affiliation or ownership, location or size. The proper ty or services on offer must be considered on the 
basis of their suitability for their intended purpose and not on the basis of their origin.  The policy 
includes no provisions relating to 'domination' nor to  'GTEs' or 'exception for private competition'.  
 Question
 
 Paragraph 63 - Is government procurement in  Australia open to all goods, services and foreign 
providers without discrimination, or is it rest ricted to countries covered by preferential 
arrangements? 
 Answer
 
 
The Australian Government procurement framework expressly requires the equal treatment of all suppliers, regardless of origin.  Clause 5.2 of th e Commonwealth Procurement Guidelines, December 
2008 (http://www.finance.gov.au/publications/fmg-ser ies/procurement-guidelines/index.html) state 
that:   The Australian Government procurement policy framework is non-discriminatory. All potential 
suppliers should have the same opportunities to co mpete for government business and must, subject to 
these CPGs, be treated equitably based on their lega l, commercial, technical and financial abilities. 
Procurement methods must not discriminate against potential suppliers due to their degree of foreign 
affiliation or ownership, location or size. The proper ty or services on offer must be considered on the 
basis of their suitability for their intended pur pose and not on the basis of their origin.  
 Australia has international procurement commitmen ts via a number of its FTAs and effectively 
extends to the goods, services and suppliers of all WT O Members the same treatment it is obliged to 
extend to FTA partners.  
 
Question
 
 
Paragraph 64 - What are the criteria for determini ng the use of a given procurement procedure (open 
tendering, select tendering, and direct sourcing)?  What  is the time allowed for the submission of bids 
under each procedure?  In the case of direct sourcing, are registers or reports kept to justify the use 
of this particular procurement method?  Is there a process of review by authorities other than the 
contracting entity in the event of breach or default by the supplier?  Which is the competent authority 
for hearing appeals and what is  the timeframe for filing them? 
 
Answer  
 
The Australian Government maintains a flexible  government procurement framework with an 
emphasis on matching the procurement process to the size and risk profile of the procurement 
requirement.  While value for money can often be achieved through open tendering processes, the 
appropriate process for any given procurement must be evaluated case-by-case.  In some circumstances, selective tendering is appropriate an d can achieve best value for money.  In some 
circumstances, limited tendering will be appropri ate and achieve best value for money.  The 
procurement framework does not include prescrip tive requirements for determining the most  WT/TPR/M/244/Add.1 
 Page 81 
 
 
  appropriate procurement method.  Procurement prof essionals are expected to evaluate all available 
procurement methods as well as the capacity of the market in order to determine the procurement 
process that will best suit the specific situation case-by-case. 
 Time limits for open tendering and selective tendering are generally 25 days, as per the 
Commonwealth Procurement Guidelines (h ttp://www.finance.gov.au/publications/fmg-
series/procurement-guidelines/index.html).  Reports are kept of direct source processes.    
Default or breach by supplier is a contracting i ssue and suppliers in the Australian Government 
procurement market enjoy the same rights a nd responsibilities that exist in the commercial 
marketplace.  The judiciary is available to deal  with cases where the Government believes a supplier 
to be at fault.  This is part of the legal cont racting framework in Australia and not part of the 
procurement framework.  Normal timeframes appl y with regard to the Australian court system. 
 Question
 
 
Paragraph 65 - As regards the requirement that the entities obtain information from tenderers about 
their compliance with the Fair Work Act, how do es this requirement apply to tenderers that are not 
Australian nationals? 
 
Answer  
 
The Fair Work Principles user guide, availa ble at http://www.deewr.gov.au/WorkplaceRelations/ 
Policies/FairWorkPrinciples/Documents/FWPUser Guide.pdf, provides that:  The Fair Work 
Principles do not require overseas-based suppliers to comply with Australian laws that would 
otherwise not apply to them.  The Fair Work Principles do however require Commonwealth Entities 
to contractually require that such overseas supplie rs comply with all applicable workplace relations, 
occupational health and safety, and workers’ compen sation laws in the jurisdiction in which they are 
based.   Question
 
 Paragraph 66 - Is access to the AusTender webs ite free of charge?  Can bids be submitted 
electronically through AusTender?  
Answer
 
 
Access to the AusTender website is free of char ge.  AusTender’s functionality includes electronic 
submission and procuring entities are encouraged to utilise this functionality.   
 
Question  
 
Paragraph 67 - As regards the target of sourcing at least 10% of purchases from SMEs, is there any 
mechanism for monitoring and providing timely inform ation when this percentage has been reached? 
 Answer
 
 
As can be seen at the Australian Government Procurement Statistics website (http://www.finance.gov.au/publications/statistics-on-commonwealth-purchasing-contracts/index.html), the Australian Government (C entral) exceeds this with out the use of mandatory 
or voluntary measures.  This commitment is an acknowledgement that a government procurement WT/TPR/M/244/Add.1 
Page 82  
 
 market wholly reliant on large-scale supply would lack robustness and have difficulty demonstrating 
value for money. 
 
State trading 
 
Question  
 
What policies does the Rice Marketing Board apply to  control rice exports?  As regards rice imports, 
does the Board participate or intervene in any way?  (paragraph 79, page 60)  
Answer
 
 
The Rice Marketing Board for the State of New S outh Wales (RMB NSW) is the sole entity that 
continues to fall within the scope of the WTO de finition of a State Trading Enterprise. The RMB 
NSW helps promote the competitiveness of Australia n farmers by ensuring that rice grown in the 
State of New South Wales is marketed, particularly through the operation of an export "single desk". 
The RMB NSW’s primary function is to obtain the b est possible monetary return to rice growers 
consistent with the maintenance of orderly mark eting and operates under the authority of and in 
accordance with the Marketing of Primary Products Act, 1983, the Public Finance and Audit Act, 
1983 and the Annual Reports (Statutory Bodies) Act, 1984.  
The Australian market is open to competition from imports and significant quantities of rice are 
imported.  About 99% of total rice grown in Austra lia occurs in the State of New South Wales.  
Effective from 1 July 2006, the domestic marketi ng arrangements for rice grown in New South Wales 
were deregulated and a system of multiple author ised buyer permits for sales within Australia was 
introduced.  Entities wanting to participate in the domestic market for rice grown in New South Wales 
must apply to the RMB NSW to become an Authorised  Buyer.  Authorised Buyers are able to buy and 
sell rice grown in New South Wales on the domestic market in Australia.  For information on the NSW Government review of the RMB NSW, please refer to the following 
document: http://www.dpi.nsw.gov.au/__data/ assets/pdf_file/0008/373778/report-review-nsw-rice-
marketing-act-1983.pdf. Further information about th e RMB NSW is also available in Australia’s 
WTO STE notification. 
 Australia will abide by any final Doha Round Agr eement, including the abolition of export monopoly 
power. 
 
Intellectual property 
 Question
 
 
Will Australia issue legislation implementing the Amendment of the TRIPS Agreement?  Could the 
Australian delegation outline the preliminary results of the consultation launched to allow the export 
of pharmaceuticals to least developed and developi ng countries in the light of the Protocol?  
(paragraph 117, page 77)  Answer
 
 Australia is currently drafting amendments to Aust ralian laws to allow Australia to be a source of 
generic medicine for countries importing medicine under the TRIPS Protocol. 
 Public consultations were undertaken in 2010 on a proposed model for implementing the TRIPS 
Protocol in Australia. Submissions were received fr om a variety of stakeholders and were generally  WT/TPR/M/244/Add.1 
 Page 83 
 
 
  supportive of the proposals. The main  issue raised was whether the granting of the licence should be 
an administrative decision by the Commissioner of Patents or a judicial decision. Other concerns 
included that the process of applying for a licence should be as quick and simple as possible and that there must be sufficient measures to prevent pharmaceuticals being diverted from the intended 
recipients. 
 
The Government's final proposed model addresses many  of the concerns raised and gives the Federal 
Court power to grant and amend Protocol licences. An  exposure draft of the proposed legislation will 
be released to provide an opportunity for further pu blic comment before the legislation is introduced 
into Parliament.  Australia aims to implemen t the TRIPS Protocol by the end of 2011.   
 Question
 
 
With reference to paragraph 120, section (v) on in tellectual property rights (page 78), would 
Australia please explain the diff erence between a standard patent and an  innovation patent in terms 
of the requirements for obtaining the respective rights? 
 Answer
 
 
Innovation patents are intended to provide intellectua l property rights for those incremental and lower 
level inventions that would not be sufficiently invent ive to qualify for a standard patent. This is due to 
the inventive threshold being lower compared to a standard patent, that is, the innovation patent 
requires an innovative step rather than an inventive step.  Specifically, an inventive step requires an 
invention to be non-obvious to the person skilled in the art in light of the prior art whereas innovative 
step merely requires that the invention varies from th e prior art base in ways that make a substantial 
contribution to the working of the invention.  
 
An innovation patent is granted after a forma lities check but is only certified after substantive 
examination, which only occurs if directed by the Commissioner of Patents or by the patent owner or 
a third party.  An innovation patent owner can only enforce their rights if their patent has been certified. After substantive examination, the acceptance of a standard patent application is advertised 
for period of three months to allow for pre-gr ant oppositions.  If there are no successful oppositions 
during this period, the patent application will be sealed.  Despite the differences in terminology, a 
certified innovation patent and a sealed patent ha ve each undergone a substantive examination process 
and grant the patent owner an exclusive enforceable right.  Further information together with a comparison char t of innovation patent vs . standard patent is 
available on the IP Australia website at th is link: http://www.ipaustralia.gov.au/patents/ 
what_innovation.shtml  
 
Question
 
 
With reference to paragraph 123, section (v) on inte llectual property rights (page 79), are there 
instances of the courts having ordered the gr anting of compulsory lic ences where the reasonable 
requirements of the public have not been met in relation to the invention?  If so, would Australia 
please specify how many such cases have arisen  and provide information regarding the rulings? 
 Answer
 
 The Australian Government is not aware of any compulsory licenses having been granted by the 
courts in Australia. There have however been a small number of cases where an application for a 
compulsory licence has been considered (see  FASTENING SUPPLIES  PTY. LTD. v. OLIN 
MATHIESON CHEMICAL CORPORATION [1969] HCA 61; (1969) 119 CLR 572 ). The effect of WT/TPR/M/244/Add.1 
Page 84  
 
 the Compulsory Licensing provisions in Australia has also been considered in a number of reviews. 
See for example Chapter 27 of the Australian Law Reform Commissions review of Gene Patenting 
and Human Health (2004). 
 
Competition policy (pages 70-75) 
 
Question  
 
Paragraph 100  - What are the key reforms proposed in the Competition and Consumer Legislation 
Bill, particularly with respect to mergers and acquis itions?  What is the current status regarding the 
bill? 
 Answer
 
 
The Competition and Consumer Legislation Am endment Bill 2010 (CACLAB) proposed amendments 
to clarify the operation of the mergers and acquis itions provisions (section 50) of the Competition and 
Consumer Act 2010 (CCA) (formerly the Trade Pr actices Act 1974) in relation to ‘creeping 
acquisitions’ and the unconscionable conduct provisi ons in Chapter 2 of the Australian Consumer 
Law (CCA, Schedule 2).    CACLAB was designed to: 
• amend section 50 of the CCA to clarify its application to ‘creeping acquisitions’; and 
• introduce interpretative principles to make the unconscionable conduct provisions clearer 
and to ensure that they can be more effectively understood and enforced.   
 The amendments in CACLAB were intended to amend section 50 of the CCA to: 
• clarify the ability of courts and the ACCC to  consider more geographically confined 
markets than what may be currently consid ered ‘regional’ markets, to ensure that 
individual small acquisitions can be assessed under section 50; and 
• clarify that a court or the ACCC can consider the impact of a proposed merger on 
competition in ‘any’ market, ensuring cons ideration can be given to the competitive 
impacts of a merger on multiple markets in the one investigation. 
 CACLAB passed the House of Representatives and w as awaiting introduction into the Senate prior to 
lapsing at the prorogation of the 42nd Parliament before the 2010 Election.  
 Question
 
 
Paragraph 101 - Does the Trade Practices Act provide for prior vetting of mergers, or is vetting only 
performed once the merg ers have taken place? 
 
Answer  
 
The Australian Competition and Consumer Commiss ion (ACCC) enforces the merger and acquisition 
provisions under the CCA.  The ACCC is an inde pendent statutory author ity which conducts its 
merger processes independently of the Government.   
  WT/TPR/M/244/Add.1 
 Page 85 
 
 
  There are three types of clearance processes that  can be accessed by parties proposing to make 
mergers or acquisitions:  
• Informal clearances are where the ACCC consid ers an application on an informal basis, 
which provides an indication from the ACCC that  it is not likely to pursue action under 
section 50 of the CCA if the merger goes ahead.   
o This is by far the most common process used.  
• Formal merger clearances are available on re quest of an applicant.  Where formal 
clearance is granted for an acquisition, prot ection is conferred on the person to whom 
clearance was granted from the operation of section 50 of the CCA.  This protection means that neither the ACCC nor any other party may initiate lega l action under section 
50 for the matter, so long as the acquisition ta kes place in accordance w ith the clearance.   
o Decisions may be appealed to the Australian Competition Tribunal.  
Administrative law matters can also be appealed to the Federal Court.   
• • Authorisation by the Australian Competition Tribunal can be sought to declare that a 
merger will not breach section 50 of the CCA , which would provide similar immunity 
from legal action.   
o The Tribunal must not grant an authorisation for a proposed acquisition of 
shares or assets unless it is satisfied in  all the circumstances that the proposed 
acquisition would result or is likely to result in such a benefit to the public that the acquisition should be allowed to occur 
 There is no legislative requirement that parties notify the ACCC of a proposed acquisition, merger 
parties also have the option of proceeding with a merger without seeking any regulatory 
consideration.   However, pursuing this option may put merger parties at risk of the ACCC or other 
interested parties taking legal action under section 50 of the CCA on the basis that the merger would 
have the effect or likely effect of substantially  lessening competition in one or more substantial 
market. 
 
Question
 
 
Paragraph 101 - What forms of anti-competitive co nduct may be authorized by the ACCC to the 
extent that they are in the public interest?  
Answer
 
 
Generally, the ACCC can grant immunity from the a pplication of the competition provisions in the 
CCA if it is satisfied that the public benefit from the conduct outweighs any public detriment. 
 The ACCC may, if the relevant test is met, author ise conduct (under Part VII Of the CCA) that might 
constitute the making and/or giving effect to: 
a cartel provision (including agreement as to price); 
• an anti-competitive agreement; 
• a secondary boycott; 
• exclusive dealing; 
• resale price maintenance; or 
• an acquisition that occurs outside Australia. 
 The ACCC is not able to authorise conduct that  might constitute a misuse of market power.   
Further information on authorisations is available in  the ACCC’s Guide to Authorisation, available at 
www.accc.gov.au.   
 WT/TPR/M/244/Add.1 
Page 86  
 
 Corporate governance (page 76)  
Question
 
 
Paragraph 114 - Are government trading enterprises s ubject to the Trade Practices Act?  If not, are 
they subject to any other type of regulation to prevent unfair or  anti-competitive trade practices? 
 Answer
 
 
Section 2A of the CCA generally binds the Crown in right of the Commonwealth (the Government) in 
so far as it carries on a business.  Section 2B also applies the competition provisions of the CCA 
(Parts IV and XIB) to the State and Territory g overnments in so far as they carry on a business.   
 The Government also applies a policy of competitive neutrality to ensure that Government businesses 
are not given competitive advantages by virtue of their Government ownership.    Sectoral policies 
 
Question
 
 
As regards foreign direct investment in the mining sector, is there an incentive scheme to attract this 
type of investment?  Is investment confined to the extraction branch? 
 Answer
 
 
There are no specific investment incentives for the mining sector.  
 Question
 
 
Would Australia please expand on the measures ai med at improving and boos ting the manufacturing 
sector?  For example, could it specify what  is meant by tax concessions and outlays? 
 
Answer  
 
The support provided to Australia's manufacturing sector  is detailed in Australia's notification to the 
SCM Committee (G/SCM/N/186/AUS) and related qu estions and answers.  The terms "tax 
concession" and "outlays" used in the Secretariat's report come from the Productivity Commission 
report referenced in paragraph 48 (page 101) of th e Secretariat's report, and refer to two types of 
assistance provided by the Australian government.  In  the context of the Productivity Commission's 
report: "tax concessions" include tax exemptions, de ductions and rebates, preferential tax rates and 
deferred tax; and "outlays" include  bounties, grants, subsidies, credits, loans, loan guarantees, 
insurance, equity injections and the funding of or ganisations which perform services of benefit to 
industry (the report, Trade & Assistance Review 2008-2009, is available at 
http://www.pc.gov.au/__data/assets/pdf _file/0007/98998/tar0809.pdf, w ith the relevant information 
on page 10).  
Question
 
 
What would be Australia's comments regarding the OE CD assessment that the benefits provided to 
the textile sector appear to  be disproportionately expensive and economically distortive? 
  WT/TPR/M/244/Add.1 
 Page 87 
 
 
  Answer  
 
The Australian Productivity Commis sion’s Trade and Assistance Re view shows that assistance to 
TCF manufacturing has declined significantly in recent decades following tariff reform and the 
removal of import quotas.  This trend has continue d in recent years, suggesting assistance to this 
sector is becoming less expensive (especially in real terms).  For example, net tariff assistance to the 
industry has fallen by $350 million since 2003-04, to be $509.7 million in 2008-09.  This is expected 
to fall further to take into account further reductions in TCF tariffs on 1 January 2010 and 
1 January 2015.  
Further, budgetary assistance to the industry is also falling – from $154.8 million in 2003-04 to 
$128.9 million in 2008-09.  In addition, the new assi stance arrangements for TCF industry are better 
targeted than previously, – focussing more on innovative activity.  In overall terms, net combined assistance to the industry has fallen by over 37% since 2003-04, down 
to $638.6 million in 2008-09, with further falls expe cted as a consequence of the legislated tariff cuts 
on 1 January 2010."   
KOREA
 
 
II(8) F OREIGN INVESTMENT REGIME  
 Question 1: Secretariat's Report, page 29, paragraph 36  
 Question
 
 
Australia maintained its screening pr ocess to ensure that foreign investment is not contrary to the 
"national interest" in sectors such  as airports, banking, residential real estate, telecommunications, 
and transport. Recently, it seems to have begun applying this process to foreign investment in natural 
resources. What is the Australian government’s assessment of the po ssibility that such measures may 
increase uncertainty for foreign investors? 
 
Answer  
 
All foreign investment proposals including investment  in the resource sector is subject to Australia’s 
foreign investment review framework, which is ma de up of the Foreign Ac quisitions and Takeovers 
Act 1975, the Foreign Acquisiti ons and Takeovers Regulations  1989 and Australia’s Foreign 
Investment Policy.  There is no special restriction on foreign investment in the resources sector.  Each 
application is assessed on a case-by -case basis under the national interest test rather than applying any 
rigid rules or equity caps to resource investment s.  The general threshold for business acquisitions 
involving private investors is an interest of 15% or  more in an Australian business or corporation that 
is valued above $231 million.  This threshold a pplies to all Australian businesses and corporations - 
not just within the resources sector. 
 Australia has taken steps over the past few year s to provide more guidance on how our foreign 
investment regime operates. For instance, the Fore ign Investment Review Board (FIRB) released an 
easy to-read version of Australia’s foreign inv estment policy in June 2010 (updated January 2011). 
The Policy provides guidance on what factors are ty pically considered in assessing whether a proposal 
is contrary to the national interest.  The Policy has also been made ava ilable in other languages, 
including Chinese, Japanese and Bahasa to further improve transparency.  This additional guidance is 
designed to increase certainty for foreign investors.   WT/TPR/M/244/Add.1 
Page 88  
 
 III(1) O VERVIEW  
 Question 2: Secretariat's Report, page 31, paragraph 3  
 Question
 
 
With regard to SPS measures, Australia launched refor ms for a shift from "quarantine to biosecurity". 
What is the conceptual difference between quarantin e and biosecurity? What are the implications of 
such a change in its SPS policies?  
Answer
 
 
Biosecurity is broader than quarantine – it extends  to the management of pests and diseases including 
weeds and pest animals, includes a focus on management activities such as monitoring and 
surveillance and response to pest and disease incu rsions (not just prevention and interception), 
recognizes the importance of risk management rather than risk elimination, and fosters a sense of 
shared responsibility.  An example of the shift to biosecurity is th e Australian Government’s move to a risk-based 
operational framework across the biosecurity contin uum.  Australia is progressively implementing 
risk-based intervention strategies at the border to replace the previously mandated intervention targets 
following the trials conducted at airports, mail centres, and seaports. Implementation will impact 
different imported products in different ways. For some, nothing may change, while a small number 
may experience an increased level of inspection. For most, and particularly for those which comply with quarantine requirements, it should result in  less AQIS intervention and more efficient passage 
through biosecurity controls without compromising Australia’s quarantine integrity. Improvements to 
current processes will be continuously implemente d as they are developed, tested and found to 
enhance processing efficiency.   
III(2)(viii) 
 
Question 3: Secretariat's Report, page 56, paragraph 64 
 
Question
 
 
In 2008/09, direct sourcing in government procuremen t represented 48.8% of total procurement value 
while open and select tendering accounted for 30.7%, and 20.5%, respectively. How does the 
Australian government evaluate this level of open te ndering compared to the levels of open tendering 
in other countries?  Answer
 
 
The Australian Government (Central) maintains a fl exible government procurement framework with 
an emphasis on matching the procurement process to the size and risk profile of the procurement 
requirement.  While value for money can often be achieved through open tendering processes, the 
appropriate process for any given procurement must be evaluated case-by-case.  In some circumstances, a selective or limited tendering pro cess would be appropriate and achieve best value 
for money.     
 
The Australian Government procurement market is subs tantially different in character to that of many 
other jurisdictions.  The decision of procurement method for any given procurement process should be 
based upon evaluation of available options and not vi a resort to default processes.  Comparisons of  WT/TPR/M/244/Add.1 
 Page 89 
 
 
  aggregated data from incommensurate reporting regime s and financial frameworks can be misleading.  
Statistical trends should not form the basi s of the decision of procurement method. . 
 
III(3)(ii)  
Question 4: Secretariat's Report, page 59, paragraph 77 
 Question
 
 
Australia is one of the major commodity exporting c ountries. What are the effects of recent surges in 
the prices of agricultural products and raw materials on Australia's export policies? 
 Answer
 
 
The recent resurgence in some key international agricultural commodity  prices, mainly wheat, maize, 
sugar, soybeans and vegetable oils in particular, but also others like cocoa and coffee, have had a 
mixed impact on Australia. The impact has depend ed on whether we are a substantial exporter or 
importer, and also recent climatic conditions in Au stralia affecting our production. For example, we 
are a major wheat exporter, but due to the heavy rain s and floods in much of eastern Australia, while 
volumes have been good, some of the wheat crop has been downgraded from food wheat to feed 
wheat, lowering prices for affected wheat crops. Si milarly Cyclone Yasi in north Queensland has 
somewhat reduced the volume of sugar available for export this year. We import cocoa products, 
coffee beans and palm oil, so we face higher import prices in US$ terms. But an important point to note is that many of our agricultural commodity exports sold by contract are priced in US$, and in the 
context of the strong appreciation of the A$ against the US$ over the past couple of years, the returns to our agricultural commodity producers in A$ terms have not necessarily changed significantly.  
 
In terms of the effects of the price resurgence on Australia's trade policy, we have been mainly 
concerned that the world has a proper understanding of the full range of factors driving the price rises, 
both long-term and short-term. We are concerned th at there is over-emphasis on short-term factors 
like adverse climatic conditions cau sing production shortfalls in major producers, and a rush to blame 
factors with an unproved influence like increase d speculative investment in commodities. We 
advocate a proper appreciation of the long-term factors causing a tighter global demand-supply 
balance, and urge proper acti on to address those by the global community. The key one we are 
concerned with here in the WTO is reducing the global agricultural and food market distortions, 
whereby subsidies and trade barriers have discour aged and disadvantaged unsubsidised farmers, 
especially in developing countries, from boosting their share of global food output and trade.  
Thus the Australian Government continues its long commitment to open markets and encourages 
Australian producers to participate in internati onal markets. Australia supports more open and 
efficient markets which will increase global food trade flows and reduce price volatility.   
III(4)(iii) 
 
Question 5: Secretariat's Report, page 74, paragraph 111  
 Question
 
 
Recently, the Australian government has been for tifying consumer protection, which led to the 
enactment of the Australian Consumer Law in July  2010. What is the anticipated impact of this 
initiative on the exports of Australia's trading partners?  WT/TPR/M/244/Add.1 
Page 90  
 
 Answer  
 
As well as harmonising the consumer protection pr ovisions of the Trade Practices Act 1974 (the 
previous name of the Competition and Consumer Ac t 2010) and state and territory fair trading laws, 
the Australian Consumer Law (ACL) introduces a new national law for consumer product safety 
(Part 3-3), a new system of consumer guarantees replacing existing laws on conditions and warranties 
(Part 3-2, Division 1), and provisions governing country of origin representations (Part 5-3). 
 The impact of the ACL on the exports of Australia's  trading partners is that overseas manufacturers 
and suppliers of goods and services, as well as tho se in Australia, will be subject to these provisions. 
 
 
ARGENTINA
 
 WT/TPR/G/244, Report by the Australian Government 
 
1. Paragraph 14 mentions the fiscal measures take n by the Australian Government in response to 
the global financial crisis.  In particular, it me ntions the Nation Building and Jobs Plan which 
included infrastructure projects acro ss the country covering areas such  as energy efficiency, roads, 
community infrastructure and support to small businesses. 
 
Question
 
 
Could the Australian Government provide further information on these projects?  Are these projects 
still running?  
Answer
 
 
The Government responded to the global financial crisis with a three phase stimulus package.  
 
Cash payment 
 The first phase of the stimulus was primarily in come support to low and middle-income households 
providing immediate stimulus to the economy until the direct investments in infrastructure could take 
full effect.   This first phase of stimulus cash payments included:  
• $8.7 billion in one-off support payments for pe nsioners, carers and low- and middle-income 
families, announced as part of the Econom ic Security Strategy in October 2008. 
• $12.2 billion in one-off cash payments for workin g Australians and eligible families, students 
and drought-affected farmers, announced as part of the $42 billion Nation Building and Jobs 
Plan in February 2009.  
 
Shovel-ready infrastructure  
 
The Nation Building and Jobs Plan included a $29.9 b illion investment in 'shovel-ready' infrastructure 
mainly delivered in 2009-10 and 2010-11 in proj ects across the country.  This second key phase of the 
stimulus included spending on investments in school s, housing, energy efficiency, roads, community 
infrastructure and supporting small businesses.  
  WT/TPR/M/244/Add.1 
 Page 91 
 
 
  Nation building infrastructure  
The 2009-10 Budget marked the third key phase of the Government’s stimul us strategy, with a 
$22 billion investment in longer term  nation building infrastructure. 
 
This nation building infrastructure package incl uded $8.5 billion for critical road, rail and port 
infrastructure, a $4.5 billion investment in the Cl ean Energy Initiative to assist Australia’s transition 
to a low pollution economy, $2.6 billion in proj ects focused on universities and research from the 
Education Investment Fund, and $3.2 billion from the Health and Hospitals Fund to invest in hospitals 
and medical research infrastructure. 
 
The Government’s stimulus shielded Australians from the worst of the global recession and helped 
position Australia as the best performing advanced  economy in 2009.  In year-average terms the 
Australian economy grew by 1.3% in 2009, a full 4½ percentage points above the average of the advanced economies.  Without the fiscal stimulus  the Australian economy would have followed the 
world’s advanced economies into recession and tens of thousands more jobs would have been lost.  
Treasury has estimated that the Australian economy w ould have contracted by 0.7% in year-average 
terms in 2009 in the absence of the fiscal stimulus measures. The Government’s stimulus packages 
were designed so that the bulk of the impact was directed at 2008-09, with reducing amounts in each of the following financial years until the funding has been expended.  
Stimulus expenditure spending tracked by the Office of the Coordinator General is effectively fully 
committed with over 99% of funding allocated to approved projects. Of approved projects, around 
98% have commenced and around 75% have been completed. 
 The Government will continue with the critical nation building infrastructure investments in areas 
such as roads, rail, ports and educational facilitie s.  These investments have not only supported the 
economy in recent times, but will also increase the future productive capacity of the economy.  
 The withdrawal of the fiscal stimulus has been desi gned so that it occurs in an orderly fashion to 
allow the economy to shift as smoothly as possible from being driven by public demand to being driven by private demand. 
 
WT/TPR/S/244, Report by the Secretariat 
 III. TRADE POLICIES AND PRACTICES BY MEASURE (1) O
VERVIEW  
 
2. According to paragraph 1 of the Secretaria t report, some significant tariff and non-tariff 
barriers to trade and to efficient re-allocation of  domestic resources remain.  In this respect, the 
paragraph states that "Emphasis has been placed  on better coordination of policy formulation and 
implementation at central, state, and territory le vel in areas such as standards, sanitary and 
phytosanitary (SPS) measures, and government procur ement".  We are also aw are that the 2008 Beale 
Review (mentioned in footnote 56 of the Secretar iat report) recommended reforms in this area. 
 
Question  
 
Could Australia provide information on the state of implementation of the reforms recommended by 
the Beale Review? 
 WT/TPR/M/244/Add.1 
Page 92  
 
 Answer  
 
The Australian Government is progressing a range of  biosecurity reforms to improve the system’s 
efficiency and effectiveness and improve its ability to adjust to ever-changing risks. A number of key 
reforms are well underway (including those stemmi ng from the Beale review), however, reform will 
happen incrementally and collaborativ ely with stakeholders. The rate of progress will also be subject 
to normal budget processes. To date, a number of ke y achievements have been made to build a better 
biosecurity system.  These include: 
• drafting of new biosecurity legislation 
• shifting to a risk-based operational frame work across the biosecurity continuum 
• implementing risk-based intervention strate gies to replace the previously mandated 
intervention targets following the trials conducte d at airports, mail centres, and seaports 
• progressing a framework to support risk-based in terventions, including associated data and 
analytical systems, and early scoping of risk management arrangements  
• implementing the Export Certification Reform Package to progress regulatory and supply 
chain reforms 
• examining options for the provision of future post entry quarantine facilities 
• amending the legislation for imported food en abling the Australian Government to enter 
compliance agreements with importers, formally  recognising their food safety management 
systems 
• negotiating the draft Intergovernmental Ag reement on Biosecurity (IGAB) between the 
Commonwealth, state and territory government s, enhancing the collaborative effort to 
improve the national biosecurity system 
• establishing the Biosecurity Advisory Council to provide the Minister with independent 
advice on biosecurity activities 
• appointing the Interim Inspector General of Biosecurity to undertake a series of systems 
audits and reviews  
• scoping work on a significant upgrade of information and communication technology (ICT) 
systems to support biosecurity reform. 
 (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(vii) Standards and other technical requirements 
(b) Sanitary and phytosanitary regulations 
 3. Paragraph 51 of the Secretariat report menti ons that Australia's sanitary and phytosanitary 
measures have been considered unduly stringent.  In particular, the report notes that so far no unified 
analytical framework has been u sed to assess the costs and benefits of SPS measures for stakeholders 
along the supply chain, such as domestic consumers,  producers and governments, or foreign suppliers, 
or, where relevant, foreign consumers and governments. 
 
Question
 
 
Could the Australian Government please indicate whet her the legislative system currently in force is 
likely to boost access to the Au stralian market for agricultural products (e.g. meat, fresh fruit, 
vegetables and dairy products)?  Answer
 
 
Australia is progressively implementing risk-based in tervention strategies at the border to replace the 
previously mandated intervention targets following th e trials conducted at airports, mail centres, and 
seaports. Implementation will impact different importe d products in different ways. For some, nothing 
may change, while a small number may experience an  increased level of inspection. For most, and  WT/TPR/M/244/Add.1 
 Page 93 
 
 
  particularly for those which comply with quarantine requirements, it should result in less AQIS 
intervention and more efficient passage through  biosecurity controls without compromising 
Australia’s quarantine integrity.  4. We know that "Biosecurity Australia" has been conducting risk analyses in respect of 
foot-and-mouth disease.  In some cases, where additi onal information is needed to conclude a report, 
these analyses have been temporarily suspended un der the "stop the clock" provision of the risk 
analysis regulations.  We are also aware that Aust ralia has been revising its requirements for imports 
related to the meat sector. 
 
Question
 
 
When does the Australian Government intend to conc lude these risk analyses and when does it think it 
will be able to implement the new regulations so as to facilitate the importation of meat? 
 
Answer  
 
• Three formal import risk analyses (IRA) for an imal health issues related to beef were 
commenced on 8 April 2010 by Biosecurity Austra lia for beef and beef products for human 
consumption originating from Canada, Japan  and the United States. These were based on 
market access applications from these countries. o the maximum timeframe for the IRAs is 24 months subject to a number of factors, 
including timely provision of necessary information from the applicant country. 
o due to the outbreak of foot-and-mouth di sease (FMD) in Japan, Biosecurity Australia 
announced on 10 May 2010 that it had suspe nded work on IRA for beef from Japan. 
Work on the IRA can recommence after Japan regains its former FMD status and Japan 
provides information on its animal health status and controls. 
o Biosecurity Australia sought information from both the United States and Canada to assist 
with the progression of their respective IRAs.   
o both countries have advised that they are not in a position to provide this information and 
thus both IRAs are now paused through the “stop the clock” mechanism.  
o when the requested information is provided this  will be assessed to determine if the IRAs 
can recommence. 
 
Question
 
 
Are there currently any particular impediments to importing meat products fr om countries free of 
foot-and-mouth disease with vaccination?  If so , what are the grounds for these impediments? 
 
Answer  
 
Australia currently accepts shelf stable canned me at from any source country subject to certain 
conditions. The Australian import c onditions for canned meat include a requirement that all portions 
of the contents have been heat treated to at least 100 ˚C, obtaining an F 0 value of at least 2.8. The final 
product must be in a hermetically sealed (airtight) container and has been heat treated (retorted) 
within this container so that the final produc t is shelf stable (not requiring refrigeration). 
 Vaccination of animals may mask the symptoms of FM D in a herd. Therefore Australia currently does 
not accept fresh (chilled or frozen) meat from a c ountry or zone where vaccination for FMD is 
practiced.   
  WT/TPR/M/244/Add.1 
Page 94  
 
 TURKEY  
 Report by the Government  II. GENERAL ECONOMIC ENVIRONMENT, pr. 25, pp. 8 
 
Question
 
 
Could Australia define the areas under consideratio n, in order to provide a better understanding on 
the level of development in removing regulatory obstacles in private business?   
 
Answer  
 
A copy of the National Partnership Agreement to Deliver a Seamless National Economy (SNE NP) 
can be accessed from the following website:  h ttp://www.federalfinancialrelations.gov.au/ 
content/national_partnership_agreement s/OT001/Seamless_National_Economy.pdf 
 A description of the 27 deregulation priorities a nd eight competition reforms under the SNE NP, and 
the other non- SNE NP reforms, can be found in  the implementation plans, which can be accessed 
from the following websites:  
http://www.coag.gov.au/coag_meeting_outcom es/2011-02-13/docs/revised_np_sne_part_1_ 
deregulation_priorities_imp_plan.pdf  http://www.coag.gov.au/coag_meeting_outcom es/2011-02-13/docs/revised_np_sne_part_2_ 
deregulation_priorities_imp_plan.pdf 
 
http://www.coag.gov.au/coag_meeting_outcomes/ 2011-02-13/docs/revised_imp_plans_coag_ 
deregulation_reforms _outside_npa_sne.pdf 
 For further information on the 27 deregulation prio rities, refer to the Department of Finance and 
Deregulation.  Report by the Secretariat  SUMMARY, Para.1, p.vii  
Question
 
 
The Secretariat’s Report states that Australia "has successfully weathered th e global financial crisis 
without ….. or action to influence the value of its currency."   Could Australia share its views on whether influenci ng the value of its currency is an viable option in 
cases of global crisis? 
 Answer
 
 
The Australian authorities agree that there may be a role for the Reserve Ba nk to intervene in the 
foreign exchange market during a global crisis, although this would be for the purpose of limiting 
volatility, not influencing the level.  Australia’s central bank, the Reserve Bank of Aust ralia (RBA) may operate in the foreign exchange 
market on its own account to influence the Australian do llar exchange rate, to assist domestic liquidity  WT/TPR/M/244/Add.1 
 Page 95 
 
 
  management and to manage its ow n holdings of foreign currency reser ves. Transactions to influence 
the exchange rate or market conditions more gene rally are relatively infrequent. They are undertaken 
only when the value of the Australian dollar is judged  to have moved to levels  that are inconsistent 
with underlying economic developments or when cond itions in the foreign exchange market are thin 
and disorderly.  
 
For instance, in August 2007, a particularly shar p depreciation in the Australian dollar took place 
amid thin and disorderly market conditions. To im prove liquidity in the market at that time, the 
Reserve Bank sold a modest amount of foreign ex change and bought the Aust ralian dollar. This was 
the first intervention undertaken by the Bank since 2001.  These transactions were not intended to 
influence the level of the exchange rate; inst ead they were designed to limit volatility. This 
intervention was not intended to prevent the cu rrency from deprecating as this depreciation was 
helpful in supporting economic activity during the crisis.  
 
I. ECONOMIC ENVIRONMENT 
(2) R ECENT ECONOMIC DEVELOPMENTS , Para. 3, p.6   
 Question
 
 
The Secretariat’s Report mentions that "…. one of the principal policy challenges facing Australia 
will be to decide whether to help these secto rs resist change or help them adjust to it. 
 
Could Australia clarify if there is any further study  or plan on how to conf ront this challenge?  
 Answer
 
 The ongoing evolution that the Australian economy has been experiencing is not unique, virtually all 
advanced economies have experienced a shift toward s services over the past half century.  The shift 
towards higher value, including knowledge-based, servi ces has been driven larg ely by changing tastes 
and preferences arising from higher incomes, tec hnological change and demographic change.  The 
proliferation of low cost manufactures in Asia ma y have sped up the transition away from traditional 
manufacturing. 
 
Australia is currently benefiting from historically hi gh terms of trade, which are expected to remain 
elevated. This will keep Australia’s dollar hi gh, putting pressure on non-resource, trade exposed, 
industries to transform and adapt in order to ma intain competitiveness.  Further innovation which 
leads to higher productivity growth in these sector s will tend to ameliorate any decline, making the 
transition process relatively easier. 
 Reforms implemented during the 1980s and 1990s in creased the economy’s exposure to competition 
and drove higher productivity gr owth which led to increases in Au stralians standard of living. 
However, productivity growth, at the aggregate level,  has begun to deteriorate in recent years, with 
multifactor productivity growth having turned negative during the latest completed productivity cycle.  
In order to turn around this decline, the Au stralian Government is implementing a broad, 
multi-faceted productivity agenda targeting the short,  medium and long-term drivers of productivity 
growth.  The Australian Government is also committed to im proving workforce participation which will also 
help reduce the quantum of adjustment required. 
 WT/TPR/M/244/Add.1 
Page 96  
 
 (4) M AIN STRUCTURAL POLICY DEVELOPMENTS AND CHALLENGES , Para.14, p. 10  
 Question
 
 
The Report mentions the introduction of  a "Minerals Resource Rent Tax".  
 
Could Australia clarify how th is new tax will be applied?  
 Answer
 
 The new Minerals Resource Rent Tax (MRRT) will commence on 1 July 2012 and apply to all new 
and existing iron ore and coal projects, and it will apply to the mining of iron ore and coal in Australia.   
The key features of the MRRT are:  
 
• The minerals resource rent tax (MRRT) will be  a tax on the net profits resulting from the 
extraction of iron ore and coal. The MRRT will have a headline tax rate of 30% on assessable receipts, with the MRRT liability being furt her reduced by a 25% extraction allowance, 
resulting in an effective tax rate of 22.5%.  
• The MRRT liability will be calculated on an indivi dual taxpayer’s direct ownership interest in 
a project. Small miners with resource profits below $50 million per annum will not have an 
MRRT liability.  
• The MRRT will recognise the particular character istics of different commodities, by applying 
a taxing point as close to the point of extraction as practicable, and using appropriate pricing arrangements to ensure only the value of  the resources extracted is taxed.  
• A project’s taxable profit in the relevant year will be calculated by deducting project 
expenditures and royalties from assessable re venue. Deductible expenditures and assessable 
revenue will be determined at the ‘t axing point’ in the production chain.  
o New investment will be given generous treatment in the form of immediate write off, 
rather than depreciation over a number of years. This allows mining projects to access 
the deductions immediately, and means a project will not pay any MRRT until it has made enough profit to pay off its upfront investment.  
• The MRRT will provide generous recognition of past investments through a credit that 
recognises the market value of that investment written down over a period of up to 25 years. Unlike other costs, this starting base will not be uplifted.  
• However, those companies that  wish to use their current written down book values of the 
project’s assets, excluding the value of the r esource, will be provided with a generous 
accelerated depreciation over 5 years. This star ting base will be able to be uplifted at the 
government long term bond rate plus 7%.  
• To provide a partial tax shield for existing proj ects, a ‘starting base’ will be provided, which 
provides the project with additional deductions  which can be used to offset assessable 
revenues. Proponents may determine the starting base on the basis of either market value or 
book value.  
• Under the MRRT, an entity will not have to pa y tax for a project interest unless its revenue 
exceeds current year project expenses, credits for State royalties paid, un-deducted prior year 
losses, starting base depreciation amounts, and losses transferred to the project from the entity’s other projects (in that order).   
• Where deductions exceed project revenue in a given year, no MRRT is paid and unused 
deductions are carried forward and uplifted to be  deducted against project revenue in future 
years.   WT/TPR/M/244/Add.1 
 Page 97 
 
 
  • Ordinary losses in a given year are transferable to offset MRRT profits in other iron and coal 
projects. Ordinary losses that are not able to be transferred to other projects will receive an uplift of LTBR + 7%.  
• Starting base losses and unused royalty credits  are not transferable between projects. 
Undepreciated Starting Base amounts and carried-forward MRRT losses will be transferred to the new owner when the project is sold. 
 
For more information on how the MRRT will wo rk, please visit:  http://www.futuretax.gov.au 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES,  (6) T
RADE AGREEMENTS AND ARRANGEMENTS , para.21, p. 23 
 
Question  
 
Could Australia provide an update on the status of report of the Productivity Commission referred in 
this paragraph?   
Answer
 
 
All of the findings and recommendations of th e Productivity Commission Research Report on 
Bilateral and Regional Trade Agreements (released on 13 December 2010) are publicly available at 
the following website: http://www.pc.gov. au/projects/study/trade-agreements.  
 
The Productivity Commission is a publicly funded  but independent body and this Review, while 
initiated by the Assistant Treasurer, does not requi re any formal response from the Government.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE (4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(iii) Competition and Consumer Policy, Para. 102, page 71 
 Question
 
 
Could Australia provide the list of agricultural marketing boards and their responsibilities mentioned 
in para.71?  
 Answer
 
 
As notified in Australia’s most recent WTO STE notification ( G/STR/N/13/AUS – 
13 September 2010), the only Australian agricultu ral marketing board with export monopoly powers 
is the Rice Marketing Board of New South Wales. All other bodies were deregulated during the Trade 
Policy Review period. Further information about th e Rice Marketing Board of New South Wales is 
available in Australia’s WTO STE notification.  
 
(3) M EASURES DIRECTLY AFFECTING EXPORTS   
(iv) Export Assistance 
(f) Export Finance, guarantees and insurance  Question
 
 
Could Australia explain how the Aust ralian content is calculated? Is it calculated in terms of value 
added or other methods? 
 WT/TPR/M/244/Add.1 
Page 98  
 
 Answer  
 
The amount of export finance EFIC will consider for a contract reflects the value of the Australian 
content in that contract plus any foreign content that EFIC also deems eligible for finance.  The 
Australian content includes labour, goods and materi als; services; the exporter’s profits, overheads 
and financing costs; and insurance, shippi ng and air freight costs from Australia.   
 
IV. TRADE POLICIES BY SECTOR (i) Mining, para. 30, p. 94  
Question
 
 
The Secretariat Report states that "Australia rem ains one of the top five producers and exporters of 
most of the world's key minerals".  
Could Australia, one of the two co-sponsors to th e sectoral initiative for ra w materials under the Non-
Agricultural Market Access (NAMA) negotiations, pr ovide an assessment on the stipulated impacts of 
the initiative on its export structure within the framework of product coverage and export markets?” 
 Answer
 
 Australia, as a major global exporter of raw mate rials, strongly supports the broadest possible 
elimination of tariffs in this sector, both in a tariff line and export market sense, within the NAMA 
negotiations. 
 
(ii) Textiles, Clothing and Footwear, para. 56, p. 105 
 
Question
 
 
Does Australia have any plan to implement the conclusions of the Productivity Commission on 
textiles, clothing and footwear that these secto rs would benefit from unilateral tariff reductions, as 
explained in the paragraph 56?  
 
Answer  
 
Australia has been implementing unilateral tariff reductions in this sector over recent decades.  
Australian tariff rates on textiles clothing and footwear  tariffs have declined considerably since the 
1980s as part of ongoing domestic reform efforts.  On 1 January 2010, Australian tariffs on many 
textiles, clothing and footwear items were reduced from 7.5 and 10% to 5%.  While tariffs on certain 
made-up textile items and clothing were reduced fro m 17.5 to 10%.  The Australian Government will 
implement a further reduction in these tariffs to 5% on 1 January 2015.  From this date, no Australian 
tariffs will be applied at an ad va lorem rate above 5% with the exce ption of 13 tariff lines subject to 
specific duties. 
  WT/TPR/M/244/Add.1 
 Page 99 
 
 
  IV. TRADE POLICIES BY SECTOR,  
(5) S ERVICES  
 
Para 77 (p. 114) 
 
Question  
 
"...Since 1995, Australia has not p ermitted foreign life insurers to operate  local branches.  As a result 
foreign life insurers seeking to establish a commerci al presence in Australia must establish an 
Australian subsidiary, which must th en apply to APRA for registration" 
 Could the Government of Australia explain the main reasons behind not  giving permission to foreign 
life insurers to operate local branches? 
 
Answer
 
 The Life Insurance Act 1995 provides that only Aust ralian registered companies can apply to conduct 
life insurance business here.  This requirement effec tively prohibits life insurers incorporated under 
other jurisdictions from operating branches in Australia.   
This requirement was introduced in the context of major prudential reform which saw among other 
things, the establishment of new, technically deta iled liability valuation and capital requirements, and 
detailed requirement in respect of the equitable allocation of company profits (surplus) between 
shareholders and policyholders.  In view if thes e reforms (the details of  which were innovations 
somewhat unique to Australian practice) it was cons idered that satisfactory prudential supervision 
would be best achieved where foreign life co mpanies are incorporated in Australia.  
 An exception to this rule exists for ‘elig ible foreign life insurance companies'.  
 Currently only insurers authorised  and incorporated in the US are considered to be for ‘eligible 
foreign life insurance companies’. Australia con tinues to monitor whether there is a case for 
expanding this category. 
 
Para 93 (p. 120)  
 
"… Plans were announced in August 2010 for introduc ing measures to strengthen Australia's shipping 
industry with respect to its international competito rs as well as other modes of transport domestically. 
They would include a new tonnage tax, the implem entation of existing coastal shipping principles 
consistent with the Navigation Act, the introductio n of mandatory training requirements, and the 
establishment of an Australian International Shipping Register and a Maritime Workforce 
Development Forum."  Question
 
 
Could the Government of Australia clarify which measures are intended to strengthen Australia’s 
shipping industry? Could the Government of Austra lia explain what will be changed for foreign firms 
operating in shipping industry aft er the realization of these plans, particularly about their operations 
in Australia? Does the government of  Australia have any intention to create any treatment peculiar to 
domestic firms? 
 WT/TPR/M/244/Add.1 
Page 100  
 
 Answer  
 
The Australian Government’s objectives for shipping are to: 
• ensure Australia has a viable shipping industry,  able to provide adequate coastal shipping 
services at a reasonable price for customers/cons umers and which reinvests in its ships when 
they reach the end of their economic lives; 
• ensure Australian shipping maintains and potentia lly grows its share of the national transport 
system in order to meet the growing transport t ask efficiently, effectively, safely and with the 
least impact on the environment;  
• provide opportunities to increase Australia’s par ticipation in international shipping, reflecting 
the significance of shipping to our trade b ase and the linkages between strong domestic and 
international sectors;  
(1) A Commonwealth Parliamentary Inquiry into th e Australian coastal shipping trade noted that 
Australian shipping companies are subject to the standard corporate tax rate arrangement, which puts them at a competitive disadvantage with ships register ed in countries which offer zero or low tax rates 
for shipping businesses.  Proposed financial incenti ves for Australian companies will include access 
to either the tonnage tax or a tax scheme combin ing accelerated depreciation and relaxed capital gains 
tax provision for selected capital assets.   These two schemes are mutually exclusive.  
 Many of the details relating to the institutional desi gn of the tonnage tax system are currently under 
consideration. We are therefore not in a position to answer these questions definitively at this time. 
 
 
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND
 
MATSU (CHINESE TAIPEI)  
 A. Report by the WTO S ecretariat (WT/TPR/S/244) 
 
I. ECONOMIC ENVIRONMENT 
(4) M
AIN STRUCTURAL POLICY DEVELOPMENTS AND CHALLENGES  
 Question
 
 
Tax Reform 
 
(Page 10, paragraph 14)   According to the report, as part of the tax refo rm programme now under way, Australian authorities 
intend to increase taxation of natural resource rents (e.g. iron ore, coal, oil, and gas).  They also 
envisage introducing a Minerals Resource Rent Tax (MRRT) and extending the Petroleum Resource 
Rent Tax (PRRT) to all onshore and offshore oil and gas projects.  Given Australia’s role in the global market as a ma jor exporter of minerals, if these tax changes were 
to be introduced in the near futu re they would surely help to in crease prices of mineral products in 
world markets and have a negative impact on the recovery of the global economy.    
 
Could Australia therefore please provide more deta ils of its policies and plans in this respect, 
including any possible measures envisaged to help  prevent the above-mentioned situation occurring.  
  WT/TPR/M/244/Add.1 
 Page 101 
 
 
  Answer  
 
The Minerals Resource Rent Tax and the extens ion of the Petroleum Resource Rent Tax will not 
affect the price of commodities. The rent taxes onl y apply after all allowable deductions have been 
taken into account and the producer has received a return on their investment.  By design resource 
rent taxes cannot be passed onto the 'consumer' through higher commodity prices. 
 Additionally, the price of a particular commodity is set in the international market based on the 
demand and supply for that commodity.   
For more information on the new r esource tax arrangements, please visit http://www.futuretax.gov.au 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES (5) T
RADE POLICY OBJECTIVES  
 
(Page 21, paragraph 16)  
 It is stated in the report that, "Despite trade openness and certain policy developments, trade and 
trade-related policy instruments continue to be used  to support the same activities in different ways 
(e.g. automotive, textiles, clothing and footwear, ke y infrastructure services), thus distorting resource 
allocation in the economy (Chapter IV)".   Questions
 
 
What is Australia’s definition of "key infrastructure services"? 
 
Has the long-term and varied support aimed at im proving certain services caused any imbalance in 
terms of development in the domestic services market?  Answer
 
 
We note that Chapter IV of the report refers to a series of activities that may be what the report means 
by 'key infrastructure services': 
 A number of activities, including cargo liner shipping, and essential infrastructure facilities (some of which are natural monopolies), such as electricity ne tworks, rail tracks, natura l gas pipelines, water, 
communications, port terminals and airports. 
 
We are unsure what 'long term and varied support' Chinese Taipei is referring to. 
 
(8) F
OREIGN INVESTMENT REGIME  
 
(Page 28, paragraph 35) 
 Australia has maintained its screening regime to ensure  that foreign investment is consistent with its 
"national interest", and restrictions apply in cer tain sensitive sectors, which include, more recently, 
natural resources.   Question
 
 
Could Australia please indicate specifically what  national interest applies in the natural resources 
sector?  
 WT/TPR/M/244/Add.1 
Page 102  
 
 Answer  
 
All foreign investment proposals including investment  in the resource sector is subject to Australia’s 
foreign investment review framework, which is ma de up of the Foreign Ac quisitions and Takeovers 
Act 1975, the Foreign Acquisiti ons and Takeovers Regulations  1989 and Australia’s Foreign 
Investment Policy. The approach and factors that are taken into account in the case of natural resource 
proposals are the same as for other sectors.    Australia's Foreign Investment Policy (the Policy), wh ich was released in an ‘easy-to-read’ version in 
June 2010, provides guidance on what factors are typically considered in assessing whether a proposal 
is contrary to the national interest.  The nationa l interest concerns are determined on a case-by-case 
basis.  The relative importance of factors can vary depending on the nature of the proposed investment.  The Government typically consid ers the following factors when assessing foreign 
investment proposals, which apply irrespective of the sector:  
• national security - the extent to which investme nts affect Australia’s ability to protect its 
strategic and security interests; 
• competition - whether a proposed investment may result in an investor gaining control over 
market pricing and production of a good or servi ce in Australia and the impact that it has on 
the make-up of the relevant global industry, pa rticularly where concentration could lead to 
distortions to competitive market outcomes; 
• other Australian Government policies (including tax) - investments must be consistent with 
the Government's objectives in relation to matter s such as environmental impact.  The impact 
of an investment on Australian tax revenues is also considered; 
• the impact on the economy and the community –  
o For acquisitions in existing businesses, the Government considers the impact of any plans 
to restructure an Australian en terprise following an acquisition, the nature of the funding 
of the acquisition, the level of Australian pa rticipation in the enterprise remaining post-
acquisition and the interests of employ ees, creditors and other stakeholders; 
o For acquisitions of interests in projects, the Government considers the extent to which the 
investor will develop the project and ensure a fair return for the Australian people.  
o Investments should also be consistent with  the Government’s aim of ensuring that 
Australia remains a reliable supplier to  all customers in the future;  and 
• the character of the investor - the Government  considers the extent to which the investor 
operates on a transparent commercial basis and is subject to adequate and transparent 
regulation and supervision.  The Governme nt also considers the corporate governance 
practices of foreign investors. 
 In the case of foreign governments and their relate d entities, the Governments also considers if the 
investment is commercial in nature or if the inv estor may be pursuing broader political or strategic 
objectives that may be contrary to  Australia’s national interest. 
 
(Page 29, paragraph 36) 
 We note that foreign investment restrictions are maintained in certain sen sitive sectors, such as 
airports, banking, residential real estate, tele communications, transport and natural resources.  
According to footnotes 55 and 56, there is a 49% fore ign ownership limit for airports, for a ship to be 
registered in Australia it must be majority Au stralian-owned, and, repor tedly, the Government’s 
preference was for foreign investments in major Aust ralian resource companies to be less than 15% of 
their capital.  
  WT/TPR/M/244/Add.1 
 Page 103 
 
 
  Questions  
 
Does the Australian government have any plans to ease the current rest rictions on foreign investment 
in these sensitive sectors?   
If so, in which sectors will it begin, and to w hat extent are the restrictions likely to be eased? 
 Answer
 
 
Australian legislation other than the Foreign Ac quisitions and Takeovers Act 1975, includes other 
requirements and/or imposes limits on foreign i nvestment in the following instances: banking, 
international airlines, airports, shipping registratio n and Telstra. Limits in relation to international 
airlines and shipping registration relate to nati onality of entities for the purposes of international 
agreements that Australia has concluded.  
The general threshold for business acquisitions involvi ng private investors is an interest of 15% or 
more in an Australian business or corporation that  is valued above A$231 million.  This threshold 
applies to all Australian businesses and corporations  - not just those within the resources sector. 
 Australia continues to review the appropriateness of its foreign investment rul es to ensure that they 
maintain the right balance between protecting Austra lia’s national interest and ensuring Australia is 
seen as a welcoming destination for foreign capital.  More broadly though, we  do not consider that 
Australia’s foreign investment rules restrict invest ment into Australia.  While we maintain a broad 
foreign investment screening framework, we impose few actual foreign investment restrictions, and 
Australia has not rejected a foreign investment proposal in any business sector since 2001 — when 
Australia rejected the Shell Group’s proposed ac quisition of Woodside Petroleum Ltd on national 
interest grounds. 
 
(Page 30, paragraph 40) 
 Double-taxation avoidance (DTA) treaties are in  force between Australia and several other 
economies.  However, as noted in the report, the DTA with Chile is the only treaty containing MFN 
provisions. 
 
Question
 
 
Could the Australian government please explain the reasons for this treaty being the only one to 
contain MFN provisions? 
 Answer
 
 
Australia’s general treaty policy is not to include MFN provisions in its DTAs. This is in accordance 
with the OECD Model Tax Convention on Income and on Capital which generally does not make 
provision for undertakings in bilateral agreements to apply on an MFN basis to other bilateral tax 
treaty partners.  The OECD position is that the unde rtakings entered into on a bilateral basis depend 
on a balance of interests across a range of income t ypes and should not be available to other bilateral 
partners where the balance struck is base d on specific aspects of that relationship. 
 
The OECD Model, and Australia’s recent bilatera l treaties, provide for non-discrimination on a 
bilateral basis.  The Non-discrimination article prohibits the imposition of tax on the basis of 
nationality and prevents differential treatment in  certain circumstances between resident and 
non-resident entities.   WT/TPR/M/244/Add.1 
Page 104  
 
 The tax treaty with Chile contains a MFN provision in relation to dividends as a consequence of 
Chile’s system of taxing dividends and reflects the f act that Australia would wish to revisit the tax 
treatment of dividends under the convention if Chile’s corporate tax system was to change. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
(1) O VERVIEW  
 Question
 
 
(Page 32, paragraph 5)   
As indicated in the report, export controls or qua ntitative restrictions operated by public sector entities 
affect certain primary and therapeutic goods to ensure, inter alia , adequate domestic supply, and to 
enforce standards.  
As the global prices of grains have risen shar ply since 2008 owing to increased demand and limited 
supply, food security has become a major issue in many countries.  Many grain-growing and food-producing countries have imposed export bans in  order to ensure sufficient supplies for their 
domestic consumption.  Moreover, the protection measures have pushed up pr ices globally, which has 
led to economic difficulties for the poor and gene rated social instability in many countries.  
 What are Australia’s observations and position on this issue? 
 Answer
 
 
The Australian Government does not support export c ontrols or quantity restrictions as a means by 
which countries address national food insecurity or high domestic food prices. 
 In our view, countries should refrain from using e xport restrictions in response to food security 
concerns. While seen as an ‘easy fix’ by governme nts responding to the political pressures generated 
by rising food prices, export restrictions can al so be counterproductive. This is because high 
commodity prices are a signal to farmers to increase production — so attempts by governments to 
lower consumer prices for staple foods (by rest ricting exports) can send the wrong production signal 
to their own farmers. Hence, where governments im pose export restrictions for a lengthy period there 
is the potential to stymie local production and exacerbate the price pressures.  The Australian Government advocates a comprehens ive approach to improve long-term global food 
security, including: short-term emergency assistance to those most in need; increased development 
assistance for agriculture and rural development; in creased investment in agricultural R&D (research 
and development) to improve agricultural pr oductivity and environmental sustainability; and 
appropriate economic and trade policies at the gl obal, regional and nationa l levels. This includes 
advocating for the reduction and removal of trade barriers to increase opportunities and incentives for 
developing country farmers to lift their food output and increase supply to domestic and world 
markets. 
 Food security concerns are best addressed through the development of well functioning markets, free 
of distortions. Trade reform would enable world agricultural markets to operate more efficiently, allow increased production by the most efficient farm ers and easier access to a wider range of food 
suppliers. Barriers and di stortions in the global food market stif le incentives to increase food supply to 
match demand. Social protection programs, rather  than market distorting mechanisms, are the 
appropriate response to food security issues. 
  WT/TPR/M/244/Add.1 
 Page 105 
 
 
  (2) M EASURES DIRECTLY AFFECTING IMPORTS  
(iv) Customs valuation and rules of origin 
(a) Customs valuation 
 
Question  
 
(Page 42, paragraph 30)   Quoting from the report, "Australian valuation legi slation allows for the inclusion of royalties and 
buying commissions in line with requirements under Article 8 of the WTO Agreement, ……; the 
authorities consider that this practice is permitte d under the WTO Agreement." Paragraph 1(a)(i) of  
Article 8 of the WTO Agreement, however, prescribes that commissions and brokerage, except buying commissions, shall be added to the price actually paid or payable for the imported goods.   
It would be appreciated if Australia could explain how the inclusion of buying commissions in 
valuation legislation is in line with requi rements under Article 8 of the WTO Agreement. 
 Answer
 
 
Australia agrees with Chinese Taipei that Artic le 8 of the WTO Valuation Agreement requires 
commission, except buying commissions , to be added to the price actually paid or payable for the 
imported goods.  Australia has included the word 'buy ing' in paragraph 30 of the Trade Policy Review 
of Australia by mistake.  It was a typographical e rror.  The sentence that should appear in paragraph 
30 is as follows:  
"Australian valuation legislati on allows for the inclusion of royalties and commissions that 
meet the requirements of Article 8 of th e WTO Agreement and foreign inland freight 
and insurance in the dutiable value of goods".  
 Australian legislation is consistent with Article 8 of the WTO Valuation Agreement. 
 Section 161(1) of the Customs Act 1901 (the Act) provides that: 
 
"The transaction value of imported goods is an amount equal to the sum of their adjusted 
price in their import sales transaction and of their price related costs  to the extent that 
those costs have not been taken into account  in determining the price of the goods". 
 
Section 154(1) of the Act sets out the definition of "price related costs".  
 
Paragraph (d) of the definition of "price related costs" includes "commission, other than a 
buying commission , or brokerage, paid or payable, direc tly or indirectly, by or on behalf of 
the purchaser in respect of the goods". 
 
It is clear from the above legislative provisions th at the Australian legislation is consistent with 
Article 8 of the WTO Valuation Agreement.  WT/TPR/M/244/Add.1 
Page 106  
 
 (viii) Government procurement 
 Questions
 
 
(Pages 54-59, paragraphs 61-73) 
 
Australia has remained one of five OECD member s that is not a signatory to the GPA, with no 
intention of becoming a party to it.  Neverthele ss, Australia is bound by principles and rules on 
transparency and non-discrimination in this area in the context of its FTAs, and the authorities insist 
that these commitments are extended to all its trading partners. 
 
(i) How has Australia abided by its commitments  in the case of the National Broadband Network 
Project, which was launched in 2009 and cost $AUD 43 billion?   (ii) Could Australia please provide details of the percentages and market shares accounted for by 
foreign companies in comparison with Australian companies in this project? 
 Answer
 
 
(i) NBN Co is a wholly-owned Commonwealth  company that has been prescribed as a 
Government Business Enterprise (h ttp://www.finance.gov.au/property/gbe/index.html).  NBN Co is 
subject to the Commonwealth Authorities and Companies Act 1997  (CAC Act) 
(http://www.austlii.edu.au/au/legis/ct h/consol_act/caaca1997387/), the Corporations Act 2001  
(http://www.austlii.edu.au/au/legis/cth/consol_ac t/ca2001172/) and the Governance Arrangements for 
Commonwealth Government Business Enterp rises (June 1997) (http://www.finance.gov.au/ 
publications/governance-arrangements/index.html).   
 
More information about the Governance of NBN Co can be found at http://www.nbnco.com.au/wps/ 
wcm/connect/main/site-base/res ources/about-nbn-co/governance/. 
Information on NBN Co tenders can be found at  http://www.nbnco.com.au/wps/wcm/connect/main/ 
site-base/main-areas/partners-tenders/tenders/.  
NBN Co is not a covered procuring entity in any of Australia’s FTA government procurement 
chapters. Nevertheless, according to NBN’s Corpor ate Plan, NBN Co has a detailed procurement plan 
which pays careful attention to the principles of fa irness, transparency, competition and value.  NBN’s 
intent is to harness the capabilities of Australian an d global suppliers of equipment and services to 
build its network infrastructure efficiently, quickly and to high quality standards.  
 
(ii) This information is not held by the Au stralian Government. However, NBN Co, which was 
established to build and operate the NBN, provid es details of awarded tenders on its website at 
http://www.nbnco.com.au/wps/wcm/connect/main/site -base/main-areas/partners-tenders/tenders/. 
 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(iv) Export assistance (f) Export finance, guarantees, and insurance 
 
Question
 
 
(Page 64, paragraph 89)   We note that the mining sector is the main sect or supported by the Export Finance and Insurance 
Cooperation (EFIC) in 2009/10, partly due to the financial and economic crisis.  
  WT/TPR/M/244/Add.1 
 Page 107 
 
 
  Will the mining sector continue to be a major recipient of such support after the economic and 
financial crisis is over?  Answer
 
 Australia does not know which sectors will be supported by EFIC in the future.  
 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(ii) Production assistance 
 
Question  
 
(Page 68, paragraph 94)  
 As indicated in the report, Australia has conti nued to provide wide-ranging assistance to production in 
the form of tariff concessions, tax incen tives, grants and concession loans.  
 
We would like to know what kind of production a ssistance measures are con ducted in the energy 
sector, and whether different measures are applied to different energy products?  
 
Answer
 
 
The Government does not provide any assistance speci fically to the energy sector (coal, uranium, 
petroleum).  Alternative Fuels in Australia are curre ntly effectively excise free.  The Government has 
announced that it will introduce excise on alternativ e fuels from December 2011.  The excise would 
be phased in over five steps - 1 December 2011, 1 July 2012, 1 July 2013, 1 July 2014 and 1 July 
2015.  The rate of excise will be set against three energy bands; high, medium and low, and there will 
be a further 50% discount from the full rate of excise  for alternative fuels. Legislation to implement 
these arrangements is expected to be introdu ced in the winter session of Parliament. 
 
(iii) Competition and consumer policy 
(a) Competition policy 
 
General framework  Question
 
 
(Page 70, paragraph 99)   Our understanding is that in order to promote comp etition and to encourage entrants into markets, 
much of the ACCC/AER role includes monitoring and enforcing industry-specific pro-competition 
laws for energy, and conducting oil an d gas price surveillance informally.  
 
Could Australia please elaborate further on the sc ope of the price surveillance and the related 
measures taken, and how such a process is prevente d from intervening or causing distortion in the 
market?   
Answer
 
 
Prices surveillance generally is conducted in accord ance with the provisions of Part VIIA of the 
Competition and Consumer Act 2010.  Prices surveillance is to be applied to markets having regard to 
the object clause of Part VIIA, namely that pri ces surveillance be applied only in those markets 
where, in the view of the Minister, competitive pre ssures are not sufficient to achieve efficient prices WT/TPR/M/244/Add.1 
Page 108  
 
 and protect consumers.  Consideration of this object  clause limits the prospects of prices surveillance 
unduly distorting markets relative to its benefits.  The AER regulates the wholesale electricity market and is responsible for the economic regulation of 
the electricity transmission and distribution networks in the national electricity market (NEM). The 
AER is also responsible for the economic regulati on of gas transmission and distribution networks, 
and enforcing the national gas law and national gas ru les in all jurisdictions except Western Australia. 
Further information on their monitoring and enforcement responsibilities can be found at 
(http://www.aer.gov.au/content/index.phtml/itemId/656069).  (v) Intellectual property rights 
(a) Overview 
 
Institutional and registration issues  
 
Question
 
 
(Page 78, paragraph 119)   As indicated in the report, in 2009, the average interval betw een the lodging and acceptance of 
applications for industrial property rights was: 4 months for trademarks; 46 months for designs; and 
35 months for plant breeders’ rights.  The average interval between a patent applicant's request for 
examination and the issue date of the firs t examination report is 13 months.    
 
Why is the average period of time taken to process applications for designs so much longer than that 
for other types of IPR? 
 
Answer
 
 
The reference to "46 months" is an editing error.  It should in fact read “46 days ”. 
 [The editors of the WTO Trade Policy Review Report have been alerted to this error.] 
 
Questions
 
 
(Page 79, paragraph 125)  
As indicated in the Report, upon a 2008 IP Australia  proposal, Australia plans to introduce "additional 
damages" provisions for civil actions in the Trade Mark Act.   
(i) Please provide details on these provisions 
(ii) Is the meaning of the term "additional damages" the same as "punitive damages?" (iii) Is it beyond the idea of "compensation for the harm caused by the infringement?" 
 
Answer
 
 
The proposed Intellectual Property Laws Amendmen t (Raising the Bar) Bill 2011 (the proposed Bill) 
seeks, among other things, to amend section 126 of the Trade Marks Act 1995 to give a court 
discretion to award additional damages for infringeme nt of trade marks if the court considers it 
appropriate to do so.   Additional damages (also known as punitive or exemplar y damages) are already available in Australia 
for flagrant infringement of patents, registered designs, and copyright.  They are a remedy which can  WT/TPR/M/244/Add.1 
 Page 109 
 
 
  usefully assist right holders obtain a satisfactory award of damages where it would otherwise be 
difficult to demonstrate the loss they have suffered through the infringements.  They can also award 
compensation which has an exemplary or punitive effect.  This flexibility is possible because the 
calculation of additional damages does not have to be limited to the damage which can be 
demonstrated to have been suffered by the right  owner.  This makes additional damages a more 
flexible remedy than normal damages. 
 Consistent with the additional damages provisions in other IP legislation, the power to award 
additional damages is discretionary. The courts will th erefore have sufficient flexibility to ensure that 
additional damages are awarded in appropriate circ umstances. In exercising its discretion, a court 
would have regard to all relevant  matters. Consistent with the approach in the Patents Act 1990, there 
is also a list of specific factors to assist the courts  as to when it may be appropriate to award additional 
damages.  Among other factors, the court may have regard to the flagrancy of the infringement and 
the need to deter similar infringements.  
For more information on the proposed Bill, please re fer to the IP laws Exposure Draft - Explanatory 
Memorandum released on the IP Australia websit e on 3 March 2011 and available at this link: 
http://www.ipaustralia.gov.au/resources/news_new.shtml#13.  
IV. TRADE POLICIES BY SECTOR 
(3) M
INING AND ENERGY  
(ii) Energy 
 Western Australia and the Northern Territory 
 
(Page 97, paragraph 36)  
 As indicated in the report, Western Australia and the Northern Territory have their own electricity 
generators and have not yet entered the NEM.  
 
Question
 
 
What are the reasons why these two regions have not yet  joined the NEM?  Are they expected to join 
in the foreseeable future?   Answer
 
 
Australia’s electricity supply networks comprise three major transmission systems; in the eastern 
states the National Electricity Market (NEM) form s a single electrically connected system extending 
from Port Douglas in Queensland, through New Sout h Wales, the Australian Capital Territory, 
Victoria and Tasmania to Port Lincoln in South Australia.    
Western Australia's networks consist of the Sout h-West Interconnected System (SWIS) including 
Perth and the North-West Interconnected System (NWI S) for the mining areas in the north of Western 
Australia. While not connected electrically, the SW IS and NWIS are connected through gas pipelines. 
The SWIS accounts for approximately 77% of generation in Western Australia.  
The Northern Territory’s electricity industry is sm all and consists of three regulated systems: the 
Alice Springs regulated system; the Darwin–Kathe rine regulated system; and the Tennant Creek 
regulated system.  Historically, governments owned and operated the el ectricity supply chain from generation through to 
retailing.  Australian governments began to reform  the electricity industry in the 1990s, with a WT/TPR/M/244/Add.1 
Page 110  
 
 National Electricity Law (NEL) passed in 1996.  The NEL forms the legal basis for the creation of the 
NEM and at that time was agreed by Queensland, Ne w South Wales, the Australian Capital Territory, 
Victoria and South Australia.  Tasmania joined the NEM in 2005 and was physically  interconnected with the market in April 2006.  
While Western Australia and the Northern Territory  were afforded the option of joining the NEM, 
their geographic differences meant that it was more  appropriate to develop their own markets.  
Western Australia is continuing to develop its own energy markets, taking lessons from the 
establishment of the NEM as appropriate.  B. Report by Australia (WT/TPR/G/244)  III. TRADE POLICY 
(2)
  A USTRALIA 'S SERVICES AND INVESTMENT REGIME  
 
(Page 9, paragraph 30)   
We note that in 2009-10 Australia’s services econo my accounted for 76.5% of total industry gross 
value added (65.8% of GDP) and 20.8% of tota l exports, and as at August 2010 employed almost 
9.7 million persons, which is around 86% of the Australian workforce.  
 
Question
 
 
Which sectors and sub-sectors were the main cont ributors to Australia's services economy over the 
review period?  
Answer
 
 
The largest services industries in 2009-10 were;  financial & insurance services (9.9% of GDP);  
professional, scientific & technical services (6.8% of GDP);  health care & social assistance (5.8% of 
GDP);  public administration & safety (4.9% of GDP);  and transport, postal & warehousing (4.8% of GDP). 
 
Of the services industries, the largest contributors to real GDP growth in 2009-10 were;  financial & insurance services (0.30 of a percentage point);  pr ofessional, scientific & technical services (0.24 of a 
percentage point);  health care & social assistan ce (0.18 of a percentage point);  wholesale trade 
(0.16 of a percentage point);  and transport, postal & warehousing (0.11 of a percentage point). 
 Question
 
 Which sectors and sub-sectors were the main cont ributors to Australia’s services exports? In 
addition, how much industrial value or trade volu me was created by these sectors and sub-sectors 
respectively? 
 Answer
 
 
Service exports generated over $52 billio n in export income in 2009-10.  
 
In 2009-10, the largest services export sector was tr avel services, accounting for around 63% of total 
service exports and generating $33 billion in expo rt earnings. Travel services are comprised of 
business travel and personal travel services (which  includes education-related travel services).  
Transport services accounted for around 12% of to tal service exports and generated $6.2 billion in  WT/TPR/M/244/Add.1 
 Page 111 
 
 
  export earnings. The remainder of the services expor ts basket is comprised of a large number of 
relatively small sub-sectors.  Education-related travel services is the largest sub-component of total ser vices exports. In 2009-10, 
education-related travel services generated ove r $18 billion in export earnings and accounted for 
around 35% of total services exports. 
 
Question
 
 
Over the same period, how many  workers were employed in th e above services export sectors and 
sub-sectors respectively? And, if possible, could Australia please indicate how many of these were 
professionals?  Answer
 
 
There is no data available by which robust estimates  of employment in export services sectors can be 
derived. For instance, workers r ecorded as being employed in hospitality services could be providing 
both domestic services (when serving Australian residents) and export services (when servicing tourists).  
 
(10) R
EGIONAL INITIATIVES  
(11) B ILATERAL INITIATIVES  
 
(Pages 16-20, paragraphs 75-94)   
Generally, we can see that Australia has signed and implemented several regional and bilateral trade 
agreements (RTAs and FTAs), which can serve as bu ilding blocks for wider multilateral liberalization 
under the WTO.   
Question
 
 
Could Australia please provide further information on the industrial value or trade volume added to 
the services economy by the liberalization commitm ents of these RTAs and FTAs, and the amount of 
extra employment created in the service sectors?  
Answer
 
 
Comprehensive data on this question is not available . 
 
Question  
 
Furthermore, did the extra employment in th e services sectors impact those employed in the 
agricultural or manufacturing industries? If so, has Australia introduced any measures to provide 
assistance to these industries?  Answer
 
 
Data on the impact of FTA outcomes on changes in  employment levels in services sectors is not 
available.    
 WT/TPR/M/244/Add.1 
Page 112  
 
 Question  
 
It would be appreciated if Australia could provide details of the sensitive services sectors or sub-
sectors for which commitments have not yet been  undertaken under these RTAs and FTAs, and the 
reasons why these particular sectors ha ve not been included thus far. 
 
Answer  
 
Australia takes a comprehensive and ambitious appr oach to the negotiation of FTAs which aims at 
maximising the trade liberalisation outcomes.  Th is comprehensive approach applies equally to 
services and our starting position is that no service area is excluded a priori from potential coverage 
under any of our FTAs.  The eventual outcome in a particular FTA, including on specific services’ 
sectors, will be determined by the particular issu es and positions of the respective parties in that 
negotiation.  
Specifically, Australia has conclude d bilateral free trade agreements with New Zealand, the United 
States, Singapore, Thailand and Chile, and is now in the process of negotiations with China, Malaysia, 
Japan, the Gulf Cooperation Council, Korea and Indonesia. 
 
Question
 
 
Could it please elaborate further on the contributions and main areas of interest to Australia of these 
bilateral initiatives?  Answer
 
 
Given the broad trade and other economic ties that ex ist between Australia and the range of countries 
that we have agreed bilateral FTA agreements with, or are in the process of negotiating, it is difficult 
to provide any short list of priorities ("contributions " and "main areas") in response to this question.  
 Australia takes a "single undertaking" approach  to FTA negotiations, seek ing high quality outcomes 
on goods, services and investment simultaneously  Increasingly, a range of issues are incorporated into FTA negotiations which widen even further the expected contribution that an FTA will make to 
the bilateral economic relationship, for exampl e provisions on intellectual property, government 
procurement and competition policy which diversify the potential range  of important outcomes even 
further. 
 
Question
 
 
In particular, if Australia wishes to enhance regional  economic integration with more countries, what 
are the criteria it will use to select candidates for commencing a feasibility study or entering into FTA 
negotiations?  Answer
 
 Australia has experience in this area having alr eady agreed the Australia-New Zealand ASEAN FTA; 
we are also currently negotiating the Trans-Pacifi c Partnership (TPP) negotiations (with Singapore, 
Brunei, Malaysia, New Zealand, Chile, Peru, the US and Vietnam).  Although it is not an FTA 
Australia’s experience as a founding member of APEC is also relevant. 
 
Considering regional economic integration based agreem ents in general, there are a number of factors 
likely to be involved in judging their potential, including the existence of significant trade and economic relations with partner countries, and/or th e potential for an expansion of these relationships.  
In Australia’s case we also request other parties to  negotiate on a single undertaking basis whereby a  WT/TPR/M/244/Add.1 
 Page 113 
 
 
  comprehensive negotiating agenda is agreed to, and acknowledgement made of the need for high 
ambition, high quality outcomes.  In the case of TPP, parties have agreed to ai m to develop a high quality, comprehensive 21
st century 
FTA that can expand over time to become a platform for regional economic integration. 
 
 
ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN)  
 
WT/TPR/S/244  III. TRADE POLICIES AND PRACTICES BY MEASURE (1) O
VERVIEW  
 
Question 1  
 
Page 31, paragraph 2 : The WTO Secretariat’s report mentions  that Australia has made some 
unilateral reductions on tariffs applied to textiles,  clothing, and footwear and to passenger motor 
vehicles, resulting in the average applied MFN tariff rate having dropped slightly, from 3.8% in 2006 
to 3.1% in 2010. There are, however, still tariff pe aks in these products, whic h are higher than the 
average rate. The report also mentions that Austra lia plans to have further unilateral reductions by 
2015. Would Australia be able to elaborate on its pl ans for further unilateral tariff reductions by 
2015, in particular, on the details of the tariff re ductions - whether or not in a staged manner, and 
what the final rate is expected to be? 
 
Answer  
 
Australia’s program of legislated tariff reducti ons involves the reduction of applied tariffs on 
Passenger Motor Vehicles and related parts, and tex tiles clothing and footwear tariffs over a series of 
instalments.  On 1 January 2010 Australia conti nued this program by reducing tariffs on passenger 
motor vehicles to 5%, tariffs on footwear, fabrics an d a range of textiles to 5% and tariffs on certain 
made up textile items and clothing to 10% (from 17.5%).    The next, and final, scheduled tariff reduction is due to occur on 1 January 2015, when remaining 
tariffs on textile and clothing items will be reduced to 5%.  By this date, Australia will apply tariff 
rates of no more than 5% for all but 13 tariff lines (covering cheese and curd, fruit juices, and used 
passenger motor vehicles) which are subject to a specific duty rate.  
Question 2
 
 
Para 45. Page 49 : On standards, we note that Australia’s policy is that standards should be 
compatible with relevant international or inter nationally acceptable standards or practices, with a 
view to minimising trade impediments. In this re gard, Australia has aligned 70% of motor vehicle 
safety, anti-theft and emission standards with th e United Nations Economic Commission for Europe 
(UNECE) 1958 Agreement on technical standards  for automotives and parts regulations; and 
modified a further 10% of standards for adoption.  However, 20%, comprising 14 standards, are not 
aligned. Does Australia have any plans to alig n these remaining standar ds to international 
standards? If yes, would it be aligned with standar ds set by international standards setting bodies 
(ISSB) and which ISSBs? 
 WT/TPR/M/244/Add.1 
Page 114  
 
 Answer  
 
Australia has a long term policy of harmonising its ve hicle standards with international standards and 
is an active member of the United Nations Economic Commission for Europe (UNECE) World Forum for Harmonization of Vehicle Standards (W P29).  In 2000, Australia acceded to the 1958 
Agreement for the development of UNECE regulations  and in 2008 it acceded to the 1998 Agreement 
for the development of Global Technical Regulations  (GTRs). In 2010, Australia “applied” twenty 
nine UNECE regulations, further committing to th e mutual recognition of UNECE approvals aspect 
of the 1958 Agreement. Australia will continue its efforts to align its standards with UNECE 
regulations wherever practical. 
 
Question 3
 
 
Para 45, page 19 : We further note from the WTO Secretariat’s report that Australian standards for 
which there are no international standards exist for soils, aggregates, babies' cots, nightwear, and 
children's swimming aids. Does Aust ralia have any plans to develop, adopt or propose international 
standards for these?   
 
Answer  
 
The report notes clearly that no international standard s exist in relation to these issues.  Australia has 
no plans to propose an international standard. 
 
Question 4  
 Para 54, page 52 : Australia has maintained many quarantine controls and food standards that are 
stricter than relevant standards by inter national bodies and has a stringent sanitary and 
phytosanitary (SPS) regime. Such unduly strict me asures and controls have hampered trade. In this 
regard, does Australia have plans to review their meas ures so as to ease trade in products that are 
currently being affected by these measures?  Answer
 
 
Australia does maintain a strict sanitary and phyto sanitary regime, which is proportionate to Australia 
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. Th e Australian Government 
maintains its commitment to a robust, science-ba sed, framework to protect Australia's unique 
environment and biosecurity status. Australia base s its national standards as closely as possible to 
those of the World Organisation for Animal Hea lth (OIE), the International Plant Protection 
Convention (IPPC) and the Codex Alimentarius Co mmission.  However, in some cases, relevant 
standards do not exist or the international standard s do not deliver the level of protection required by 
Australia to maintain its appr opriate level of protection. 
 
Australia is progressively implementing risk-based in tervention strategies at the border to replace the 
previously mandated intervention targets following th e trials conducted at airports, mail centres, and 
seaports. Implementation will impact different importe d products in different ways. For some, nothing 
may change, while a small number may experience an  increased level of inspection. For most, and 
particularly for those which comply with quarantine requirements, it should result in less AQIS 
intervention and more efficient passage through  biosecurity controls without compromising 
Australia's quarantine integrity.    WT/TPR/M/244/Add.1 
 Page 115 
 
 
  SINGAPORE  
 WT/TPR/S/244  IV. TRADE POLICIES BY SECTOR 
 
Question
 
 Page 114, para 77 : Life Insurance Services - We note from the WTO Secretariat’s report 
(WT/TPR/S/244, page 114, paragraph 77), that "since 1995, Australia has not permitted foreign life 
insurers to operate local branches.   As a result foreign life insurers seeking to establish a commercial 
presence in Australia must estab lish an Australian subsidiary, which must then apply to APRA for 
registration".   Could Australia elaborate on whet her there are plans to u ndertake any liberalisation 
measures for this sector?  
 
Answer
 
 
An exception to the general rule cited in the qu estion exists for 'eligible foreign life insurance 
companies'.   Currently only insurers authorised and incorporated in the US are cons idered to be for 'eligible foreign 
life insurance companies'. Australia continues to monitor whether there is a case for expanding this 
category.  
Question
 
 
Page 120, para 93 : Maritime Services - The WTO Secretaria t’s report (WT/TPR/S/244, page 120, 
paragraph 93) notes that "plans were announced  in August 2010 for introducing measures to 
strengthen Australia's shipping industry with respect to its international competitors as well as other 
modes of transport domestically.  They would in clude a new tonnage tax, the implementation of 
existing coastal shipping principles consistent with  the Navigation Act, the introduction of mandatory 
training requirements, and the establishment of an Australian International Shipping Register and a 
Maritime Workforce Development Forum".  Would Au stralia have any intention to undertake further 
liberalisation measures for this sector, in view of  the plans to strengthen the shipping industry and 
make it more competitive?    Answer
 
 The Australian Government is not intending to ad opt measures further liberalising market access to 
this sector at this time.   
 
TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES  
Regional Trade Agreements & Australia’s Trade Policy  
 Page 23, para 21 : We read with interest from para 21, Pg 23 , of the WTO Secretariat’s report that in 
Nov 2009, the Australian Productivity Commission was asked to examine the effectiveness of 
preferential and regional trade agreements (RTAs) that Australia has entered into.  The report further 
mentioned that according to some submissions, RTAs involved negotiations, administrative, and 
compliance costs.  We would appreciate it if Australia could share with us some of the key findings and recommendations of its Productivity  Commission with regard to RTAs. 
 WT/TPR/M/244/Add.1 
Page 116  
 
 Answer  
 
All of the findings and recommendations of th e Productivity Commission Research Report on 
Bilateral and Regional Trade Agreements are publicly available at the following website: 
http://www.pc.gov.au/projects/study/trade-agreements 
 
Foreign Investment Regime 
 With reference to Pg 28, Section 8 on Foreign In vestment Regime, of the WTO Secretariat’s report, 
we welcome the recent changes made by the Austra lian government in further liberalising its foreign 
investment regime.  The report cited some examples,  such as the easing of the Government’s foreign 
investment screening requirements to now affect on ly major investment applications.  We are also 
pleased to hear that only 3 out of the more than 5,000 applications screen ed in 2008/2009 were 
rejected.  At the same time, however, we note that out of the 5,352 applications approved in that period, 3,086 were approved "subject to conditions".  We would app reciate it if Australia could share 
with us what some of these "conditions" are.  In addition, does the Australian government have plans 
in the pipeline for easing fu rther its screening regime? 
 
Answer
 
 
In relation to the above cited statistics, we note that  the 3 applications rejected all related to proposed 
real estate purchases and of the 3,086 approved “subj ect to conditions”, all but 5 of these related to 
real estate purchases.  Real estate related conditions ordinarily imposed at the time of approval include those relating to the period during which development must commence, requiring temporary 
residents to reside in and then sell established ( second-hand) dwellings once they ceased to reside in 
them, and reporting requirements. 
 
The Government reviews foreign investment pr oposals case-by-case.  However, under Australia's 
foreign investment policy, guidance is provided on different types of residential purchases, including 
whether the approval will be subject to cond itions.  For purchases of established (second-hand) 
dwellings to reside in or for redevelopment,  and for vacant land (residential or commercial), 
applicants are aware when applying  of the standard conditions that will apply to their approval.  For 
further information, see the declarations that acc ompany real estate applications (available at 
http://www.firb.gov.au/content/how_to_apply/manual_r ealestate.asp).  For applications in sectors 
other than real estate, there are no standard conditi ons.  For examples of where conditions have been 
imposed on approvals in sectors other than real est ate, refer to the press releases list on the Foreign 
Investment Review Board (FIRB) website at http://www.firb.gov.au/content/publications.asp? 
NavID=5. 
 In relation to the Australian Government plans to further its screening regime, Australia continues to 
review the appropriateness of its foreign investment  rules to ensure that they maintain the right 
balance between protecting Australia’s national inte rest and ensuring Australia is seen as a welcoming 
destination for foreign capital.  More broadly th ough, we do not consider that Australia’s foreign 
investment rules restrict investment into Australia .  While we maintain a broad foreign investment 
screening framework, we impose few actual foreign investment restrictions, and Australia has not rejected a foreign investment proposal in any bu siness sector since 2001 — when Australia rejected 
the Shell Group’s proposed acquisition of Woods ide Petroleum Ltd on national interest grounds. 
  WT/TPR/M/244/Add.1 
 Page 117 
 
 
  Question  
 Sanitary and Phytosanitary Measures 
 
Australia currently has an import health certificate requirement for the importation of live marine 
ornamental finfish into Australia, which include conditions:  
" that the fish are not sourced from a population asso ciated with any significant infectious disease or 
pests and there have not been any unusual or substantia l outbreaks of infectious fish disease or pests 
in the areas from which the fish have been collected during the 6 months prior to collection;  
 
the fish were collected from an area at least 5 kilometres from any finfish aquaculture operation and 
the fish in the consignment have not come into contac t with water, equipment or fish associated with 
farmed foodfish (fish farmed for human consump tion including recreational fishing) and the fish are 
wild caught and have not been bred or hatched on a farm or other premises."  
 
These requirements are not aligned to OIE. Wild-c aught marine finfish, unlike captive-bred marine 
species, do not stay in one zone/area indefinite ly prior to harvesting.  Singapore would like to 
understand the basis for the above impo rt health certificate requirement. 
 
Answer
 
 
Australia's import requirements with respect to mari ne ornamental finfish ar e based on an 1999 import 
risk analysis (IRA) and as such, they are OIE consistent.  Marine ornamental fish were considered in the IRA report to pose a minor risk because the pathways 
by which live marine ornamental fish could fi nd their way to natural waters (and form self-
maintaining populations) were limited, compared to  freshwater ornamental fish. The IRA therefore 
recommended only a baseline level of risk management  to address the inherent risk associated with 
importation of live animals.  Because of the opportunity for high disease prevalen ce and agent titre in farmed fish, the IRA team 
found it necessary to manage the associated risk by  including a requirement for separation from 
farmed foodfish in Australia’s import conditions. Of note, farmed fish were not known at the time of 
the IRA to be traded in the ornamental fish industry in Australia or abroad.  
 Similarly, the baseline risk management measur es included the requirement for sourcing marine 
ornamental fish from populations that have not been  subject to significant disease in the previous 6 
months; the rationale taking into consideration that  marine ornamental fish are in the main reef 
species, not migratory pelagic species.   
CHILE
 
 
I. TRADE POLICIES AND PRACTICES BY MEASURE 
(2)(vii) Standards and other technical requirements 
 
Question  
 
Paragraph 39, page 47 Where a technical regulation is issued by the Congress (Congreso), is it also 
notified to the WTO?  How does Au stralia proceed in such cases? WT/TPR/M/244/Add.1 
Page 118  
 
 Is it possible to have access to the best practice re gulation guide adopted by the Council of Australian 
Governments (COAG) in 2007?  Answer
 
 The Australian Government notifies technical regula tions passed by the Parliament of Australia in 
accordance with the requirements of the WTO Agreement on Technical Barriers to Trade. 
 The COAG guide to best practice regulation is available that:  http://www.coag.gov.au/ministerial_counc ils/docs/COAG_best_practice_guide_2007.pdf 
 
Question
 
 Paragraph 41, page 48 According to the Secretariat Report, five organizations other than Standards 
Australia are accredited to write Australian standards.  We woul d like to know whether these 
organizations write standards for specific sectors
 (do they specialize in specific sectors)? 
 Answer
 
 
The organisations write standards in specific se ctors such as pharmaceuticals, seafood, retail, 
communication and forestry.  The ABDSO website provides more information on its role in 
accrediting such organisations.  www.absdo.org.au 
 
Question  
 Paragraph 42, page 48  If reference is made to a voluntary standard in a technical regulation, does 
access to the standard become free (free of charge)? 
Would Australia please indicate to which sect ors those standards that have become mandatory 
essentially correspond, and which are the main sectors covered by the 35% of Standards Australia's 
catalogue, which are joint Australian/New Zealand Standards?  Answer
 
If a standard developed by a non-government stan dardising body such as Standards Australia is 
referenced in a technical regulation, access does not become free.    Standards that have been called up in legislati on range across many sectors, as do the 35% of joint 
Australian/New Zealand standards.  Standards referred to in legislation can be found via 
www.standards.org.au/DevelopingStandards/Legislationandcaselaw.aspx.   
 
II. TRADE POLICIES BY SECTOR 
(5)(vi) Communications 
 Paragraph 84, page 117 
 
Question
 
 
How long will it take to roll out the broadband netwo rk and thus ensure provision of the service?  Are 
there plans to subsequently privatize the company?  At  this time, are any private firms interested in 
acquiring this government-owned enterprise? 
  WT/TPR/M/244/Add.1 
 Page 119 
 
 
  Answer  
 
On 9 April 2009, the Australian Government establis hed a new company, NBN Co Limited, to build 
and operate an affordable high-speed  broadband network. It is anticipated that the NBN will be fully 
rolled out by December 2020 (see www.dbcde.gov.au/nbn).   
 
On 28 March 2011, the Australian Parliament passed  legislation which, amongst other things, governs 
NBN Co Limited’s privatisation arrangements.  
 
Part 3, Division 2 of the National Broadband Ne twork Companies Act 2011 (NBN Companies Act) 
contains provisions relating to Commonwealth ow nership and control of NBN Co Limited. The 
legislation provides for public reviews by the Productivity Commission and a Parliamentary Joint 
Committee, prior to any sale, to assess the impact that sale of th e NBN may have on regulatory, 
budgetary, competition and consumer matters. 
 
Five requirements must be met before the Comm onwealth can sell any of its equity in NBN Co 
Limited: 
 
1. the Communications Minister must declare that the NBN is built and fully operational; 
2. the Productivity Commission must conduct an inqu iry into regulatory, budgetary, consumer 
and competition matters relating to sale of the NBN, and table its report;  
3. a Parliamentary Joint Committee on the Ownership  of NBN Co Limited must consider the 
findings of that report;  
4. the Finance Minister must declare that conditi ons are suitable for an NBN Co Limited sale 
scheme; and 
5. an instrument stating conditions are suitable fo r an NBN Co Limited sale scheme must be 
tabled in both Houses of Par liament and not be disallowed. 
 
In its review, the Productivity Commission will have regard to future owners hip and control of NBN 
Co Limited.  
 
Until those five requirements have been comp lied with, NBN will remain 100% owned by the 
Australian Government.  
 
Further, if privatisation of NBN Co is ultimat ely approved, section 95 of the NBN Companies Act 
requires that NBN Co Limited be taken, for the pur poses of the laws of the Commonwealth or a State 
or Territory, not to be a public authority. Conse quently, foreign equity participation in NBN Co 
Limited will be subject to the Foreign Acquisitions  and Takeovers Act 1975, wh ich, for purchases of 
more than 15% of NBN Co Limited by a foreign pe rson, would include a consideration by the Foreign 
Investment Review Board of national interest matters.  
 
At this time, no private firm has advised Governme nt of any interest in acquiring NBN Co Limited. 
We cannot speculate about any intentions of any priv ate firms with respect to ownership of the NBN.  
 
(vii) Transport 
 Question
 
 
What would be the features of the air transport agreements that Australia envisages concluding?  
Which freedoms of the air would they include?  WT/TPR/M/244/Add.1 
Page 120  
 
 Answer  
 
Discussions on these issues would be appropriate ly pursued between aeronautical authorities.  
  JAPAN
 
 (Agriculture)  Report by the Secretariat 
 
III. TRADE POLICIES AND PRACTICES BY MEASURES (3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(ii) Export prohibitions, restrictions, and licensing  
Page 59~60 Para 77 
 Questions
 
 
Could Australia kindly provide details on the exp ort license measures for agricultural and food 
products? 
 Could Australia kindly indicate whether exportations  are permitted or not if an export license is not 
issued? In addition, please provide the informati on on the cases of non-issued licenses in the past. 
 
Answer
 
 
Australian exporters of cattle, sheep and goat meat  require a meat export license. After the initial 
application, the meat export license must be renewe d yearly on the anniversary date. Meat exporters 
must apply to the Department for a meat export license renewal.   
Meat exporters are granted an initial license and sub sequent renewals if they meet all requirements. 
 In the past 12 months all new applica tions and renewals have been granted. 
 
IV. TRADE POLICIES BY SECTOR 
(1) O
VERVIEW  
 Page 84, Para 2  Question
 
 
According to Australia's notification on its st ate trading circulated on 13 September 2010 
(G/STR/N/13/AUS), under the Rice Marketing Act 1983, the New South Wales Minister for Primary Industries was required to review the Act and a repo rt on the outcome of the review was due to be 
tabled in the each house of the New South Wal es Parliament by December 2010. What was the 
outcome of the review and how will it affect Australia’s rice exports? 
 
Answer
 
 
Due to the recent election in the state of New South Wales the Review has yet to be tabled in the New 
South Wales parliament. It is envisaged that this will happen in the near future, when the parliament 
next sits.   WT/TPR/M/244/Add.1 
 Page 121 
 
 
   
IV. TRADE POLICIES BY SECTOR 
(2) A GRICULTURE , LIVESTOCK , FORESTRY , AND FISHERIES  
(ii) Main developments 
 
Page 86 Para 9, Page 91 Para 22 
 
Question  
 
We heard that studies and breeding experimentati ons of GMO wheat have been launched to tackle 
drought and salt damage in Australia. However, peopl e in some countries are extremely sensitive on 
GMO foods. Could Australia kindly explain how Aust ralia views this fact and foresees the future 
prospects of GMO wheat production in Australia?  Answer
 
 
The regulation of genetically modified organisms and genetically modified food in Australia is 
achieved through an integrated legislative framework.  The framework requires that: genetically modified crops are not released to farmers unless they have 
been assessed as safe for human health and the en vironment; genetically modified foods are not 
approved for sale unless they have been assessed as safe ; foods that are approved must be labelled to 
allow for consumer choice.  The intentional release of a genetically modified  crop into the Australian environment must be 
licensed by the Gene Technology Regulator, an independent statutory office holder responsible for 
administering and enforcing the Gene Technology Act 2000. The license will only be issued if risks can be managed so as to protect the health and safety of people and the environment.   The Gene Technology Regulator issued a licence for fi eld trials of limited and controlled release of up 
to 150 lines of wheat that have been genetically modified for enhanced carbon assimilation in drought 
and heat prone environments in June last year. The trials will run until December 2013. 
 The trials will assess the agronomic performance of the GM wheat lines for biomass production, grain 
weight and yield under rain-fed and drought/heat prone  conditions. Plant material or products from 
the GM wheat will not be used for human food or animal feed, or in the production of therapeutic 
goods. 
 Agrifood Awareness Australia, an agriculture indust ry body providing quality, factual, science based 
information on the use of gene technology in agricu lture, released a report late last year titled 'GM 
wheat – a seven to ten year program of consultation and collaboration.' This report highlights that industry is taking the long term view that GM wheat is at least seven years away from 
commercialisation. 
 
Questions
 
 We heard that there has been abnormal weather, such  as heavy droughts or massive floods caused by 
heavy rain in Australia in recen t years. More recently, there wa s a significant decrease in wheat 
production due to drought in western Australia last  year, and there has been damage to wheat quality 
and export infrastructure due to heavy rain in east ern Australia since the end of last year. Under 
these circumstances, could Australia kindly explain how it will carry out its responsibility to supply its 
wheat to foreign countries stably to fulf il their domestic demand in the future? 
 WT/TPR/M/244/Add.1 
Page 122  
 
 Could Australia kindly provide the outlook for the influence of abnormal weather (e.g. drought) 
resulting from climate change on the production and expor ts of agricultural products in the future? In 
addition, please explain the measures taken by the agriculture sector to tackle climate change. 
 
Answer  
 In its Australian Commodities December Quarter 07.4 report, ABARE presented an analysis of the 
potential medium to long term economic and agricultur al trade impacts of potential changes in climate 
on Australian and global agriculture sectors (Box 2).  The ABARE report can be found at www.abareconomics.com/publicati ons_html/ac/ac_07/a1_dec.pdf. 
 
Economically, increases in climatic variability ar e likely to see corresponding increases in profit 
variability. Export markets will also be affected by  climate change and Australian producers will need 
to manage their risks to ensure continued supply to such markets and seize opportunities to fill any 
global food shortfalls as a result of climate change. 
 
The Australian Government encourages preparedn ess to help farmers develop skills, knowledge and 
resources to make and implement business decisions that minimise their exposure to risks.   The Exceptional Circumstances (EC) arrangements are the Government’s primary vehicle for 
providing direct assistance to eligible farmers and small businesses affected by rare and severe 
("exceptional") events — typically climatic events, such as drought.  
 Additionally, the Australia’s Farming Future progr am is the Government’s climate change initiative 
for primary industries.  The objective of Australia’s Farming Future is to equip primary producers to 
adapt and adjust to the impacts of climate cha nge. The initiative contains a number of elements, 
including the Climate Change Adjustment Program  (CCAP), which provides funding for individually 
tailored professional advice and adjustment training to  help farmers manage the impacts of climate 
change.   
Reports by the Government 
 
(11) B
ILATERAL INITIATIVES  
(i) Australia's FTAs  Page 18, Para 84 
 
Question
 
 Could Australia kindly explain concretely the mechanism  of the CSQ for Australian beef (i.e. the role 
of the US government/private companies in achieving the specific amount of CSQ) in the "Australia - 
United States Free Trade Agreement"? 
 
Answer
 
 
The Australian Government has legislative responsib ility for administering the allocation of quota to 
Australian beef exporters under the 2005 Australia – United States Free Tr ade Agreement (AUSFTA). 
Government aims to ensure that the quota admi nistration system minimises government intervention 
in the marketplace, optimises the quota's commer cial value to Australia, minimises barriers to 
exporting and is administered consistently, tran sparently and efficiently. The government achieves 
this through the Australian Quarantine and Inspec tion Service (AQIS) and the Quota Administration 
Unit within the Department of Agri culture, Fisheries and Forestry. 
  WT/TPR/M/244/Add.1 
 Page 123 
 
 
  Australian companies that want to export beef to  the US must hold an export license and apply to 
AQIS for a health certificate for each shipment. On ce AQIS has processed an application to export, 
details of the application are forwarded to the Qu ota Unit for consideration under the relevant quota 
legislation.  
The Quota Unit allocates US beef quota to exporter s on a first–come–first–served basis. The annual 
quota allowance begins at zero on 1 January each year, and in 2011 the total quota allowance is 408 214 tonnes. This allocation method minimises costs and allows companies to export beef to the 
US based on market signals. The system does not  penalise companies that choose not to export 
product to the US because of a lack of commercial incentive in  the marketplace. 
 
If quota is available, the Quota Unit issues the exporte r with a Tariff Rate Quota Certificate and sends 
an electronic copy of the certificate to the US Cu stoms Service, which uses the certificate to assist 
with their import clearance process. The government recovers the cost of administering the quota scheme –Australian exporters are currently charged 0. 02 of a cent per kilogram of beef exported to the 
US ($2 a tonne). The government does not play a di rect role in facilitating commercial relationships 
between Australian beef exporte rs and US beef importers. 
 The government has mechanisms in place to encourag e full utilisation of the quota in times when the 
US market is lucrative. If 85% of the quota volume  is shipped before 1 October, the Quota Unit 
allocates the remaining 15% to exporters based on the amount of beef they have shipped to the US in 
the past two years. This ensures that committed exporters are given the opportunity to utilise the 
remaining 15% of quota volume. Due to the presence of other more lucrative export markets, the 85% 
'trigger' has not been used since its introduction in 2005.  
(Standards and other technical requirements) 
 
Report by the Secretariat 
 III. TRADE POLICIES AND PRACTICES BY MEASURE (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(vii)  Standards and other technical requirements 
 Page 47, Para 39  Question
 
 
In October 2010, the Australian Quarantine and In spection Services (AQIS) introduced a test on the 
Iodine content in imported seaweeds. Please presen t us with details of this measure as well as 
scientific explanations for the need for such a test.  
 
Answer  
 In April 2010 Food Standards Au stralia New Zealand (FSANZ) wrote to AQIS advising of the risk 
assessment conducted on seaweed.  Th e advice identified species of seaweed (brown algae) requiring 
AQIS to take action on seaweed with iodine levels above 500mg/kg.  
Based on FSANZ advice, AQIS took steps to include brown algae as a Risk Category Food for iodine 
testing under the Imported Food Inspection Scheme.  Th is change came into effect in October 2010. 
Analysis of the AQIS Import Management System database (AIMS) indicates that seaweed from Japan is the most referred and tested under the Imported Food Inspection Scheme. 
 WT/TPR/M/244/Add.1 
Page 124  
 
 (Anti-dumping and countervailing measures)  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(vi) Contingency measures 
(a) Anti-dumping and countervailing measures 
Page 46, Para 35 
 
Question  
 Anti-dumping measures must be phased out in 5 ye ars in principle in a ccordance with the WTO 
Agreement. Only if the lifting of the measures ma y cause continued/renewed dumping and damages, 
the period of the measures may be extended as an exception. However, the Australian government has 
had in place the measure on PVC exports from J apan for nearly 20 years. Such long-term industry 
protection cannot be reasonable an d justified. The Japanese governme nt calls for the Australian 
government to quickly remove unfairly continued anti -dumping measures. Please explain the view of 
government on this subject.  Answer
 
 Australia disagrees with Japan that "anti-dumping measu res must be phased out in 5 years in principle 
in accordance with the WTO Agre ement". Article 11.1 of the Anti-Dumping Agreement clearly 
provides that "an anti-dumping duty shall remain in  force only as long as and to the extent necessary 
to counteract dumping which is causing injury".  Article 11.3 of the Anti-Dumping Agreement 
provides, relevantly, that "any definitive anti-dumpi ng duty shall be terminated on a date not later 
than five years from its imposition (or from the date of the most recent revi ew under paragraph 2 if 
that review has covered both dumping and inju ry, or under this paragraph), unless the authorities 
determine, in a review initiated before that date… that  the expiry of the duty would be likely to lead to 
continuation or recurrence of dumping and inju ry." The continuation of measures on PVC is 
consistent with Article 11.3.  Australia does not use anti-dumping measures for protectionist reasons: 
the imposition of an anti-dumping measure is a legitimate right under the WTO Agreements to 
counteract injurious dumping.  Further, continuatio n reviews are only instituted on the receipt of an 
application from domestic industry.  Australia is  strongly supportive of clarifying sunset reviews 
under Article 11.3 of the Anti-Dumping Agreemen t to provide clarification and guidance to 
investigating authorities and to improve procedures.   
 III. TRADE POLICIES AND PRACTICES BY MEASURE (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(vi) Contingency measures 
(a) Anti-dumping and countervailing measures  
Page 46, Para 36 
 Question
 
 
In December 18, 2009, the Australian Productiv ity Commission, the Australian Government’s 
independent research and advisory body, submitted a final report to  the Parliament House and 
recommended broader reforms in the curren t anti-dumping and countervailing system. Japan 
recognizes that changes in the anti-dumping and coun tervailing system of Australia may have a great 
impact on many Japanese firms wh ich export to Australia. Therefore, Japan would like to know the 
progress of the examination of the reform in th e Australian Government and to what extent the 
Australian government refers to the report for the examination.  WT/TPR/M/244/Add.1 
 Page 125 
 
 
   
Answer  
 
The Productivity Commission (PC) concluded that Australia retain an anti-dumping/countervailing 
system, given that the benefits of providing access to anti-dumping remedies comes at a very small 
overall cost to the community.  The PC expressed th e view that the current anti-dumping system has 
some deficiencies.  The PC made 20 recommendati ons for changes to improve the operation of the 
current system. Details of the findings and recommenda tions are set out in the PC's report available at: 
http://www.pc.gov.au/projects/inquiry/antidumping/report   
The Australian Government is considering the PC's  report and recommendations to ensure that any 
changes made will deliver the intended benefits and still comply with Australia's international 
obligations.  
(Government Procurement) 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(viii) Government procurement  
Page 54, Para 61 
 Question
 
 How is the GPA inconsistent with Australia’s appr oach to regulation in the public sector? Have there 
been any changes regarding the Australian rules on government procurement since the previous 
Trade Policy Review of Australia?  
 
Answer
 
 
The Australian Government (Central) maintains a non-discriminatory, transparent procurement 
framework with an emphasis on efficient, effective and ethical use of public resources.  A key 
concern of Australia regarding the existing GPA is  that it requires parties to run procurement 
processes in accordance with a range of prescriptive and inflexible rules. Examples include provisions 
on selective tendering, time limits, li mited tendering, negotiations and domestic review procedures, all 
of which contain a degree of over-prescription or infl exibility that would inhibit Australia’s practices 
without genuine benefit to procuring entities or suppl iers, either domestic or foreign. While Australia 
is not actively pursuing GPA accession, as an observer,  it has been closely following negotiations on 
the revised GPA since it was provisionally adopted mo re than four years ago. A brief summary of 
changes to the Commonwealth Procurement Gu idelines made in 2008 is available at: 
http://www.financeminister.gov.au/a rchive/media/2008/mr_312008.html. 
 WT/TPR/M/244/Add.1 
Page 126  
 
 (Industrial designs)  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(v) Intellectual property rights  
 Page 80, Para 127  
 
Questions
 
 
As for the following requests with respect to Australia’s design registration system from a user 
association in Japan, please inform us of what pr ospects Australia has for the relevant revision of the 
system, if any, which includes:  (1) Introduction of a system for the deferment of publication;  
(2) Extension of terms of protecti on (e.g. duration of 20 years);  and 
(3) Extension of the scope of the grace peri od (extending to disclosures resulting from an 
applicant’s own actions other than those at authorized exhibitions). 
 Answer
 
 Australia is not currently proposing to revise its desi gn registration system to deal with the matters of 
deferment of publication, extension of terms of pr otection and extension of the scope of the grace 
period. 
 
(Services)  
IV. TRADE POLICIES BY SECTOR 
(5) S
ERVICES  
(ii) Domestic support 
 
Page 107, Paragraph 61 
 Question
 
 
These measures are available to dom estic and foreign firms alike. 
 According to the Report by the Secretariat, "[i]n 2008-09, the services sector was estimated to have 
received around 45% of estimated budgetary assistance available to all sectors of the economy…," 
Japan would like to understand if such budgetary assistance was provided on a non-discriminatory basis between Australian suppliers and foreign suppliers.   
 
Answer
 
 
The increase in the number of tax expenditures main ly reflects the reporting of the goods and services 
tax concessions (which were not reported prior to the 2008 Tax Expenditure Statement) and increases 
in the number of tax expenditures reported, partic ularly for business.  The main business income 
related tax incentives include the:  
• short term small business and general bus iness tax break (which was available for 
purchases made between 13 December 2008 and 31 December 2009); 
• proposed resource and development (R&D) tax incentive (intended to replace 125% 
R&D Tax Concession, the Tax Offset, the 175% Premium, and the International 
Premium);  WT/TPR/M/244/Add.1 
 Page 127 
 
 
  • accelerated and simplified depreciation for small business (as from 2007); and 
• small business CGT concession measures (the small business 15-year exemption, the 
small business active asset 50% reduction, the small business retirement exemption, and the small business roll over). 
 
In terms of eligibility for the small business ta x concessions, broadly, an entity can satisfy the 
$2 million aggregated turnover if the total annual turnover for the entity, its affiliates and entities 
connected with it is not more than $2 million.  A small business entity is able to utilise the small 
business tax concessions provided it also satisfi es any additional criteria that apply to each 
concession. 
 
IV. TRADE POLICIES BY SECTOR 
(5) S
ERVICES  
(iv) Regional and bilateral agreements on services  
Page 109, Paragraph 63 
 According to the Report by the Secretariat, "Austra lia undertook, especially in its agreement with the 
United States, commitments that go beyond not on ly its GATS commitments, but also its revised 
services offer, … in such secto rs as business, audiovisual, financial, tourism and transport services," 
Japan would like to request Australia to briefly ou tline what commitments Australia provided which 
go beyond its revised offer, especially in the sector of business, tourism and transport services and under which regional and bilateral agreements. 
 
Answer
 
 It is not a straightforward exercise to compare sectoral commitments in the WTO and FTAs.  The 
architecture of the particular FTA versus the ri ghts and obligations under the GATS are different and 
this has an impact on the market access (and national treatment) commitments in the WTO or the individual FTA.    IV. TRADE POLICIES BY SECTOR (5) S
ERVICES  
(iv) Regional and bilateral agreements on services  
Page 109, Paragraph 63  
Question
 
 
Japan would like to know how the mutual recognition of licenses and qualifications is agreed on, and 
incorporated into the regional and bilateral agreem ents of Australia, or any other international 
agreements.(Such licenses and qualifications for mut ual recognition include, for example, educational 
records or professional experiences obtained, requiremen ts met, or licenses or certifications granted 
in other countries.)   
 
Answer  
 In relation to the Australian negotiating position for any FTA a 'Whole of Government' (WOG) 
process is taken whereby a range of views and information may provided by various sources, 
including government departments and agencies (F ederal and State), businesses and unions, academic 
and research bodies and interested members of the pub lic.  The outcome of this process is agreed by 
Cabinet.  This WOG process covers any MRA elemen ts in negotiations.  In particular Australia’s 
approach to mutual recognition agreements (MRA) within any given regional and bilateral agreement WT/TPR/M/244/Add.1 
Page 128  
 
 is driven by focused industry interests relevant to  the area of concern.  The specific details of the 
MRA and how it is incorporated into the agreemen t will depend on the nature of the agreement and 
what each party is seeking to achieve.  
 
(Telecommunications) 
 
IV. TRADE POLICIES BY SECTOR 
(5) S ERVICES  
(vi) Communications 
(a) Telecommunications 
 
Page 114, Paragraph 80 (Note 190) 
 
Question  
 
In Note 190, it is described that ULLS is not ava ilable in 90% of exchanges even though "there is no 
technical impediment to unbundling at all locati ons."  Japan would like to understand the background 
of such a situation that ULLS is not available in a majority of locations.    Also, Japan would like to know if there is any plan to  more strictly enforce the obligation of providing 
ULLS.  
Answer
 
 
We consider the use of this statistic in isolati on to over-simplify the situation in Australia.  All 
exchanges are subject to a requi rement to unbundle local loops on request (as the ULLS has been 
declared in all locations throughout Australia).  Th ere is no technical impediment to unbundling at all 
locations, and there is no failure of enforcem ent, as the Australian Competition and Consumer 
Commission ("ACCC") is effective and thorough in  enforcing access obligations.  Telstra, the access 
provider, has not refused to allow access seekers to access the ULLS.  Rath er, access seekers have 
only chosen to take advantage of their right to access the ULLS in somewhat over 10% of Telstra’s 
local exchanges.  Those exchanges are generally  exchanges in metropolitan areas which serve large 
numbers of premises, whereas the other 90% of ex changes include many small exchanges in rural, 
regional and remote areas where it is commercially  unfeasible to utilise the ULLS for one or more 
reason (e.g. a large proportion of the lines connect ed to the exchange having long line lengths 
unsuited to DSL, or the exchange serving a sma ll number of premises, making it uneconomical for 
other providers to install their equipment ther e to access the ULLS).  As of end June 2008, the 
537 local exchanges subject to DSL competition vi a the ULLS contain most of the Australian 
population; analysis conducted by the ACCC sugg ests that access seekers us ing their own DSLAMs 
now have a footprint of 12.2 million people.   (ACCC report Telecommunications Competitive 
Safeguards for 2007-08, page 22).  
Australia is of the view that the regulatory regime  is working appropriately  with regard to ULLS. 
  WT/TPR/M/244/Add.1 
 Page 129 
 
 
  IV. TRADE POLICIES BY SECTOR 
(5) SERVICES (vi) Communications 
(a) Telecommunications 
 
Page 117, Paragraph 84 
 Question
 
 
Japan would like to know the future plan of, including the schedule for, the priv atization of NBN Co., 
and if there is a plan to impose any restrictions on foreign equity participation.  
Answer
 
 
On 28 March 2011, the Australian Parliament passed  legislation which, amongst other things, governs 
NBN Co Limited’s privatisation arrangements.  
 Part 3, Division 2 of the National Broadband Ne twork Companies Act 2011 (NBN Companies Act) 
contains provisions relating to Commonwealth ow nership and control of NBN Co Limited. The 
legislation provides for public reviews by the Productivity Commission and a Parliamentary Joint 
Committee, prior to any sale, to assess the imp act that sale of the National Broadband Network 
(NBN) may have on regulatory, budgeta ry, competition and consumer matters. 
 Five requirements must be met before the Comm onwealth can sell any of its equity in NBN Co 
Limited:  
1. the Communications Minister must declare that the NBN is built and fully operational; 
2. the Productivity Commission must conduct an inqu iry into regulatory, budgetary, consumer 
and competition matters relating to sale of the NBN, and table its report;  
3. a Parliamentary Joint Committee on the Ownership  of NBN Co Limited must consider the 
findings of that report;  
4. the Finance Minister must declare that conditi ons are suitable for an NBN Co Limited sale 
scheme; and 
5. an instrument stating conditions are suitable fo r an NBN Co Limited sale scheme must be 
tabled in both Houses of Par liament and not be disallowed. 
 In its review, the Productivity Commission will have regard to future owners hip and control of NBN 
Co Limited.  
 Until those five requirements are complied with, NB N Co will remain 100% owned by the Australian 
Government.    Further, if privatisation of NBN Co is ultimat ely approved, section 95 of the NBN Companies Act 
requires that NBN Co Limited be taken, for the pur poses of the laws of the Commonwealth or a State 
or Territory, not to be a public authority. Conse quently, foreign equity participation in NBN Co 
Limited will be subject to the Foreign Acquisitions  and Takeovers Act 1975, wh ich, for purchases of 
more than 15% of NBN Co Limited by a foreign pe rson, would include a consideration by the Foreign 
Investment Review Board of national interest matters.   WT/TPR/M/244/Add.1 
Page 130  
 
 IV. TRADE POLICIES BY SECTOR 
(5) SERVICES (vi) Communications 
(b) Broadcasting, advertisement, and film production 
Page 118, Paragraph 86 
 Question
 
 Japan would like to know if the license for televisi on broadcasters (both free over-the-air television 
and pay-TV) is provided on a non-discriminatory basis between Australian and foreign suppliers. 
 Answer
 
 
The Broadcasting Services Act 1992 (BSA) provides th at commercial television broadcasting licences 
and subscription television broadcasting licences ma y not be allocated to an applicant unless the 
applicant is an Australian-registered company (re gistered as a company under Part 2A.2 of the 
Corporations Act 2001)  and has share capital. Ho wever, any such applicant company may be owned 
or controlled by domestic or foreign persons or entities without restriction under the BSA.  
 Australia’s media industry is a 'sensitive sector' under the Australian Government’s Foreign 
Investment Policy. This means that any foreign investor who seeks more th an 5% equity in an 
Australian media company must apply for approval from the Treasurer, who may grant that approval 
subject to certain conditions.  The Government may also reject foreign investment proposals which are determined to be contrary to 
the national interest under the Foreign Acquisitions and Takeovers Act 1975.  
 
(Maritime services) 
 
IV. TRADE POLICIES BY SECTOR 
(5) S
ERVICES  
(vii) Transport 
 Page 120, para 93  
Question
 
 As mentioned in para 93, page 12 0, the authorities decided to retain the exemption for the liner 
shipping conference after the 2005 review and they a re supposed to have a further review of the 
exemption by 2011/12. Japan would like to know th e state of play for reviewing the exemption.  
 
Answer
 
 
The Australian Government is committed to stre ngthening Australia's shipping industry and is 
considering a further review of Part X, noting the changing shipping environment. No decision has 
been made to date to co mmence such a review.   
  WT/TPR/M/244/Add.1 
 Page 131 
 
 
  IV. TRADE POLICIES BY SECTOR 
(5) S ERVICES  
(vii) Transport  
Page 120, para 93  
Question
 
 
As mentioned in para.93, page 120, Australia announced "Stronger shipping for a stronger economy" 
in August 2010, which includes a new tonnage tax. Wi th regard to this tax system, Japan would like to 
ask the following 4 questions: 
 
1. the policy intention and purpose that the go vernment will introduce a new tonnage tax (for 
example, to achieve increasing the Au stralian-flagged vessels, etc. ), 
2. the institutional design of the tonnage tax, for ex ample, the range (which flag of registry), the 
requirement of rate of Australian vessels,  handling if an applicant does not fulfil the 
requirements, etc. ( if it is not an imposition) 
3. if there are any other preferential tax systems than the tonnage tax, what kind of tax system 
Australia will introduce in the future or have cu rrently introduced for ships, international 
shipping operators or ship owners. (Japan wo uld like to know, in particular, who is 
benefiting, what kind of taxes, what is the c oncept of the measures (for example, special 
depreciation on ships for ship owners, deduc tion for Australian international shipping 
operators, etc.), 
4. if there are any other preferential measures than the tax system, what kind of measures 
Australia will introduce in the future or has introduced recently. 
 
Answer  
 
The Australian Government’s objectives for shipping are to: 
• ensure Australia has a viable shipping industry,  able to provide adequate coastal shipping 
services at a reasonable price for customers/cons umers and which reinvests in its ships when 
they reach the end of their economic lives; 
• ensure Australian shipping maintains and potentia lly grows its share of the national transport 
system in order to meet the growing transport t ask efficiently, effectively, safely and with the 
least impact on the environment;  
• provide opportunities to increase Australia’s par ticipation in international shipping, reflecting 
the significance of shipping to our trade b ase and the linkages between strong domestic and 
international sectors; 
 
A Commonwealth Parliamentary Inquiry into th e Australian coastal shipping trade noted that 
Australian shipping companies are subject to the standard corporate tax rate arrangement, which puts them at a competitive disadvantage with ships register ed in countries which offer zero or low tax rates 
for shipping businesses.   Proposed financial incentives will include access to either the tonnage tax or 
a tax scheme combining accelerated depreciation and relaxed capital gains tax provision for selected 
capital assets.    
 Many of the details rela ting to the institutional design proposals are currently under consideration. We 
are therefore not in a position to answer th ese questions definitively at this time.  
 WT/TPR/M/244/Add.1 
Page 132  
 
 (Insurance services)  
IV. TRADE POLICIES BY SECTOR 
(5) S
ERVICES  
(v) Financial Services (b) Insurance 
 
Page 114, Para 78 
 
Question
 
 
According to the Report by Secretariat, private health insurers must be authorized by an industry-
specific regulator, and some types of compul sory insurance have "sta te-based" licensing. 
 Japan would like to know if such private hea lth insurers and state-based  licensed insurers are 
included under the regulatory oversight of APRA.  
Answer
 
 
APRA does not regulate private health insurers or state-based licensed insurers.  APRA does however 
liaise on a regular basis with the Private Health Insurance Administration Council (PHIAC), which 
regulates private health insurers, and the state-based  regulators, required for insurers offering certain 
classes of compulsory insurance,  such as workers' compensation and third-party motor insurance.  
 
IV. TRADE POLICIES BY SECTOR 
(5) S ERVICES  
(v) Financial Services 
(b) Insurance 
 
Page 114, Para 77 
 
Question  
 The Secretariat notes that "[i]n 2004, under the AUS FTA, Australia agreed to allow U.S. life insurers 
to apply for registration to operate through bran ches," Japan would like to know whether that 
agreement is consistent with Austra lia’s domestic law and regulations.  
 
Answer
 
 
Implementation of the AUSFTA, which allows US life insurers to apply for registration to operate 
branches in Australia, is consistent with Australia’s  domestic laws and regulations.  This is because 
the Life Insurance Act 1995 and the Life Insurance Regulations 1995 was ame nded to allow US based 
life insurance businesses to apply to  establish branches in Australia. 
   WT/TPR/M/244/Add.1 
 Page 133 
 
 
  CANADA  
 Report by the Secretariat (WT/TPR/S/244)  Part III. Trade Policies and Practices by Measure: (2) Measures Directly Affecting Imports; 
(vii) Standards and other technical requirement s (b) Sanitary and phytosanitary measures: 
paragraph 55, page 53: 
 
Question
 
 
In March 2010, Australia announced a BSE import po licy whereas countries that have had one or 
more cases of BSE would have to undergo a full risk assessment process prior to the resumption of 
trade.  As Canada has previously raised with Aust ralia, we remain concern ed that Australia's 
assessment process and requirements go beyond the pr ovisions of the World Organisation for Animal 
Health's (OIE) Terrestrial Animal Health Code. Mo reover, Canada is concerne d that Australia is not 
prepared to immediately accept Canadian boneless b eef given that this is a commodity which is 
exempt from specific BSE-related conditions under the Code.  Taking into account that the WTO Agreement on  the Application of Sanitary and Phytosanitary 
Measures (SPS Agreement) encourages WTO members to establish national SP S measures consistent 
with international standards, guidelines and recommendations, where these exist, and the importance 
of the SPS Agreement provisions for international trade, why has Australia decided not to align its 
BSE import policy to OIE guidelines?  Answer
 
 The Australian Government took into account its World Trade Organization (WTO) rights and 
obligations when it announced its new BSE import po licy specifically our rights and obligations under 
the WTO Agreement on the Application of San itary and Phytosanitary Measures (the SPS 
Agreement). Australia has the right to set its own appropriate level of protection (ALOP) and to conduct risk 
assessments on products to determine whether me asures need to be applied to achieve ALOP. 
 
Australia’s new policy for the import of beef a nd beef products was established by the Australian 
Government following the completion of a scientific review  
o the Government decided, consistent with the SPS Agreement, that Australia would conduct its 
own science-based risk assessment process to dete rmine measures appropriate to Australia for 
the management of risks to human health a nd also to address any animal quarantine risks 
o while Australia’s questionnaire to assess countries’ BSE food safety risk status is largely 
based on the OIE, there are areas not suffici ently covered by the OIE methodology which 
Australia considers necessary in assessing risk to  human health and animal quarantine risk 
o these include animal traceability, identificati on, animal slaughtering and processing systems. 
 
Part III. Trade Policies and Practices by Measu re: (4) Measures Affecting Production and 
Trade; (iii) Competition and Consumer Policy (a ) Competition Policy: paragraph 98, page 70: 
 Question
 
 
According to the Secretariat Report, "As part of the National Competition Policy, under the 
Competition Principles Agreement (CPA), Commonw ealth, state and territory governments undertake 
to review and reform legislation that restricts competition. The Council of Australian Governments WT/TPR/M/244/Add.1 
Page 134  
 
 (COAG) Reform Council has monitored progress of  reforms since 2007, and assessed the costs and 
benefits of these reforms in several areas (e.g. stand ards, electricity, transport, infrastructure)." 
 Could Australia kindly provide some examples of it s recent efforts to review and reform legislation 
that restricts competition? (b) Could Australia pl ease briefly describe some of the results of its 
cost/benefit assessment of these re forms in any of the areas mentioned (e.g. standards, electricity, 
transport, infrastructure)? 
 
Answer
 
 
National Competition Policy  
The National Competition Policy was agreed by the Australian and State and Territory governments 
in 1995.  The reforms included the extension of anti-competitive conduct legislation to all sectors of 
the economy, introduction of a national access regime  to provide access to essential infrastructure 
services with natural monopoly characteristics, a le gislative review program to assess whether 
legislative restrictions to competition were in the public interest, sector specific reforms to the 
electricity, gas, road transport and water sectors,  and structural reforms to significant government 
businesses and ensuring competitive neutrality between  private sector and significant government 
business.  
A review of the reforms in 2005 found that the Na tional Competition Policy has delivered substantial 
benefits to the Australian community which greatly outweighed the costs.  The review estimated that 
the observed productivity and price changes in key infr astructure sectors (electricity, gas, urban water, 
telecommunications, urban transport, ports and ra il freight) in the 1990s, to which NCP and related 
reforms have directly contributed, have served to  permanently increase Australia’s GDP by 2.5%, or 
around $20 billion. 
 http://www.pc.gov.au/__data/asset s/pdf_file/0016/46033/ncp.pdf 
 Further information on the legislation review a nd reform program commitment under the Competition 
Principles Agreement can be accessed via the following website: 
 
http://ncp.ncc.gov.au/pages/legislation  This includes the sixth and final edition of the Legislation Review Compendium produced by the National Competition Council, which can be  accessed via the following website: 
 
http://ncp.ncc.gov.au/docs/LRC10-001.pdf  The Competition Principles Agreement also provide for a party that has reviewed legislation that 
restricts competition to review the legislation at least once every ten years. 
 
National Partnership Agreement to deliver a Seamless National Economy 
 
In 2007, the Council of Australian Governments (COAG)  reinvigorated the reform process, with the 
reforms underpinned by more effective Commonwea lth-State financial arrangements.  In 2008, 
COAG agreed to the National Partnership Agreement to deliver a Seamless National Economy  (SNE 
NP), which spans 27 deregulation priorities, eight  competition reforms streams (primarily energy, 
infrastructure and transport) as well as reform of regulatory processes.   WT/TPR/M/244/Add.1 
 Page 135 
 
 
  While the SNE NP covers both competition and dere gulation reforms, a number of the deregulation 
reforms in respect of harmonisation of legisla tion also have a competition element by reducing 
barriers to entry.  A copy of the SNE NP can be accessed from the following website: 
 
http://www.federalfinancialrelations.gov.au/cont ent/national_partnership_agreements/OT001/ 
Seamless_National_Economy.pdf  A description of the 27 deregulation priorities a nd eight competition reforms under the SNE NP, and 
the other non- SNE NP reforms, can be found in  the implementation plans, which can be accessed 
from the following websites:  http://www.coag.gov.au/coag_meeting_outcom es/2011-02-13/docs/revised_np_sne_part_1_ 
deregulation_priorities_imp_plan.pdf 
 
http://www.coag.gov.au/coag_meeting_outcom es/2011-02-13/docs/revised_np_sne_part_2_ 
deregulation_priorities_imp_plan.pdf  http://www.coag.gov.au/coag_meeting_outcomes/ 2011-02-13/docs/revised_imp_plans_coag_ 
deregulation_reforms _outside_npa_sne.pdf 
 
The COAG Reform Council’s National Partnershi p Agreement to Deliver a Seamless National 
Economy: Performance report for 2009-10 can  be accessed from the following website: 
 http://www.coagreformcouncil.gov.au/re ports/docs/seamless_economy_2009-10.pdf 
 
The COAG Reform Council’s previous National Pa rtnership Agreement to Deliver a Seamless 
National Economy: Report on Performance 2008–09 can be accessed from the following website:  http://www.coagreformcouncil.gov.au/re ports/docs/seamless_economy_2008-09.pdf 
 
The COAG response to these reports can be accessed from the following websites:  
 http://www.coag.gov.au/coag_meeting_outcom es/2011-02-13/docs/response_crc_sne_ 
performance_09-10.pdf  
http://www.coag.gov.au/coag_meeting_outco mes/2010-04-19/docs/Crc_performance_2008-
09_nat_partner_agree_Implement_plan_milestones.pdf 
 
Part III. Trade Policies and Practices by Measu re: (4) Measures Affecting Production and 
Trade; (iii) Competition and Consumer Policy (a ) Competition Policy: paragraph 106, page 73:  
 
Question
 
 According to the Secretariat Report, “To deal with 'creeping acquisitions', by January 2010, the 
authorities intended to amend the TPA  in order to ensure ACCC's pow er to reject acquisitions that 
would substantially lessen competition in any local, regional or national market.” 
 
Could Australia kindly provide an update on the in tended amendment to th e Trade Practices Act 1974 
(TPA) to empower the Australian Competition and Consumer Commission (ACCC) to deal with allegations of creeping acquisitions? 
 WT/TPR/M/244/Add.1 
Page 136  
 
 Answer  
 
Proposed amendments to the Competition and Co nsumer Act 2010 (CCA) relating to creeping 
acquisitions remained before Parliament at the time of its prorogation for the 2010 election, and 
therefore lapsed. 
 
Further detail on the amendments contained with the lapsed Bill can be found at the Australian 
Parliament’s website (www.aph.gov.au). 
 
Part III. Trade Policies and Practices by Measu re: (4) Measures Affecting Production and 
Trade; (iii) Competition and Consumer Policy (a) Competition Policy: paragraph 107, page 73: 
 Question
 
 According to the Secretariat Report,  "In addition to the ACCC, which is responsible for investigating 
allegations of cartel conduct and arranging civ il proceedings, now the Commonwealth Director of 
Public prosecutions (DPP), the general centra lized prosecutions agency, has responsibility for 
prosecutions of all indictable federal offences in Australia. The cartel will be prosecuted on civil or 
criminal grounds depending on the facts of each case."   This dual-track (criminal-civil) regime is similar to the approach in Canada.  As a result of the 2009 
amendments to Canada’s Competition Act, “hard core” cartels are criminal offences, investigated by 
the Competition Bureau but prosecuted by the Pub lic Prosecution Service of Canada. All other forms 
of potentially anti-competitive agreements between or among competitors are subject to civil review 
and assessed against a substantial lessening or prevention of competition standard by the 
Competition Tribunal.  
 
Could Australia kindly describe the process and the fa ctors that are considered in order to determine 
whether a cartel will be prosecuted on civil or criminal grounds? 
 
Answer
 
 The ACCC, as the independent statutory authority, is primarily responsible for administering the 
Competition and Consumer Act 2010 (CCA).  Th e ACCC has published guidance around its approach 
to cartel investigations under the CCA (a vailable at http://www.accc.gov.au/content/ 
index.phtml/itemId/891982).  As noted by the ACCC,  this guidance should be read in conjunction 
with other relevant publications, including its im munity policy, and Memorandum of Understanding 
with the Commonwealth Director of Public Prosecutions. 
 
Part IV. Trade Policies by Sector: (2) Agricultu re, Livestock, Forestry and Fisheries; (ii) Main 
Developments: paragraph 10, page 86:  
 
Question
 
 
The Secretariat Report notes a major policy development in the implementation of the "Caring for our 
Country" initiative.   Could Australia elaborate on the types of programm es or measures implemented under this initiative? 
 
Answer
 
 
The Australian Government utilises national environm ental law to protect environmental matters of 
national significance. National frameworks guide prot ection and sustainable use of natural resources  WT/TPR/M/244/Add.1 
 Page 137 
 
 
  through a number of policy directives, such as Australia's Biodiversity Strategy 2010-2030 and 
Australia's Native Vegetation Framework. Through the Caring for our Country initiative, assistance is 
available to protect biodiversity and national icons through on-ground works and stewardship 
payments; and to build the capacity of farmers to  adopt sustainable agricultural practices through 
supporting extension activities, information dissemi nation, and actions to demonstrate and pilot 
innovative practices on-ground. 
 
Part IV. Trade Policies by Sector: (2) Agricultu re, Livestock, Forestry and Fisheries; (ii) Main 
Developments: paragraph 11, page 87:  
 
Question  
 Regarding drought policy, the Secretariat Report refers to  pilot reform measures being undertaken in 
parts of Western Australia which are designed to move from a crisis manage ment approach to a risk 
management approach.  
 
Could Australia provide more details  on these risk management measures? 
 
Answer
 
 
In response to the national review of drought policy, the Commonwealth and Western Australian 
Governments are conducting a $AUD22.9 million pilot of  drought reform measures in part of Western 
Australia. The Commonwealth is contributing $AUD17.9 million.   The pilot runs from 1 July 2010 to 30 June 2011 an d is testing measures de signed to help farmers 
better manage risks and prepare for future challenges. It is also tr ialling more effective social support 
services for farming families and rural communities.  
 The consistent message from the nationa l review of drought policy is that:  
• drought conditions in Australia are likely to occur more often and be more severe in key 
agricultural production areas; and  
• there are opportunities to better help farmers a nd farm families plan and prepare for drought. 
 
The range of measures in the pilot provide assistance through: 
• planning and training activities. The training cove rs the economic aspects of a strategic plan 
for the farm business such as risk management a nd financial planning, social aspects such as 
personal and business goals and environmental aspects such as managing the impact of 
changing climate on production. 
• grants to farm businesses to implement eligible  priority activities identified in the strategic 
plan that help farm businesses prepare for the impacts of drought, reduced water availability 
and a changing climate. 
• projects that will help build the res ilience for farms and rural communities 
• access to a stronger social support network 
• income support for farmers facing financial hard ship, consistent with Australia’s social 
security programs. 
• grants to farmers who are leaving farming, including for retraining and relocation expenses 
• bringing farmers and former farmers together to discuss the opportunities outside of farming. 
 The review of the pilot of drought reform m easures recently commenced. The review will assess 
whether the measures are achieving their objec tives and will make recommendations to the 
government on the new approach, including the effectiveness of measures. 
 WT/TPR/M/244/Add.1 
Page 138  
 
 The government is keen to ensure that all interest ed groups and individuals have the opportunity to 
express their views about the design and delivery of th e pilot. In this regard, the Drought Pilot Review 
Panel has released an issues paper and called for pub lic submissions by 20 April 2011. The panel will 
report to government by 30 September 2011 to info rm further government consideration of drought 
reform. 
 
Part IV. Trade Policies by Sector: (2) Agricult ure, Livestock, Forestry and Fisheries; (iv) 
Forestry: paragraph 24, page 92: 
 
Question  
 
The Secretariat reports that, "Legislation was befo re the Parliament in November 2010 making it an 
offence to import any products of  illegally harvested timber, as well as a code of conduct requiring 
suppliers who first place timber into the Australi an market to carry out proper tests to ensure wood 
entering the country is legal." 
 
1. Could Australia please elaborate on what is meant  by “proper tests” that will form part of its 
code of conduct?  
 
2. Could Australia please elaborate on the measures  being proposed under this legislation on 
illegal logging?  
 
The Secretariat reports that, "These measures will be  supported by the use of a trade description to 
give consumers confidence that they are purchasing legal wood."  
3. Could Australia please elaborate on what the trade description will include and how it will 
give consumers confidence that they are purchasing legal wood? 
 Answers to 1,2,3
 
 
The Minister for Agriculture, Fisheries and Forestry, referred the draft Illegal Logging Prohibition 
Bill 2011  to the Senate Committee on Rural Affairs and Tr ansport for inquiry, with the intention of 
introducing the Bill to parliament later this  year. Refer to the Committee's website:  
http://www.aph.gov.au/senate/committee/ rat_ctte/logging_bill_2011/index.htm  
 The Bill establishes a high level legislative framework with the detail to be es tablished in regulations, 
in consultation with industry a nd key stakeholders. These regulati ons will include details of the 
aforementioned "proper tests". It complements th e approaches for combating illegal logging initiated 
by the United States of Ameri ca and the European Union.6b 
 The Illegal Logging Prohibition Bill 2011 will:   
• Prohibit the importation of regulated timber products containing illegally logged timber; 
• Require importers of regulated timber products and processors of raw logs to be approved by 
a timber industry certifier or the Minister;  
• Require importers of regulated timber products and processors of raw logs to meet legal 
logging requirements, which set out requirements to be prescribed by regulations to: o ensure that imported timber products do not contain illegally logged timber; 
o ensure that illegally logged timber is not processed; 
o ensure that timber products are accurately d escribed. The details to be included in the 
description of regulated timber products ar e to be established in the subordinate 
legislation.  WT/TPR/M/244/Add.1 
 Page 139 
 
 
  • Provide wide ranging powers to enable authorised officers to monitor and investigate 
compliance with the enforcement provisions of the bill. 
  
HONG KONG, CHINA
 
 
IV(5)(ii)  Services  (WT/TPR/S/244: p. 107, para. 61) 
 
We note that in 2008-09, the services sector recei ved around 45% of estimated budgetary assistance, 
mainly through tax expenditures.  It represente d a significant increase as compared with 2007-08 
mainly due to the introduction of va rious small business tax concessions.   
 
Question
 
 
We would like to know more details about such assist ance, especially whether it is also available to 
foreign owned companies registered in Australia, and whether there are statisti cs to such an effect. 
 Answer
 
 
These measures are available to domestic and foreign firms alike.  In terms of eligibility for the small business ta x concessions, broadly, an entity can satisfy the 
$2 million aggregated turnover if the total annual turnover for the entity, its affiliates and entities 
connected with it is not more than $2 million.  A small business entity is able to utilise the small 
business tax concessions provided it also satisfi es any additional criteria that apply to each 
concession.  The increase in the number of tax expenditures main ly reflects the reporting of the goods and services 
tax concessions (which were not reported prior to the 2008 Tax Expenditure Statement) and increases 
in the number of tax expenditures reported, partic ularly for business.  The main business income 
related tax incentives include the:  
• short term small business and general business tax break (which was available for purchases 
made between 13 December 2008 and 31 December 2009); 
• proposed resource and development (R&D) ta x incentive (intended to replace 125% R&D 
Tax Concession, the Tax Offset, the 175% Premium, and the International Premium); 
• accelerated and simplified depreciation for small business (as from 2007);  and 
• small business CGT concession measures (the small business 15-year exemption, the small 
business active asset 50% reduction, the small business retirement exemption, and the small 
business roll-over). 
 
IV(5)(v) 
 Banking 
 
(WT/TPR/S/244: p. 111, para. 69) 
 
It is noted that under the Financial Sector (Share holdings) Act 1998, foreign investment in financial-
sector companies is subject to a 15% shareholding limit, although the Treasurer may approve a higher WT/TPR/M/244/Add.1 
Page 140  
 
 percentage on "national interest" grounds.  Accordi ng to Australia's answer to our question in 2007 
TPR, Australian investors are subject to the same requirement.    
Question
 
 
Does it mean that the 15% shareholding limit appli es for only individual investors, irrespective of 
whether they are Australian or foreign, rather than  foreign investors collectively or as a category?  
What about the establishment of new companies in  the financial sector?  Noting that such a 
requirement is not inscribed in Australia’s exis ting GATS commitments or revised offer, does 
Australia have plan to inscribe this requirement in its  schedule?  Out of the 60 proposals approved in 
the finance and insurance sector in year 2008/09,  and the 39 proposals approved in 2007/08, how 
many are over the 15% shareholding limit and what are the considerations in relation to “national 
interest” based on which the Treasurer gave approval?  Answer
 
 
Under the Financial Sector (Shareholdings) Act 1998 (the FSSA) the Treasurer’s approval is required 
for a person  to hold a stake of more than 15% in a financ ial sector company.  The stake that a person 
holds in a company is calculated by summing the pe rson’s voting power with the voting power of the 
person’s associates.  The requirement applies to new as well as existing financial sector companies.  
The Treasurer's approval under the FSSA is subject to  a national interest test.  The Treasurer reviews 
applications under the FSSA against the national in terest on a case-by-case basis taking into account 
all relevant considerations.  The considerations would ultimately depend on the circumstances of the 
application but may include factors such as competition, prudential requirements, financial system stability and economic efficiency. 
 
The relevant provisions of the FSSA are prudential and non-discriminatory.  They apply equally to 
Australian and foreign investors and are consistent  with Australia's international obligations (see 
Mode 3 horizontal commitments in Australia’s GATS schedule). 
 
I(3)(i) 
 
(WT/TPR/G/244: p. 9, para.32) 
 
According to the Government Report, proposals by foreign investors to invest in Australian 
businesses now need to be notified on ly when they involved acquisitions of 15% or more in a business 
worth $A 231 million or more.   
 
Question
 
 
We would like to know if this notification requirem ent is applicable to all services sectors, including 
acquisition of banks. 
 
Answer  
 
Australia’s foreign investment framework applies to  all services sectors in the same way.  However, 
separate legislation may include other requirements.  For example, foreign investment in the banking 
sector must be consistent with the Banking Act 1959 and the Financial Sector (Shareholdings) Act 
1998 and Australia's banking policy, including prudential requirements.  The Financial Sector (Shareholdings) Act 1998 app lies to foreign and domestic investors and caps 
investment without prior approval from the Treasurer in financial sector companies at 15%.  Investors  WT/TPR/M/244/Add.1 
 Page 141 
 
 
  wishing to acquire a stake of more than 15% w ill need approval from the Treasurer.  The grant of 
approval is subject to the Financial Sector (S hareholdings) Act 1998 and Australian Government 
policy.  In addition, foreign businesses investing in Austra lia for the purpose of supplying a service may need 
to notify the Treasurer where their investment pr oposal includes an acquisition of interests in 
Australian urban land.  This includes any investme nt in vacant land for commercial development, or 
investment in developed commercial real estate valu ed at $50 million or more (or valued at $5 million 
or more where it is heritage listed). 
 
SUMMARY (1)  
Media Sector 
 
(WT/TPR/S/244: p. vii, para. 4) 
 
Question
 
 
What is the impact on the economy with the removal of foreign ownership restrictions in the media 
sector in the past few years?  Does the Government  have any plans to review the foreign ownership 
restrictions in other sectors? 
 
Answer  
 
Australia removed the equity and directorship lim its on foreign investment in media companies in 
April 2006 primarily through amending the Broad casting Services Act 1992.  However, foreign 
investments of 5% or more in the media sector rema in subject to prior notif ication and approval under 
Australia’s foreign investment framework.  The Department of Broadband, Communications a nd the Digital Economy has no data on the impacts 
of the removal of foreign owne rship restrictions on the media sector in 2006. However, the 
department is aware that since these cha nges to the Broadcasting Services Act 1992 (BSA) 
commenced, the level of foreign ownership in the sector has increased.  
 The BSA does not place any foreign ownership restrictions on commercial radio broadcasting 
licences. A number of these licences have had, and c ontinue to have, a reasonably high proportion of 
foreign ownership.  
 
Australia continues to review the appropriateness of our foreign investment rules to ensure that they 
maintain the right balance between protecting Austra lia’s national interest and ensuring Australia is 
seen as a welcoming destination for foreign capital.  More broadly though, we  do not consider that 
Australia's foreign investment rules restrict invest ment into Australia.  While we maintain a broad 
foreign investment screening framework, we impose few actual foreign investment restrictions, and 
Australia has not rejected a foreign investment proposal in any business sector since 2001 — when 
Australia rejected the Shell Group's proposed ac quisition of Woodside Petroleum Ltd on national 
interest grounds. 
 WT/TPR/M/244/Add.1 
Page 142  
 
 IV(5)(viii)  
Tourism 
 
(WT/TPR/S/244: p. 123, para. 104) 
 
We note that the TQUAL Grants Program provided s upport to innovative tourism projects, national or 
sectoral tourism initiatives, and integrat ed tourism development projects.   
 
Question
 
 
Would Australia enlighten us on whether these in centives are provided to both local and foreign 
enterprises on a non-discriminatory basis?  If forei gn enterprises are eligible, of the 70 projects 
approved for funding, how many proj ects involved foreign enterprises? 
 
Answer  
 
TQUAL Grants is a competitive merit based gran ts program that aims to increase Australia’s 
innovative tourism capacity, it is not an incentive. Applicants are required to submit an application 
addressing set criteria. Applications are then asses sed on how well they address the criteria including 
in comparison to other applicants. Foreign enterpri ses were eligible to appl y providing they met the 
eligibility criteria and were applying for a project  located in Australia that would benefit the 
Australian tourism industry.  The Australian Government does not keep data on whether grantees are local or foreign.  
 
 
EUROPEAN UNION
 
 I. ECONOMIC ENVIRONMENT (2) R
ECENT ECONOMIC DEVELOPMENTS  
(i) Growth, incomes, and employment 
 WTO Secretariat's report, page 6, para. 4 
 
The WTO Secretariat’s report states that "/…/real GDP growth is projected at 3-3.5% in 2010 and 
2011, with private investment in mining and commodity exports taking over from public demand as 
the main driver of growth./…/"   These estimates do not consider the effects of the recent Queensland and Victoria floods, as well the Cyclone Yasi's or the Western Australian bushfires.   Question 1
 
 Could Australia provide its assessment on how the na tural disasters will affect the economic growth 
in the short to medium term?   
Answer
 
 
The Australian Treasury estimates that  the combined impact of the floods and cyclone Yasi will be to 
reduce real GDP growth by around ½ a percentage point in 2010-11, with the resumption of economic 
activity and reconstruction expected to add about ¼ of a percentage point to real GDP growth in 
2011-12.  WT/TPR/M/244/Add.1 
 Page 143 
 
 
   
Question 2  
 
Given the Australian reliance on mining and other commodities exports (which´ production is heavily 
concentrated in the damaged a reas), what are Australia’s estim ates on the effect on the current 
account deficit and the exchange rate? 
 Answer
 
 
The floods and cyclone affected coal and some agricultural production, with iron ore extraction unaffected.  
 In volume terms the natural disasters are expected  to reduce coal and agricultural production by 
around $8 billion at 2008-09 prices, the majority of which will affect exports. However a rise in the price of metallurgical coal, some of which can be attributed to the disasters themselves, will reduce 
the effect in nominal terms on the trade balance.  
 There has been no noticeable impact on the exchange rate.  
 
Question 3
 
 
According to the WTO Secretariat’s report, author ities forecast solid growth in employment over the 
years ahead, the economy being expected to return to full capacity in 2011; prior to the crisis the 
economy was at full capacity and it was har d to hire qualified and skilled workers. 
 Is Australia considering an ease in its approach to  skilled and semi-skilled immigration, especially in 
relation to the requests by foreign compani es involved in procurement projects? 
 Answer
 
 
• The Australian Government regularly reviews its migration programs to ensure they are 
responsive to changing economic and labour mark et conditions and contribute to productivity; 
• This review process has resulted in the progr essive introduction – since April 2009 – of a 
package of measures to incr ease the transparency of the employer-sponsored temporary 
business (subclass 457) program, while retaining sufficient flexibility to meet the genuine skill needs of industry; 
 
(3) M
AIN MACROECONOMIC POLICY DEVELOPMENTS  
(ii) Fiscal policy  
 Labour market reform  
 WTO Secretariat' s report, page 11, para. 16  
 
Question 4
 
 
Australia has ratified 7 of the 8 core ILO Conventions4 and 3 priority Conventions.  
 
Could Australia indicate its intentions in relati on to the ratification of the following core and priority 
ILO Conventions which it has not  yet ratified (138 and 129)? 
 
                                                      
4 8 ILO core conventions are Conventions no-s 29, 87, 98, 100, 109, 111, 138 and 142 WT/TPR/M/244/Add.1 
Page 144  
 
 Answer  
 
The Australian Government, in consultation with state and territory governments, periodically 
considers a number of ILO Conventions for ratif ication. The Minister for Workplace Relations, 
Senator the Hon Chris Evans, has r ecently agreed to consider four ILO Conventions for ratification in 
the period 2011-12, including the Minimum Ag e Convention, 1973 (No. 138) and the Labour 
Inspection (Agriculture) Convention,  1969 (No. 129). These Conventi ons will be considered by the 
Commonwealth and state and territory governments fo r ratification in 2011. Whether Australia ratifies 
these two Conventions will be determined by a detailed assessment of whether each jurisdiction 
complies with the requirements of the Conventions. This reflects Australia's treaty-making policy, 
which provides that ILO Conventions will not be ratified unless and until law and practice at 
Commonwealth, state and territory levels is compliant with the Convention.  The Australian Government is aware that the ILO s eeks universal ratification of the fundamental and 
governance Conventions by 2015. 
 
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(6) T
RADE AGREEMENTS AND ARRANGEMENTS  
(ii) Preferential and regional trade agreements  
Question 5
 
 Could Australia elaborate on the extent to which,  and how, social and labour issues are addressed 
within each of the preferential ag reements referred to in the WTO Secretariat’s and the Government 
report? 
 
Answer
 
 
The Australian Government’s approach to social  and labour issues in preferential trade agreement 
negotiations has been to explore their inclusion on a "case-by-case basis".  Chapters on labour (and on 
environment) are included in Australia-US FTA . Australia-US FTA provi sions on labour affirm 
existing international obligations, establish cooperative mechanisms a nd recognise that such measures 
should not be used for protectionist purposes. 
 
(8) F OREIGN INVESTMENT REGIME  
 
Question 6  
 The WTO Secretariat’s report outlines Au stralia's foreign investment regime.  
 Could Australia confirm that econom ic activity undertaken in relation to a new or existing investment 
respects Australia's national labour law, the fundamental rights at work as embodied by the ILO's 
2008 Declaration on Social Justice for a Fair Globalisation and the 8 core ILO Conventions?  How does Australia ensure that these are in fact respected? 
 
Answer
 
 The Australian Government can confirm that economic  activity (where this refers to employment) 
undertaken in a new or existing investment resp ects Australian labour law and the ILO fundamental 
principles and rights at work.   The Australian Government is firmly committed to fulfilling its obligations under ILO Conventions it 
has ratified, including the core ILO Conventions. Australia’s treaty-making policy requires that  WT/TPR/M/244/Add.1 
 Page 145 
 
 
  treaties, such as ILO Conventions can only be ratif ied when full compliance has been achieved in all 
jurisdictions. This means that the provisions of ILO fundamental Conventions must be included in 
Commonwealth, state and territory law (and complied with) in order for Australia to ratify them.  
 Once an ILO Convention has been ratified, the Govern ment is then obliged to periodically report to 
the ILO Committee of Experts on the Application of Conventions and Recommendation (CEACR) on 
how it gives effect to Conventions it has ratified (every two years for core Conventions and every 
five years for all other Conventions). The CEACR is responsible for assessing a country’s compliance 
with these Conventions and reporting their obser vations annually to th e International Labour 
Conference. 
 
In Australia ILO Conventions are given effect through a range of Commonwealth and state and 
territory laws and regulations and are accompanied by strong enforcement me chanisms. With respect 
to economic activity, the Fair Work Act 2009 (FW Ac t) is the primary means by which Australia 
ensures respect for the fundamental pr inciples relating to workplace relations.
5 In particular, while 
provisions of the FW Act give effect to Australia’s  obligations under a number of these Conventions 
(and which was recently confirmed by the CEACR), the FW Act has as one of its objects:  
providing workplace relations laws that a re fair to working Australians, are flexible 
for businesses, promote productivity and econom ic growth for Australia’s future 
economic prosperity and take into acc ount Australia’s international labour 
obligations (section 3(a)).  
 
Enforcement of the fundamental principles relating to employment is primarily the responsibility of 
the Fair Work Ombudsman, which is an independent  statutory office created by the FW Act. Its 
functions include investigating workplace complain ts and monitoring and enforcing compliance with 
Australia's workplace laws.  
 The FW Act also created Fair Work Australia wh ich is a national workplace relations tribunal with 
power to carry out a range of functions including:   
• providing a safety net of minimum conditions, including minimum wages;  
• facilitating good faith bargaining and th e making of enterprise agreements;  
• regulating the taking of industrial action;  
• resolving workplace disputes through conciliation, mediation and in some cases arbitration; 
and  
• functions in connection with workplace determinations, equal remuneration, transfer of 
business, general workplace protections, right of entry and stand down.   
 Furthermore, the FW Act allows entitlements under a common law contract of employment that relate 
to subject matters described in the National Em ployment Standards (e.g. leave and notice of 
termination and redundancy) or m odern awards (e.g. wages, penalty rates and allowances) to be 
enforced by the Federal Court and the Federal Magist rates Court. State and Territory courts can also 
hear claims about these matters.  Together, the Fair Work Ombudsman, Fair Work Australia and the federa l courts implement the 
fundamental principles and rights at work by enforci ng and administering the applicable legislation.  
 
                                                     
 
5 The Fair Work Act 2009 regulat es Commonwealth and territory empl oyees as well as greater than 
96% of private sector em ployees across Australia. WT/TPR/M/244/Add.1 
Page 146  
 
 In addition, the Fair Work Principles support the cr eation of quality jobs and decent work by ensuring 
that Australian Government procurement decisions are consistent with the FW Act and its aims, 
including promoting fair, cooperative and productiv e workplaces. The Fair Work Principles provide 
guidance for all industries, however given the historical problems in the cleaning services and the textile, clothing and footwear industries, special  focus has been given to those sectors. The Fair Work 
Principles only apply to Covered Procurement activities as defined in paragraph 8.4 of the 
Commonwealth Procurement Guidelines.  
 Since 1 January 2010, suppliers tendering for Australian Government work  have been required to 
provide  information on how they comply with the FW  Act and materially re levant laws; provide 
undertakings that they have not been subject to an y adverse judgments for a breach of workplace laws 
during the past two years; provide informati on about how they promote fair, cooperative and 
productive workplace relations; and provide a mini mum genuine dispute resolution mechanism as 
outlined in the Principles User Guide.   
Textile, Clothing and Footwear tenderers are also requ ired to comply with any relevant legislation and 
codes of practice relating to the performance of wo rk in the industry, and be accredited with (or 
seeking accreditation with) the Homeworkers' Code of Practice.
6 
 It is noted that the Fair Work Principles  do not require overseas-based suppliers to comply with 
Australian laws that would otherwise not apply to them. They do however require Commonwealth 
Entities to contractually require that such overseas suppliers comply with all applicable workplace 
relations, occupational health and safety, and worker s' compensation laws in the jurisdiction in which 
they are based. Additionally, the cleaning requireme nts outlined in the Prin ciples User Guide only 
apply to cleaning services contractors who do not have a commercial presence in Australia insofar as they subcontract or employ cleaning staff within Australia.  Question 7
 
 
The WTO Secretariat’s report descri bes the main changes to Austra lia's foreign investment regime. 
In announcing changes to Australia's foreign invest ment screening framework in August 2009, the 
Treasurer noted that some screening requirem ents on foreign investors impose unnecessary 
compliance costs and can act as a major disincentive.   While acknowledging that the four lowest 
screening thresholds applicable to private foreign in vestors were replaced with the highest of these – 
a single threshold of 15% or more in a business worth $A219 million (since indexed to $A231 million) or more, a higher threshold of $A1,005 million still applies to United States investment in non-
sensitive sectors and is to be extended to Ne w Zealand investment under an agreement signed on 
16 February 2011. 
 Could Australia provide information on why does Australia not extend the higher foreign investment 
screening threshold currently applicable to the United States (and soon to be afforded to 
New Zealand) to all WTO Members, when the T reasurer has previously acknowledged that screening 
requirements can impose unnecessary compliance costs and act as a major disincentive for foreign 
investors?
7 
 
                                                      
6 http://www.ethicalclothingaustralia.org.au/home/home 
7 http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases/2009/089.htm&pageID=003& 
min=wms&Year=&DocType=  WT/TPR/M/244/Add.1 
 Page 147 
 
 
  Answer  
 
Australia welcomes foreign inv estment because of the benefits  that it provides our economy.  
However, like many other countries, we review fo reign investment proposals to ensure they are 
consistent with the national interest. 
 
In general, proposed foreign acquisitions of Australian businesses are only subject to foreign 
investment review when the value of the target  business or corporation exceeds a monetary screening 
threshold.  The current screening thresholds ma intain the right balance between protecting our 
national interest and ensuring that we remain an  attractive destination for foreign capital by not 
imposing an unnecessary burden on foreign investors.  Nevertheless, we continue to monitor the 
appropriateness of these screening thresholds.  More broadly though, Australia does not consider th at its foreign investment rules restrict inward 
investment.  While we maintain a broad forei gn investment screening framework, we impose few 
actual foreign investment restrictions.  Australia h as not rejected a foreign investment proposal in any 
business sector since 2001 — when Australia rej ected the Shell Group’s proposed acquisition of 
Woodside Petroleum on national interest grounds.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) O
VERVIEW  
 
Question 8  
 
The WTO Secretariat's report states that "The tariff  remains one of Australia's main trade policy 
instruments, albeit a minor source of tax revenue./…/"  
Does Australia share this statement? Could Austra lia elaborate further on tariffs as trade policy 
instrument?  Answer
 
 Australia's unilateral tariff reforms have been a central element of trade policy in recent decades, 
driving productivity and competitiven ess across the economy.  Australia's program of legislated tariff 
reductions will bring all applied ta riffs to no greater than 5% by 2015 with the exception of 13 tariff 
lines subject to specific duties.  This  reform includes legislated reductions to historical tariff peaks in 
passenger motor vehicle and textiles sectors.  Aust ralia would welcome sim ilar unilateral reforms 
from its key trading partners to reduce tariff peaks to such low levels.   
 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(ii) Tariffs 
(b) Applied MFN tariff 
 
Structure  Question 9
 
 
The ad valorem MFN applied tariff rate for the Pass enger Motor Vehicles is 5% (bound at 23%). The 
total applied rate, including the Ad Valorem e quivalent of non-ad valorem rate is 41.7%. 
 Could Australia provide the compos ition of the non-ad valorem rate? 
 WT/TPR/M/244/Add.1 
Page 148  
 
 Answer  
 
The Australian tariff provides a $12,000 per unit non-ad valorem duty on some imported used  
passenger cars. We understand this duty has not been collected to date. As noted in footnote 11 of 
Chapter III of the report, Item 59 of Schedule 4 of the Customs Tariff allows for the waiving of the 
$A 12,000 duty component on second-hand cars, provided the Department of Infrastructure, Transport 
and Regional Development has issued a Vehicle Import Approval (VIA).   
 
Question 10  
 
Does this non-ad valorem component tax apply in th e same manner for all different types of cars?  
 
Answer  
 
Several categories of used car imports are exempt from the $12,000 duty: 
• enthusiast vehicles inspected and imported by  a Registered Automotive Workshop where the 
make and model of the vehicle is included in  the Register of Specialist and Enthusiast 
Vehicles Scheme (SEVS) 
• vehicles which are manufactured before 1989 
• an individual vehicle imported by an Australian citizen or Australian permanent resident who 
has owned and used the vehicle overseas 
• vehicles used for evaluation and research or fo r tests to establish whether vehicles of a 
particular type comply with national standards 
• vehicles to be used in motor racing or in providing support to a vehicle used in motor racing 
and which has been built, modified or adapte d for that purpose as specified in the Motor 
Vehicles Standards Act and/or Regulations. 
 
Question 11  
 
Are there different levels of taxation depending on the pri ce of the vehicle? If that is the case, what is 
the reason for that? How is an assessment made on its economic and trade effects? 
 
Answer  
 
The $12,000 per unit non- ad valorem  duty on imported used passenge r cars does not vary depending 
on the price of the vehicle.  (c) Bound tariff  Questions 12 and 13
 
 
The WTO Secretariat’s report states that "/…/Aust ralia's bound rates currently exceed applied MFN 
rates by nearly seven percentage points (Chart III.3);  maximum gaps of up to 55 percentage points 
affect clothing items.  Differences between bound and applied rates may provide scope to raise 
applied tariffs, especially in sens itive sectors, although this has not  been the case during the period 
under review."   
What is the reason for maintaining a si gnificant gap between bound and applied tariffs? 
 Is Australia considering binding its tariffs at the a pplied level at some stage, in line with the practice 
of the rest of developed countries?    WT/TPR/M/244/Add.1 
 Page 149 
 
 
  Answer  
 
The gap between Australia’s average bound MFN tari ff rates and average applied MFN rates reflects 
the significant unilateral tariff reductions which Aust ralia has undertaken in recent decades.  Far from 
providing an environment of unpredictability and uncerta inty for trade operators, Australia has in fact 
provided an extended period of certainty for trader s by enshrining a series of scheduled applied tariff 
reductions across automotive and textile, clothing and footwear products in legislation.  In contrast, 
some of Australia’s major trading partners – partic ularly in relation to agricultural imports – have 
lowered and raised rates depending on changes in market prices.  
Australia’s last scheduled tariff reduction occu rred on 1 January 2010, and the next scheduled 
reduction will occur on 1 January 2015.  As of this  date, Australia will apply no tariffs at an ad 
valorem value above 5% with the exception of 13 ta riff lines subject to specific duties.  Australia has 
supported an outcome in the Doha Round for indus trial goods based on a Swiss formula, which will 
significantly reduce bound rates and address th e gap between bound and applied rates. 
 Question 14
 
 
The application of the agreed tariff reduction form ula for NAMA products to the current tariff 
structure prevailing in Australia would lead to no tariff cut, due to the considerable gap between 
bound and applied tariffs.  
 
How does Australia assess this outcome in the event of a successful conclusion of the Doha Round? 
 Answer
 
 
Australia notes that the WTO Secretariat’s simulatio n (2007) of the outcomes of a Swiss 8 formula 
would result in an average reduction in dutiable applied rates of over 20%.  The gap that exists 
between Australia’s bound and applied rates refl ects (as stated above) significant unilateral MFN 
tariff reductions which Australia has undertaken since the adoption of Uruguay Round bindings.  
Since the start of the Doha Round, Australia has reduced applied tariffs on passenger motor vehicles 
from 15% to 5% and on some textiles products from 25%  to 10%, with a further reduction to 5% in 
2015.  
 
(d) Tariff-rate quotas  
 
Question 15  
 
As noted in the WTO Secretariat's report, the Tar iff-rate quotas (TRQ) for most types of cheese and 
curd cheeses are effectively full, and new importe rs only able to access quota by transfer from an 
existing quota holder.  Given the Minister for Trade, Craig Emerson's rep eated comments about the benefit of unilateral 
liberalisation, could Australia in form whether it is considering significantly reducing the out-of-quota 
rates for cheese imports?  Answer
 
 Australia currently has no plans to unilaterally re duce the out-of-quota tariff rates for cheese imports. 
As part of the Doha Round, the out-of-quota ta riff rates would be reduced by 50% and 57%.  
 WT/TPR/M/244/Add.1 
Page 150  
 
 (e) Tariff preferences 
 Question 16
 
 
Australia and Canada grant each other preferential tariff rates on a limited range of products agreed 
under the Canada-Australia Trade Agreement (CANA TA), established in 1960 and amended in 1973. 
The number of tariff lines having a preferential treatment is 512 out of 6,008.  What are the main products and sectors wh ere Australia grants preferences to Canada? 
 
Answer
 
 
The nature of these preferences can be studied in detail in Australia’s most recent IDB submission for 
2010.  The preferences are spread across many diff erent chapters of the harmonised system.  With 
reductions in applied rates, the extent of remaining preferences has diminished. 
 (f) Other duty concession schemes  Duty concessions schemes  Question 17
 
 
According to the WTO Secretariat’s report, "The Enhanced Project By-Law Scheme (EPBS) provides 
duty-free entry for eligible goods (capital equipmen t and machinery) for projects in agriculture, food 
processing, food packaging, manufacturing, mining,  resource processing, gas supply, power supply, 
and water supply industries.  These goods must not be  produced in Australia, or  the imports need to 
be more advanced, more efficient or more productive t han those made in Australia.  Total expenditure 
on capital goods for eligible projects must be no less than $A 10 million.  In addition, an EPBS 
applicant must develop and implement an Australi an Industry Participation plan (AIP), which 
outlines how the applicant will provide "full", "fair", and "reasonable" opportunity for Australian industry to participate in the project./…/  
The strict requirements set up by the AIP plan put  foreign companies at a disadvantage; Does this 
"early identification" requirement effectively m ean that foreign suppliers would have access to 
relevant information at a later stage than their local competitors? How are the criteria of providing 
"full", "fair", and "reasonable" opportunities for Au stralian industry to participate in the project 
assessed? 
 
Answer
 
 
There is no requirement to give preferential treatment to Australian companies.    AIP Plans ask project proponents to give "full", "fair", and "reasonable" opportunity for Australian 
industry, especially small and medium enterprises, to compete for work. AIP Plans address and are 
assessed according to 5 criteria:  
1. Communication Strategy 
2. Opportunities through all tiers of supply and in all stages 
3. Opportunities to supply key components of functional units 
4. Opportunities for longer-term participation 
5. Procedures and resources 
  WT/TPR/M/244/Add.1 
 Page 151 
 
 
  Question 18  
 Has the Australian Government asse ssed the cost/benefit effects of the AIP plans in terms of the 
burden imposed on local procurement entities to favour Australian companies? 
 
Answer
 
 
The EPBS was independently reviewed in 2010. The re view found that there are a range of benefits 
and the scheme has had a favourable impact in br eaking down some preconceived notions of local 
industry capabilities. Furthermore, the review noted the fact that proponents continued to voluntarily 
use the scheme suggested benefits compared to alte rnative concession programs. As noted in response 
to question 17, there is no requirement to give preferential treatment to Australian companies.  
 
Question 19  
 
Could Australia indicate the number of applicat ions to the EPBS benefits that are approved and 
rejected per year? 
 
Answer  
 
In 2008-09, 44 applications for EPBS concessions were  approved, with 1 application rejected.  In 
2009-10, 26 applications for EPBS concessions were, w ith no applications rejected. Applications are 
assessed against a number of eligibility criteria. An  application may be rejected on any number of 
grounds, not necessarily related to an AIP Plan.   
(vii) standards and other technical requirements 
(a) Standards, testing, and certification 
 
National, international and aligned standards  Question 20
 
 
The WTO Secretariat’s report states that "Austr alia's policy remains th at standards should be 
compatible with relevant international or interna tionally accepted standards or  practices, with a view 
to minimizing impediments to trade./…/".    Australia is currently developing a national standar d for olive and pomice oils.  The draft standard 
released for public comment differed significantly fr om the relevant international standards. Some of 
these discrepancies could create serious problems for international trade while others could facilitate 
fraud.  How does the Australian Governme nt assess the need for a new standard in that field? 
 
Answer
 
 
The standard is a voluntary one being developed by a non-government  standardising body in response 
to a request from the Australian olive oil sector.  The industry has made an asse ssment of the need for 
a voluntary standard in this field.  The Australian Government is complying with its obligations under 
the TBT agreement to take such reasonable meas ures as are available to it to ensure that the 
non-government standardising bodies accept and co mply with the Code of Good Practice.  
 WT/TPR/M/244/Add.1 
Page 152  
 
 Question 21  
 Is there a significant net benefit for the country ar ising from the adoption of a new standard? Also, 
have there been considerations to make it a mandatory standard? 
 
Answer
 
 
There has been no consideration of this becoming a mandatory standard.  
 
Question 22  
 
Has the Australian Government a ssessed the effects on competiti on of this proposed voluntary 
standard? 
 
Answer  
 
As this is a voluntary standard, there is no require ment for the Government to assess the effect on 
competition.  
 
Question 23  
 
In line with its obligations under the TBT Agreemen t, will the Australian go vernment take steps to 
ensure that this standard, and its standards generally , are in line with the relevant international 
standards?    
 
Answer  
 
The Australian Government is complying with its obligations under the TBT Agreement in relation to 
the development of standards by central govern ment standardising bodies, local government and 
non-governmental standardising bodies.  
 
Question 24  
 
Is olive oil import replacement an objective of the Au stralian Government (as st ated in the Australian 
Olive Industry Research, Development & Extension Pl an 2010-2015)? If that is the case, is the new 
standard part of this strategy? 
 
Answer  
 
The plan notes this is an objective of the industry, not the Australian Government. 
 
(b) Sanitary and phytosanitary regulations  
 
Question 25  
 The independent analysis by Bosworth and Cutbush es timates that the ban on imports of apples from 
New Zealand is the equivalent of consumers paying growers $A2 billion over six years.    
Does the Australian government  agree with this analysis and if not, why?   
  WT/TPR/M/244/Add.1 
 Page 153 
 
 
  Question 26  
 
What would be the sector-wide transfer from consumers to producers if this analysis was applied 
across all Australian agricultural industries? 
 
Answers to 25 and 26  
 
The SPS Agreement clearly states the economic factors that can be taken into account during risk assessment. The use of cost/benefit analysis, as stipul ated in the report, does not comply, in our view, 
with the SPS Agreement. 
 
Australia maintains a strict sanitary and phytosanita ry regime which is propo rtionate to Australia’s 
appropriate level of protection.  Our approach to quarantine is designed to preserve Australia’s 
favourable pest and disease status and our uniqu e flora and fauna. The Australian Government 
maintains its commitment to a robust, science-based, framework to protect Australia’s unique 
environment and biosecurity status. 
 
Biosecurity  
 Question 27
 
 
The WTO Secretariat’s report informs that “Since 2009, Australia's biosecurity system has been 
undergoing institutional reform in line with the recommendations of a 2008 independent review./…/”. 
The implementation of the so-called Beale Review  of Quarantine and Biosecurity recommendations 
foresees a move towards a Biosecurity c ontinuum and risk-return approaches.  
 
As a result of this new orientation, does the Au stralian government foresee that more trade-friendly 
risk mitigation measures can be put in pla ce while still maintaining Australia’s extremely 
conservative appropriate level of protection (ALOP)?  
 
Answer  
 The Australian Government is improving its a risk-based operational framework across the 
biosecurity continuum.    Australia is progressively implementing risk-based in tervention strategies at the border to replace the 
previously mandated intervention targets following th e trials conducted at airports, mail centres, and 
seaports. Implementation will impact different importe d products in different ways. For some, nothing 
may change, while a small number may experience an  increased level of inspection. For most, and 
particularly for those which comply with quarantine requirements, it should result in less AQIS intervention and more efficient passage through  biosecurity controls without compromising 
Australia’s quarantine integrity.  
 
Question 28
 
 
If so, what processes does it envisage to be available to achieve this and over what timescale? 
 Answer
 
 
Improvements to current processes will be continuously implemented as they are developed, tested and found to enhance processing efficiency. 
 WT/TPR/M/244/Add.1 
Page 154  
 
 Question 29  
 
When the Beale Review was released , it was envisaged that new legislation to replace the Quarantine 
Act 1908 would be operational before July 2011.  With the exposure drafts for the new legislation still 
to be released it is clear that this  timetable will not be realised.   
 
Could Australia provide further details on what is the Australian government's current timetable for 
the new legislation to be operational?  Answer
 
 
Development of the new legislation is well underw ay following some drafting delays. An exposure 
draft of the new biosecurity legislation will be re leased for public comment prior to introduction and 
will be accompanied by a draft Regulation Impact Statement. The Biosecurity Bill will be introduced 
into Parliament following this exposure draft period prior to implementation.  A 12 month period will 
follow Royal Assent to allow systems and industry to adapt. The exact tim ing of these steps will 
depend on drafting progress and further updates will be  provided closer to the release of an exposure 
draft.  
Import Risk Analysis (IRAs) 
 
WTO Secretariat' s report, page 53, para. 55 
 Question 30
 
 
The WTO Secretariat’s report informs that Au stralia is conducting import risk analyses (IRAs).  
In announcing an IRA for fresh beef and beef product s (chilled or frozen) from countries other than 
New Zealand on 8 March 2010, the then Minister for Agriculture, Fisheri es and Forestry Tony Burke 
justified the decision on the grounds of 'significan t community concern', rather than any identified 
scientific risk.    Does the Australian government consider that co mmunity concerns, rather than science based 
concerns, are a bona fide rea son for initiating an IRA? 
 Answer
 
 
The Australian government determined there was community  concern related to ‘science based 
concerns’ or scientific uncertainty for animal dise ases of quarantine concern for the import of beef 
and beef products. The Australian community has an  ongoing concern based on scientific information 
that imported beef carries with it a risk that th e population may develop the human variant of BSE, 
variant CJD. To allay these sci ence based concerns in the comm unity, the Australian government 
commenced import risk analyses for the United St ates, Canada and Japan to assess the animal 
quarantine risks from the importation of beef and beef products intended for human consumption. 
 
The IRA is being conducted in accordance with Aust ralia’s obligations in the SPS Agreement and any 
measures resulting from the IRA will be based on science. 
 
Question 31  
 
In the process on initiating this IRA three very different announcements of policy were made: on 
24 February 2010 by Biosecurity Australia on 8 March 2010 by the Minister for Agriculture, 
Fisheries and Forestry and on 8 April 2010 again by Biosecurity Australia.  
  WT/TPR/M/244/Add.1 
 Page 155 
 
 
  Does the Australian government consider that th ree changes of policy in a period of six weeks 
represents best practice in conducting risk assessments?   
 Answer
 
 The Australian Government announced  its new policy for the import of beef and beef products, and 
associated announcements, according to a transparent process of making up-to-date information 
available to interested producers, cons umers and the international community. 
 
Question 32
 
 
The same paragraph also informs that "/…/The authorities indicated that the existing backlog may 
continue because of delays relating to the prior itization of processing of pas t market-access requests." 
 Could Australia provide information on: 1) the number of market access requests received annually; 
2) the number of risk assessments commenced; and 3) the number completed over each of the past 
five years? 
 
Answer
 
 
On average, Australia receives approximately 5 to 10 market access requests annually. Australia has 
8 Import Risk Analyses currently in progress. Aust ralia has completed 13 Import Risk Analyses over 
the last 5 years.  
Question 33
 
 
Could Australia provide information on the numb er of outstanding market access requests for which a 
risk assessment is yet to commence?    Answer
 
 
As of 14 January 2011 there are 210 market access re quests that have been prioritised by the Import 
Market Access Advisory Group and are currently on the priority lists.   
• Animal - 101 
• Plant - 109 
 Any market access requests received after 14 January  2011 will be considered at the next IMAAG 
meeting scheduled for May 2011.  Question 34
 
 
Could Australia provide information on what is th e average time for initiating a risk assessment from 
the time of receiving the in itial market access request? 
 
Answer  
 
The time taken for initiating a risk assessment is dependent on the assignment of a priority based on 
the criteria outlined in the answer to question 37.  However the oldest request may be a country’s 10th 
priority and may not receive a high priority until th eir other higher priorities have been finalised. In 
this case this could take a number of years.  WT/TPR/M/244/Add.1 
Page 156  
 
 Question 35  
 
Could Australia inform what is the average time to conclude an Import Risk Assessment?  
 
Answer  
 
The IRAs are completed using the legislated pr ocess outlined in the Import Risk Analysis Handbook 
2011. They follow legislated timeframes and are finalised in 24-30 months.    
Question 36
 
 
How many IRAs and other risk assessme nts are currently on the pipeline? 
 
Answer  
 There are a total of 210 market access prioritised by  the Import Market Access Advisory Group with a 
further 8 IRAs and 5 reviews of  existing policy being progressed. 
 
Question 37
 
 
Could Australia inform which criteria are used  to prioritize the requests in that field? 
 
Answer  
 
The Import Market Access Advisory Group assigns a priority to newly received import proposals.  In 
assigning the priority, the IMAAG considers the following: 
1. National interest considerations including: 
o alignment with Government prior ities and international obligations 
o new and/or re-emerging risks 
o domestic stakeholder/indus try demand for product 
 2. Exporting country(ies) considerations including: 
o exporting country’s priority relative to  that country’s other access requests 
o time elapsed since a valid import proposal was submitted 
 3. Practical considerations including: 
o requests or potential for other requests to import similar commodities or commodities 
with similar risks.  
o extent of available pertinent technical information  
 The Import Market Access Advisory Group forma lly advises the Chief Executive of BA of the 
priorities assigned to import proposals within 15 da ys of its deliberations.  This advice is also 
published on the department's website.  
 
The Chief Executive of BA determines the order in which analyses are conducted, taking account of 
the priority assigned by the Import Market Acces s Advisory Group and the available resources and 
expertise.  
 
(viii) Government procurement 
 According to the WTO Secretariat's report, Australia  remains one of five OECD members that is not a 
signatory to the Plurilateral WTO Agreement on Government Procurement (GPA). The report says  WT/TPR/M/244/Add.1 
 Page 157 
 
 
  that Australia considers the GPA to be largely inc onsistent with its approach of low regulation in the 
public sector.  38. Could Australia state what are the provisions  of the GPA that would interfere with its low-
regulation policy? 
 
Answer
 
 
The Australian Government (Central) maintains a non-discriminatory, transparent procurement 
framework with an emphasis on efficient, effective and ethical use of public resources.  A key 
concern of Australia regarding the existing GPA is  that it requires parties to run procurement 
processes in accordance with a range of prescriptive and inflexible rules. Examples include provisions 
on selective tendering, time limits, li mited tendering, negotiations and domestic review procedures, all 
of which contain a degree of over-prescription or infl exibility that would inhibit Australia’s practices 
without genuine benefit to procuring entities or suppl iers, either domestic or foreign. While Australia 
is not actively pursuing GPA accession, as an observer,  it has been closely following negotiations on 
the revised GPA since it was provisionally adopted more than four years ago.  
The paragraph continues"/…/Nevertheless, Aust ralia is bound by principles and rules on 
transparency and non-discrimination in this area in the context of its FTAs (see below and 
Chapter II); the authorities insist that these commitm ents are extended to all its trading partners. 
?...?"  
39. Could Australia elaborate on how and to whom this extension applies? 
 
Clause 5.2 of the Commonwealth Procur ement Guidelines (CPGs), December 2008 
(http://www.finance.gov.au/publications/fmg-series/pr ocurement-guidelines/index.html) state that:  
The Australian Government procurement policy framework is non-discriminatory. All potential 
suppliers should have the same opportunities to co mpete for government business and must, subject to 
these CPGs, be treated equitably based on their lega l, commercial, technical and financial abilities. 
Procurement methods must not discriminate against potential suppliers due to their degree of foreign 
affiliation or ownership, location or size.  The prope rty or services on offer must  be considered on the 
basis of their suitability for their intended pur pose and not on the basis of their origin.  
 
WTO Secretariat' s report, page 55  para. 62 
 
The WTO Secretariat’s report informs that "/../In 2007/08, domestically produced goods and services 
were estimated at 69% of the total amount spent;  when procurement by the Department of Defence is 
excluded, the domestically produced share of cont racts is 89% of the total value of contracts 
awarded.
8  The bulk of imports were fo r goods and services that are not made in Australia, such as 
photocopiers and specialist military equipment.  These amounts do not cover procurement spending 
by state and territory governments, which is  seemingly higher than Commonwealth government 
spending.9  Reportedly, in many instances government trading enterprises (GTEs) (sections (3)(iii) 
and (4)(iv)(b)) at central, state, and territory government level have dominated the provision of 
infrastructure works, instead of opening up the provision of infrastructure and related service to 
competition, including to efficient private market entities.10/…/ 
 
                                                      
8 Australian Government (2009b). 
9 In 2008/09, procurement by the Australian Capital Territory, the Northern Territory, Western 
Australia, South Australia, and Tasmania was $A 1.1 billion, $A 1.7 billion, $A 11.5 billion, $A 3.4 billion and $A 1 billion, respectively.   
10 Infrastructure Australia (2008). WT/TPR/M/244/Add.1 
Page 158  
 
 40. How does the Australian Government assess the balance between local and foreign share in 
public tenders, in terms of market openness and competition? 
 
Answer  
 The Australian Government considers competition to  be a vital element of a healthy economy.  
Australian supplier participation in the Australian Government procurement market was estimated to 
be high in 2007/2008.  The Australian Governme nt considers this a strong indication of the 
competitiveness of Australian suppliers and the pro ductivity benefit of an open, non-discriminatory 
procurement market.  Australian suppliers exposed  to competitive forces have proven innovative and 
capable.  
 
41. The fact that imported goods mostly co rrespond to products that are not produced in 
Australia would suggest that government procuremen t is led by the "Australian Made" objective, 
rather than value for money, efficiency and co mpetitiveness criteria. Would the Australian 
Government share this conclusion?  
Answer
 
 
No.  Objectives of the "Australian Made" bran ding and similar initiatives are related to the 
competitiveness of Australian products and services in  all markets, including foreign markets.  No 
element of the Australian Government procuremen t framework encourages preference for Australian 
goods, services or suppliers.  In fact, (as stated in clause 5.2 of the Commonwealth Procurement 
Guidelines, December 2008 (http ://www.finance.gov.au/publications/fmg-series/procurement-
guidelines/index.html)) the Australian Government  procurement framework expressly requires the 
equal treatment of all suppliers, regardless of origin.  The stat ement this portion of the Review refers 
to is a commendation of the competitiveness of Aust ralian suppliers, not a call to inappropriate trade 
restriction.  Lastly, in a healthy, geographically isolated economy such as Australia’s it is not unusual 
that the largest portion of the Government Procurement market would be supplied by globally competitive domestic suppliers. 
 
42. Are there any plans at the State and Commonwealth levels to further open up the 
infrastructure provision tenders to competition?  
Answer
 
 
Encouraging competition is a core principle of the Australian Government's procurement policy 
framework.  The policy includes no provisions to  limit competition in infrastructure projects..  
 
43. Do Australian procurement rules actually appl y to the procurement of highways, hospitals, 
airports, urban transport operators, railway operators, utilities in electricity and water? 
 
Answer  
 Yes. 
 
44. Are infrastructure projects evaluated on the basis of rigorous cost-benefit analyses (CBAs), 
as recommended by OECD and pledge d by Infrastructure Australia? 
 
Answer
 
 
The Australian Government does not entirely understa nd this question, for example it is unclear what 
is meant by the expression ‘pledged’ in this question.  Cost-Benefit Analysis is an integral element of  WT/TPR/M/244/Add.1 
 Page 159 
 
 
  the planning and monitoring of Public Private Partners hips (referred to in the context of the revised 
text of the World Trade Organisation Agreem ent on Government Procurement as BOT/PWC).  
 
45. Is it envisaged to impose limitations on cro ss-shareholdings between firms competing in 
infrastructure projects?  
 
Answer  
 
No limitation on cross-shareholdings between firms competing in infrastructure projects is imposed 
by the Australian Government (Central) in the cont ext of the general procurement policy framework.  
Any limitation would either be specific to the procurement or lie outside of the procurement 
framework.  
 
46. What are the procurement rules under which Government Trading Enterprises (GTEs) operate?  
 
Answer
 
 
The Australian Government (Central) does not use the term 'GTE'.  The Commonwealth Procurement 
Guidelines apply to all government bodies subject to the Financial Manage ment and Accountability 
Act, 1997 and, by extension, to certain 'prescr ibed' bodies subject to the Commonwealth Authorities 
and Companies (CAC) Act, 1997. To this extent th e procurement rules applied to prescribed CAC Act 
bodies are the Commonwealth Procurement Guidelines (CPGs). 
 
47. Could Australia provide a list of the government trading enterprises (GTEs)? 
 
Answer  
 
GTEs are not part of the governance framework for the Australian Government (Central). The 
Australian Government does not maintain a central  list of government bodies across jurisdictions. 
Further information on the States and Territori es can be accessed via the following website 
https://www.tenders.gov.au/?event=public.relatedlink.list 
 
WTO Secretariat' s report, page 56 footnote 81 
 
In the past three years, the thresholds for public  works and procurement of construction services have 
been significantly raised (from $A2 to $A5 million; and from $A6 million to $A9 million, 
respectively).   
 
48. Could Australia provide explanation on what  is the reason for such an increase in the 
threshold level? 
 
49. Furthermore, how can that be assessed in terms of transparency, accountability and budget 
efficiency?  
Answers to Q48-49
 
 
The reference to the Public Work s Committee in the secretariat’s re port is incorrect.  The Public 
Works Committee Act 1969 (http://www.comlaw.gov. au/Series/C2004A07417) operates separately 
from the procurement policy framework.  The current threshold for consideration by the Public Works 
Committee (http://www.aph.gov.au/house/committee/pwc/i ndex.htm) is $15 million.  This was raised 
from $6 million in 2006 (prior to the last Trade Policy Review of Australia).  WT/TPR/M/244/Add.1 
Page 160  
 
 In relation to the increased procurement thres hold from $6 million to $9 million for construction 
services, the $6 million threshold had been applied to align with the threshold for 'Public Works 
Committee'.  However, when that committee’s thre shold changed to $15 million, the procurement 
framework was unable to continue to mirror the PWC threshold.  The current $9 million threshold 
approximates the threshold in our Free Trade Agreements. 
 
In terms of transparency and accountability, Australia  feels that appropriate thresholds for mandatory 
procurement procedures should be substantially high er for construction services than for other goods 
and services.  In terms of efficiency, Australia seeks,  to the extent possible, to align its domestically 
applied thresholds with its international commitments. 
 
WTO Secretariat' s report, page 57 para. 66 
 
The WTO Secretariat's report notes that "AusTender provides a single portal to advertise business opportunities and to report the award of gove rnment procurement contracts. /…/". 
 
50. Could Australia provide further informa tion whether AusTender actually advertises any 
procurement opportunities, in particular t hose published by State and local entities? 
 
Answer
 
 AusTender is the Australian Government’s procur ement information system, the centralised web-
based facility that publishes all departments and ag encies’ (subject to the Financial Management and 
Accountability Act 1997) planned procurements, appr oaches to market (procurement opportunities) 
and contracts awarded.  It also supports secure el ectronic tendering to deliver tender process integrity 
and efficiencies for agencies and business.  AusTen der is a compliance mech anism for agencies to 
meet their transparency and accountability obligations  to Parliament and to the public.  Importantly 
for industry and the community, it is also a busin ess intelligence tool that pr ovides early access to and 
participation in Government business opportunities.    AusTender is also a portal site with links to State and Territory procurement websites. 
 WTO Secretariat' s report, page 57 para. 67 
 
The WTO Secretariat’s report notes that "Australia h as maintained its target of sourcing at least 10% 
of purchases by value from small or medium-size enterprises (SMEs)./…/".  51. Could Australia elaborate on the reasoning behind the maintaining of such requirement?  
 
52. Is this a national-wide requirement or only applicable in certain States? 
 53. Are these provisions applied to FTAs partners? 
 
Answers to Q51-53
 
 
As can be seen at the Australian Government Procurement Statistics website (http://www.finance.gov.au/publications/statistics- on-commonwealth-purchasing-contracts/index. 
html), the Australian Government (Central) exceeds this without the use of mandatory or voluntary 
measures.  This commitment is an acknowledgeme nt that a government procurement market wholly 
reliant on large-scale supply would lack robustn ess and have difficulty demonstrating value for 
money. 
  WT/TPR/M/244/Add.1 
 Page 161 
 
 
  54. Could Australia elaborate further on the requ est of Australian Industry Participation (AIP) 
plans? Is this a request which concerns only foreign bidders?  
 
55. How do the mentioned AIP plans match the principles of transparency and non-
discrimination? 
 
Answer to Q54-55  
 
Further information on the Australian Industr y Participation policy is available at 
http://www.innovation.gov.au/Industry/AustralianIndus tryParticipation/Pages/CGPAIPplans.aspx.  
These requirements apply to all suppliers - domestic and foreign.  Through these measures Australia 
seeks to promote fair and open competition in the public and private sectors.  In an environment where SMEs are appropriately identified in terms of  their potential contribution to supply chains, they 
will be able to compete in the private sector fa irly and increase their co mpetitiveness as a result.  
There is no discrimination against suppliers (domestic  or foreign) who produce and maintain a plan.  
The policy is applied in a transparent and non-discriminatory manner.   
 
WTO Secretariat' s report, page 58, para. 71 
 
The WTO Secretariat’s report states that "Buy Local procurement policies have also been 
strengthened recently at state level. /…/", while still being designed to comply with Australia's 
existing bilateral commitments on government procurement. 
 
56. Could Australia inform whether, apart from  Victoria and New South Wales, there are any 
other Buy Local procurement poli ces? Are there also Buy local polic ies applied in cities like Sydney 
and Melbourne? 
 
57. Recalling the then-Minister for Trade Sim on Crean's equating the government of New South 
Wales' encouragement of domestic procurement under its Local Jobs First Plan to a de facto tariff
11, 
does Australia actively discourage state government s' incorporation, and in some instances 
strengthening, of "buy local" and/or price preferen ces for local goods in their procurement policies? 
If yes, how? 
 
Answer to Q56-57  
 
In addition to the policies maintained by the govern ments of Victoria and Ne w South Wales referred 
to in the question, the States of Western Austra lia and South Australia, also have limited SME 
policies of this kind. Sydney and Melbourne are, respectively, the capital cities of New South Wales 
and Victoria.  Under Australia’s federal system of government , each of the six states and two territories are 
responsible for developing and implementing thei r own procurement policies. Ministers at the 
Australian Government (Central) level, such as former Trade Minister Simon Crean, have regularly 
called on governments not to implement discriminatory procurement policies.  
 
The same paragraph in the report mentions several  legal provisions on local content incentives. In 
particular, local industry preference margins, AI P programs, advantages to SMEs (whose scope has 
been widely increased in New South Wales by re-d efining them, from less than 200 employees to less 
than 500), are highlighted. 
 
58. Are these provisions applied to Australia's FTA partners? 
                                                     
 
11 http://www.trademinister.gov.au/transcripts/2009/090617_sky.html WT/TPR/M/244/Add.1 
Page 162  
 
  
59. What was the reason for the expansion in th e definition of an SME in New South Wales? Has 
that led to any significant shift in the propor tion of tenders allocated to local companies? 
 Answer to Q58-59
 
 
In relation to the reference to AIP policy maintain ed by the Australian Government (Central), these 
requirements apply to all suppliers - domestic and foreign.  Australia seeks to promote fair and open 
competition and an environment in which SMEs are a ppropriately identified in terms of their potential 
contribution to supply chains.   The policy is app lied in a transparent and non-discriminatory manner.  
The amendment of the SME definition applied by Ne w South Wales is part of a broader package of 
measures designed to encourage greater SME partic ipation in that State’s procurement market. The 
Australian Government is not aware of any eviden ce that this increase in the SME definition has 
resulted in any significant shift in the proportion of contracts going to local suppliers. 
 
The same paragraph states that "/…/Under the July 2009 Victorian Industry Participation Policy, 
local-content rules aimed at encouraging SME partic ipation in government procurement may apply to 
projects designated strategically significant by Vict oria's Department of Innovation, Industry and 
Regional Development. /…/".  
60. Could Australia further elaborate on what pr ojects the Victorian government deem to be 
strategic? 
 Answer
 
 
The Victorian Industry Participation Plan (VIPP) states that:  
"Major projects that have whole-of-life costs of $250M  or more can now be declared of 'strategic 
significance' if they meet certain criteria. The proj ect has to have the potential to make a strategic 
contribution to the productive capability of Victor ia and its ongoing economic wellbeing, as well as 
the potential to generate local industry participatio n and the transfer of skills/technology that will 
build the State's ongoing industry capability. http://www.icnvic.org.au/icn_services_and_programs/vi ctorian_industry_partic ipation_policy_(vipp).
html 
 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
 
WTO Secretariat' s report, page 59 
 
Question 61  
 
What measures – if any – does Austra lia take to ensure that goods des tined for export are produced in 
full respect of the fundamental rights at work? 
 
Answer  
 
The Australia Government has ratified seven out of the eight ILO fundamental principles and rights at 
work. Australia gives effect to these through Co mmonwealth, state and territory legislation and 
practice. The Australian Government is firmly  committed to fulfilling its international labour 
obligations under the fundamental principles and th erefore ensures that legislation and practice at 
Commonwealth and state and territory levels are cons istent with these obligations. The Government is 
required to periodically report to the ILO Committ ee of Experts on the Application of Conventions 
and Recommendations (CEACR) on the way in which it gives effect to its obligations under ratified 
ILO Conventions, including the fundamental principles.   WT/TPR/M/244/Add.1 
 Page 163 
 
 
   
With respect to the production of goods destined for e xport, it is likely that the relevant legislation 
would be the Fair Work Act 2009 as it regulates nearly 96% of all private sector employees. Importantly, the CEACR has made positive comments in  relation how key aspects of this legislation 
give effect to the fundamental principles. Pleas e refer to the response to Question 6 for further 
information. 
 
(iii) State trading 
 
WTO Secretariat' s report, page 60, para. 79 
 
Question 62
 
 How does Australia ensure the fundamental right s at work as embodied by the ILO's 2008 
Declaration on Social Justice for a Fair Globalisation and the 8 core ILO Conventions and are 
respected by state-owned enterprises, in particul ar those that are engaged in manufacturing or 
processing destined for export? 
 
Answer
 
 
As mentioned elsewhere, Australia has ratified seven  out of the eight ILO fundamental principles and 
rights at work. Australia gives effect to these th rough Commonwealth, state and territory legislation 
and practice. As Australia is a federal state, the responsibility for implementing the fundamental 
Conventions is shared between the Commonwealth, state and territory jurisdictions, depending on the 
coverage of the relevant legisl ation. For example, the Commonwealth Fair Work Act 2009 (FW Act) 
regulates Commonwealth and territory employees in a ddition to greater than 96% of private sector 
employees across Australia. On the other hand, stat es and territories have responsibility for regulating 
occupational safety and health.  As stated above, Australia's treaty-making policy requires that treaties, such as ILO Conventions, 
cannot be ratified unless full compliance has been achi eved in all jurisdictions. This means that the 
provisions of ILO fundamental Conventions must be included in (and complied with) 
Commonwealth, state and territory law in order fo r Australia to ratify them. Once a Convention has 
been ratified, Australia is obliged to periodica lly report to the ILO Committee of Experts on the 
Application of Conventions and R ecommendations (CEACR) on how it gi ves effect to its obligations 
under ratified Conventions. State and te rritory governments are required to contribute to the reports on 
how the requirements of the Conventions are met in their respective jurisdictions. In their reports, the 
CEACR takes into account state and territory co mpliance with the Conventions when assessing 
whether Australia meets its obliga tions under ratified Conventions. 
 In relation to state-owned enterprises, it is likely that these enterprises would now be covered by the 
FW Act following the referral of states’ powers fo r the regulation of workplace relations to the 
Commonwealth (with the exception of Western Australia ). As stated elsewhere in the report, the FW 
Act gives full effect to Australia’s obligations un der the fundamental principles and this has been 
affirmed by the CEACR.   Please refer to the response to Questions 6 and 61 for further information.    WT/TPR/M/244/Add.1 
Page 164  
 
 (4) M EASURES AFFECTING PRODUCTION AND TRADE  
(i) Taxation 
(a) Indirect taxation 
 
Question 63  
 
The WTO Secretariat´s report gives an overview about  the excise taxes Australia currently levies.  
 Could Australia inform what is the definition of "Brandy", as used in Table III.6 specifying excise 
rates?   
Answer
 
 
"Brandy"  means a spirit distilled from grape wine in su ch a manner that the sp irit possesses the taste, 
aroma and other characteristics generally attributed to brandy.  Question 64
 
 
Also, could Australia state how is it ensured t hat the different excise rates for "Brandy" on the 
one hand and "other spirits, exceeding 10% alcohol  content" on the other, do not indirectly 
discriminate against imported spirits (a s for example whiskey or vodka)? 
 
Answer  
 
Australia does not believe that its excise rates discriminate, directly or indirectly, against imported spirits.  Australia notes that imported brandy products are subject to the same excise rate as 
domestically produced brandy.   
Question 65
 
 
As noted in the WTO Secretariat’s report the rate of Luxury Car Tax has been  increased from 25% to 
33% and falls disproportionately on imports (p IX, Para 15).  Despite two official inquiry reports 
(Bracks' Review of Australia's Automotive Indus try and the Henry Review of Australian Taxation 
System) both recommending its abolition this discriminatory tax remains.    As imported cars are generally more expensive th an locally-produced models, imported cars are 
disproportionately affected by the tax – how does Australia justify a luxury car tax that 
disproportionately affects imported cars?  Answer
 
 
We do not agree the luxury car tax is discriminator y. The luxury car tax is applicable to all new 
vehicles cars with a retail selling price of greater than $A57,466 (2010-11 threshold) including GST, 
regardless of whether the cars are imported or domes tically produced.  This is consistent with the 
WTO rules.    
Question 66
 
 
Could Australia elaborate on its intentions to review th is tax as part of the forthcoming Tax Forum?   
  WT/TPR/M/244/Add.1 
 Page 165 
 
 
  Answer  
 
The final report of the Henry Review, titled the Stro nger, Fairer, Simpler – A tax plan for our future 
was released by the Government on 2 May 2010, together with its initial response, where the Government noted that the Henry Review’s recommenda tion to abolish the luxury car tax was not this 
Government’s policy and would not be implemented at any stage. 
 
(c)  Tax incentives appraisal 
 
Question 67
 
 
The WTO Secretariat’s report states that "Austral ia's latest annual Tax Expenditures Statement 
identifies 337 (about 270 in 2005) tax expenditu res provided in 2009 by the Commonwealth 
Government to benefit a specified activity or cla ss of taxpayer:  110 pertain directly to business 
income, 21 to commodities (e.g. fuel, alcohol, beer, wine, tobacco), 4 to natural resources, 23 to GST, 
and 5 (as from 1 July 2011) to the Carbon Poll ution Reduction Scheme, whose introduction was 
deferred until after the end of the current Kyoto Period in 2012 and when certain international 
conditions are met./…/".   Could Australia provide details on how the Car bon Pollution Reduction Sche me (CPRS) will apply to 
fishing businesses? 
 
Answer
 
 
The Government is currently developing its carbon price policy and established a Multi-Party Climate 
Change Committee to explore options for the intro duction of a carbon price and help build consensus 
on how Australia will tackle climate change. 
 On 24 February 2011, the Prime Minister, the H on Julia Gillard MP, outlined a proposed framework 
for implementing a carbon price in Australia. This two stage plan for a carbon price mechanism will 
start with a fixed price emissions trading scheme for three to five years before transitioning to a fully 
flexible cap-and-trade emissions trading scheme.  The Government proposes that the carbon price 
commences on 1 July 2012, subject to the Govern ment’s ability to negotiate agreement with a 
majority in both houses of Parliament and pass legislation this year.  
 
Question 68
 
 
Will fish processing companies also be covered by this scheme? Is it correct t hat the fisheries sector 
will benefit from a ‘CPRS fuel credit’ specific for the fisheries and agricultural sector? Could 
Australia confirm that, even though fishing businesses pay no fuel tax, they still will benefit from such 
"fuel credit"? Has Australia quantified the amount of the "CPRS fuel credit" that will benefit the fishing industry? 
 
Answer
 
 
The Australian Government is, through the Multi-Part y Climate Change Committee, in the process of 
developing the design of its Emission Trading System.    Question 69
 
 Can Australian fishing businesses qualify as "Emi ssions-Intensive, Trade-Exposed" (EITE) entities 
and be eligible to receive free emission permits  under the EITE Assistance Programme or EAP? 
 WT/TPR/M/244/Add.1 
Page 166  
 
 Answer  
 
The Australian Government is, through the Multi-Part y Climate Change Committee, in the process of 
developing the design of its Emission Trading System.   
 
(v) Intellectual property rights (b) Geographical indications (GIs) 
 According to the WTO Secretariat’s report, the Food Standards Code contains prohibitions on infringements of GIs of spirits.  However, there are questions whether these provisions are actually 
enforced.  In the last 5 years the Scotch Whisky Association (SWA) has found on the market in 
Australia a large number of spirits misdescribed as  "Scotch Whisky". The SWA has been forced to 
take 13 legal actions in Fe deral Court to restrain the sale of 24 brands of fake Scotch Whisky. No 
other OECD country has a problem of fake Scotch Whiskies at equivalent level.   
 
Question 70
 
 
Could Australia provide information on what action does it intend to take to ensure that the integrity 
of the "Scotch Whisky" GI is maintained?  Answer
 
 
Australia provides the legal means for protection of geographical indications (GIs) consistent with our 
obligations under the WTO Agreement on Trade-Re lated Aspects of Intellectual Property Rights 
(TRIPS Agreement).  Australia’s protects GIs th rough a range of specific and general provisions 
under both State and Federal legislation, the food standards code and common law. 
 
Consistent with the principle set out in TRIPS that  intellectual property rights are private rights, the 
responsibility for protection and enforcement of GI s in Australia falls to those who enjoy their 
commercial benefits. Scotch whisky producers are entitled to utilise existing legal avenues to protect 
and enforce their intellectual property rights.  
While Scotch whisky producers have taken some actions to successfully protect their rights in 
Australia, they are yet to avail themselves of the full spectrum of protection available under 
Australian law.  To our knowledge, Scotch whisky producers have not applied for a certification trade 
mark in Australia.  Other European producers have  effectively protected alcoholic beverages using 
Australia's certification trade mark system - fo r example 'Asti', 'Recioto', 'Amarone' and 'Chianti 
Classico' are all registered certification trade marks in Australia.   
 
Question 71
 
 Also, could Australia provide information on enfo rcement activities of the protection of GI products 
such as Scotch Whisky, particularly by  preventing sales of fake Scotch Whisky? 
 
Answer
 
 
Following consultations, including with the UK, Food Standards Australia New Zealand (FSANZ) 
published a User Guide on Labelling of Alcoholic Be verages in 2010, which included Scotch whisky 
as an example of a spirit product name for which the Code includes prohibitions on certain uses.  This 
guide informs bottlers and other users of  the requirements under Australian law. 
 FSANZ will bring the concerns regarding enforc ement of the Code to the attention of the 
Implementation Sub-Committee of the Food Regulation Standing Co mmittee, which develops and  WT/TPR/M/244/Add.1 
 Page 167 
 
 
  oversees a consistent approach across jurisdictions  to implementation and enforcement of food 
regulations and standards.  Enforcement of the C ode is the responsibility of the state and territory 
governments in Australia.   
Question 72
 
 
What are the penalties contained in the Australian legislation for the infringement of the  Food 
Standards Code and the Comme rce Trade Descriptions Ac t 1905 regarding  geographical 
indications?  
Answer
 
 
The penalty of up to $10,000 per offence is applicable for importi ng or exporting goods which breach 
of the Commerce (Trade Descriptions) Act 1905.  The goods which have been found to breach this 
Act can also be forfeited to Customs and destroye d – preventing their entry into the marketplace. 
 
The penalties for failing to comply with the Au stralia New Zealand Food Standards Code are 
prescribed in state and territory law.  These stat e and territory laws are based on the Model Food 
Provisions, which provide that the maximum penalty for failing to comply with the Food Standards 
Code is $50,000 in the case of an individual , and $250,000 in the case of a corporation. 
 Question 73
 
 
Is the Australian government planning to redu ce the term for the concession of design rights? 
 
Answer  
 
In Australia, a registered design under the Desi gns Act 2003 has a maximum term of protection of 
10 years, with a renewal fee payable at the 5th anniversary from filing.  Australia is not currently 
proposing to reduce the term for a registered design.    
Question 74
 
 
Could Australia inform whether it has some activities ongoing related to improving the statistics for counterfeiting and piracy?  Answer
 
 Australian enforcement agencies maintain statis tics on counterfeiting and piracy.  The Australian 
Federal Police maintains statistics on the scale of criminal counterfeiting and piracy.  The 
Commonwealth Director of Public Prosecutions al so maintains records reflecting prosecutions for 
criminal counterfeiting and piracy.   Similarly, Customs maintains detailed statistics on the cross 
border traffic of counterfeit and pirate materials.   These build a comprehensive picture of public 
enforcement of IP rights.  Statistics on the privat e enforcement of IP rights through the courts are 
maintained by the Federal Court of  Australia and Federal Magistrates Court.  Finally, government 
agencies with responsibility for IP legislation main tain regular contact with industry representatives 
who maintain their own statistics on counterfeiting a nd piracy - which complement those enforcement 
statistics put together by Government.  Question 75
 
 In the field of fair trading and consumer protection policy, the report states that one of the main possible contraventions to the Trade Practices Ac t (now Competition and Consumer Act 2010) relates WT/TPR/M/244/Add.1 
Page 168  
 
 to misleading or deceptive conduc ts. There are many Australian-made food products that display on 
their labels mentions to European origins, or  European-style trading names. Italian, Spanish, 
Hungarian, Polish, Danish and other misrepresen tations are commonly found in Australian retail 
stores. This situation should also be put in the c ontext of the intellectual property protection, such as 
through the Trade Marks Act 1995, as well as protecti on provided through labelling legislation, such 
as the Commerce Trade Descriptions Act 1905. 
 How does the described practice coexist with th e Government-sponsored “Australian Made” policy? 
 
Answer
 
 
The Australian Government does not sponsor an ‘A ustralian Made’ policy.  The ownership of the 
Australian Made logo (now the Australian Made, Au stralian Grown Logo) was deeded to a private 
not-for-profit business, Australian Made Company Li mited (AMCL), in 2002.  While the Australian 
Government maintains some residual rights under the deed (such as agreement to any changes to the 
certification code of practice), it does not otherwise support or interfere with the administration of the 
logo by AMCL as a means of indicating to Austra lian consumers the origin of the products licensed 
by AMCL to carry the logo. 
 
Question 76  
 Does the Australian Government share the view th at these trade practices are misleading for the 
consumers?  
Answer
 
 No 
 
Question 77
 
 
Are there any actions that the Australian Compe tition and Consumers Commission could undertake to 
prevent such misleading or deceptive conduct and prot ect the legitimate intellectual property rights of 
the European producers and exporters, as well as tho se of their established Australian importers and 
consumers?  
Answer
 
 
No.  Australia is a multicultural country, and we owe much to the origins of our antecedents and the 
variety of foods and other products they brought with them, which have become a part of the fabric of 
our daily lives.  Where Australian made products, su ch as salamis or sausa ges, are described as 
'Danish' or 'Polish' or 'Italian', it is an indication of the style of salami or sausage in question (that is, 
its texture, flavour and spiciness), not an indication of the country in which it was made or produced. 
 IV. TRADE POLICIES BY SECTOR (2) A
GRICULTURE , LIVESTOCK , FORESTRY , AND FISHERIES  
(v) Fisheries  
 
WTO Secretariat' s report, page 93, para. 28 
 
The WTO Secretariat’s report stat es that "All components of the Secu ring our Fishing Future (SOFF) 
package, including business exit assistance, business advice assistan ce, assistance for skippers and 
crew, onshore business assistance, fishing comm unity assistance and the Australian Fishery 
Management Authority (AFMA) Levy Subsidy,  were completed by 30 June 2010./…/".   WT/TPR/M/244/Add.1 
 Page 169 
 
 
   
Question 78  
 
Could Australia provide details concerning the im plementation of the aforementioned programmes? 
 
Answer  
 
On 16 December 2005 the then Australian Governme nt Minister for Fisheries, Forestry and 
Conservation issued a formal Ministerial Direction to AFMA to implement a range of measures to end 
overfishing, limit the risk of future overfishing and manage the broader environmental impacts of 
fishing. The Ministerial Direction identified the need for urgent action to halt overfishing and to 
recover overfished stocks rapidly to sustainable levels.  On 23 November 2005, the Australian Govern ment announced the AUD 220 million Securing our 
Fishing Future package. The pack age was intended to address factors affecting the sustainability of 
the Commonwealth’s fish stocks and the profitability of the fishing industry. These factors included 
overfishing, excess fishing capacity and economic and market pressures. Its primary component was a 
structural adjustment package. The Government also announced new management arrangements to 
halt overfishing and give overfished stocks a chance to recover.  The AUD 220 million, one-off structural adjustment package was to: 
 
• Buy-back up to AUD 149 million in fishing c oncessions (Business Exit Assistance) within 
and across Australian Commonwealth managed fisheries; 
• Provide AUD 50 million in grant assistance to individuals, businesses and companies that had 
been affected by the impacts of the buyback and/or by the new management measures; 
• Provide AUD 21 Million to the Australian Fisherie s Management Authority (over three years) 
to offset the expected reduction in levies re ceived from fishing concession holders and to 
improve its science, compliance and data collection. 
 
With regard to the "Onshore Business Developmen t Assistance", was financial assistance provided 
for fisheries infrastructure or for fish processing?  
 
Answer
 
 
The Onshore Business Development Assistance (OB DA) program, part of the Securing our Fishing 
Future package, provided financial assistance to  businesses which were severely affected by the 
reduction in fishing activity. Grants were availa ble to business to introduce new processing systems or 
technology; develop new product lines; improve business productiv ity or develop value adding 
activities.  
 
Both processing and infrastructure projects invo lving the development, implementation and 
installation of new processing system or technol ogy, new product lines, improvement to business 
productivity and the development of value adding activities were funded through the OBDA program. 
 Could Australia provide details about the "fishing communities" that benefited from this programme? 
Could also Australia explain the rationale for pr oviding help through a fisheries programme instead 
of using other instruments, for example in th e context of general social and/or employment 
programmes? 
 WT/TPR/M/244/Add.1 
Page 170  
 
 Answer  
 
The Fishing Community Assistance (FCA) program was a component of the Securing our Fishing 
Future package and hence was delivered in conjuncti on with and complemented the other elements of 
the Package. Priority was given to projects that  delivered economic activity and new employment 
opportunities to fishing communities left vulnerabl e due to reduced fishing activity following the 
concession buyback (Business Exit Program) and reductions  in Total Allowable Catch in the fisheries 
based in those communities.  Projects funded through the FCA program involved a range of businesses within the affected fishing 
communities. The businesses did not have to have a direct link to fishing but rather delivered 
economic activity and new employment opportunities to the communities. The majority of projects 
delivered new processing systems or technology; developed new product lines and improved business 
productivity to businesses directly linked to fish ing some projects funded non fisheries related 
employment opportunities and gene rated economic activity in the communities affected by the 
Business Exit Program. 
 Given that this program complemented the other el ements of the Securing ou r Fishing Future package 
it was decided that it would be best delivered through and alongside the other elements of the 
Package, rather than through other social and/or employment programs, to minimize any duplication 
and to ensure that the best value for money was achieved. 
 
Question 79
 
 
According to publicly available information, in 2009 $A6 million was allocated towards 24 projects in 
the fisheries sector, benefiting among other areas, th e Western Rocklobster fishery, or aboriginal 
fisheries in New South Wales. The funds were  provided through the Fisheries Research and 
Development Corporation (FRDC).  a) Are these funds part of the Securing our Fishing Future (SOFF) package or are part of a 
different initiative?   
 
Answer
 
 
These funds are separate to the SOFF package and support fisheries research across a variety of 
sectors, including scientific, social and education outreach projects. The 24 projects will help to 
ensure Australia’s fishing industries are sustainable and have a vibrant future. 
 
b) With regard to the Fisheries Research and Development Corporation (FRDC), could 
Australia provide further information on the fu nctioning of this body? What is the Federal 
government's contribution to the funding of this body?   
 
Answer  
 
The Fisheries Research and Development Corpor ation (FRDC) is Australia’s leading agency 
concerned with planning, investing in, and managi ng fisheries research, development and extension. 
The FRDC is a statutory corporation founded in  1991 under the Primary Industries and Energy 
Research and Development (PIERD) Act 1989. It is  responsible to the Minister for Agriculture 
Fisheries and Forestry. The FRDC’s mission is to  maximise economic, environmental and social 
benefits for its stakeholders through effective i nvestment and partnership in research, development 
and extension. Stakeholders of the FRDC include the Australian Government and the three sectors of 
the fishing industry: commercial (wild catch and aqu aculture), recreational and indigenous. It is also  WT/TPR/M/244/Add.1 
 Page 171 
 
 
  guided by state and territory governments, othe r funding bodies, research providers, community and 
interest groups and ultimately the people of Australia.  In 2009-10 the Australian Government provided $A UD16.34 million to the FRDC, which represents 
68% of contributions to the FRDC. The remaining 22% ($AUD7.57 million) is supplied by the fishing 
industry. 
 
(5) S
ERVICES  
(iii) Commitments under the General Agreement on Trade in Services 
 
Question 80  
 
With regard to the accreditation procedure and the ob ligation of foreign Architects to register with 
the professional body, could Australia clarify wh ether such registration is conditioned upon the 
acquisition of a visa? In case the reply is positive in this respect, could Australia confirm that the 
granting of a visa is not, furthermore, conditione d upon registration with the professional body?    
 Answer
 
 
Before a person can obtain a skilled visa (temporary or permanent) to work in Australia in the 
occupation of "Architect", they must have thei r academic qualifications assessed by the Architects 
Accreditation Council of Australia (AACA). A positiv e skills assessment must be obtained before a 
visa can be granted. This will allow the person to  work in Australia performing the duties of an 
architect but not to legally use the title "Architect". To obtain the legal title of "Architect", the person 
must additionally obtain registration with the Architects' Board in the relevant State or Territory after 
a period of practice in Australia and passing (where prescribed) the AACA Architectural Practice 
Examination.   
 
(vi) Communications  WTO Secretariat's report, page 114  
 
Question 81
 
 
Could Australia provide some information on the current state of liberalisation and policy framework 
regarding the postal and courier services sector? 
 
Answer  
 
Under the Australian Postal Corporation Act 1989 Aust ralia Post has the exclusive right to provide 
reserved letter services within Australia for, among ot her things, letters weighing up to 250 grams and 
carried for a charge or fee less than four times th e basic postage rate. All non-reserved services, as 
defined by that Act, are open to competition. Th e government currently has no plans to change these 
arrangements. 
 
(a) Telecommunications  
 
According to the WTO Secretariat’s report, "/ …/On 20 June 2010, the Australian Government 
announced that it is developing a new institutiona l, regulatory, and funding framework for the 
delivery of the USO and other public-interest servi ces to support the development of the National 
Broadband Network. The details of these arrangements and decisions about further regulatory changes 
to apply in the longer term will be announced  following public consultation.   /…/". 
 WT/TPR/M/244/Add.1 
Page 172  
 
 Question 82  
 
Could Australia provide further information and expected time schedule on the public consultation 
process?   
 
Answer  
 
The Government released a discussion paper, titled "Implementation of Universal Service policy for 
the transition to the National Broadband Netw ork environment" in October 2010 – see 
http://www.dbcde.gov.au/broadband/national_broa dband_network/universal_service_policy.  The 
period for submissions has now passed.  The discussi on paper does note that any future legislative 
and/or regulatory process will include appropriate consulta tion with stakeholders.  
 
Question 83  
 
Concerning the National Broadband Network (NBN) are there specific orientations as to the 
participation of foreign ICT compani es in the broadband development? 
 
Answer  
 
As provided in the NBN Co Limited (NBN Co) Corporate Plan, released on 20 December 2010, NBN 
Co intends to harness the capabilities of Australian and global suppliers of equipment and services to 
build its network infrastructure efficiently, quick ly and to the high quality standards required for a 
long operating lifetime.  In line with this, NBN Co sought capability statemen ts from the market in relation to capability to 
provide goods and services.  
  
PAKISTAN
 
 
CHAPTER III TRADE POLICIES AND PRACTIVES BY MEASURE 
(1) O VERVIEW  
 Question 1
 
 
As pointed out in the Secretariat’s Report, Austra lia’s applied MFN tariff rates currently fall short of 
bound rates by an average of about 7 percentage poi nts while they are up to 55 percentage points for 
clothing items, which provides considerable scope for increase in applied tariffs within bindings. 
Similarly, the TCF and leather industries and moto r vehicles and parts continue to benefit from 
relatively high effective rates of protection (more than double the manufacturing sector’s average and 
the highest of all goods industries). Could Australia explain if it has plans to reduce protection for 
goods in the TCF and other sectors enjoying higher protection?  
 Answer
 
 
The gap between Australia’s average bound MFN tari ff rates and average applied MFN rates reflects 
the significant unilateral tariff reductions which Aust ralia has undertaken in recent decades.  Far from 
providing an environment of unpredictability and uncerta inty for trade operators, Australia has in fact 
provided an extended period of certainty for trader s by enshrining a series of scheduled applied tariff 
reductions across automotive and textile, clothi ng and footwear products in legislation. 
  WT/TPR/M/244/Add.1 
 Page 173 
 
 
  Australia’s last scheduled tariff reduction occu rred on 1 January 2010, and the next scheduled 
reduction will occur on 1 January 2015.  As of this  date, Australia will apply no tariffs at an ad 
valorem value above 5% with the exception of 13 tariff lines subject to specific duties. Australia has 
supported an outcome in the Doha Round for indus trial goods based on a Swiss formula, which will 
significantly reduce bound rates, address the gap betw een bound and applied rates and deal with any 
purported higher protection to specific sectors. 
 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(vii) Standards and other technical requirements 
 
Question 2  
 
The Secretariat Report also notes that so far no unifi ed analytical framework has been used to assess 
the costs and benefits of SPS measures for stake holders along the supply chain, such as domestic 
consumers, producers and governments, or foreign s uppliers, or, where relevant, foreign consumers 
and governments. The Report adds that Australia ha s been criticized by certain trading partners on 
the grounds that they are unduly stringent and therefo re protectionist. In what manner does Australia 
plan to address these issues?  Answer
 
 
Australia does maintain a strict sanitary and phytosanitary regime, which is proportionate to 
Australia’s appropriate level of protection.  Ou r 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. Australia bases its national standards as closely as possible 
to those of the World Organisation for Animal He alth (OIE), the International Plant Protection 
Convention (IPPC) and the Codex Alimentarius Co mmission.  However, in some cases, relevant 
standards do not exist or the international standard s do not deliver the level of protection required by 
Australia to maintain its appr opriate level of protection. 
 
The SPS Agreement clearly states the economic factors that can be taken into account during risk 
assessment. The use of cost/benefit analysis, as stipul ated in the report, does not comply, in our view, 
with the SPS Agreement. 
 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(vi) Contingency measures, para 35 
 Question 3
 
 
The Secretariat Report notes that with 221 cases initi ated between 1995 and 2010, Australia is one of 
the world major users of anti-dumping measures. C ould Australia explain whether it has plans to 
bring down this high rate of in stitution of anti-dum ping measures?  
 
Answer  
 Australia maintains an effec tive anti-dumping and countervailing system which provides a WTO-
consistent mechanism to respond to dumped impor ts.  The number of anti-dumping measures depends 
on the number of applications for measures that  are made and the result of the authority’s 
investigations.     WT/TPR/M/244/Add.1 
Page 174  
 
 FIJI  
 SECRETARIAT’S REPORT ON AUSTRALIA’S TRADE POLICY REVIEW (TPR)  II. (1) O
VERVIEW  
 
Question  
 Page 18, Paragraph (1)  states that during the period under review (2007-2011), Australia has 
pursued regulatory reforms with a view to remov ing barriers to improve productivity. Can Australia 
identify the types of regulatory review that it has pursued? 
 Answer
 
 
The COAG Reform Council’s report COAG Refo rm Agenda:  Report on progress 2010, released 
30 July 2010, includes a table summarising reform ac tivities that are relevant to boosting productivity, 
which can be accessed on from the following website (page 91):  http://www.coagreformcouncil.gov.au/repor ts/docs/COAG_reform_agenda_2010.pdf 
 A copy of the National Partnership Agreement to Deliver a Seamless National Economy (SNE NP) 
can be accessed from the following website: 
 http://www.federalfinancialrelations.gov.au/cont ent/national_partnership_agreements/OT001/ 
Seamless_National_Economy.pdf  
A description of the 27 deregulation priorities a nd eight competition reforms under the SNE NP, and 
the other non- SNE NP reforms, can be found in  the implementation plans, which can be accessed 
from the following websites:  http://www.coag.gov.au/coag_meeting_outcom es/2011-02-13/docs/revised_np_sne_part_1_ 
deregulation_priorities_imp_plan.pdf 
 
http://www.coag.gov.au/coag_meeting_outcom es/2011-02-13/docs/revised_np_sne_part_2_ 
deregulation_priorities_imp_plan.pdf  http://www.coag.gov.au/coag_meeting_outcomes/ 2011-02-13/docs/revised_imp_plans_coag_ 
deregulation_reforms _outside_npa_sne.pdf 
 
II. (1) O
VERVIEW  
 Question 
 
 
Page 18, Paragraph (4) states that Australia’s foreign investment legislation which was changed 
slightly to reduce notification related compliance co sts, continues to screen large investment projects 
on the basis of vaguely but not prescriptive "national interest" criteria.  Can Australia provide clarifications on what a re the requirements within the "national interest" 
criteria. 
  WT/TPR/M/244/Add.1 
 Page 175 
 
 
  Answer  
 
Australia's Foreign Investment Policy (the Policy), wh ich was released in an ‘easy-to-read’ version in 
June 2010, provides guidance on what factors are typically considered in assessing whether a proposal is contrary to the national interest.   The nationa l interest concerns are determined on a case-by-case 
basis.  The relative importance of factors can vary depending on the nature of the proposed 
investment.  The Government typically consid ers the following factors when assessing foreign 
investment proposals:  
• national security - the extent to which investme nts affect Australia’s ability to protect its 
strategic and security interests; 
 
• competition - whether a proposed investment may result in an investor gaining control over 
market pricing and production of a good or servi ce in Australia and the impact that it has on 
the make-up of the relevant global industry, pa rticularly where concentration could lead to 
distortions to competitive market outcomes; 
 
• other Australian Government policies (including tax) - investments must be consistent with 
the Government's objectives in relation to matter s such as environmental impact.  The impact 
of an investment on Australian tax revenues is also considered; 
 
• the impact on the economy and the community –  
o For acquisitions in existing businesses, the Government considers the impact of 
any plans to restructure an Australian enterprise following an acquisition, the 
nature of the funding of the acquisition, the level of Australian participation in 
the enterprise remaining post-acquisiti on and the interests of employees, 
creditors and other stakeholders; 
o For acquisitions of interests in projects, the Government considers the extent to 
which the investor will develop the proj ect and ensure a fair return for the 
Australian people.  
o Investments should also be consistent with the Government’s aim of ensuring 
that Australia remains a reliable supplie r to all customers in the future; and 
 
• the character of the investor - the Government  considers the extent to which the investor 
operates on a transparent commercial basis and is subject to adequate and transparent 
regulation and supervision.  The Governme nt also considers the corporate governance 
practices of foreign investors. 
 In the case of foreign governments and their relate d entities, the Governments also considers if the 
investment is commercial in nature or if the inv estor may be pursuing broader political or strategic 
objectives that may be contrary to  Australia’s national interest. 
 
II. (8) F
OREIGN INVESTMENT REGIME  
 Question
 
 
Page 29, Paragraph 36 states that under Australia's foreign investment policy, it maintains foreign 
investment restrictions in certain sensitive sectors su ch as airport, banking, residential real estate, 
telecommunications and transport (Civil Aviation an d Shipping) and possibly more recently, natural 
resources.   WT/TPR/M/244/Add.1 
Page 176  
 
 Does Australia have any plans in future to gradual ly remove foreign investment restrictions in the 
areas identified?  Answer
 
 All foreign investment proposals including investment in the resource sector is subject to Australia's 
foreign investment review framework, which is ma de up of the Foreign Ac quisitions and Takeovers 
Act 1975, the Foreign Acquisiti ons and Takeovers Regulations  1989 and Australia’s Foreign 
Investment Policy.  Each application is assessed  on a case-by-case basis under the national interest 
test rather than applying any rigid rules or equity caps to resource investments.   The general threshold 
for business acquisitions involving private investors is an interest of 15% or more in an Australian 
business or corporation that is valued above $231 m illion.  This threshold applies to all Australian 
businesses and corporations.  Australian legislation other than the Foreign Ac quisitions and Takeovers Act 1975, includes other 
requirements and/or imposes limits on foreign i nvestment in the following instances: banking, 
international airlines, airports, sh ipping registration and Telstra. 
 Australia continues to review the appropriateness of its foreign investment rul es to ensure that they 
maintain the right balance between protecting Austra lia’s national interest and ensuring Australia is 
seen as a welcoming destination for foreign capital.  More broadly though, we  do not consider that 
Australia’s foreign investment rules restrict invest ment into Australia.  While we maintain a broad 
foreign investment screening framework, we impose few actual foreign investment restrictions, and 
Australia has not rejected a foreign investment proposal in any business sector since 2001 — when 
Australia rejected the Shell Group’s proposed ac quisition of Woodside Petroleum Ltd on national 
interest grounds.  Question
 
 Page 29, Paragraph 36 : last sentence states that the author ities consider Australia’s mode 3 
commitment under the GATS are not subj ect to the national interest test. 
 
In view of this, does Australia apply any other t esting methods to ascertain the credibility of foreign 
investors under mode 3 of its GATS commitment?   If so could Australia clarify please? 
 Answer
 
 Australia’s schedule contains no limitations such  as requirements for economic means tests, joint 
ventures or limits to foreign exchange and profit re patriation.  There are also no horizontal limitations 
on foreign equity participation or  on the type of commercial presence an investor must use.  
Australia’s Mode 3 GATS commitments reflect cu rrent market access and draw trading partners’ 
attention to the existence of the Australian Foreig n Investment policy framework.  In addition, the 
GATS commitments state that "[…] proposals for fore ign interests to invest in the services identified 
in the Schedule […] are approved unless national inter est considerations arise."  We note that the last 
sentence of paragraph 36 stating that "The authoriti es consider that Australia’s Mode 3 commitments 
under the GATS are not subject to the national interest test" is factually incorrect.  
 
III. (2)(vii) 
 
Question
 
 Page 51, Paragraph 51  states that Australia maintains a strict SPS regime. It is understood that SPS 
measures are applied to protect human or animal life or  health within the territory of members from  WT/TPR/M/244/Add.1 
 Page 177 
 
 
  risks arising from additives, contaminants, toxins or  disease-causing organism in food, beverages or 
food stuffs. We note that Australia has placed ban on the imports of Kava due to its abuse and 
consequent negative impacts on the indigenous community. 
 Could Australia explain how it sees this measure as  being necessary to achieve the stated objective?, 
in particular noting t hat substance abuse in the communities me ntioned is not restricted to that of 
kava but also other substances such as alc ohol resulting in negative societal effects.  
 Answer
 
 The Customs (Prohibited Imports) Re gulations 1956 provide that the im portation of kava will only be 
permitted for medical or scientific purposes.  Import rest rictions are enforced as part of a strategy to 
address the negative health and social impacts of excessive kava consumption in some Indigenous communities in the Northern Territory.    
However, recognising that kava has traditional ceremonial and cultural uses for people of Pacific 
Islander descent, passengers over the age of 18 arri ving in Australia may import up to 2kg of kava in 
their accompanied baggage, without the need for a permit.  Import restrictions on kava are administered through a non-automatic import licensing regime.  
Australia’s import licensing regime for the cont rol of specified narcotic drugs, psychotropic 
substances and related chemicals, including ka va, was notified to the WTO Committee on Import 
Licensing in October 2006 (reference G/LIC/N/3/AUS/3).   
 
ADDITIONAL QUESTIONS FROM FIJI
 
 
Report by the Secretariat  
 
(vii) Standards and other technical requirement 
(c) Paragraph 51: 
Fiji would like to request the basis of the Eminent Scientist Group (ESG) deci sion to ban Kava from 
imports.  
Government Report
 
 (3) Australian Quarantine Regime 
 
Paragraph 34 - 36:  The Fiji Department of Agriculture commends the Aust ralian Government in its effort and installation 
of the Australia Quarantine Insp ection Services under the Biosecurity umbrella. However, we note 
and experience treatment that dampens the spirit of  liberalization by the imposition of unnecessary 
restriction by Biosecurity Australia, a case in question is our Trade in Kava, Ginger and Taro.  
 Kava is a major commodity to Fiji and few other P acific Island countries, with direct positive linkage 
to Food Security, Livelihood Security and Rural De velopment. Since July 2007, the Department of 
Agriculture has not received notification fro m WTO SPS notification committee secretariat on 
Australia’s change in policy and therefore have  not been requested to comment on the policy 
imposed. To our understanding, paragr aph 36 is quite true in that re lated policies should not serve as 
non-tariff barrier, which under the above mentioned Ka va restriction, the policy is trade restrictive. 
 WT/TPR/M/244/Add.1 
Page 178  
 
 Fresh Ginger is another commodity that has a pos itive impact similar to that of Kava towards12: Food 
Security, Livelihood Security and Rural Developmen t to communities in the Central and Southern 
District. Ginger encountered a restriction with th e auspices of nematode that is also present in 
Australia. Studies on the subject suggest: presence  of pathogen in both country which can be 
controlled by appropriate husbandry practice. 
 
Taro like Kava and Ginger has significance to ru ral development, food security and livelihood 
security in Fiji and as noted faces undue uncertainty  and loss to marketing efforts as a result of 
stringent Biosecurity rules.     
Therefore, we would like to be briefed on Australia’s: 
(i)  Review strategy and or mechanism concerni ng policy restricting Kava and Ginger import,  
(ii) The overall direction or objective of Biosecurity increasing requirements, apart from FAO 
ISPM 2007 and 2010, to commodities of interest to the Pacific like Taro, which by trend 
Biosecurity Australia is moving towards zero tolerance, 
(iii) Consideration and implementation SPS Agreemen t Article 4, and process on implementation 
of Article 4.2 of the SPS Agreement, 
(iv) Provide detailed report in the use of Article 5.4 – 5.7 of the SPS agreement to impede the 
normal flow of trade in the said commodity, and 
(v) Overall position/perspective on all clause of Article 10 of the SPS Agreement. 
 Answer
 
 
(i) The importation of fresh ginger into Australia  is currently not permitted from any country, as 
the quarantine risks have not yet been assessed. However, Australia is now undertaking an import risk 
analysis (IRA) of the quarantine ri sks associated with ginger from Fiji. This was formally announced 
in August 2010. Under Australia’s regulated IRA process, a policy determination for fresh ginger 
from Fiji will be made within the regulated timeframe.  (ii) The Australian Government has set Australia ’s appropriate level of protection as being one 
that reduces the quarantine risks asso ciated with imported goods to a very low level, but not zero.  
 
The import risk analysis process assists the Austra lian Government in considering the level of 
quarantine risk that may be associated with the impor tation or proposed importation of animals, plants 
or other goods into Australia. If the risks are f ound to exceed the level of quarantine risk that is 
acceptable to Australia, risk management measures ar e proposed to reduce them to that level. If the 
quarantine risks cannot be reduced to an accep table level, trade will not be allowed. 
 
Australia is unaware of any recent changes incre asing requirements for Pacific commodities. There 
have been no changes to taro import requirements since 2006. However, a draft review of the import 
policy for taro was recently released for comments. The only recent changes to policy have led to the 
improvement of the import conditions for process ed products like taro chips, banana chips and 
breadfruit chips. 
 
(iii) As a party to the WTO Agreement on the App lication of Sanitary and Phytosanitary Measures 
(SPS Agreement), Australia fully complies with th e provisions of Article 4 on the recognition of 
equivalence. Australia considers requests for the recognition of equivalence on a case by case basis. 
Australia has also contributed positively to work undertaken on equivalence in the international 
standard setting bodies.   
 
                                                     
 
12 Ginger export contributes to an estimated $7m earning and rural livelihood of 280 farmers for an 
estimated 3000t a year.  WT/TPR/M/244/Add.1 
 Page 179 
 
 
  (iv) Australia fully complies with the prov isions of Article 5 of the SPS Agreement. 
 (v) Australia fully complies with the provisions of Article 10 of the SPS Agreement relating to 
special and differential treatment. Australia rec ognises the importance of special and differential 
treatment provisions for developing countries and supports efforts to strengthen those provisions.  
 
Australia considers that the most effective way to assi st developing countries to meet their obligations 
(and address their own needs) under the SPS Agre ement is through targeted but non-mandatory 
capacity building initiatives. Technical assistance pr ovided by Australia to developing countries 
between January 2008 and June 2009 can be found in document G/SPS/GEN/717/Add.2. 
 
The importation of Kava is restricted in order to address the negative health and social effects of excessive Kava consumption within some indigeno us communities in Australia. For further detail 
about the nature and objectives of the import restri ctions, please see Austra lia’s answer to Fiji’s 
previous question about Kava importation. 
 
 
INDONESIA 
 
 CHAPTER III TRADE POLICIES AND PRACTICES BY MEASURE  
(1) O
VERVIEW  
Import Prohibitions and Restrictions   
 
Question  
 
Page 31, Para 3 WT/TPR/S/244  Could Australia clarify why the "m odified adoption" of international 
standards remains at 38%? 
 Answer
 
 
38% of all Australian standards are either identical or  modified versions of international standards.  
However, many Australian standards are developed in  areas where there is no international standard.  
In the cases/sectors where there are existing international standards, 97% of corresponding Australian 
standards are either identical or modified versions of that international sta ndard (see paragraph 45 of 
Chapter III of Secretariat's Report). 
 
Government Procurement Agreement (GPA)  
 
Question  
 
Page 32, Para 4, Document WT/TPR/S/244  We note that Australia remains as an observer in the 
Government Procurement Agreement (GPA).  Could you explain the reasoning behind this policy and 
clarify whether Australia plans to beco me a participant in the near future?  
 Answer
 
 
In relation to the WTO plurilateral Government Procurement Agreement (GPA), Australia has not 
joined the existing agreement due to concerns about  the additional levels of regulation which would 
be required, potentially resulting in a less effici ent procurement system. Australia acknowledges that 
many of these concerns appear to have been addr essed in the provisionally agreed revised text, but 
will need to consider whether Australia’s existi ng arrangements would meet all requirements of the 
revised GPA.  WT/TPR/M/244/Add.1 
Page 180  
 
  
In terms of market access, Australia, like the ma jority of GPA members, maintains an open and non-
discriminatory procurement system, with only li mited exceptions. Australia has international 
procurement commitments via a number of its RTAs  and effectively extends to the goods, services 
and suppliers of all WTO members the same treatment it is obliged to extend to RTA partners such as 
the United States and Chile. 
 
Quantitative Restriction   
Question  
 
Page 32, Para 5, Document WT/TPR/S/244 Australia continues to apply an export control and 
quantitative restrictions policy to certain products and commodities. What are the reasons for this 
policy?      
Answer
 
 
Australia applies a limited number of export cont rols to ensure compliance with international 
commitments, including fulfilling importing country re quirements in relation to quality and safety.  
Further details on export-related me asures can be found at para 77,  page 59 of WT/TPR/S/244.   
 
CHAPTER III TRADE POLICIES AND PRACTICES BY MEASURE 
 (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(vii) Standards and other technical requirement  
 
Quarantine   
Question  
 Page 53, Para 56, Document WT/TPR/S/244  We are aware that Australia applies a conduct 
fumigation policy to exported coffee products coming into Australia through various companies.  Is 
the selection of these companies dependent on certai n requirements? If so, what requirements are 
these companies expected to fulfill?  Answer
 
 
Australia allows the importation of roasted coffe e beans and green coffee beans from all countries. 
Coffee beans that have been roasted do not require  any government certification and may only receive 
random inspection in Australia. Roasted coffee b eans are not subject to mandatory treatment.  
 Green coffee beans are permitted for further pro cessing in Australia. Green coffee beans require a 
Phytosanitary certificate and are subject to inspec tion in Australia. Treatment is not a mandatory 
requirement, however, if live insects or other biosecur ity risk material is found at inspection then an 
appropriate treatment will be required. If a fumiga tion treatment is required for biosecurity purposes, 
then the fumigation must be undertaken at a fac ility that is registered as a Quarantine Approved 
Premises with the Australian government. Quar antine Approved Premises must be able to 
demonstrate that they can secure the goods, treat the goods effectively, and maintain appropriate 
records. 
  WT/TPR/M/244/Add.1 
 Page 181 
 
 
  (vii) standards and other technical requirements (c) Labelling and packaging 
 
Question  
 
Page 54, para 59-60, Document WT/TPR/S/244  To what extent are the regulations governing 
product labeling and packaging applied to food and ot her products? Are they in line with Australia’s 
Consumer Law, enacted on 1 January 2011?   Answer
 
 
All food sold in Australia, whether imported or prod uced domestically, must meet the requirements of 
the Australia New Zealand Food Standards Code. The Code covers food safety, composition, 
labelling, agricultural and veterinary chemical residu es and contaminants. In regard to food labelling, 
the Code sets out requirements for ingredient labelling,  date marking, directions for use and storage, 
mandatory warnings, advisory statements, nutrition  information, legibility and country of origin 
labelling. The Code includes requirements for identif ication and tracing of food to facilitate retrieval 
of unsafe or unsuitable food from the market place.  The Code is given legal force in Australia through its adoption in state and territory food acts and the 
Imported Food Control Act 1992. Responsibility for compliance monitoring and enforcing the Code 
rests with the states and territories within Austra lia and with the Australian Quarantine and Inspection 
Service (AQIS) at the Australian border.  The Australian Consumer Law (ACL) is Schedule 2 to the Competition and Consumer Act 2010. The 
ACL is a national law which is mirrored in state and territory legislation. States and territories and the 
Australian Competition and Consumer Commission (A CCC) are responsible for enforcement. The 
ACL includes specific provisions to prevent false or misleading representations about services or 
goods, including food. False or misleading representati ons about the standard, quality, value, grade, 
composition, style, model or place of origin are prohi bited. In meeting the mandatory county of origin 
labelling requirements of the Code, manufacturers ma y choose to use the safe harbour defences in the 
ACL, which apply to all goods including food. The AC L includes provisions for the use of 'Grown in', 
'Made in' and 'Product of' claims. 
 For imported goods, the Commerce (Trade Descripti ons) Act 1905 (CTD Act) also applies. This 
legislation relates to customs controls and requir es certain imports, including foods, to bear a true 
description and a statement of the place of manufactu re or production. The CTD Act is enforced by 
the Australian Customs and Border Protection Service. 
 The above legislation does not provide for specifications around packaging, except that the Code requires that packaging is fit for its intended u se and is not likely to cause food contamination. 
 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(viii) Government Procurement  
 
Question  
 
Page 57, Para 67, Document WT/TPR/S/244  Australia has remained committed to meeting the 
Government Procurement target of sourcing at leas t 10% of purchases value from small or medium-
sized enterprises (SMEs). Could Aust ralia explain whether this target  is mandatory or voluntary?  
 WT/TPR/M/244/Add.1 
Page 182  
 
 Answer  
 
The 10% target referred to in the report is correct , though it is worth noting that no specific preference 
policies are required to achieve this level of  SME participation (see http://www.finance.gov.au/ 
publications/statistics-on-commonwealth-purchasing-cont racts/index. html). Further information on 
the procurement policies of the Australian States and Territories can be found at 
https://www.tenders.gov.au/?event=public.relatedlink.list   
 
(iii) Competition and Consumer policy 
 Trade Practice Act (TPA) exemption  
 
Question  
 Page 41, Para 102, Document WT/TPR/S/244  Could Australia explain how far the exemption on the 
implementation of the TPA reaches?  
 Answer
 
 
The Competition and Consumer Act 2010 (CCA) cove rs all business activities.  Exceptions to the 
competition law prohibitions are only made where the relevant conduct is specified in, and 
specifically authorised by legislation enacted  by the Commonwealth or State or Territory 
governments in accordance with the requ irements of section 51 of the CCA. 
 The Australian Competition and Consumer Comm ission's (ACCC) Annual Report lists current 
exceptions as at the end of each reporting year.  ACCC annual reports are available at: 
http://www.accc.gov.au/content/index.phtml/itemId/668577
. 
 
IV. TRADE POLICIES BY SECTOR (5) S
ERVICES  
(iv) Regional and bilateral agreements on services  
 
Question  
 Page 108, Para 63, Document WT/TPR/S/244  Given that Australia ha s numerous bilateral and 
regional economic arrangements; could Australia explain the difference between a bilateral and a 
FTA? 
 Answer
 
 
It is assumed that the question from Indonesia is ba sed on the distinction set out in the first sentence 
of paragraph 63, page 108, of the Secretariat re port between "regional trade agreements" and "FTAs", 
later referred to as "bilateral FTAs". Australia wo uld interpret the reference to "regional" trade 
agreements in this context as a reference to a multi- party or plurilateral trade agreement, as illustrated 
by Australia’s agreement with ASEAN and New Zealand – the Agreement Establishing the ASEAN-
Australia-New Zealand Free Trade Area, which as 12 Parties. This agreement can be distinguished 
from Australia’s bilateral FTAs, each of which cons ist of two Parties only – Australia and the other 
Party to the agreement.  
  WT/TPR/M/244/Add.1 
 Page 183 
 
 
  CHAPTER IV 
 (5) S
ERVICES  
(v) Financial Services 
 
Question  
 Page 109, para 64, Document WT/TPR/S/244  Could you please provide more information about the 
services sector in Australia, elaborating in particular  on the role of the major institutional groups and 
the way in which they function?  Answer
 
 
Australia's financial services sector is based on four main institutional groups:  
• Authorised deposit-taking institutions (ADIs), which include banks, building societies, and 
credit unions – whose primary role is credit intermediation, including taking deposits and 
mortgage lending.    
• Fund managers and insurers, including li fe and general insurance companies.  
• Superannuation funds and approve d deposit funds (ADFs).  
• non-ADI financial intermediaries, including mone y market corporations, finance companies, 
and securitization vehicles.  Non-ADIs undertake lending activities but are not permitted to 
take customer deposits. 
 
All ADIs, general and life insurance companies as well as superannuation funds including ADFs (but 
excluding self managed superannuation funds), are pr udentially regulated and supervised by the 
Australian Prudential Regulati on Authority (APRA).     
 Non-ADI financial intermediaries are not subject to prudential regulation, but are required to hold an 
Australian Financial Services Licence (AFSL) and ar e subject to the oversight of the Australian 
Securities and Investments Commission (ASIC), Australia’s market and financial services regulator.    
THAILAND
 
 
Report by the Secretariat (WT/TPR/S/244)   III. TRADE POLICIES AND PRACTICES BY MEASURE (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(viii) Government procurement  
 
Page 55, Paragraph 62   Questions
 
 
What are the list of infrastructure works that th e government trading enterprises (GTEs) dominate?  
 Regarding the domination of infrastructure works by GTEs, is there any exception for private 
competition?  Under what circumstances does the Australian government implement su ch specific policies to assist 
small and medium-size enterprises or indigenous Australians?  
 WT/TPR/M/244/Add.1 
Page 184  
 
 Do "indigenous Australians" in clude "indigenous Australian entities" i.e. private companies, 
partnerships, etc?  If so, how does the Au stralian government define such term(s)? 
 Answer
 
 The Australian Government (Central) does not main tain a list of 'infrastructure works that the 
government trading enterprises (GTEs) dominate'.  The paper referred to in the report of the 
secretariat was released by Infrastructure Australia  in relation to cross-jurisdictional governance of 
infrastructure delivery.  It does not deal  with trade policy or related measures. 
 
GTEs are not part of the governance framework for the Australian Government (Central).  Clause 5.2 
of the Commonwealth Procurement Guidelines (CPGs), December 2008 (http://www.finance.gov.au/publications/fmg-series/pr ocurement-guidelines/index.html) states that:  
 
The Australian Government procurement po licy framework is non-discriminatory. All 
potential suppliers should have the same opportunities to compete for government 
business and must, subject to these CPGs, be treated equitably based on their legal, 
commercial, technical and financial abilities. Procurement methods must not discriminate against potential suppliers due to their degree of foreign affiliation or ownership, location or size. The property or services on offer must be considered on 
the basis of their suitability for their in tended purpose and not on the basis of their 
origin.   
 
The policy includes no provisions relating to 'domination' nor to 'GTEs' or 'exception for private competition'.   
To ensure that SMEs
13 are able to engage in fair competition for Government business, officials 
undertaking procurement should ensure that procur ement methods do not unfairly discriminate against 
SMEs.  Agencies are encouraged to  ensure that procurement processes are readily communicated and 
accessible to SMEs and should not take action to de liberately exclude SMEs from participating in a 
procurement process.  Agencies are required to ensu re that SMEs have appropriate opportunities to 
compete for business considering, as appropriate in the context of value for money: 
 
• the benefits of doing business with competitive Australian or New Zealand SMEs when 
specifying requirements and evaluating value for money; 
• the capability and commitment to regional market s of SMEs in their local regions; and  
• supplier-base and competitive benefits of access for new market entrants. 
 The Australian Government is committed to Fina ncial Management and A ccountability (FMA) Act  
agencies sourcing at least 10% of their purchases by value from SMEs.  Other policies that may 
interact with the CPGs policy on SMEs incl ude the SME Participation Procurement Policy
14  and the 
Australian Industry Participation Policy, both of which are administered by the Department of 
Innovation, Industry, Science and Research. 15   
 
                                                      
13 An SME is an Australian or New Zealand firm with fewer than 200 full time equivalent employees. 
14 More information on this policy can be obtained from the Department of Innovation, Industry, 
Science and Research website - http://www.innovati on.gov.au, specifically: http://www.innovation.gov.au/ 
Industry/InformationandCommunicationsTechnologiesICT/Pages/Industrydevelopmentrequirementsformajorpro
curementsofICTproductsandservices.aspx. 
15 More information on this policy can be obtained from the Department of Innovation, Industry, 
Science and Research website - http://www.innovati on.gov.au, specifically: http://www.innovation.gov.au/ 
Section/Industry/Pages/AustralianIndustryParticipationAIP.aspx.  WT/TPR/M/244/Add.1 
 Page 185 
 
 
  Information on the SME Participation Procurement Policy can be found at 
http://www.innovation.gov.au/Industry/Informati onandCommunicationsTechnologies/Pages/Smalland
MediumEnterpriseparticipationprocurementpolicy.aspx.  Information on the Australian Industry Participation Policy can be found at http://www.innovation.gov.au/Industry/AustralianIndus tryParticipation/Pages/CGPAIPplans.aspx.  
Information on the Indigenous Opportunities Policy can be found at 
http://www.deewr.gov.au/Indigenous/Employmen t/Pages/IndigOpportunitiesPolicy.aspx.  
 The definitions used in the Indigenous Opportuni ties Policy can be found in the policy guidelines at 
http://www.deewr.gov.au/Indigenous/Employm ent/Documents/IOPGuidelines.pdf .  
 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(iii) State trading  Page 60, Paragraph 79  
 
Questions
 
 
How do Australian state-trading enterprises, especia lly the Rice Marketing Boar d, and public entities 
mentioned under the paragraph help promote the competitiveness of Australian farmers?  
 
What are the roles and responsibilities of the Rice Ma rketing Board? What is the structure of the 
Board and how does it make decisions? What are the reasons for mainta ining the Board whereas 
other state-trading enterprises have been terminated?     
Does Australia plan to eliminate export monopoly power of the Rice Marketing Board? If so, when? 
 Please provide more information regarding the trading system for rice in Australia. 
 Answer
 
 The Rice Marketing Board for the State of New S outh Wales (RMB NSW) is the sole entity that 
continues to fall within the scope of the WTO de finition of a State Trading Enterprise. The RMB 
NSW helps promote the competitiveness of Australia n farmers by ensuring that rice grown in the 
State of New South Wales is marketed, particularly through the operation of an export "single desk". 
The RMB NSW’s primary function is to obtain the b est possible monetary return to rice growers 
consistent with the maintenance of orderly mark eting and operates under the authority of and in 
accordance with the Marketing of Primary Products Act, 1983, the Public Finance and Audit Act, 
1983 and the Annual Reports (Statutory Bodies) Act, 1984.  The Australian market is open to competition from imports and significant quantities of rice are 
imported.  About 99% of total rice grown in Austra lia occurs in the State of New South Wales.  
Effective from 1 July 2006, the domestic marketi ng arrangements for rice grown in New South Wales 
were deregulated and a system of multiple author ised buyer permits for sales within Australia was 
introduced.  Entities wanting to participate in the domestic market for rice grown in New South Wales 
must apply to the RMB NSW to become an Authorised  Buyer.  Authorised Buyers are able to buy and 
sell rice grown in New South Wales on the domestic market in Australia. 
 
For information on the NSW Government review of the RMB NSW, please refer to the following 
document: http://www.dpi.nsw.gov.au/__data/ assets/pdf_file/0008/373778/report-review-nsw-rice-
marketing-act-1983.pdf. Further information about th e RMB NSW is also available in Australia’s 
WTO STE notification. 
 WT/TPR/M/244/Add.1 
Page 186  
 
 Australia will abide by any final Doha Round Agr eement, including the abolition of export monopoly 
power. 
 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  
(v) Intellectual property rights  
 
Page 77, Paragraph 116, and Footnote 177   Question
 
 
Since Thailand is currently considering acceding to  the Hague Agreement, we would appreciate if 
Australia could share her experien ce in making her decision with regard to accession to the said 
Agreement, including important factor s influencing the consideration.   
 Answer
 
 
Regarding accession to the Geneva Act of the Hague Ag reement, there are a number of factors that 
Australia is considering.   In comparison to other IP offices, Australians ha ve had lower usage of the designs system and an 
accurate assessment of the numbers of Australians w ho might file international applications under the 
Hague Agreement is difficult. Some of the factors be ing considered relate to  what amendments would 
be required to our legislation, our IT systems, wo rk management processes to comply with the treaty, 
affects on revenue based on the cost structure of  the Hague Agreement, and possible accession to 
related agreements, including the Locarno Agreement on classification. 
 
IV. TRADE POLICIES BY SECTOR  
(2) A
GRICULTURE , LIVESTOCK , FORESTRY , AND FISHERIES  
(ii) Main developments  
(b) Domestic support measures   
 
Page 88, Paragraphs 17 and 18  
 
Question  
 Could Australia explain in detail how the subsidy programmes are operated for each eligible product 
and the impacts on Australian individual farmers and the Australian agriculture sector as a whole? 
 
Answer
 
 
Australia provides a wide range of budgetary assist ance to the agriculture sector. A significant number 
of programs are ongoing. We refer Thailand to Au stralia’s annual domestic support notifications for 
further information.  
 
Thailand’s question relates to paragraphs 17 and 18 in section IV(2)(ii)(b) of the Secretariat’s report 
for Australia, which refers to the Productivity Commission’s Trade and Assistance Review 2008-09.  
That review contains estimates of some Australia n Government assistance to industry.  However, 
context is required when interpreting the Pr oductivity Commission estimates, because budgetary 
assistance to particular industries does not necessar ily indicate that such assistance came from support 
programs that were exclusively for those indus tries.  For example, the Productivity Commission 
review states that ‘At the industry level, estimated  budgetary assistance was highest for grain, sheep & 
beef cattle farming  ($923 million), mainly in the form of drought assistance  payments and rural-
specific R&D support.’  Drought assistance is availabl e to all farmers in drought-declared areas and  WT/TPR/M/244/Add.1 
 Page 187 
 
 
  the largest recipients of drought assistance are those producers who are most affected by drought.  In 
2007-08, those industries most affected by the dr ought were the mixed crop and livestock industry 
and the beef industry, which is why there were hi gher budgetary assistance figures for the grain, sheep 
and beef cattle farming industries.  
Australia’s support programs are expl ained in more detail in our an nual domestic support notifications 
to the Committee on Agriculture.  Th e results of Australia’s deregula tion and reform of the dairy and 
sugar sectors, in terms of the impacts on individual farmers and the Australian agriculture sector as a whole, are explained in section IV(2) (iii) of the Secretariat’s report (pp. 90-92).  (iii) Selected subsectors 
(c) Dairy 
 
Page 91, Paragraph 23  
Question
 
 
Could Australia provide more detail on the situation of dairy industry after the termination of Dairy 
Industry Adjustment Package (DIAP), especially on competition and pricing,  and also explain about 
the recommendations of the Senat e Economics Reference Committee? 
 
Answer  
 
The dairy industry is one of Australia’s major rura l industries with a farmgate value of production of 
$3.4 billion in 2009/10. Following the beef and wheat i ndustries, the dairy industry is Australia’s third 
most valuable rural industry. 40,000 people are di rectly employed on dairy farms and in dairy 
manufacturing plants.  
 The status of the dairy industry has not altered si nce the termination of the Dairy Industry Adjustment 
Package, insofar as trends that were then eviden t have continued. The num ber of dairy farms in 
Australia has continued to fall (in 2009/10, there we re 7 511 registered dairy farms, compared to 
7 924 in 2008/09 and 12 896 in 1999/2000) but milk production has remained far more stable than the 
decline in dairy farm numbers would indicate. In  2009/10, approximately 9.0 million litres of milk 
was produced compared to 9.4 million litres in 2008/09.   In 2009/10 there was a slight reduction in milk yiel d per cow, contrary to the long-term trend of 
steady increases documented over decades. The outlook for 2010/11 is for national milk production at 
about the level of the year before. Whereas seas onal conditions for most producers in south-eastern 
Australia (the most important dairying regions) are highly favourable, widespread flooding in some 
parts Queensland and northern New South Wales, cy clone damage in other parts of Queensland and 
some flooding and even bushfires in Victoria in  the first half of the 2010/11 season will affect 
production in these regions.  
In response to concerns over reduc tions in farm gate prices in the more concentrated production 
pattern, the Senate Economics Reference Committee la unched an inquiry into competition and pricing 
in the Australian dairy industry; its May 2010 report addressed per ceived deficiencies in national 
competition policy, the role of the ACCC, and the provisions of the TPA. The Government is considering the recommendations made in the M ilking it for all it is worth Senate Economics 
References Committee report.  
  WT/TPR/M/244/Add.1 
Page 188  
 
 COLOMBIA  
 
AGRICULTURE 
 
Question  
 
On page 87 it is stated that rice is the sole ite m subject to single-desk arrangements exempt from 
competition policy provisions.  Could Australia give its reasons for applying this type of policy?  
Could it inform us of the measures adopted a nd applied?  What are the domestic regulations 
governing this exemption from competition for rice? 
 
Answer  
 
The Rice Marketing Board for the State of New S outh Wales (RMB NSW) is the sole entity that 
continues to fall within the scope of the WTO de finition of a State Trading Enterprise. The RMB 
NSW helps promote the competitiveness of Australia n farmers by ensuring that rice grown in the 
State of New South Wales is marketed, particularly through the operation of an export "single desk". 
The RMB NSW’s primary function is to obtain the b est possible monetary return to rice growers 
consistent with the maintenance of orderly mark eting and operates under the authority of and in 
accordance with the Marketing of Primary Products Act, 1983, the Public Finance and Audit Act, 
1983 and the Annual Reports (Statutory Bodies) Act, 1984. 
 
The Australian market is open to competition from imports and significant quantities of rice are 
imported.  About 99% of total rice grown in Austra lia occurs in the State of New South Wales.  
Effective from 1 July 2006, the domestic marketi ng arrangements for rice grown in New South Wales 
were deregulated and a system of multiple author ised buyer permits for sales within Australia was 
introduced.  Entities wanting to participate in the domestic market for rice grown in New South Wales 
must apply to the RMB NSW to become an Authorised  Buyer.  Authorised Buyers are able to buy and 
sell rice grown in New South Wales on the domestic market in Australia.  For information on the NSW Government review of the RMB NSW, please refer to the following 
document: http://www.dpi.nsw.gov.au/__data/ assets/pdf_file/0008/373778/report-review-nsw-rice-
marketing-act-1983.pdf. Further information about th e RMB NSW is also available in Australia’s 
WTO STE notification.  Australia will abide by any final Doha Round Agr eement, including the abolition of export monopoly 
power.  Question
 
 
In this connection, it is stated on page 92 that  in 2009 the Senate Ec onomics Refere nce Committee 
launched an inquiry into competition and pricing in the Australian dairy industry;  its May 2010 report addressed perceived deficiencies in national competition policy, the role of the ACCC, and the 
provisions of the Trade Practices Act.  It is also stated that in November 2010, the authorities were 
considering the Committee's recomme ndations.  Colombia would be interested in knowing what 
progress has been made in this respect. 
 
Answer
 
 The Australian Government is continuing to consid er the recommendations made in the Milking it for 
all it is worth Senate Economi cs References Committee report. 
  WT/TPR/M/244/Add.1 
 Page 189 
 
 
  Question  
 On page 88 it is stated that in 2008/2009, gr ain, sheep, and beef cattle farming, as well as 
horticulture and fruit growing were among the activiti es benefiting from the highest effective rates of 
combined assistance.  Furthermore, it is stated in footnote 24 that: 
 
"Assistance for grain, sheep, and beef ca ttle farming was delivered almost entirely 
through non-industry-specific measures, and in particular to those set for exceptional 
circumstances (interest rate subsidy, relief payments)"  
According to the report, this type of assistance is  delivered mainly in the form of budgetary outlays, 
budget financed programmes are used mainly for st ructural adjustment, and expenditure on research 
and development is co-financed by funds collected through industry levies, supplemented by funding 
from the Commonwealth budget.  We would ask Aust ralia to give more detailed information on these 
taxes and the origin of the res ources of the fund referred to. 
 
Answer
 
 
Levies and Charges are initiated at the request of an industry. The industry representative body 
identifies the need for a levy or charge to respond to a problem or opportunity that will benefit its industry. If this requires collective industry funding, the organisation puts a levy proposal to its 
members and if approved a levy or charge is put in place. 
 Industry members pay primary industry levies and charges to fund research and development (R&D), marketing and promotion, plant and animal health programs and residue testing activities that benefit 
industry. In many cases, and within certain prescrib ed limits, the Australian Government matches the 
R&D component of levies on a dollar for dollar basis. 
 
Question
 
 The report also states that off-road diesel fuel, u sed in agricultural production, qualifies for rebates 
on excise taxes, as part of a scheme of rebates for di esel fuel used in a number of industry sectors, 
including primary production activities.  We would be  grateful if Australia would enlarge on this 
subsidy and the rules governing it.  Answer
 
 Fuel tax credits are available to eligible businesses to  provide a credit for the fu el tax included in the 
price of fuel used in business activities, that is, fuel  used in machinery, plant, and equipment, and for 
heavy vehicles.    Fuel (including diesel and petrol) is taxed at $0.38143  per litre.  The current ex cise rates for fuel have 
been in effect since March 2001. 
 
Heavy vehicles (those with a gross vehicle mass gr eater than 4.5 tonne) travelling on a public road 
used in carrying on a business are entitled to the full  fuel tax credit rate of $0.38143 per litre minus a 
road user charge.  From 1 July 2010, the road us er charge is $0.226 per litre, so the rate that 
businesses can claim for heavy vehicles is $0.15543 per litre. 
 
Question
 
 On page 90 it is stated that as from 2007, the authorities have been investing $A 12.9 billion in a 
ten-year Water for the Future initia tive to secure the long-term water supply to both rural and urban WT/TPR/M/244/Add.1 
Page 190  
 
 areas;  several programmes under th is initiative relate to the use of irrigation water in agriculture, 
including water use efficiency on fa rms, purchase of water entitlement s from farmers to preserve the 
environment, and grants to exit from  irrigation-based rural producti on.  We would appreciate more 
detailed information on the programme relating to this last objective.  
Answer
 
 
On 20 September 2008, the Australian Government  announced a $57.1 million Small Block Irrigators 
Exit Grant Package designed to assist small block irri gators, particularly horti cultural producers, in 
the Murray-Darling Basin. Through this program, eligible small block irrigators in the Murray-
Darling Basin affected by drought and climate cha nge could get help to leave irrigation through the 
package while remaining on their farms.   The Department of Sustainability, Environment,  Water, Population and Communities (SEWPaC) is 
responsible for the administration of the Small Block Irrigators Exit Gran t Package. The package 
included an exit grant of up to $150,000 to eligible  irrigators who agreed to sell all their water 
entitlements to the Australian Government and exit i rrigated farming for at least five years (farmers 
were still permitted to remain on their farm).   Applications for the Small Block Irrigators Exit Grant Package closed on 30 June 2009 and the 
package has been completed. All eligible appli cants have received grant payments through this 
package. Please see the SEWPaC website for more  information on programs to complement 
Australia’s policy on the effective and efficient use of water resources at the following address, 
http://www.environment.gov.au/water/index.html  
 
FISHERIES 
 
Question
 
 On page 93 it is stated that the Securing our Fi shing Future (SOFF) package delivered 144 projects 
for this sector.  We would be grateful if the Australian Government would provide information on 
SOFF's activities and results in the area of the buyback of fishing concessions. 
 
Answer
 
 
On 16 December 2005 the then Australian Governme nt Minister for Fisheries, Forestry and 
Conservation issued a formal Ministerial Direction to AFMA to implement a range of measures to end 
overfishing, limit the risk of future overfishing and manage the broader environmental impacts of 
fishing. The Ministerial Direction identified the need for urgent action to halt overfishing and to 
recover overfished stocks rapidly to sustainable levels.  On 23 November 2005, the Australian Govern ment announced the AUD 220 million Securing our 
Fishing Future package. The pack age was intended to address factors affecting the sustainability of 
the Commonwealth’s fish stocks and the profitability of the fishing industry. These factors included 
overfishing, excess fishing capacity and economic and market pressures. Its primary component was a 
structural adjustment package, worth AUD 199 million. The Government also announced new management arrangements to halt overfishing and give overfished stocks a chance to recover. 
 
The one-off structural adjustment package was to: 
• Buy-back up to AUD 149 million in fishing c oncessions (Business Exit Assistance) within 
and across Australian Commonwealth managed fisheries;  WT/TPR/M/244/Add.1 
 Page 191 
 
 
  • Provide AUD 50 million in grant assistance to individuals, businesses and companies that had 
been affected by the impacts of the buy-b ack and/or by the new management measures; 
 The package also provided AUD 21 million to AFMA (over three years) to offset its expected 
reduction in levies received from fishing concession holders and to improve its science, compliance 
and data collection. 
 As noted in the WTO Secretariat’s report, this program ceased in June 2010. 
 
ADDITIONAL QUESTIONS FROM COLOMBIA
 
 
WT/TPR/S/244  Summary of the Secretariat’s report: 
 
(2) T
RADE POLICY FRAMEWORK  
 
Paragraph 5 of the report indicates that… "Austra lia's trade policy framewo rk continues to be 
characterized by an unusually high degree of transparency.  This involves rigorous economic analysis undertaken by government institutions and indepe ndent advisory bodies (notably the Productivity 
Commission), from which policy-makers benefit…."  1. Could Australia indicate which are these public institutions and independent advisory 
bodies?  
 
Answer
 
 The Australian Government receives independent research and advice on trade policy issues from the 
Productivity Commission and the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). More information about the work of the Productivity Commission and ABARES can be found at their respective website addresses: 
• http://pc.gov.au/ 
• http://www.abares.gov.au. 
 
In addition, an independent review of Australia ’s export policies and programs was released in 2008. 
More information on the Mortimer  Review can be found on the De partment of Foreign Affairs 
website at the address below.   http://www.dfat.gov.au/trade/export_review/index.html  2. Could Australia explain the role played by  these public institutions and independent advisory 
bodies in Australia’s trade policy. 
 
Answer
  
 The Productivity Commission is required under its Act to report annually on industry assistance and 
its effects on the economy. In meeting this re quirement, the Commission publishes annually a Trade 
& Assistance Review in which it reports the Commission's latest quantitative estimates of Australian Government assistance to industry. It also identif ies recent developments in assistance for various 
industries and sectors of the economy and looks at sel ected developments in international trade policy. 
The Trade & Assistance Reviews can be f ound at: http://www.pc.gov.au/annualreports/trade-
assistance. WT/TPR/M/244/Add.1 
Page 192  
 
  
In addition to reporting on assistance annually, the Commission also undertakes inquiries and studies on trade matters according to terms of reference provided by Government. Recent studies include: 
  
• Bilateral and Regional Trade Agreements at  http://www.pc.gov.au/projects/study/trade-
agreements/report 
• Restrictions on the Parallel Importati on of Books at http://www.pc.gov.au/ 
projects/study/books/report 
• Modelling the Economy-wide Effects of Future TCF Assistance at 
http://www.pc.gov.au/projects/study/textile-clothing-footwear/finalreport 
• Modelling the Economy-wide Effects of Future Automotive Assistance at 
http://www.pc.gov.au/projects/study/automodelling/finalreport 
  
The reports are prepared by Commision sta ff under the guidance of commissioners whose 
independence from government is established under the Commission's governing Act. Each report is 
provided to government as an input to policy deve lopment. The reports are also published to inform 
the wider community of the Commission's analysis and recommendations. The reports are finalised after the receipt of evidence from interested parties (provided through hearings, round tables, work 
shops and written submissions) and the Comm ission's own research and economic modelling. 
 
3. Could Australia explain the structure and workings of the Productivity Commission? 
 
Paragraph 9 of the summary of the Secretariat’s report indicates that… "The tariff structure was simplified and now involves seven rates (four ad valorem,  one specific, one compound, and 
one alternate).  Most tariff rates (99.7%) are ad valorem , a feature that contributes to the transparency 
of the tariff.  By contrast, non- ad valorem  rates tend to conceal relatively high tariff rates, particularly 
those on used vehicles, which seem to be rarely applied"...  
Answer
 
 
The Productivity Commission is the Australian G overnment's independent research and advisory 
body on a range of economic, social and environmenta l issues affecting the welfare of Australians. Its 
role is to help governments make better policies in the long term interest of the Australian community. 
 As its name implies, the Commission's focus is on ways of achieving a more productive economy - 
the key to higher living standards. As an advisory  body, its influence depends on the power of its 
arguments and the efficacy of its public processes.  Further information about the Productivity Commissi on's role, organisational structure, history and 
principles and policy guidelines is available on the Commission's website - http://www.pc.gov.au/about-us  
 
The annual reports of the Commission can be fo und at: http://www.pc.gov.au/annualreports. Each 
report provides details of the operation of  the Commission over the reporting year.  
 
4. Could Australia advise which are the tariff ra tes that are considered high and in addition to 
used vehicles, in what other products are they applied?   WT/TPR/M/244/Add.1 
 Page 193 
 
 
  Answer  
 
Apart from the used motor vehicle tariffs, Australia applies non- ad valorem  tariffs to only nine 
additional tariff lines - including fruit juices and cheese.  The estimated ad valorem  equivalent levels 
(AVEs) range from 5-27%.   
 
In paragraph 14 of the summary of the Secretar iat’s report indicates that …. "Export assistance, 
consisting of direct grants (e.g. through Export Ma rket Development Grants) and tax concessions (e.g. 
Tradex), has been maintained and revised.  In addition to local-content requirements termed as 
"Australian activity", export finance is, inter alia,  conditional upon "national interest" criteria…" 
 
5. Could Australia explain who defines and to w hat do the mentioned "national interest" criteria 
refer?  Answer 
 
 
The amount of export finance EFIC will consider for a contract reflects the value of the Australian 
content in that contract plus any foreign content that  EFIC also deems eligible for finance.   However, 
where the Minister for Trade considers the transaction to  be in the national interest and, for example, a 
particular transaction is too large for EFIC’s balance sheet, EFIC may provide export finance, 
consistently with our inte rnational trade obligations. 
 
Paragraph 15 of the summary of the Secretariat’s report indicates that … "Support for domestic production and trade has been provided through tax and non-tax incentives, with steady, albeit declining, emphasis on R&D spending as well as regula tory restrictions on competition.  Some of the 
industry-specific programmes (e.g. dairy, automo tive, pharmaceuticals) we re ended or amended 
during the period under review.  The special Luxury Ca r Tax, which is levied at the same rate on 
domestic and foreign cars, but nonetheless seems to fall disproportionately on imports, was raised 
from 25% to 33%"…  
6. Could Australia indicate what do these incentives consist of? 
 
Answer 
 
 
The incentives for Australian producers are detailed in Australia's notification to the SCM Committee 
(G/SCM/N/186/AUS) and related questions and answers  II. TRADE POLICY REGIME:  GENERAL FRAMEWORK AND OBJECTIVES  (8) F
OREIGN INVESTMENT REGIME  
 
Paragraph 36 of the Secretariat’s report indicat es that … "Under its Foreign Acquisitions and 
Takeovers Act 1975, accompanying regulations, and fo reign investment policy, Australia maintained 
its screening process to ensure that foreign investme nt is not contrary to the "national interest";  
foreign investment restrictions are maintained in  certain sensitive sectors, such as airports, banking, 
residential real estate, telecommunications, and transport (civil aviation and shipping)16, and possibly, 
                                                      
16 The Airports Act 1996 stipulates a 49% foreign ownership limit for airports, a 5% airline ownership 
limit, and cross-ownership limits between Sydney airport (together with Sydney West) and Melbourne, 
Brisbane, and Perth airports.  The Shipping Registration Act 1981 requires that, for a ship to be registered in 
Australia, it must be majority Australian-owned (i.e. owned by an Australian citizen, a body corporate established by or under law of the Commonwealth or of a State or Territory of Australia), unless the ship is 
designated as chartered by an Australian operator (The Treasury, 2009a). WT/TPR/M/244/Add.1 
Page 194  
 
 more recently, natural resources.17  The screening processes, undertaken by the Foreign Investment 
Review Board (FIRB) affect only major investment applications, defined as any purchase by a foreign entity, and any associates, of more than 15% of an  Australian company, or by several foreign entities 
of more than 40% in aggregate.  Investors must notify the Government of their proposal, prior to commencement, if it exceeds a set of monetary thresholds.
18  Large foreign investment projects are 
screened in accordance with a 'nationa l interest' test, which is not defined under the Act;  in effect, it 
is determined by the Government based on a range of factors19, and is interpreted on a case-by-case 
basis.  The authorities consider that Australia's  mode 3 commitments under the GATS are not subject 
to the national interest test.20 
 8. ", it is determined by the Government based on a range of factors
21, and is interpreted on a 
case-by-case basis".  If it is determined on a ca se by case basis, is there any kind of "proportionality 
test" in the Australian legislation developed to det ermine the impact of a large investment project on 
the "national interest"? 
 
Answer  
 
There is no proportionality test in the Australian le gislation.  The Government reviews all foreign 
investment proposals against the national interest test  case-by-case.  We prefer this flexible approach 
to hard and fast rules.  Rigid laws that prohibi t a class of investments too often also stop valuable 
investments.  Australia’s case by-case approach maximises investment flows while protecting 
Australia's national interest. 
 Australia's Foreign Investment Policy (the Policy), which was released in an 'easy-to-read' version in 
June 2010, provides guidance on what factors are typically considered in assessing whether a proposal is contrary to the national interest.  The nationa l interest concerns are determined on a case-by-case 
basis.  The relative importance of factors can vary depending on the nature of the proposed 
                                                     
 
17 In 2009, a senior official of the Foreign Investment Review Board (FIRB) made public statements 
concerning guidelines for foreign investment in the Australian resources sector, thus providing further insight 
into FIRB’s decision-making process in this regard.  Re portedly, the offici al indicated that the Government's 
preference was for foreign investments in major Australian resource companies to be less than 15% of their capital, for investment in greenfield projects to be be low 50%, and for the listed Australian companies to remain 
listed.  However, FIRB's published policy documents do not refer expressly to the informal guidelines discussed 
by this senior official and so its level of support for his comments remain unclear.  In any event, it has been rare for FIRB to reject outright applications for approval of investments in the resource sector (see Crean et al). 
18 These thresholds include:  acquisitions of substantial interests in an Australian business where the 
value of its gross assets, or the proposal values it, in excess of $A 100 million;  proposals to establish new businesses involving a total investment of $A 10 million or more;  takeovers of offshore companies whose 
Australian subsidiaries or gross assets exceed $A 200 million and represent less than 50% of global assets 
(Novak, 2008;  and The Treasury, 2009a). 
19 In its assessment of foreign investment proposals the Government typically considers:  national 
security;  competition;  other government policies (including tax);  impact on the economy and the community;  
and the character of the inve stor (The Treasury, 2010a). 
20 The authorities indicated that Australia's schedul e contains no requirements for economic means 
tests, joint ventures or to limit foreign exchange or  profit repatriation.  Moreov er, there are no horizontal 
limitations on foreign equity participation or on the type of commercial presence an investor must use.  
Australia's GATS mode 3 commitments reflect current market access and draw trading partners' attention to the 
existence of the policy framework.  In addition, the GA TS commitments state that "[…] proposals for foreign 
interests to invest in the services identified in the Schedule […] are approved unless national interest 
considerations arise". 
21 In its assessment of foreign investment proposals the Government typically considers:  national 
security;  competition;  other government policies (including tax);  impact on the economy and the community;  
and the character of the inve stor (The Treasury, 2010a).  WT/TPR/M/244/Add.1 
 Page 195 
 
 
  investment.  The Government typically consid ers the following factors when assessing foreign 
investment proposals, which apply irrespective of the sector: 
• national security - the extent to which investme nts affect Australia’s ability to protect its 
strategic and security interests; 
• competition - whether a proposed investment may result in an investor gaining control 
over market pricing and production of a good or service in Australia and the impact that 
it has on the make-up of the relevant global industry, particularly where concentration 
could lead to distortions to competitive market outcomes; 
• other Australian Government policies (includi ng tax) - investments must be consistent 
with the Government's objectives in relation to matters such as environmental impact.  
The impact of an investment on Austra lian tax revenues is also considered; 
• the impact on the economy and the community –  
o For acquisitions in existing businesses, the Government considers the impact of 
any plans to restructure an Australian enterprise following an acquisition, the 
nature of the funding of the acquisition, th e level of Australian participation in the 
enterprise remaining post-acquisition and th e interests of employees, creditors and 
other stakeholders; 
o For acquisitions of interests in projects, the Government considers the extent to 
which the investor will develop the proj ect and ensure a fair return for the 
Australian people.  
o Investments should also be consistent with  the Government’s aim of ensuring that 
Australia remains a reliable supplier to  all customers in the future;  and 
• the character of the investor - the Government  considers the extent to which the investor 
operates on a transparent commercial basis and is subject to adequate and transparent 
regulation and supervision.  The Governme nt also considers the corporate governance 
practices of foreign investors. 
In the case of foreign governments and their relate d entities, the Governments also considers if the 
investment is commercial in nature or if the inv estor may be pursuing broader political or strategic 
objectives that may be contrary to  Australia’s national interest. 
 The approach and factors that are taken into acc ount in the case of natural resource proposals are the 
same as for other sectors.   
 
9. What is understood in Australia by a large investment project?  
 Answer
 
 
Under Australia’s foreign investment review framework, which is made up of the Foreign 
Acquisitions and Takeovers Act 1975,  the Foreign Acquisitions and Takeovers Regulations 1989 and 
Australia's Foreign Investment Policy, substan tial foreign investment proposals above certain 
monetary thresholds are subject to review. 
 
For business proposals, the types of business acquisitions which need to be notified include: 
• acquisitions of an interest of 15% or more in  an Australian business or corporation that is 
valued above $231 million (indexed annually); WT/TPR/M/244/Add.1 
Page 196  
 
 • acquisitions of an interest in an offshore comp any whose Australian subsidiaries or gross assets 
are valued above $231 million;  
o $1,005 million for US investors in non-sensitive sectors for the above two dot points; 
 Privately owned US investors enjoy a higher screening threshold than other 
foreign investors because of commitm ents made in the Australia-US FTA 
(AUSFTA).  This higher screening threshol d will also be extended to privately 
owned New Zealand investors as part of the Investment Protocol to ANZCERTA.   
• direct investments in Australia by foreign gove rnments and their related entities, regardless of 
the value; 
• proposals by foreign governments and their related entities to establish new businesses in 
Australia;  
• investments of 5% or more in the media sector, regardless of the value;  and 
• certain acquisitions of interests in Australian land.  
III. TRADE POLICIES AND PRACTICES BY MEASURES 
(2) M EASURES THAT DIRECTLY AFFECT IMPORTS  
 
(1) General Overview 
 Paragraph 5 of the Secretariat’s report indicates th at… "State involvement in the economy has been 
maintained where benefits can be captured from pr omoting and/or regulating export trade in certain 
agricultural goods (e.g. wheat, barley, rice, sugar).  Nevertheless, the character of state involvement 
has changed in recent years with all statutory a rrangements terminated (i.e. for grains, wheat, and 
sugar) except for the NSW-state based Rice Marketing Board, which is currently the sole entity with 
export monopoly rights"… 
 
10. Could Australia advise the reason why is  government involvement and export monopoly 
maintained in the case of rice? 
 
Answer
 
 
The Rice Marketing Board for the State of New South Wales (RMB NSW) is the sole Australian entity that continues to fall within the scope of th e WTO definition of a State Trading Enterprise. The 
RMB NSW’s primary function is to obtain the best possible monetary return to rice growers consistent with the maintenance of orderly mark eting and operates under the authority of and in 
accordance with the Marketing of Primary Products Act, 1983, the Public Finance and Audit Act, 
1983 and the Annual Reports (Statutory Bodies) Act, 1984.  The Australian market is open to competition from imports and significant quantities of rice are 
imported. Effective from 1 July 2006, the domestic  marketing arrangements for rice grown in New 
South Wales were deregulated and a system of mu ltiple authorised buyer permits for sales within 
Australia was introduced.  Entities wanting to partic ipate in the domestic market for rice grown in 
New South Wales must apply to the RMB NSW to beco me an Authorised Buyer.  Authorised Buyers 
are able to buy and sell rice grown in New Sout h Wales on the domestic market in Australia. 
 For information on the recent NSW Government review of the RMB NSW, please refer to the 
following document: http://www.dpi.nsw.gov.au/_ _data/assets/pdf_file/0008/373778/report-review-
nsw-rice-marketing-act-1983.pdf. Further informa tion about the RMB NSW is also available in 
Australia’s WTO STE notification.  WT/TPR/M/244/Add.1 
 Page 197 
 
 
   
Australia remains committed to reaching a successful outcome in the WTO Doha Round negotiations, 
including the draft provisions on state trading enterprises and export monopoly powers.  Paragraph 6 of the Secretariat’s report indicates that … "The effective rate of combined assistance
22 
(i.e. tariff, budgetary, agricultural pricing and/or  regulatory assistance) remains relatively high for 
TCF, PMVs, grain, sheep and beef cattle farmi ng, and horticulture and fruit growing activities;  
according to the authorities, support to primary pro duction depends on the effects of climate.  In 
addition to certain commodity export activities, the state is involved in the economy through government trading enterprises (GTEs) providing servi ces in key infrastructure sectors (e.g. water, 
electricity, ports, rail, urban transport), though not always on a fully commercial basis"… 
 
11. Could Australia provide an explanation on the application of these assistance mechanisms? 
 Answer
 
 
Australia provides a range of assistance to the agri culture sector.  The majority of Australia’s support 
programs are Green Box programs which have no, or at most minimal, trade-distorting effects or 
effects on production.  The Productivity Commission's Trad e and Assistance Review 2008-09 contains estimates of some 
Australian Government assistance to industry.  Ho wever, context is required when interpreting the 
Productivity Commission estimates, because budgetary assistance to particular industries does not 
necessarily indicate that such assist ance came from support programs that were exclusively for those 
industries.  For example, the Productivity Commis sion review states that ‘At the industry level, 
estimated budgetary assistance was highest fo r grain, sheep & beef cattle farming  ($923 million), 
mainly in the form of drought assistance  payments and rural-specific R&D support.’  Drought 
assistance is available to all farmers in drought-decl ared areas and the largest recipients of drought 
assistance are those producers who are most affected by drought.  In 2007-08, those industries most affected by the drought were the mixed crop and li vestock industry and the beef industry, which is 
why there were higher budgetary assistance figures for the grain, sheep and beef cattle farming 
industries. 
 
Australia’s support programs are expl ained in more detail in our an nual domestic support notifications 
to the Committee on Agriculture.  Th e results of Australia’s deregula tion and reform of the dairy and 
sugar sectors, in terms of the impacts on individual farmers and the Australian agriculture sector as a whole, are explained in section IV(2) (iii) of the Secretariat’s report (pp. 90-92). 
 
As the section on industry specific developments (page 100-106) highlights, Australian assistance to 
the manufacturing sector (including TCF, PMV sub sectors) has increasingly been directed towards 
encouraging business innovation a strengthening in ternational competitiveness in an increasingly 
open trading environment.  An Innovation Agenda for the 21
st Century, introduced in May 2009, 
provides an ambitious and comprehensive policy framework for the development of Australia's 
innovation system over ten years.  This is against the backdrop of legislated tariff reductions in both 
automobile and textile, clothing and footwear sect ors that will ensure no tariff in excess of 5% by 
2015.  Further detail on the nature of specific assist ance measures is available in the industry specific 
section of the TPR.  
                                                     
 
22 This Chapter refers to several indicators, including effective rate of combined assistance, used by the 
Productivity Commission (Chapter II) for assessing support provided to different economic activities.  For 
details on the definition, methodology, and scope of  these indicators see Productivity Commission (2010b). WT/TPR/M/244/Add.1 
Page 198  
 
 (i) Registration and documentation requirements  
Page 39 of the Secretariat’s report indicates that …" An Integrated Cargo System (ICS), replacing all previous cargo declaration systems, has been in place since 2005.  The ICS is a single window for the 
vast majority of international trade-related tr ansactions and provides an interface for industry to 
connect electronically for coordinate d customs and quarantine clearance"... 
 
12. Could [Australia] share with Members how the ICS works and what have been the benefits, in 
terms of trade facilitation, from the implementati on of this system in the import and export process. 
 
Answer
 
 
The Integrated Cargo System (ICS) is used by virt ually all participants in the supply chain including a 
number of other government agencies. All cargo is ente red in to the ICS for goods entering, leaving or 
transhipping/transiting the Australian border. Access fo r external clients to connect to the ICS is done 
by using either Customs Interactive (via the Inte rnet) or EDI software (specifically developed by 
software providers). Clients submit their cargo or goods documents throug h the Customs Connect 
Facility, which is a secure electronic gateway, wh ich in turn is passed through to the ICS for 
validation. On receipt of the document, the ICS pe rforms framework validation to ensure that the 
mandatory and conditional fields are populated in the correct format. Mandatory fields must be 
populated and the conditional fields may need to be populated depending on the information entered 
in the mandatory fields. Any errors identified at th is stage will result in the rejection of the document. 
If the validation is successful the ICS will then atte mpt to link the goods document to any associated 
cargo reports. Linking is dependent on each associat ed report (Impending Arrival, Cargo Report, 
Import Declaration) quoting common attributes or linking fields. The ICS also recognises business 
conditions that are of interest to border agencies,  but require no immediate attention and these are 
stored in an exceptions log. All documents are pa ssed to the Cargo Risk Assessment sub system for 
risk assessment where it will run against current al erts and profiles. On completion, the ICS will 
generate and transmit a status advice message to th e client and some other parties, depending on the 
circumstances. All reports are stored and available for viewing Customs and other authorised parties. 
 The ICS performance indicators for the 2009/10 year were: 
  
• Availability = 98.92% 
• Response message transmitted within 5 minutes = 97.95% 
  The ICS has the capacity to interface with up to 12 ex ternal systems. Currently the ICS interfaces with 
our Quarantine Service, Taxation Office, Bureau of Statistics, Dept of Industry, Science & Resources, 
Defence and Financial Institutions. 
  
The ICS offers substantial benefits over the legacy sy stems it replaces. It is integrated, well structured, 
it is based on high integrity data architecture and is  highly configurable. In these respects, the ICS is 
among the better examples of Customs systems av ailable among the develope d nations. We believe 
that the integrated nature of the system and its modern architecture represents a sound base on which 
Customs can base further improvements. Our Time Release Studies also demonstrate that the earlier 
documents are lodged in the ICS, the quicker they will obtain clearance and release. Other factors, 
such as the vehicle booking arrangements and port congestion contribute to the when the actual goods are being delivered into the community. Our l ast TRS conducted for 2009 data reports that the 
average time from arrival to availability is 0. 9 days for air cargo and 1.2 days for sea cargo. 
  WT/TPR/M/244/Add.1 
 Page 199 
 
 
   
 
13. What are the commercial transactions that  can be done through this single window? 
 
Answer  
 
The ICS facilitates clearance for the vast majority  of international trade transactions. 99.4% of 
Imports (over 3 million import declarations in 20 09) and 99.7% of Exports (over 1.2 million export 
declarations in 2009). (0.6% of imports and 0.3%  of Exports are lodged manually with Customs and 
Border Protection  and then input by us into the ICS).  
A very small proportion of cargo including unaccompanied personal effects and import (0.6%) and 
export (0.3%) declarations is lodged manually.  The ICS is used by virtually all participants in the supply chain including a number of other 
government agencies. 
 
The international trading community, (and a range of  Government agencies), interact with the ICS 
through the Customs Connect Facility.  The CCF provides a gateway for communication with the ICS for industry members such as importers and exporters and other parties in the supply chain. 
 
There are two ways of interacting with the ICS: 1) Customs Interactive (CI) – directly through the web; 2) Electronic Data Interchange (ED I) – through third party business software.  
 Commercial products are available for brokerage a nd forwarding administrations, which incorporate 
ICS requirements and data standards to enable direct communication with ICS. 
 
•A u s t r a l i a n  Bureau of Statistics (ABS)
•D e p a r t m e n t  of Industry Science and Resources  (DISR)
•D e p a r t m e n t  of Defence (DoD)
•A u s t r a l i a n  Quarantine  and Inspection  Service (AQIS)
•A u s t r a l i a n  Taxation Office (ATO)Cargo Reporting  and the Integrated  Cargo System (ICS) Cargo Reporting  and the Integrated  Cargo System (ICS)
ICS
Cargo reporting  
documentation  
lodged through ICS 
(e.g. Arrival reports, 
Cargo reports, 
import/export  
declarations)Carriers
Cargo Handlers
e.g. Forwarders
Stevedores
Licensed Depots
Warehouses
Service Providers
e.g.
Brokers
Forwarders
Owners e.g.
Importers/
Exporters
Information 
Collected -
CRE & EXAMS
Cargo status 
Provided to 
Industry
Cargo Risk 
AssessmentCustoms Connect Facility
Permit Issuing AgenciesATOATO AQISAQIS DoDDoD DISRDISR ABSABS
Permits ProvidedProvide Status
9Cargo 
Released
8Cargo 
Intervention
Electronic  Data 
Interchange  (EDI)Customs 
Interactive  (CI)
(Refer and acquit risks, provide statistics)
Financial Systems / Financial Institutions  for 
border revenue managementWT/TPR/M/244/Add.1 
Page 200  
 
  
(ii) Tariffs 
(d) Tariff Rate Quotas 
 Paragraph 19 of the Secretariat’s report indicates that… "Tariff-rate quotas (TRQs) involving specific 
rates apply to most types of cheese and curd impor ts;  the TRQ on unmanufactured tobacco has never 
been implemented as the customs duty rate for th is item is set at zero.  The out-of-quota (above 
11,500 tonnes) and in-quota rates for cheese remain  at $A 1,220 per tonne and $A 96 per tonne, 
respectively.  Since 1995, quota allocation has been based on historical import performance within the 
quota for the previous 23 months (excluding quota transfers);  the quota may be accorded upon 
application to the Customs.  New importers are able  to obtain an allocation only on transfer from an 
existing holder of a tariff quota share.  Between 2003/04 and 2005/06, tariff quota utilization varied 
from 92.4% to 97.4% but from 2006/07 to 2008/09 its f ill in ratio exceeded 99%;  this is indicative of 
strong demand for cheese and curd as well as minimal impediments to accessing the quota.  14. Could Australia indicate in relation to what  criteria are the mentioned quotas applied and the 
requirements that applicants  need to comply with.  
 
Answer
 
 
The Australian cheese and curd quota is allocated in July each year to importers in direct proportion to 
their past imports using quota during the previous 23 month period.  The quota allocation is valid for 
12 months. Importers may apply for quota by transfer from a current quota holder (either directly or through quota brokers). The names of quota holders are published in the Comm onwealth of Australia 
Tariff Concessions Gazette. An application to r eceive quota by transfer must be lodged with the 
Australian Customs Service. 
 
(f) Duty concession schemes  Tariff Concessions  Paragraph 22 (24 in the English version) indicates that … "Minor administrative changes (e.g. 
guidelines and application form) have been made to the TCS since 2007 to, inter alia,  better reflect 
the obligations of the applicants;  the TCS legi slation and policy objectives remain unchanged.  In 
2009, it was agreed to pursue a range of additional re forms including tighter guidelines for the TCS.  
Australia's TCS is available for imports for which substitutable goods were not produced in Australia 
at the time a Tariff Concession Order (TCO) applica tion was lodged.  Products that do not qualify for 
a TCO include foodstuffs, most textiles and clothing,  certain motor vehicles and parts, jewellery, and 
furniture, as local industry produces these goods.  A local  manufacturer may object to the granting of 
a TCO and may request revocation of an existing TCO.  A total of 431 TCOs were revoked between 
January 2007 and June 2010 upon proof that the Australian-made goods concerned could be 
substituted for imported goods;  in  2009/10, the most common types of goods covered by revoked 
TCOs were steel products, plastics products, electrical , shelters and pre-fabricated buildings.  In 
June 2010, there were 13,500 active TCOs. 
 
15. What are the "necessary conditions" that w ould allow a product to qualify for a TCO? 
 
Answer
 
 Part XVA of the Customs Act 1901 provides the le gislative framework for the Tariff Concession 
System.   WT/TPR/M/244/Add.1 
 Page 201 
 
 
  Under section 269F of the Customs Act a person ma y apply, on an approved form, for a TCO for 
particular goods.  The applicant has an obliga tion under section 269FA to demonstrate to the 
satisfaction of the Chief Executive Officer of Cust oms that they have reasonable grounds for asserting 
that the application meets the core criteria.  
Section 269C provides that: 
 
…a TCO application is taken to meet the core criteria if, on the day on which the application was lodged, no substitutable goo ds were produced in Australia in the 
ordinary course of business. 
 
16. Can TCOs be requested for other pr oducts not mentioned in this paragraph? 
 Answer
 
 Yes, a person can seek a TCO for a broad range of goods. 
 
17. What is the renewal period for a TCO or for how long does it remain valid? 
 
Answer
 
 Once granted, a TCO is available for anyone to use and it exists until revoked according to the 
provisions of the Customs Act.  There are approxima tely 13,500 active TCOs, some which date back 
25 years.  
18. What is the process for seeking a TCO and where can electronic information relevant to TCO 
be obtained to ensure access to up- to-date information on this system? 
 
Answer
 
 
A person must lodge an application for a TCO with  Customs and Border Protection in an Approved 
Form (B443), which is available on the website at w ww.customs.gov.au  In addition, a list of current 
TCOs is available on the working tariff page on the same website. 
 
(v) Import prohibitions, restrictions and licensing 
 
Paragraph 32 (33 in the English version) of th e Secretariat’s report indicates that … "Since 
12 January 2009, a Post Import Permission Scheme  has allowed permission to be granted after 
importation, at the discretion of Customs, in resp ect of certain classes of controlled goods including 
specific drugs, chemicals, consumer  items, firearms and knives, asb estos products, and items bearing 
Australian national symbols".  
19. Could Australia share its experience and the results from the implementation of this Post 
Import Permission Scheme?  
Answer
 
 
The Customs (Prohibited Import) Regulations 19 56 controls the import of certain goods into 
Australia. Goods may be either prohibited absolute ly, or are restricted goods, meaning they can only 
be imported with the relevant impor t permission or licence, or if certain conditions or requirements 
are met.   WT/TPR/M/244/Add.1 
Page 202  
 
 For a variety of reasons, it is not always possible to obtain a licence or permission to import goods 
before their importation. Customs typically seizes a large quantity of prohibited and restricted goods 
from importers who are genuinely unaware of the need  to obtain permission to import, or who did not 
have the opportunity to obtain a permit prior to importing the goods.  
With effect from 12 January 2009 a legal basis exis ts for importers to obtain permits for certain 
classes of goods, after the goods have arrived in Australia.   The PIP Scheme operates under Subdivision GC of Division 1 of Part XII of the Customs Act 1901 
(the Act). 
 
When goods arrive in Australia without the appropria te permission, two criteria must be met in order 
for the goods to be eligible for the PIP Scheme:  
• The goods must be among those prescribed in Regulation 170AA of the Customs Regulations 
1926;  and 
• The goods must not be concealed.  
 More information, including the facilitation improveme nts that have resulted from the implementation 
of the Post Import Permission Scheme, can be found in the Australian Customs Notice via the 
following website. http://www.customs.gov.au/webdata/resources/notices/acn0903.pdf 
 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(iv) Export assistance 
(a) EMDG Scheme 
 
Paragraph 80 of the Secretariat’s report indicates that … "The EMDG scheme remains Australia's 
main financial assistance programme targeting mainly small but also medium-sized enterprises across 
all sectors of the economy.  Grants partially reim burse expenditure (up to 50% above a threshold) on 
specific export promotion activities to any overseas market except New Zealand, Iraq, and the 
Democratic People's Republic of Korea.  Cha nges were made to the EMDG scheme affecting 
expenditure incurred from 1 July 2008 and 1 July 2010.  Key changes in 2008 included:  increasing 
the maximum grant by $A 50,000 to $A 200,000;  ra ising the maximum turnove r limit of recipients 
from $A 30 million to $A 50 million;  reducing the minimum expenditure threshold by $A 5,000 to 
$A 10,000;  allowing costs of patenting products  overseas to be eligible for EMDG support;  making 
the scheme more accessible to ser vices exporters;  allowing state,  territory, and regional economic 
development and industry bodies to access the sc heme;  and introducing an EMDG payments 
assessment measure tied to two alternative test s (export performance test, Australian Net Benefit 
Requirements) for applicants who ha ve already received two grants"… 
 
20. Could Australia provide information in rel ation to what constitutes refundable expenditure? 
 
Answer  
 
The Export Market Development Gran ts (EMDG) Scheme assists with  the development of an export 
culture and creating greater innovation within Aust ralian business. Applicants may claim up to 50% 
of expenditure on the following services: overseas re presentatives, marketing consultants, marketing 
visits, communications, free samples, trade fairs, se minars, in-store promoti ons, promotional literature 
& advertising, overseas buyers and re gistration and/or insurance of e ligible intellectual property.   
Members may find detailed information on the EMDG on Austrade's website, at 
http://www.austrade.gov.au/".   WT/TPR/M/244/Add.1 
 Page 203 
 
 
  (IV) TRADE POLICY BY SECTOR 
(5) S ERVICES  
(ii) Internal Assistance 
 Paragraph 61 of the Secretariat’s report establis hes that … "In 2008-09, the services sector was 
estimated to have received around 45% of estimated budgetary assistance available to all sectors of the economy, up from around 27% in 2007/08, and e quivalent to 0.28% of GDP;  between 2006/07 
and 2008/09, total budgetary assistance to the services industry increased by 43.9%, to almost 
$A 3.5 billion, delivered mainly through tax expe nditures (Table IV.3).  These increases were due 
mainly to the introduction of various small bus iness tax concessions, a large proportion of which 
primarily benefit the services sector.  In 2008/09, indu stry-specific assistance accounted for 13.2% of 
total budgetary assistance to the services industry.  Property and business services, and finance and 
insurance were the second and third largest r ecipient industries of budgetary assistance 
($A 744 million and $A 613 million, respectively) av ailable to all sectors of the economy;  assistance 
to these activities was delivered mainly through small business capital gains tax concession measures, 
the offshore banking unit tax concession programme , and R&D tax concessions.  Arrangements that 
may have assistance implications, but are not part of these estimates include:  the effects of local-
content arrangements as they affect, inter alia,  broadcasting (section (vi)(b), and Chapter III);  
regulatory restrictions on comp etition (e.g. pharmacy, air services, importation of books, media, 
broadcasting);  and government programmes affecting mainly the provision of health, education, and 
community services". 
 While the report mentions an increase in budgetary  assistance due to establishment of various small 
business tax concessions, it does not explain the moti vation for providing grater budgetary assistance 
to the services sector.  
 
21. Colombia would appreciate a more detailed exp lanation of the reasons  that motivated the 
increase in budgetary assistance.  
 
Answer
 
 
The increase in the number of tax expenditures main ly reflects the reporting of the goods and services 
tax concessions (which were not reported prior to the 2008 Tax Expenditure Statement) and increases 
in the number of tax expenditures reported, particularly for business.    
22. Colombia wishes to understand the details of Australia’s domestic assistance policy for the 
services sector, particularly if it is targeted at sectors that meet certain criteria, the kind of domestic 
assistance that are granted and if they are on a permanent or temporary basis? 
 
Answer
 
 
The main business income related tax incentives include the:   
• short term small business and general business tax break.  In the case of small businesses, an 
additional 50% bonus deduction could be claimed for eligible assets costing $1,000 or more  
purchased between 13 December 2008 and 31 Decemb er 2009 and installed before the end of 
2010. The tax break was a significant temporar y measure as part of the Australian 
Government response to the effects of the Global Financial Crisis that provided small 
businesses with an incentive to invest in new capital items, such as computer hardware and 
business vehicles, and to undertake capital improvements to existing machinery and equipment;  WT/TPR/M/244/Add.1 
Page 204  
 
 • R&D Tax Concession.  The R&D Tax Concession en ables eligible companies to claim a tax 
deduction of up to 125% of qualifying expe nditure on R&D activities when lodging their 
annual tax returns. In addition, under specifi c circumstances, companies may claim a 175% 
premium deduction for additional investment in R&D and small companies may elect to 
claim the concession as an offset, enab ling them to 'cash out' tax losses; 
• proposed R&D tax incentive (also referred to  as the R&D Tax Credit).  The R&D tax 
incentive provides a refundable tax offset (enabli ng the 'cashing out' of tax losses) of 45% for 
qualifying expenditure on R&D activities of R& D entities with aggregated turnover of less 
than $20 million, and a non-refundable tax off set of 40% for other R&D entities.  The R&D 
tax incentive is proposed to replace the R&D Ta x Concession from 1 July 2010, although this 
timing has not yet been confirmed by Parliament. The R&D tax incentive is intended to be revenue neutral over its first four years of operation.  As such, it has not contributed to any 
broader increases in budgetary assistance; 
• accelerated and simplified depreciation for sm all business (as from 2007, small businesses 
may choose to use a simplified capital allowan ces regime for depreciating assets. They can 
write off immediately purchases costing less than $1,000 and depreciate assets that cost 
$1,000 or more at accelerated rat es under a pooled arrangement);  and  
• small business CGT concession measures (the small business 15-year exemption, the small 
business active asset 50% reduction, the small business retirement exemption, and the small 
business roll over).  
 These tax concessions are available to all eligible  businesses and are not specifically targeted at 
services businesses.  
In terms of eligibility for the small business tax c oncessions, broadly, an entity can satisfy the $2 
million aggregated turnover if the total annual turnover for the entity, its affiliates and entities 
connected with it is not more than $2 million.  A small business entity is able to utilise the small 
business tax concessions provided it also satisfi es any additional criteria that apply to each 
concession.   
The R&D Tax Concession and the proposed R&D tax incentive is an ongoing broad based, 
entitlement based program, offering support for eligib le R&D of all kinds in all industry sectors, 
including the services sector, throughout Australia.  
(iv) Regional and bilateral agreements on services 
 
Paragraph 63 of the Secretariat’s report indicates that … "Australia's regional trade agreements 
(RTAs) with ASEAN (and New Zealand), and FTAs with Chile, New Zealand, Singapore, Thailand, 
and the United States include provisions on services (Chapter II(6)(ii)).  Some FTAs use negative-list approach to scheduling services commitments (e.g. th e FTA with the United States), while others use 
positive-list modalities (e.g. FTA with Thailand).  While the levels of commitments undertaken by 
Australia vary from one FTA to the other, they often tend to go significantly beyond GATS 
commitments.  These bilateral FTAs commitments are not applied on an MFN basis.  Australia 
undertook, especially in its agreement with the United States, commitments that go beyond not only 
its GATS commitments, but also its revised services offe r, for example in relation to review of foreign 
investments, and in such sectors as business, audiovis ual, financial, tourism, and transport services.  
Despite the budgetary assistance provided to the sector , Australia's bilateral FTAs exclude subsidies 
from their application, consistent with the absen ce of specific disciplines on services subsidies in the 
GATS.  Australia maintains services-related mutual recognition arrangements (MRAs), including one with the U.S. Securities and Exchange Commi ssion (SEC) on U.S. and Australian securities 
regulation;  an MRA was concluded in September 2008 between relevant Australian and U.S. (Texan) 
professional bodies on engineering services".  WT/TPR/M/244/Add.1 
 Page 205 
 
 
   
This paragraph indicates that “While the levels of commitments undertaken by Australia vary from 
one FTA to the other, they often tend to go si gnificantly beyond GATS commitments. These bilateral 
FTAs commitments are not applied on an MFN basis.  23. Colombia would like to know whether or not this last phrase means that a FTA will generate 
an obligation to grant to the other party, on the bas is of a subsequent FTA with a third party, the 
same treatment accorded to that third party. The above taking into account that under bilateral trade 
agreements there is always an obligation to gran t MFN treatment on future commitments unless 
explicitly established to the contrary or simply exc luded from the scope of application of the MFN 
clause?  
Answer
 
 
Australia notes that Colombia's question regarding the underlined phrase appears to relate to the 
application of MFN provisions within relevant bilate ral FTAs.  However, our understanding is that the 
sentence in question is not meant to refer to the appl ication of MFN provisions, rather it is meant to 
confirm that any commitments made by Australia in  bilateral FTAs are not automatically extended to 
other trading partners.  In relation to the MRA concluded between the rele vant engineering professional bodies in Australia 
and Texas: 
 
24. Colombia would appreciate an indication of wh ether this means that the MRA applies across 
Australia and, in the case of the United States, stat e level of Texas, that is, that an engineer from 
Texas benefits from the MRA at national level (A ustralia) and not only in one particular region? 
 
Answer
 
 
Australia notes that the Australian Government is no t a Party to the MRA in question.  However we 
understand, based on information provided by the In stitution of Engineers Australia as part of the 
process of notifying the MRA to the WTO, that Colomb ia is correct in its interpretation of how the 
MRA applies. 
  
VIET NAM
 
 
Question  
 "Does Australia have any plans to review the I RA (Import Risk Analysis) process announced by the 
Australian Government in October 2006 such as s horten timeframe for completing an IRA (shortening 
the time, relaxing the formalities and investigating procedures for products fr om animals and plants 
imported to Australia), regulated steps in an IRA?" 
 
Answer
 
 
Australia’s Import Risk Analysis process has ke y steps which are regulated under the Quarantine 
Regulations 2000. It is done where there is no exis ting biosecurity policy relating to the circumstances 
of the proposed import.  
 The process is subject to public scrutiny and incl udes formal stakeholder consultation, regulated 
timeframes (with either a standard 24 month or an expanded 30 month dura tion, depending on the WT/TPR/M/244/Add.1 
Page 206  
 
 complexity of the science and nature of the bi osecurity risks) and independent scientific and 
administrative reviews.  
Once an Import Risk Analysis has been completed and before a commodity may be imported, a policy 
determination based on the risk mitigation measures proposed in the risk analysis must be made by 
the Director of Animal and Plant Quarantine–a posi tion held by the Secretary of the Department of 
Agriculture, Fisheries and Forestry. 
 
  WT/TPR/M/244/Add.1 
 Page 207 
 
 
  REPLIES TO FOLLOW-UP QUESTIONS 
 
EU 
 
Follow-up comment:   
1) In its answer to question 7 from the European  Union (p. 167), Australia notes that it "has not 
rejected a foreign investment proposal in any business sector since 2001", a statement repeated in 
answers to questions from China (p. 37, p. 56) , Chinese Taipei (p. 114), Singapore (p. 131), 
Hong Kong China (p. 161) and Fiji (p. 198). 
 In this context, the EU notes that Australia's Treasurer has announced his intention (communicated on 
5 April) to reject the proposed merger between the Singapore Exchange and the Australian Securities 
Exchange due to it not being in Australia's nationa l interest, based on the unanimous advice of the 
Foreign Investment Review Board. An upda te on this issue would be appreciated.  
 Follow-up and additional questions 
 
 Follow up of questions 27 to 29 (on Biosecurity):
  
 
Could Australia elaborate on whether it intends to revise its close to zero approach in its current 
import risk evaluation and adhere to the principle of  applying the least trade restrictive measures, as 
it was envisaged by the Beale Review of the Australian quarantine system in 2008 ?  
 Answer
 
 
The Australian Government continues to evalua te its approach to risk management. The 
recommendations made in the Beale Review are being considered within this process.  Australia’s Appropriate Level of Protection (ALOP) remains the same.   
 
Follow up of questions 27 to 29 (on Import Risk Analysis):
  
 
Could Australia provide information about any proposals/initiatives it has to establish a more 
transparent prioritisation procedu re for third country applications and how it intends to speed up the 
evaluations in order to reduce the substantive backlog of applications?   
To this effect, does Australia have any intention of adopting international standards, guidelines and 
recommendations and would it consider these as useful  tools toward the implementation of less trade 
disruptive solutions while preserving an high level of  sanitary and phytosanitary protection, rather 
than running individual risk evaluations for each country/commodity application?  Answer
 
 
Australia was one of the first countries to publish its  import risk analysis process. Australia’s Import 
Market Access Advisory Group (IMAAG) was establishe d to enhance the transparency of Australia’s 
handling of all import proposals, including those fro m third countries. The process is transparent and 
takes into consideration the priorities of applicant countries, as well as a range of other considerations 
outlined in the IMAAG’s terms of reference. Aust ralia, like most other countries, progresses requests 
based on information available from the applicant co untry and available resources to consider those 
requests. The operation of the IMAAG is documen ted in the Import Risk Analysis Handbook  2011 .  
The IMAAG’s terms of reference, membership and advice to Biosecurity Australia are published on 
the web at: http://www.daff.gov.au/about/org-s tructure/corp-policy/import_market_access_ 
advisory_group. WT/TPR/M/244/Add.1 
Page 208  
 
  
The decision to run individual risk assessments for each country/commodity application is determined 
on a case by case basis. Australia determines if a risk analysis will be conducted as an import risk 
analysis.  An IRA will be undertaken when;  
• Relevant risk management measur es have not been established or  
• relevant risk management measures for a sim ilar good and pest/disease combination do exist, 
but the likelihood and/or consequences of entry,  establishment or spread of pests or diseases 
could differ significantly from those previously assessed. 
 A risk analysis which does not meet these criteria w ill be undertaken as a non-regulated analysis of 
existing policy. 
 
Australia considers requests from individual countr ies, prioritises them and allocates available 
resources.  To combine requests w ould create unnecessary delays due to the amount of information to 
be considered and the variations in pest and di sease status that exist between individual countries and 
different parts of the world.  
 
 
UNITED STATES  
 
"We appreciate Mr. McCormick’s opening statemen t on Tuesday regarding Australia's "prudent 
approach to sanitary and phytosanitary regulations " and that the government has "one of the most 
transparent import risk analysis processes in the wo rld".  And the United States thanks Australia for 
providing the relevant websites in its response to  our question regarding new market access for 
foreign-origin agricultural products. In my delega tions statement on Tuesday, however, we noted that 
"we are aware of only one example of a completed IRA that has enabled new market access for 
foreign-origin agricultural products since the new arrangements were put in force."  It would be 
helpful if the Australian delegation could name the additional IRAs that have been completed that 
have enabled new market access for fo reign-origin agricultural products." 
 
Answer  
 
On average, Australia receives approximately 5 to 10 market access requests annually. Australia has 
8 Import Risk Analyses (IRAs) currently in progress. Australia has completed 13 IRAs over the last 5 years.   
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