WORLD TRADE  
ORGANIZATION  WT/TPR/M/244 
6 May 2011 
 (11-2356) 
Trade Policy Review Body 
5 and 7 April 2011  
 
 
 
TRADE POLICY REVIEW 
 
AUSTRALIA 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Mario Matus (Chile) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF AUSTRALIA 4 
III. STATEMENT BY THE DISCUSSANT 7 
IV. STATEMENTS BY MEMBERS 10 V. REPLIES BY THE REPRESENTATIVE OF AUSTRALIA AND  
 ADDITIONAL COMMENTS 34 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 39 
 
Note:   Advance written questions by WTO Memb ers and the replies provided by Australia are 
reproduced in document WT/TPR/M/244/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/244 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The sixth Trade Policy Review of Australia w as held on 5 and 7 April 2011.  The Chairperson 
H.E. Mr. Mario Matus (Chile) welcomed the delegation of Australia, headed by 
Mr. Hamish McCormick, First Assistant Secretary, Department of Foreign Affairs and Trade, and the discussant, H.E. Mr. Kwok Fook Seng (Singapore).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by Australia was contained in document WT/TPR/G/244 and that of the WTO Secretariat in WT/TPR/S/244. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegation of Australia:  Mexico;  India;  China;  the 
United States;  Brazil;  Switzerland;  Costa Rica;  Re public of Korea;  Argentina;  Turkey;  Chinese 
Taipei;  ASEAN;  Singapore;  Chile;  Japan;  Cana da;  Hong, Kong, China;  the European Union;  
Pakistan;  and Fiji. 
4. The following delegations submitted written qu estions after the two-week deadline:  
Indonesia, Thailand, Colombia and Viet Nam.   
5. The Chairperson noted that he had considered  the reports prepared by Australia and the 
Secretariat.  He said that the Trade Policy Review  of Australia provided an opportunity for discussing 
certain systemic matters of major importance to all Members' policy makers.  These matters included:  Australia's exemplary institutionalization of transp arency (including wide use of independent cost-
benefit analysis to evaluate trade measures, internal  regulations, infrastructure, etc.);  transparency's 
role in Australia as a catalyst for unilateral reforms,  including trade liberalization, that have greatly 
increased market flexibility and improved economic performance (e.g. growth in GDP and, until 
recently, multi-factor productivity); the doubts rai sed recently by Australia's independent policy 
advisory body (the Productivity Commission) over the actual benefits of the preferential trade 
agreements that Australia has been negotiatin g, as compared to unilateral and multilateral 
liberalization;  and the progress being made by th e federal government in ensuring that the trade-
related policies and practices of Australia's separate states and territories are consistent with the 
federal government's policy of openness to  international trade and competition. 
6. The Chairperson saw with satisfaction that  during the period under review (2007-2011) 
Australia, one of the most open economies in th e world, had successfully weathered the global 
financial crisis without any backsliding on trade liber alization or action to influence the value of its 
currency.  As the economy's multi-factor productiv ity growth, a key indicator of international 
competitiveness, had slowed down in recent years, he assumed that many Members wished to know 
how Australia intended to address structural reforms,  including trade liberalization in certain sensitive 
sectors, government procurement, competition policy, and pr ivatization.  It could also be of interest of 
Members to discuss the cost-benef it of Australia's allegedly strict SPS regulations as well as the 
uniform implementation of similar SPS and other polic y requirements across all States.  Finally, it 
may be important to learn more about action taken so far and plans for reviewing trade policy as an 
indivisible part of overall economic reform. WT/TPR/M/244 
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  II. OPENING STATEMENT BY THE RE PRESENTATIVE OF AUSTRALIA 
7. Australia welcomes this sixth Trade Policy Re view by the WTO and continues to strongly 
support the review process as a way of enhancing transparency and confidence in the multilateral 
trading system.  We have distributed this morning answers to most of the questions which have been 
submitted and the thoughtfulness of many of the questions which you have posed underlines the value 
of this process.  We will do our best to respond in  an equally thoughtful an d thorough manner to the 
questions you put to us today. 
8. Australia's pursuit of open trade and economic se ttings, domestically and globally - for more 
than a quarter of a century - has delivered unprece dented and strong economic and trade growth for 
Australia. In 2009-10, the total value of Aust ralia's trade (exports plus imports) was over 
A$511 billion;  Australia's exports  were around A$254 billion, with more than A$11,000 in goods and 
services exported for every Australian man, woman and child. 
9. Since the 1980s, trade liberalisation has boosted Australia's GDP by between 2.5% and 3.5%, 
raising the average Australian family income by  between A$2,700 and A$3,900 per annum.  These 
gains came not only from exporting more, but from being able to buy imported goods and services 
more cheaply than they could be produced in Austra lia.  Our Trade Minister is very clear about the 
impact of trade on Australia.  He has said "Australian consumers have voted with their purses and 
wallets in favour of imports that are less expe nsive than domestically produced items. And less 
expensive imports that are inputs into Australia n made goods and services, destined for local and 
global markets, help boost the competitiveness of those industries ."  More than 2 million Australian 
jobs (one in five) are related to  exports or imports.  The Australia n economy has been one of the best 
performing in the developed world, especially during the global financial crisis. Since 1991 the 
economy has experienced real growth, averaging 3.5% per annum on a calendar year basis. 
10. The economy is expected to continue to grow  in 2010-11 and 2011-12, although recent events 
will take a substantial toll in the short term.  Th e combined cost to the Australian economy of floods 
and cyclone will be around an estimated A$9 billion with  the vast majority of that being felt in the 
resources and agriculture sectors.  However, the r esumption of economic activity and reconstruction is 
expected to add about a quarter of a percenta ge point to real GDP growth in 2011-12. 
11. As Australia's second largest trading partner, the events in Japan will also impact on the 
Australian economy.  Preliminary estimates s uggest export earnings will decline by around 
A$2 billion in 2010-11.  This could subtract less than 0.25% from GDP growth this financial year, 
and comes on top of the half a percentage point impact from the Australian floods and cyclone.  
12. Australia has been able to weather the global financial crisis while remaining committed to 
open markets.  In our view, this vindicates Aust ralia's strong embrace of free trade and our 
commitment to further reducing barriers around the world.  The WTO Secretariat Report highlights 
Australia's continuing process of trade liberalisation as  "an integral part of the structural reforms that 
have contributed to Austra lia's impressive economic performance".  It also refers to  "Australia's sound 
macroeconomic policies, past structural reforms and greatly improved terms of trade".  We have 
worked hard to enhance the competitiveness of our own economy through a thorough process of domestic reform and trade liberalisation. 
13. Our trade regime is transparent and designed to  build greater engagement with the global 
economy. The costs and benefits of public polic ies are subject to regular scrutiny and debate, 
including by the independent Productivity Commission.   Our tariffs are already generally low and 
tariffs in our automotive and textile, clothing and footwear sectors have been further liberalised 
through unilateral cuts in tariffs.  Our tariffs on imported vehicles were reduced from 10% to 5% on 1 
January 2010.  Tariffs on all textile, clothing, and footwear products were also reduced to 5% on 1  WT/TPR/M/244 
 Page 5 
 
 
  January 2010 – except for tariffs on apparel and certa in finished textiles which were reduced to 10% 
and will be reduced to 5% in 2015. 
14. Australia has some of the most open services sect ors, and one of the most highly transparent 
investment regimes, in the world.  We maintain  an open government procurement system underpinned 
by the principles of non-discrimination and transpar ency where, as a general rule, all suppliers are 
given the same opportunities to compete for governme nt business, regardless of their country of 
origin.  Australia's prudent approach to sanitary and phytosanitary regulations reflects both our unique 
biosecurity status and a strong commitment to our  rights and obligations under the SPS Agreement, 
including to science-based decision making.  We have one of the most transparent import risk analysis 
processes in the world. 
15. We recognise that continued economic growth will require further reform at home and 
additional efforts to build new markets abroad.  Au stralia's Minister for Trade is currently conducting 
a strategic review of Australia's trade agenda.  Th e main aim is to strengthen policy coherence across 
the Government's trade negotiating and economic re form agendas.  The review will be released 
publicly in coming months. 
16. Since the last WTO Review Australia has acted to improve productivity and enhance 
competitiveness. We have made investments in infrast ructure - in freight and export infrastructure, in 
the national road network, in health, in hospita ls and in telecommunications (via the National 
Broadband Network).  We have take n action to drive competitive and efficient infrastructure markets 
and lower regulatory costs for infrastructure devel opment.  We are delivering education reform by 
improving transparency and the quality of all forms of education.  We have made substantial progress 
in moving towards a seamless national economy by removing many regulatory obstacles to private business. 
17. Given how vital trade is to Australia we place a high priority on a strong and effective WTO.  
The stable and effective rules-based multilateral trading system provided by the WTO and the GATT 
for more than 60 years has underpinned the si gnificant global economic growth and development 
experienced in the post war period.  Since th e establishment of the GATT global trade has grown 
three times as fast as GDP our economies are increasingly trade inter-dependant.  An open and 
transparent multilateral trading system remains the best way by which we can respond to current and 
future challenges.  The WTO has shown itself to  be well placed to respond to these challenges as 
borne out by the key role it continues to play, incl uding as arbitrator of international trade norms and a 
bulwark against protectionism.  We commend in pa rticular in this context the WTO's valuable 
monitoring and reporting work which responded to  a request by the G20 which is committed to 
maintaining the open global trade and investme nt flows essential to support global economic 
recovery. 
18. Australia pursues an active agenda of trade liber alisation - at the global level, through Doha 
Round negotiations, as well as regionally and bilatera lly. Australia's key trade policy priority remains 
the conclusion of the Doha Round negotiations.  we take the words of G20 and APEC leaders 
seriously in terms of their instruction to conclude the negotiations this year. 
19. Clearly we are concerned and disturbed by developments in recent weeks.  Australia's 
experience in weathering the global financial crisis has underlined the importance of trade 
liberalisation and the costs of not concluding th e Doha Round.  One study shows that increasing 
tariffs to current bindings could cost the global eco nomy A$1 trillion (2%) of global output.  That's 
one of the reasons why in Canberra and overseas, in  Geneva and other key capitals, we continue to 
strive to conclude the Round this year.  It is why we are deeply concerned at the size of the continuing 
gaps in the negotiations, and why we remain committed to playing our part in ef forts to resolve them.  WT/TPR/M/244 
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  Australia has been a strong supporter of the Round and will continue working hard to attempt to finish 
it.   
20. Reform of agriculture is of vital importance to the many developing countries which have a 
comparative advantage in agriculture, as well as for e fficient farm exporters such as Australia.  We 
will continue working with the Cairns Group and with other Groups for an outcome on agriculture 
that is genuinely liberalising.  A significant out come on NAMA is also critical given the importance 
of this sector for the global economy and the evolving nature of industrial production. 
21. Similarly with services, all of us, including de veloping countries, have much to gain from a 
strong services outcome and the increasing tradability of services.  It is increasingly clear that an 
efficient services sector is fundamental to economic growth. 
22. While Doha remains our priority, FTAs are an im portant part of our overall trade strategy. We 
seek to conclude FTAs which are comprehensive,  genuinely liberalising and which advance our 
objectives at the multilateral level.  We have been  at the forefront of completing FTAs which can 
serve as building blocks in enabling sustained economi c growth in the region's economies. Australia's 
FTA agenda, includes implementation of our six concluded FTAs - ASEAN-NZ, Singapore, Thailand, 
the United States, Australia-New Zealand CER and Ch ile – which are helping to strengthen our trade 
and investment relationships with these parties.  We also have active negotiations underway with 
Korea, Japan, China, Malaysia, with the Trans-Pa cific Partnership (TPP) countries (Brunei, Chile, 
New Zealand, Peru, Singapore, the United States,  Malaysia and Viet Nam) and with the Gulf 
Cooperation Council.  Australian and Indonesian o fficials are engaged in preparatory discussions 
prior to convening the first formal Indonesia-Au stralia Comprehensive Economic Partnership (IA-
CEPA) negotiating round.  We are also considering negotiations with India. 
23. Beyond trade negotiations, we are involved in regional trade integration, including through 
APEC in particular.  Australia has a strong commi tment to APEC.  APEC is a grouping that accounts 
for 44% of global trade and in which average applie d tariffs have dropped from 10.8% to 6.6% in 12 
years to 2008.  Importantly, APEC's success is bu ilding a web of trade and economic linkages through 
the region.  Australia is leading important work in  APEC to tackle non-tariff barriers to trade by 
improving supply chain connectivity across the re gion, and reduce impediments to trade and 
investment "behind-the-border".  Australia is also  promoting domestic reform of member economies, 
including through capacity building efforts, to support further regional trade and investment liberalisation.  
24. Finally, Australia has strengthened its efforts on trade and development over recent years.  
Aid for trade now represents up to 15% or A$600 million of the aid budget.  Australia supports a 
range of trade-related capacity-building programs to  help developing countries  take advantage of new 
trading opportunities.  Last year we contributed to the Global Trust Fund (A$2 million) and to ACWL 
(A$3 million).  We expect to become an a member of the Advisory Centre on WTO Law (ACWL) by the middle of the year.  Since July 2003, Australia has provided comprehensive quota free duty free 
market access for all LDCs on all products with no  phase-in periods or exceptions.  We continue to 
provide technical support to Laos, Vanuatu a nd Samoa in their bid to finalise WTO accession 
negotiations.  Finally a successful Doha outcome wi ll help integrate poorer countries into the global 
trading system.   
25. In conclusion, Australia has a major stake in  maintaining a healthy and open multilateral 
trading system. We will continue to work hard for genuine trade liberalisation, integrating multilateral 
commitments with regional and bilateral initiatives . Australia's highest trade priority remains the 
successful conclusion of the Doha Round in a way that delivers genuine new commercial 
opportunities for all WTO Members.     WT/TPR/M/244 
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  III. STATEMENT BY THE DISCUSSANT (H.E. MR. KWOK FOOK SENG 
(SINGAPORE)) 
26. I will focus my statement today on two main areas. First, a synopsis of Australia's economic 
climate that might serve as a backdrop to better appreciate Australia's trade policies; and second, 
Australia's trade policies and practices themselves - those which have been beneficial to the global 
trading environment, and those where improvements can be made to better contribute to our common 
objective of enhanced trade.   
27. Australia is a major developed economy.  It is a key source of world trade in goods and 
services, and plays a vital role in the global market. The services sector dominates Australia's economy, having contributed to more than 71% of GDP last year and is the fastest growing sector of 
the economy. Merchandise trade comprised almost 29% of Australia's GDP last year, with the 
agriculture sector contributing to 4% of GDP, a nd industrial goods about 25%.  Putting these figures 
aside, it is Australia's commodities, agricultural and mining sectors that account for the bulk of 
exports. Australia's main exports are in coal, iron ore, gold, meat, alumina, wheat, machinery, and 
transport equipment.  Their main imports are in machinery, transport equipment, computers, office 
machines, telecommunication equipment, crude oil,  and petroleum products. Among Australia's key 
trading partners are China, Japan, the Republic of  Korea, India, the United States, the European 
Union, New Zealand, Singapore, and Thailand. 
28. Australia has one of the best performing economies in the developed world.  In the four years 
since the last Review, Australia has experienced st eady economic expansion.  More than this, they 
have enjoyed almost two decades of continuous economic growth, averaging 3.5% per year. Even 
during the global recession, Australia managed to ma intain positive figures, with a downturn that was 
milder than many other developed countries. Austra lia has had favourable terms of trade, even during 
the crisis, having benefited from high demands in commodity exports, especially from China.  They 
have also managed to keep inflation and unempl oyment rates comparatively low, while maintaining 
high GDP growth. 
29. Looking ahead, Australia's economy is expected  to remain strong. Real GDP growth is 
projected at 3.75% to 4% over 2011 and 2012. Fu rther reduction in the unemployment rate is 
expected over the next two years, and by 2012, is projected to reach levels lower than 5% - a rate 
consistent with full employment. Australia's current  account deficit was at its  worst during the last 
Review, at about 6.3% of GDP. This had been forecast  to worsen in the next few years, but with the 
success of Australia's monetary and fiscal stimulus , the forecast has now changed for the better with 
the budget expected to reach surplus by 2013. If de mand for Australia's commodities remains high, a 
likely scenario given the global recovery, Australi a's terms of trade will also continue to be 
favourable. 
30. An enviable economic climate such as this does not come easily. Achieving stability and 
growth requires well thought out and well implemente d policies. Australia's macroeconomic policies 
on trade liberalisation, openness, and transparency ha ve played a primary role in these achievements.  
These policies did not come about by chance. Had Australia kept its somewhat protectionist and 
regulated economy of the 1970s, it would not have had the conditions to thrive.  This complete turn-
around was a deliberate move in the 1980s to restructure the economy. Among other reforms, Australia: (i) unilaterally lowered tariffs; (ii) unila terally reduced non-tariff barriers; (iii) opened their 
market to foreign investments; (iv) deregulated the financial services sector; (v) floated the Australian 
dollar; (vi) privatised many government-owned mon opolies; and (vii) reformed their taxation system 
to reduce income taxes, introducing a broad-based  Goods and Services Tax. What emerged was an 
open, export-oriented, and competitive market that until today enjoys a high standard of living.  WT/TPR/M/244 
Page 8  
 
  31. This is not to say that Australia faces no ch allenges.  Being an outward-oriented economy, 
Australia depends on, and will inevitably be vulnerab le to, the global economic landscape.  Australia's 
growing commodity exports increases its exposure to commodity prices.  Associated with its 
favourable terms of trade from the high demand for its commodities and the mining boom, is the 
appreciation of the Australian dollar.  This needs to  be managed carefully so that the competitiveness 
of other exports, and import-competing activities, are not adversely affected.  The withdrawal of 
Australia's stimulus packages, rolled out during the cr isis, would also need to be managed carefully.  
In this respect, elements of the stimulus package i nvesting in schools, hospitals, energy efficiency and 
nation building infrastructure should also see positive returns in the long term.  
32. There is, unfortunately, also the unforeseeable impact from natural disasters.  The floods in 
Queensland and Cyclone Yasi this year, would requir e an estimated A$9 billion in recovery efforts, 
and shaved off half a percentage point from grow th this quarter. Australia's wheat production and 
other agricultural activity would also have been affected. Looking at the longer term challenges, 
Australia also has socio-economic concerns to c ontend with, such as an ageing population, climate 
change, technological change, and the need to constantly upgrade infrastructure.  These are 
challenges, however, that Australia can well manage  and overcome, if she continues to develop and 
adopt market-driven policies and practices.  
33. Turning to Australia's Trade Policies and Practi ces it will come as no surprise that Australia 
is, of course, one of the most open economies in the world. Australia's average applied MFN tariff 
rate fell from 3.8% at its last TPR to 3.1% when it unilaterally reduced tariffs in 2010. The average 
applied MFN tariff for agriculture products is 1. 4% and for industrial goods is 3.4%. Most of 
Australia's product lines - 96% of them - are between  0 to 5% tariff range.  Australia maintains a 
simplified tariff structure, with seven rates, four of which are ad valorem , one specific, one 
compound, and one alternate. More than 99% of product lines have ad valorem  tariffs, and more than 
96% of lines are bound. These make for a transparent and predictable regime, which is complemented 
by generally fuss-free customs requirements and efficient clearance of goods at the border. 
34. In the area of services and investment too, Australia has, since its last TPR, made 
commendable improvements. Among them are reduced or removed restrictions in the financial 
services, media services, and telecommunications sectors. Australia has also taken a comprehensive approach to planning its transport infrastructure,  including a new policy framework for the aviation 
industry.  Reforms to agricultural support and improvements in the areas of intellectual property 
rights, competition policy, and consumer protectio n have also contributed to making Australia a 
business-friendly market. 
35. Notwithstanding Australia's open trade policies, there are still various practices that are not 
facilitative to business. High tariff rates still exist am idst Australia's low averages, hidden in those 
lines for which ad valorem  rates are not applied.  One such cat egory of goods that suffers this is 
vehicles. Also, certain agricultural goods, like ch eese and vegetables, are protected by tariffs and 
tariff-rate quotas. Non-tariff barriers also exist. In particular, import bans a nd restrictions through 
stringent technical regulations and quarantine requirements. One common bug bear of traders is Australia's severe SPS measures.  This is reflected  in 14 of the 24 questions submitted in advance by 
delegations at this TPR. These measures are strict er than relevant standards promulgated by 
international bodies and drastically impede trade, affecting entire supply chains. Notably, Australia 
has been reforming its biosecurity system since 2009, moving away from the zero-risk approach of 
quarantine, to one of pro-active biosecurity. This re form is still ongoing, and the relevant legislation 
yet to be finalised.  When it is, we hope for a good outcome that balances consumer safety with easing 
trade. 
36.
 Stringent regimes in the area of investments are equally of concern to Members, in particular 
the screening process. Under Australia's Foreign Ac quisitions and Takeovers Act 1975, screening is a  WT/TPR/M/244 
 Page 9 
 
 
  requirement for foreign investment in airports, banks, residential real estate, telecommunications, 
transport, and natural resources. While it can be argued that the process is not as stringent as it seems, given that only 0.1% of applications in 2008 to 2 009 were rejected outright,  it was noted that more 
than 57% of approvals were granted subject to c onditions.  Naturally, investors find the opaqueness of 
this regime difficult, and it would be useful, going fo rward, if Australia could look into improving this 
screening process.  
37. Another matter of interest is Australia's a pproach to government procurement. Several 
questions have come in from Members asking Australia to explain how their administration of government procurement policies is consistent th roughout the country and with WTO obligations. 
Beyond Australia's practices at home, it is also su rprising that Australia has not found it in its own 
interest to sign on to the Government Procur ement Agreement at the WTO, given it has made 
government procurement commitments in its free trad e agreements and is a proponent of enhanced 
market access. 
38. My final observations on Australia's trade polic ies and practices relate to various other areas 
where more information would be useful to trader s and investors. For instance, further clarity on 
Australia's export assistance programmes, such as the Export Market Development Grant, could ease 
the worry that this might be a prohibited subsidy.   Elaboration on how Australia streamlines their 
numerous standard-setting and accreditation bodies w ould allay concerns that multiple standards 
mean a burden to trade. More information on ho w Australia applies trade policy instruments in 
different ways for different industries, would also  appease anxiety over sector-specific protectionism.  
Transparency on how assistance programmes work woul d placate concerns that they are being applied 
discriminatorily. Some other policies that warrant revi ew, to better level the playing field for global 
traders and investors, include Australia's luxury cars tax, domestic support on agriculture, foreign 
equity limits on sectors such as media services, Australia's "buy local" policies, and the degree of state involvement in certain areas of the economy, like infrastructure services. 
39. I have only given broad strokes on Australia 's economic landscape and the key areas of 
Australia's trade policies and practices that commonly affect business. I hope these highlights will be 
useful in framing the discussions to follow.  Some of these points will no doubt be elaborated upon by 
delegations in greater detail.  The number and de pth of Members' questions show the importance of 
Australia as an economic and trading partner to the delegations here.  We trust that the feedback 
raised at this review will contribute to Austra lia's trade policy considerations at home.   WT/TPR/M/244 
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  IV. STATEMENTS BY MEMBERS 
MEXICO 
 
40. Starting with the Australian economy's macr oeconomic performance, I would simply 
underscore the very sound economic policy pursued by Australia during and following the crisis.  
On the other hand, as the Discussant mentioned, th ere is a significant problem associated with the 
rapid improvement in Australia's external terms of tr ade.  This, of course, has led to the appreciation 
of the Australian dollar and the possibility of rising inflation, which in turn has caused an increase in 
interest rates, bringing about further appreciation of the Australian dollar.  This then carries the 
potential for "Dutch Disease", with an obvious impact on manufacturing exports and increased 
protectionist pressures from the manufacturing industry. 
41. The major advantage of Trade Policy Reviews is  being able to see how countries use their 
trade policies to address complex situations.  In the context of global economic recovery, Australia 
took no action to influence the value of its currency,  nor did it backslide on trade liberalization.  
In 2010, it applied a unilateral reduc tion in tariffs on textiles, clothing, footwear and motor vehicles, 
thus lowering the average tariff from 3.5% in 2006 to 3.1% in 2010. 
42. However, the attempt to reduce tariffs has not been entirely successful, since the effective rate 
of combined assistance (i.e. tariff, budgetary, pricing and regulatory assistance) for the above-mentioned sectors, as well as grain, sheep and beef cattle farming, horticulture and 
fruit-growing activities, provides a relatively high leve l of protection.  In the particular case of 
budgetary assistance, the levels for these four se ctors more than double the manufacturing sector's 
average. 
43. In other areas, such as the country's very strict sanitary and phytosanitary regime, 
improvements need to continue.  In particular, effo rts must be stepped up to standardize criteria for 
the adoption of technical regulations and SPS meas ures, since the imposition of such measures does 
not require demonstrating a net benefit to the community as a whole or taking into account the trade 
effects on the supply chain. 
44. We are struck by the fact that the Australia n Government continues to apply local-content 
requirements on government-procured motor vehicles.  According to the Secretariat Report, vehicles 
purchased by the public sector must be manufactured in Australia. 
45. In general terms, the Secretariat Report stress es, amongst other achievements, an "unusually" 
high degree of transparency;  the high level of co mputerization of customs clearance to facilitate 
international trade;  and the strengthening  of intellectual property rights protection. 
46. As regards bilateral relations, Mexico main tains an increasingly dynamic bilateral trade 
relationship with Australia.  Annual growth has be en strong over recent years and already exceeds 
US$1.4 billion, which in actual fact is very little in terms of each country's total trade. 
47. We share common values regarding trade and i nvestment.  Within APEC, of which we are 
both members, our two countries have sought to  facilitate economic ope rations throughout the 
Asia-Pacific region by improving the trade policy climate at the border, behind the border and across 
borders.  Generally we maintain common positions in  the OECD Trade Committee.  In the WTO, as 
"Friends of the System" both countries have been working hand-in-hand to try and solve the different 
problems encountered in the course of the Doha Round.   But above all, Australia and Mexico firmly 
believe in the multilateral trading system.  Both countries are committed to  the rapid and successful  WT/TPR/M/244 
 Page 11 
 
 
  conclusion of the Doha Round.  Its failure would have very serious consequences for the WTO and 
for the multilateral trading system. 
INDIA 
48. The Australian economy though had a mild impact but was able to stage an impressive 
rebound mainly due to strong demand for its commod ities.  We have noted Treasurer Wayne Swan's 
recent statement informing that the fundamentals of  the Australian economy remain strong despite the 
impact of floods and a cyclone in Queensland de tracting from economic growth this fiscal year. 
49. India and Australia share many commona lities and the two economies have several 
complementary areas.  India's commercial links with Australia date back to the 18th century, trade 
with Australia was a strong component in the operations of the East India Company of those days.  In the recent years, the ties have been strengthened further between our countries.  Both our countries 
have stressed expanding cooperation in areas such as trade, energy, natural resources, education, 
science and technology. 
50. Since the previous TPR of Australia, our bilateral trade has increased by over 65%.  While 
Australia's exports has jumped from A$9 billion to  A$16 billion, an increase of 77%, India's exports 
to Australia have seen a more modest growth of ju st 15%.  India's exports to Australia include pearls, 
gems, rotating electric plants while its imports  mainly constitute coal, gold, copper ores and 
petroleum.  While India is Australia's largest market for goal and chickpeas, the second largest for 
coal and copper ores, and the third for lead and wool.  India's services trade with Australia is valued at 
over A$4 billion with exports from Australia valued at A$3.6 billion.  India's second largest trade 
deficit in the world may be noted is with respec t to Australia.  The trade deficit both in goods and 
services with Australia is a matter of concern to us and needs to be addressed comprehensively to 
make trade relations sustainable, and to make them grow further. 
51. Several Indian information technology companies ha ve invested in Australia in diverse fields 
such as mining, fertilizers, petroleum exploration, power, oil seed crushing and edible oil refining.  
Almost all major Indian IT companies have a presence in Australia and operate 13 software 
development centres in the country providing employment to more than 1,300 people.  Some of the Australian companies who have invested in Indi a include BHP Billiton, Rio Tinto, P&O Australia, 
and Fosters. 
52. Las year a Joint Study Group which was set up to study the feasibility of an FTA between 
India and Australia has submitted its recommendations.  We consider that FTA has the potential to 
enhance trade in goods and services as well as accele rate the flow of investments between the two 
countries. 
CHINA 
53. We share Australia's view that this Review is held at a critical time and in the face of the 
economic challenges associated with the global eco nomic crisis. We believe that it provides a good 
opportunity for Members to learn from Australia on how to deal with these challenges. 
54. China notes with pleasure that Australia re mains among the most open economies in the 
world. China is glad to see that Australia has successfully weathered the global financial crisis 
without backsliding on trade liberalization. China also appreciates Australia 's firm commitment to a 
rules-based and transparent multilateral trading system , as well as to the successful conclusion of the 
Doha Round. In this regard, we would like to commend Ambassador Tim Yeend and his strong team 
in Geneva for engaging actively in all areas of the negotiations. WT/TPR/M/244 
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  55. Australia has achieved impressive economic performance by registering GDP growth rates of 
1.4% and 2.3% between 2008 and 2010 when the world economy was stricken the hardest by the crisis. According to our information, Australia is  the only economy in OECD that did not slide into 
recession during the global financial crisis. The Secretar iat Report noted that this is mainly attributed 
to sound macroeconomic policies, structural reform s and improved terms of trade. At the same time, 
we also take note of some indicators that might have negative impact on the economy. For example, 
although Australia is still considered one of th e most competitive economies in the world, it has 
experienced a marked decline in multi-factor pr oductivity growth. The unemployment rate remained 
relatively low, albeit rising gradually from 4.5%  to 5.5%. As from 2008/2009, Australia's fiscal 
position shifted to a deficit. In view of these factors, it would be interesting to hear how Australia 
intends to keep the momentum of structural reforms to sustain its growth in the future. 
56. China and Australia are important trading partners  to each other, with China being Australia's 
largest source of import as well as its largest e xport market. As noted in the Secretariat Report, 
China's strong demand is one of the most important f actors that pushed Australia's terms of trade to its 
highest level in 60 years. The period under review  has witnessed a sound deve lopment of our bilateral 
economic ties despite the impact of the global economi c crisis. Our statistics indicate a bilateral trade 
volume of US$88 billion in 2010, representing a 46.5%  growth over the previous year. This sound 
trade performance against the background of the gl obal economic crisis prove d the inter-dependent 
and complementary aspect of the two economies a nd the benefits we can draw through further 
liberalization efforts. 
57. Despite Australia's generally open trade regime , there is still room for improvement regarding 
some of its policy aspects. For instance, as noted in the Secretariat Report, Australia maintains a very 
strict quarantine and inspection regime, which mi ght not be totally necessary. We hope Australia 
would consider re-evaluating these measures in light of basic WTO rules and principles.  
UNITED STATES 
58. The United States applauds Australia's s ound macroeconomic policies and wide-ranging 
structural reforms, which have contributed to its  strong economic performance over the past decade.  
We also welcome Australia's commitment to th e multilateral trading system, which supports its 
macroeconomic objectives.  Australia's aggressi ve efforts to promote open markets through 
multilateral, regional, and bilateral initiatives have  not only enhanced th e competitiveness of the 
Australian economy but helped catalyze trade and ec onomic liberalization efforts around the world.   
59. The commercial ties between the United States and Australia are strong and continue to grow.  
In 2010, our two-way goods trade grew 10% fro m 2009 to $30.8 billion.  At the same time, 
investment in both directions has been increasing, with U.S. foreign direct investment in Australia up 12.6% in 2009 (the latest available data) from the previous year and Australian FDI in the United 
States up 12.4% in the same period. 
60. The United States continues to hold firmly to  the view that our own commitment to the 
multilateral system is strongly complemented by th e existence of sound, comprehensive bilateral and 
regional agreements.  The U.S.-Austr alia Free Trade Agreement, which went into effect in 2005, has 
contributed to the growth in trade and investment between our two countries.  We are pleased to highlight that our total two-way trade in goods, for example, has grown by 43% since 2004, the year before the FTA entered into force, and our Agreemen t continues to foster deeper cooperation on other 
economic issues where we share common goals.  We are further pleased to note that implementation 
of the agreement continues smoothly. 
61. Moreover, we have continued to build on our pos itive experience with the bilateral FTA.  In 
March 2010, the United States and Australia, along with  seven other countries, began negotiations of  WT/TPR/M/244 
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  the Trans-Pacific Partnership (TPP), with the obj ective of shaping a high-standard, broad-based 
regional agreement.  We have just concluded ou r sixth round of negotiations and are seeking to 
conclude this agreement as rapidly as possible.  Our expectation in advancing this Agreement is that it 
will complement the multilateral trading system by expanding trade liberalization. 
62. Thus, Australia remains a strong advocate of the be nefits of global trade liberalization, and is 
a valued partner in seeking to achieve this end.  We commend Australia's efforts, for example, to 
achieve stronger disciplines on fisheries subsidies an d for its critical input into these negotiations as a 
Friend of Fish.  Australia's commitment to conc luding the Doha Developm ent Agenda negotiations 
has been unwavering and instrumental in helping to maintain the energy and focus needed to conclude 
the negotiations.  We are hopeful that its dedica tion and commitment will play a leading role in 
advancing these negotiations to a successful conclu sion.  We look forward to our continuing work 
with Australia to achieve an ambitious, balanced and comprehensive Doha Agreement that results in 
meaningful new trade flows in industrial goods, ser vices, and agriculture and benefits all Members. 
63. Australia was a founding member of the As ia-Pacific Economic Cooperation (APEC) forum 
in 1989 and has been active in helping APEC achi eve its current status – with 21 member economies 
comprising nearly half of the world's population and more than half of the global economy.  Since it 
was founded in 1989, the APEC forum has been instrumental in promoting regional and global trade and investment, and supporting the WTO and a strong outcome in the DDA.  This year, the United States is proud of its role as host and chair of A PEC, and we look forward to continuing our close 
working relationship with Australia to achieve pr actical, concrete, and ambitious outcomes in APEC 
in 2011.  
64. Despite Australia's exceptionall y strong record, there are some areas where we would see 
room for further improvements.  We hope this Tr ade Policy Review will help draw Australia's 
attention to these areas where it can further libera lize its regime and enhance its competitiveness. 
65. As one of the leading global agricultural trad ers, we urge the Australian Government to 
ensure that its SPS regulations and requirements and overall process are the least trade-restrictive 
possible.  For example, as the Secretariat notes, Au stralia generally supports a standards policy that is 
compatible with relevant internationa lly-accepted standards or practices.   
66. Likewise, the Secretariat Report notes that Au stralia generally suppor ts expediting foreign 
access for new agricultural products and in 2007 established new import risk analysis (IRA) arrangements setting specific timeframes for completion of IRAs within either 24 or 30 months.  Yet, 
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. 
67. We will be interested to hear about Australia's  program of legislated tariff reductions and the 
timeframe for its implementation.  We were advised of this progr am during Australia's 2007 TPR and 
we look forward to knowing its status.   
68. With regard to import licensing, we are keen to know Australia's plans for responding to the 
Questionnaire on Import Licensing Procedures, as th e WTO Import Licensing Agreement requires.  
We appreciate Australia's offer to update its 2006 responses to the Questionnaire and we hope that 
Australia will submit its revised response to th e Questionnaire on Import Licensing Procedures in 
time for its review in the Committee during 2011. 
69. As for Australia's "Certain Inputs to Manufactur e" (CIM) scheme, the Secretariat says that 
this program provides duty-free entry for certain  goods used in manufacturing directed towards 
"import replacement" and "export e nhancement".  We are most inte rested to know how Australia 
implements this scheme in light of its WTO Subsidies Agreement commitments. WT/TPR/M/244 
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  70. Australia is one of the most dynamic and open economies in the world and a dedicated 
proponent of free trade.  As one of Australia's closest friends and allies, we share a strong common 
interest in its continued growth and prosperity.  We  look forward to continuing to work closely with 
Australia in the WTO as well as in bilateral and regiona l forums and in particular to our joint efforts 
to achieve market-opening results in the DDA and TPP negotiations. 
BRAZIL 
71. The Secretariat's Report indicates that Australia is  one of the economies most opened to trade.  
During the period under review, Australia has mana ged to maintain a strong economic and trade 
performance, as a result of a combination of thre e elements:  (i) sound macroeconomic policies;  
(ii) structural reforms undertaken over the past few years;  and (iii) greatly improved terms of trade 
resulting from the rise in commodity prices. 
72. Though the global financial crisis has caused ec onomic growth to slow down to 3.8% in 2008, 
and to 1.4% in 2009, the effects of the crisis we re comparatively mild in Australia than in other 
developed countries.  Growth has already rebounded to 2.3% in 2010. 
73. Social indicators have also performed relativ ely well.  The general unemployment rate was 
5.2% in 2010, which is considerably lower than  in most major developed economies.  Moreover, 
Australia's prudent regulation helped shielded its financial markets from the adverse impact of the 
global financial crisis.  It is also worth mentioning  that Australia refrained from adopting protectionist 
measures in the wake of the crisis. 
74. Let me now address some of the features of Australia's trade and investment policy which are 
of particular interest of  us.  We are following closely the reforms that are still under way in Australia's 
SPS regime.  We share the concerns of other trading partners, as presented in the Secretariat's Report, 
that Australia's SPS measures are "unduly stringent a nd therefore protectionist".  We note in this 
regard that, following an indepe ndent review of Australia's quara ntine and biosecurity arrangement 
concluded in 2008, Australia's acknow ledged that zero-risk is both una ttainable and undesired.  This 
led the country to a shift from quarantine to bio security.  We hope that th ese measures will reduce the 
impact of Australia's SPS regime on its trading part ners.  As a major agricultural commodity exporter, 
I am sure that Australia is sensitive to  these concerns of other WTO Members. 
75. Australia has continued to use government proc urement as an instrument of economic policy 
to foster industrial development.  While we commend  Australia's efforts to sourcing at least 10% of 
government purchases from small or medium-sized en terprises, we note with concern that various 
states continue to adopt "buy local" requirements in  their procurement policies.  Notwithstanding the 
issue of compatibility of this "buy local" require ments with Australia's international obligations, 
Brazil is particularly concerned when measures of this type are applied by  developed countries. 
76. The Report also indicates that Australia continu es to encourage foreign investment that is 
consistent with its national interests.  Foreign in vestment restrictions however are maintained for 
certain sectors considered to be sensitive, such  as airports, banking, residential real estate, 
telecommunications, transport (civil, aviation and sh ipping) and, more recently, on the exploration of 
natural resources.  Though we can discern the reasons  behind such restrictions, they do not fit well 
with Australia's strong advocacy for services' liberalization worldwide. 
77. With respect to the participation in the WTO, Australia and Brazil share the same objective of 
supporting the multilateral trading sy stem and favouring a successful conclusion of the Doha Round.  
We also share Australia's assessment, to be found in  its Government Report, that "agriculture is the 
most distorted area of international trade".  Global agricultural trade reform is also a key objective of 
Brazil's international trade agenda.  To this end,  Brazil, as a member of the Cairns Group, endorses  WT/TPR/M/244 
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  fully Australia's commitment to a Doha Round that  "delivers substantial new trade opportunities for 
all WTO Members by opening markets for agricultura l and industrial products and services, as well as 
through reductions in agricultural subsidies". 
78. Turning to the bilateral relations, after a p eak of US$2.4 billion in 2008, trade between 
Australia and Brazil declined to US$1.3 billion in 2009 as a result of the global crisis.  In 2009, 
Brazilian exports to Australia dropped by 60%, wher eas Australian exports to Brazil declined 30%.  
Although the 2008 levels trade between the two part ners recovered to around US$1.9 billion in 2010, 
and the figures from the first two months of 2011 show  a growth of 45% in the volume of trade when 
compared to the same period of 2010.  We hope to  further expand and improve our bilateral trade.  
Brazil trusts that Australia will retain its commi tment to the multilateral trading system and will 
continue its engagement in the Doha Round. 
SWITZERLAND 
79. First of all, let me say that we witnessed the grief, loss and havoc caused recently in Australia 
by the floods caused by torrential rainfall and ex tend our deepest sympathies to the Australian 
government as well as to the people affected by this catastrophe. 
80. Without the New South Wales and Queensland floods that occurred at the end of 2010 and 
again at the beginning of this year, the Austra lian economy would be growing in 2011 at a solid 
economic pace comparable to the one recorded in re cent years. Even in 2008-09 - in the midst of the 
global financial and economic  crisis - the slowdown was gentler in Australia than in most other 
advanced economies. Australia is thus being regard ed to be one of the few developed economies to 
have escaped a recession. This is certain ly an achievement to be welcomed.  
81. Given the strong demand for mining resources worl dwide and Australia's commodity exports, 
in particular (coal, corn, etc.), the prospects for the Australian economy - despite the prevailing high 
exchange rate of the Australian dolla r - seem to remain quite favourable,  even if increasing risks loom 
in the short term as a result of a possible fall-off of the demand from China - and now, in particular, 
also from Japan - following one of the worst eart hquakes and tsunamis on record, as well as because 
of erratic movements in raw material prices triggere d by these latest events together with those in 
North Africa and the Middle East. 
82. Regarding our bilateral economic  relations, let me first mention that Swiss exports to 
Australia - mainly pharmaceutical as well as machines and medical instruments - have grown 
dynamically in the period 2006-08. If there was a drop in Swiss exports to Australia in 2009 (-7.2%), 
this mainly reflected the impact of the world fi nancial and economic crisis which spared almost 
nobody; we had indeed similar experiences with a number of other trading partners. Since the 
beginning of 2010, the tide turned again and Sw iss exports to Australia bounced back by 10%. 
Exports from Australia to Switzerland continued to grow  at a fast pace over the last three years, with 
strong increases of 23.1% in 2008, 20.2% in 2009 and 12% in 2010 respectively, demonstrating also 
the high degree of openness of our own ec onomy toward Australian products !  
83. With its generally liberal and transparent inv estment regime, Australia has also been an 
attractive destination for Swiss investors in rece nt years. Australia now occupies the second rank 
(after Japan) in the Asia/Oceania-Region for Swiss direct investments (with a total amount of roughly 
CHF 15 billion, according to the latest SNB data (200 9)). According to figures produced by Australia, 
Switzerland now also ranks 5th for foreign direct  investment in Australia. While many of our 
companies are well-established, others are new-come rs and, altogether, Swiss firms were employing 
more than 44'000 people in Australia in 2009. On  the other hand, Australian foreign direct 
investments represented about CHF 1.8 billion in Switzerland (in 2009). WT/TPR/M/244 
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  84. Even if the general economic situation in Au stralia appears satisfactory and its trade and 
investment regime is generally quite open, there are nonetheless some issues that will require close 
attention and which we have also raised in our  written questions. First, if Australia's economic 
performance benefited greatly from past structural reforms, including trade liberalization, observers 
also point out that further and significant adjustme nts will be needed especially to lift the productivity 
of the non-mining sector. We would therefore be very interested in knowing how the Australian 
authorities intend to meet this important challenge. 
85. Also, it appears that the existing antidumping and countervailing system presents a number of 
deficiencies which, if not addressed, are likely to co ntinue to impose a net cost on the economy. This 
is why we raised the question whether reforms of  these instruments would contribute to reduce the 
costs of better integrating Australian companies in  global supply chains. In particular, based on our 
own experience, we strongly believe that with  a lesser reliance upon antidumping measures, the 
development in Australia of higher value-added i ndustries could benefit from both cheaper and better 
imported inputs. This could clearly represent a useful  contribution to Australia's efforts toward the 
diversification of its economy and improving  the competitiveness of its non-mining sector. 
86. Regarding the WTO Agreement on Government Procurement, we have taken note that 
Australia still considers the GPA to be "largely inc onsistent with its approach of low regulation in the 
public sector". Given that Australia attaches grea t importance to transparency, competition, open 
markets and economic efficiency in general, it is for us difficult to understand how the Australian 
authorities can reconcile these general principles w ith procurement and public  expenditure practices 
where only domestic providers are authorized to present bids. Switzerland would therefore very much 
encourage Australia to join the other developed economies which are overwhelmingly participating in 
this plurilateral agreement or at least to open its procurement markets to foreign competitors. In the 
same vein, we also wonder why Aust ralia apparently continues to ex clude maritime transport from the 
scope of its competition legislation. With that, Austra lia will note that we have a substantially all trade 
approach to Australia's foreign economic policy w ithout having to talk about agriculture, SPS or 
geographical indications. 
87. Before I conclude, I would like to call on a ll Members for an ambitious and balanced 
conclusion of the Doha Development Round of multila teral trade negotiations in 2011. We share the 
feeling expressed by Minister Craig Emerson in Davos that failure to complete the round by the end 
of 2011 would leave the great danger of an erosion of the existing rules-based world-trade system.  
COSTA RICA 
88. Costa Rica is pleased to participate in this review  of Australia's trade policy.  Australia is a 
partner with which we share many views within th e WTO.  We know that Australia is committed to 
the multilateral trading system and to the successful and ambitious conclusion of the Doha Round.  We also recognize its remarkable work as leader of the Cairns Group, of which Costa Rica is a 
member.  In the Cairns Group we share the common goal of fully integrating agricultural trade into 
the WTO disciplines, through an ambitious outcome in  market access, export subsidies and substantial 
reductions in trade-distorting domes tic support.  We also share common positions in areas such as 
trade facilitation and intellectual property, and we thank Australia for its te amwork and collaboration 
in these as well as other areas such as in  the "Friends of the System" Group. 
89. Both the Secretariat Report and the Report by Au stralia bear witness to the exceptional results 
recorded by the Australian economy, even under ad verse circumstances such as the global financial 
crisis.  These results are clearly the fruit of re form processes aimed at en suring the competitiveness, 
efficiency and flexibility of the Australian economy , which were implemented several years ago and 
which have made it one of the most open economi es in the world.  Amongst other things, the  WT/TPR/M/244 
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  transparency of Australian trade policy as well as th e efforts made to facilitate trade through the 
reduction of paperwork and computer ized clearance should be noted. 
90. We would also emphasize Australia's support for the various Aid-for-Trade programmes, 
particularly the WTO's Global Trust Fund, and fo r the Advisory Centre on WTO Law (ACWL).  
In this connection, we hope that Australia can comp lete the legislative proc ess that will allow it to 
conclude its process of accession to th e ACWL in the very near future. 
KOREA, REPUBLIC OF 
91. Australia is one of the most open and liberalized  economies in terms of trade policies with its 
average applied MFN tariff rate of 3.1%.  Most remarkably, it unilaterally and substantially reduced 
tariffs, as of January 1 2010, in the areas of automobile and textile.  
92. The fact that Australia has weathered a nd overcome the aftershoc k of the 2008 global 
financial crisis with relative ease shows the very va lue of trade-friendly policies at this difficult time 
for Doha negotiations.  In this vein, Korea expects Australia to continue to contribute to the early 
conclusion of the DDA negotiations, joining e fforts of other Members including Korea.  
93. Currently, there are ongoing negotiations for Ko rea-Australia Free Trade Agreement. We 
believe that early conclusion of this bilateral FT A will bring substantial liberalization of trade and 
economic benefits to both countries. 
94. Finally, I would like to express my appreciation for the answers given by Australia to Korea's 
written questions.  Regarding Korea's Question 2, Au stralia's answer is that its SPS measures are 
moving to a new system of biosecurity.  However, the very details of its implementation are seemingly yet to come.  In its written answer, Aust ralia itself mentioned the possible increased level 
of inspection in some areas.  More detaile d information will be much appreciated.   
ARGENTINA 
95. Australia continues to be one of the most open economies in the world, even after the global 
financial crisis of 2009, which it successfully  weathered without any backsliding on trade 
liberalization.  We congratulate Australia for its leadership in an open and rules-based multilateral 
system. 
96. We note that sound economic policies and struct ural reforms together with the greatly 
improved terms of trade and flexib le exchange rate are among the factors that contributed to 
Australia's impressive economic performance during the period under review.  Also worthy of 
mention is the importance of China in both  Australian and Argentine foreign trade. 
97. Australia has been liberalizing various aspects of its recent trade policy.  We commend 
Australia for maintaining its openness to foreign in vestment and for removing restrictions on foreign 
ownership in a number of sectors, such as the media sector. 
98. As a result of the introduction in early 2010 of unilateral reductions in tariffs, including the 
peak rates applied to textiles, clothing and f ootwear as well as to passenger motor vehicles, the 
average applied MFN tariff rate decreased from 3.8%  in 2006 to 3.1%.  Also, we welcome the fact 
that Australia's average applied MFN tariff for agri cultural products is 1.4%, even lower than the 
tariff applied to industrial products. WT/TPR/M/244 
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  99. Nonetheless, Australia continues to broaden its pr eferential trade relations.  As stated in the 
Secretariat Report, commitments under prefer ential arrangements go beyond those under the 
WTO Agreements in a number of areas, including services. 
100. As several Members pointed out this morning, Australia still maintains strict SPS measures.  
According to the Secretariat Report, the adoption of  a standard generally requires demonstration of 
the net benefit to the community as a whole, but SPS measures are adopted without a similar 
cost-benefit analysis, and in particular without taking due account of the trade effects of such 
measures. 
101. We further note that the effective rate of combined assistance remains relatively high for 
grain, sheep and beef cattle farming, horticultu re and fruit-growing activities, amongst others. 
102. Although our bilateral trade accounts for only 0. 5% of each country's total trade, it has 
increased by more than 400% since 2000 and amounted to over US$560 million in 2009.  Australia's 
main exports to Argentina are coal, medicines, sp ecialized machinery and engineering equipment.  
Argentina exports animal feed, vegetable oils and fa ts, leather and heavy-duty vehicles in particular.  
Australian investment in Argentina amounts to more than US$2 billion, most of which is in the form 
of foreign direct investment.  Argentine i nvestment in Australia totals US$250 million. 
103. Australia and Argentina share numerous interest s in the multilateral sphere.  Both countries 
have been members of the Cairns Group since 1986,  which Australia coordinates, and together we 
support a fair and market-oriented agricultural trad ing system, in which agricultural goods receive the 
same treatment as other goods, including the dismantlin g of distorting subsidies, tariff cuts and the 
elimination of non-tariff barriers.  We also have common interests in the WTO, including joint 
proposals on trade and environment issues and geographical indications.  We look forward to 
continuing work with Australia towards an  open and rules-based multilateral system. 
TURKEY 
104. Since our first encounter on the battlefields of Gallipoli, we have started building up a bond of 
mutual respect and admiration with Australian peopl e.  This historical bond is now serving as the 
basis to further strengthen and deepen our relations in every field, including the WTO related issues. 
105. At present, our bilateral relations with Australia  are very good.  The trade exchange between 
the two countries is around US$800 million in 2010.  We hope to reach the pre crisis level of US$1 
billion in 2011.  We have concl uded the avoidance of double taxati on agreement last year and now, 
we are looking at the possibility of establishing a businessmen consultation group to explore the 
possible opportunities for business development. 
106. Concerning the trade and economic policies, at the outset, we must acknowledge the 
important role Australia plays at the WTO platform .  Australia is a strong and committed supporter of 
the multilateral system and, an active and leading pa rticipant of the DDA negotiations.  We are sure 
that Australia will continue to play this leading role in the coming days. 
107. We would like to applaud Australia for its economic performance.  It is clear from the 
Secretariat's Report that structural reforms of the pa st years have paid off well, and Australia has built 
a strong economy, ranking high in almost ever y major macroeconomic and human development 
indicator. 
108. Furthermore, performance of the Australian ec onomy during the crisis is also commendable 
as it did not only manage to restrain the impact of the crisis but it also achieved a strong comeback in  WT/TPR/M/244 
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  2009.  While increasing share of the commodities trad e in the economy has facilitated this success, it 
seems that this is also putting pressure on the future  resource allocation in the economy.  In this sense, 
it will be interesting to observe in the coming days how Australia plans to manage potential created by 
the increasing role of mining industry in its economic structure. 
109. As pointed out by other delegations, Australia  has a liberal and open trade regime, and it 
places a high value on the transparency.  It is commenda ble that even in the crisis period, this policy 
has not changed and Australia conti nued its liberalization efforts.  In  this regard, we welcome further 
reduction of already low tariffs as well as the simplification of the tariff structure. 
110. Nevertheless, with regard to Australia's trade regime, we would like to raise several points.  
First, we also would like to point out that, desp ite its very low share in the economy and recent 
reductions in the tariffs, textiles and clothing items are still subject to higher levels of tariffs and tariff 
peaks.  We hope that the Australian Government  will take into account the conclusion of its 
Productivity Commission with regard to further reduction of tariffs in these sectors. 
111. Similarly, we also hope that in the future structural reforms, support provided to the 
automotive industry will also be lowered.  While th e share of this sector is falling in the domestic 
economy, it continues to receive the largest share of budgetary assistance as well as one of the highest 
protections among the manufacturing sectors. 
112. Lastly in terms of the trade policies, as fruits  and vegetables constitute a major part of our 
expor5ts, we would like to point that Australian' s strict SPS measures are ve ry difficult to comply 
with.  
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
113. In its own Report, the Australia Government em phasizes, and I quote, that "Trade is vital to 
Australia's economy and the prosperity of its people.   The Australian Government's commitment to an 
open, flexible economy has been a key factor in Australia's strong economic and trade performance 
over the last two decades", and says further that "Aus tralia's highest trade priority is the successful 
conclusion of the Doha Round, and it continues to  urge all WTO Members to demonstrate greater 
flexibility in the negotiations".  It goes without sa ying, therefore, that international trade plays a 
pivotal role in Australia's economic development,  and I would like to take this opportunity to 
congratulate Australia on its overall economic and trade success. 
114. We have enjoyed for some time now a very close bilateral trading relationship with Australia.  
In the period under review, the volume of two-wa y trade between us has grown by 139%, within 
which our imports from Australia increased by 145%.   We import from Australia mainly mineral, 
energy and agriculture-related products. Our main ex ports to Australia are industrial goods.  The types 
of goods that we trade between us are quite complementary. 
115. I would also like to mention briefly that, with the solid foundation paved by the annual 
economic, energy and resource talks between us a nd Australia, achievement has been made over the 
years in many fronts such as cooperation in energy and mineral industry, and customs cooperation just 
to name a few.  We look forward to further strengt hening our bilateral relations  with Australia in the 
years to come.  
116. Regionally, both Australia and us are member s of the APEC, and both sides have worked 
closely in many initiatives and we would also like to further engaging with Australia under the APEC 
arena. WT/TPR/M/244 
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  117. Multilaterally, Australia is a very active partic ipant in the DDA negotia tions.  While we may 
have some differences on certain negotiating areas, one  view we certainly do share with Australia is 
that further strengthening of the WTO, especially through early completion of the Doha Round, is a 
key component in the mix of effective responses to the current global financial and economic crisis.  
Therefore, we hope to maintain a c oordinated effort on this front in th e future, particularly in the areas 
of NAMA services, environmental goods and services, TF, and TRIPS. 
INDONESIA ON BEHALF OF ASEAN 
118. I would like to begin by highlighting the exce llent economic and trade relations ASEAN has 
with Australia, both regionally as well as bilaterally .  In the regional context, ASEAN and Australia's 
total trade has continued to grow annually from US$41.9 billion in 2007 to US$43.8 billion in 2009, 
where ASEAN and Australia have also begun impl ementing the ASEAN-Australia-New Zealand FTA 
from 1 January 2010, which is one of ASEAN's most  comprehensive economic agreements to date.  
Meanwhile on a bilateral basis, Australia has Econo mic Partnership Agreements with Singapore and 
Thailand, and is currently in negotiations with Ma laysia, whilst a number of us are also working 
together on the negotiation of the Trans-Pacific Strategic Economic Partnership Agreement.  Given 
the substantial reduction of trade barriers th ese arrangements will have in goods, services and 
investment in the region, we continue to believe th at they are solid building blocks for the multilateral 
trading system and will fully complement the high ambition and successful outcome, in due course, of the Doha Development Agenda. 
119. Australia has also been a strong provider of trade related assistance schemes through 
multilateral, bilateral and regional frameworks, en abling developing and least  developed countries 
including those in ASEAN to enjoy the benefits from the multilateral trading system.  ASEAN is 
highly appreciative of all of Australia's contributi ons to the region including that under the Economic 
Cooperation Work Program under the AANZFTA as well as the ASEAN Australia Development 
Cooperation Program, and also welcome Australia 's support in the accession process of future 
Members of the WTO including that of Lao PDR. 
120. We also note from the Secretariat's Report that  Australia has maintained a high degree of 
transparency in her policies and this, together with continued sound macroeconomic policies and 
reforms have contributed to its impressive economic performance, w ith a successful weathering of the 
global financial crisis and a rebound of growth to 2.3% in 2009-10.  This is good news for ASEAN.  
With such close economic and trade relations, we  would therefore like to commend Australia on her 
continued efforts at reform and improved terms of tr ade, without having to resort to any backsliding 
of trade liberalization and/or currency value actions. 
121. Allow me now to touch on specific aspects of Aust ralia's trade policies and measures.  In the 
area of tariffs, we note the continued openness of the Australian economy.  We are also happy to note 
that tariffs on apparel and certain finished textile  articles were reduced to 10%, whilst tariffs on other 
textiles, clothing and footwear as well as motor ve hicle and parts components were further reduced to 
5%.  These unilateral reductions resulted in a drop of  Australia's average applied MFN rate to 3.1% in 
2010.  At the same time, we also note in the Secretariat's Report the high differences that continue to 
exist between bound rates and app lied MFN rates which exceed by 7%  on average, which we view 
can potentially impart a certain degree of unpredictability to the tariff. 
122. Despite the general openness, we also note from the Secretariat's Report that tariff escalation 
continues to occur.  On average, Australian tariffs on primary produc ts are considerably lower than on 
semi-processed and processed goods, particularly in textiles and leather, non-metallic mineral 
products, chemicals, woods and fu rniture and fabricated metal pr oducts and machinery.  Tariff 
escalation constitutes a potential obstacle for devel oping country members' exports of semi-processed 
and processed goods to Australia, in cluding those from ASEAN Members.  WT/TPR/M/244 
 Page 21 
 
 
  123. In agriculture, ASEAN is pleased to note that  Australia's domestic support remains well 
below the average indicated by OECD and that ta riffs on agriculture products remain low at an 
average of 1.4%.  Nevertheless there remains room for improvement in Australia's agriculture trade 
measures, where strict sanitary and phytosanitary measures are still maintained. 
124. Let me turn briefly to Australia's participati on in the WTO.  Australia has always been a 
strong supporter of the multilateral trading system a nd has actively participated in all areas of the 
DDA negotiations, including in the leadership of services committees and plurilateral processes.  We 
highly appreciate Australia's efforts in this regard. 
SINGAPORE 
125. Singapore and Australia are close economic part ners. Our overall trade has been on a healthy 
upward trend this past decade. Last year, Australia was Singapore's 13th largest trading partner.  Our 
total trade amounted to US$16 billion. Our investment  relations too have been swiftly strengthening. 
More than 2,000 Australian companies are currently  established in Singapore. The stock investments 
of these companies amounted to almost US$18 billion in 2009, more than twice the amount registered 
in 2005. The presence of Singapore companies in Aust ralia is equally significan t. In 2009, Singapore 
was the sixth largest investor in Australia, w ith stock investments amounting to US$36 billion. 
126. Fundamental to this relationship is the co mmon mindset and approach we have towards 
global trade and investment. Both Singapore and Aust ralia believe in free trade and open markets. In 
2003, we signed the Singapore-Australia Free Trad e Agreement, or SAFTA, a high quality agreement 
that has helped to increase the flow of our bila teral trade and investment. Singapore and Australia 
keep in constant communication on SAFTA to ensure  that the agreement stays current.  We recently 
completed the Second SAFTA Ministerial Review.  
127. Complementing our bilateral FTA is our re gional agreement, the ASEAN-Australia-New 
Zealand FTA. The FTA, since its entry into force in January last year, has expanded our economic 
opportunities to a combined market of 566 million people, with a GDP of about US$800 billion. 
Further, the FTA has been a catalys t for accelerated integration in East Asia and the Asia-Pacific.  
128. Deepening regional economic integration is a nother key goal that Singapore and Australia 
share. Testament to this is our current collabora tion on the Trans-Pacific Partnership Agreement, or 
TPP, along with Brunei, Chile, Malaysia, New Zeala nd, Peru, the U.S., and Viet Nam. Australia's 
partnership with Singapore and other neighbouring countries in  APEC and the Comprehensive 
Economic Partnership in East Asia also show  Australia's commitment to regional initiatives. 
Singapore shares Australia's view that bilatera l and regional trade agreements, and regional 
integration efforts, are building blocks for wide r multilateral liberalisation, and in this regard, 
reinforce our overall goals for the WTO.  
129. Australia is evidently a valuable economic pa rtner to Singapore. Our respective markets are 
integral to each other and we both appreciate that open trade and investment policies are pivotal in 
driving dynamic economies. Australia is also a major influencing economy in the region that 
surrounding countries emulate. In this context, trade practices that correspond with the goals of a free 
trade proponent are essential, and we are glad to note that most of Australia's policies reflect this.  
130. There are, nonetheless, a few areas which, if improved on, could further amplify Australia's 
attractiveness as a trade and investment partner, a nd make it even more business-friendly. In certain 
services sectors, like maritime and life insurance serv ices, for instance, several barriers still exist in 
the form of stringent domestic measures, pro cedures and requirements, which we hope Australia 
could consider liberalising. While we are glad to  note that Australia's screening requirements for 
foreign investment have been liberalised over the y ears, and more applicati ons have been approved, WT/TPR/M/244 
Page 22  
 
  we would like to see more transparency in the screen ing regime. We also look forward to Australia 
eventually becoming a signatory to the Governme nt Procurement Agreement and the implementation 
of a single procurement policy across Australia's three levels of government, that is (i) the 
Commonwealth, (ii) state and territory, and (iii) local government. For trade in goods, we hope to see 
a reduction in Australia's tariff peaks, and a more liberalised SPS regime that does not unduly hamper 
trade. 
131. Being one of the more open and competitive ec onomies in the world, Australia has clearly 
been committed to continually reducing trade barriers and expanding o pportunities and markets 
through multilateral, regional, and b ilateral approaches. In this light, we are certain that the questions, 
suggestions, and feedback that Members provide Au stralia at this review will be well received. 
Improvements in its trade policies will only strengt hen Australia's economic relations with Singapore 
and all its other partners. 
132. On a final note, I would like to take this oppor tunity to underline Singapore's appreciation for 
Australia's tireless efforts in the DDA negotiations and at the WTO as a whole. Our delegation has a 
close working relationship with Ambassador Yeend a nd his team in Geneva, and we look forward to 
continuous collaboration in our shared commitmen t to the WTO and the multilateral trading system. 
CHILE 
133. This review of Australia's trade policy takes place at a critical point in the Doha Round 
negotiations.  The openness of the Australian econom y, the direction of the country's economic 
development through foreign trade and the extremel y high degree of transparency of its trade policy 
are all examples which we see as confirming, once again, the benefits generated by trade 
liberalization. 
134. Australia has been a strong believer in the need to successfully co nclude the current 
negotiations.  It has worked tirelessly in all the nego tiating areas to find altern atives and pathways that 
would allow positions to converge towards an agreement.  My country, which holds the same 
conviction, would like to thank Australia for the l eadership it has shown in attempting to break the 
inertia that appears to be gripping the negotiating process today. 
135. In more specific terms, we have continued to develop a steadfast and constructive partnership 
in pursuit of greater openness as much in the nego tiations on agriculture as in those on services.  
We also share the same views in the negotiations on  fisheries subsidies, intellectual property and trade 
facilitation. 
136. The Secretariat Report highlights Australia's robust economic performance during the period 
under review.  Thanks to its sound macroeconomic policies and openness to the world, the country 
effectively weathered the turmoil of the globa l financial crisis which erupted in 2008. 
137. At the bilateral level, our trade relationshi p has remained extremely positive.  Trade has 
grown exponentially since the FTA entered into fo rce in March 2009.  In 2010, Chilean exports to 
Australia were up by 30% over 2009, while Australian exports to Chile expanded by more than 71%.  
In terms of foreign investment, Australian capital in Chile represents almost 5% of total investment in 
the Chilean economy. 
138. As regards specific aspects of Australia's trad e policy, my country continues to follow the 
SPS regime closely because of its stringency.  We are aware that protection of human and plant health is a legitimate goal within the WTO, however such measures must be applied in an appropriate way 
so that they do not constitute a disguised restriction on trade.  The stricter a standard is, the finer the 
line between what is lawful and what is not.  We are conscious of the efforts made over recent years  WT/TPR/M/244 
 Page 23 
 
 
  with a view to modifying this regime.  It has been a lengthy process, which still has not yielded 
concrete results in terms of the modifications that  the system requires.  We encourage the Australian 
authorities to pursue this issue, so that when measures are adopted, due account is taken of their 
potential trade effects.  
JAPAN 
139. To start off, Australia is one of our most im portant economic and trad e partners and one of 
our closest friends. Our economies are truly interdep endent. Australia is the largest energy exporter 
and third largest food exporter to Japan, and Japan is  the fourth largest exporter to Australia. There are 
two bilateral agreements which came into effect si nce the last TPR one on Social Security and another 
on Double Taxation. We are now e ngaging in negotiations for an ec onomic partnership agreement. 
We are true strategic partners, and are further deep ening our economic ties. I also wish to express our 
appreciation for Australian assistance extended to Japan in terms of recent earthquake and tsunami 
disaster, which, to our regret, are affected Australian economy as well.  
140. Since many delegations have already stated  many good points of and challenges for 
Australian trade policy, I will only touch upon four poi nts briefly.  Firstly, as the Secretariat Report 
says, Australia has one of the most open economies and a very transparent trade policy framework in 
the world. It also has a strong commitment to the multilateral trad e liberalization. Indeed, we know 
well that Australia has been participating activel y in the recent Market Access negotiations. Japan 
appreciates all these efforts, and is willing to c ooperate with Australia, as well as other Member 
economies.  
141. Secondly, in the area of Aid for Trade, Japan acknowledges that Australia has been 
contributing greatly in the Regional Technical Gr oup (RTG) for Asia and the Pacific on Aid for 
Trade. It is important that Australia and Japan coope rate with each other on Aid for Trade in the Asia 
Pacific region, and Japan is willing to do so in the process toward the Third Global AfT Review 
Meeting to be held here this coming July.  
142. Thirdly, Australia has continued to be an observer of the WTO Agreement on Government 
Procurement (GPA). As a major de veloped country, Australia is expected to commit itself to a 
transparent and non-discriminatory procurement syst em. Unfortunately, there are still some products 
exempted from mandatory open procurement proce dures, and some local governments maintain a 
buy-local policy or preference for local suppliers. As we stated in the previous TPR, we still hope that 
Australia will become a member of  the GPA in the near future.  
143. Fourthly, with regard to the anti-dumping, the measure against polyvinyl chloride 
homopolymer resin exported from Japan has been in for ce for nearly 20 years, in spite of three times 
of sunset reviews. This clearly shows that AD measures are prone to be simply rolled over. In December 2009, The Australian Produc tivity Commission stated in its report that "The longer that 
measures remain in force, the mo re they become protective devices that undesirably shield recipient 
industries from the need to adjust to underlying structural pressures," and the commission proposed 
that extensions of anti-dumping measures, following a sunset review, should be limited to one three-
year term, in other words, the measure should be au tomatically terminated in 8 years. Japan supports 
the observation of the Australian Productivity Commission, and in this context, strongly requests the prompt revocation of this nearly 20 years old measure. 
144. To conclude, Japan would like to reiterate its  hope that Australia will further promote and 
liberalize its trade and investment. Australia is also  our good friend in many of the negotiation fora in 
DDA negotiations and others, a nd Japan hopes that the bilate ral economic partnership and 
cooperation will further develop. WT/TPR/M/244 
Page 24  
 
  CANADA 
145. We are very pleased to participate in this review  of Australia's trade policy.  Australia is a 
country with which Canada shares similar goals on a number of issues relating to  international affairs, 
including the importance of ensuring an open international trading system and a flexible economy based on WTO principles. 
146. Canada enjoys a longstanding trad e relationship with Australia, one of its main economic and 
trading partners, that continues to be dynamic and di versified.  Indeed, Canada 's first trade delegate, 
Mr John Short Larke, was posted to Australia in  1894.  In 2010, Australia ranked as Canada's 
16
th largest destination for merchandise exports, whic h amounted to C$1.8 billion, whilst merchandise 
imports from Australia reached C$1.6 billion in the sa me year.  Aircraft are Canada's leading export 
to Australia, followed by pork.  Nickel ores a nd concentrates are Canada's largest import from 
Australia. 
147. Australia is also a major bilateral partner in  terms of investment.  At the end of 2009, 
Australia's stock of foreign direct investment in Canada amounted to C$4.8 billion, whilst Canada's 
stock of foreign direct investment in Australia increased significantly in relation to 2008 figures, 
rising to 47.1% and C$12.8 b illion at the end of 2009. 
148. The past year was marked by a series of impor tant events for Canada and Australia on the 
international stage.  Canada hosted both the G8 and the G20 Summits and both countries participated 
in a number of important meetings, including a second G20 Summit in Seoul and the Asia Pacific 
Economic Cooperation Summit in Japan in November  2010.  Australia also hosted the inaugural 
Australia-Canada Economic Leadersh ip Forum which brought together distinguished private and 
public sector leaders to share experiences, exchange  ideas, create opportunities, and affect change.  
While the global economic recovery remains fragile , the consensus reached at these meetings sent a 
very important and positive message regarding th e importance of ensuring sustainable growth, 
resisting protectionism, and opening the way for freer trade and investment regionally and internationally.  Canada and Australia have both emerged from the global economic downturn in 
relatively strong standing.  Our open economies, underpinned by strong macroeconomic principles, 
proved to be among the most resilient of the adva nced economies through the global financial crisis. 
149. Canada would like to take this opportunity to congratulate Australia on the leadership shown 
by Prime Minister Gillard, in terms of the ongoing ha rd work that has been done to forge a domestic 
vision on the future of Australia's trade policy.  This includes a strong push to promote an open, transparent, and rules-based global  trading system, strengthening efforts on the Aid for Trade agenda 
through various arrangements, and commitments to  reach a successful conclusion of an ambitious 
Doha Development Round that deliv ers genuine new trade opportunities. 
150. Canada believes that bilateral and regiona l trade initiatives complement and support 
multilateral liberalization efforts – these approaches ar e not mutually exclusive.  We know this from 
our experience in negotiating the NAFTA in para llel to the WTO Uruguay Round of negotiations.  
The successful conclusion of both led to enormous benefits for the Canadian economy.  As such, we 
are pleased to see Australia moving resolutely ah ead, forging initiatives on all platforms with key 
partners.  Canada also looks forward to the outco mes of the Australian Government's review of its 
own trade policy. 
151. Canada commends Australia for implementi ng a number of reforms to enhance the 
competitiveness of its economy since its last WTO Trade Policy Review.  These include bolstering 
productivity through various domestic investment s, removing internal regulatory obstacles, 
liberalizing sectors through unilatera l tariff reductions, and improving the quality of financial advice.   WT/TPR/M/244 
 Page 25 
 
 
  These achievements are even more impressive agai nst the backdrop of the formidable challenges 
faced by the Australian economy during the global economic downturn. 
152. Canada appreciates the very activ e and constructive role that Australia continues to play in 
building momentum towards a successful conclusion  of the ongoing Doha negotiations, including its 
leading role as the Chair of the Cairns Group.  Ca nada supports Australia's objectives to achieve a 
more open global trading environment, by expand ing market access and creating new trade flows in 
agriculture, industrial products and services, as well as reducing subsidies and strengthening WTO 
disciplines.  Canada is also interested in Aust ralia's policy and regulatory initiatives related to its 
resource industries and, in particular, with respect to  the metals and minerals sector, which are taking 
place in the context of increasing globalization. 
153. Despite Australia's open and transparent trading sy stem, there are relevant areas of Australia's 
trade policy where Canada harbours concerns and be lieves that improvements can be made.  Related 
to beef market access, as is noted in the Secretariat Report, Australia's process of lifting import restrictions includes the implementation of a risk assessment that is still not in line with the OIE 
guidelines.  As we have risen in our written ques tions, Canada remains concerned that Australia's 
assessment process and requirements go beyond the provi sions of the OIE's Terrestrial Animal Health 
Code.  We have also raised concerns that Aust ralia is not prepared to immediately accept boneless 
beef from countries which have had BSE given that  this is a commodity which is exempt from 
specific BSE related conditions under the Code.  Ca nada has therefore asked why Australia has not 
aligned its BSE import policy to OIE guidelines.  Given the importance of OIE standards for 
international trade, Canada looks forward to  carefully reviewing Australia's response. 
HONG KONG, CHINA 
154. Hong Kong, China maintains close trade and econom ic relations with Australia which in 2010 
was our 17
th largest trading partner.  Bilateral trade amounted to US$7 billion last year, and has 
averaged growth rate of 5% a year for the past fi ve years.  On investment, as at the end of 2009, 
Australia was the 16th largest source of inward direct investment into HKC, and also the 10th biggest 
destination of outward direct investment from HKC.  We are encouraged by the healthy growth in the 
economic relations between the two places, and are confident that our ties will only get closer. 
155. I now turn to some specific areas in Australia’s  trade regime.  On tariffs, we are very pleased 
to note that Australia is committed to a forward- looking programme of furthe r tariff reductions and a 
simple tariff structure, and thus a freer environment for its trading partners.  The average applied tariff 
rate was reduced to just over 3% in 2010, with no nuisance tariff applied.  Besides, almost all tariff 
lines are now subject to only four ad valorem rates.  We would encourage Australia to simplify its 
tariff structure further by removing the non- ad valorem  rates applied to the few remaining lines. 
156. On agriculture, we commend Aust ralia for maintaining a liberal regime.  According to the 
Secretariat Report, Australia’s average applied MFN tariff for agricultural products is 1.4%, and total 
support for agriculture dropped to 0.1% of its GDP  in 2009, the lowest among all OECD countries.   
157. As the convenor of the Cairns Group, Australia seeks to achieve  an ambitious outcome for the 
agricultural negotiations in the Doha Development Agenda, with substantial improvements in market 
access, elimination of export subsidies and reductions  in trade-distorting domestic support.  As the 
DDA is at a critical juncture, we look forward to Australia’s continued leadership in working with 
other Members to bridge the remaining gaps in this  key negotiating area.  These in our view may not 
be as wide as they are perceived, if we take in to account the prevailing macroeconomic conditions and 
global trends. WT/TPR/M/244 
Page 26  
 
  158. Services continue to be the largest and fastest  growing sector in Australia.  We appreciate 
Australia’s openness to foreign investment.  We  welcome in particular the reduction of the 
compliance costs related to notifications and the re moval of foreign ownership restrictions in the 
media sector.  We would also like to commend Austra lia for its commitment to reduce trade barriers, 
through unilateral removal of barriers to trade and investment on a non-pr eferential and multilateral 
basis. 
159. HKC and Australia share very similar ambitions in pursuing further liberalisation of trade in 
services.  We have been working closely togeth er in the market access and the rule-making 
negotiations on the services front.  We look forward to  continued co-operation with Australia in these 
respects. 
160. Apart from Agriculture and Services, Australia also  plays an active role in driving forward the 
negotiation on trade and environment.  To this end, Australia, HKC and several like-minded Members 
have recently proposed a hybrid approach liberali sation of environmental goods, aimed at providing a 
solution acceptable to all Members.  Thanks to the hard work of Au stralia and other co-sponsors, the 
proposal received positive responses from Members.  We will continue our work in this respect, and 
also in connection with environmental services, and we are hopeful that our joint efforts will come to 
eventual fruition. 
161. HKC and Australia have a common belief th at trade facilitation measures will bring 
substantial benefits to internati onal trade, and we welcome Austra lia’s continual efforts to make 
improvements in this regard.  According to the Secretariat Report, in addition to launching an 
Integrated Cargo System in 2005, Australia has implemented an Enhanced Trade Solutions Program 
to provide for paperless trading and other bor der-clearance improvements.  The reduction of 
documentation requirements and the speeding up of clearance and release of goods at borders will 
bring about a welcome reduction in co sts for both businesses and governments. 
162. We have heard some comments today about the strict SPS regime that Australia maintains.  
While taking note of the various legitimate objectiv es behind the SPS measures in question, we trust 
that Australia would continue to follow the prin ciples of the SPS Agreement in maintaining and 
developing its SPS regime. 
163. HKC and Australia are both staunch supporters of the multilateral trading system, and we 
have been working closely togeth er on different fronts in the DDA ne gotiations.  While the challenges 
facing us are enormous, HKC is not going to gi ve up easily.  We look forward to continued 
cooperation with Australia and th e team led by Ambassador Tim Yeend here in Geneva towards 
upholding the integrity of the multilateral trading sy stem and pursuing progressive trade liberalisation. 
EUROPEAN UNION 
164. I will start with a few facts that demonstrate the importance of this sixth review.  Australia is 
one of the largest, and according to the WTO Secretar iat's Report, also one of the most open trading 
entities in the WTO. The EU is Australia's second-la rgest trade partner.  In 2010 the total level of 
cumulative EU-Australia two-way trade in goods amounted to nearly €37billion – representing almost 
13% of total Australian trade. Furthermore, the EU  remained Australia's leading investor accounting 
for 34% of total foreign direct investments in Australia in 2009. 
165. Our trading relationship takes mostly place under the WTO umbrella. In addition, we also 
established bilateral channels to strengthen our trade relationship, notably in an annual informal Trade 
Policy Dialogue. The EU is looking forward to c ontinuing this open and productive relationship.   WT/TPR/M/244 
 Page 27 
 
 
  166. The EU is very pleased that the Australian ec onomy has been resilient in the face of the 
global economic downturn and that its  rates of growth have exceeded the OECD average every year 
for almost two decades. We also note that Australia has retained the fundamental features of its Trade 
policy despite the recent challenges and appreciate th at "Australia's trade policy framework continues 
to be characterised by an unusually high degree of transparency" - as stated in the WTO Secretariat's 
Report. We share Australia's ongoing commitment to a rules-based and transparent multilateral 
system, and acknowledge many positi ve developments since the last  review, as highlighted in the 
reports.  
167. One such development has been - according to the WTO Secretariat's report – Australia's 
further strengthened protection of intellectual prope rty rights. Although we have raised some specific 
questions in this area in our advance written ques tions, we nevertheless would like to acknowledge 
the progress made in this area and also the important  role Australia played in concluding the ACTA 
agreement. I would also use this opportunity to hi ghlight the importance of the new bilateral wine 
trade agreement between the EU and Australia which entered into force in September 2010.  
168. Australia's overall economic performance, transpar ency and the volume of international trade 
continues to be impressive and Australia retains an important position in the international trading 
system. But the current review also allows for comments on those areas where Members think 
improvements would be needed and the reports highlight of those areas.  
169. The EU has submitted detailed questions on a number of sectors. Let me draw your attention 
to some issues where we believe further efforts from Australia could significantly enhance trade and 
improve trading practices.  
170. Since the previous Trade Policy Review, in 2007, Australia has continued its process of 
regulatory reform with a view to delivering pro ductivity gains and reducing compliance costs. We 
note however, from the Secretariat's Report that structural reforms seem to have slowed down or failed to deliver since the last review. We encourag e Australian authorities to continue their structural 
reforms and we would again underline the need for this process to include both regulatory issues and 
non-tariff barriers. In this respect we would again ur ge Australia to join the Government Procurement 
Agreement. 
171. Another important issue relates to the tax system and its reform process. It is not encouraging 
that the tax system remains a major source of wh at I would describe as "irritation". Whilst the EU 
notes that a substantial tax reform programme is unde r way, and that some progress is being made in 
relation to compliance costs for business, we would again urge Australia to tackle other burdensome 
taxes such as the luxury car tax and the wine equa lisation tax, in particul ar, which have direct 
discriminatory effects on European imports. The special Luxury Car Tax was recently raised from 
25% to 33%.  With all due respect to other car-producing WTO Members, you do not need to be a trade lawyer to prove that luxury cars are European  – simple as that. The EU encourages Australia to 
abolish the luxury car tax and revise the wine produ cer rebate, both of which were also recommended 
in Australia's own internal review of  its tax regime - the Henry Review. 
172. Last but not least there are concerns regardi ng SPS measures. Australia needs to establish fair, 
non-discriminatory and transparent rules for agricultural imports, and in particular to align its SPS measures with international guidelines and standards as recommended by the Beale review.  As stated 
in the Report "SPS measures are taken without … cost-benefit analyses" and "SPS measures include stringent quarantine requirements". I remind you of  the significant backlog of outstanding market 
access requests that are yet to be reviewed; in real economic terms, these measures amount to a 
significant non-tariff barrier to EU imports; the EU can only continue to encourage Australia to speed 
up the revision process as we all know the importance of eliminating non-tariff barriers.   WT/TPR/M/244 
Page 28  
 
  173. To conclude on a more positive note which Aust ralia more than deserves. The EU applauds 
the transparency of Australia's trade policies and the important role that Australia continues to play in 
reinforcing the multilateral trading system, including in the exercise of monitoring the protectionist 
policy responses to the global economic crisis and through its involvement in the G20. We share 
Australia's keen interest in upholding and strengthening the WTO system, including of course via the 
successful conclusion of the DDA negotiations in 2 011 on which the EU cooperates intensively with 
Australia. 
PAKISTAN 
174. Australia's economy and trade policy is character ized by its openness, integration into the 
global economy and soundness of ec onomic fundamentals resulting in continuous growth for nearly 
two decades before the global crisis.  The Australia n economy remained relatively unharmed by the 
global financial crisis as it rebounded after just  a quarter of negative growth.  This success was 
undoubtedly attributable to a strong demand for its co mmodity exports reaching to the highest level in 
60 years, a timely response to the crisis, strong in stitutional and policy linkages reflected in a healthy 
baking sector, low interest rates and a robust exchange ra te.  It is also of note that trade liberalization 
has been a major feature of Australia's structural re forms leading to greatly improved terms of trade as 
a vital component of its strong economic pe rformance during the period under review. 
175. Among the features of its trade policy, the gradua l shift of merchandise trade towards Asia is 
noticeable.  Although historically a producer of agricultu re, minerals and energy, it is fast diversifying 
its export base.  We recognise Australia's commitment to the multilateral trading system and its active role in the WTO, especially as related to commitmen ts in the areas of services and agriculture.  We 
recall that Australia was one of the 23 signatori es to GATT in 1948.  Within the WTO, it is the 
coordinator of the Cairns Group, a nd regionally an active APEC member.  At the same time, there has 
been a broadening of bilateral and regional pref erential trade relations, including the ongoing dialogue 
related to TPP and negotiations with China, Japan and Korea.  Its preferential agreements go beyond 
WTO in a number of areas, including services, inv estment and intellectual property.  Australia has 
reduced its average applied MFN tariff rate to 3. 1% and unilaterally reduced tariffs, including peak 
rates applied to TCF, while further unila teral reductions are envisaged by 2015. 
176. However, as reported in the Secretariat's Re port, we are concerned that Australia's non- ad 
valorem  rates conceals relatively high tariff rates, incl uding those on items of export interest to the 
developing countries such as TCF, having relatively high effective rates of protection.  Its SPS 
measures are also considered overly stringent and without a cost-benefit analysis related to trade 
effects of such measures. 
177. The Report by the Secretariat has expressed concerns about the downside risks to the 
Australian economy resulting from withdrawal of the US$50 billion economic stimulus package, 
impact of continuing global fragility, increasing exposure to commodity price fluctuations, and indebtedness.  We hope that Australia would mana ge to overcome these problems and retain its robust 
growth pattern. 
178. Pakistan's main imports from Australia include oilseeds, fruits, fertilizers, coal and vegetables 
while it mainly exports textiles, clothing, rice, a nd cotton fabrics.  The trade balance is tilted in 
Australia's favour which needs to be balanced.  Aust ralia has been a consistent  supplier of food items, 
education services and other industries offering significant potential, especially health, telecommunication, technical assistance, and oil and gas.  There is a significant potential for 
expanding our trade relations.  WT/TPR/M/244 
 Page 29 
 
 
  INDONESIA 
179. For many years, Australia has been, and con tinues to be, one of Indonesia's major economic 
and strategic partners.  Australia and Indonesi a enjoy a wide-ranging relationship, encompassing 
extensive cooperation in political, security, commerce,  and development.  These linkages have been 
expanded and strengthened in recent years, reflecting a shared commitment to advancing our 
cooperation both bilaterally and at the regional level. 
180. In July 2007, Australia and Indonesia agreed  to undertake a joint feasibility study on the 
merits of a bilateral free trade agreement.  The comprehensive FTA, allowing for the freer movement 
of goods, services, investment capital and people, offered an excellent opportunity to expand the 
bilateral economic linkages between Indonesia and Aust ralia.  Such deeper economic integration also 
strongly complements the already close strategic, s ecurity and political engagement between the two 
countries. 
181. Since November 2010, Indonesia and Australia have pre-negotiated the Indonesia-Australia 
Comprehensive Economic Partne rship Agreement covering the areas of economy, trade and 
investment with the objective of fostering closer a nd mutually beneficial tr ade relationships between 
the two countries.  It is my firm belief that th e IA-CEPA will not only take  our bilateral economic 
relationship to new heights, but will also serve as a good model for removing the tariff and non-tariff 
barriers on trade in goods and services, which is, as we all know, is one of the fundamental objectives 
of the WTO. 
182. Given that Australia is an important trading part ner for Indonesia, we have a keen interest in 
better understanding Australia's trading system.  With  this in mind, we have submitted several written 
questions concerning various aspects of Australia's trade and economic policies.  
183. I would like to make some comments about a number of Australia's economic and trade 
policies which we would believe requi re further review and improvement. 
184. As outlined in the Secretariat Report, Aust ralia continues to impose prohibitions and 
restrictions on imports in the for of, for exampl e, stringent quarantine measures, and technical 
requirements which are higher than the accepted interna tional standards.  Australia also continues to 
apply export controls and the quantitative restrictio ns policies on certain agricultural goods such as 
wheat, barley, rice, and sugar.   
185. Indonesia also shares the concern about both the stricter requirements demanded for 
packaging for the requirement for all coffee product s exported to Australia to be fumigated by a 
company determined by the Australian Government. 
186. With regard to the policy on food labelling and mandatory product information standards, we 
note that clothing, textile products and other c onsumer products including sunglasses, cosmetics and 
toiletries and tobacco products are subject to "care labelling".  Mandato ry energy consumption 
labelling is also a requirement on appliances such  as refrigerators, freezers, clothes washers and 
dryers.  In this regard, we wish to ask how fa r the implementation of the labelling and packaging 
requirements has gone and request further informa tion about the incorporation of these requirements 
into Australia's national standards in 2010. 
THAILAND 
187. Thailand and Australia have enjoyed a long we ll-established trade and economic relationship 
covering various aspects of commerce and investment.  Our two-way trade during 2005-09 amounted 
to more than triple that of the 2000-04 period, af ter the implementation of the Thailand-Australia Free WT/TPR/M/244 
Page 30  
 
  Trade Agreement and the Agreement establishing the ASEAN-Australia-New Zealand Free Trade 
Area.  Currently, Australia ranks sixth as our top trading partners and our export market.  We are 
confident that our trade and cooperation in the bi lateral, regional and multilateral relationships will 
continue to flourish in years to come. 
188. When reading the trade policy review Reports of  Australia, it is remarkable to notice that 
these Reports are filled page after page of commenda ble records which indeed serve as an example of 
the benefits from an open trade regime of Austra lia.  For instance, the Australian economy is now in 
its 19
th consecutive year of economic growth.  Despite  the global financial crisis causing its economic 
growth to slow down from 3.8% in 2007-08 to 1.4% in 2008-09, the downturn has proven to be one of 
the mildest in the developed economies and the Au stralian growth rebounded to 2.3% in 2009-10 due 
to the sound performance of exports, flexibility of  exchange rate, a healthy banking sector, and a 
timely and appropriate policy response to the crisis. 
189. We are also pleased to note the achievement of Australia in maintaining the high level of its 
openness and transparency to preserve and build up on the strength of the rules-based multilateral 
trading system.  Thailand strongly believes that the pursuit of significant reform and more 
liberalization across the regimes relating to tariff, ser vices, and foreign investment form part of this 
achievement. 
190. It is well accepted that Australia is an important player in the multilateral trading system.  
Australia's active participations in all areas of th e DDA negotiations are often characterized by her 
constant search for compromises among Members.  We are confident and look forward to that Australia will continue to play this constructiv e role in the run up to the conclusion of the DDA 
negotiations. 
COLOMBIA 
191. The world financial crisis in 2008-2009 has b ecome a necessary reference point for evaluating 
economic performance of  countries in general, and of our WTO tr ading partners in pa rticular.  Thanks 
to its pro-active approach, Australia came through  the financial crisis unscathed, with a strong 
rebound in growth in 2009 and 2010, and preparing for the future by taking appropriate and wise 
decisions. 
192. An analysis of Australia's economic policy point s to some of the factors which have brought 
about such successful results:  Op enness:  Australia has one of the most open economies in the world.  
The unilateral reductions in tariffs introduced in 201 0 lowered the average applied MFN rate to 3.1%.  
Competitiveness:  Australia has one of the most competitive economies in the world, having secured 
an honourable 16
th rank for 2010-2011 in the World Economic Forum indices.  And sound 
macroeconomic policies and reforms of the economic, education and production systems. 
193. In the trade sphere, Australia remains committed to preserving a nd consolidating a transparent 
rules-based multilateral system.  Colombia is a witn ess to the firm commitment Australia has made to 
the satisfactory conclusion of a balanced and ambiti ous Doha Round.  Moreover , consistent with the 
country's view of trade as the foundation of its ec onomy, Australia's global strategy includes entering 
into bilateral and regional free trade agreements. 
194. Australia is not afraid of reform;  on the cont rary, reforms have been a driving force behind 
the continued strength of its economy.  We are please d to note that since the last Review Australia has 
adopted several measures, which include investment in infrastructure and technical expertise in order 
to improve productivity and education reform;  and reform of employment services and skills 
programmes.  In a move towards a seamless nati onal economy, Australia has removed obstacles to 
business, having completed 12 procedures to reduc e unnecessary regulation, which will be extended  WT/TPR/M/244 
 Page 31 
 
 
  to 15 additional areas by 2013.  This includes the aforementioned unilateral tariff reductions in the 
automotive and textile, clothing and footwear sectors;  the planned reform of the Future of Financial 
Advice programme to improve efficiency and to pr ovide a secure funding base into the future;  and 
progress towards a single national industrial relations system. 
195. A matter which, in our opinion, is in need of review is the use of government procurement as 
a tool for industrial development in the procurem ent of some services and the acquisition of motor 
vehicles.  Reserve requirements, margins of preference for local suppliers and local-content 
requirements are not consistent with Australia 's policy of openness and market competition. 
196. Colombia and Australia both belong to major forums, one of which is the Cairns Group.  
We recognize Australia's leadership role as coor dinator, as it seeks to drive negotiations forward on 
reforming practices affecting pro duction and trade in agricultural products and, more specifically, to 
deliver substantial improvements in market access,  elimination of export su bsidies and substantial 
reductions in domestic support. 
197. Overall trade between Colombia and Australia has trended upwards in recent years, from 
US$39.5 million in 2005 to US$69.6 million in 20 10, mainly as a result of increased imports from 
Australia.  Colombia has posted a mounting trade de ficit, although in 2010 the deficit narrowed owing 
to a significant decline in imports. 
198. In 2010, Colombia's top exports to Australia we re coffee, chemicals, lyophilized coffee, light 
industry products, paper, machiner y and agro-industrial products.  The main imports from Australia in 
the same year were machinery, chemicals, agricultural products, metallurgical products, and motor 
vehicles and parts. 
VIET NAM 
199. We would like to take this opportunity to express our support to the ASEAN statement.  
Furthermore, we would like to thank the Australi an delegation for its very fast response to our 
questions which we have just submitted yesterday.   We will convey these responses to our capital for 
more careful examination. 
NEW ZEALAND 
200. New Zealand's trade and economic relationship w ith Australia is the most extensive and the 
deepest New Zealand has with any bilateral partner.  Australia is New Zeala nd's most important export 
market; it is New Zealand's largest source of merc handise trade; it is the largest source of foreign 
direct investment into New Zealand; the most significant destination for New Zealand investment 
offshore; and the largest inbound tourism market for New Zealand.   
201. In turn, New Zealand is Australia's eighth la rgest trading partner and Trans-Tasman trade 
flows have increased by almost $5 billion over the last ten years, at a greater rate than with Australia's 
other traditional trading partners.  Twice as many Australian firms export to New Zealand as to the 
next most significant destination for Australia – the United States. 
202. The foundation for this trade a nd economic relationship is the Australia New Zealand Closer 
Economic Relations Trade Agreement – or CER for short.  Signed in 1983, CER achieved free trade 
in all goods and nearly all services by 1990.  CER then expanded into a number of agreements and 
arrangements to reduce non-tariff barriers and co mpliance costs through policy coordination and 
mutual recognition – the most recent of which is  the CER Investment Protocol signed by our two 
Prime Ministers in February this year.   WT/TPR/M/244 
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  203. As part of the natural evolution of CER our Governments are now focused on the shared goal 
of a seamless trans-Tasman business environment, or Single Economic Market (SEM).  The SEM is a 
journey or continual evolution to further redu ce compliance costs for businesses operating in both 
economies, and promote the competitiveness of the trans-Tasman economy.  
204. We congratulate Australia on the active role it plays in promoting trade liberalisation. We 
share Australia's view that multilateral negotiations  through the WTO are the most effective way to 
achieve real trade liberalisation on a global scale, including through the elimination of trade-distorting 
subsidies.   
205. Complementing our bilateral and multilateral effo rts we are also active together in regional 
settings.   Since the fifth trade policy review of Aust ralia, we have worked together with Australia in 
concluding with ASEAN the ASEAN-Australia/New Zealand Free Trade Agreement.  This 
Agreement represents yet another milestone in the closer economic relationship between our two economies – the first time the CER partners have collaborated on an FTA with third countries.  This 
FTA has created a market of just under 600 million pe ople and this "living" agreement is helping to 
enhance our joint integration in a rapidly integrating region   
206. New Zealand and Australia are again working cl osely in the context of the Trans Pacific 
Partnership negotiations as we seek to  achieve on a regional basis a truly 21
st century free trade 
agreement that strengthens economic  integration in the Asia-Pacific region.  Our experience over the 
nearly thirty years since the CER Agreement was si gned highlights for us the significant gains to be 
made from a 21st century agreement that goes beyond simply  removing issues at the border, and like 
the CER Agreement addresses broader issues influenci ng closer integration between economies.     
207. We congratulate Australia on its impressive rate  of economic growth over the past decade or 
so – nineteen consecutive years of growth is indeed  impressive.   It is clear that earlier economic 
reforms positioned Australia well to weather the impacts of the Global Economic Crisis and it has 
emerged from the crisis as one of  the best performing developed ec onomies.  As Australia continues 
to undertake economic and regulatory reform, in par ticular the work underway within the Council of 
Australian Government on a Seamless National Economy, we will continue to look to identify jointly 
areas where further policy alignment will benefit tr ans-Tasman trade and ec onomic integration.   
208. New Zealand enjoys a close and collaborativ e relationship with Australia on biosecurity 
issues.  We welcome the close cooperation and cons tructive bilateral dialogue following the release of 
the WTO Appellate Body's report on the Au stralia-Apples case and we look forward to 
implementation of the findings within the agreed timeframe.  
209. In closing, I would like to emphasise the va lue we place on the close working relationship 
New Zealand enjoys with Australia  as we seek to progress the wide range of multilateral, regional and 
bilateral initiatives outlined in this statement.   
PARAGUAY 
210. Australia stands out as one of the developed ec onomies to have staked a great deal on trade 
liberalization as a cornerstone of its developmen t policy.  Although we can see from the Reports 
presented today that the Australian economy, as indeed  all other economies in the world, was affected 
by the crisis and experienced a growth slowdow n, implementation of cautious and sound policies 
enabled it to make a rapid recove ry, with growth rebounding to 2.3% in 2009-2010.  On this point, we 
would like to highlight the example set by Australia's handling of the crisis:  Rather than giving in to 
protectionist tendencies, it turned to trade liber alization measures and stre ngthened its traditionally 
transparent policy.  In this context, it is importa nt to highlight the unilateral liberalization measures 
adopted in January 2010 in sectors such as textiles, clothing and footwear.  WT/TPR/M/244 
 Page 33 
 
 
  211. On another note, as a landlocked developing co untry Paraguay has a strong interest in the 
progress that can be achieved through trade facilitatio n.  We would therefore like to know more about 
the Enhanced Trade Solutions Programme, whic h has streamlined export and import customs 
procedures. 
212. Within the framework of the Doha Round, the Australian delegation has an important role to 
play, particularly as Coordinator of the Cairns Gr oup, of which Paraguay is a member.  We both share 
the same objectives of achieving an ambitious outcome that would deliver improved market access, substantial reductions in do mestic support and the elimination of export subsidies. 
SRI LANKA 
213. Sri Lanka is glad that the Australian economy is in its 19 consecutive year of economic 
growth in particular during the global financia l crisis.  Sri Lanka shares many commonalities with 
Australia.  On the bilateral side, trade investment  and tourism have developed steadily between the 
past three decades.  Australia is an important tr ading partner for Sri Lanka, a significant market for 
exports. 
214. There has been a significant increase in the tota l trade between the two countries over the past 
few years, while the balance of trade continues to be  in favour of Australia.  Our main export has been 
tea, however a significant development in Sri La nka's exports to Australia shifted from primary 
commodities to manufactured goods.  On the other hand, Australia has been  a supplier of dairy 
products and foods.  In recent years, several ne w items have added to the list of imports from 
Australia. 
215. As an investment partner, Australia is one of the major sources of FDA operating in diverse 
sectors.  I would like to emphasize that Sri Lanka do share other delegations concerns with regard to 
the strict SPS regimes quoted as stringent in the Secr etariat Report.  Sri Lanka encourages Australia to 
relax SPS measures to ensure an export friendly regime.      WT/TPR/M/244 
Page 34  
 
  V. REPLIES BY THE REPRESENTATIVE OF AUSTRALIA AND ADDITIONAL 
COMMENTS 
216. I would like to start with some general remark s about the process and then discuss in more 
detail the issues that have been raised by Members.   As I said on Tuesday, Australia strongly supports 
the TPR process and the contribution it makes to en hancing transparency a nd building confidence in 
the multilateral trading system.  We appreciate the co nstructive nature of the statements that Members 
have made as well as the many thoughtful questions a nd concerns that have been raised.  I am pleased 
to note that we have been able to provide writte n responses to all the 400 plus questions posed up to 
and during this process. 
217. In with regard to Australia's economic climate,  at the outset, I would like to thank Members 
for their positive comments on our economy and trade policy regime.  There were a number of 
comments recognising our institutionalised and tran sparent trade policy regime, and our success in 
weathering the global financial crisis.  we are pr oud of our record as one of the best performing 
economies in the developed world and we have worked  hard to achieve it. We appreciate Ambassador 
Kwok's positive assessment of Australia's economy a nd his insightful comments on our trade policies 
and practices and the useful framework he has provided for our discussion  
218. I would like to focus this morning's discussi on on the following themes that emerged from 
Members' statements and questions:  Australia's  structural reform and efforts to enhancing 
productivity; our biosecurity regime;  our approach  to government procurement and screening process 
for foreign investment, as well as our appr oach to standards and regulations.   
219. With regard to Australia's ongoing efforts in  the area of structural reform and enhancing 
productivity, Australia has always had a strong sense  that you cannot afford to stand still and the 
Australian government, like previous governments, is committed to ongoing reform and improving 
productivity as well as continuing to subject our pub lic polices to rigorous analysis and debate, 
including through the independent Productivity Commission.  
220. As part of the Government's reform agenda we  agreed in particular on efforts to remove 
internal regulatory obstacles to private business.  In 2008 the Council of Australian Governments or 
COAG agreed to a National Partnership Agreement to reduce the costs of regulation and enhance productivity and workforce mobility. The National Partnership Agreement to deliver a Seamless 
Economy involved 27 regulatory reform priorities,  eight competition reforms and the reform of 
regulation making and review.  The COAG reviewed  progress in February 2011, and recognising the 
good progress that had been made, agreed to br ing forward the completion date from 2013 to 2012 
and to develop a further wave of regulatory and competition reforms. 
221. As some Members have pointed out, Australia's  Multifactor Productivity or MFP growth has 
declined in recent years. MFP measures output in real value added terms obtained from a combined 
unit of capital and labour.  This decline is of real  concern to policy makers, though, it should be noted 
that, detailed analysis reveals that part of the d ecline can be attributed to one- off and measurement 
issues.  For example, mining with declining resour ce quality and large capital investment that has not 
yet translated into output;  in the area of electri city, gas and water with increased capital investment 
and reduced rainfall from sustained drought through much of the 2000s;  and in agriculture the drought has had an impact on productivity in that sector. 
222. It is important to note these factors, however we do not think that this should not be seen as 
evidence of complacency within Australia. It is well understood that a return to higher productivity 
growth will only be achieved through a reinvigorated reform agenda.  The Australian Government is 
taking up this challenge through a comprehensive re form program targeting the short, medium and 
long term drivers of productivity growth.  This  agenda includes: maintaining macroeconomic  WT/TPR/M/244 
 Page 35 
 
 
  stability, including low and stable inflation which pr ovides greater certainty for firms and individuals 
thereby encouraging greater investment and innovation;  we are focussing on ensuring the economy is flexible and that incentives exist to encourage our labour and capital resources to move to their 
highest value uses, and through investments in infr astructure, for example, in telecommunications, 
through the National Broadband Network, freight and export infrastructure in the national road 
network, in health and in hospitals, in education and investments in skills. 
223. Let me now turn to three themes that have emerged from Members' statements on Australia's 
biosecurity regime.  Those comment s were focussed on the strictness of our measures, the change to 
the use of the term biosecurity, and the need to undertake a cost benefit analysis on SPS measures.  
224. I should make clear that Australia makes no apologies for maintaining a regime, which 
through science based measures meets our appropriate level of protection.  The introduction of a 
serious exotic disease or pest to Australia could ha ve significant implications for the economy and our 
unique natural environment.  In 2002, for example, the Productivity Commission modelled the economic costs to Australia of a 12 month outbreak of foot and mouth disease at between $A8 and $A13 billion. Similarly, following the discovery of  red imported fire ants in Queensland, the 
Australian Bureau of Agricultural and Resource Econom ics estimated the potential cost of this pest 
over a 30 year period to be nearly $A9 billion.  
225. Australia manages a world class biosecurity system and as recent reviews have shown, we 
continue to look at ways to improve the efficiency and transparency of our system. We have noted Members' questions on the change in terminology fr om quarantine to biosecurity.  The move to the 
use of the term biosecurity is about adopting a more  proactive and multilayered approach that looks at 
pre border, border and post border activities, rather than  a focus on interception.  In this regard, I think 
it is important to clarify that Australia has never maintained a zero risk approach when applying our 
SPS measures, and we certainly ha ve not moved from a zero risk approach in relation to the 
movement to the use of the term biosecurity. 
226. We have completed 13 IRAs in the last five years on agricultural commodities from a wide 
range of trading partners and Au stralia does have significant two way trade in agricultural products. 
227. The Secretariat and some Members have raised th e issue of cost benefit analysis of our SPS 
measures.  As I have said before the Austra lian Government is committed to a science based 
quarantine system, implemented in accordance with  the SPS Agreement and which does not create 
arbitrary barriers to trade.  It is not clear to us that undertaking the kind of cost-benefit analyses 
envisaged in the Secretariat Report would be consistent with our obligations under the SPS 
Agreement. 
228. Many of you have asked about Australia's appro ach to government procurement.  Australia's 
Federal Government maintains an open procuremen t system underpinned by the principles of non- 
discrimination and transparency.  The Australian Government in fact explicitly requires equal 
treatment of all suppliers regardless of origin.  Th is is better treatment than that provided by some 
Members of the GPA and the Australian system does not discriminate against non-GPA members. 
229. Encouraging competition is a core principl e of Australia's government's procurement 
framework. It is in the context of increasing comp etition in the procurement market that Australia 
(both at the commonwealth and state level) works to ensure that small and medium enterprises are 
able to engage in fair competition for government  business and are not unfairly discriminated against 
vis-à-vis  large corporations. It is not our policy to  attempt to impose uniform implementation of 
government procurement policies throughout the countr y.  I would note however that Commonwealth, 
state and territory government entities are bound by Au stralia's international government procurement 
obligations. WT/TPR/M/244 
Page 36  
 
  230. The question of Australia's non-discriminatory GP regime is a separate matter to the question 
of Australia joining the GPA.  We have been cl osely following the negotiations on the revised GPA 
since it was provisionally adopted more than four y ears ago.  We have not joined the GPA due to 
concerns we have with the Agreement including that  the GPA seems to require a range of prescriptive 
and inflexible rules.  Examples include provisions on selective tendering, time limits, limited 
tendering, negotiations and domestic  review procedures, all of which contain a degree of over-
prescription or inflexibility that could negatively in fluence Australia's practices without clear benefit 
to procuring entities or suppliers , either domestic or foreign. 
231. Some Members have raised th e need for Australia to look into improving its foreign 
investment screening process.  The Government welcom es foreign investment and that is clear.  It has 
helped build Australia's economy and will continue to  enhance the well being of Australians into the 
future. While Australia maintains a broad forei gn investment screening framework, we impose few 
actual foreign investment restrictions.  The Govern ment has not blocked a business application since 
2001.  Only 0.1% of applications of screened inv estments in 2008 to 2009 were rejected of the 58% of 
applications approved subject to c onditions, all but fi ve of these related to real estate purchases.   
232. As Members are aware, we have made recent ch anges in liberalising our foreign investment 
regime and we will continue to re view the appropriateness of our fore ign investment rules to ensure 
we maintain the right balance between protecting Au stralia's national interest and ensuring Australia 
is seen as a welcoming destination for foreign capita l.  In response to a number of questions, we 
provided Members with more information on our fo reign investment screening process, including the 
range of criteria, for example, in particular th e factors typically considered in assessing whether a 
proposal is contrary to national interest. 
233. Finally, on Australia's standards and regulati ons, we have a long history of harmonising our 
standards with international standards.  Some Members referred to the WTO Secretariat's Report which noted that 38% of all Australian standards are either identical or modified versions of 
international standards.  I would like to point out, however, that many Australian standards are 
developed in areas where there are no international st andards.  And if you look more closely, in cases 
where there are existing internati onal standards, 97% of the corres ponding standards in Australia are 
either identical or modified versions of that in ternational standard as the WTO's Report points out.  
234. In conclusion, many of you have recognised Australia's commitment to concluding the Doha 
Round as well as the benefits of an early conclusion.   Certainly Australia's experience, including in 
successfully weathering the GFC, has highlighted the benefits of trade reform and the costs of not 
concluding the Round.  We all have a major stake in bringing the Doha Round to a successful 
conclusion and that it is why Australia will continue  to work with other WTO Members to strive to 
conclude the Round this year.   
DISCUSSANT 
235. Thank you Hamish for your statement which comprised comprehensive responses to the 
questions asked by Members. Having listened to a ll the statements delivered on Tuesday and today, 
including the closing statement Hamish just made, it is quite clear that a Member's Trade Policy 
Review does not end when the TPR session in Gene va draws to a close. For the hardworking 
Australian team which has already impressed us thus fa r, I am certain that their work will continue in 
the days and months ahead as they return home.  It is, in fact, only after hearing directly from delegations that a more informed process of intr ospection and consultati on can begin for Canberra, 
across the various federal departments, and indeed with the state and local governments. From the 
responses we have heard so far we can see that this process is already in place.   WT/TPR/M/244 
 Page 37 
 
 
  236. Through delegations' interventions on Tuesday, the written questions they had submitted, as 
well as from Australia's prompt written replies whic h we all appreciate, there was an exchange of 
views and information on the key areas of concern in Australia's trade policy and practices.  Not 
unexpectedly, the main issues raised centred around Australia's policies relating to biosecurity and 
SPS measures, government procurement, foreign inv estment regime, tariff structure issues, and 
taxation.  This very well-prepared team was not ta ken by surprise, and indeed some of these concerns 
have been addressed both in the written replies, and in Hamish's closing statement.  Members will no 
doubt contemplate these responses carefully he re in Geneva and in their capitals. 
237. On biosecurity, it is heartening to note that the underlying theme in Australia's responses is 
that they are reviewing the process to take into acco unt the need to facilitate  trade while keeping the 
high standards they uphold for themselves, which they  understand to be their prerogative.  The cost-
benefit analysis suggested is viewed by Australia  not to be a requirement under the SPS agreement.  
However, as very constructively mentioned by many  Members on Tuesday, we urge Australia, in the 
review of their systems, to consider the impor tance of ensuring the ease of business and products 
entering Australia. 
238. On the GPA, we have heard th e concerns that Australia raised as reasons for not having 
joined the agreement.  We all know that the GPA is  in fact under review, and we welcome Australia's 
participation in due course. 
239. For foreign investments, the message from Austra lia is that they welcome foreign investment.  
The message from Members has been for Australia to increase transparen cy.  We trust that Australia 
will take on board these suggestions for an improve d screening process that will be helpful to all 
concerned. 
240. All the exchanges we had over these few days have served to enhance transparency and 
understanding in some areas, and in other areas, it has contributed to what, I am certain, will be a 
conversation which will continue.  We hope that Australia will gi ve due consideration to the 
constructive observations and sugg estions made by Members, even as she presses on in her national 
efforts to further improve trade policies and practices.  
241. The other recurrent theme in Members' st atements which I should highlight is the 
acknowledgment and the appreciation of Australia's continued commitment to an open economy that 
is market-driven and business-friendly.  Many spoke  of how Australia weat hered recent challenges 
without backsliding on commitments.  In recent m onths, we have been acutely reminded of how 
rapidly an economy can be impacted by unusual circum stances.   Against such a backdrop, I believe 
that this praise from fellow Members is sincere in  giving credit where it is due.  Maintaining a 
dynamic economy requires regular policy revision and vigilance, but to mitigate any potentially 
negative effects in a business and investor friendly ma nner, consistent with international obligations, 
is a challenge for any government.  The Australian stor y serves as an inspiration to others who wish to 
pursue a balanced way of doing this, while at the sa me time remain open to input from other partners 
and stakeholders in the spirit of seeking continual improvement.    
EUROPEAN UNION 
242. We have one follow-up comment concerning question 7 from the EU. 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). WT/TPR/M/244 
Page 38  
 
  243. In this context, the EU notes that Aust ralia'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 bein g in Australia's national interest, based on the 
unanimous advice of the Foreign Investment Revi ew Board. An update on this issue would be 
appreciated.  
244. The two follow-up questions ar e on biosecurity and import risk analysis.  Regarding follow 
up of questions 27 to 29 on biosecurity, could Austra lia elaborate on whether it intends to revise its 
close to zero approach in its current import risk ev aluation 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?  
245. Regarding follow up of questions 27 to 29 on Im port Risk Analysis, could Australia provide 
information about any proposals/initiatives it has to establish a more transparent prioritisation 
procedure for third country applications and how it intends to speed up the evaluations in order to 
reduce the substantive backlog of applications?  
246. To this effect, does Australia have any inte ntion of adopting international standards, 
guidelines and recommendations and would it c onsider 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 indivi dual risk evaluations for each country/commodity 
application? 
AUSTRALIA 
247. Regarding the Singapore Exchange application wh ich is being considered by the Australian 
Government, no final decision has been taken today, and the deadline for the application is April 11. 
UNITED STATES 
248. We appreciate the opening statement on Tuesday regarding Australia's "prudent approach to 
sanitary and phytosanitary regulations" and that th e government has "one of the most transparent 
import risk analysis processes in the world".  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 delegations statement on Tuesday, however, we noted that "we are aware 
of only one example of a completed IRA that h as 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 th e additional IRAs that have been  completed that have enabled 
new market access for foreign-origin agricultural products. 
AUSTRALIA 
249. We will be happy to provide you the follo w-up details on the specific IRAs that you 
requested.  WT/TPR/M/244 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
250. This sixth Trade Policy Review of Australia has enabled us to improve our understanding of 
recent developments in its trade and trade-related policies, and the challenges it now faces.  Our 
discussion has clearly benefited from the active par ticipation of the Austra lian delegation, led by 
Mr. Hamish McCormick, First Assistant Secretary (Department of Foreign Affairs and Trade), as well 
as from the remarks of our discussant, Mr. Kwok Fook Seng, Ambassador of Singapore, and many 
interventions by Members.  Australia's prompt response to almost all questions was very much appreciated. 
251. Members acknowledged the exemplary institutionali zation of transparency with regard to 
Australia's trade and trade-related policies as well  as its role as a catalyst for unilateral reforms, 
including trade liberalization, that have greatly  increased market flexibility and improved economic 
performance; over the past 20 years, Australia has ex perienced uninterrupted real GDP growth.  They 
congratulated Australia for continuing to be among the most open economies in the world and successfully weathering the global financial crisis without backsliding on trade liberalization.  
Members commended Australia for re sponding appropriately to the cris is with fiscal and monetary 
stimuli, which had contributed to the economy's st rong recovery in 2010 despite the possible adverse 
impact on growth of recent natural disasters (floods, cyclone).  Several Members noted the marked decline in multi-factor productivity growth and were  interested in plans over the longer term to 
reverse it.  In this regard, while recognizing Austra lia's achievements in the area of regulatory reform 
they sought information on further structural re forms, whose implementa tion was lagging and thus 
handicapping Australia's ability to  increase its productivity and keep  its international competitive 
edge.   
252. Members acknowledged that Australia's efforts to promote open markets through multilateral, 
regional, and bilateral initiatives had provided a catal yst for trade and economic liberalization efforts 
around the world and reinforced the WTO's objectives; in addition, note was taken of doubts over the actual benefits of its preferential trade agreemen ts.  Members praised Australia's commitment to a 
rules-based and transparent multilateral trading syst em, as well as its leading role in attempting to 
achieve a successful conclusion of the Doha Round.   They also commended Australia for being a 
major provider of trade-related technical assistance, including in the area of aid for trade, thus enabling developing and least-developed countries to benefit from the multilateral trading system.  Members also commended Australia's low average MFN applied tariff rate owing to unilateral 
reductions.  Some Members expressed appreciation fo r Australia's action in further strengthening 
protection of intellectual property rights.   
253. Having carefully considered the interventions , questions, and answers during this review, 
there seems to be ground for recommending that  the Australian authorities give thought to 
improvements that could be made in the following areas:  
• SPS. Virtually all Members expressed concern over Australia's strict SPS requirements, 
including the lack of cost-benefit analysis; th ey urged Australia to re-evaluate these measures 
with a view to bringing them more into line with international norms and thus rendering them 
less restrictive as regards imports. 
• FDI. Some Members expressed concern over remain ing foreign investment restrictions in 
sensitive sectors (on grounds of "national interest ") and hoped that Aust ralia would consider 
liberalizing them. 
• Government procurement . Some Members expressed concern over Australia's use of 
government procurement as an instrument of  economic policy; they were critical of, 
inter alia,  the "buy local" requirements by certain states and encouraged Australia to WT/TPR/M/244 
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  implement a single procurement policy and join the WTO Agreement on Government 
Procurement.   
• Trade remedies . Certain Members expressed concern over the deficiencies of the anti-
dumping and countervailing system, and calle d for less reliance on the former.   
• Tariff structure . Despite Australia's low level of tari ff protection, some Members called for 
further action, including the reduction in remain ing tariff peaks and simplification of the tariff 
structure by, inter alia , converting non- ad valorem  into ad valorem  rates.   
• Support . Information was sought on the operati on of an export support scheme and export 
controls.  Some members noted the level of industry-specific support provided to the automotive, textiles, clothing, and footwear i ndustries and expressed the hope that it would be 
reduced.   
254. This successfully concludes our sixth Review of Australia.  The large number of advance 
questions and the many interventions indicate the impor tant role Australia plays at the WTO.  I would 
once again like to thank the Australian delegation,  the discussant and Members for contributing to 
what has been a very enlightening two days of discussions. 
 
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