WORLD TRADE  
ORGANIZATION  WT/REG184/3 
11 June 2007 
 (07-2413) 
Committee on Regional Trade Agreements  
  
 
  
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement  
Between  
the United States and Australia 
(Goods) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the considerati on of the Free Trade Agreement between the 
United States and Australia, has been drawn up by the WTO Secretariat on its own 
responsibility.  The report was requested by the Parties and prepared in consultation 
with them in accordance with the Guide lines on Procedures to Improve and Facilitate 
the Examination Process (document WT/REG/W/15/Add.1).   Any technical questions arising from this report may be addressed to 
Mr. Roberto Fiorentino (tel:  022/739 5595)  or Mr. Luis Verdeja (tel:  022/739 5244). 
 WT/REG184/3 
Page iii 
  
  TABLE OF CONTENTS 
 
Page 
 
 
I. TRADE ENVIRONMENT 1  
II. TREATY CHARACTER ISTIC ELEMENTS 5  
A. B ACKGROUND INFORMATION  5 
B. N ATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  6 
1. Import duties and charges, and quantitative restrictions 6 
(a) General provisions 6 
(b) Liberalization of trade and tariff lines 7 (c) Australia's liberalization schedule 9 
(d) United States' liberalization schedule 10 
2. Rules of origin 12 
3. Export duties and charges, and quantitative restrictions 14 
C. R
EGULATORY PROVISIONS OF THE AGREEMENT  14 
1. Standards 14 
(a) Sanitary and phytosanitary measures 14 
(b) Technical barriers to trade 15 
2. Safeguard mechanisms 16 
(a) Global safeguards 16 
(b) Bilateral actions 16 
(c) Special safeguards 17 (d) Agricultural safeguards 18 
3. Anti-dumping and co untervailing measures 19 
4. Subsidies and State aid 19 5. Other regulations 20 
(a) Customs-related procedures 20 
(b) Competition policy 20 
(c) Government procurement 21 
(d) Intellectual property 22 (e) Environment 23 
(f) Labour 23 
(g) Electronic commerce 23 
D. S
ECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  24 
E. G ENERAL PROVISIONS OF THE AGREEMENT  24 
1. General provisions and exceptions 24 
2. Accession 24 
3. Institutional framework 24 
4. Dispute settlement 25 5. Relationship with other agr eements concluded by the Parties 26 
ANNEX I 28 
ANNEX II 33 
 
 
 
  WT/REG184/3 
 Page 1 
 
 
  UNITED STATES-AUSTRALIA FR EE TRADE AGREEMENT (GOODS) 
 
Factual Presentation by the Secretariat  
  
I. TRADE ENVIRONMENT 
1. The economic ties between Australia  and the United States are based, inter alia , on a common 
language and culture and shared le gal traditions.  Both countries ha ve similar levels of per capita 
income
1, and similar economic structures, with a st rong reliance on services, and on mining.  The 
two countries have longstanding trading relations:  the United States is Australia's third largest 
merchandise trading partner (imports  plus exports), and its largest pa rtner in terms of foreign direct 
investment. 
2. Australia's GDP was US$700 billion in 2005, while that of the United States reached 
US$12,455 billion.2  With total merchandise exports  of US$106 billion and imports of 
US$125 billion, Australia ranked in 2005 as the 27th top exporter and the 21st top importer; with 
merchandise exports of US$904 billion and imports of  US$1,732 billion, the United States ranked as 
the 2nd top exporter and the 1st top importer in that year.  Although of quite different size, the two 
economies showed similar average trade/GDP ratio s in 2003-2005 with Australia's ratio 39 and the 
United States' 24.4. 
3. Developments in recent years in global and intra-Party trade are presented in Charts I.1 and 
I.2.  Over the period surveyed (1997-2005), Australia  has run a consistent trade deficit with the 
United States. 
                                                      
 1UNDP (2006), The 2006 Human Development Report .  Viewed at: http://www.h dr.undp.org/hdr2006/.  
Australia's income was US$30,331 in purchasing power terms in 2004, compared to US$39,676 in the 
United States;  life expectancy in the U. S., at 77.5 years, was estimated to be  lower than the 80.5 years estimated 
for Australia, and its school enrolment ratio is also lower. 
 2 WTO Statistics Database, Trade Profiles. WT/REG184/3 
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  020406080100120140
1997 1998 1999 2000 2001 2002 2003 2004 200505101520253035US$Billion US$BillionChart I.1 - Australia: Merchandise imports from and exports to 
world and the United States, 1997-2005
Source: UNSD, Comtrade database.Imports from USA
Exports to USATotal imports
Total exportsLeft hand sale: Right hand sale:
 
 
02004006008001,0001,2001,4001,6001,800
1997 1998 1999 2000 2001 2002 2003 2004 2005051015202530354045US$Billion US$BillionChart I.2 - United States: Merchandi se imports from and exports to 
world and Australia, 1997-2005
Source: UNSD, Comtrade database.Imports from Australia
Exports to AustraliaTotal imports
Total exportsLeft hand sale: Right hand sale:
 
 
4. The commodity structure of trade among the Parti es, as well as of their imports and exports to 
the world in 2005, is shown in Chart I.3, on the basis of HS section product categories. 
5. Three product categories - vehicles and aircraft , machinery, and chemicals - accounted for 
more than two thirds of Australia's imports from the United States in 2005; optical products and  WT/REG184/3 
 Page 3 
 
 
  plastics accounted for a further 13.8 per cent.  The United States' four largest export product 
categories - machinery, vehicles, chemicals and optical products - made up 58.3 per cent of the United  States' total exports in 2005 and accounted for 78.4 per cent of Australia's imports from the 
United States. 
6. Four product categories – anim al products, prepared foods, chemicals and base metals - 
accounted for just over half of the United States' imports from Australia in 2005.  Australia's four 
largest export product categories - mineral products , animal products, base metals and chemicals - 
made up 61.8 per cent of Australia's total expor ts in 2005 and accounted for 47.4 per cent of the 
United States' imports from Australia. 
 WT/REG184/3 
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  Chart I.3
United States and Australia: product composition of merchandise trade, 2005
Unites States' imports from Australia Australia's imports from The United States
Source :  UNSD, Comtrade databasePer cent
Total:  US$7.7 billion Total:  US$16.6 billion
Total:  US$1,732.3 billion Total: US$118.9 billion
Total:  US$904.3 billion Total:  US$105.8 billionUnited States' global exports Australia's global exportsUnited States' global importsAustralia's global importsPrepared 
Foods 
12.2Other
14.0
Textiles 3.9Chemicals 
11.1Animal Prods.
 20.2
Base Metals
9.8Vehicles
 8.5Machinery
7.4Minerals 6.3Optical 5.7Precious stones 2.5Machinery
33.0
Vehicles
 18.7Chemicals 
17.2Optical 9.5Plastics 4.3Base Metals 3.2Wood Pulp 2.4Prepared Foods 
2.1Other
9.6
Machinery
27.8
Vehicles
 16.5 Chemicals 
10.1Optical 4.2Plastics 3.9
Base Metals
5.5Misc. Manufac. 
Products 2.9Prepared Foods 
2.8Other
11.0
Minerals 
11.4Minerals
17.6Other
14.1
Precious 
stones 2.1Machinery
25.4
Vehicles
12.9Chemicals 6.7Textiles 5.6Base metals 5.4Misc. Manufac.
 products 4.1Plastics 2.9
Optical 3.1
Textiles 
2.9
Machinery 5.6Vehicles 3.9
Chemicals 
7.5Vegetables 4.5
Precious stones 4.8
Base Metals
7.8Animal prods. 8.1Prepared Foods 3.6Other
12.9
Minerals 38.4Textiles 
2.4 Machinery
32.7
Vehicles
 15.2Chemicals 
10.4Optical 6.2Plastics 5.2Base Metals 4.9Precious stones 2.4
Wood pulp 2.5Other
11.2
Minerals 3.5Vegetables 3.4
 
 
  WT/REG184/3 
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  II. TREATY CHARACTERISTIC ELEMENTS 
A. BACKGROUND INFORMATION  
7. The Free Trade Agreement between the United States and Australia (hereafter "USAFTA" or 
"the Agreement") was signed by the Governments of the United States and of Australia (the Parties) 
on 18 May 2004;  it entered into force on 1 January 2005.  On 23 December 2004, the Parties notified 
the USAFTA to the WTO under Article XXIV:7(a)  of the GATT 1994 and the Understanding on the 
Interpretation of Article XXIV of GATT 1994, as an Agreement forming a free-trade area 
(WT/REG184/N/1).3  The terms of reference for the examin ation of the Agreement were adopted by 
the Council for Trade in Goods on 11 March 2005 (WT/ REG184/2).  The text of the Agreement was 
circulated to the Members as document WT/REG184/1,  and is also available, together with its 
Annexes, on the Parties' official websites.4   
8. The Agreement is composed of 23 Chapters and related annexes.  A number of side letters are 
also an integral part of the Agreement (Table II. 1).  The commitments undertaken in the area of trade 
in goods have applied fully since the entry into force of the Agreement.   
Table II.1 
Chapters, annexes and side letters of the agreement 
Chapters and annexes 
Preamble  
Chapter 1 Establishment of a Free Trade Area and Definitions 
Annex 1-A  Certain Definitions  
Chapter 2 National Treatment and Market Access for Goods 
Annex 2-A  Application of Chapter II 
Section A-Measures Of The United States 
Section B – Measures Of Australia 
Annex 2-B  Tariff Elimination  
Annex 2-C    Pharmaceuticals  
Side letters (Ch2) PBS, Blood Plasma, Waiver of Cust oms Duties, Distinctive Products, 
Temporary Entry Without Bond  
Chapter 3 Agriculture 
Annex 3-A     Agricultural Safeguard Measures  
Side letters (Ch3) BSE 
Chapter 4 Textiles and Apparel 
Annex 4-A  Textile or apparel specific rules of origin for chapters 42, 50 through 63, 
70, and 94  
Chapter 5 Rules of Origin 
Annex 5-A  Product-Specific Rules of Origin  
Chapter 6 Customs Administration 
Chapter 7 Sanitary and Phytosanitary Measures 
Annex 7-A  Standing technical working group on animal and plant health measures  
Chapter 8 Technical Barriers to Trade 
Annex 8-A  Chapter coordinator  
Chapter 9 Safeguards  
Side letters (Ch9) Safeguards 
Chapter 10 Cross-Border Trade in Services 
Annex 10-A  Professional Services  
Side letters (Ch10) Clarification on National Treatment, Education: States, Educational 
Criteria, Immigration, Express Delivery, Gambling  
Chapter 11 Investment 
Annex 11-A  Customary international law  
Annex 11-B   Expropriation  
Side letters (Ch11) FIRB, FIRB Review  
Chapter 12 Telecommunications 
                                                      
3 The Parties jointly notified the USAFTA unde r GATS Article V:7(a), as an agreement also 
providing for the liberalization of trade in services (S/C/N/310). 
4 
http://www.ustr.gov/Trade_Agreements/Bilatera l/Australia_FTA/Final_Text/Section_Index.html  and 
http://www.dfat.gov.au/trade/negotiations/us_fta/final-text  WT/REG184/3 
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  Chapters and annexes 
Side letters (Ch12) Telstra, Telecom Consultations  
Table II.1 (Cont'd) 
Chapter 13 Financial Services 
Annex 13-A  Cross-Border Trade 
United States 
Australia  
Annex 13-B  Specific Commitments  
Annex 13-C  Authorities responsible for financial services  
Side letters (Ch13) FSSA, Recognition, Securities,  Insurance, Guarantees  
Chapter 14 Competition-Related Matters 
Chapter 15 Government Procurement 
Annex 15A  Section 1:  Central Government Entities 
  Section 2:  Regional Government Entities 
 Section 3:  Government enterprises 
 Section 4:  Goods 
 Section 5:  Services 
 Section 6:  Construction services 
 Section 7:  General Notes 
 Section 8:  Threshold Adjustment Formula  
Side letters (Ch15) Government procurement 
Chapter 16 Electronic Commerce 
Chapter 17 Intellectual Property Rights 
Side letters (Ch17) ISP Liability , Application of IPR , IPR and National Treatment  
Chapter 18 Labour 
Chapter 19 Environment 
Chapter 20 Transparency 
Chapter 21 Institutional Arrangements and Dispute Settlement 
Annex 21A Inflation adjustment fo rmula for monetary assessments  
Chapter 22 General Provisions And Exceptions 
Chapter 23 Final Provisions 
Annex I   
Annex II   
Annex III   
 
Source: The Agreement. 
 
9. No overall implementation period is explicitly stated  in the Agreement.  However, the Parties' 
schedules of concessions foresee transition periods of up to 18 years (United States) and ten years 
(Australia) for the elimination of duties on a few products. 
B. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  
1. Import duties and charges, and quantitative restrictions 
(a) General provisions 
10. Each Party accords national treatment to the goods of the other Party in accordance with 
Article III of the GATT 1994 (Article 2.2 of the Agreement).5 
11. The Parties may not increase existing, or in troduce new, customs duties on imports of an 
originating good other than as permitted under the Ag reement (Article 2.3:2).  Trade liberalization 
covers Chapters 1-97 of th e Harmonized System (HS).6  Article 2.3:1 provides for the progressive 
elimination of customs duties in accordance with va rious stages listed in the Tariff Elimination Annex 
(Annex 2-B).  This Annex lists the base rates a nd the staging categories that apply to tariff 
                                                      
5 Article III of GATT 1994 and its interpretative notes are made an integral part of the 
Agreement, subject to Annex 2-A, which incl udes the non-conforming measures of the U.S. and 
Australia. 
6 Chapter 99, subchapter XIII of the HTSUS lists  those tariff lines in chapters 1-97 that are 
subject to a TRQ under the USAFTA.  WT/REG184/3 
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  elimination, subject to the additional categories that are contained in each Party's Schedule.7  Duties 
on bilateral imports not fully liberalized at entry into  force are to be eliminated according to different 
timetables, either through their progressive reduction – which can be done in equal stages or not, as 
the case may be – or immediate zeroing after a pe riod in which duties are kept constant.  Tariff 
reductions take place on 1 January of each year.  At the request of either Party, after year 20 of the 
Agreement, the Parties will consult on the possib ility of modifying market access commitments for 
dairy goods after year 20 of the Agreement (Ar ticle 3.6).  The Parties agree to allow duty-free 
temporary admission for certain goods detailed in Artic le 2.5, subject to the conditions therein.  
Furthermore, commercial samples, advertising ma terials and goods temporarily shipped from one 
Party to another for repair or a lteration are to be granted duty-free access in both Parties (Article 2.6 
and 2.7).  Except in the case of drawback or dut y referral programmes, neither Party may adopt, 
expand, extend or continue an existing waiver of  customs duties conditioned on the fulfilment of a 
performance requirement.  (Article 2.8).  
12. As regards non-tariff measures, the Parties ma y not adopt or maintain any prohibition or 
restriction on the importation of any good from the other Party, except in accordance with the 
Agreement and Article XI of the GATT (Article 2.9).8  This rule does not apply to the measures 
described in Annex 2-A and to the Parties' rights and obligations under the Agreement on Textiles and 
Clothing.  A few other exceptions to this general rule are provided for in Chapter 20 of the Agreement 
(see paragraph 76 below). 
13. The Parties may restrict the importation from the other Party of a good from a non-Party, 
when the Party maintains restrictions on the importation or exportation of such good from such 
non-Party (Article 2.9:3). 
14. All the fees charged in connection with the importation of goods must represent the 
approximate cost of services rendered;  these fees must be made available on the Internet (Article 2.10). 
(b) Liberalization of trade and tariff lines
9 
15. The elimination of tariffs applicable between  the Parties is detailed in the corresponding 
Parties' schedules.  Tariff elimination started on 1 January 2005, from the base rates applied on 1 January 2004.
10 
16. The overall tariff elimination under the Agreement is depicted in Chart II.1 below.  As from 
2005 (entry into force of the Agreement), 86.6 per cent of Australia 's total tariff lines were free of 
duty for products originating in the U.S.;11 in terms of imports from the U.S. between 2002-2004, the 
                                                      
7 For both Australia and the U.S., the base rat es are the general rates contained in their 
respective MFN schedules on 1 January 2004. 
8 This prohibition includes import licensing conditioned on the fulfilment of performance 
requirements, export price requirements and, ex cept as permitted in enforcement of countervailing 
and antidumping measures, import price requirements. 
9 Unless otherwise specified, all statistics, tabl es and charts contained in this document have 
been prepared on the basis of data provided by the Parties. 
10 HTSUS Column 1 General rates of duty in effect January 1, 2004, for the United States and 
the general rates of duty in Schedule 3 to the Aust ralian Customs Tariff Act 1995, in effect January 1, 
2004, for Australia.  MFN data submitted by the Un ited States corresponds to 2005;  according to the 
United States, there were no changes between the 2004 and 2005 MFN schedules. 
11 Australia's tariff schedule is composed of 6,124 lines at the HS 8-digit level.  In general, 
duties are defined ad valorem ; five lines hold specific duties only ; and twelve lines contain both ad 
valorem  and specific duties.   WT/REG184/3 
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  corresponding figure amounts to 97.6 per cent.
12  By 2010, a further 3.1 per cent of tariff lines, 
amounting to 0.5 per cent of 2002-2004 imports, are to be duty-free.  By 2015, all of Australia's tariff 
lines, are to be fully liberalized, with the excep tion of eight lines, which retain a specific duty.13 
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Chart II.1
Overall duty elimination in USAFTA
United States Australia
Source: WTO Secretariat estimates, based on data provided by the Australian and the United States authorities.Trade
Tariff lines
Trade
Tariff lines
Before FTA
Entry into force (2005)2010 2022
2015Imports not classified 
in the HS No elimination
 
 
17. Upon entry into force, the United States eliminated duties on Australian goods on 82.4 per 
cent of its tariff lines;14 15 the corresponding share in terms of the value of imports from Australia 
during 2002-2004 was 81.7 per cent.16  By 2010, duties on an additional 4.1 per cent of U.S.' tariff 
lines, amounting to 0.9 per cent of 2002-2004 imports fro m Australia, are scheduled to be eliminated.  
By 2015, duties on a further 10.7 per cent of tariff lines, representing 16.2 per cent of Australian imports, are to be eliminated.  By 2022, 98.4 per cent of tariff lines and 99.9 of imports will be duty-free for products of Australian origin. 
                                                     
 
12 Trade figures are based on the average value of  imports into Australia from the U.S. for the 
period 2002-2004, which covered 5,173 tariff lines. 
13 In 2004, imports under these tariff lines repres ented 0.1 per cent of total imports from the 
United States.  
14 On  1 January, 2005, the U.S. tariff schedule comprised 10,503 lines at the HS 2002 8-digit 
level, out of which, 1,091 held non ad valorem  duties.  
15 Tariff lines containing in-quota duties are ex cluded from all the tariff-related calculations. 
16 Trade statistics have been based on the av erage value of imports into the U.S. from 
Australia for the period 2002-2004, which took place on 2,287 tariff lines.    WT/REG184/3 
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  (c) Australia's liberalization schedule 
18. The base rates used by Australia for implemen ting its tariff liberalization scheme already 
provided for 47.6 per cent of tariff lines being duty free before the entry into force of the Agreement.  
Most of the additional 39.1 per cent of tariff lines fr eed on entry into force held base rates of 5 per 
cent.17  By 2010, all tariff lines with a 5 per cent b ase rate and those holding a specific duty are 
scheduled to be free.  In 2015, duties on all rema ining tariff lines scheduled to be fully liberalized, 
which hold mostly 15, 25 and to a lesser extent 10 per cent base rates, are eliminated. 
0 1000 2000 3000 4000 5000 6000 700020052006200720082009201020112012201320142015
Base rate =0% Base rate =5%Base rate =4%Base rate =10%
Base rate =15%Base rate =25%
Base rate =non 
ad valoremChart II.2
Australia's duty elimination under the USAFTA
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by the Australian authorities.Number if duty-free lines (cumulative)
 
 
19. Table II.2 shows Australia's trade liberalization commitments under the USAFTA on the 
basis of products' treatment at the HS 8-digit level organized by HS section product categories.  Of the 
6,124 tariff lines forming Australia's tariff schedule,  2,913 tariff lines where already MFN duty-free in 
2005;  an additional 2,392 tariff lines were liber alized upon entry into force of the Agreement 
resulting in 86.6 per cent of total Australian's ta riff lines being duty-free to imports from the United 
States in 2005.  Of the remaining 819 tariff lines s ubject to full liberalization by 2015, the vast 
majority are textiles products (under HS Chapte rs 50-63).  The only other product on which duties 
will be eliminated in 2015 belongs to miscellaneous manufactured articles.  By 2015 Australia's tariff 
schedule will be fully liberalized to imports from the United States with the exception of eight tariff 
lines relating to used passenger motor vehicles. 
 
  
                                                     
 
17 Also significant is the percentage of tariff lines liberalized with a base rate of 10-15 per 
cent.  A few tariff lines hold ing specific-only or specific/ ad valorem  rates became duty-free at entry 
into force. WT/REG184/3 
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Table II.2 
Australia: Product's tariff treatment under the Agreement  
HS section and description Year of duty-free treatment under USAFTA 
 MFN duty-
free lines 
2005 
2005 
2010 
2014 
2015 
Subject 
to duty Total 
I Live animals and animal products 215 7     222 
II Vegetable products 235 40     275 
III Animal or vegetable fats and oils 31 18     49 
IV Prepared food etc. 122 141     263 
V Minerals 237 14     251 
VI Chemical and products 645 222 1    868 
VII Plastics and rubber 25 214     239 
VIII Hides and skins 30 64     94 
IX Wood and articles 36 78     114 
X Pulp, paper etc. 73 223     296 
XI Textile and articles 168 12 166  619  965 
XII Footwear, headgear 33 27  9   69 
XIII Articles of stone 49 100 7    156 
XIV Precious stones, etc. 42 11     53 
XV Base metals and  products 183 418     601 
XVI Machinery 434 518     952 
XVII Transport equipment 67 137 8   8 220 
XVIII Precision equipment 224 44     268 
XIX Arms and ammunition 14 7     21 
XX Miscellaneous manufactured articles 43 97   1  141 
XI Works of art, etc. 7      7 
        
Total 2,913 2,392 182 9 620 8 6 124 
 
Note: In-quota tariff lines are excluded. 
 
Source : WTO Secretariat estimates, based on data provided by the Australian authorities. 
(d) United States' liberalization schedule 
20. At entry into force of the Agreement, 37.6 pe r cent of U.S. tariff lines were duty-free on an 
MFN basis.  Of the remaining 44.8 per cent of U.S. tariff lines on which tariffs were eliminated at that 
time, most had a base rate lower than 10 per cen t; a significant number of tariff lines having non 
ad valorem  duties were also fully liberalized.  Unti l 2014, full liberalization of tariff lines with 
different base rates will take place progressively.  In 2015, most of the remaining tariff lines 
scheduled to be fully liberalized will become duty-free,  at the same time as tari ff lines with base rates 
of 20 per cent or above are fully liberalized.  In 2022, an additional 108  tariff lines, including most 
TRQs, will become duty free.  WT/REG184/3 
 Page 11 
 
 
  0 2,000 4,000 6,000 8,000 10,000 12,0002005200720092011201320152017201920212023
Base rate =0%
0%<base rate<=10%Base rate =non 
ad valorem 
dutyChart II.3
United States' duty elimination under the USAFTA
Year of duty free treatment   
Note
Source:In-quota tariff lines are excluded. 170 lines remain subject to duties at the end of the implementation.
WTO Secretariat estimates, based on data provided by the US authorities.Number of duty-free lines (cumulative)10%<base rate<=20%20%<base rate
 
 
21. The Agreement provides that the United Stat es may apply tariff-rate quotas on the following 
product categories: beef, certain dairy products, avo cados, peanuts, tobacco, cotton, animal feed and 
sugar and sugar containing products  (e.g. cocoa powders, infant fo rmulas, and mixed condiments and 
mixed seasonings).  In general, the Agreement fo resees the elimination of the in-quota duty as of 
entry into force, and the expansion of the with in-quota volume along with the elimination of the 
out-of-quota rate over 18 years.  After 18 years, mo st products are granted unlimited duty-free access.  
See Annex II for a more detailed description of the tariff-rate quotas under the Agreement.  
22. Table II.3 shows U.S.' trade liberalization co mmitments under the USAFTA on the basis of 
products' treatment at the HS 8-digit level orga nized by HS section product categories.  Of the 
10,307 tariff lines forming U.S.' tariff schedule, 3,873 tariff lines where already MFN duty-free in 
2005;  an additional 4,615 tariff lines were liberaliz ed upon entry into force of the Agreement thus 
resulting in 82.4 per cent of total U.S. tariff lines being duty-free to imports from Australia in 2005.  
Of the remaining 1,819 tariff lines, 1,528 lines are to be fully liberalized by 2015 and they include mostly textiles (Chapters 50-63).  An additional 121 tariff lines are to be fully liberalized by 2022 and 
they include mostly agricultural products falling under HS Section IV – Prepared Foodstuffs and 
Beverages.  The remaining 170 tariff lines accounting for 1.6 per cent of total U.S.' tariff schedule 
retain tariffs and they cover mostly agricultura l products falling under HS Sections I and IV. 
 
  
 
   WT/REG184/3 
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  Table II.3 
United States:  Product's tariff treatment under the Agreement  
Year of duty-free treatment under USAFTA  
HS section and description MFN 
duty-
free 
lines 
2005 
2005 
2008 
2010 
2012 
2014 
2015 
2017 2018 
2021 
2022 
Subject to 
duty Total 
I Live animals and animal 
products 150 137 20  2 6  1 2 2 27 81 428 
II Vegetable products 136 259 57   37    1 15  505 
III Animal or vegetable fats 
and oils 18 30 11   5     2 1 67 
IV Prepared food etc. 134 238 65   50 11 4  1 58 87 648 
V Minerals 154 49           203 
VI Chemical and products 543 1,155 7 1     2    1,708 
VII Plastics and rubber 86 285   2        373 
VIII Hides and skins 44 177 1          222 
IX Wood and articles 119 72   1       1 193 
X Pulp, paper etc. 288            288 
XI Textile and articles 221 255 2 177  7 919    6  1,587 
XII Footwear, headgear 34 117    17       168 
XIII Articles of stone 96 128 18 14 18 9       283 
XIV Precious stones, etc. 48 56   1        105 
XV Base metals and products 531 438 19 2 1        991 
XVI Machinery 796 618 22  6        1,442 
XVII Transport equipment 123 117           240 
XVIII Precision equipment 188 329 12  2        531 
XIX Arms and ammunition 25 15           40 
XX Miscellaneous 
manufactured articles 132 140 1    5      278 
XI Works of art, etc. 7            7 
              
Total 3,873 4,615 235 194 33 131 935 5 4 4 108 170 10,307 
 
Note: In-quota tariff lines are excluded.  
Source : WTO Secretariat estimates, based on data provided by the US authorities. 
 
2. Rules of origin 
23. Disciplines regarding rules of origin are set out  in Chapter 5 of the Agreement; a number of 
different rules applicable to textiles are laid down in  Article 4.2.  Article 5.18 defines the terms used 
and Articles 5.1-5.11 provide the substantive rule s.  The procedures designed to administer and 
enforce the rules of origin are set out in Articl es 4.3, 5.12-5.17, as well as Article 2.13, and in 
Chapter 6 dealing with Customs Administration. 
24. A good is considered as originating when (Article 5.1): 
(a) it is wholly obtained or produced in the territory of the Parties;18 or 
(b) it satisfies the specific requirements laid down in Annex 5-A of the Agreement – 
Annex 4-A for textiles;  or 
(c) when made up entirely of materials originating in the territory of one or both Parties. 
25. The Agreement does not provide for single rule of origin methodology; rather it lists 
(in Annexes 5-A and 4-A) the specific criteria that non-originating materials have to meet for a good 
incorporating these materials to acquire originating status. 
26. The specific rules are normally detailed at the HS heading level (4-digit), although rules 
applicable to HS subheadings (6-digit) are freque nt, particularly for some prepared foodstuffs, 
                                                      
18 This concept applies to goods that are entirely grown, fished or mined in the territory of a 
Party, or lawfully taken by a person of a Part y, as well as to recovered goods and waste and scrap 
derived from production in the territory of the Parties.   WT/REG184/3 
 Page 13 
 
 
  minerals, chemicals, some textiles, base metals, ma chinery, vehicles and instruments.  In the vast 
majority of cases, origin is granted if the final pr oduction process takes place in one of the Parties and 
there is a change in the tariff cl assification (CTC) of non-originati ng materials.  The CTC criterion 
predominantly requires a change of HS chapter (C TCh);  changes of HS heading and HS subheading 
(CTH and CTS) are also widely used.  In particul ar, a CTCh is the most co mmon rule for agricultural 
products, textiles, pearls, some base metals, inst ruments, arms and ammunition and miscellaneous 
articles.  A CTH criterion predominates in minerals, chemicals, plastics, hides and skins, wood products, footwear, base metals and ma chinery.  Finally, a CTS is also used in several instances, being 
the prevailing rule for some chem icals, base metals and vehicles. 
27. The CTC is sometimes supplemen ted with either a regional value content (RVC) requirement 
or a working or processing requirement.  The RVC requirement establishes the minimum value of 
originating materials needed in the final product for it to be granted originating status, expressed as a 
percentage of the adjusted value of the product (normally between 30 and 55 per cent).
19  T h e  
combination of CTC and RVC criteria occurs mostly  in footwear, vehicles, instruments, arms and 
ammunition and miscellaneous products.  On a few occasions, the RVC requirement figures in itself 
as an alternative rule, as is the case for some base  metals and machinery products.  The processing 
requirement demands that some production processes take place in the Parties;  it is only used, in combination with a CTC, in apparel and other textile articles. 
28. Article 5.2 establishes a de minimis principl e whereby a good can still qualify as originating 
even if the non-originating materials incorporated  therein do not meet the criteria of Annex 5-A, 
provided that the value of the non-originating goods does not exceed 10 per cent of the adjusted value 
of the good and subject to the conditions laid down in that Article.  The de minimis article does not 
apply to dairy products, certain dairy preparations, citrus fruit, certain animal or vegetable fats or 
sugars used in some food preparations, and some al cohol products if used in the production of other 
specified alcohol products. Textiles are subject to a different rule that allows a good to qualify as 
originating if the fibres and yarns used do not represe nt more than 7 per cent of the total weight of the 
product (Article 4.2). 
29. Vegetable products (HS Chapters 6-14) will be  treated as originating if grown in the 
territory of the Parties, whether or not they grow  from originating stock.  For goods belonging to 
HS Chapter 20 (preparations of vegetables, fruit, nuts or other parts of plants, headings 20.01-20.08), 
the fresh product must be wholly obtained or prod uced in the territory of the Parties to receive 
originating status.  Chemical products are considered  originating if they are the product of a chemical 
reaction, as defined in a note to Chapters 28-38 in  Annex 5-A, whether or not they meet the specific 
rules. 
30. Full cumulation is allowed under the Agreement (A rticle 5.3); i.e., cumulation both in terms 
of materials and production processes between the Parties. 
31. There is no general definition in the Agreem ent for minimal, non-qualifying operations 
carried out in the territory of the Parties which do not confer origin.   Article 5.11 restricts outward 
processing to those operations necessary to preserve the goods or to transport them to the territory of 
the other Party.  Additional rules in Articles 5.6-5.10 clarify how certain materials (standard 
accessories, spare parts or tools; fungible goods;  p ackaging materials and containers; and indirect 
materials) are to be treated/valued wh en determining the origin of goods. 
32. The Parties must provide that an importer may make a claim for preferential treatment and 
will grant acceptance unless the claim is proven invalid.   The importer must be prepared to submit the 
                                                     
 
19 The RVC can be calculated using the Build-down, the Build-up or the Net Cost methods, the latter 
being used only for automotive goods only.  Details are given in Article 5.4. WT/REG184/3 
Page 14  
 
  relevant information if asked to do so (Articles 5.12-5.13).  Other customs procedures relating to rules 
of origin are described in paragraph 61 below. 
33. Article 5.16 foresees that the Parties consult six months after the date of entry into force of 
the Agreement regarding the implem entation and application of Chapte r 5.  Article 4.2 provides for 
consultations on an eventual revision of the rules a pplicable to textiles to a ddress issues of availability 
of supply of fibres, yarns, or fabrics in the territories of the Parties. 
Box II.1:  Rules of Origin:  Basic Features at a Glance 
• No single rule of origin methodology.   
• Product specific criteria: 
-  Wholly obtained or entirely produced goods -  In general, CTC at the chapter or heading levels 
-  In some cases, additional rule of RVC at 30%-55%.   In rare cases, RVC suff ices to determine origin 
-  Process rules only in some textiles. 
• A "chemical reaction" rule applied to goods in Chapters 28-38.  
• Full cumulation. 
• Tolerance rule:  non-originating materials can represent a maximum of 10% of the adjusted value of the 
product; for textiles, 7% of the total weight.    
• Outward-processing not authorized. 
• Transit through third parties authorized only under certain conditions. 
3. Export duties and charges, and quantitative restrictions 
34. The Parties are not allowed to adopt or maintain any prohibition or restriction on the 
exportation of any good of the other Party, excep t as provided in the Agreement and in accordance 
with Article XI of the GATT (Article 2.9).20  This rule does not apply to the measures described in 
Annex 2-A and to the Parties' rights and obligatio ns under the Agreement on Textiles and Clothing.  
A few other exceptions to this general rule ar e provided for in Chapter 20 of the Agreement 
(see paragraph 76 below). 
35. The Parties may require as a condition to expor t a good to the other Party that such good is 
not re-exported, without being consumed, to a non-Part y, on which the Party maintains restrictions on 
the importation or exportation of such good (Article 2.9). 
36. All the fees charged in connection with the e xport of goods must represent the approximate 
cost of services rendered;  a current list of th ese fees must be made available on the Internet 
(Article 2.10).  The Parties may only adopt or mainta in any duty on exports to the other Party when 
such duty is applied to goods to be cons umed in its territory (Article 2.11).  
C. REGULATORY PROVISIONS OF THE AGREEMENT  
1. Standards 
(a) Sanitary and phytosanitary measures 
37. In Chapter 7, the Parties reaffirm thei r existing rights and obligations under the 
WTO Agreements on SPS (Article 7.3).  The Chap ter does not create new SPS rights and obligations; 
rather it provides a framework for cooperation on such matters.  The Chapter applies to all 
                                                      
20 This prohibition includes import licensing c onditioned on the fulfilment of performance 
requirements, export price requirements and, ex cept as permitted in enforcement of countervailing 
and antidumping measures, import price requirements.  WT/REG184/3 
 Page 15 
 
 
  SPS measures of the Parties that may affect their mutu al trade (Article 7.2:1);  there is no recourse to 
the dispute settlement mechanism under the Ag reement for SPS matters (Article 7.2:2). 
38. Article 7.4 establishes a Committee on SPS matters comprising representatives of each Party 
with responsibility for SPS matters.  The objectiv es of the Committee are to enhance each Party's 
implementation of the WTO Agreement on SPS, prot ect human, animal or plant life or health, 
enhance consultation and cooperati on between the Parties on SPS matters and facilitate their mutual 
trade (Article 7.4:3).  The mandate of the Committee,  as set out in Article 7.4:5, is to enhance the 
mutual understanding of each Party's SPS measures and regulatory processes;  facilitate cooperation 
between the Parties in international and regional fo ra dealing with SPS related matters;  and consult 
on technical cooperation activities on SPS matters.  The Committee is to meet within 45 days of entry 
into force of the Agreement and at least once a year thereafter (Article 7.4:7). 
39. Annex 7-A establishes a Standing Technical Working Group on Animal and Plant Health 
Measures with a view to facilitating trade between the Parties while preserving each Party's rights to 
maintain its own regulatory systems, risk assessment and policy development processes (Para. 1 to Annex 7-A).  The Working Group is to serve as a forum for enhanced technical cooperation for the 
resolution of specific bilateral animal and plant h ealth matters as well as early engagement in each 
Party's risk assessment and regulatory processes regard ing such matters (Para. 4 to Annex 7-A).  The 
Working Group is co-chaired by the Parties' agen cies with main responsibility for technical market 
access issues relating to animal and plant health.
21  The Working Group is to establish operating 
procedures within 45 days of entry into force of  the Agreement and establish a work plan including 
the development of specific work pl ans in accordance with Section B of Annex 7-A (Paras. 6 and 7 to 
Annex 7-A). 
(b) Technical barriers to trade 
40. In Chapter 8, the Parties reaffirm th eir existing rights and obligations under 
the WTO Agreement on Technical Barriers to Trad e (TBT) (Article 8.2).  The Chapter provides a 
framework for cooperation on TBT matters and it appli es to all standards, technical regulations and 
conformity assessment procedures that may affect the Parties' mutual trade (Article 8.1).22  T o  
facilitate implementation of the Ch apter and cooperation between the Parties, each Party designates a 
Chapter Coordinator responsible for coordinating all matters pertaining to the Chapter (Article 8.9).23 
41. The Parties agree to use international standards,  to the extent provided in Article 2.4 of the 
TBT Agreement, as a basis for their technical regula tions;  they also agree to consult each other on 
standards related matters being discussed in relevant  international or regional bodies (Article 8.4:1 
and 3).  With respect to technical regulations (Article 8.5), the Parties agree to give positive 
consideration to accepting as equivalent each othe r's technical regulations provided that they are 
satisfied that they adequately fulfil the objectives of  their own regulations (Article 8.5:1).  Should a 
Party deny such equivalence it will, at the request  of the other Party, explain its reasons;  an ad hoc  
working group may be established to give further c onsideration to the matter (Article 8.5:2).  The 
Parties do not have recourse to the dispute settle ment mechanism under the Agreement for any matter 
arising under Article 8.5 (Article 8.5:3). 
                                                      
21 Australian Government Department of Agricu lture, Fisheries and Forestry's Biosecurity 
Australia and the United States Department of Agri culture's Animal and Plant Health Inspection. 
22 Exceptions include: technical specificati ons prepared by government bodies for the 
production or consumption require ments of such bodies and SPS measures as defined in Annex A of 
the WTO SPS Agreement. 
23 Chapter coordinators are: in the case of Aust ralia, the Department of Industry, Tourism and 
Resources;  in the case of the United States, th e Office of the U.S. Trade Representative. WT/REG184/3 
Page 16  
 
  42. With respect to conformity assessment procedur es, the Parties agree to exchange information 
on existing mechanisms with a view to facilita ting the acceptance of each other's conformity 
assessment procedures and to exchange information on mechanisms that facilitate this process;  an 
indicative list of existing mechanisms is provided in Article 8.6:1.  Article 8.6:2,3 and 4 requires the 
Parties to explain their reasons for (a) refusal of the results of a conformity assessment procedure 
conducted in the territory of the other Party;  (b ) denial of national treatment with regards to 
accreditation, approval, licensing or recognition of  each other conformity assessment bodies;  and 
(c) refusal to engage, upon request from the other Party, in negotiations of agreements facilitating 
recognition of the results of conformity assessment pr ocedures;  in the latter case, the Parties if they 
so agree, may establish an ad hoc  working group to give further consideration to the matter. 
43. The Chapter includes additional provisions dealin g with transparency and trade facilitation.  
With respect to transparency, Ar ticle 8.7 provides that each Party shall allow persons of the other 
Party to participate in the development of standa rds, technical regulations and conformity assessment 
procedures on terms no less favourable than those accorded to its own persons.  Furthermore the 
Parties agree to exchange and publish relevant info rmation to ensure that decision-making processes 
on TBT questions are transparent.  With regard to trade facilitation, Article 8.8 commits the Parties to 
seek to identify trade facilitating bilateral initiatives  regarding standards, technical regulations and 
conformity assessment procedures.   
2. Safeguard mechanisms 
44. Chapter 9 lists the types of safeguard me asures permissible under the Agreement and 
outlines the rules and procedures for administeri ng such measures.  The Chapter provides for 
transitional safeguard measures, provisional measur es and global safeguards.  Chapters 3 and 4 
provide respectively for agricultural and textile safe guard measures.  The requirements attached to 
those different types of safeguard actions are detailed below. 
(a) Global safeguards 
45. With respect to global emergency action, the Pa rties retain their rights and obligations under 
Article XIX of GATT 1994 and the WTO Agreement on Safeguards.  Imports of originating goods 
from the other Party may be excluded from the action
24 if these are not a "substantial cause of serious 
injury" or threat thereof (Article 9.5).25  
(b) Bilateral actions 
46. For trade between the Parties, Articles 9.1 an d 9.2 provide for bilateral emergency action on 
originating goods during  the transition period.26  The imposition of safeguard  measures is allowed if 
an originating good is imported in such increased qua ntities, either in absolute terms or relative to 
domestic production, and under such circumstances that  the imports are a substantial cause of serious 
injury or threat thereof to the domestic industry of the importing Party producing a like or directly competitive good.  The safeguard can be applied only following an investigation by the Party's 
competent authorities in accordance with Articles 3,  4.2(a) and 4.2(c) of the WTO Agreement on 
                                                     
 
24 A side letter to Chapter 9 describes the pro cedures that the U.S. Ex ecutive Branch will use 
in determining whether to exclude goods of an FTA partner from a global safeguard. 
25 Article 9.6 (Definitions) defines "substantial cause" as a "cause which is important and not 
less than another cause";  and "serious injury" as a "significant overall impairment in the position of a 
domestic industry". 
26 Article 9.6 (Definitions) defines "transition pe riod" as the tariff elimination period for the 
good;  this means the ten-year period following en try into force of the Agreement or the phase in 
period for a particular product if beyond ten years.  WT/REG184/3 
 Page 17 
 
 
  Safeguards (Article 9.2).27  Disciplines regarding timing are multiple; they specify inter alia  the 
permissible duration of safeguard measur es and when these shall be terminated. 
47. Provisional safeguard measures (Article 9.3) are allowed in critical circumstances where 
delay would cause damage which would be diffi cult to repair; they require a preliminary 
determination that there is clear evidence that im ports of an originating good from the other Party 
have increased as a result of the tariff liberalizati on provided under the Agreement and that such 
imports constitute a substantial cause of serious inju ry, or threat thereof.  Any additional duties 
collected as a result of the measure have to be ref unded if the investigation fails to determine that the 
increased imports from the other Party constitute a substantial cause of serious injury, or threat 
thereof.  
(c) Special safeguards 
48. Article 4.1 of Chapter 4 contains disciplines related to safeguard measures for textiles and 
apparel.  These safeguard measures operate on generally parallel term s to the transitional bilateral 
safeguards provided in Chapter 9 to the Agreement.   In addition, concessions for compensation shall 
be limited to textile and apparel goods, unless th e Parties agree otherwise (Article 4.1:7). 
Table II.4  
Synopsis of USAFTA bilateral and special safeguards 
Requirements Bilateral safeguards Safeguards on textiles 
Trigger Rise in imports In absolute terms or relative to 
domestic production In absolute terms or relative to the 
domestic market 
Criteria  Substantial cause of serious injury or 
threat thereofa 9  Serious damage or actual threat 
thereof 
Suspension of further duty reduction  9  
To MFN rate or MFN rate preceding 
entry into force, whichever is lower To MFN rate or MFN rate 
preceding entry into force, 
whichever is lower Measures 
allowed 
(Arts. 4.1.1 
and 9.1) Increase in duty rate  For seasonal customs duty to: the 
MFN rate preceding corresponding 
season or MFN rate preceding entry 
into force, whichever is lower  
2 years initially (maximum 4 years 
including extensions)  2 years initially (maximum 4 years 
including extensions Maximum duration  Maximum of 200 days (provisional 
measures) Maximum of 200 days 
(provisional measures) Timing 
Safeguard measure vis-à-vis  the 
transition period of the good concerned   Permitted beyond the good's transition 
period only with the consent of the 
other Party Permitted over a period of 
10 years following the good's  
tariff elimination 
Information of the institution of a proceeding through written notice 9
  9  
Consultations 9  9  
Prior investigation Except for provisional measures Except for provisional measures 
No re-imposition of safeguard measures 
on the same good  9 9 
Progressive liberalization For measures exceeding 1 year  
Compensation (Arts. 4.1.7 and 9.4) 9 9 
Possibility of retaliation 9  9 Conditions 
or limitations  
Prohibition of multiple trade-defence 
measures applied simultaneously  9  9  
 
a The additional requirement of damage that would be difficult to repair app lies in the case of provisional measures. 
 
                                                      
27 To this end Articles 3 and 4.2 (a) and (c) of the WTO Agreement on Safeguards are 
incorporated into and made a part of the Agreement, mutatis mutandis .  WT/REG184/3 
Page 18  
 
  (d) Agricultural safeguards 
49. Article 3.4 of Chapter 3 sets out the disciplines related to agricultural safeguard measures that 
a Party may apply in the form of an additional customs duty on certain agricultural goods.
28      
Agricultural safeguard measures may not be applied or  maintained with respect to a good (a) that is 
subject to other safeguard measures; and (b) follo wing completion of the good's scheduled phased-out 
period.29  The Party applying the measure has to notify the other Party within 60 days of applying the 
measure and on request enter into c onsultation regarding its application.   The operation of Article 3.4 
may be subject to review in the Committee on Agriculture.   
50. Annex 3-A provides for three types of agricu ltural safeguard measures that may apply to 
Australian exports to the United States:  these are a horticulture price-based safeguard (Section A – 
Annex 3-A);  a quantity-based beef safeguard (S ection B, Annex 3-A);  and a price-based beef 
safeguard (Section C, Annex 3-A). 
51. The United States may apply a horticulture price-based safeguard  on a limited number of 
horticultural products (33 products at the HS 10-digit level) from Australia if the unit import price of 
such goods falls below a given trigger price.30  The list of products and their corresponding trigger 
price is contained in Section A of Annex 3-A.  The safeguard measure is in the form of an additional 
customs duty whose amount will depend on the di fference between the good's import price and the 
trigger price (see table II.6).  The safeguard applies on a shipment-by-shipment basis and is limited to 
the good's tariff elimination period after whic h the good will be duty and safeguard free.31 
Table II.5 
United States' price-based safeguard for horticulture 
Safeguard measurea HS 
Chapter Chapter description No. of 
lines Trigger Additional duty 
07 Edible vegetables and certain roots and 
tubers 4 
20 Preparations of vegetables, fruit, nuts or 
other parts of plants 27 
21 Miscellaneous edible preparations 2 IP ≤ 10% TP 
IP ≤ 40% TP 
IP ≤ 60% TP 
IP ≤ 75% TP 
IP > 75% TP No duty 
30% of (MFN minus PR) 50% of (MFN minus PR) 70% of (MFN minus PR) 
100% of (MFN minus PR) 
a  IP (Import Price) – TP (Trigger Price) – PR (Preferential Rate) 
 
52. The United States may apply one of two types of safeguard measures on beef at different 
times under the Agreement:  a quantity-based beef safe guard from year nine to 18 of the Agreement;  
and a price-based beef safeguard starting in year  19 of the Agreement (see Table II.7).  Both 
safeguards are linked to the operation of the beef FTA TRQ as provided in paragraph 3 of Annex I of 
the U.S. Schedule to Annex 2-B and apply to a limite d number of beef products (six products at the 
HS 8-digit level);  the imports of beef from Au stralia pursuant to the WTO TRQ do not affect these 
safeguards.   The quantity-based safeguard  is triggered if the aggregate volume of imports of these 
goods exceeds 110 per cent of the within-quota volume for each year as set forth in paragraph 3(a) of 
Annex 2-B.  In such cases an additional customs dut y equal to 75 per cent of the difference between 
the MFN applied rate and the applicable FTA pref erential rate is added to the out-of-quota tariff 
applicable for that year on subsequent shipments after the safeguard trigger volume is reached.  The 
measure remains in effect until the end of the calendar year. 
                                                      
28 These goods are listed in Annex 3-A to the Agreement. 
29 Exception to this rule is the price-based safeguard for beef (Section C, Annex 3-A).  
30 The unit import price is based on the F.O.B. im port price of the good in U.S. dollars;  the 
trigger prices reflect the historic unit im port values for the products concerned. 
31 The 33 products listed in Section A of Anne x 3-A will become duty free in 2022 following 
an 18 year phase-in period.   WT/REG184/3 
 Page 19 
 
 
   
53. The price-based safeguard  is triggered if the monthly average index price32 of these goods 
falls below the 24-month trigger price which is set at 6.5 per cent less than the average of the previous 24 monthly average index prices.  In such instances the additional customs duty is set at 65 per cent of 
the applied MFN duty.  The measure applies to go ods in aggregate quantities greater than the volume 
set out for the corresponding calendar year
33 and it applies for periods of three months;  if the price 
trigger occurs in any two months during the previo us quarter of any calendar year, the measure will 
apply in the following quarter;  a one month trigger applies in the fourth quarter (Paragraph 3(a) and (b) of Section C of Annex 3-A).  The operation of  Section C will be reviewed every five years 
following entry into for ce of the Agreement. 
Table II.6 
United States' quantity and price-based safeguards for beef 
HS line number 
(Product description) Safeguard 
measure Timeframe Trigger Additional duty 
Quantity 
based From year 9 to 
18 Volume exceeds 110% of FTA TRQ 
for corresponding calendar year 75% of (MFN 
minus PR)a 02011050, 02021050 (Beef other than carcasses and half carcasses); 
02012080, 02013080, 02022080, 
02023080 (Beef other than processed) Price based From year 19 
onwards Price of beef in the U.S. falls 6.5% 
below the average of the previous 24 month 65% of MFN 
a FTA preferential rate 
 
3. Anti-dumping and countervailing measures 
54. The Agreement contains no specific provi sion with regards to anti-dumping and 
countervailing measures;  however, in Article 1.1.2 the Parties reaffirm their rights and obligations 
under the WTO Agreement. 
4. Subsidies and State aid 
55. The Agreement contains no general provision with  regards to subsidies and state aid with the 
exception of agricultural export subsidies;  however, in Article 1.1.2 the Parties reaffirm their rights and obligations under the WTO Agreement. 
56. With respect to agricultural export subsidies, Ar ticle 3.3 commits the Parties not to introduce 
or maintain any export subsidies on any agricultural good destined for the territory of the other Party, 
except where a Party is importing a subsidized agri cultural good from a non-party.  In such cases the 
exporting Party may consult with the importing Part y with a view to agreeing on specific measures 
that the importing Party may adopt to counter the effect of such subsidized imports (Article 3.3.2). 
                                                     
 
32 Monthly average index price is defined as the monthly average index price for Wholesale 
Boxed Beef Cut-Out Value Select 1-3 Central U.S.  600-750 lbs., as reported by the U.S. Department 
of Agriculture's Agricultural Marketing Servi ce (Para 7(a) of Section C of Annex 3-A). 
33 For the purposes of the price-based safeguard , Paragraph 4 of Sec tion C of Annex 3-A 
provides that the price-based safeguard will not be  imposed on beef products imported from Australia 
under its country specific WTO TRQ (Para 4(a)) plus an additional quantity of beef imports equal to 
the maximum within-quota quantity of 70000MT provided under the FTA TRQ with an annual 
compounded growth of 420 tonnes starting in year 19 of the Agreement (Para 4(b)).   WT/REG184/3 
Page 20  
 
  5. Other regulations 
(a) Customs-related procedures 
57. Customs procedures are dealt with in Chapter 6 of the Agreement (Customs Administration);  
Section B of Chapter 5 (Rules of Origin) deals with "Supporting Information and Verification".  Specific provisions regarding trade in textil es and apparel are contained in Article 4.3 
(Customs Cooperation) of Chapter 4 (Textile and Apparel). 
58. The Parties are required to administer th eir respective laws, regulations, guidelines, 
procedures and administrative rulings governing cust oms matters in an impartial manner and ensure 
that they are made publicly available promptly;  th ey also agree to designate one or more inquiry 
points (Articles 6.1 and 6.2).  Upon request by the importer and the submission of the required 
information, the Parties must issue an advance ruling within 120 days on issues concerning tariff 
classification, the application of the Customs Valuation Agreement, country of origin, and the qualification of a good as an originating good under th e agreement (Article 6.3).  The Parties also 
ensure that importers have the right to an admini strative review of the determinations of customs 
authorities and a judicial review at the end of the administrative process (Article 6.4).  Other 
provisions dealing with confidentiality, penalties fo r violations, the release of goods, risk assessment 
and express shipments are dealt with in Articles 6.6.-6.10 respectively. 
59. Article 6.5 sets out the provisions regarding c ooperation in customs matters.  Article 4.3 sets 
out additional textile-specific cu stoms cooperation provisions.  The Parties endeavour to provide 
advance notice of any modification significantly aff ecting importations and to cooperate, through their 
competent authorities in achieving compliance with their respective laws and regulations.  Where a 
Party has reasonable suspicion of unlawful activity , as defined in Article 6.5.6, it may request the 
other Party to provide the information pertaining to  that activity in accordance with Article 6.5.3.  
With regards to trade in textiles and apparel, s hould the importing Party have reasonable suspicion of 
unlawful activity, it may request the exporting Part y to conduct a verification for purposes of enabling 
the importing Party to determine that the exporter or producer is complying with the applicable 
customs measures (Article 4.3.2 and 3).  Through its competent authorities the importing Party may 
assist in such a verification including visiting the premises under investigation;  should such visit be 
denied and the importing Party is unable to make its determination it may ta ke appropriate action, 
including suspending the preferential treatment in accor dance with Article 4.3.8.  The Parties agree to 
enter into consultations at the request of either Party to resolve any technical question or improve 
ways of customs cooperation (Article 6.5.8 a nd Article 4.3.10 for textiles and apparel). 
60. Customs procedures related to rules of origin are found in Articles 4.3, 5.12-5.15 and 6.5.  
They detail administrative questions and disciplin es regarding proof of origin and set out the 
arrangements for administrative co-operation to be followed by the Parties’ customs authorities, in 
particular with respect to exchange of information, record keeping, verification of proof of origin and 
opening of consultations to resolve technical di fficulties.  Also, the Committee on Trade in Goods 
established in Chapter 2, remains responsible for any matter relating to rules of origin. 
(b) Competition policy 
61. Chapter 14 aims at the promotion of fair competition and the curtailment of anti-competitive 
practices between the Parties.  Article 14.2 comm its the Parties to take measures to proscribe 
anti-competitive business conduct and to cooperat e in the area of competition policy and law 
enforcement.  The Parties confirm that their r espective national competition authorities grant national 
treatment in like circumstances in relation to th e enforcement policy of their respective national 
competition authorities.  They also agree to stre ngthen their existing cooperation on competition law  WT/REG184/3 
 Page 21 
 
 
  enforcement34 and to establish a joint working group in this regard.  Articles 14.3 and 14.4 contain 
obligations to ensure that monopolies designated af ter entry into force of the Agreement and state 
enterprises do not operate in a manner that creates obstacles to trade and investment.  In particular 
these provisions provide that both monopolies and state enterprises must accord non-discriminatory treatment in the sale of their goods or services;  with respect to monopolies this obligations applies 
also to the purchase of their goods or services.  Article 14.5 allows monopolies and state enterprises to 
charge different prices in different markets provi ded that such differences are based on normal 
commercial considerations. 
62. The Chapter also includes provisions dealing w ith cross-border consumer protection whereby 
the Parties agree to enhance their cooperation in ar eas covered by their cons umer protection laws, in 
particular fraudulent and deceptive commercial practices against consumers (Article 14.6);  as well as 
provisions to facilitate the cross-border recognitio n of and enforcement of monetary judgements 
(Article 14.7).  Articles 14.8, 14.9 and 14.10 deal  respectively with transp arency, cooperation and 
consultations with respect to matters covered by the Chapter.  Recourse to dispute settlement is 
provided exclusively with respect monopolies, the non-discriminatory provisions relating to state 
enterprises, transparency and the obligation to ente r into consultations at the request of the other 
Party. 
(c) Government procurement 
63. Chapter 15 of the Agreement on Government Proc urement consists of 15 articles, one annex 
and one side letter (Table II.1).  The Chap ter's core principles are national treatment, 
non-discrimination and transparency in the conduc t of government procurement.  Other general 
principles include the prohibition of offsets and non-disclosure of information.  Parties undertake to 
treat suppliers, goods and services of the other Party in the same way as their own domestic suppliers, 
goods and services.  Annex 15-A sets out the government  entities that are covered by the Chapter, the 
threesholds that are applied, and the specific ty pes of procurements and procurement arrangements 
that each Party has exempted from the application of  the Chapter.  A Party may modify the coverage 
under the Chapter subject to notification and offers of compensatory adjustment to the other Party 
where necessary to maintain a level of coverage co mparable to that existing prior to the notification 
(Article 15.13). 
64. In addition to the general principles, the Chapte r contains a number of disciplines with respect 
to transparency and procurement procedures;  th ese include provisions on publ ication of procurement 
information (Article 15.3) and of notices of inte nded procurement (Article 15.4);  time-limits for 
tendering (Article 15.5);  inform ation on intended procurement, including provisions on technical 
specifications to avoid these being used to cr eate unnecessary obstacles to trade (Article 15.6);  
tendering procedures (Article 15.7), including selec tive tendering (Article 15.7.6-7) and limited 
tendering procedures (Article 15.8);  and treatment of tenders and awarding of contract (Article 15.9).  
The Chapter also sets basi c procedures for dealing with supplier challenges to the conduct or outcome 
of a procurement (Article 15.11). 
65. The Chapter applies only to procurements by en tities listed in the annexes with a value equal 
to or above certain thresholds.  Annex 15-A lis ts 78 U.S. Federal Departments.  With a few 
exceptions, Australia's list in Annex 15-A includes all Federal Departments and all other agencies 
covered by its Financial Manageme nt and Accountability Act 1997.  In addition, both Australia and 
the United States have submitted a number of re gional government entities to the disciplines of 
Chapter 15.  Thresholds vary for different groups of entities and according to the nature of purchases 
(goods, services, or construction services); they are ad justable for inflation, and for changes in the 
                                                     
 
34 The current framework for cooperation is set  out in two bilateral treaties relating to 
Cooperation on Antitrust Matters  (1982) and Mutual Antitrust Enforcement Assistance  (1999). WT/REG184/3 
Page 22  
 
  U.S. dollar / Special Drawing Right (SDR) exchange rate.
35  The general thresholds for both goods 
and (other) services are laid down in Table II.7 below.36 
Table II.7 
United States - Australia thres hold Values for government procurement of goods and services (except co nstruction services) 
United States 
Classification Threshold Value 
GPA  Threshold Value 
(US$) – USAFTA 
Section 1 – Central Government Entities  SDR 130,000 (US$ 193,000 for 2006-07) 58,550 
Section 2 – Regional Government Entities  SDR 355,000 (US$ 526,000 for 2006-07) 477,000 
Section 3 – Government Enterprise s  SDR 400,000 (US$593,000 for 2006-07)37 292,75138 
Australia 
Classification Threshold Value 
GPA Threshold Value 
(A$) – USAFTA 
Section 1 – Central Government Entities 81,800 
Section 2 – Regional Government Entities 666,000 
Section 3 – Government Enterprises Not Applicable39 
409,000 
 
66. For more information on procurem ent related provisions relating to services see Section IV.A 
in document WT/REG184/4. 
(d) Intellectual property 
67. Intellectual property rights issues are the subject of Chapter 17 of the USAFTA.  They are 
also referenced in Annex 2-C on pharmaceuticals, in the Chapter on investment and specifically in 
Article 11.7 (compulsory licensing) and Article 11. 9 (patents and proprietary information).  The 
Agreement seeks to enhance the protection of intell ectual property and the enforcement of intellectual 
property rights.  General provisions of the Chapte r (Article 17.1) include national treatment and 
transparency obligations as well as an indication of th e Parties' intentions or actions with regards to 
other international agreements on intellectual propert y.  The Chapter consists of 29 Articles and three 
exchange letters. 
68. In trademarks and geographical indications (A rticle 17.2) the Agreement establishes that 
marks include marks in respect of goods and services , collective marks, and certification marks, and 
that geographical indications are eligible for protect ion as marks.  Each Party must provide protection 
for marks and geographical indications, as well as e fficient and transparent procedures governing the 
application for protection of marks and geographical  indications.  With respect to copyright and 
related rights (Article 17.4, 17.5 an d 17.6), each Party must provide copyright protection for the life of 
the author plus 70 years (for works measured by a person's life), or a total of 70 years (for corporate works).  The Agreement includes provisions on an ti-circumvention and sets out obligations with 
respect to the liability of Internet service provide rs in connection with copyright infringements that 
take place over their networks.  As for patents (a rticle 17.9), the Parties agree to make patents 
available for any invention, subject to limited excl usions, and confirm the availability of patents for 
new uses or methods of using a known product. 
69. The Chapter includes further provisions relating to domain names (Article 17.3);  performers 
and producers of phonograms (Art icle 17.6);  protection of encrypted programme-carrying satellite 
                                                     
 
 35 Annexes 15-A, 15-B and 15-C. 
36 The United States is one of the 40 Members (as of April 2007) of the WTO Agreement on 
Government Procurement (GPA), but not Australia .  Australia therefore has no commitments under 
the GPA. 
 37 Exceptions to the general threshold are the Te nnessee Valley Authority, the five Power Marketing 
Administrations of the Department of Energy, and the  St. Lawrence Seaway Development Corporation for 
which the threshold is specified in dollar terms at US$ 250,000.  
38 Exceptions include the power generating projects financed by the U.S. Rural Utilities Services, for 
which the threshold is US$538,000. 
 39 Australia is not a Member (a s of March 2007) of the GPA.  WT/REG184/3 
 Page 23 
 
 
  signals (Article 17.7);  designs (Article 17.8);  and enforcement of intellectual property rights 
(Article 17.11). 
(e) Environment 
70. Chapter 19 sets out the Parties’ commitments re garding trade-related environmental issues.  
The Agreement makes clear that it is inappropriate  to weaken or reduce domestic environmental 
protections to encourage trade or investment (Article 19.2) and includes procedural guarantees to 
ensure that interested persons have fair, equitable and transparent access to judicial and administrative 
proceedings and effective remedies for violations of  environmental laws (Article 19.3).  The core 
obligation, that a Party shall not fail to effectivel y enforce its environment laws, through a sustained 
or recurring course of action or inaction, in a manner affecting trade between the Parties, is subject to 
dispute settlement under the Agreement.  The di spute settlement procedures for environment are 
equivalent to the general dispute settlement provisi ons of the Agreement, and, in this regard, the 
Chapter provides for the establishment of a c onsultative mechanism for environment issues 
(Article 19.7).  With respect to environmental c ooperation, the Parties acknowledge the importance of 
ongoing joint environmental activities and agree to  negotiate a United States-Australia Joint 
Statement on Environmental Cooperation to further support these activities (Article 19.6);  they also 
agree to continue seeking means to enhance the mutual supportiveness of multilateral environmental 
agreements and international trade agreements to which they are both parties (Article 19.8). 
(f) Labour 
71. Chapter 18 sets out the Parties’ commitments rega rding trade-related labour rights.  Under the 
Agreement, Australia and the United States reaffirm their obligations as members of the International 
Labour Organization (ILO) and under the 1998 ILO Declaration on Fundamental Principles and 
Rights at Work, and they agree to strive to ensu re that their laws protect the fundamental labour 
principles embodied in the ILO Declaration and listed in the Agreement (Article 18.1).  The 
Agreement makes clear that it is inappropriate to  weaken or reduce domestic labour protections to 
encourage trade or investment (Article 18.2) and includes procedural guarantees to ensure that 
workers and employers have fair, equitable and tran sparent access in the enfo rcement of labour laws 
(Article 18.3).  The core enforceable commitment, th at a Party shall not fail to effectively enforce its 
labour laws, through a sustained or recurring course of  action or inaction, in a manner affecting trade 
between the Parties is subject to dispute settleme nt under the Agreement.  The dispute settlement 
procedures for labour are equivalent to the genera l dispute settlement provisions of the Agreement, 
and, in this regard, the Chapter provides for the establishment of a consulta tive mechanism for labour 
issues (Article 18.6).  With respect to labour c ooperation, the Parties agree to cooperate on labour 
matters of mutual interest and explore ways to advance labour standards on a bilateral, regional and 
multilateral basis (Article 18.5).  (g) Electronic commerce 
 
72. The Agreement contains provisions regarding electronic commerce.  Parties affirm in 
Article 16.2 that if a service is delivered electroni cally (such as by email, or online), it should not be 
treated any differently than if it was delivered by post or in person.  It makes permanent the current 
practice of not subjecting such transmissions to cu stoms duties (Article 16.3).  It also requires the 
Parties to afford non-discriminatory treatment to digital products, including software, music, video, 
and text (Article 16.4).  The Chapter's other ar ticles deal with the authentication of electronic 
signatures and digital certificates, online consumer protection, paperless trading and definitions of 
terms. WT/REG184/3 
Page 24  
 
  D. S
ECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  
73. The Agreement contains sector-specific pr ovisions on agriculture and pharmaceutical 
products.40   With respect to agriculture, in addition to the market access provisions for agricultural 
products covered under Chapter 2 and the safeguards on agricultural products, the Parties agree to 
work together to reach an agreem ent on agriculture in the WTO, a nd to consult on agricultural issues 
that may arise at that or other multilateral fora where they both participate (Article 3.1).  In Article 3.2 
the Parties establish a Committee on Ag riculture to serve as a forum to, inter alia , promote and 
address barriers to trade in agricultural goods, or consult on agricultural export competition issues. 
74. The Parties are not allowed to introduce or ma intain any export subsidy on agricultural goods 
destined for the other Party.  This rule may be waived if a non-Party exports an agricultural good to 
one of the Parties with the benefit of export subsidies and the Parties do not agree on specific 
measures to be applied by the importing Party to counter the effect of the export subsidies 
(Article 3.3). 
75. Pharmaceutical products are also subject to specific provisions under Annex 2-C of the 
Agreement.  This Annex stipulates: agreed pr inciples on innovative pharmaceuticals and facilitating 
high quality healthcare;  commitments on transparen cy in the listing of pharmaceutical products for 
reimbursement by the Parties' federal healthcare authorities;  the creation of a Medicines Working 
Group to discus related issues;  a commitment to seek to advance the ongoing dialogue between the 
Parties' regulatory authorities on expediting access to  innovative medical products;  and an obligation 
to permit pharmaceutical manufacturers to disseminate  information on their products via the internet 
under certain conditions as permitted under the Party's laws, regulations and procedures. 
E. GENERAL PROVISIONS OF THE AGREEMENT  
1. General provisions and exceptions 
76. General provisions and exceptions are laid  down in Chapter 22 of the Agreement.  
Article 22.1.1 stipulates that Article XX (general exceptions) of the GATT 1994 is incorporated into 
and made part of the Agreement mutatis mutandis ;  Article 22.1 addresses "Essential Security" and 
partially incorporates into the Agreement Article  XXI (security exceptions) of the GATT 1994.  The 
Chapter also includes exceptions for Taxation (Artic le 22.3) and general provisions for Disclosure of 
Information (Article 22.4) a nd Corruption (Article 22.5). 
2. Accession 
77. The Agreement is open to accession by any count ry or group of countries on terms to be 
agreed between the Parties and the countries concerned (Article 23.1). 
3. Institutional framework 
78. Chapter 20 of the Agreement addresses the transparent administration of laws and regulations. 
Provisions under this Chapter include the designation of  contact points (Article 20.1);  the publication 
of laws, regulations, and administrative rulings  relating to matters covered by the Agreement 
(Article 20.2);  notification and provision of info rmation (Article 20.3);  administrative agency 
processes (Article 20.4);  and review and appeal (Article 20.5).  
79. Chapter 21 establishes a Joint Committee and sti pulates its mandate (Article 21.1.2), which 
includes, among others, the review of the genera l functioning of the Agreement;  facilitate the 
                                                      
40 Agricultural goods are those contained in Annex 1A of the WTO Agreement on 
Agriculture.  WT/REG184/3 
 Page 25 
 
 
  avoidance and settlement of disputes;  and the consideration and adoption of amendments to 
the Agreement.  Article 21.1.3 provides for th e timing and location of the meetings of the 
Joint Committee. 
4. Dispute settlement 
80. Chapter 21 Section B sets out the institutional arrangements that apply to the avoidance and 
settlement of disputes between the Parties regarding questions of interpretation or application of the 
Agreement.41  The dispute settlement processes of USAFTA  are limited to the Parties, whereas private 
parties (such as investors) have no direct right of  action under the Agreement to challenge government 
actions.  Article 21.4 provides a forum election cl ause for matters falling under both the Agreement 
and another trade agreement to which both Parties are party; however, once the complaining Party has 
chosen the forum to settle the dispute, that foru m shall be used to the exclusion of the others 
(exclusive forum clause).   
81. The USAFTA provides for detailed steps in th e process for dispute resolution, the most 
salient of which are synoptically described below.  The USAFTA also requires the Parties to establish 
model rules of procedure, which rules shall ensure  that the dispute settlement process is to be open 
and transparent and that the oral hearings, written su bmissions and final panel reports are to be made 
available to the public, subject to the requirement to protect confidential information.  There is no 
mechanism for appellate review of  panel decisions in the USAFTA. 
82. Some special procedures apply for disputes which arise under either the labour or 
environment chapters of the USAFTA, such as in  relation to consultations and the selection of 
panellists with relevant expertise.  Further, if a Pa nel in its final report determines that a Party has not 
conformed with its commitment to effectively enfo rce its environmental or labour laws, and if the 
Parties fail to resolve the matter, a Party may request the Panel to impose an annual monetary 
assessment on the other Party, which monies are to be paid into a trust fund and used for appropriate 
labour or environmental initiatives (Article 21.12). 
 
  
 
  
 
  
 
   
 
  
 
  
 
  
 
                                                      
41 Chapter 21 Section B does not apply to matters  arising under Chapter 6 (SPS);  Article 8.5 
(Technical Regulations) of Chapter 8 on TBT;  and several provisions contained in Chapter 14 dealing 
with Competition (see paragraph 62).  Notably, it is  possible to bring nullification and impairment 
cases only with respect to the commitments made under six chapters, namely: Chapters 2 (National 
Treatment and Market Access for Goods);  3 (Agric ulture); 5 (Rules of Origin);  10 (Cross-Border 
Trade in Services);  15 (Government Procur ement);  17 (Intellectual Property Rights). WT/REG184/3 
Page 26  
 
   
 
Table II.8 Synopsis of USAFTA's Dispute Settlement Provisions 
 
 
5. Relationship with other agreements concluded by the Parties 
83. In Article 1.1.2 the Parties affirm their existi ng rights and obl igations with respect to each 
other under existing bilateral and multilateral agreements to which both are parties, including the 
WTO Agreement. 
84. Article 1.3 states that the Agreement shall not be  construed to derogate  from any international 
legal obligation between the Parties that entitles tr eatment in goods and services more favourable than 
that accorded under the Agreement. 
85. Table II.6 below lists the RTAs to which the United States and Australia are parties which 
have been notified to the GATT/WTO, and are in force. 
 
  
 
(Art. 1802)  
(Art. 1809.4)  -
If no notice of implementation or no  
satisfactory solution (Art. 1811)  
- 4) Consultations  (Art. 21.5) 
Referral to the Joint Committee  (Art. 21.6) 
Composition  (Art. 21.7) 
Rules of procedure  (Art. 21.8) 
Panel examination  (Art. 21.9) 
Panel final report  (Art. 21.9) 60 or 20 days (perishable goods) 
Written request for establishing a Panel 
(Art. 21.7) 60 or 30 days (perishable goods) 
Max 60 days for composition 
Panel initial report to be sent to 
the Parties   (Art. 21.9) 180 days 
45 days 
Report becomes public  (Art. 21.9) 15 days from Parties' release Implementation  
In agreement by the Parties(Art. 21.10) 
Non-implementation   
Negotiations on mutually acceptable 
compensation (Art. 21.11.2) 45 days from receipt of final report 
failure to reach agreement 
Notice of retaliation (Art. 21.11.2) 
− If no agreement on compensation (30days); or 
− failure by non conforming Party to observe 
agreed compensation or resolution  
Retaliation (Art. 21.11.2) 
− 30 days after retaliation notice; or 
− after Panel determination (See below) 
Panel reconvenes 
upon request from losing party  (Art. 21.11.3) 30 days from retaliation notice 
Panel determination  (Art. 21.11.3)  90 or 120 days from panel reconvention 
Monetary assessment (Art. 21.11.5)  
upon notice from the losing Party within: 
− 30 days from notice of retaliation; or 
− 20 days from panel determination No retaliation 
Failure to pay monetary assessment  WT/REG184/3 
 Page 27 
 
 
   
 
Table II.9  United States and Australia:  Particip ation in RTAs (notified and in force) 
Partner/Agreement GATT/WTO Notification 
 Date of entry into 
force Type of agreement 
Year Provision(s) 
UNITED STATES  
Bahrain 1-Aug-06 Goods & services 2006 GATT Art. XXIV & GATS Art. V 
CAFTA-DR 1-Mar-06 Goods & services 2006 GATT Art. XXIV & GATS Art. V 
Morocco 1-Jan-06 Goods & services 2005 GATT Art. XXIV & GATS Art. V 
Chile 1-Jan-04 Goods & services 2003 GATT Art. XXIV & GATS Art. V 
Singapore 1-Jan-04 Goods & services 2003 GATT Art. XXIV & GATS Art. V 
Jordan 17-Dec-01 Goods & services 2002 GATT Art. XXIV & GATS Art. V 
NAFTA 1-Jan-94 Goods 1993 GATT Art. XXIV 
 1-Apr-94 Services 1995 GATS Art. V 
Israel 19-Aug-85 Goods 1985 GATT Art. XXIV 
AUSTRALIA  
United States 1-Jan-05 Goods & services  2004 GATT Art. XXIV & GATS Art. V 
Thailand 1-Jan-05 Goods &services 2004 GATT Art. XXIV & GATS Art. V 
Singapore 28-Jul-03 Goods & services 2003 GATT Art. XXIV & GATS Art. V 
New Zealand (CER) 1-Jan-83 Goods 1983 GATT Art. XXIV 
 1-Jan-89 Services 1995 GATS Art. V 
SPARTECA42 1-Jan-81 Goods 1981 Enabling Clause 
Papua New Guinea (PATCRA) 11-Feb-77 Goods 1976 GATT Art. XXIV 
 
Source :  WTO Secretariat. 
 
 
                                                      
42 South Pacific Regional Trade and Economic Cooperation Agreement:, Cook Islands, Fiji, 
Kiribati, Marshall Islands, Micronesia, Nauru, New Zealand, Niue, Papua New Guinea, Solomon 
Islands, Tonga, Tuvalu, Vanuatu, Western Samoa. WT/REG184/3 
Page 28   
 
  ANNEX I 
 
Indicators of trade liberalization under the USAFTA
 
  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by the United St ates and Australia to MFN imports is shown in 
Tables A.1 (United States) and A.2 (Australia) belo w, broken into agricultural, industrial and total 
products.  Applied MFN duty rates in 2005 for the United States and 2004 for Australia serve as a basis for comparison.
1 
2. The United States  has a variable MFN tariff structure.  Its (unweighted) average MFN rate 
(2005) for all goods is 4.3 per cent.  The average applied tariff on industrial products is roughly half 
that applied to agricultural products.  Duty-free tari ff lines account for 37.6 per cent of all tariff lines.  
On entry into force, Australian exporters enjoyed a relative margin of preference of 71 per cent  for 
industrial products vis-à-vis  the prevailing average MFN tariff in 2005, and a relative margin of 
preference of 45 per cent for agricultural goods.   
Table A.1 
United States:  Indicators of MFN tariff rate s and preferential rates for Australian imports 
ALL PRODUCTS Agricultural products Industrial products 
Average applied 
tariff Average applied tariff Average applied tariff Origin 
of 
goods Year 
Overall
(%) On 
dutiablea 
(%) Share of 
duty-free 
tariff lines
(%) Overall 
(%) On 
dutiablea 
(%) Share of 
duty-free 
tariff lines
(%) Overall 
(%) On 
dutiablea 
(%) Share of 
duty-free 
tariff lines
(%) 
MFN 2005 4.3 7.2 37.6 8.0 12.7 23.4 3.8 6.5 40.3 
Australia 2005 1.6 9.9 82.4 4.4 16.8 64.7 1.1 7.9 85.6 
 2008 1.3 9.6 84.6 3.1 18.4 74.7 1.0 7.7 86.4 
 2010 0.8 7.1 86.5 2.7 15.9 74.7 0.5 4.8 88.7 
 2012 0.8 6.5 86.8 2.3 13.4 74.8 0.5 4.7 89.0 
 2014 0.7 6.4 88.1 1.8 16.5 81.3 0.5 4.7 89.3 
 2015 0.2 15.1 97.2 1.6 15.1 82.0 0.0 0.0 100.0b 
 2017 0.2 12.4 97.2 1.3 12.4 82.3 0.0 0.0 100.0b 
 2018 0.2 10.9 97.3 1.2 10.9 82.6 0.0 0.0 100.0b 
 2021 0.1 6.5 97.3 0.7 6.5 82.8 0.0 0.0 100.0b 
 2022 0.1 8.9 98.4 0.5 8.9 89.5 0.0 0.0 100.0b 
 Note: In-quota tariff lines and specific duties are excluded from the statistics. Ad valorem  part of other non- ad valorem  duties is 
included in the statistics. 
 
a "On dutiable" excludes duty-free tariff lines. b One line remains positive (44219080 Spri ng-type clothespins made of wood). 
 
Source:  Data provided by the United Stat es (MFN-2005 and preferential rates). 
 
3. Australia  has a variable MFN tariff structure.  It s (unweighted) average MFN rate (2004) is 
4.3 per cent on all goods, with a lower average tariff applied to agricultural goods than to industrial 
products.  Almost 50 per cent of Australia's tariff lines are duty-free at an MFN level.  On entry into 
force, United States exporters enjoyed a relative ma rgin of preference of 70.8 per cent for industrial 
products vis-à-vis  the prevailing average MFN tariff in 2005, and a relative margin of preference of 
100 per cent for agricultural goods.   
 
   
                                                     
 
1 MFN rates were taken from the respective schedules of the United States and Australia 
provided by the parties.  WT/REG184/3 
 Page 29 
 
 
  Table A.2 
Australia:  Indicators of MFN ta riff rates and preferential tariffs for United States imports 
ALL PRODUCTS Agricultural products Industrial products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin 
of 
goods Year 
Overall 
(%) On 
dutiablea 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiablea
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiablea 
(%) Share of 
duty-free 
tariff lines
(%) 
MFNb 2005 4.3 8.1 47.6 1.4 5.0 72.2 4.8 8.3 43.0 
United States  2005 1.2 8.8 86.6 0.0 0.0 100.0 1.4 8.8 84.4 
 2010 0.5 4.9 89.6 0.0 0.0 100.0 0.6 4.9 87.9 
 2014 0.5 4.9 89.7 0.0 0.0 100.0 0.6 4.9 88.0 
 2015 0.0 0.0 99.8 0.0 0.0 100.0 0.0 0.0 99.8 
a "On dutiable" excludes duty-free tariff lines. 
b Five specific duties applied by Australia on chees e and curd are excluded from the MFN statistics 
 
Source:  Data provided by Australia (M FN-2004 and preferential rates). 
 
4. Table A.3 shows the market access opportuniti es in the United States for Australia's top 
25 exports, which in 2002- 2004 accounted on average for 63.8 per cen t of Australia's global exports.  
The table shows in which year all tariff lines corresp onding to the product definition (i.e. applying to 
the 6-digit HS code used to capture the volume of trade) will become duty-free in the United States, 
and the applicable rules of origin. 
5. Australia's top 25 exports to the world (at the HS  6-digit level) cover a total of 73 tariff lines 
(25 duty-free and 48 subject to MFN duties).  Eight of Australia's top 25 exports (which account for 
14 tariff lines and 23.13 per cent of Australia's av erage global exports in 2002-2004) already benefit 
from zero MFN duties in the United States' marke t;  a further five products are only partially 
liberalized since they include tariff lines (at the HS 8-digit level) subject to duties.  Of the 54 dutiable 
tariff lines, 39 lines gain immediate duty-free access  in 2005 (which account for 14 products at the 
HS 6-digit level);2 two more products (at the HS-6 digit level) are to be granted duty-free access in 
2010 and 2015 respectively (accountin g for 6 tariff lines);  and the out-of quota duty rates applicable 
to 6 tariff lines (at the HS-8 digit level) are to be phased out by 2022;  the remaining three tariff lines 
(pertaining to the same HS 6-digit product) are not subject to duty elimination.  The margin of preference granted by the United States to Australia under the USAFTA varies from 0 to 13.5  percentage points. 
Table A.3 
United States:  Market access opportunities  under USAFTA, for Australia's top 25 exports 
Australia's top 25 export pr oducts to the world  in 
2002-04 Access Conditions to United States' import markets 
MFN Under the USAFTA 
Duty-free in: Share in global 
exports 
Average MFN 
applied ratea 
2005 
2010 
2015 
2022 HS number and description of the product 
(%) (%) 
No. of duty-free 
tariff lines 
No. of  dutiable 
tariff lines 
No. of tariff 
lines Origin rules 
9999AA 11.23 n.a.       n.a. 
270112 Bituminous coal 10.25 0 1 0     CTH 
710813 Other non-monetary gold semi-
manufactured forms 4.64 1.4 2 1 1    CTCh 
Table A.3 (Cont'd) 
                                                      
2 Three of these products include tariff lines (HS 8- digit level) subject to TRQs;  for these, the 
in-quota duty is eliminated in 2005 while the out-o f quota duty is phased-out over a number of years 
(see Table A.3). WT/REG184/3 
Page 30  
 
  Australia's top 25 export pr oducts to the world  in 
2002-04 Access Conditions to United States' import markets 
MFN Under the USAFTA 
Duty-free in: Share in global 
exports 
Average MFN 
applied ratea 
2005 
2010 
2015 
2022 HS number and description of the product 
(%) (%) 
No. of duty-free 
tariff lines 
No. of  dutiable 
tariff lines 
No. of tariff 
lines Origin rules 
260111 Iron ores and concentrates, other than 
roasted iron pyrites non-agglomerated 4.52 0 1 0     CTH 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 4.44  0 2 2    CTH 
281820 Aluminium oxide, other than artificial 
corundum 3.13 0 1 0     CTS except from heading 2606 or 
subheading 2620.40;  or chemical 
reaction rule 
100190 Wheat and meslin other than durum wheat. 2.89 2.8 0 2 2    CTCh 
760110 Aluminium, not alloyed 2.15 1.3 1 1 1    CTCh 
271111 Natural gas 2.07 0 1 0     CTS  except from subheading 
2711.21 
020230 Meat of bovine animals, frozen boneless 1.90 13.5 0 8 7+1
b   1CTCh 
220421 Other wine in containers holding 2 
litres or less 1.89  0 5   5  CTH 
271011 Light oils and preparations 1.79 7 0 5 5    CTH; or CTC + chemical reaction 
rule 
510111 Shorn wool 1.70 0 4 1  1   CTCh 
300490 Other medicaments 1.48 0 2 0     CTS 
020130 Meat of bovine animals, fresh or 
chilled boneless 1.43 13.5 0 8 7+1b   1CTCh 
870324 Vehicles specially designed for 
travelling on snow; golf cars and similar 
vehicles of a cylinder capacity exceeding 
3,000 cc 1.28 2.5 0 1 1    
CTH + 50% RVC (Net Cost method) 
870323 Vehicles specially designed for 
travelling on snow; golf cars and similar vehicles of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 cc 1.03 2.5 0 1 1    CTH + 50% RVC  (Net Cost 
method) 
260300 Copper ores and concentrates. 0.99  0 1 1    CTH 
740311 Cathodes and sections of cathodes 0.86 1 0 1 1    CTH 
520100 Cotton, not carded or combed. 0.86 0 3 13 6+4b   4CTCh except from heading 54.01 
through 54.05 or 55.01 through 55.07. 
760120 Aluminium alloys 0.85 1.6 1 2 2    CTCh 
100300 Barley. 0.80  0 2 2    CTCh 
260800 Zinc ores and concentrates. 0.59 0 1 0     CTH 
440122 Wood in chips or particles non-coniferous 0.55 0 1 0     CTH 
847330 Parts and accessories of the machines 
of heading 84.71 0.54 0 6 0     CTS 
Total  63.86  25 54 39 1 5 6  
 
a  AVEs were not estimated; the average is calculated on ad valorem  and the ad valorem  part of non- ad valorem  duties only. 
b  The additonal lines refer to products subject to TRQs;  for these lines the in-quota tariff is zero in 2005 while the out of  quota is 
eliminated in 2022. 
 
Source : WTO estimates, based on date provided by the Unite d States' authorities and UNSD, Comtrade data.  
 
 
6. Table A.4, similarly, shows the market access opportunities in Australia for the United States' 
top 25 exports (at the HS 6-digit level), which a ccounted for 30.6 per cent of the United States' 
exports to the world in 2002-2004.  The table s hows in which year all HS 6-digit tariff lines 
corresponding to the product definition (i.e. applyi ng to the 6-digit HS code used to capture the 
volume of trade) will become duty-free in Austra lia, and the applicable rules of origin.    WT/REG184/3 
 Page 31 
 
 
  7. The United States' top 25 exports to the world (at the HS 6-digit level) cover a total of 
66 tariff lines (45 duty-free and 21 subject to MFN duties).  Fifteen of the United States' top 25 exports (which account for 39 tariff lines and 19. 35 per cent of the United States' average global 
exports in 2002-2004) already benefit from zero MF N duties in the Australian market;  a further 
six products are only partially liberalized since th ey contain tariff lines subject to duties.  Of the 
21 dutiable tariff lines 17 are made duty-free immediatel y in 2005 (accounting for nine products at the 
HS-6 digit level);  two more products (accounting fo r the remaining 4 tariff lines) are to be granted 
duty-free access in 2010.  The margin of preferen ce granted to the United States by Australia under 
the USAFTA varies from 0 to ten percentage points. 
Table A.4  
Australia:  Market access opportunities under USAFTA, for United States' top 25 exports 
United States' top 25 export products in 2002-04 Access Conditions to Aust ralia's import markets 
MFN Under the USAFTA 
Duty-free : Share in global 
exports 
Average  MFN 
applied tariff 
2005 
2010 HS number and description of the product 
(%) (%) 
No. of duty-free 
tariff lines 
No. of dutiable 
tariff lines 
No. of tariff 
lines Origin rules 
854221 Digital monolithic integrated circuits 3.98 0 1 0   CTS; or CTC to assembled 
semiconductor devices, integrated 
circuits or microassemblies of subheading 8541.10 through 
8542.90 from unmounted chips, 
wafers or dice of subheading 8541.10 through 8542.90 or from 
any other subheading 
9999AA 3.13      n.a. 
880240 Airplanes and other aircraft, of an unladen 
weight exceeding 15,000 kg 2.98 0 1 0   CTS 
847330 Parts and accessories of the machines of 
heading 84.71 2.31 0 1 0   CTS 
880330 Other parts of airplanes or  helicopters 1.69 0 1 0   CTS 
870323 Of a cylinder capacity exceeding 1,500 cc 
but not exceeding 3,000 cc 1.42 10 0 4 2 2 CTH + 50% RVC (Net Cost 
method) 
870324 Of a cylinder capacity exceeding 3,000 cc 1.36 10 0 4 2 2 CTH + 50% RVC (Net Cost 
method) 
870899 Other parts and accessories of the motor vehicles of headings 87.01 to 87.05. 1.33 8.8 1 3 3  CTS; or 50% RVC (Net Cost 
method) 
870829 Parts and accessories of bodies (including cabs) other than safety seat belts  1.16 6.7 1 2 2  CTS; or 50% RVC (Net Cost 
method) 
300490 Other medicaments 1.05 0 1 0   CTS; or chemical rule 
854229 Monolithic integrated circuits other than 
digital 1.04 0 1 0   CTS; or CTC to assembled 
semiconductor devices, integrated 
circuits or microassemblies of subheading 8541.10 through 
8542.90 from unmounted chips, 
wafers or dice of subheading 8541.10 through 8542.90 or from 
any other subheading 
841191 Of turbo-jets or turbo-propellers 0.97 0 1 0   CTH 
120100 Soya beans, whether or not broken. 0.91 0 1 0   CTCh 
710239 Diamonds non-industrial worked 0.72 0 1 0   CTCh 
100590 Maize (corn) other than seeds 0.70 0 1 0   CTCh 
271019 Other than liquefied petroleum gases and 
other gaseous hydrocarbons 0.66 0 25 0   CTH; or CTC + chemical reaction 
rule 
847180 Other units of automatic data processing machines 0.64 0 1 0   CTS 
840734 Of a cylinder capacity exceeding 1,000 cc 0.61 6.7 1 2 2  CTH; or 50% RVC (Net Cost 
method) 
Table A.4 (Cont'd)  WT/REG184/3 
Page 32  
 
  United States' top 25 export products in 2002-04 Access Conditions to Aust ralia's import markets 
MFN Under the USAFTA 
Duty-free : Share in global 
exports 
Average  MFN 
applied tariff 
2005 
2010 HS number and description of the product 
(%) (%) 
No. of duty-free 
tariff lines 
No. of dutiable 
tariff lines 
No. of tariff 
lines Origin rules 
843143 Parts of boring or sinking machinery of 
subheading 8430.41 or 8430.49 0.60 5 0 1 1  CTH; or 35% RVC (build up 
method) or 45% RVC (build-down method) 
901890 Other instruments and appliances 0.59 0 1 0   CTS; or 35% RVC (build up 
method) or 45% RVC (build-down 
method) 
847989 Other machines and mechanical appliances having individual functions 0.58 1.7 2 1 1  CTS 
851790 Parts of electrical apparatus for line 
telephony or line telegraphy 0.56 0 1 0   CTS; or 35% RVC (build up 
method) or 45% RVC (build-down 
method) 
852990 Other parts suitable for use solely or 
principally with the apparatus of headings 85.25 to 
85.28. 0.56 3.3 1 2 2  CTC; or 35% RVC (build up 
method) or 45% RVC (build-down 
method) 
870431 Motor vehicles for the transport of goods with spark-ignition inte rnal combustion piston 
engine not exceeding 5 tonnes 0.55 5 0 2 2  CTH + 50% RVC (Net Cost 
method) 
100190 Wheat and meslin other than Durum wheat 0.55 0 1 0   CTCh 
Total 30.62  45 21 17 4  
n.a. Not applicable.  
Source : WTO estimates, based on date provided by the Aust ralian' authorities and UNSD, Comtrade data.WT/REG184/3 
Page 33  
 
 
  ANNEX II 
 
Tariff-rate quotas under the USAFTA  
  
1. On beef, the U.S. eliminates the in-quota duty rate on imports under Australia's WTO TRQ. 
In addition, Australia is permitted to export ad ditional quantities under an additional TRQ, which 
increases progressively from zero MT at en try into force to 70,000 MT in year 18.
1  The out-of-quota 
tariff will remain at 26.4 per cent for the first eight years, after when it is progressively reduced until 
it reaches zero in year 18.  After year 18, there w ill be unlimited access at zero duty, subject to price-
based safeguards.2   
2. On dairy products, the United States applies different quotas to each of the products 
covered.3 In-quota duties became zero at entry into for ce.  In addition, the quota allocated for each 
product will increase in annual instalments for the 17  years following entry into force.  Starting in 
year 18, the in-quota volume will increase by betw een 3 and 6 per cent every year.  The out-of-quota 
duty is not reduced.  As noted in the chapter on ag riculture, the Agreement allows for consultations 
on market access for dairy products after year 20 of the Agreement.  
3. For tobacco and cotton from Australia imported into the United States, an initial volume of 
250 MT will be allowed duty free entry.  The in-quota volume for each product will increase by 3 per cent for 17 years, as the over-quota duty is ph ased out.  In year 18, unlimited duty-free access 
is granted.  The same treatment is granted to peanuts and peanut products, except that the initial 
quota is established at 500 MT.  For avocados, the in-quota volume of 4,000 MT is applied as of 
year two of the Agreement and is divided in tw o seasonal quotas (2,500 MT from September 16 to 
January 31 and 1,500 MT from February 1 to  September 15), and the over-quota duty is 
progressively eliminated through year 17;  at year  18, unlimited volumes of avocados from Australia 
can enter duty-free. 
4. The TRQs for sugar and sugar-containing products  (e.g. cocoa powders, infant formulas, and 
mixed condiments and mixed seasonings) are unchanged.   
 
 
 
  
 
  
 
  
 
  
                                                      
1 The FTA TRQ applies to the following products: 02011050, 02021050 (Beef other than 
carcasses and half carcasses); 02012080, 0201308 0, 02022080, 0 2023080 (Beef other than 
processed).  These products are subject to a quan tity-based safeguard from year nine to 18 
(see paragraph 53).   
2 A price-based safeguard will apply from year 19 onwards on the following products 
(see paragraph 54):  02011050, 02021 050 (Beef other than carcasses and half carcasses);  02012080, 
02013080, 02022080, 02 023080 (Beef other than processed).  
3 Cream and ice cream, condensed milk, butte r/butterfat, skim milk powder, other milk 
powder, other dairy products, cheddar cheese, Amer ican-type cheese, Swiss-type cheese, European-
type cheese, other cheese, and goya cheese. WT/REG184/3 
Page 34  
 
   
 
Table B.I.A  United States: USAFTA FTA-preferential Ta riff-rate quotas for agricultural products  
TRQ at entry into force 
(2005) Liberalization scheme  
HS tariff line code (description) 
Quantity in-quota 
duty Quantity in-quota 
duty 
Bovine meat fresh, chilled or frozen     
0201.10.50, 0201.20.80, 0201.30.80, 0202.10.50, 0202.20.80, 
0202.30.80 (9913.02.05) 
 0 MT 0 Unlimited 0 
Dairy products     
0401.30.25, 0403.90.16, 2105.00.20 (9913.04.05) 
 7,500,000 L 0 19,053,000 L 
Plus 6% every 
year thereafter, compounded 
annually 0 
0401.30.75, 0402.21.90, 0403.90.65, 0403.90.78, 0405.10.20, 
0405.20.30, 0405.90.20, 2106.90.26, 2106.90.36 (9913.04.10) 1,500 MT 0 2,407 MT 
Plus 3% every 
year thereafter, 
compounded annually 0 
0402.10.50, 0402.21.25 (9913.04.15) 100 MT 0 160 MT 
Plus 3% every year thereafter, 
compounded 
annually 0 
0402.21.50, 0403.90.45, 0403.90.55, 0404.10.90, 2309.90.28, 
2309.90.48 (9913.04.20) 4,000 MT 0 7,492 MT 
Plus 4% every 
year thereafter, compounded annually 0 
0402.29.50, 0402.99.90, 0403.10.50, 0403.90.95, 0404.10.15, 
0404.90.50, 0405.20.70, 1517.90.60, 1704.90.58, 1806.20.26, 1806.20.28, 1806.20.36, 1806.20.38, 1806.20.82, 1806.20.83, 
1806.20.87, 1806.20.89, 1806.32.06, 1806.32.08, 1806.32.16, 
1806.32.18, 1806.32.70, 1806.32.80, 1806.90.08, 1806.90.10, 1806.90.18, 1806.90.20, 1806.90.28, 1806.90.30, 1901.10.30, 
1901.10.40, 1901.10.75, 1901.10.85, 1901.20.15, 1901.20.50, 
1901.90.43, 1901.90.47, 2105.00.40, 2106.90.09, 2106.90.66, 2106.90.87, 2202.90.28 (9913.04.25) 1,500 MT 0 3,811 MT 
Plus 6% every year thereafter, 
compounded 
annually 0 
0402.91.70, 0402.91.90, 0402.99.45, 0402.99.55 (9913.04.30 ) 3,000 MT 0 7,621 MT 
Plus 6% every year thereafter, 
compounded 
annually 0 
0406.10.08, 0406.10.88, 0406.20.91, 0406.30.91, 0406.90.97 
(9913.04.35) 3,500 MT 0 7,640 MT 
Plus 5% every 
year thereafter, compounded 0 
0406.10.18, 0406.10.48, 0406.10.58, 0406.10.68, 0406.20.28, 
0406.20.48, 0406.20.53, 0406.20.63, 0406.20.75, 0406.20.79, 0406.20.83, 0406.30.18, 0406.30.48, 0406.30.53, 0406.30.63, 
0406.30.75, 0406.30.79, 0406.30.83, 0406.40.70, 0406.90.18, 
0406.90.32, 0406.90.37, 0406.90.42, 0406.90.68, 0406.90.74, 0406.90.88, 0406.90.92 (9913.04.40)  2,000 MT 0 4,366 MT 
Plus 5% every year thereafter, 
compounded 
annually 0 
0406.10.28, 0406.20.33, 0406.20.67, 0406.30.28, 0406.30.67, 
0406.90.12, 0406.90.78  (9913.04.45) 750 MT 0 1,204 MT 
Plus 3% every year thereafter, 
compounded 0 
0406.10.38, 0406.20.39, 0406.20.71, 0406.30.38, 0406.30.71, 
0406.90.54, 0406.90.84 (9913.04.50) 500 MT 0 802 MT 
Plus 3% every 
year thereafter, 
compounded annually 0 
0406.90.33 (9913.04.55) 2,500 MT 0 Unlimited 0 
0406.90.48 (9913.04.65) 500 MT 0 1,091 MT 
Plus 5% every 
year thereafter, 
compounded  0  WT/REG184/3 
 Page 35 
 
 
  TRQ at entry into force 
(2005) Liberalization scheme  HS tariff line code (description) 
Quantity in-quota 
duty Quantity in-quota 
duty 
annually 
Table B.I.A (Cont'd)  
Avocados     
0804.40.00 (9913.08.05) 
(if entered 1/1 to 1/31 or 9/16 to 12/31) 0 MT 0 Unlimited 0 
0804.40.00 (9913.08.25) 
(if entered from 2/1 to 9/15) 0 MT 0 Unlimited 0 
Peanuts     
1202.10.80, 1202.20.80, 2008.11.15, 2008.11.35, 2008.11.60 
(9913.12.05) 500 MT 0 Unlimited 0 
Tobacco     
2401.10.65, 2401.20.35, 2401.20.87, 2401.30.70, 2403.10.90, 
2403.91.47, 2403.99.90 (9913.24.05) 250 MT 0 Unlimited 0 
Cotton     
5201.00.18, 5201.00.28, 5201.00.38, 5201.00.80, 5202.99.30, 
5203.00.30 (9913.52.05) 250 MT 0 Unlimited 0 
 
Source: HTSUS   
 
Table B.I.B  United States: WTO Country-specific tariff-rate quotas for agricultural products for which the in-quota  
duty was eliminated for Australia 
 
HS tariff line code (description) 
Quantity in-quota 
duty 
Bovine meat fresh, chilled or frozen   
0201.10.10, 0201.20.10, 0201.20.30, 0201.20.50, 0201.30.10, 0201.30.30, 0201.30.50, 0202.10.10, 
0202.20.10, 0202.20.30, 0202.20.50, 0202.30.10, 0202.30.30, and 0202.30.50 378,214 MT 0 
Dairy products    
0402.29.10, 0402.99.70, 0403.10.10, 0403.90.90, 0404.10.11, 0404.90.30, 0405.20.60, 1517.90.50, 
1704.90.54, 1806.20.81, 1806.20.24, 1806.32.04, 1806.32.60, 1806.90.05, 1806.90.15, 1901.10.35, 
1901.10.80, 1901.20.05, 1901.20.45, 1901.90.42, 1901.90.46, 2105.00.30, 2106.90.06, 2106.90.64, 2106.90.85, and 2202.90.24 4,105 MT but 
at least 
1,016,046 kg for Australia 
 0 
0402.99.10, 
 6,857.3 MT 
but at least 
91,625 kg for 
Australia  0 
 
0406.10.04, 0406.10.84, 0406.20.89, 0406.30.89, and 0406.90.95 3,050,000 kg 0 
0406.10.24, 0406.20.31, 0406.20.65, 0406.30.24, 0406.30.65, 0406.90.08, and 0406.90.76 2,450,000 kg 0 
0406.90.46 500,000 kg 
 0 
0406.10.34, 0406.20.36, 0406.20.69, 0406.30.34, 0406.30.69, 0406.90.52, and 0406.90.82 1,000,000 kg 0 
2309.90.24 and 2309.90.44 7,399.7 MT 
but at least 
56,699  kg for 
Australia  0 
 
Source: HTSUS  
 
__________