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  1. Negotiations

Australia

In the last two years the Australian Government has finalised bilateral trade agreements with China, Korea and Japan, which are now in force. The Trans-Pacific Partnership agreement between 12 Pacific Rim countries has been agreed, but is being reviewed by a Parliamentary committees before Parliament votes on the implementing legislation. The TPP will not come into force until six of the 12 countries including the US and Japan pass the implementing legislation, which is expected to take two years.

The current conservative Coalition government has agreed to include Investor-State Dispute Settlement (ISDS) provisions in the Korea and China bilateral FTAs as well as the TPP. ISDS allows foreign companies to bypass national courts and sue governments for compensation if they can argue that a change in law or policy harms their investment. The previous Labor government had a policy against ISDS, and even a previous Coalition government did not include ISDS in the Australia-US free trade agreement in 2004.

There is widespread opposition in the Australian community to the inclusion of ISDS in the TPP. The TPP is also controversial because it extends monopoly rights on expensive life-saving biologic medicines, which will mean more years of very high prices before cheaper versions become available. There are also grave concerns about its impacts on food labelling standards and expanded access for temporary workers without additional protection of workers’ rights. A recent World Bank study found that Australia was only likely to gain almost no economic benefit from the deal.

Australia is currently involved in multilateral negotiations towards the PACER-plus agreement with New Zealand and 14 Pacific Island countries, the Regional Comprehensive Economic Partnership (RCEP) and the Trade In Services Agreement (TISA). It is also negotiating bilateral trade agreements with India and Indonesia and will begin talks with Hong Kong and Taiwan later this year and the EU next year.

Contributed by AFTINET

last update: May 2016
Photo: AFTINET

Senate passes Malaysia free trade deal
29-Nov-2012
Senators on Thursday approved legislation to implement the agreement, which will lead to almost all Australian goods being able to enter Malaysia free of import duties.
Why Australia walked away from investor state rights in trade deals - And why Canada should too
15-Nov-2012 Troy Media
Much of the debate surrounding the Canada-China trade deal revolves around the dispute settlement clause in the deal. Troy Media contacted Professor Thomas Faunce of the Australian National University in Canberra to explain why the Australian government decided to discontinue the practise of seeking inclusion of investor state dispute settlement provisions in trade agreements with developing countries.
Govt delay in Australia-Korea FTA jeopardises $770m beef export market
12-Nov-2012 Beef Central
Australia’s share of the Korean export beef market could be slashed by half over the next 15 years, unless a Free Trade Agreement can be expediently established between the two countries, according to the industry
Malaysia-Australia FTA in Parliament
3-Nov-2012 Invest in Australia
Australian exporters of dairy products, automotive parts, iron and steel will benefit from improved market access under the MAFTA. Malaysia has also committed to allowing majority Australian ownership of service providers in such industries as telecommunications, insurance, education, tourism, research and development, accountancy and mining-related services.
Australia nudges India trade beyond coal
16-Oct-2012 WSJ
Australian Prime Minister Julia Gillard attended a business forum in New Delhi today, part of her government’s attempts to capitalize on booming trade with India.
Australia upholds tobacco branding ban
15-Aug-2012
Australia’s High Court has rejected a challenge by the world’s biggest tobacco companies which are seeking to overturn a law requiring cigarettes to be sold in plain packaging from the start of December.
Fair trade group condemns big tobacco’s use of trade agreements to continue plain packaging fight after High Court defeat
15-Aug-2012
“We welcome the High Court decision as a vindication of the Government’s right to regulate tobacco as an addictive substance that still kills 15,000 Australians per year,” Dr Patricia Ranald, Convener of the Australian Fair Trade and Investment Network, said today.
Business demands sovereign risk protection in FTAs
13-Aug-2012
The Gillard government’s refusal to reconsider its decision not to demand sovereign risk protection for Australian companies in free-trade agreements has been met with loud objections from leading business groups who say such provisions are vital to international trade, according to The Australian Financial Review.
Australian business leaders launch trade agreement campaign
13-Aug-2012 Tax News
Members of the Australian business community have launched a campaign for trade agreements to include provisions to allow private companies to sue foreign governments for breach of contract or property rights.
Free trade agreement with Malaysia opens up education, telco sectors
22-May-2012
Malaysia and Australia signed a free trade agreement that will allow Malaysia to export all goods duty-free into Australia once the deal comes into force on January 1, 2013.