House of Representatives

Second Reading Speech

Ms O'NEIL (Hotham - Minister for Home Affairs and Minister for Cyber Security)

I move:

That this bill be now read a second time.

The Customs Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) Bill 2022 amends the Customs Act 1901 to implement the India-Australia Economic Cooperation and Trade Agreement.

India is a key strategic and economic partner for Australia and the Australian government is committed to accelerating our economic ties with this critical country. The India-Australia Economic Cooperation and Trade Agreement will be a very important driver for deepening our relationship.

Recent years have seen remarkable growth in the trading relationship between India and Australia, fuelled by the many complementarities between our two economies. The India-Australia Economic Cooperation and Trade Agreement will secure Australia's foothold in the world's fastest growing major economy and enable Australian businesses to unlock or expand their operations in a market of nearly 1½ billion consumers, with a GDP of $4.3 trillion.

The agreement represents significant new trade diversification opportunities for Australian business. From the day IA-ECTA enters into force, 85 per cent of Australian goods exports by value to India will enter without tariffs and an additional five per cent will have tariffs eliminated over periods not exceeding 10 years. This is commercially significant for up to $14.8 billion worth of Australian merchandise trade destined for the Indian market each year. The agreement will also provide certainty and support for Australian services suppliers and professionals doing business in India, currently our third-largest services export market.

The amendments contained in this bill will insert into the Customs Act new rules of origin for 'Indian originating goods' and provisions for document retention and verification for 'Australian originating goods'. The amendments will outline when imported goods may be considered to have originating status and be eligible for preferential tariff treatment. Complementary amendments to the Customs Tariff Act 1995 will provide for the preferential rates of customs duty applicable to goods that are originating under the agreement. These will be made by the Customs Tariff Amendment (India-Australia Economic Cooperation and Trade Agreement Implementation) Bill 2022.

These bills were referred to the Joint Standing Committee on Treaties (JSCOT) on 1 August 2022 and debate on the bills will be dependent on the advice provided in its report. It is anticipated that JSCOT will report in mid-November.

I commend this bill to the House.

Debate adjourned.