Bilateral, regional and multilateral trade negotiations

Programs 1.1 and 1.9

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Deliverables

2013–14

2014–15

Australia’s trade and economic opportunities are maximised, including through:

  • negotiating, finalising and implementing Australia’s Free Trade Agreement (FTA) agenda and exploring opportunities for FTAs with other trading partners1

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  • enhancing Australia’s commitment to regional trade negotiations, including the TPP, RCEP and PACER Plus2

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  • effective participation in the World Trade Organization (WTO), including through the Doha Round, leadership of the Cairns Group of agricultural exporting countries and to promote and defend Australia’s interests through existing means such as WTO dispute settlement.

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To assist developing countries by contributing to reducing poverty and lifting living standards through sustainable economic growth.

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Key Performance Indicators

2013–14

2014–15

The department’s advocacy, negotiation and liaison on Australia’s foreign, trade and economic, development and international security interests contributes positively to bilateral, regional and multilateral outcomes that help ensure the security and prosperity of Australia and Australians.

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Achievement of significant development results.

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1 Deliverable for 2013–14 included effective leadership in advancing our interests through sectoral initiatives.

2 New deliverable for 2014–15.

Overview

The department actively pursued Australia’s interests in international trade and investment negotiations and advocated a strengthened global trading system.

In an outcome of historic significance, the department, under the Trade and Investment Minister, led an intensive program of work to conclude free trade agreement (FTA) negotiations with China in November 2014 and achieve signature in June 2015. The agreement, the culmination of a decade-long endeavour, will deliver significant opportunities for exporters and investors and create an environment conducive to long-term growth in bilateral economic links.

Our FTA negotiations with India were accelerated with the aim of achieving a timely outcome that reflects Australia’s interests. We also worked to ensure the early entry into force and utilisation by Australian business of FTAs with Japan and the Republic of Korea.

With Austrade, we began a national series of FTA information seminars to increase awareness in the business community and promote the use of the FTAs, particularly among small and medium enterprises. The department also designed and scoped an innovative and sophisticated digital information service that will help business access information on FTAs.

The department led a whole-of-government team in the negotiations underway to conclude the 12-nation Trans-Pacific Partnership (TPP) Agreement, as well as parallel negotiations for the Regional Comprehensive Economic Partnership (RCEP). Both of these agreements are potential stepping stones toward the conclusion of a free trade area that includes all the economies of the Asia–Pacific region.

We continued to press for the conclusion of the long-running WTO Doha Round of multilateral negotiations, but very limited progress was made in narrowing differences in the positions. On other aspects of the WTO agenda, Australia was the seventh WTO Member to adopt the WTO Agreement on Trade Facilitation (ATF) which will streamline global customs and border procedures. The department pursued Australia’s interests in major plurilateral trade negotiations, specifically the Trade in Services Agreement (TiSA) and the Environmental Goods Agreement. We conducted public consultations that resulted in an announcement by the Government that Australia would pursue accession to the WTO Agreement on Government Procurement (GPA).

Working across government, the department used the opportunity of the 7th WTO Trade Policy Review of Australia to highlight the Government’s record in trade liberalisation and reform.

The department released the Government’s Strategy for Australia’s Aid for Trade Investments. We worked to increase the impact of Australia’s aid for trade investments in driving sustainable economic growth and poverty reduction in developing countries in our region, including through measures aimed at improving regulatory and governance arrangements and infrastructure and building the capacity of the private sector.

Free trade agreement negotiations

Concluded bilateral negotiations

Figure 16: Percentage of Australia’s total trade with countries covered by FTAs

Pie chart showing percentage of Australia’s total trade covered by FTAs

Korea–Australia Free Trade Agreement

Following signature of the Korea–Australia Free Trade Agreement (KAFTA) in April 2014, the department worked to ensure domestic processes in Australia and Korea were completed to enable entry into force on 12 December 2014. We coordinated the Government’s participation in inquiries by two parliamentary committees and assisted in the passage of customs implementing legislation through Parliament.

KAFTA, an agreement with our third-largest export market, delivered two tariff cuts in quick succession for Australian exporters: one on entry into force and one on 1 January 2015 for goods with phased tariff reductions. On entry into force, 80.4 per cent of Australia’s exports (by value in 2014) to Korea entered duty free. In 2014, Australian goods exports to Korea were worth more than $20 billion. As part of KAFTA’s ongoing work to enhance recognition of professional qualifications, we facilitated the signature of a Mutual Recognition Agreement between Engineers Australia and the Korean Ministry of Science, ICT and Future Planning in April 2015.

Japan–Australia Economic Partnership Agreement

Prime Minister Tony Abbott and Prime Minister Shinzō Abe signed the Japan–Australia Economic Partnership Agreement (JAEPA) on 8 July 2014. Japan is Australia’s second-largest trading partner, with two-way trade in goods and services worth over $70 billion, and our largest investor from Asia. The text of the agreement was released on the same day, as well as a range of explanatory materials prepared by the department to explain the outcomes to stakeholders and the public. Following signature, the department led the Government’s participation in the Joint Standing Committee on Treaties inquiry into JAEPA and assisted in the passage of associated customs implementing legislation. We worked to ensure domestic treaty processes were completed in both Australia and Japan to allow JAEPA to enter into force on 15 January 2015. A JAEPA Joint Committee meeting was also held in Tokyo on that day.

Achieving entry into force in early 2015 delivered Australian exporters the benefit of two early tariff cuts: one on entry into force and one on 1 April 2015 for goods with phased tariff reductions. On entry into force, 94.3 per cent of Australia’s exports (by value in 2014) to Japan entered duty free.

China–Australia Free Trade Agreement

The department drove accelerated negotiations on the China–Australia Free Trade Agreement (ChAFTA) in 2014. We led the 21st round of negotiations in September 2014 and intense intersessional meetings to advance the negotiations and supported the Trade and Investment Minister in further negotiations during his visit to China in November 2014. The Prime Minister and President Xi Jinping announced the conclusion of ChAFTA negotiations on 17 November 2014. With the negotiations concluded, the department finalised the legal text and oversaw translation ready for signature. Mr Robb and his Chinese counterpart signed ChAFTA on 17 June 2015 in Canberra. On the same day, the agreement was introduced into Parliament and the text was released publicly, along with a range of explanatory materials on the department’s website.

Mr Robb, ChAFTA signing, Canberra, June 2015

Minister for Trade and Investment, Andrew Robb AO (right), and Chinese Commerce Minister, Gao Hucheng, watched by the Prime Minister, Tony Abbott, sign the China–Australia Free Trade Agreement, Canberra, 17 June 2015. [Office of the Prime Minister]

Ongoing bilateral negotiations

India Comprehensive Economic Cooperation Agreement

Negotiations to conclude a Comprehensive Economic Cooperation Agreement (CECA) (see Video) between Australia and India, launched in 2011, accelerated in 2014–15. During official visits to India and Australia in September and November 2014 respectively, Prime Minister Abbott and Prime Minister Narendra Modi agreed to work for an early conclusion of an equitable, balanced, comprehensive and high quality agreement.

The department subsequently led the 6th round of negotiations in New Delhi in December 2014, hosted the 7th round of negotiations in Canberra in April 2015, and conducted a series of intersessional meetings to develop a mutually acceptable package of outcomes. We supported Mr Robb’s visits to India in September 2014 and January, April and June 2015 to advance the negotiations.

Indonesia Comprehensive Economic Partnership Agreement

General and presidential elections in Indonesia in 2014 affected the pace of IA-CEPA negotiations, which are still in the preparatory phase. The department aims to take forward a pilot project on skills exchange. The Indonesia–Australia Business Partnership Group, comprising respective chambers of commerce and bilateral business associations, proposed the skills exchange in its joint position paper on IA-CEPA.

Regional negotiations

Trans-Pacific Partnership Agreement

The department played a leading role within government in negotiations for the TPP agreement. Once concluded, the TPP will be a key building block towards further regional economic integration in the Asia–Pacific region. The 12 countries negotiating the TPP—Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam—represent almost 40 per cent of the global economy.

Figure 17: Australia’s trade and investment relations with TPP countries in 2014

Infographic depicting Australia’s trade and investment relations with Trans-Pacific Partnership (TPP) countries in 2014

TPP intellectual property working group meeting

DFAT Intellectual Property lead negotiator, Morna Bassi (seated, centre), TPP intellectual property working group meeting, Hawaii, April 2015. [DFAT]

The 2014–15 period saw an intensification of negotiations. This included a three-day ministerial meeting for Mr Robb to host his TPP counterparts in Sydney in October 2014. TPP ministers reaffirmed their commitment to finalise an ambitious, comprehensive, high standard and balanced deal, and laid the groundwork for the significant progress acheived at subsequent TPP negotiating sessions. Successful conclusion of the TPP negotiations will present significant opportunities for Australia. These include improved market access for Australian goods and services exports, investment and streamlined trade rules that will reduce the costs of doing business and facilitate Australian participation in regional value chains.

An important aspect of the department’s work has been responding to public and stakeholder inquiries about the negotiations. As is standard practice with the negotiation of international treaties, draft TPP texts are not public documents. Even so, the department took every opportunity to engage with stakeholders and seek views. In the 2014–15 period, talks included industry groups, companies, academics, unions, consumer groups and other civil society groups. In June 2015, following an offer by Mr Robb, department officials also provided interested parliamentarians with a confidential briefing on the TPP and an opportunity to view the negotiating text.

Regional Comprehensive Economic Partnership

The department led negotiations in the mega-regional FTA, the RCEP. RCEP aims to achieve a regional free trade area among 16 participating countries (ASEAN member states plus Australia, China, India, Japan, Republic of Korea and New Zealand), covering nine of Australia’s top 12 trading partners. The department supported Mr Robb’s participation in the 2nd RCEP Ministerial Meeting in August 2014 in Nay Pyi Taw, Burma. Since then, we have led negotiating teams across 12 working groups at three separate rounds in India (December), Thailand (February) and Japan (June). Each round has involved over 550 delegates across all participating countries, reflecting the scale of interests involved.

We hosted intersessional meetings in Australia on services and investment and on rules of origin to advance discussions between rounds.

Pacific Agreement on Closer Economic Relations (PACER) Plus

The department led Australia’s participation in the PACER Plus negotiations, helping to drive significant progress with respect to goods, services, investment, and legal provisions of the agreement. Significant progress was also achieved in moving towards greater convergence on the two issues of key interest to Pacific Island countries in the negotiations—development cooperation and labour mobility.

Gulf Cooperation Council Free Trade Agreement

In March 2014, Gulf Cooperation Council (GCC) foreign ministers approved conditional resumption of FTA negotiations, almost five years after the GCC suspended these with all its partners, including Australia. The GCC has not announced when or with which countries it will resume negotiations.

The department supported Mr Robb in advocating resumption of FTA negotiations with Australia during his visit to the United Arab Emirates, Kuwait, Saudi Arabia and Qatar (the current GCC President) in April 2015.

Implementation of existing free trade agreements

Malaysia–Australia Free Trade Agreement (MAFTA)

At the Australia–Malaysia Trade Ministers’ Meeting in August 2014, Mr Robb and his Malaysian counterpart reviewed business-related opportunities arising from MAFTA since its entry into force on 1 January 2013. They noted businesses, investors and consumers were benefiting from the reduction and elimination of tariffs, as well as from increased access for service providers.

ASEAN–Australia–New Zealand Free Trade Agreement (AANZFTA)

Mr Robb and ministers from the other 11 parties to AANZFTA signed the First Protocol to amend the agreement in Nay Pyi Taw, in August 2014. The first protocol will reduce the information requirements imposed on business when completing certificates of origin, simplify the presentation of the agreement’s rules of origin, and provide for the use of HS 2012 nomenclature. The department worked on Australia’s legal steps for the protocol’s entry into force.

Thailand–Australia FTA (TAFTA)

We held two meetings of the Market Access Implementing Committee under the TAFTA in March and June 2015. These reviewed the treatment of Australian agricultural products subject to special safeguards and TAFTA’s agenda for services negotiations.

Singapore–Australia FTA (SAFTA)

In June 2015, the two Prime Ministers announced the Comprehensive Strategic Partnership between Australia and Singapore that included agreement to review SAFTA by July 2016 in line with the goal of establishing a Closer Economic Relationship.

Australia–Chile FTA

The department hosted the second meeting of the Australia–Chile Free Trade Agreement Joint Committee in October 2014. As of 1 January 2015, all remaining tariffs were reduced to zero, except on sugar.

Australia–United States FTA (AUSFTA)

The department continued implementation of AUSFTA, including through bilateral discussions with the United States on agriculture market access in May 2015. Events were held in both the United States and Australia to mark the 10th anniversary of AUSFTA.

Innovation in free trade agreement outreach

To coincide with the implementation of FTAs with Korea and Japan and the conclusion of negotiations with China, the department collaborated with Austrade to begin rolling out a national series of FTA information seminars. The series is designed to increase awareness in the business community of the opportunities presented by the agreements, and promote the use of the FTAs, particularly among small and medium enterprises. With Austrade and other agencies, we delivered 10 seminars between March and June 2015, in various locations across Australia.

FTA information seminar

Assistant Secretary FTA Outreach Unit, Michael Growder (left), and Minister for Trade and Investment, Andrew Robb AO (centre), with Director, Australian Oyster Coast, David Maidment (second left), Acting Executive Director Austrade, Graeme Barty (second right), and Trade Commissioner, Austrade Beijing, David Duke, FTA information seminar, Queanbeyan, 9 April 2015. [DFAT]

The department completed the design concept for a FTA Portal, a sophisticated digital information service to help business, especially small and medium enterprises, make the most of the agreements. A range of focus group consultations were held with peak bodies, business organisations and government in March and June to understand user needs. The concept included a comprehensive tariff finder and rules of origin guide, as well as contextual trade data.

Multilateral trade liberalisation and reform

The department pursued a broad-ranging work program in the WTO to strengthen the multilateral trade rules system and promote Australia’s interests.

In June 2015, Australia became the 7th WTO Member to accept the 2013 Agreement on Trade Facilitation (ATF). We advocated prompt action by other WTO Members to adopt the ATF so that the agreement could enter into force. When it is implemented, the ATF will streamline global customs processes, making it more efficient for Australian businesses to export. The agreement includes provisions for faster release by foreign customs of Australian agricultural and perishable goods, which will assist Australian agricultural exporters.

The department facilitated Australia’s contribution of $6 million over three years to the World Bank’s Trade Facilitation Support Program and a further $1 million to the WTO Trade Facilitation Agreement Facility to assist developing countries to implement the ATF.

The department contributed to efforts to conclude the long-running Doha Round of negotiations, but limited progress was made. As leader of the Cairns Group of agricultural exporting nations, we supported the centrality of agriculture to the ongoing discussions. We organised an informal gathering of trade ministers in the margins of the OECD Ministerial Conference Meeting in Paris in June 2015 to discuss the state of the negotiations. The meeting was co-chaired by Parliamentary Secretary Ciobo, and Kenyan Cabinet Secretary for Foreign Affairs and International Trade, Ambassador Amina Mohamed, in recognition of the fact that Kenya will host the 10th WTO Ministerial Conference (MC10) in December 2015. The meeting confirmed the significant differences in positions of the major countries. MC10 will be a significant milestone in determining the future prospects for the Round.

an informal meeting of WTO Trade Ministers

Australia co-chairs with Kenya an informal meeting of WTO Trade Ministers, Paris, June 2015. Ambassador to the WTO, Hamish McCormick (right), and Parliamentary Secretary, Steven Ciobo (second right), with Kenyan Cabinet Secretary for Foreign Affairs and International Trade, Amina Mohamed. [DFAT]

The department was active in a number of WTO committees, particularly those responsible for trade in goods, agriculture, services and technical barriers to trade. This work gave us important opportunities to monitor members’ compliance with existing agreements and to press for action to address the adverse trade impacts of new measures.

On agriculture, we pursued our concerns in a number of sectors, including beef, wheat, dairy and horticulture, and argued for disciplines on countries’ use of export subsidies and domestic subsidies. We also pressed for improvements in how WTO Members administer agricultural tariff rate quotas with the aim of improving the commercial position of Australian exporters.

The Government announced on 2 June 2015 that Australia would seek accession to the WTO Agreement on Government Procurement (GPA), an agreement which offers legally-binding access to the government procurement markets of its 43 members. GPA membership will provide Australian businesses with greater certainty and transparency in export markets. The department consulted with state and territory governments and industry and community representatives and invited submissions to inform the Government’s decision. Working towards GPA accession was included as part of Australia’s G20 growth strategy.

We participated in negotiations to expand the product coverage of the Information Technology Agreement (ITA), an agreement which eliminates tariffs on information technology products. The participants are working towards an expanded list of products and efforts are underway to reach agreement on specific tariff commitments by the December 2015 WTO Ministerial Conference.

The department hosted the WTO Director-General, Roberto Azevêdo, for a Guest of Government visit in July 2014. His program included participation in the G20 Trade Ministers’ meeting, B20 business forum events and meetings with Australian policymakers. (See also G20.)

The department led participation in the 7th WTO Trade Policy Review of Australia in Geneva, 21–23 April 2015. We presented a national statement to the review outlining the Government’s trade policies and priorities. WTO Members recognised Australia’s liberal approach to trade and strong engagement in the international trade policy agenda. They raised more than 600 questions, including on Australia’s biosecurity regime, use of anti-dumping measures, government procurement system and foreign investment policies.

Plurilateral trade negotiations and agreements

Trade in Services Agreement

In the Trade in Service Agreement (TiSA), we aim to create new architecture that will set a high standard in promoting market opening and regulatory transparency. In time, we support bringing the final TiSA outcome into the WTO so as to enhance the global framework for services trade liberalisation and reform. Negotiations, led by Australia, the United States and the European Union, made good progress on core topics.

The department led negotiating teams to six rounds of negotiations, chairing two. Uruguay’s accession brought the number of participating countries to 24, including both developed and developing countries and accounting collectively for around 70 per cent of global trade in services. We continued to provide information on the negotiations to state and territory governments, industry and community representatives.

Environmental Goods Agreement

Australia has chaired the plurilateral Environmental Goods Agreement (EGA) since negotiations commenced in July 2014. The negotiations are focused on eliminating tariffs on a range of environmental goods. During the year, the number of participating WTO Members increased from 14 to 17, accounting for a critical mass of global trade in environmental goods. When successfully concluded, the EGA promises to make a tangible contribution to sustainable development.

World Wine Trade Group

We worked through the World Wine Trade Group—an informal group comprising Australia, Argentina, Canada, Chile, Georgia, New Zealand, South Africa and the United States—to reduce barriers to global trade in wine. A major focus was on driving a new agenda for Australia’s host year in 2015–16. We pressed for outcomes in areas of commercial significance such as reducing barriers to the cross-border movement of commercial samples and harmonising standards on wine additives. The department also facilitated Australia’s ratification of the protocol on labelling requirements which, by allowing current Australian practices to be accepted by all signatories, will reduce costs.

Issues and themes

Intellectual property (IP)

The department led IP discussions in the WTO and supported government engagement in other international forums, including the World Intellectual Property Organization (WIPO). Our engagement ensured effective and balanced IP outcomes reflective of Australia’s diverse interests. We have coordinated national policy positions with relevant agencies, taking account of industry and other stakeholder views.

On geographical indications, our efforts focused on safeguards to preserve existing rights and continued use of generic product names. At the May 2015 WIPO Diplomatic Conference to revise the Lisbon Agreement, to provide international protection for names that identify the geographic origin of products, Australia was an active observer in mitigating some concerns in the revised agreement.

The department promoted the role of IP in driving innovation. In July 2014, Australia hosted the first Asia–Pacific launch of the Global Innovation Index which assesses how economies are supporting innovation. We worked closely with WIPO and IP Australia to generate awareness of the index as a tool to better understand how innovation boosts economic growth. Innovation was also a theme of Australia’s participation in WTO discussions in February 2015 on the role of women in fostering cross-sectoral collaboration to advance science, technology, and research and development.

Working with partner agencies, the department supported IP projects through the Intellectual Property Committee of the AANZFTA Economic Cooperation Work Program. For example, the Regional Patent Examination Training Program, delivered by IP Australia, helps to enhance the consistency and quality of patent examination in participating offices. For businesses, this improvement in standards creates greater confidence to file patent applications in the region and to transfer technology across borders.

Trade and environment

The department, in cooperation with other agencies, worked in international forums, including the WTO and OECD, to advocate Australia’s trade-related environmental interests. We worked with the Department of Agriculture on the review of the impact of the Government’s Illegal Logging Prohibition Act 2012 on small business.

Trade remedies

The capacity of Australian exporters to take full advantage of any market openings can be undermined by the illegitimate use of trade remedies such as safeguards, anti-dumping and countervailing duty measures. Recourse to such measures has increased since the global financial crisis. The department supported Australian exporters and businesses in defending their access to a range of markets for agricultural, chemical and metals products where their business was affected by trade remedy actions. We have been active in invigorating the WTO’s regular work on trade remedies through the Anti-dumping Practices, Subsidies and Countervailing Measures, and Safeguards Committees. We joined with like-minded countries in an informal group of WTO Members to exchange views on global safeguard practices.

The department undertook a range of activities aimed at ensuring other WTO Members’ compliance with the WTO Subsidies Agreement and subsidy rules, including increased monitoring and encouragement of members to fulfil their transparency obligations.

The department also pursued new approaches to advancing the Doha negotiations on trade remedies and fisheries subsidies. These efforts have generated engagement from our negotiating partners and succeeded in taking the process forward.

WTO dispute settlement and compliance

The department led Australia’s participation in the WTO dispute settlement system.

The defence of Australia’s tobacco plain packaging legislation was our highest priority. WTO dispute settlement panels have been established at the requests of Ukraine, Honduras, Indonesia, Dominican Republic and Cuba. In a welcome development, on 29 May 2015, the panel agreed to Ukraine’s request to suspend its dispute settlement proceedings against Australia with a view to finding a mutually agreed solution. A record number of WTO Members (41 in total) have joined the tobacco plain packaging disputes as ‘third parties’ which allows them to make written and oral submissions in the proceedings.

The department led the preparation of Australia’s first written submission in the disputes and a whole-of-government delegation, including a number of independent experts, at the hearing in June 2015. This was the first opportunity for the parties to engage directly on the arguments and evidence and was a critical step in defending Australia’s measure. A second panel hearing will be held in the second half of 2015.

WTO tobacco plain packaging disputes first panel hearing

Head, Tobacco Plain Packaging Taskforce, Elisabeth Bowes (right), with Senior Counsel, Attorney-General’s Department, Stephen Bouwhuis (left), and Assistant Secretary, Tobacco Control Taskforce, Department of Health, Jackie Davis, WTO tobacco plain packaging disputes first panel hearing, Geneva, June 2015. [DFAT]

We also worked with the Attorney-General’s Department in defending Australia’s tobacco plain packaging measure in the investor-state arbitration by Philip Morris Asia under the Australia–Hong Kong Bilateral Investment Treaty. Australia argued two of its jurisdictional objections at a hearing before the arbitral tribunal in February 2015 in Singapore. If either of Australia’s jurisdictional objections is upheld, the dispute will be resolved and will not proceed to the merits.

The department participated as a third party in a number of additional disputes, including Argentina’s action against the European Union regarding biodiesel and the EU’s action against Russia in the Russia-Pigs matter.

We provided advice on the international trade law implications of a range of initiatives, including sanitary and phytosanitary measures and government procurement. We also provided legal advice on aspects of Australia’s free trade agreements, and on issues arising in trade negotiations. The department managed Australia’s engagement on the review of the WTO’s dispute settlement system which aims to improve and clarify the WTO’s dispute settlement procedures.

WTO accessions

We worked actively in WTO accession negotiations to protect our economic interests and ensure good market access outcomes from new members. In particular, we were successful in having Australia’s definitions of high quality beef incorporated in Kazakhstan’s accession terms and conditions that will be put to the WTO General Council for formal approval. Kazakhstan is likely to become a fully-fledged member of the WTO in the second half of 2015. There are 22 other countries currently negotiating to join the WTO.

Agricultural productivity and food security

In February 2015, our portfolio ministers jointly endorsed a new strategy for Australia’s aid investments in agriculture, fisheries and water. The department initiated several new investments—consistent with the Government’s new aid paradigm and the goal of supporting an open, market-based global trading system—to give practical effect to this strategy. (See also Aid program investments.)

In April 2015, the Government announced support for Grow Asia, which aims to catalyse sustainable agribusiness opportunities in Southeast Asia. We funded the OECD to build the evidence base and intensify engagement with ASEAN members on agriculture and food security policy. We also expanded Australia’s involvement in the G20-initiated Global Agriculture and Food Security Program with new funding to facilitate private sector operations in the Indo–Pacific region.

We have existing investments at work with the private sector and research organisations, including through the Australian Centre for International Agricultural Research, to help small scale farmers and entrepreneurs—particularly women—improve productivity and access markets. For example, the Market Development Facility has already increased incomes by 15 per cent or more for almost 2000 people in Fiji, Timor-Leste and Pakistan. On the strength of this success, the program has recently been expanded to Papua New Guinea and Sri Lanka.

Aid for Trade

The department worked to implement the Government’s target of increasing aid for trade investments to 20 per cent of the aid budget by 2020. Australia is on track to meet this target. Aid for trade’s proportion of the aid budget increased from 12.8 per cent in 2013–14 to 16.4 per cent in 2014–15.

The department developed the Strategy for Australia’s Aid for Trade Investments which establishes a framework to ensure our investments are effective, meet the needs of developing country partners, and align with Australian interests. The strategy encourages innovative approaches, including by applying new technologies, partnering with the private sector, and promoting market-based solutions. Australia’s priority areas for aid for trade investments include:

In July 2014, the portfolio ministers launched Australia’s multilateral aid for trade flagship, the Global Trade Integration Facility (GTIF). GTIF is designed to help developing countries improve their participation in the global trading system, expand their trade flows, and empower women. While relatively new, GTIF investments are beginning to make an impact, including by:

Australia also took a leadership role in the 5th WTO–OECD Global Review of Aid for Trade where we advocated innovative solutions, especially in the Pacific, on services and the empowerment women.

Outlook

The department will manage domestic treaty processes for ChAFTA to support its entry into force in 2015. The CECA negotiations with India will be a high priority that we will seek to conclude in 2015. We will seek to conclude TPP negotitions and then consider next steps of implementation. We will progress our RCEP negotiations.

Plenary session on Small and Vulnerable Economies, the 5th WTO–OECD Global Review of Aid for Trade

Director Multilateral Aid for Trade Section, Arnold Jorge, representing Australia, plenary session on Small and Vulnerable Economies, the 5th WTO–OECD Global Review of Aid for Trade, June 2015. [World Trade Organization]

The department will continue its advocacy for countries to implement the WTO ATF. We will engage constructively in multilateral negotiations to conclude the Doha Round in the lead-up to MC10 in Nairobi in late December 2015. Given the strong differences between key WTO Members, this will be a challenge, and an important element of our work will be working to bridge these differences.

Preparations for our bid to accede to the WTO GPA will gather pace. Our aim is to conclude the EGA negotiations ahead of MC10. We will make further progress in the TiSA negotiations and support efforts to finalise negotiations on ITA expansion.

Informing business of Australia’s North Asia FTAs and encouraging their use will be a particular focus for the department, working closely with Austrade and other agencies. The FTA seminar series will continue nationally through 2015 and 2016. The department will work with a vendor to deliver the FTA Portal, with regular steps to incorporate feedback.

The scale-up of aid for trade investments will continue in line with the Government’s 2020 target. Future investments will focus on priority areas such as trade facilitation, agriculture, economic empowerment of women, global value chains and services.