List of Recommendations

Recommendation 1

3.92
The Committee recommends that the Australian Government develop and release a plan for trade diversification, which includes:
a focus on maintaining relationships with existing close trading partners as well as expanding trade with other countries;
a plan for diversifying Australia’s range of export goods and services; and
enhanced diplomatic capability to identify and secure new supply chains and markets.

Recommendation 2

3.93
The Committee recommends that the Australian Government continue its plan to create greater trade opportunities for Australian exporters, including through:
delivering on its India Economic Strategy;
encouraging Australian businesses to make greater use of free trade agreements that are currently underutilised;
developing an Enhanced Economic Engagement Strategy with Vietnam; and
working with our trading partners to eliminate non-tariff barriers.

Recommendation 3

3.94
The Committee recommends that the Australian Government commit to building the Asia-capability of Australian exporters and investors, including:
greater development and/or utilisation of programs to boost Asia-literacy of businesses and training for jobs of the future;
promotion of outward investment in Asia; and
a post-COVID-19 international education plan.

Recommendation 4

3.95
The Committee recommends that the Australian Government increase its encouragement of key Asian languages and cultures for K-12 students, to create better understanding and Asia-capability for future generations.

Recommendation 5

3.96
The Committee recommends that the Australian Government:
promote to Australian businesses the benefits of the Regional Comprehensive Economic Partnership (RCEP) (signed 15 November 2020), to ensure businesses are equipped to utilise the agreement; and
continue to provide support to Australian businesses who wish to take advantage of the RCEP.

Recommendation 6

3.97
The Committee recommends that the Australian Government, including intelligence agencies, take steps to increase industry awareness of national security and national interest risks in relation to trade and investment, particularly for sensitive and critical sectors.

Recommendation 7

3.98
The Committee recommends that Austrade work with Australian exporters to help them:
factor into their planning the market risks associated with economic slowdowns of key trading partners, natural disasters and trade challenges; and
identify risks in relation to trade and investment.

Recommendation 8

3.99
The Committee recommends that the Australian Government provide further guidance to all board members of exporting businesses to ensure that they are aware of their obligations under the Corporations Act, to exercise a reasonable degree of care and diligence when deciding to undertake international trade.

Recommendation 9

3.100
The Committee recommends that the Australian Government:
work with the states and territories, industry and university sector to investigate new options to increase domestic funding for universities and university research;
in consultation with the states and territories, require universities to publicly disclose the receipt of funding (including for research) from foreign state-linked bodies or individuals; and
if the veto powers contained in the Australia’s Foreign Relations (State and Territory Arrangements) Act 2020 allow, consider restrictions on foreign state-linked funding to Australian universities where such funding is considered to not be in the national interest.

Recommendation 10

3.106
The Committee recommends that the Australian Government:
encourage the Productivity Commission to research international best practice regarding government support for innovation and industry;
build links with other national bodies that are tasked with this mission; and
adapt and apply these learnings to Australia’s circumstances.

Recommendation 11

3.107
The Committee recommends that the Australian Government:
develop an industry and university engagement strategy to foster innovation and the commercialisation of research; and
partner with industry members and universities to implement the strategy, by providing adequate funding, guidance and support.

Recommendation 12

3.108
The Committee recommends that the Australian Government in partnership with the university sector seek to take advantage of our low COVID-19 risk to further engage with new and emerging education markets and promote Australian universities as high quality, safe institutions.

Recommendation 13

3.109
The Committee recommends that the Australian Government work with industry, unions and universities to significantly increase Australia's sovereign manufacturing capacity.

Recommendation 14

3.110
The Committee notes the Productivity Commission’s current review of Australia’s resilience to global supply chain disruptions, and further recommends that the Australian Government ensure that Australia has adequate domestic supplies of key resources, such as fuel and medical supplies, to lessen the impact of global supply chain disruptions in the event of a crisis.

Recommendation 15

3.111
The Committee recommends that the Australian Government:
provide incentives to stimulate the growth of ‘industries of tomorrow’ including inter alia Australia's video game development industry; and
provide similar support to that which it provides to Australia's film and television industry.

Recommendation 16

4.102
The Committee recommends that the Australian Government establish a clear, consistent definition of national interest for the purposes of foreign investment. The Committee further recommends that the Australian Government issue clear guidance on how the national interest test is applied, to provide confidence to investors and the community that it is being applied consistently and in a way that meets community expectations and creates opportunities for Australian workers, businesses and communities. This could include specific guidance for foreign investment in property, business and strategic assets, and how the Foreign Investment Review Board considers investment from entities where the ultimate beneficiary is or has links to a foreign state.

Recommendation 17

4.103
The Committee recommends that the Australian Government consider implementing the international standards for measuring foreign direct investment, to ensure both the ‘immediate’ and ‘ultimate’ owners of an investment are recorded.

Recommendation 18

4.104
The Committee recommends that the Australian Government increase the quality and timeliness of economic intelligence, both in terms of domestic production and foreign trade markets.

Recommendation 19

4.105
The Committee recommends that the Australian Government provide a report on whether the 99-year lease of the Port of Darwin to a foreign company will be subject to the Australia’s Foreign Relations (State and Territory Arrangements) Act 2020 (the Act) and if so, consider taking measures to have the Port of Darwin brought back under Australian ownership if current arrangements are not deemed to be in the national interest. Further, the Committee recommends that other ports and strategic infrastructure owned by, or leased to, foreign corporations also be reviewed under the Act.

Recommendation 20

4.106
The Committee recommends that the Australian Government investigate ways to incentivise domestic investment from Australian superannuation funds.

Recommendation 21

4.107
The Committee recommends that the Australian Government consider the establishment of a national development bank to assist in the development of Australian manufacturing capacity.

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About this inquiry

The Committee will inquire into and report on diversifying Australia's trade and investment profile.



Past Public Hearings

01 Oct 2020: Canberra
30 Sep 2020: Canberra
14 Sep 2020: Canberra