The Report contains the Committee’s review of nine treaty actions:
Agreement between the Government of Australia and the Government of Hungary concerning Oil Stock Contracts;
Agreement on Mutual Recognition in Relation to Conformity Assessment, Certificates and Markings between the Government of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland;
Agreement on Trade in Wine between the Government of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland;
Treaty between Australia and the Kingdom of the Netherlands on the Ongoing Presence of Australian Personnel in the Netherlands for the Purpose of Responding to the Downing of Malaysia Airlines Flight MH17;
Agreement between the Government of Australia and the Government of the Kingdom of Thailand relating to Air Services;
Agreement between the Government of Australia and the Government of the Democratic Republic of Timor-Leste relating to Air Services;
Agreement between the Government of Australia and the Government of Papua New Guinea relating to Air Services;
Agreement between the Government of Australia and the Government of the Italian Republic regarding the undertaking of work by cohabiting family members of diplomatic, consular and technical and administrative staff; and
Convention between the Government of Australia and the Government of the State of Israel for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance.
The Committee’s inquiry into the first eight treaty actions listed above lapsed at the dissolution of the 45th Parliament and were re-referred following the re-establishment of the Committee in the 46th Parliament. The Convention between Australia and the State of Israel on taxation was referred on 9 September 2019 and the Committee agreed to a request from the Treasurer that the treaty be considered urgently.
The Agreement between the Government of Australia and the Government of Hungary concerning Oil Stock Contracts will support Australia to meet its obligations as a member of the International Energy Agency (IEA). As a member of the IEA, Australia is a party to the Agreement on an International Energy Program (IEP Treaty). Under the IEP Treaty, Australia is required to maintain oil stocks that can sustain national consumption for at least 90 days with no net oil imports (the 90-day obligation). Australia has been non-compliant with this obligation since March 2012. The Committee once again raised ongoing concerns over the length of time it is taking to devise and implement a solution to Australia’s non-compliance. The Committee recommends that binding treaty action be taken.
Both of the Agreements between Australia and the United Kingdom (UK) are intended to secure existing arrangements between the two countries following Brexit. Given the uncertainty about the exact date of the UK’s formal departure from the European Union, the Government has exercised the National Interest Exemption (NIE) provisions to ensure that if needed, both Agreements could enter into force ahead of the UK’s possible departure day of 12 April 2019. No further recommendations of the Committee are required.
The Treaty between Australia and the Kingdom of the Netherlands on the Ongoing Presence of Australian Personnel in the Netherlands for the Purpose of Responding to the Downing of Malaysia Airlines Flight MH17 is the fifth prolongation of the original treaty action that entered into force on 1 August 2014. The treaty entered into force on 28 June 2019 under the NIE provisions to ensure that Australian personnel deployed in the Netherlands remained protected when the most recent prolongation of the Original Treaty expired on 30 June 2019.
While the immediate emergency response to the incident has concluded, the investigation and the preparation for the prosecution of the perpetrators in the Dutch criminal system are ongoing. The Agreement reflects this new phase. Indictments of four individuals for their alleged roles in the downing of MH17 were announced by the Joint Investigation Team on 19 June, 2019. Unlike the previous treaty actions, the Agreement does not specify an expiry date, providing ongoing certainty as to protections for Australian personnel in the Netherlands.
The three air services agreements provide access for Australian airlines to the aviation markets of Thailand, Timor-Leste, and Papua New Guinea, and provide airlines from those countries access to the Australian market. Each agreement is drawn from Australia’s model Air Services Agreement, and with a few exceptions, are substantially similar.
The Committee raised concerns regarding the dangers imposed for flights transiting conflict zones. The Committee is aware that the safety and security of citizens is paramount and will continue to take an interest in this issue. The Committee recommends that binding treaty action be taken for all three air services agreements.
The Agreement between the Government of Australia and the Government of the Italian Republic regarding the undertaking of work by cohabiting family members of diplomatic, consular and technical and administrative staff will allow family members of diplomatic staff stationed in Australia and Italy to engage in paid work for the duration of an official’s posting in the receiving country. The Committee recommends that binding treaty action be taken.
The Convention between the Government of Australia and the Government of the State of Israel for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance was signed in Canberra on 28 March 2019 and tabled in the Parliament on 9 September 2019. The proposed Convention establishes an internationally accepted framework for the taxation of cross-border financial transactions and is the latest addition to Australia’s network of 44 tax-related treaties. The Committee recommends that binding treaty action be taken.
The Report also contains the Committee’s review of the following six minor treaty actions:
2018 amendments to Annex VI of the International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocols of 1978 and 1997 relating thereto (MARPOL) MEPC.305(73);
2017 Amendments to the International Convention for the Safety of Life at Sea Resolution MSC.421(98);
2018 Amendments to the International Convention for the Safety of Life at Sea Resolution MSC.436(99);
Adjustments to the Montreal Protocol on Substances that Deplete the Ozone Layer relating to the controlled substances on Annex C, Group I adopted at Quito on 9 November 2018;
Amendment to the Treaty on Extradition between Australia and Ireland; and
Acceptance of the accessions of Andorra, Armenia, Brazil, Colombia, Costa Rica, Montenegro and Morocco to the Convention on the Taking of Evidence Abroad in Civil or Commercial Matters.