Additional comments of Coalition senators
1.1
The Korea-Australia Free Trade Agreement (KAFTA) represents a positive
outcome for Australia. The evidence received from Australian companies and peak
business organisations during the inquiry highlighted the benefits that will
accrue for the Australian economy. While the reduction in tariffs will place
some additional competitive pressure on certain sectors, it will also result in
more competitive pricing of items which Australians consume. In particular, KAFTA
restores Australia's competitive position as an exporting nation in relation to
the United States, Canada and other countries which have reached, or are
about to conclude, trade agreements with Korea. Timely ratification of KAFTA
will potentially provide two initial tariff reductions, one on ratification and
another at 1 January 2015, expanding the opportunities for Australian
businesses in this important high-value marketplace.
1.2
Coalition senators do not accept most of the majority report's findings,
particularly on the merits of KAFTA for the Australian economy. However,
Coalition senators endorse the committee's final recommendation that KAFTA
should be implemented without further delay.
1.3
In particular, Coalition senators disagree with two of the majority
report's recommendations – the recommendation to initiate discussions with
Korea for a side letter to limit the scope of the investor state dispute
settlement (ISDS) provisions and the recommendation for the Australian
Government not to agree to ISDS provisions in future trade agreements.
Recommendation
1.4
Coalition senators recommend that prompt binding treaty action be taken
in relation to the Free Trade Agreement between the Government of Australia
and the Government of the Republic of Korea.
Senator Chris Back Senator
David Fawcett
Deputy Chair
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