Customs Amendment (Australia-United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Bill 2025, Customs Tariff Amendment (Australia-United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Bill 2025
Mr McCORMACK (Riverina) (17:31): I've just come from a half-hour meeting with His Excellency Dr Fahad Obaid Mohamed Altaffag, who is the current ambassador of the United Arab Emirates to Australia. He also serves as the UAE's ambassador to Vanuatu and is doing some important work in the Solomon Islands as well. He is a distinguished diplomat.
He has a wealth of experience. He has previous roles as a diplomat, as an ambassador for the UAE to Nigeria and Director of the African Affairs Directorate, Ministry of Foreign Affairs and International Cooperation. We couldn't have a better person for the job here in Canberra.
We talked about, obviously, continuing and strengthening important economic ties but also many other aspects of life that we share in common with the UAE. I was in the UAE on a bipartisan delegation in September 2023. It was a fruitful visit—very good to look at the infrastructure that they have.
I mentioned DP ports a minute ago with the ambassador. What they are doing as far as shipping transport and shipping trade are concerned is quite remarkable. We know how much Australia relies on getting those 20-foot containers into our nation.
But more important than that are the military ties that we've been able to enjoy. I say 'enjoy' because it is very much at UAE's grace that we're allowed to have Al Minhad Air Base, Camp Baird. Of course, that's named in honour of Corporal Cameron Baird, a Victoria Cross recipient.
I speak with his father, Doug, regularly. Corporal Cameron Baird went through Kapooka in the 1st Recruit Training Battalion at Wagga Wagga. He was posthumously awarded the VC, Australia's highest military honour.
Al Minhad Airbase is a military installation in the UAE located about 24 kilometres south of Dubai. It's operated by the UAE Air Force. It's currently the headquarters of the Australian Defence Force's Joint Task Force 633, which supports Australia's operations in the Middle East.
We couldn't have done what we've been able to do in various operations in that very important geopolitical and strategic part of the world but for Camp Baird. As of March 2024, the airbase is also host to the permanent British support operations facility Donnelly Lines. We have many troops there, and on my last visit there I was amazed by how many of those ADF personnel had Riverina connections.
Of course, we've got all three arms of defence in Wagga Wagga. It's the 'home of the soldier'. It's got the Royal Australian Air Force base at Forest Hill and a Navy base—an important Navy base, also based with the RAAF, even though we're a long way from the nearest drop of seawater.
We're speaking here about the Customs Amendment (Australia-United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Bill 2025, as well as the Customs Tariff Amendment (Australia-United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Bill 2025. Interestingly, Member for Cowper, the ambassador spoke in glowing terms about our shadow trade minister, the member for Page, and the work that he is doing to forge better relations and improve trade with the UAE.
This is a bipartisan thing. His Excellency was very aware of the work that Minister Farrell and others from the government have done to secure more trade. It doesn't matter who you're with; trade is crucial.
Trade is essential. You know that from your own Western Australian electorate, Deputy Speaker Lawrence, member for Hasluck. In this situation we have now in the world, trade is difficult; it is.
Trade could well lead to global tension, even heightened global tension, in the near immediate future. We need to have free trade arrangements and good trade arrangements with nations that have the same values and principles that we have here in Australia. The UAE, I'm pleased to say, is one of those.
There are two bills put forward for consideration in this one submission before the House. They both relate to the CEPA arrangements with the UAE. The purpose of the customs amendment implementation bill is to amend the Customs Act, which goes back to Federation, 'to introduce new rules of origin to determine if goods imported from the United Arab Emirates into Australia are eligible for preferential tariff treatment under the comprehensive economic partnership agreement between Australia and the United Arab Emirates' and other matters of course.
The amendments to the first bill also give effect 'to the requirements for verifying claims for preferential tariff treatment in accordance with the agreement of goods exported from Australia to the UAE'. The purpose of the second bill is to amend the Customs Tariff Act 1995 'to give effect to the preferential tariff treatment applicable to goods covered by the comprehensive economic partnership agreement between the two nations'.
Under the former coalition government, which was very strong and very solid on the trade front, we signed and arranged many free trade agreements. It solidified diplomatic relations with a number of countries. It helped our farmers.
I heard the member for Kingsford Smith talking about the importance of doing just that. It's not only about farmers; it's about businesses large and small. We want, as a parliament, to support those businesses right across the nation, and, of course, they include farmers in regional Australia.
Under the former government, Australia and the UAE announced an intention to pursue the agreement in a joint ministerial statement which was issued back on 17 March 2022, just prior to the May 2022 election. Negotiations officially began on 13 December 2023, and they concluded on 17 September 2024. In addition to the agreement and the side letters, a standalone agreement between the UAE and Australia on the promotion and protection of investments, along with five memoranda of understanding relating to investment, was concluded as part of the negotiations.
I remember when I was in the UAE in September with the ambassador previous to the current one. We were talking about the importance of trade and what we could do. And I have to say the royal family in the UAE are very conscious and aware of the important role of Australia.
They realise that we are an island nation a long way from Europe, a long way from the Americas—we could almost argue we are a long way from anywhere—but they realise that obviously the Asia-Pacific relationship with the UAE is going to be critical for their future. DP World and other shipping companies have a big role to play. We know how important that is, and we know how important the UAE is going to be with that.
The agreement which has been arranged and organised has many benefits. It's Australia's first free trade agreement with a nation in the Middle East. That's critical, and that's important.
Australian exporters will benefit from the elimination of tariffs on more than 99 per cent of Australian goods exported to the UAE by value once the agreement is fully implemented, and this is estimated to increase Australian exports by around $678 million per year. The total two-way trade between Australia and the UAE was worth more than $9.94 billion in 2023.
That's a lot of money. It probably pales into insignificance in comparison to some of the arrangements we've got with other countries, including our largest trading partner, China. But it's on the improve.
It's on the up, and this is good. The UAE, as I said, is Australia's largest trade and investment partner in the Middle East. As the ambassador just very eloquently described, when we talk trade, we're also talking AI.
We're talking pharmaceuticals. We're talking all manner of things, not just goods but also services. Education is of critical importance in the UAE, and we've got a lot to be gained from that relationship with the UAE.
As I mentioned before, a comprehensive economic partnership agreement, a CEPA, was signed in November 2024 to further strengthen these economic ties. These are important figures. In 2023 Australia's exports to the UAE were valued at $5.21 billion, while imports were $4.73 billion.
So we have a trade surplus, and that is good. But the CEPA arrangement signed on 6 November 2024 aims to eliminate the tariffs on almost all Australian goods entering the UAE. Notable Australian exports to the UAE include alumina, meat, oilseeds and higher education.
The Department of Foreign Affairs and Trade officials do an amazing job. They really do. Anybody who's been on one of those overseas delegations can see the best of the best.
When they are overseas representing Australia, they do such an amazing and remarkable job. The people-to-people links are also important, because strong air links facilitate movement between the two countries, with an estimated 20,000 Australians living and working in the UAE. That is a lot of people.
The comprehensive economic partnership agreement is expected to provide Australian exporters with a competitive advantage and facilitate investment. We could do a lot more investment in the UAE. There are opportunities there.
Those businesses and organisations really ought to get on one of those Emirates planes and go and see for themselves—because there are incredible opportunities there—and support Australia's energy needs et cetera. There's just so much work we can do, and I would recommend to anybody to have a look at their transport links whilst over there. Their roads have to be seen to be believed.
We have a lot in common, and we could learn a thing or three from the UAE. We've got so many resources. We could learn a lot from the way they, in the UAE, take advantage of their resources and their opportunities and the way they do their infrastructure, because it is world leading.
It is cutting edge. I commend this bill. I commend anything that we can do to strengthen ties, increase investment and increase trading opportunities with that marvellous nation, the UAE.
Question agreed to. Bill read a second time. Ordered that this bill be reported to the House without amendment.