AustraliaUS Free Trade Agreement Workshop Implications for Standards and Conformance Overview of the

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Australia/US Free Trade Agreement
WorkshopImplications for Standards and
ConformanceOverview of the FTA and the role of
the Australian Government

• Ken Miley
• General Manager
• Trade and International Branch

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Presentation Overview

• Quick look at the Agreement in general
• Overview of the Articles covered in Chapter 8 of
  the Agreement Technical Barrier to Trade
• Highlight ITRs role as the Chapter Coordinator
• Outline the timetable for other FTA negotiations
  and seek input in relation to standards and
  conformance matters

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General Overview of the Agreement

• Provides improved access to US market - that
  represents a third of the worlds GDP.
• Enhances Australias attractiveness as a
  destination for US investment.
• Secures Australian interests in the areas of
  health (e.g. PBS), foreign investment screening,
  the audio-visual sector and our quarantine and
  food safety regimes.

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Chapter 8 Technical Barriers to Trade

• Overview
• Builds on existing rights and obligations under
  the WTO Agreement on Technical Barriers to Trade.
• Covers requirements for food and manufactured
  goods, such as labelling, packaging, testing and
  certification that products conform to
  regulations.
• Creates a mechanism to address issues raised by
  either party related to standards, technical
  regulations and conformity assessment procedures.

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Chapter 8 Technical Barriers to Trade

• Scope and Coverage (Article 8.1)
• Applies to all standards, technical regulations,
  and conformity assessment procedures of the
  central government that may, directly or
  indirectly, affect trade in any product between
  the Parties, except
• (a) technical specifications prepared by
  government bodies for the production or
  consumption requirements of such bodies and
• (b) sanitary and phytosanitary measures as
  defined in Annex A of the SPS Agreement.

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Chapter 8 Technical Barriers to Trade

• Affirmation of the TBT Agreement (Article 8.2)
• Both Australia and the US affirm their existing
  rights and obligations to each other under the
  WTO Technical Barriers to Trade (TBT) agreement
  where issues related to standards, technical
  regulations and conformity assessment procedures
  are addressed.

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Chapter 8 Technical Barriers to Trade

• Regional Government (Article 8.3)
• Both parties agree to provide information to
  state level governments and relevant bodies and
  to encourage their adherence to the commitments
  in the Chapter.

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Chapter 8 Technical Barriers to Trade

• International Standards (Article 8.4)
• Each Party shall use relevant international
  standards, as the basis for its technical
  regulations.
• The Parties shall consult and exchange views on
  matters under discussion in relevant
  international or regional bodies that develop
  standards, guidelines, recommendations, or
  policies relevant to this Chapter.

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Chapter 8 Technical Barriers to Trade

• Technical Regulations (Article 8.5)
• Each Party shall give positive consideration to
  accepting as equivalent technical regulations of
  the other Party, even if these regulations differ
  from its own, provided it is satisfied that these
  regulations adequately fulfil the objectives of
  its regulations.
• Ad hoc working groups can be established to
  examine issues in detail.

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Chapter 8 Technical Barriers to Trade

• Conformity Assessment Procedures (Article 8.6)
• Both Parties have agreed to facilitate the
  acceptance of each other's conformity assessment
  procedures.
• Where a Party rejects the result of a conformity
  assessment procedure they must explain the reason
  for the refusal in detail.
• Ad hoc working groups can be established to
  examine issues in detail.

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Chapter 8 Technical Barriers to Trade

• Transparency (Article 8.7)
• Under this Article each Party allows persons of
  the other Party to participate in the development
  of standards, technical regulations and
  conformity assessment procedures.
• Further, both Parties agree to exchange and
  publish relevant information to ensure that their
  processes are transparent.

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Chapter 8 Technical Barriers to Trade

• Trade Facilitation (Article 8.8)
• The Parties shall work cooperatively in the
  fields of standards, technical regulations, and
  conformity assessment procedures with a view to
  facilitating trade between the Parties.
• The Parties shall seek to identify trade
  facilitating bilateral initiatives regarding
  standards, technical regulations, and conformity
  assessment procedures that are appropriate for
  particular issues or sectors.

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Chapter 8 Technical Barriers to Trade

• Chapter Coordinators (Article 8.9)
• In order to facilitate implementation of this
  Chapter and cooperation between the Parties, each
  Party shall designate a Chapter Coordinator who
  shall be responsible for coordinating with
  interested persons in the Party's territory and
  communicating with the other Partys Coordinator
  in all matters pertaining to this Chapter.
• ITR is currently designated as Australias
  Chapter Coordinator.

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Chapter 8 Technical Barriers to Trade

• The Chapter Coordinators functions include
• monitoring the implementation and administration
  of the Chapter
• promptly addressing any issue that a Party raises
  related to the development, adoption,
  application, or enforcement of standards,
  technical regulations, or conformity assessment
  procedures
• enhancing cooperation in the development and
  improvement of standards, technical regulations,
  and conformity assessment procedures

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Chapter 8 Technical Barriers to Trade

• exchanging information in response to all
  reasonable requests for such information from a
  Party
• facilitating the consideration of any
  sector-specific proposal a Party makes for
  further cooperation between conformity assessment
  bodies, both governmental and nongovernmental, in
  the territories of the Parties
• facilitating the consideration of a request that
  a Party recognise the results of conformity
  assessment procedures, including a request for
  the negotiation of an agreement, in a sector
  nominated by that other Party

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Chapter 8 Technical Barriers to Trade

• facilitating cooperation in the area of specific
  technical regulations by referring enquiries from
  a Party to the appropriate regulatory
  authorities
• on request of a Party, consulting on any matter
  arising under the Chapter and
• reviewing the Chapter in light of any
  developments under the TBT Agreement and
  developing recommendations for amendments to this
  Chapter in light of those developments.

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Chapter 8 Technical Barriers to Trade

• Where a matter covered under this Chapter cannot
  be clarified or resolved through the Chapter
  Coordinators, the Parties may establish an ad hoc
  technical working group with a view to
  identifying a workable and practical solution
  that would facilitate trade.
• A working group shall comprise representatives of
  the Parties and may include regional government
  representatives, where appropriate, with
  responsibility for the standards, technical
  regulations, or conformity assessment procedures
  in question.

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Chapter 8 Technical Barriers to Trade

• Information Exchange (Article 8.10)
• Any information or explanation that is provided
  on request of a Party pursuant to this Chapter
  shall be provided in print or electronically
  within a reasonable period of time.
• Definitions (Article 8.11)
• technical regulation, standard, and conformity
  assessment procedures have the meanings assigned
  to those terms in Annex 1 of the TBT Agreement.

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ITRs Chapter Coordinator Role

• Invite interested parties to utilise the
  mechanism to explore trade facilitation related
  to standards and conformance issues.
• The mechanism is yet to be tested by either party.

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Other FTA negotiations

• The Australian Government is currently
  negotiating FTAs with
• China
• Malaysia
• ASEAN
• UAE
• Your input in relation to specific standards and
  conformance issues with these countries would be
  welcomed.