Title
Australia - EU Free Trade Agreement
Preamble
PREAMBLE
The European Union, hereinafter referred to as "the Union" or "the EU", and
Australia,
hereinafter referred to jointly as the "Parties" or individually as a "Party";
RECOGNISING their longstanding and strong partnership based on the common principles and values reflected in the Framework Agreement between the European Union and its Member States, of the one part, and Australia, of the other part, done at Manila on 7 August 2017, and their important economic, trade and investment relationship;
RECOGNISING the importance of global cooperation to address issues of shared interest;
RECOGNISING the importance of transparency in international trade and investment to the benefit of all stakeholders;
SEEKING to establish a stable and predictable environment with clear and mutually advantageous rules governing trade and investment between the Parties and to reduce or eliminate related barriers; DESIRING to raise living standards, promote economic growth and stability, create new employment opportunities and improve the general welfare of their peoples and, to this end, affirming their commitment to promote trade and investment liberalisation;
CONVINCED that this Agreement will create an expanded and secure market for goods and services, thus enhancing the competitiveness of their firms in global markets;
DETERMINED to strengthen their economic, trade and investment relations, taking into account the objective of sustainable development in its economic, social and environmental dimensions, and to promote trade and investment with due regard to relevant international standards, international agreements to which both Parties are party and the aim of high levels of environmental and labour protection;
RECOGNISING the benefits of enhancing consumer welfare through policies that ensure a high level of consumer protection and economic well-being;
DETERMINED to address the particular challenges faced by small and medium-sized enterprises in contributing to the development of trade and investment, and to support their growth by enhancing their ability to participate in and benefit from the opportunities created by this Agreement;
AFFIRMING the Parties' right to regulate within their territories in pursuit of legitimate public policy objectives, such as the protection of health, social services, public education, safety, the environment, including climate change, public morals, social or consumer protection, animal welfare, privacy and data protection, security of energy supply, the promotion and protection of cultural diversity and, in the case of Australia, the promotion and protection of the rights and interests of Australian First Nations peoples;
RECOGNISING the importance of enhancing the ability of Australian First Nations peoples to participate in and benefit from the opportunities created by international trade and investment, including this Agreement;
AFFIRMING the principles expressed in the United Nations Declaration on the Rights of Indigenous Peoples, adopted by the General Assembly of the United Nations on 13 September 2007;
COMMITTED to communicate with all relevant civil society stakeholders, including the private sector, trade unions and other non-governmental organisations and, for Australia, representative organisations for Australian First Nations peoples;
REAFFIRMING their commitment to the Charter of the United Nations signed in San Francisco on 26 June 1945 and having regard to the principles articulated in the Universal Declaration of Human Rights adopted by the General Assembly of the United Nations on 10 December 1948;
BUILDING upon their respective rights and obligations under the Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994, and other multilateral and bilateral instruments of cooperation to which both Parties are party;
Body
Chapter 1. INITIAL PROVISIONS
Article 1.1. Objectives of the Agreement
The objectives of this Agreement are to liberalise and facilitate trade and investment, as well as to promote a closer economic relationship between the Parties.
Article 1.2. Establishment of a Free Trade Area
The Parties hereby establish a free trade area in conformity with Article XXIV of GATT 1994 and Article V of GATS.
Article 1.3. General Definitions
(a) "agricultural product" means a product listed in Annex 1 to the Agreement on Agriculture;
(b) "customs duty" means any duty or charge of any kind imposed on or in connection with the importation of a good but does not include any:
(i) charge equivalent to an internal tax imposed consistently with Article 2.4 (National treatment on internal taxation and regulation);
(ii) anti-dumping, special safeguard, countervailing or safeguard duty applied in conformity with GATT 1994, the Anti-dumping Agreement, the Agreement on Agriculture, the SCM Agreement, and the Safeguards Agreement, as appropriate; and
(iii) fee or other charge commensurate with the cost of the services rendered;
(XX) "covered enterprise" means [to be moved here from point (x) of Article 9.2 (Definitions);]
(c) "CPC" means the Provisional Central Product Classification (Statistical Papers Series M No.77, Department of International Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991);
(X) "customs authority" means:
(i) for the Union, the competent services of the European Commission responsible for customs matters or the customs administrations and any other authorities empowered in the Member States or at the level of the Union to apply and enforce customs legislation;
and
(ii) for Australia, the Department of Home Affairs, or its successor;
(d) "day" means a calendar day;
(e) "enterprise" means a juridical person or a branch or a representative office of a juridical person;
(f) "Framework Agreement" means the Framework Agreement between the European Union and its Member States, of the one part, and Australia, of the other Part, done at Manila on 7 August 2017;
(g) "good of a Party" means a domestic good as this is understood in the GATT 1994, and includes originating goods of that Party;
(h) "Harmonized System" or "HS" means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes and Chapter Notes, as adopted and administered by the World Customs Organization and implemented by the Parties in their respective tariff laws;
(i) "heading" means the first four digits in the tariff classification number under the Harmonized System;
(XX) "investor of a Party" means [to be moved here from point (x) of Article 9.2 (Definitions);]
(j) "juridical person" means any legal entity duly constituted or otherwise organised under applicable law, whether for profit or otherwise, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;
(k) "measure" means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action, requirement or practice, or any other form; (1)
(l) "Member State" means a Member State of the Union;
(m) "natural person of a Party" means:
(i) for the Union, a national of one of the Member States according to its law; (2) and
(ii) for Australia, an Australian citizen under the law of Australia;
(n) "originating" means qualifying as originating under the rules of origin set out in Chapter 3
(Rules of origin and origin procedures);
(p) "Paris Agreement" means the Paris Agreement under the United Nations FrameworkConvention on Climate Change, done at Paris on 12 December 2015;
(q) "person" means a natural person or a juridical person;
(q) "preferential tariff treatment" means the rate of customs duty applicable to an originatinggood pursuant to the tariff elimination schedules in Annex 2-A (Tariff elimination schedules);
(r) "SDR" means special drawing right;
(s) "SPS measure" means any measure referred to in paragraph 1 of Annex A to the SPS Agreement;
(t) "service supplier" means a person that supplies or seeks to supply a service;
(u) "SME" means a small or medium-sized enterprise;
(v) "territory" means, with respect to each Party, the territory to which this Agreement applies in accordance with Article 1.5 (Territorial application);
(w) "TFEU" means the Treaty on the Functioning of the European Union;
(x) "third country" means a country or territory outside the territorial scope of application of this Agreement;
(y) "WCO" means the World Customs Organization;
(z) "WTO" means the World Trade Organization;
(XX) "UNCLOS" means United Nations Convention on Law of the Sea, done at Montego Bay on 10 December 1982; and
(X) "UNDRIP" means United Nations Declaration on the Rights of Indigenous Peoples, done at New York on 13 September 2007.
Article 1.4. WTO Agreements
For the purposes of this Agreement, the following definitions apply:
(a) "Agreement on Agriculture" means the Agreement on Agriculture, contained in Annex 1A to the WTO Agreement;
(b) "Anti-dumping Agreement" means the Agreement on Implementation of Article VI of the GATT 1994, contained in Annex 1A to the WTO Agreement;
(c) "Customs Valuation Agreement" means the Agreement on Implementation of Article VII of the GATT 1994, contained in Annex 1A to the WTO Agreement;
(d) "GATS" means the General Agreement on Trade in Services, contained in Annex 1B to the WTO Agreement;
(e) "GATT 1994" means the General Agreement on Tariffs and Trade 1994, contained in Annex A to the WTO Agreement;
(f) "Safeguards Agreement" means the Agreement on Safeguards, contained in Annex 1A to the WTO Agreement;
(g) "SCM Agreement" means the Agreement on Subsidies and Countervailing Measures, contained in Annex 1A to the WTO Agreement;
(h) "SPS Agreement" means the Agreement on the Application of Sanitary and Phytosanitary Measures, contained in Annex 1A to the WTO Agreement;
(i) "TBT Agreement" means the Agreement on Technical Barriers to Trade, contained in Annex 1A to the WTO Agreement;
(j) "TRIPS Agreement" means the Agreement on Trade-Related Aspects of Intellectual Property Rights, contained in Annex 1C to the WTO Agreement; and
(k) "WTO Agreement" means the Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994.
Article 1.5. Territorial Application
1. This Agreement applies:
(a) with respect to the Union, to the territories in which the Treaty on European Union and the Treaty on the Functioning of the European Union are applied and under the conditions laid down in those Treaties; and
(b) with respect to Australia, to the territory of Australia:
(i) excluding all external territories other than the Territory of Norfolk Island, the Territory of Christmas Island, the Territory of Cocos (Keeling) Islands, the Territory of Ashmore and Cartier Islands, the Territory of Heard Island and McDonald Islands, and the Coral Sea Islands Territory; and
(ii) including Australia’s territorial sea, contiguous zone, exclusive economic zone and continental shelf over which Australia exercises sovereign rights or jurisdiction in accordance with international law, particularly the United Nations Convention on the Law of the Sea, done at Montego Bay on 10 December 1982;
2. As regards those provisions concerning the tariff treatment of goods, including rules of origin and origin procedures, this Agreement also applies, with respect to the Union, to those areas of the Union customs territory, as defined by Article 4 of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code, not covered by point (a) of paragraph 1.
Chapter 2. TRADE IN GOODS
Article 2.1. Objective
The Parties shall progressively liberalise trade in goods in accordance with the provisions of this Agreement.
Article 2.2. Scope
Except as otherwise provided in this Agreement, this Chapter applies to trade in goods of a Party.
Article 2.3. Definitions
For the purposes of this Chapter:
(a) “consular transactions” means the procedure of obtaining from a consul of the importing Party in the territory of the exporting Party, or in the territory of a third party, a consular invoice or a consular visa for a commercial invoice, certificate of origin, manifest, shipper's export declaration or any other customs documentation in connection with the importation of the good;
(b) “Customs Valuation Agreement” means the Agreement on Implementation of Article VII of GATT 1994 contained in Annex 1A to the WTO Agreement;
(c) “customs duty” means any duty or charge of any kind imposed on or in connection with the importation of a good. A ‘customs duty’ does not include any:
(i) charge equivalent to an internal tax imposed consistently with Article X.4 (National Treatment on Internal Taxation and Regulation)
(ii) anti-dumping, special safeguard, countervailing or safeguard duty applied in conformity with the GATT 1994, the Anti-dumping Agreement, the Agreement on Agriculture, the Agreement on Subsidies and Countervailing Measures and the Agreement on Safeguards, as appropriate.
(iii) fee or other charge commensurate with the cost of services rendered.
(d) “good of a Party” means a domestic good as this is understood in the GATT 1994, and includes originating goods.
(e) “Harmonized System” means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes and Chapter Notes, as adopted and administered by the World Customs Organisation and implemented by the Parties in their respective tariff laws;
(f) “Import Licensing Procedure” means an administrative procedure used for the operation of an importing licensing regime requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body or bodies as a prior condition for importation into the territory of the importing Party;
(g) “Export Licensing Procedure” means an administrative procedure used for the operation of an exporting licensing regime requiring the submission of an application or other documentation (other than that generally required for customs clearance purposes) to the relevant administrative body or bodies as a prior condition for exportation from the territory of the exporting Party;
(h) “Repair” means any processing operation undertaken on a good to remedy operating defects or material damage and entailing the re-establishment of the good to its original function or to ensure compliance with technical requirements for its use, without which the good could no longer be used in the normal way for the purposes for which they were intended. Repair of goods includes restoration and maintenance but does not include an operation or process that:
(i) destroys the essential characteristics of a good, or creates a new or commercially different good;
(ii) transforms an unfinished good into a finished good; or
(iii) is used to substantially change the function of a good.
(i) “Remanufactured good” means a good classified in HS Chapters 84, 85, 86, 87 (except 8703 870120, 8702, 8704, 8711, 8716), 88, 89, 90 or 9402 that:
(i) is entirely or partially comprised of parts obtained from used goods;
(ii) has similar performance and working conditions compared to the equivalent good in new condition; and
(iii) is given the same warranty as the equivalent good in new condition.
(j) “Originating good” means a good qualifying under the rules of origin set out in (Protocol on Rules of Origin);
(k) “Staging category” means the timeframe for the elimination of customs duties ranging from 0 to 7 years, after which a good is free of customs duty (unless otherwise specified in the Schedules);
(l) “Performance requirement” means a requirement that:
(i) a given quantity, value or percentage of goods be exported;
(ii) goods of the Party granting an import licence be substituted for imported goods;
(iii) a person benefiting from an import licence purchase other goods in the territory of the Party granting the import licence, or accord a preference to domestically produced goods;
(iv) a person benefiting from an import licence produce goods in the territory of the Party granting the import licence, with a given quantity, value or percentage of domestic content; or
(v) relates in whatever form to the volume or value of imports, to the volume or value of exports or to the amount of foreign exchange inflows.
Article 2.4. National Treatment on Internal Taxation and Regulation
1. Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of the GATT 1994, including its Notes and Supplementary Provisions (1). To this end, Article III of the GATT 1994 and its Notes and Supplementary Provisions is incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.5. Elimination of Customs Duties
1. Except as otherwise provided for in this Agreement, each Party shall reduce or eliminate customs duties on goods originating in the other Party in accordance with its Schedule in Annex [X-x] (Tariff Elimination Schedules).
2. For the purpose of paragraph 1, the base rate of customs duties shall be the one specified for each good in the Schedules in Annex [X-x] (Tariff Elimination Schedules).
3. If a Party reduces an applied most favoured nation customs duty rate, that duty rate shall apply to the originating good of the other Party for as long as it is lower than the customs duty rate for that good determined pursuant to its Schedule in Annex [X-x] (Tariff Elimination Schedules).
4. No earlier than 2 years after the date of entry into force of this Agreement, on the request of a Party, the Parties shall, within the Committee on Trade in Goods, consult to consider accelerating, or broadening the scope of, the reduction or elimination of customs duties set out in the Schedules in Annex [X-x] (Tariff Elimination Schedules) between the Parties. Accordingly, the Trade Committee may take a decision to amend Annex [X-x] (Tariff Elimination Schedules).
Article 2.6. Standstill
1. Except as otherwise provided in this Agreement, neither Party shall increase any customs duty set as base rate in Annex [X-x] (Tariff Elimination Schedule) or introduce a new customs duty on a good originating in the other Party.
2. For greater certainty, a Party may raise a customs duty to the level set out in Annex [X-x] (Tariff Elimination Schedule) for the respective [year] [option, if staging is not annual use: staging period] following a unilateral reduction.
Article 2.7. Export Duties, Taxes or other Charges
1. No Party shall introduce or maintain any duty, tax or other charge of any kind imposed on, or in connection with, the exportation of a good to the other Party, or any internal tax or other charge on a good exported to the other Party that is in excess of the tax or charge that would be imposed on like goods when destined for domestic consumption.
2. Nothing in this Article shall prevent a Party from imposing on the exportation of a good a fee or charge that is permitted under Article X.8 (Fees and Formalities).
Article 2.8. Fees and Formalities
1. Each party shall ensure, in accordance with Article VIII:1 of GATT 1994 that all fees and charges of whatever character (other than customs duties, charges equivalent to an internal tax or any other internal charges applied consistently with Article III:2 of GATT 1994, and anti-dumping and countervailing duties) imposed on or in connection with importation or exportation are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
2. Each Party shall make publically available, including through publication, a current list of fees and charges it imposes in connection with importation and exportation.
3. No Party shall require consular transactions, including related fees and charges, in connection with the importation of any good of the other Party.
Article 2.9. Repaired Goods
1. Neither Party shall apply a customs duty to a good, regardless of its origin, that re-enters the Party's customs territory after that good has been temporarily exported from its customs territory to the customs territory of the other Party for repair. (2)
2. Paragraph 1 does not apply to a good imported in bond, into free trade zones, or in similar status, that is then exported for repair and is not re-imported in bond, into free trade zones, or in similar status.
3. Neither Party shall apply a customs duty to a good, regardless of its origin, imported temporarily from the customs territory of the other Party for repair. (3)
Article 2.10. Remanufactured Goods
1. Neither party shall accord to remanufactured goods of the other Party a treatment that is less favourable than that it accords to equivalent goods in new condition. [footnote: Paragraph 1 shall not apply to consumer guarantees provided for in a Party’s laws and regulations.]
2. Article [X] (Import and Export Restrictions) shall apply to import and export prohibition and restrictions on remanufactured goods. If a Party adopts or maintains import and export prohibitions or restrictions to used goods, it shall not apply those measures to remanufactured goods.