It is important that the transition to Quarantine Australia be appropriately managed to minimise disruption and dislocation of existing quarantine arrangements and linkages. Organisational change will require staff to be managed and supported to adapt to the new culture of Quarantine Australia. Consultation with staff, both directly and through the relevant union, should therefore be undertaken as early as possible. To assist management of the process, a task force should be established to identify and be responsible for implementing the required changes, including preparation of the enabling legislation.
Recommendation 22: The Review Committee recommends that the Department of Primary Industries and Energy immediately establish a task force to manage the movement of the relevant responsibilities under the Australian Quarantine and Inspection Service to a new statutory authority, Quarantine Australia.
PART IV: PRE-BORDER QUARANTINE
5. INTERNATIONAL OBLIGATIONS AND LEADERSHIP
5.1 INTRODUCTION
Australia, as a middle-ranked economic and political power, highly dependent on and integrated with the global community, has been very active in a wide range of international fora. Australia's involvement in such fora has conveyed substantial benefits, both nationally and internationally. For example, in recent years Australian initiatives have contributed to a negotiated peace settlement in Cambodia and a ban on whaling. As one individual's submission to the Review stated, international agreements and obligations 'create a sense of order in dealing with other countries'. The Review Committee acknowledges that Australian quarantine policy must continue to take account of international obligations related to trade, public health and the natural environment.
5.2 WORLD TRADE
5.2.1 International Agreements
In its role as leader of the Cairns Group of Agricultural Trading Nations, Australia was a strong advocate for agricultural reform in the successful Uruguay Round of multilateral trade negotiations. Extending the disciplines of the General Agreement on Tariffs and Trade to agricultural commodities was a most significant achievement. However, with the reduction in tariffs resulting from the Uruguay Round, there was concern that some countries might turn to quarantine and other non-tariff restrictions as an alternative means of protecting their agricultural industries. The Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) and the Agreement on Technical Barriers to Trade (TBT Agreement) were designed to prevent this from happening. The purpose of these agreements is to define how technical barriers to trade may be used legitimately. The agreements are discussed in more detail in Appendix C on International Obligations Relevant to Quarantine.
5.2.1.1 SPS and TBT Agreements
The SPS Agreement encourages governments to 'harmonise' or base their national measures on the international standards, guidelines and recommendations developed in other international organisations to which most World Trade Organization (WTO) member governments belong. These organisations include:
· for human health and food safety, the Codex Alimentarius Commission (Codex) of the Food and Agriculture Organization (FAO) and the World Health Organization (WHO);
· for animal health, the Office International des Epizooties (OIE); and
· for plant health, the Committee of Experts on Phytosanitary Measures established under the auspices of the International Plant Protection Convention (IPPC).
Encouragement to use the international standards set by these organisations does not mean that these international standards are a ceiling on national standards. However, governments that do not base their national requirements on relevant international standards must justify their higher standards on scientific grounds.
It is important that Australia ensures that gains to the agricultural sector embodied in the WTO and the SPS and TBT Agreements are not eroded. Given that Australia exports five times as much food as it imports, clearly it is in Australia's interest to ensure that quarantine policies and processes, internationally and domestically, are not used as a device to protect industries from import competition. International standards are increasingly being taken into account by countries in establishing conditions for import access for animals, plants and their products. In this regard, it is important that Australia ensures that its national agricultural policies and practices are recognised by international standards-setting organisations (such as OIE, IPPC and Codex), given the reliance that WTO places on these organisations as international reference bodies.
5.2.1.2 Animal quarantine
In 1993, OIE added chapters on import risk analysis and related topics — namely evaluation of veterinary services, and zoning and regionalisation — to its Animal Health Code. In 1994, OIE adopted guidelines on surveillance and monitoring of animal health. Australia played a significant role in the development of the animal health standards that underpin these arrangements for international trade. This has been done by active participation in OIE and FAO and through regular consultations with like-minded countries — notably Canada, New Zealand and the United States during quadrilateral quarantine consultations.
5.2.1.3 Plant quarantine
The establishment of WTO has given new impetus to the development of plant quarantine standards under the IPPC. Regional plant protection organisations established under the convention have, in consultation with FAO, set in train two programs. The first was the establishment of a Convention secretariat; the second the initiation of a technical work program. Australia has been an active participant in the technical work program and has been involved in drafting technical standards for the principles of plant quarantine, pest risk analysis, and individual elements of the guidelines for pest risk analysis. The resultant standards have subsequently been accepted and put into practice by many countries, including Australia.
5.2.1.4 Market access
As more countries put into effect agreed international standards, Australia should be able to negotiate improved market access arrangements. For example, recognition of the bluetongue-free status of southern Australia by the European Union, in accordance with OIE guidelines on disease regionalisation, would enable Australia to overcome the present ban on the import of Australian ruminants and germplasm into the European Union.
International standards, including processes for risk analysis, are constantly being reviewed and refined. For example, IPPC's pest risk analysis standard for plants requires further development to assist countries to implement it. Similarly, OIE is currently reviewing its system for categorising animal diseases. Australian quarantine officials presented a paper on this topic at the January 1996 meeting of OIE's Code Commission (the body responsible for the development of animal health standards that underpin arrangements for international trade in animals and animal products).
5.2.1.5 Definitional problems
A number of key definitions of terms used in the SPS Agreement remain the subject of considerable debate. Examples include the interpretation of:
· a 'consistent approach to risk management';
· 'least trade restrictive' measures;
· 'sufficient scientific evidence' on which to impose restrictions;
· a 'reasonable time' for assessments;
· 'official' or 'regional control' areas;
· 'appropriate risk assessment'; and
· the 'relative cost-effectiveness of alternative approaches to limiting risks'.
Resolving these issues, among others, will be central to the successful implementation of a set of international rules that recognise the specific human, animal and plant health differences of sovereign countries and the relative advantages or disadvantages that accrue from the rules.
It is therefore important that Australia continues to play an active part in the elaboration of key international trade standards and definitions which are consistent with Australia's obligations as a member of WTO and with Australia's domestic human, animal and plant health policies. Australia was a world leader in advocating adoption of the import risk analysis approach for countries to determine scientifically based quarantine conditions governing the import of foreign products. Largely as a result of its advocacy, this approach has been adopted for OIE, IPPC and WTO purposes. Indeed, given the leading role played by Australia — and in particular Australia's quarantine officials in championing the import risk analysis approach — it is reasonable to expect Quarantine Australia to be at the forefront in defining and conducting specific import risk analyses, internationally and domestically.
5.2.2 Regional Agreements
In the economic and trade arenas, Australia also has opportunities and obligations at regional and bilateral levels. The Asia–Pacific Economic Co-operation Forum has established a Sub-Committee on Standards and Conformance, because the differing standards within the region discourage trade and slow down the move towards closer economic integration. Standards represent the biggest non-tariff barrier facing Australian exporters in the region. Under the 1995 Osaka Action Agenda, the year 2000 has been set as a target date for the development of medium-term benchmarks for harmonisation of standards.
Australia is also active in the Asia–Pacific Plant Protection Commission, a regional body under the auspices of the IPPC. Australia, together with New Zealand, is a major contributor in this forum to the development of harmonised plant quarantine standards. This forum is also a vehicle through which Australia can promote its position internationally.
5.2.3 Trading Partner Agreements
5.2.3.1 New Zealand
Quarantine was not formally covered in the 1983 Australia–New Zealand Closer Economic Relations Trade Agreement (CER). Australia and New Zealand concluded a Protocol on the Harmonisation of Quarantine Administrative Procedures following a review in 1988. The Protocol was primarily aimed at removing impediments to the development of trans-Tasman trade. Work has focused, inter alia, on developing common approaches in the areas of inspection standards and procedures for handling specific quarantine matters. CER has also encouraged the acceptance of international standards and procedures where these are appropriate. The Review Committee is aware from written submissions that further work needs to be undertaken by respective authorities in this area if the full opportunities for trans-Tasman trade are to be realised.
5.2.3.2 South-East Asia
Harmonisation of the exchange of quarantine information is one activity under CER–ASEAN Free Trade Area (AFTA) Cooperation. This formal dialogue could be used to provide a useful conduit for keeping a number of South-East Asian governments and regional businesses fully informed of Australia's approach to quarantine issues. For example, this could be done through information exchange and inclusion of quarantine information in the CER–AFTA customs compendium. Apart from 'transparency aspects', active dialogue towards the stated objective may also provide opportunities to lessen the external emphasis on perceived negative aspects of Australia's quarantine requirements. It would help shift emphasis towards identifying better ways to facilitate and streamline trade procedures in the quarantine area by, for example, using electronic systems to cover quarantine requirements.
5.2.3.3 Other
Australia has several formal bilateral and trilateral quarantine cooperation and dialogue agreements with a number of its trading partners. These arrangements provide valuable points of focus for progressing specific quarantine issues, including technical market access issues, advancing cooperative work programs of mutual interest (particularly with our northern neighbours), and addressing developments in national, regional and multilateral quarantine policies and programs.
Australia has much to gain by being at the forefront in these multilateral, regional and bilateral fora in negotiations and discussions on quarantine issues of importance to Australia. It is in Australia's long-term interests to exercise influence on these international guidelines.
Recommendation 23: The Review Committee recommends that Australia continue to take a lead role in the development of international definitions, standards, rules and procedures related to quarantine, including risk analysis, area freedom and market access arrangements.
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