❓ Question regarding the impact of the Australia-United States Free Trade Agreement on WA's procurement market and local industry development. The response claims the FTA provides a waiver from the Buy America Act and protects WA's ability to support local SMEs.
AnsweredQoN 1070Legislative Council
QuestionView source ↗
When the representatives of the Department of Foreign Affairs and Trade were negotiating the Australia-United States Free Trade Agreement, Australian service providers were told to expect big gains from access to the $A200 billion US government procurement market. However, given that Australian business access has effectively been blocked as a result of the Buy American Act - which places a six to 12 per cent tax on the bids of foreign goods and service providers - (1) Will the minister advise what impact his Government’s support of the Australia-United States Free Trade Agreement will have on procurement-linked industry development in Western Australia and on any current or future Buy WA First campaigns? (2) What is the total value of the Western Australian procurement market that will be open to United States’ firms once the FTA has been signed, and approximately how many Western Australian jobs does that represent? (3) Given these outcomes, what motivated the Premier to so willingly give unconditional support to the Australia-United States Free Trade Agreement? Hon KIM CHANCE
AnswerView source ↗
I thank the member for some notice of this question. (1) In the context of government procurement, the non-discrimination provisions in article 15.2 of the Australia-United States Free Trade Agreement provide Australia with a waiver from the Buy America Act. This waiver will enable Western Australian suppliers to compete in the United States Government procurement market on equal terms with suppliers from United States and other designated entities in relation to both goods and services. It should be noted that the Western Australian Government has agreed to include its government procurement market as part of the Australia-United States Free Trade Agreement, subject to certain conditions, and with one exception. Under this exception, Western Australia retains the right to apply preferences or restrictions associated with programs promoting small and medium-size businesses, which are generally defined in the United States as businesses with 500 or fewer employees. This, as well as the contract thresholds, will mean that in practice Western Australia will be able to continue supporting its local industries. (2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
(1) Will the minister advise what impact his Government’s support of the Australia-United States Free Trade Agreement will have on procurement-linked industry development in Western Australia and on any current or future Buy WA First campaigns? (2) What is the total value of the Western Australian procurement market that will be open to United States’ firms once the FTA has been signed, and approximately how many Western Australian jobs does that represent? (3) Given these outcomes, what motivated the Premier to so willingly give unconditional support to the Australia-United States Free Trade Agreement? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) In the context of government procurement, the non-discrimination provisions in article 15.2 of the Australia-United States Free Trade Agreement provide Australia with a waiver from the Buy America Act. This waiver will enable Western Australian suppliers to compete in the United States Government procurement market on equal terms with suppliers from United States and other designated entities in relation to both goods and services. It should be noted that the Western Australian Government has agreed to include its government procurement market as part of the Australia-United States Free Trade Agreement, subject to certain conditions, and with one exception. Under this exception, Western Australia retains the right to apply preferences or restrictions associated with programs promoting small and medium-size businesses, which are generally defined in the United States as businesses with 500 or fewer employees. This, as well as the contract thresholds, will mean that in practice Western Australia will be able to continue supporting its local industries. (2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
(2) What is the total value of the Western Australian procurement market that will be open to United States’ firms once the FTA has been signed, and approximately how many Western Australian jobs does that represent? (3) Given these outcomes, what motivated the Premier to so willingly give unconditional support to the Australia-United States Free Trade Agreement? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) In the context of government procurement, the non-discrimination provisions in article 15.2 of the Australia-United States Free Trade Agreement provide Australia with a waiver from the Buy America Act. This waiver will enable Western Australian suppliers to compete in the United States Government procurement market on equal terms with suppliers from United States and other designated entities in relation to both goods and services. It should be noted that the Western Australian Government has agreed to include its government procurement market as part of the Australia-United States Free Trade Agreement, subject to certain conditions, and with one exception. Under this exception, Western Australia retains the right to apply preferences or restrictions associated with programs promoting small and medium-size businesses, which are generally defined in the United States as businesses with 500 or fewer employees. This, as well as the contract thresholds, will mean that in practice Western Australia will be able to continue supporting its local industries. (2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
(3) Given these outcomes, what motivated the Premier to so willingly give unconditional support to the Australia-United States Free Trade Agreement? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) In the context of government procurement, the non-discrimination provisions in article 15.2 of the Australia-United States Free Trade Agreement provide Australia with a waiver from the Buy America Act. This waiver will enable Western Australian suppliers to compete in the United States Government procurement market on equal terms with suppliers from United States and other designated entities in relation to both goods and services. It should be noted that the Western Australian Government has agreed to include its government procurement market as part of the Australia-United States Free Trade Agreement, subject to certain conditions, and with one exception. Under this exception, Western Australia retains the right to apply preferences or restrictions associated with programs promoting small and medium-size businesses, which are generally defined in the United States as businesses with 500 or fewer employees. This, as well as the contract thresholds, will mean that in practice Western Australia will be able to continue supporting its local industries. (2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) In the context of government procurement, the non-discrimination provisions in article 15.2 of the Australia-United States Free Trade Agreement provide Australia with a waiver from the Buy America Act. This waiver will enable Western Australian suppliers to compete in the United States Government procurement market on equal terms with suppliers from United States and other designated entities in relation to both goods and services. It should be noted that the Western Australian Government has agreed to include its government procurement market as part of the Australia-United States Free Trade Agreement, subject to certain conditions, and with one exception. Under this exception, Western Australia retains the right to apply preferences or restrictions associated with programs promoting small and medium-size businesses, which are generally defined in the United States as businesses with 500 or fewer employees. This, as well as the contract thresholds, will mean that in practice Western Australia will be able to continue supporting its local industries. (2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
I thank the member for some notice of this question. (1) In the context of government procurement, the non-discrimination provisions in article 15.2 of the Australia-United States Free Trade Agreement provide Australia with a waiver from the Buy America Act. This waiver will enable Western Australian suppliers to compete in the United States Government procurement market on equal terms with suppliers from United States and other designated entities in relation to both goods and services. It should be noted that the Western Australian Government has agreed to include its government procurement market as part of the Australia-United States Free Trade Agreement, subject to certain conditions, and with one exception. Under this exception, Western Australia retains the right to apply preferences or restrictions associated with programs promoting small and medium-size businesses, which are generally defined in the United States as businesses with 500 or fewer employees. This, as well as the contract thresholds, will mean that in practice Western Australia will be able to continue supporting its local industries. (2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
(1) In the context of government procurement, the non-discrimination provisions in article 15.2 of the Australia-United States Free Trade Agreement provide Australia with a waiver from the Buy America Act. This waiver will enable Western Australian suppliers to compete in the United States Government procurement market on equal terms with suppliers from United States and other designated entities in relation to both goods and services. It should be noted that the Western Australian Government has agreed to include its government procurement market as part of the Australia-United States Free Trade Agreement, subject to certain conditions, and with one exception. Under this exception, Western Australia retains the right to apply preferences or restrictions associated with programs promoting small and medium-size businesses, which are generally defined in the United States as businesses with 500 or fewer employees. This, as well as the contract thresholds, will mean that in practice Western Australia will be able to continue supporting its local industries. (2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
(2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
(3) Not applicable.
(1) Will the minister advise what impact his Government’s support of the Australia-United States Free Trade Agreement will have on procurement-linked industry development in Western Australia and on any current or future Buy WA First campaigns? (2) What is the total value of the Western Australian procurement market that will be open to United States’ firms once the FTA has been signed, and approximately how many Western Australian jobs does that represent? (3) Given these outcomes, what motivated the Premier to so willingly give unconditional support to the Australia-United States Free Trade Agreement? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) In the context of government procurement, the non-discrimination provisions in article 15.2 of the Australia-United States Free Trade Agreement provide Australia with a waiver from the Buy America Act. This waiver will enable Western Australian suppliers to compete in the United States Government procurement market on equal terms with suppliers from United States and other designated entities in relation to both goods and services. It should be noted that the Western Australian Government has agreed to include its government procurement market as part of the Australia-United States Free Trade Agreement, subject to certain conditions, and with one exception. Under this exception, Western Australia retains the right to apply preferences or restrictions associated with programs promoting small and medium-size businesses, which are generally defined in the United States as businesses with 500 or fewer employees. This, as well as the contract thresholds, will mean that in practice Western Australia will be able to continue supporting its local industries. (2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
(2) What is the total value of the Western Australian procurement market that will be open to United States’ firms once the FTA has been signed, and approximately how many Western Australian jobs does that represent? (3) Given these outcomes, what motivated the Premier to so willingly give unconditional support to the Australia-United States Free Trade Agreement? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) In the context of government procurement, the non-discrimination provisions in article 15.2 of the Australia-United States Free Trade Agreement provide Australia with a waiver from the Buy America Act. This waiver will enable Western Australian suppliers to compete in the United States Government procurement market on equal terms with suppliers from United States and other designated entities in relation to both goods and services. It should be noted that the Western Australian Government has agreed to include its government procurement market as part of the Australia-United States Free Trade Agreement, subject to certain conditions, and with one exception. Under this exception, Western Australia retains the right to apply preferences or restrictions associated with programs promoting small and medium-size businesses, which are generally defined in the United States as businesses with 500 or fewer employees. This, as well as the contract thresholds, will mean that in practice Western Australia will be able to continue supporting its local industries. (2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
(3) Given these outcomes, what motivated the Premier to so willingly give unconditional support to the Australia-United States Free Trade Agreement? Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) In the context of government procurement, the non-discrimination provisions in article 15.2 of the Australia-United States Free Trade Agreement provide Australia with a waiver from the Buy America Act. This waiver will enable Western Australian suppliers to compete in the United States Government procurement market on equal terms with suppliers from United States and other designated entities in relation to both goods and services. It should be noted that the Western Australian Government has agreed to include its government procurement market as part of the Australia-United States Free Trade Agreement, subject to certain conditions, and with one exception. Under this exception, Western Australia retains the right to apply preferences or restrictions associated with programs promoting small and medium-size businesses, which are generally defined in the United States as businesses with 500 or fewer employees. This, as well as the contract thresholds, will mean that in practice Western Australia will be able to continue supporting its local industries. (2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
Hon KIM CHANCE replied: I thank the member for some notice of this question. (1) In the context of government procurement, the non-discrimination provisions in article 15.2 of the Australia-United States Free Trade Agreement provide Australia with a waiver from the Buy America Act. This waiver will enable Western Australian suppliers to compete in the United States Government procurement market on equal terms with suppliers from United States and other designated entities in relation to both goods and services. It should be noted that the Western Australian Government has agreed to include its government procurement market as part of the Australia-United States Free Trade Agreement, subject to certain conditions, and with one exception. Under this exception, Western Australia retains the right to apply preferences or restrictions associated with programs promoting small and medium-size businesses, which are generally defined in the United States as businesses with 500 or fewer employees. This, as well as the contract thresholds, will mean that in practice Western Australia will be able to continue supporting its local industries. (2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
I thank the member for some notice of this question. (1) In the context of government procurement, the non-discrimination provisions in article 15.2 of the Australia-United States Free Trade Agreement provide Australia with a waiver from the Buy America Act. This waiver will enable Western Australian suppliers to compete in the United States Government procurement market on equal terms with suppliers from United States and other designated entities in relation to both goods and services. It should be noted that the Western Australian Government has agreed to include its government procurement market as part of the Australia-United States Free Trade Agreement, subject to certain conditions, and with one exception. Under this exception, Western Australia retains the right to apply preferences or restrictions associated with programs promoting small and medium-size businesses, which are generally defined in the United States as businesses with 500 or fewer employees. This, as well as the contract thresholds, will mean that in practice Western Australia will be able to continue supporting its local industries. (2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
(1) In the context of government procurement, the non-discrimination provisions in article 15.2 of the Australia-United States Free Trade Agreement provide Australia with a waiver from the Buy America Act. This waiver will enable Western Australian suppliers to compete in the United States Government procurement market on equal terms with suppliers from United States and other designated entities in relation to both goods and services. It should be noted that the Western Australian Government has agreed to include its government procurement market as part of the Australia-United States Free Trade Agreement, subject to certain conditions, and with one exception. Under this exception, Western Australia retains the right to apply preferences or restrictions associated with programs promoting small and medium-size businesses, which are generally defined in the United States as businesses with 500 or fewer employees. This, as well as the contract thresholds, will mean that in practice Western Australia will be able to continue supporting its local industries. (2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
(2) There are currently no impediments to foreign suppliers, including United States suppliers, entering the Western Australian Government procurement market, which for goods and services is worth approximately $6 billion a year. This access is clearly evidenced within the government information technology sector, for example, in which companies such as CSC, IBM, Fujitsu Australia, Computer Associates, Sun Microsystems, Oracle, SAP Australia and New Zealand and Cisco Systems, and others are already key players in this State. The Australia-United States Free Trade Agreement has not provided an increased level of access to this market for US suppliers. (3) Not applicable.
(3) Not applicable.
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