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Tuesday, 18 March 1997
Page: 2294


Mr ANDREW THOMSON (Parliamentary Secretary to the Minister for Foreign Affairs)(4.35 p.m.) —I move:

Customs Tariff Proposal No. 1 (1997)

Customs Tariff Proposal No. 1 (1997), which I have just tabled, contains an alteration to schedule 1 to the Customs Tariff Act 1995. This change will operate on and from 10 March 1997. It accords developing country preference under the Australian system of tariff preferences—ASTP—to the newly created Territories administered by the Palestinian Authority. I might add that the authority welcomes Australia's action.

Honourable members will be aware of the Middle East peace process started at Madrid in October 1991 and the Oslo declaration of principles whereby Israel is transferring to the Palestinian Council powers and responsibility for certain areas formerly administered by the Israeli military government. The Australian government fully supports the peace process and the implementation of these agreements.

Many Palestinians living on the West Bank and in the Gaza Strip are suffering economic hardship and experiencing a serious fall in their living standards. High unemployment is a major problem for them. The extension of the ASTP concessions to the Palestinian Territories will assist the economy to transform itself from one dependent on exporting labour to one exporting products made in newly established industrial enterprises. It will also enhance bilateral trade with Australia. The Palestinian authorities have already indicated their interest in purchasing wheat and live sheep from Australia.

The cost of this change will be minimal. The inclusion of the territories administered by the Palestinian authority has no implications for the government's position on the outcome of the final status negotiations between the parties involved in the Middle East dispute.

A summary of the alteration contained in this proposal has been prepared and is being circulated for the information of honourable members. I commend the proposal to the House.

Debate (on motion by Mr Brereton) adjourned.