- Minor treaty actions
- Minor treaty actions are normally technical amendments to existing treaties that do not significantly affect the national interest. They are presented to the Committee with an explanatory statement and are published on the Committee’s website unless a request for confidentiality is received and agreed to by the Committee.
- The Committee can choose to formally inquire into these treaty actions or accept them without a formal inquiry. Once considered, they are incorporated into a report of the Committee at the next opportunity.
- The Committee has been referred the following three minor treaty actions.
Implementing Changes to the Product-Specific Rules Annex of the Regional Comprehensive Economics Partnership Agreement
Referral of the proposed minor treaty action
3.4On 25 January 2024, the Assistant Minister for Foreign Affairs, the Hon Tim Watts MP, referred the Implementing Changes to the Product-Specific Rules Annex of the Regional Comprehensive Economics Partnership Agreement (RCEP Amendment).
Background
3.5The Regional Comprehensive Economic Agreement (2020) (RCEP) came into force on 1 January 2022. The RCEP is a plurilateral free trade agreement (FTA) which has been entered into by fifteen countries including Australia. The RCEP is the largest FTA by members’ Gross Domestic Product (GDP) in the world. The aim of the RCEP is to establish a ‘mutually beneficial economic partnership’ to allow for the expansion of regional trade and investment.
3.6From Australia’s perspective, RCEP facilitates a range of benefits including but not limited to; access for Australian businesses to improved rules regarding trade and investment in the Indo-Pacific region and a harmonised system which reduces the administrative burden for member states.
3.7Of note, in August 2021 JSCOT tabled Report 196 which was the result of an inquiry into RCEP and recommended that binding treaty action be taken. However, the Committee also recommended that the Australian Government continue to push for provisions relating to human rights, labour and environmental concerns, to be added in the Agreement.
Proposed minor treaty action
3.8The proposed minor treaty action is an amendment to Annex 3A of RCEP, which relates to Product-Specific Rules. In particular, Annex 3A reflects the Harmonised System which is an international nomenclature that dictates the classification of products traded between countries. This system covers thousands of commodity groups, arranges the products in a logically coherent structure and is established by clear rules that ensure uniformity across borders. Over 98 per cent of products transported through international trade are classified under a Harmonised System.
3.9The proposed amendment to RCEP Annex 3A originates from the World Custom’s Organisation (WCO) Harmonised Commodity Description and Coding System. Every five years the WCO reviews and updates the Harmonised System to ensure relevance and that it meets the needs of contemporary international trade.
3.10The most recent update was on 30 June 2022, when in accordance with Article 3.34, the RCEP Joint Committee adopted a recommendation that would alter Annex 3A to reflect the transitions between new Harmonised System updates, starting from Harmonised System HS2012 to HS2017 and then followed by HS2017 to HS2022 nomenclature. Meaning that Annex 3A will be aligned with the latest Harmonized System nomenclature (HS2022), to ensure it reflects the needs of the international trade system.
3.11Of note, RCEP contains a provision in setting out the process whereby Parties agree to amendments to Annex 3A that arise from periodic amendments to the WCO’s Harmonised Commodity Description and Coding System.
Justifications
3.12The Amendment is a technical exercise to align the Product-Specific Rules with the most updated international nomenclature of the WCO Harmonized system that dictates the classification of traded products. It would not alter Australia’s obligations or existing rights under RCEP.
3.13The Amendment aligns with Australia’s interests in ensuring it delivers opportunities for businesses globally. These changes are important as they provide certainty and inform businesses as to which Product-Specific Rules apply to their goods.
3.14By following and implementing the HS2022, Australia would reduce the administrative burden on customs officers and traders, who otherwise would have to translate between different systems depending on what was being imported or export.
Legislative Changes
3.15Domestically, Australia would not have to make any legislative changes. Under the Customs Act 1901, the term ‘Harmonised System’ always reflects the most current version.
Instrument for the Amendment of the Constitution of the International Labour Organisation, 1986
Referral of the proposed minor treaty actions
3.16On 30 January 2024, the Minister for Foreign Affairs, Senator the Hon Penny Wong, referred the Instrument for theAmendment of the Constitution of the International Labour Organisation, 1986 (ILO Amendment).
Background
3.17The International Labour Organisation (ILO) is an agency within the United Nations (UN) which is specialised in progressing social and economic justice through the implementation of international labour standards. The executive body of the ILO is the Governing Body, and it makes decisions regarding the agenda of the International Labour Conference (ILC), adopts work programmes, the budget of the ILO, decisions regarding policy and elects the Director-General of the ILO.
3.18On 24 June 1986, the ILO Amendment was adopted which concerns the membership of the governing body with the aim of making it more representative. At the 72nd Session of the ILC in 1986, Australia voted in favour of this amendment. However, the amendment has not yet come into force. The Amendment requires the ratification or acceptance by two-thirds of member states within the ILO. While this threshold was finally met in 2022, the Amendment requires another threshold to be met for it to come into force.
3.19The secondary threshold requires at least five of the ten members of the Chief Industrial Importance (CIIs) to also undergo ratification. At this point in time only two of the members of the CIIs have ratified the amendment, namely India and Italy. As a result, out of the remaining members: Brazil, China, France, Germany, Japan, Russia, the United Kingdom, and the United States of America, three will need to undergo ratification to meet the secondary threshold.
Proposed minor treaty action
3.20As noted, the ILO Amendment makes a series of changes to the membership of the ILO Governing Body to make it more representative. The Amendment proposes to:
- expand the number of voting seats within the Governing Body from 56 to 112;
- increase the required number of Governing Body representatives needed to request a special meeting;
- remove permanent seats on the Governing Body for the ten members who are members of CIIs;
- ensure that the outcome of the selection of the Director-General of the ILO must be submitted to the ILC;
- alter the voting requirements at the ILC;
- make changes to the voting and ratification requirements to determine future amendments to the ILO Constitution.
Justifications
3.21This amendment requires no financial implications for Australia. There would likely be a minor regulatory impact, but no legislative or regulatory changes would be required. There would also be no practical impacts to Australia.
3.22This amendment aligns with Australia’s interests and objectives of supporting reform to enable an effective, representative multilateral system that is able to address complex challenges.
3.23Momentum appears to be building for this amendment, seen by the first threshold being met in 2022. This amendment’s entry into force is a high priority of the ILO Director-General and updating the governance of the ILO is a high priority for many of Australia’s Indo-Pacific partners in the region. Therefore, ratification would signal our commitment to the Indo-Pacific region.
Legislative changes
3.24Due to the nature of the proposed treaty action, there would be no legislative changes needed to implement the action.
Amendments of 2022 to the Code of the Maritime Labour Convention 2006
Referral of the proposed minor treaty actions
3.25On 29 February 2024, the Assistant Minister for Foreign Affairs, the Hon Tim Watts MP, referred the Amendments of 2022 to the Code of the Maritime Labour Convention 2006 (MLCAmendments).
Background
3.26The Code of the Maritime Labour Convention 2006 (MLC) was developed by the ILO with the intention of setting minimum working and livings standards for all seafarers. The MLC sets out a series of rights to working and living conditions for seafarers, including but not limited to; minimum age, annual leave, onboard medical care, accommodation, food, and health and safety protections. The MLC came into force on 20 August 2013 and has been ratified by 97 ILO member states which equates to more than 90 per cent of world’s gross tonnage of ships.
3.27Of note, on 11 May 2011, JSCOT tabled Report 116 which analysed the MLC. The Committee supported the MLC and recommended that binding treaty action be taken. On 21 December 2011, the Australian Government ratified the treaty.
Proposed minor treaty action
3.28The MLC Amendments was adopted at the 110th session of the ILC which took place on 6 June 2022. The Amendments are expected to have a negligible impact on financial, legal, and practical terms while also having no cost implications for shipowners or the Australian Government.
3.29The following outlines the changes the MLC Amendments will make to the MLC and the effects these changes will have:
- Regulation 1.4 – Recruitment and Placement: The changes will ensure seafarers are informed of their rights to compensation for monetary loss regarding failure to meet recruitment and placement services obligations.
- Regulation 2.5 – Repatriation: The changes will obligate members to have strong and proactive repatriation strategies in place for seafarers. This includes seafarers who have been deemed abandoned and those who have been placed on ships which were recently deemed abandoned.
- Regulation 3.1 – Accommodation and recreational facilities: The changes will ensure seafarers have appropriate social connectivity including a connection to internet.
- Regulation 3.2 – Food and catering: The changes will ensure suitable drinking water will be available for free.
- Regulation 4.1 – Medical Care onboard and ashore: These changes will ensure seafarers who require medical attention will be promptly and safely disembarked ashore to access medical facilities. These changes will also ensure repatriation for any seafarers who die onboard.
- Regulation 4.3 – Health and safety protection, and accident prevention: These changes will ensure that members provide seafarers with adequately-sized personal protective equipment. Further changes will include provisions whereby members will need to adequately investigate deaths of seafarers and report these annually to the ILO to be published in a global register.
- The amendments will also see changes to Appendix A2-I and A4-I which will facilitate a functioning financial security system. Article XV of the MLC dictates that amendments which have been approved at the ILC are accepted unless formal expressions of disagreement are received by more than 40 per cent of MLC Members representing no less than 40 per cent of the gross tonnage of the ships of MLC Members. This disagreement needs to occur within two years of the notification date and members who disagree are not bound by the amendment when it enters into force. The deadline for when members can express disagreement for these amendments is 23 June 2024. If the disagreement threshold is not met by this date then the amendments will enter into force 23 December 2024. The Australian Government does not disagree with these amendments.
Justifications
3.31During the ILC 2022, the Australian Government alongside the Australian Council of Trade Unions (ACTU) and the Australian Chamber of Commerce and Industry (ACCI) voted in favour of these amendments.
3.32The acceptance of these amendments will ensure workplace protections and facilities for seafarers are adequate and enforced internationally. Australia’s commitment to these amendments, the MLC and the ILO more broadly will continue to encourage other countries to protect seafarers.
Legislative Changes
3.33Legislative amendments will need to be made to Marine Order 11 (living and working conditions on vessels) 2015 under the Navigation Act 2012 to ensure all aspects of these amendments are reflected. The only amendment which will not require legislative action is the requirement to report deaths of seafarers at sea which is already a requirement under the Navigation Act 2012 and the Australian Maritime Safety Authority (AMSA) will need to implement administrative changes to meet this requirement.
Conclusion
3.34The Committee resolved that:
- the Implementing Changes to the Product-Specific Rules Annex of the Regional Comprehensive Economics Partnership Agreement be endorsed as a minor treaty action without inquiry;
- binding treaty action be recommended in relation to the Implementing Changes to the Product-Specific Rules Annex of the Regional Comprehensive Economics Partnership Agreement.
- The Committee further resolved that:
- the Instrument for the Amendment of the Constitution of the International Labour Organisation, 1986 be endorsed as a minor treaty action without inquiry;
- binding treaty action be recommended in relation to the Instrument for the Amendment of the Constitution of the International Labour Organisation, 1986.
- The Committee further resolved that:
- the Amendments of 2022 to the Code of the Maritime Labour Convention 2006 be endorsed as a minor treaty action without inquiry;
- binding treaty action be recommended in relation to the Amendments of 2022 to the Code of the Maritime Labour Convention 2006.
Mr Josh Wilson MP
Chair
13 May 2024