FEDERAL GOVERNMENT USES SIMPLIFIED TRADE SYSTEM AS A SMOKE SCREEN INSTEAD OF LEADING GENUINE REFORM

According to the World Bank, Australia’s ‘trading across border’ ranking plunged in the decade to 2020 from 25th in the world to 106th.

In response, the Federal Government in its most recent budget committed an additional $23.8 million in 2023–24 to continue initiatives to modernise and improve Australia’s international trade system. Supporting this outcome, the Simplified Trade System (STS) Taskforce released a consultation paper last month for industry feedback.

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) provided a detailed submission to the STS (including 28 key recommendations) and also included a strong message to the Federal Government that much more is required to turn around a further decline supply chain performance.

We do not attribute the World Bank ranking solely to inefficiencies in legacy government systems, processes, and regulation. Of greater significance, the Productivity Commission review of ‘Australia’s Maritime Logistics System’ highlighted the need for urgent reform in shipping competition and specific landside commercial practices.

The Federal Government is yet to respond to the Productivity Commission report that was released in January this year. This leave the question as to how long the Federal Government can escape criticism for this lack of action that is directly impacting inflationary pressures across our economy - can you imagine if our education or health sector dropped 80 places in world rankings – there would be a public outcry and heads would roll.

We have provided extensive evidence to the Federal Government that specific supply chain practices referenced by the Productivity Commission are unfairly directly costing the trade sector $1billion per annum. The lack of response by the Federal Government makes you question whether the STS is being used as a smokescreen to be seen to be doing something without addressing the root cause of problems that exist in our international supply chains.

While reform under the STS banner is welcomed, it is essential that the Federal Government takes a genuine and holistic approach to supply chain reform to stimulate an economic recovery and support significant growth opportunities for Australian exporters and importers.

Please refer to the FTA / APSA?submission?to the STS and associated?media release.