Free Trade and other Co-operative Agreements

Tasmania, together with the Australian Government and all other states and territories, is bound by a number of free trade agreements and cooperative arrangements. Information on the agreements, including information on what procurements are impacted by the agreements, is located in the Treasurer's Instructions 1102 and 1202 and in the publications referred to in the Resource Centre to the right.

Australia and New Zealand Government Procurement Agreement (ANZGPA)

Under this cooperative agreement, government buyers cannot give preference to local suppliers nor discriminate against suppliers from other Australian states and territories or New Zealand. Australian and New Zealand suppliers must be given equal consideration and opportunities to compete for government contracts.

A copy of the ANZGPA can be obtained from the Australasian Procurement and Construction Council website.

The ANZGPA applies to all procurements undertaken by agencies regardless of value.

Free Trade Agreements

The current free trade agreements that contain procurement requirements are the:

  • Australia - United States Free Trade Agreement;
  • Australia - Chile Free trade Agreement;
  • Korea - Australia Free Trade Agreement; and
  • Japan - Australia Economic Partnership Agreement.

These agreements apply to certain procurements above a designated threshold. Where the agreements apply, agencies must:

  • treat the goods and services (including construction services) of a party to a free trade agreement and the suppliers of goods and services (including construction) of a party to a free trade agreement on a basis which is no less favourable than the most favourable treatment provided by the agency to goods and services or suppliers of goods and services from Tasmania, Australia or New Zealand;
  • not treat a locally established supplier less favourably than other locally established suppliers on the basis of degree of affiliation or ownership with, or by, a party to a free trade agreement nor discriminate against a locally established supplier on the basis that the goods or services (including construction) offered by that supplier for a particular procurement are goods and services of a party to a free trade agreement; and
  • apply additional procurement process to those that normally apply.

The requirement for non-discriminatory treatment also applies to orders under contracts awarded as a result of a procurement that was impacted by a free trade agreement (ie when entering into a purchasing order).

A copy of the free trade agreements can be obtained from the Department of Foreign Affairs and Trade website.