 RESTRICTED  
  
S/C/W/ 437 
 
7 June 2023  
(23-3898) Page: 1/2 
Council for Trade in Services  Original: English  
 
COMMUNICATION FROM AUSTRALIA  
REVIEW OF ARTICLE II (MFN) EXEMPTIONS  
Written answers by Australia to the questions from Hong Kong, China and the Republic of Korea 
(S/C/W/ 431) 
The following communication dated 6 June 2023, from the delegation of Australia is being circulated 
to the Members of the Council for Trade in Services.  
 
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1  QUESTION FROM HONG KONG, CHINA ON ALL MEMBER 'S MFN EXEMPTIONS 
(QUESTION  1, S/C/W/431 , PAGE 2 ) 
Please indicate whether the exemption has been  used for any actual measure since the previous 
review in 2016/17, and if so provide information on the use. If the exemption has not been used, 
please explain why the conditions which created the need for the exemption still prevail, and describe 
whether any action has been taken or is being contemplated to eliminate such exemption. Please 
explain why if not.  
 
Answer from Australia:  
Australia maintains two MFN exemptions, both in the audiovisual sector.   
 
The first, on co -production, relates to preferential treatment of screen productions produced under 
bilateral co -production arrangements.  Under its film co -production program, Australia  currently ha s 
film co -production treaties with Canada, China, Germany, Ireland, Israel, Italy, the Republic of  
Korea, Malaysia, Singapore, South Africa and the United Kingdom, and memorandums of 
understanding (MoUs)  with France and New Zealand. Since the previous review in 2016/17 , Australia 
has entered into a film co -production treaty with Malaysia and signed one with India  in March 2023 
(not yet in force ). Australia is currently negotiating a film co -production treaty with Denmark , and 
is renegotiating its treaty with the United Kingdom and its MoU with France.   
 
The second exemption concerns measures taken to respond if another Member takes unreasonable 
action in relation to our audiovisual services.  No measures have been taken under the 'unreasonable 
action ' exemption to date.   
 
Australia intends to retain its audiovisual exemptions in their current form becau se the cultural policy 
that created the need for these exemptions remains current. The exemptions are not intended to 
prevent trade in audiovisual services and are not trade restrictive.  
 
2  QUESTION FROM THE REPUBLIC OF KOREA ON AUSTRALIA 'S MFN EXEMPTION FO R 
AUDIOVISUAL SERVICES  (QUESTION 61, S/C/W/43 1, PAGE  9) 
Regarding the MFN Exemption measures, "Measures taken to respond to any unreasonable measures 
imposed on Australian services or service suppliers by another Member ", please elaborate on or 
specify 'any unreasonable measures '.  
 S/C/W/ 437 
 
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  Answer from Australia:  
Australia interprets "any unreasonable measures " as measures which are inappropriate or unsuitable 
in the circumstances/beyond the limits of what would be rational or sensible to expect from another 
WTO Me mber with respect to treatment of Australia 's audio -visual services and service suppliers.   
 
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