Announcement date
05/06/2024
Link to announcement
https://www.trademinister.gov.au/minister/don-farrell/media-release/visit-singapore
Problem being addressed
IPEF’s Fair Economy Agreement seeks to promote a fair economy in the Indo-Pacific by bolstering regional efforts to address corruption and improve tax administration. The problem being explored in the IA centres around corruption, how it undermines democratic institutions, contributes to government instability, and how it constrains economic growth by deterring outbound and inbound investment.
Proposal
The IA considers two options: to sign the negotiated Agreement, or to not sign. The negotiated Agreement has several focuses, which include:
• Consolidating common standards on anti-corruption
• Building on, and developing coherence between existing standards
• Strengthening beneficial ownership transparency
• Capacity building
• Committee structures and meetings to monitor and operationalise the Agreement’s commitments
The IA uses both a multi-criteria analysis and qualitative analysis methods to conclude that signing the Agreement will result in a higher net benefit than not signing, along with greater achievement of the Government's objectives.
Assessed Impact Analysis outcome
Good practice
The analysis in the IA is good quality overall. The IA addresses the seven IA questions and follows an appropriate policy development process commensurate with the significance of the problem and magnitude of the proposed intervention.
Assessment comments
The IA has a well-structured problem statement and presents a detailed summary of the policy options and how they would achieve the stated objectives. In order to achieve the highest rating of ‘exemplary’, the IA would have had to:
• Further quantify the potential costs and benefits of the proposed options
• Identify implementation risks, including their likelihood and consequence, and the appropriate management approach
• Explained the importance of consultation to help shape options and/or understand the impacts.
Regulatory burden
The Department of Foreign Affairs and Trade estimates these measures will result in a nil increase in regulatory costs.