The Productivity Commission is to examine the nature and source of risks to global supply chains to ensure that the Australian economy is prepared for possible disruptions.
Announcing the project, Treasurer Josh Frydenberg said that while Australia’s supply chains proved resilient in response to the COVID-19 pandemic, it highlighted the country’s potential vulnerability to global supply chain disruption.
Mr Frydenberg said the Productivity Commission would develop a framework for identifying supply chains that were vulnerable to disruption; identify imports of goods that might be vulnerable; and identify possible strategies to manage supply chains risks.
“The Productivity Commission will look at Australia’s supply chains, as well as longer term trends in relation to Australia’s linkages and dependencies with respect to international trade and assess whether vulnerabilities or opportunities exist,” Mr Frydenberg said.
“The Productivity Commission will also examine the nature of the risks to the Australian economy as a result of global supply chain disruptions, identifying any significant vulnerabilities and possible approaches to managing them,” he said.
“The Australian economy greatly benefits from the international trade facilitated by global supply chains, through the provision of critical goods and our specialisation in export markets and it is timely to assess our role in and exposure to global supply chains.”
Mr Frydenberg said that in 2019-2020 the total value of Australian goods and services trade was $873.1 billion.
He said the Commission would undertake consultation, and provide a report on Australia’s role as an importer in March of this year and a second and final report on Australia’s role as an exporter in May.
