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ARTICLE · 20 FEBRUARY 2015

Cabotage Reform In Australia - The 2012 "Reforms" And The Need For Further Reform

To fully appreciate the significance of the 2012 reforms, it is important to consider the cabotage regime in Australia prior to the enactment of the 2012 reforms.

AustraliaAntitrust/Competition Law

On 1 July 2012 the previous Australian Labour Party (ALP) government of Prime Minister Julia Gillard enacted the Coastal Trading (Revitalising Australian Shipping) Act (CTA) and related legislation - the most comprehensive changes to the regulation of coastal trading since the original Navigation Act was enacted in 1912. The stated objective of the 2012 reforms was to revitalise the Australian shipping industry and enhance efficiency and competition. However, almost 3 years after their enactment, the 2012 reforms have failed to revitalise the Australian shipping industry and have come under strong attack from just about every industry stakeholder for subjecting carriers and shippers to a system that is inefficient, anti-competitive and cumbersome.

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