Abbott Must Not Deliver Bad Trade Deal with China

12 November 2014

Reports today that the Prime Minister is willing to sign a free trade agreement (FTA) with China that fails to deliver on key objectives are an exercise in softening up Australians for a poor quality trade deal.
The fundamental test for any FTA is that it achieves genuine market access for Australian exporters and supports and createsAustralian jobs.
That is why Labor is concerned at reports from Beijing that the Government is preparing to cut key export sectors like sugar out of the proposed FTA with China.
Its also why we say provisions on movement of people in any FTA must strike the right balance between fostering employment opportunities for Australians and ensuring businesses can secure the skills they need.
It's time for greater transparency on trade from the Abbott Government. Australians deserve more than the choreographed leaks weve seen out of Beijing over recent days including the latest report of a so-called two-step deal.
We know things are bad when the Governments own Senator Bill Heffernan the chair of the Senate Rural and Regional Committee says there is too much secrecy around this deal.
Labor urges the Government to get this deal right the first time.
Tony Abbott must not sign up to a second rate agreement which cant be fixed because the Government has made binding commitments that for legal, political or diplomatic reasons cant be easily amended.
Labor believes the benchmarks for a genuinely liberalising and high-quality FTA with China include:
  • New Zealand-plus market access outcomes for Australian farmers and other exporters;
  • Elimination or significant reductions in tariffs on Australian industrial goods;
  • Retention of Australias anti-dumping safeguards;
  • Major improvements in market access for Australian services;
  • Reducing red-tape and other barriers to Chinese investment in Australia and to Australian investment in China;
  • No provisions which give Chinese companies operating in Australia superior legal rights to those enjoyed by Australian companies;
  • Retention of labour market testing or comparable safeguards on temporary migration.
The Government must deliver a high-quality free trade agreement with China that is in Australias national interest not a second-rate deal struck solely for the Prime Ministers political interests.