Tanya Plibersek (Sydney, Australian Labor Party, Deputy Leader of the Opposition) Share this | Hansard source

I thank the Minister for Trade for his statement and welcome progress in negotiations for a free trade agreement with the Republic of Korea as outlined by the minister. Labor has long recognised that reducing barriers to trade can boost economic growth, create more competitive industries and give consumers access to a wider range of goods and services at a lower price.

As noted by the minister, negotiations on a bilateral agreement with the Republic of Korea were initiated by the former Labor government in 2009. I thank him for his acknowledgement of the work of the former trade minister, Craig Emerson. Labor in government identified the opportunities and challenges of the Asian century, and the initiation of negotiations with Korea was a manifestation of our outward-looking policy framework.

The Republic of Korea is a great friend of Australia. I was very happy to meet with the ambassador this morning. Korea is Australia's third largest export market, and a free trade agreement presents significant opportunities for Australian exporters and for Australian workers. We unambiguously welcome the opportunities this agreement delivers for our exporters in both goods and services, including key agricultural sectors. We also note the challenges it presents for a number of our industry sectors, including textiles, clothing and footwear, steel, and the automotive sector. In light of the decision by Holden to cease its manufacturing operations in Australia by 2017, the impact of tariff reductions on our automotive sector will need to be carefully assessed.

The minister noted the government's decision to include an investor-state dispute settlement mechanism in the agreement. Labor has grave reservations about this decision. It is disappointing the minister did not outline the so-called safeguards in the proposed ISDS provisions of the Korean FTA. Instead of attacking the opposition and the union movement, the minister should recognise the genuine concern in this parliament and in the broader community about the impact of investor-state dispute settlement mechanisms. He should also acknowledge that debate on the desirability of investor-state dispute settlement provisions in bilateral trade agreements is also a feature of debate in Korea about the provisions in the free trade agreement. It is a feature of debate in Korean domestic politics, too.

If the minister genuinely believes that it is in the national interest to give foreign companies standing to take action against the Australian government, standing that is not available to Australian companies, he needs to explain why. If he genuinely believes it is in the national interest to constrain the ability of future governments to make laws for the benefit of Australians, he needs to explain why. Also, if he genuinely believes that it is beyond the wit of a government to negotiate bilateral trade agreements without an investor-state dispute settlement, he needs to explain why the Howard government managed such a negotiation with the United States and why the Labor government managed such a negotiation with Malaysia.

Notwithstanding the potential benefits of trade liberalisation, the outcome of any individual negotiation should be assessed against the national interest and our interests should never be traded away. For that reason, Labor urges the minister to release the full text of the negotiated agreement, including the investor-state dispute settlement mechanism, so that the parliament and the Australian community can assess its potential benefits and, if applicable, its detriments.

Labor responded to last week's announcement of the proposed free trade agreement with Korea by urging the government to release the full text of the agreement. The government, unfortunately, has rejected that request. Indeed, while the trade minister was away I also asked the foreign minister if she would release the full text of the agreement. She also refused. This week Labor successfully moved in the Senate a motion to order the release of the full free trade agreement before signing. The government has sought to resist this order. I urge the minister to reconsider his decision to deny Australians the opportunity to read the agreement for themselves.

Debate on trade should not be allowed to descend into the political tubthumping that we saw inside the government over the proposed foreign acquisition of GrainCorp. A mature debate can only occur if the minister is prepared to treat the parliament and the community with respect. Last Thursday the Prime Minister told the House that the minister had—and I quote:

… successfully concluded negotiations for a free trade agreement between Australia and the Republic of Korea.

Today the minister said that he had 'substantially' concluded negotiations. It is important the government explain what, if any, stumbling blocks remain, including whether they relate to negotiations over the form of the investor-state dispute settlement he has agreed to include in the agreement.

It is disappointing that the minister has outlined only in the broadest terms key facts about this free trade agreement, drawn from a fact sheet that had already been released by the department last week. I believe we deserve more than that on something as important as this to our future—a key trading agreement with a key trading partner. Labor recognises the importance of our trading relationships with the world. They underpin our economy and they underpin our current and future prosperity. Labor looks forward to examining the full terms of the proposed agreement and will assess it carefully to ensure it is genuinely in the national interest.

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