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

On behalf of the opposition I welcome the tabling of the signed Japan-Australia Economic Partnership Agreement and the related national interest analysis. The opposition appreciates the acknowledgement by Trade Minister Robb of the efforts of former trade ministers Simon Crean and Craig Emerson in progressing this trade agreement with one of our largest trading partners. Those negotiations were part of Labor's embrace of our region.

In our Australia in the Asian century white paper we mapped out significant opportunities—and some challenges—for Australia in our region. Increased trade in goods and services is one of the key opportunities. Japan and Australia have a good, strong and stable relationship. We have been reliable trading partners for decades. In 2013, Japan was our second largest trading partner, with two-way trade valued at $70.8 billion. We are also reliable investors. Japan has been a long-term investor in Australia, with investment stock of $131 billion at the end of 2013. This investment has been critical to enable Australia to capitalise on the demand for our resources and to provide jobs and economic growth. Australia is also invested in Japan, with Australia's stock of investment in Japan at $50 billion at the end of 2013.

For four decades—since the Whitlam government lowered postwar tariff barriers—Australia has progressively opened its economy to the world. Whitlam, then Hawke and Keating set our nation on a course to greater productivity and competitiveness, delivering the high standard of living that we enjoy today. Japan has been much slower to embrace trade liberalisation. The concessions made during the course of negotiations on this agreement are welcome, as a first step on the path to more open trading arrangements.

Labor supports comprehensive trade agreements that are in our national interest. Preferential agreements should support a multilateral framework. In this agreement, Labor welcomes the proposed increase in the Foreign Investment Review Board threshold to over $1 billion for non-sensitive investment from Japan. This puts Japanese investment at the same standard as non-sensitive sector investment from the US, New Zealand and South Korea.

We note, however, the proposed carve-out of agricultural investments from the higher investment threshold—a shameless concession to the National Party and a shining example of why the government mantra of 'open for business' is little more than a brand on a banner. Many agricultural industries have not welcomed this agreement. Reactions have ranged from 'substandard' and 'not a major winner' to 'falls short of the mark' and 'another kick in the guts'.

Labor welcomes the fact that the Japan-Australia Economic Partnership Agreement does not include an investor-state dispute settlement provision. With investment between two countries with developed legal systems, there is no need for such a provision. However, we want to better understand the practical implication of the various ISDS review mechanisms embodied in the agreement. It is difficult to see why the signing of a future agreement by either country that includes an ISDS provision would trigger a review under the agreement.

We also want to explore some of the content behind the sales pitch. For example, the government has boasted that the agreement will deliver immediate tariff elimination and reduced levies for high-polarity—international standard—raw sugar. However, Australia's principal sugar export to Japan is a different kind. It is a special low-polarity grade sugar, worth over $235 million in 2013, which receives no benefit under this new agreement. Tariffs on this type of sugar remain at 70 per cent.

There is much more capacity to deepen our trading relationship with Japan. A key test of the agreement signed by the government is how much of that capacity will be realised. All Australians have a stake in our trading relationship with the world. In tabling the signed agreement and national interest analysis, the minister has finally given the parliament and the Australian community the opportunity to subject the agreement to scrutiny. Labor will embrace that opportunity, including through the Joint Standing Committee on Treaties. Labor notes with disappointment that the government published the text of the agreement just after signing, an act of defiance of the Senate order to table the text of the agreement 14 days before signing.

The minister made reference to the Korea-Australia Free Trade Agreement. I note that parliamentary consideration of the Korea-Australia Free Trade Agreement is underway, with over 60 submissions received by the Joint Standing Committee on Treaties and a further 56 submissions received to date by the inquiry being undertaken by the Senate Foreign Affairs, Defence and Trade References Committee.

The first public hearings on the Korea-Australia Free Trade Agreement were held by the Joint Standing Committee on Treaties early this week. It is clear that there is a great deal of community concern about the investor-state dispute settlement provisions included in the Korea agreement, with much scepticism about so-called ISDS 'carve-outs' negotiated by the minister. There is also concern from business about the commercial workability of the Korea agreement related to red tape and confusing use of nomenclature. Reducing red tape, improving harmonisation and implementing domestic measures to support the growth of our small, medium and large exporters is essential to secure Australia's growth.

Labor wants to hear from individuals, community groups and business in connection with the free trade agreements before the parliament. We urge the government to tone down its triumphalism and start listening to Australians with concerns about some of the decisions made by the government in concluding these deals. The government has a responsibility to convince Australians that trade deals are in the national interest. In this, as in other areas of public policy, three-word slogans are not good enough.

Labor will work with the government constructively, but not uncritically, in ensuring the proposed treaty before the House is in our national interest. Finally, I acknowledge the work of the minister and previous trade ministers and the contribution of the many officials who have played an important role in the negotiations on the Japan-Australia Economic Partnership Agreement.

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