Matt Thistlethwaite (Kingsford Smith, Australian Labor Party, Shadow Parliamentary Secretary for Foreign Affairs) Share this | Hansard source

I look forward to the wine and cheese night next year in the parliamentary secretary's office! I support the passage of these bills . This is enabling legislation which gives effect to agreed reductions in tariffs and rules-of-origin agreements under the Japan-Australia Economic Partnership Agreement. I support the passage of these bills because they liberalise trade. They will create greater access to a very large and growing market in Asia for Australian producers. In turn, that will create jobs.

However, that is in respect of this enabling legislation. In terms of the wider Japan-Australia Economic Partnership Agreement, I and the Labor Party have reservations, particularly in relation to the elements related to access to the Australian labour market. Under this agreement, access to the Australian labour market by Japanese labour will be liberalised in the form of the removal of and reduction in some of the guarantees and protections that are currently in place for Australian labour through labour market testing prior to Japanese or any other labour being introduced into the Australian market. I will have more to say on that in a moment.

I support these bills because they encourage greater access to markets. They will create jobs in Australia. This legislation will give Australian exporters increased access to the Japanese market and a 'first mover' advantage over key competitors such as New Zealand, Canada, the United States, the European Union and others who are seeking further market access in Japan.

In the past, Australia's trade relationship with Japan has focused on energy and resources. In 1957 Australia and Japan signed an agreement on commerce which designated Japan as a 'most favoured nation'. As a result of this agreement and the resultant increased ties with Japan, Australia benefited greatly. In the late 1960s, Japanese investment and vision helped to develop the Western Australian iron ore industry. In turn, Japan benefited from access to Australian iron and coal, supercharging its industrialisation and economic boom in the 1960s. Trade between our two countries would go on to increase four-fold from the mid-1970s through to the 1980s. This is a wonderful example of trade liberalisation resulting in benefits, economic growth and job creation for both of our economies. Our economic partnership has continued to grow, with Australian exports to Japan doubling from $24 billion in 2001 to $50 billion in 2011.

Labor has strongly valued the work to bolster Australia's economic relationship and ties with Japan. It was between 2008 and 2013, under Labor, that the majority of the negotiations—the heavy lifting, if you like—for this agreement were conducted. In addition, to a large extent, Labor is responsible for laying the groundwork necessary for Australia and Japan to come together and reach this agreement.

In October 2012, the Labor government released the Australia in the Asian century white paper, designed to ensure we had the very best chance at maximising the opportunities of large-scale growth in the Asian region. The white paper included a comprehensive examination of five key areas: strengthening the economy, particularly through stronger trade relations; building capabilities; connecting with growing Asian markets; building sustainable security; and developing deeper and broader relationships.

It is good to see that vision outlined by Labor in the Asian century white paper being brought to fruition in this agreement. Growth in two-way trade between Australia and Japan has also coincided with the diversification of products and services that passed between our countries. Today, Japan is Australia's second largest agricultural market for Australian agricultural products, with approximately $4 billion exported in 2013. Australia's agricultural industry is significant for our nation's future and for jobs growth. Currently, the red meat sector alone employs more than 200,000 workers, most of whom are in small local government regions. Dairy is forecasting jobs growth in excess of 6,000 skilled workers next year.

Japan is also Australia's second largest market for non-agricultural goods, with over $42 billion in 2013 being traded with Japan. This agreement opens the way for significant export growth in jobs in these sectors. But the agreement on the whole, not specifically the legislation that we discussed today in terms of tariff reductions, does have some misgivings and shortcomings, and it is not without its detractors. Labor believes that the government should have done more to secure a more comprehensive and inclusive agreement with Japan. The agreement is being criticised by a number of industry groups and organisations whose job it is day to day to represent Australian businesses who are looking to secure greater access to markets in Asia, particularly Japan. The president of the National Farmers' Federation, Brett Finlay, was quoted in The Sydney Morning Herald on 8 April, saying: 'The agreement does not improve, or only marginally improves, market access in terms of trade for a number of sectors, such as dairy, sugar, grains, pork and rice.' The canegrowers association, the Australian dairy industry, Ricegrowers' Association and Australian Pork Ltd also had a few choice words for this agreement earlier this year.

The largest reservation that I have and the great disappointment about this agreement is the reduction in the liberalisation of protections put in place to ensure Australians have first access to Australian jobs. This agreement provides that Australia will permit Japanese nationals to perform certain categories of work temporarily in Australia without the requirement for labour market testing to assess whether the work can be performed by Australian residents. That is something that does not have the support of the wider Australian community. All Australians believe that, given that we have large youth unemployment in particular regions throughout Australia and an unemployment rate that is growing in our nation, Australians should have first access to jobs, particularly jobs in some rural and regional communities through which these will be based. To remove elements of labour market testing—the requirement for employers to advertise locally first, to test the market in a local economy before advertising and before going to foreign labour to fill vacancies—does not wash with the Australian public. It is a great deficiency in this agreement. I only hope that this is not the thin end of the wedge, and Labor waits with bated breath to see what has been negotiated in terms of the details with regard to the China free trade agreement. Some of the categories that will be allowed greater access to the labour market and where the labour market testing rules will be relaxed include traditional business visas, intercorporate transferees and investors, and contractual service suppliers. Labor is disappointed that the agreement does not maintain policy space for labour market testing conditions, particularly for contractual service providers, which cover a whole host of industries throughout Australia.

Labor does agree with the Joint Standing Committee on Treaties report on the Japan-Australia economic agreement, including its conclusion, to support the implementation of this agreement, and JSCOT's concluding comments, which state: 'The Japan-Australia economic partnership agreement will give Australian exporters significantly improved market access in goods and services, eliminating or sufficiently reducing tariffs on a wide range of Australian goods exports, including beef, natural cheese, wine, horticulture and energy resources and products. It will guarantee equivalent or better market access than Japan has provided any other trading partners in key areas of commercial interest to Australian service providers, including education, financial, legal, telecommunications, engineering and other professional services.'

That is why I support the passage of these bills. That is why Labor supports the passage of these bills—for the benefits that they will bring to those industries and those exporters in Australia. Nevertheless, we reserve our rights to oppose the wider agreement in respect of what has been negotiated by the government relating to labour market testing and the relaxation of those conditions in Australia, which unfortunately may see Australians miss out on job opportunities, particularly in rural and regional areas.

By supporting these bills, Labor will ensure Australian industry gets the earliest possible access to first mover reduced tariffs on goods exported to Japan and new market access for services. Labor has for many years recognised the great opportunities that will continue to present themselves in the Asian region and has worked hard to highlight the importance of harnessing these to further enhance jobs and growth for the Australian economy.

Labor supports these bills but exemplifies our commitment to labour market testing and the ideals contained in that. I want to congratulate and put on record my congratulations to the people who do the heavy lifting with these trade agreements, and they are notably the staff of the Department of Foreign Affairs and Trade. Credit also needs to be given to former trade ministers, in particular Craig Emerson and Richard Marles, for their work in bringing this economic partnership agreement and these bills to fruition.

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