Madeleine King (Brand, Australian Labor Party, Shadow Minister for Trade) Share this | Hansard source

I rise today to confirm Labor's support for the Customs Amendment (Regional Comprehensive Economic Partnership Agreement Implementation) Bill 2021 and the Customs Tariff Amendment (Regional Comprehensive Economic Partnership Agreement Implementation) Bill 2021. These bills are the enabling legislation to implement the Regional Comprehensive Economic Partnership Agreement. In doing so, I move the second reading amendment that will be circulated in my name:

That all words after "That" be omitted with a view to substituting the following words:

"whilst not declining to give the bill a second reading, the House:

(1) notes:

(a) the need for transparency in trade agreement negotiations such as the Government's current negotiations in relation to trade agreements with the United Kingdom and the European Union articulated in Report 193 of the Joint Standing Committee on Treaties;

(b) reports that labour market testing waivers were a feature of RCEP negotiations and are under consideration in current and ongoing trade negotiations, which would harm Australian workers and our ability to recover from the COVID-19 global pandemic; and

(c) the Joint Standing Committee on Treaties Recommendation 2 of Report 196, which calls on the Government to continue to pursue the restoration of civilian, democratic rule in Myanmar as a foreign policy priority, and consider making a declaration to this effect at the time of ratification; and

(2) calls on the Government to:

(a) adopt the recommendations of the Joint Standing Committee on Treaties in relation to Myanmar, introduce Magnitsky-style laws to place targeted sanctions on regime leaders, and use all possible international fora to condemn violent repression of protests by the military leadership; and

(b) adopt and implement the recommendations of JSCOT Report 193".

The Regional Comprehensive Economic Partnership Agreement—or RCEP, as it is known—was signed on 15 November 2020 by 15 countries: each of the 10 Association of Southeast Asian Nations, or ASEAN countries, which includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, as well as the five non-ASEAN countries of Australia, China, Japan, New Zealand and South Korea. These countries make up 29 per cent of world GDP and 30 per cent of the world's population. RCEP is, simply put, the biggest trade agreement in history, taking in one-third of global trade.

Negotiations for RCEP started in 2012 at the 21st ASEAN summit in Cambodia. Former Labor Prime Minister Julia Gillard and Labor trade minister Craig Emerson commenced negotiations for RCEP on behalf of Australia. From the very beginning, Labor has supported Australia being actively involved in the negotiation of this extraordinary example of regional trade infrastructure which was, very importantly, led by ASEAN itself. This trade bloc of our own region's creation will be bigger than the European Union and the North American Free Trade Agreement of US, Mexico and Canada. RCEP reflects the dynamism of the region in which we live. It is not just a big deal for the world; it is a big deal with for Australia. It includes nine of Australia's top 15 trading partners and economies, which account for 58 per cent of Australia's two-way trade and 67 per cent of our exports. Ratifying RCEP will mean that Australia has a seat at the table in the biggest trade agreement in the world. Importantly, Australia will be able to influence the rules as the agreement continues to develop. Once delivered and ratified by all countries concerned, RCEP will rank behind only the World Trade Organization itself in its significance.

In essence, the Regional Comprehensive Economic Partnership Agreement strengthens the rules already developed through a number of Australia's existing free trade agreements and creates new regional architecture for economic activity, with the potential to act as a forum for ongoing dialogue and cooperation. Further, RCEP includes core investment protections; rules requiring payment of compensation where an investment is expropriated; a minimum standard of treatment of investors under international law; and compensation for losses due to conflict and civil strife. The agreement provides avenues for tackling non-tariff barriers, including areas such as quarantine and technical standards, by promoting compliance with WTO rules and further improving cooperation and transparency. Importantly, RCEP supports economic capacity building and, in particular, provides a dedicated chapter addressing the capability of small and medium-sized enterprises in the region set to benefit from the agreement. These protections and transparency provisions will provide greater certainty and confidence to Australian businesses looking to invest in the region. The advantage of RCEP is that it provides a single set of rules for exporters to use rather than having to rely on the multiplicity of different rules and procedures under our existing free trade agreements. This opens up opportunities for Australian exporters looking to utilise regional supply chains.

Regional supply value chains are an essential component of the contemporary global economy. They are cross-border industrial networks producing goods where countries specialise in different stages of production associated with a finished product. RCEP, as a trading bloc, will render such value chains cheaper and easier to access for all Australian companies. As a multilateral trade agreement, RCEP is designed to streamline these rules, standards and procedures, encouraging the development of deeper value chains. For example, businesses will be able to use a 'made in RCEP' origin certificate with standardised rules for how much local content is needed to qualify. Even though there may be bilateral FTAs between nations, businesses with global supply chains may yet have higher tariffs or restrictions because some component parts are made elsewhere. For example, an Indonesian-made product may have components from Australia or China and, therefore, face tariffs applied elsewhere in the ASEAN free trade zone, but, with RCEP, all components from any member nations will be treated equally. This provides an enormous incentive for businesses in the RCEP countries to look within the 15-nation bloc for suppliers to contribute to their product. In this context, the Regional Comprehensive Economic Partnership Agreement will possibly make the Indo-Pacific the most attractive location to build value chains in the global economy, and a strong, vibrant and prosperous Indo-Pacific is good for Australia.

As an open-trading nation, Australia has been the beneficiary of the multilateral, rules based trading system that has operated for decades. Labor recognises that Australia's security and prosperity rely on our continued economic engagement with the world and integration with our region, including through trade and investment. International trade creates jobs. One in five Australian workers, more than two million people, are employed in a trade-related activity. Labor know that open trade will be an integral component of Australia's economic recovery from the COVID-19 pandemic, and we acknowledge that open trade agreements and comprehensive economic partnerships have become matters of strategic and geopolitical significance. Labor will at all times act in the national interest and in accordance with Australia's international obligations in dealing with open trade agreements and comprehensive economic partnerships.

As the WTO body stagnates and reform is stalled, regional agreements such as the RCEP are integral to creating an even playing field between Australia and its trading partners around the world, particularly in our vibrant region, from which our future prosperity will be earned. But Labor knows that the community is rightly sceptical about this government's approach to economic change and trade agreements. We all know the Liberals and Nationals treat trade agreements like trophies to put on a shelf: ink the deal, get dressed up for the photo-op, but then have no follow-up. So I'd like to take this opportunity to reflect upon Labor's approach to international trade and trade agreements.

We would do things differently while pursuing an open trade agenda. A future Albanese Labor government would promote Australia's international competitiveness, maintain a commitment to an open economy and work to increase the volume of Australia's trade with other nations. Labor has a long record as an advocate for an open global trading system. Reducing barriers to trade creates more competitive industries and benefits consumers through lower prices and greater choice. Trade is a pathway to a high-skills, high-wages future for working Australians. Labor will set out an ambitious open trade agenda in government aimed squarely at increasing the complexity of our exports in order to create more well-paid, secure jobs, strengthen economic resilience and ensure that every trade deal we sign will increase the living standards of the Australian people. Labor will promote services-sector innovation and identify the capabilities needed to establish Australia as a leading global trade and services economy.

The benefits of trade can and must be shared fairly, both at home and abroad. Labor will invest in education, training, skills and innovation, building Australia's national infrastructure and promoting the health and welfare of the community so that Australians can benefit from the opportunities created by trade. When multilateral trade negotiations, such as those of the WTO, are not making satisfactory progress, Labor will consider high-quality regional or bilateral trade agreements that are in Australia's national interests and that support the multilateral trading system. We are committed to trade policies consistent with Australian values of justice and equality, community views, workers' rights and the interests of developing countries. Trade agreements must be consistent with Australia's social and economic values, be based on widespread consultation, provide for appropriate minimum and enforceable labour and environmental standards, take account of social and economic impacts and allow sovereign governments to make decisions and implement policies in the interests of their citizens. Economic growth has been good for developing countries, but, in many economies, these benefits have not been fairly shared. More equal economic growth will create decent jobs, lifting people out of poverty and giving them economic dependence while supporting human rights.

RCEP as it stands does not have an environment chapter or a labour chapter. When Labor was last in government, the then trade minister, Craig Emerson, sought to include these provisions; however, other RCEP members were not amenable to this. Prime Minister Gillard, Trade Minister Emerson and the Labor government at the time rightly decided to proceed with negotiations, despite the setback, to ensure Australia continued to be involved in the creation of regional trade architecture. Opting out and retreating to the sidelines were absolutely not an option, and to do so would have set back Australia's relationship with ASEAN significantly. The intent of the Regional Comprehensive Economic Partnership is capacity building, bringing emerging economies up in line with established economies like ours. This stands in contrast to other more ambitious agreements with developed economies which do include labour chapters with enforceable international labour standards. However, RCEP does include ratchet measures, with the ability to continue to develop provisions in these areas through successive reviews over time, and Australia must participate actively in those reviews in the future. Labor does not support arrangements that undermine the Australian government's capacity to govern in the interest of all Australians, including any provisions that remove Australia's protection of local jobs through regulation of temporary work; that waive labour market testing; that further limit the capacity of governments to procure goods and services locally; that require the privatisation or contestability of public services; that undermine Medicare, the public health system and the Pharmaceutical Benefits Scheme; that undermine state or Commonwealth workplace laws or occupational licensing arrangements or laws that relate to antidumping. I have sought and have received clear written advice from the trade minister that RCEP does none of these things and that ratifying the agreement will not undermine the Australian government's capacity to govern in the interest of all Australians.

I can confirm that RCEP does not expand waivers of labour market testing for foreign workers. Stakeholders have rightly queried the inclusion of an instrument in the Migration Act which mentions a change to our domestic market testing regime. I've clarified with the Department of Foreign Affairs and Trade that this is a technical measure and there are no changes to labour market testing in this country as a result of participating in this Regional Comprehensive Economic Partnership. Indeed, the instrument under the Migration Act foreshadowed in the national interest assessment establishes that the obligations set out in RCEP form part of Australia's legal obligations. Such instruments are made under the Migration Act for every international trade agreement Australia enters into.

To be clear, RCEP does not restrict Australia's domestic procurement arrangements at any level of government. It does not require privatisation of any Australian Public Service, nor does it undermine the Pharmaceutical Benefits Scheme. RCEP does not undermine state or Commonwealth workplace laws, occupational licensing arrangements, nor does it undermine Australia's antidumping regime. It does not include provisions that limit the right of the Commonwealth to regulate in the interests of public welfare in relation to safe products and there are no investor-state dispute settlement provisions.

I would like to take a moment to commend the work of civil society and the trade union movement in steering this government away from implementing ISDS as a base for dispute settlement in trade negotiations. The fact that we are seeing ISDS less and less in our international treaties is a testament to the tireless campaigning of the ACTU, AFTINET and others.

Recent media reports that a former member of this place Mr Clive Palmer is exploring the use of ISDS mechanisms to sue the Australian government just go to re-affirm our opposition to them as a general provision of international trade deals. Having already forked out $1 million on legal fees, because the Prime Minister supported Mr Palmer's attempts to sue Western Australia, Australian taxpayers don't want to be stung again by another vexatious suit from a vexatious litigant that only seeks to serve himself and to damage the state of Western Australia and the whole nation.

A future Albanese Labor government will ensure that trade agreements signed by the Commonwealth require skills assessments, including practical and theoretical testing, to be undertaken in Australia, and not restrict such skills assessments for temporary visa holders, and would include in any future bilateral regional or multilateral trade agreement a labour chapter with enforceable internationally recognised labour standards.

Labor supports, and will ensure in government that, a rigorous, independent economic analysis of trade agreements is conducted. Labor would also require an independent economic assessment of the impact of each agreement to be included in the report of the Joint Standing Committee on Treaties to the parliament.

I note the treaties committee report into treaty making, report No. 193, tabled in August this year recommended:

… the Government consider implementing a process through which independent modelling and analysis of a trade agreement, at both the macro and sectoral levels, is undertaken in the future by the Productivity Commission, or similarly independent and expert body, and provided to the Committee alongside the National Interest Analysis to improve assessment of the agreement, increase public confidence in the benefits of trade agreements, and facilitate the longitudinal assessment of actual trade outcomes.

Public confidence is critical in free trade. Labor calls on the government to implement this recommendation.

This important review of the treaties committee into treaty development would not have happened but for Labor. In discussions with the government in relation to the Indonesian-Australia Comprehensive Economic Partnership the government, through then trade minister Senator Birmingham, agreed to my request that JSCOT be asked to undertake such a review. I'm glad the government allowed to this happen and gave the parliament an important opportunity to examine the manner in which it addresses free trade treaties and agreements and demonstrated the community desire for more openness and transparency from government in relation to free trade negotiations.

A future Labor government will ensure that Australians are informed about trade negotiations and will undertake full community consultation before entering new agreements. The provision of public updates will follow each round of negotiations and, where feasible, draft text would be released. Labor will ensure transparency in future trade agreements through the tabling of national interest assessments and consultation with industry, unions and community groups during negotiations. We would ensure the tabling of negotiation material in parliament where feasible, again, as recommended by the treaties committee in its report into treaty making. In relation to future trade agreements, Labor would commission an independent national interest assessment which includes a comprehensive social, economic and regional impact assessment of the negotiated treaty text, and we would implement reviews of existing free trade agreements.

Labor recognises that trade agreements should not be used to undermine Australian working conditions and that foreign workers should only be used in situation where specific skills shortages are present and only for the period it takes to train and develop the capacity of an Australian citizen to do the job. Labor does not support the inclusion of provisions in trade agreements that confer legal rights on foreign businesses that are not available to domestic businesses. But we are not yet in government, as you well know, Deputy Speaker, and, as we know, international treaties are the remit of the executive.

Labor called for the final treaty text of RCEP to be publicly released before the agreement was signed and allow it to be scrutinised. But the Morrison government refused that request. Labor has previously raised concerns over the Morrison government's refusal to commission independent economic modelling for the RCEP. There is nothing new about this all-talk do-nothing government. At a time when calm and skilful diplomacy is needed to resolve our trade tensions with China, the Morrison government has given the member for Dawson free rein to spout inflammatory comments and spread misinformation about our largest trading partner, China. Under Prime Minister Morrison, Australia is more dependent than ever on China for our exports and jobs. In fact, we depend on the Chinese market more than any other country in the world. When trade diversification is of the highest priority for this nation, the Prime Minister is putting at risk our trade agreement with the European Union due to the diplomatic ineptitude on the recent nuclear subs decision.

Labor knows that achieving genuine trade diversification will require a long-term whole-of-government commitment and a plan. Every portfolio in government should be thinking about what it can do to contribute to a national effort to diversify what we export and where we export goods and services to. In health and finance, for example. Australia has a remarkable capability that is already exported but much more can be done. Australia has $3.3 trillion of funds under management through our superannuation system. We have developed an industry that is envied around the world, and economies like Japan are looking to Australia for funds management expertise. Similarly in health, Australia is expert in providing traditional and digital health care into remote areas, which will be replicated in the complex and challenging geography of Indonesia and its many islands at a time when Indonesian healthcare companies are looking for internationally competitive health solutions.

Labor is prepared to make that commitment and build that plan in conjunction with job-creating export industries to diversify our export economy. We would work with exporters to build relationships and secure the markets that Australian jobs depend on. Diversifying export markets is more than a photo op for a free trade signing ceremony. Unlike the Morrison-Joyce government, Labor knows that our relationships with our trading partners cannot just be set and forget. Signing a free trade agreement is the beginning of the story and not the end.

In 2019, the Morrison government committed to a range of measures to secure Labor's support for the Indonesia-Australia Comprehensive Economic Partnership Agreement—namely, compelling JSCOT to review the way our country negotiates trade agreements. I'm satisfied that the JSCOT treaty-making review has been completed well, and I thank all members of the committee for their hard work in undertaking this process. I call on the government to implement the remainder of these commitments—in particular, those related to work exploitation—as a matter of urgency.

In relation to RCEP, unions and other civil society stakeholders have expressed concern regarding the potential for public regulation in the aged-care sector to be constrained under RCEP. DFAT and Minister Tehan know that there are reservations in RCEP, like in any FTA, that allow Australia to regulate in the public interest, which includes for aged-care or climate change action. The Minister for Trade has confirmed in writing to me that 'RCEP will not prevent or impair the implementation of any recommendation of the aged-care royal commission'. Furthermore, the minister has confirmed that RCEP will not constrain the government in its delivery of the reforms of aged care in response to the commission's final report. Indeed, Labor would not support any agreement that would inhibit the government's ability to implement in full the recommendations of the royal commission into aged care services. I would like to take this opportunity to thank the senior officials and all the officials of the Department of Foreign Affairs and Trade, and the minister's office for allowing them to be available to brief members of the Labor caucus over the course of this year in relation to the RCEP agreement.

I will make some final remarks on Myanmar, which as an ASEAN nation is a signatory to RCEP. Labor condemned the military coup of 1 February and the subsequent killings of thousands of civilians by the Tatmadaw in ongoing protests. This was a direct attack on Myanmar's ongoing democratic transition. We've since seen widespread arrests of politicians, activists and media representatives. These actions by the Tatmadaw are unacceptable, and the Myanmar security forces must cease their violence, ensure the right to peacefully protest and engage in dialogue with the people of Myanmar. On 2 February Labor called for the Australian government to review its military cooperation with the Tatmadaw, and over a month later that cooperation was suspended. We also called for targeted sanctions against those responsible for the coup. In April Labor called on the government to provide visa pathways for at-risk Myanmar nationals to remain in Australia. Once again, a month later, the government said that those on temporary visas could apply to extend their stay.

But the Morrison government has still not implemented any additional targeted sanctions against those responsible for the coup and the human rights abuses we're witnessing in Myanmar. This is despite many of our like-minded partners taking strong actions against the coup and despite the fact that in June the government-chaired Joint Standing Committee on Foreign Affairs and Trade recommended sanctions against the Tatmadaw and in August the Joint Standing Committee on Treaties had to, embarrassingly, remind the Morrison-Joyce government once again of the need to act. Labor members of the treaties committee worked very hard to finalise the final report, report No. 196, in relation to RCEP to reflect stakeholder concerns on Myanmar. I'd like to take a moment to thank the deputy chair, the member for Wills, as well as Senator Ayres, the member for Fremantle, Senator Ciccone, Senator Kitching and the member for Jagajaga for their tireless efforts on the committee, and all other members of the committee for the work they did in this regard.

The JSCOT inquiry into RCEP recommended that the government continue to pursue the restoration of civilian democratic rule in Myanmar as a foreign policy priority and consider making a declaration to this effect at the time of ratification. Now we have a situation where two government-led committees have recognised three times between them that there is a need for targeted sanctions against the coup leaders in Myanmar, but the Morrison government still refuses to act on this. I call on the government to act on the recommendations of the parliamentary committees that it leads and to prevent the impression from growing that Australia does not care about this ongoing crisis in our region. Australia must stand up for human rights. It is past time for the Prime Minister and the foreign minister to act in support of Myanmar's democracy and to implement targeted sanctions and to support the people and the development of democracy in Myanmar.

It is important that Australia support ASEAN in its efforts to restore democracy to Myanmar to end the violent repression of its people. ASEAN itself has taken the important step of banning the military leadership of Myanmar from its upcoming regional summit. Consequently, the military have announced the release of 5,600 political prisoners held in custody because of their participation in protests against the military coup. It remains to be seen whether these prisoners will in fact all be released, but this is an important step by ASEAN and also by the military themselves.

I am pleased to stand here today to support the passage of the enabling legislation for the Regional Comprehensive Economic Partnership Agreement. It is significant for ASEAN and of critical importance to our relationship with all the ASEAN nations in an increasingly contested region. Labor is the party of open trade. Our country's economy is as strong and as vibrant as it is because of Labor governments' acknowledgment that our future prosperity and security will only be found in the region. Our relationship with South-East Asia and ASEAN is critical to this future. Rules based trade, as contemplated by the Regional Comprehensive Economic Partnership, is a vital component of a stable and prosperous region that is respectful of sovereignty. With those words, I commend these bills to the House.

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