Aaron Violi (Casey, Liberal Party) Share this | Hansard source

I rise in support of the motion moved by the member for Page on the Australia-European Union Free Trade Agreement. As a trading nation, free trade agreements are crucial to our economic prosperity, allowing countries to import and export goods without any tariffs or other barriers to trade. They drive lower prices for consumers, increased exports, benefits for economies of scale and a greater choice of goods, and they create jobs.

I saw this firsthand at Yarra Valley Snack Foods, when I was responsible for exports into Asia. Opening new markets delivers significant benefits to local businesses, primarily through opening access to new customers and to markets significantly larger than the local Australian market. So let's use food—the industry I was in—as an example. In Australia, two supermarket companies have significant market share. Export markets allow suppliers to not only grow their business but also diversify their market base away from the duopoly of two key customers. This protects the long-term viability of the business. And that is why free trade agreements are so important.

The previous coalition government had a strong record when it came to securing free trade agreements. We recognised the importance of developing trade relationships for economic security, for tourism, for jobs and for business growth. While in government, the coalition had finalised 11 trade agreements since 2013, including those with the UK and India. During our time in government, we lifted the amount of trade covered by free trade agreements from 27 per cent under Labor in 2013 to close to 80 per cent today.

It therefore comes as no surprise that it was the coalition government that initiated the free trade agreement with the European Union by launching negotiations back in 2018. The coalition did this, seeking an ambitious and comprehensive deal to drive Australian exports, contribute to economic growth and create jobs. A well-drafted free trade agreement between Australia and the European Union will assist businesses with post-pandemic economic recovery by providing new opportunities for growth in a significant market. The EU is our second-largest two-way trading partner of goods and services, which were worth $74 billion in 2020. A comprehensive trade deal with the EU will open the doors to a high-income market of almost 450 million people and a GDP of $23 trillion.

While Australia and the EU are natural partners, given our shared commitment to democracy, freedom, the rule of law and free and open markets, developing a free trade agreement will be a real test for Labor. As it stands, the European Union runs a significant trade surplus within Australia because of our 50-year-old trade deal. It is a huge market with great potential for Australian exporting companies. Given the size of the Australian economy, Australian companies and consumers will always benefit from greater choice and lower prices. Free trade agreements provide Australian companies broader access to international markets. They open our markets up to greater competition while offering more prospects for increased two-way investment and reducing the import costs for Australian businesses and consumers, vital in this time of rising prices.

We want and need a trade agreement that sets a benchmark for what can be achieved between like-minded partners. The government must deliver a free trade agreement that increases investment between Australia and the European Union; creates rules to support the digital economy, so vital to driving productivity in our nation; and reduces cost and red tape for small and medium businesses, which are the engine room of the Australian economy. The looming question is whether the Labor government can secure a completely liberalised market, and that is where their focus should be. So I urge the government to support and complete the foundations already established for an Australian European union free trade agreement so we can all grow and prosper as a nation.

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