David Smith (Bean, Australian Labor Party) Share this | Hansard source

I rise today to also speak in favour of the member for Blair's motion about the Australia-United Kingdom Free Trade Agreement that came into effect earlier this year. I particularly congratulate the member for Blair for his advocacy in this space, and I congratulate all in this parliament who've done important work in this space.

We're already seeing significant benefits flowing from the UK free trade agreement. In the first month since the agreement entered into force, the value of Australia's exports to the UK increased by almost 200 per cent from the same time a year earlier. Australian farmers and agricultural exporters of beef, sheep meat and wine are reaping benefits that have not been experienced since the UK joined the European Economic Community, as it was known then, in 1973.

Both sides of the House agree that the UK FTA is a strong free trade agreement. The Joint Standing Committee on Treaties noted earlier this year that the agreement reflected the longstanding importance, quality and depth of the political, cultural and economic relationship between Australia and the United Kingdom, while looking to set a framework for future trade and co-operation. The joint standing committee also stated that the UK FTA would contribute to diversifying Australia's trade, and it addresses traditional free trade agreement concerns while incorporating a wider range of social and economic principles. At the same time, the UK FTA preserves policy and regulatory space for parties in rapidly evolving sectors, such as digital trade and financial services.

This deal includes strong commitments on the environment, including climate change and labour. This agreement will preserve the right of the Australian government to regulate in the public interest, including for the environment, education and health. It represents one of the most comprehensive, innovative and ambitious free trade agreements entered into by Australia to date, and strengthens an already close relationship between Australia and the UK. The agreement supports the government's trade diversification strategy, delivering unprecedented benefits to Australian businesses and creating new, well-paying jobs.

Prior to the Australian government implementing Australia's trade agreement with the UK, Australian exports, particularly in the agriculture sector, faced extremely high barriers. But the agreement now also facilitates the two-way flow of professionals and helps to address the skills shortage in Australia by providing an overdue framework for professional bodies to agree to streamlined licensing and qualification processes for qualified professionals. This is something that I used to run into a fair bit when I represented engineers. It provides greater certainty in digital trade rules and facilitates trade for Australian businesses looking to grow their digital footprint in the UK. This agreement underpins and deepens our already strong bilateral investment relationship with the UK, which is the second-largest source of foreign direct investment in Australia—valued at around $138 billion in 2022.

But trade is more than just the exchange of products and services; it also boosts the exchange of ideas. This free trade agreement establishes procedures for artists, including First Nations people, to receive royalties when their artworks are resold in the UK. The Australian government has sought high-quality commitments on key sustainability issues, such as environmental protection and labour rights, that align with internationally agreed principles, standards and rules. We have already prioritised the establishment of strong regulatory practice and compliance provisions that create a more predictable business environment for Australian companies.

This government has tilted the playing field to become level again, allowing innovative and hardworking Australian farmers and businesses to compete fairly in the British market. Importantly, an investor-state dispute settlement mechanism is not part of the agreement. This means that Australia's sovereign right to develop and implement legitimate policy measures in areas such as public health and the environment is preserved. But this agreement creates new opportunities to deepen and expand trade investment with one of Australia's most important and longstanding trading partners. It's consistent with our approach to ease the cost of living in Australia by removing tariffs on UK-made goods, which will see Australians pay less at the shops for imported goods from the United Kingdom.

I again commend the member for Blair for this motion, and the Minister for Trade, Senator Farrell, for his hard work in delivering this free-trade agreement.

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