Steve Georganas (Adelaide, Australian Labor Party) Share this | Hansard source

On behalf of the Joint Standing Committee on Trade and Investment Growth, I present the committee's report, incorporating a dissenting report, entitled Strengthening Australia's approach to trade negotiations.

Report made a parliamentary paper in accordance with standing order 39(e).

by leave—Australia is a leading participant in international trade. Continuing to trade with the world will be essential to generate new and diversified trade and investment opportunities for Australian businesses. An open approach to trade is fundamental to the success of many Australian industries, including supporting one in four Australian jobs. Our network of trade agreements breaks down the barriers, fostering secure and well-paying job. Trade contributes to 31 per cent of our economy, enhancing resilience and raising living standards.

In undertaking this inquiry, the Joint Standing Committee on Trade and Investment Growth observed that the Australian government's approach to negotiating trade and investment agreements has largely served Australians well over many decades. However, it was evident that we must continue to adapt and improve our approach so that we can ensure that our participation in international trade is of the greatest benefit to all Australians.

The inquiry into the Australian government's approach to negotiating trade and investment agreements was adopted on 9 August 2023, following a referral from Minister Don Farrell, the Minister for Trade and Tourism, and the final report was completed on 29 April 2024. We had 54 written submissions, which were received from businesses, industry groups, unions, associations, government agencies, community groups and academics. Eight public hearings were held across the nation, in Canberra and Melbourne and virtually as well.

Throughout the inquiry, the committee was particularly drawn to evidence emphasising the need to better ensure that trade agreements are genuinely within the national interest—that is, providing an overall net benefit to Australia rather than benefits only to certain interests or particular sectors. While trade brings substantial benefits to many Australians, it has the potential to have widespread impacts, with some experiencing costs and being disadvantaged.

Investor-state dispute settlement clauses are some of those things which were contained within our trade agreements, and we'll actively engage in processes to reform existing ISDS mechanisms. Our approach has been to include rules in trade agreements that maintain Australia's high labour standards and give Australian workers a fair go. We understand the importance of ensuring that trade commitments do not unduly weaken domestic policy objectives or the ability of the Australian government to make decisions in the interests of its citizens.

The committee is of the view that more robust processes to identify the potential impacts of trade agreements would be highly valuable. To this end, there should be comprehensive, in-depth and independent modelling and analysis as well as wider assessment of economic, social and environmental impacts to determine whether trade agreements are in the national interest overall. Such impact assessments should consider the implications of Australia's trade commitments in areas such as health, gender, labour and human rights, as well as for regional communities and First Nations people.

Further, to facilitate enduring benefits of trade for Australia, it is also imperative that the national interest is not a one-off assessment. Rather, it must be re-examined using real-world experience as part of the practice for regular review or agreements. Robust processes for determining the national interest are vital to ensuring that public confidence is maintained. We want to work in Australia's best interests when following through our commitment to open international trade. This remains more important than ever in the face of significant challenges arising in the global trade environment over recent years.

The committee's report makes eight recommendations to strengthen Australia's approach to negotiating trade and investment agreements, including by undertaking independent modelling and analysis of each proposed or under-review agreement; establishing a consistent approach to evaluating agreements, including conducting broader assessments of economic, social and environmental impacts; seeking to include human rights, labour and environmental chapters in agreements that, where appropriate, contain specific references to relevant international standards; seeking to not include provisions in agreements that waive labour-market and skills-testing requirements or investor-state dispute settlement, ISDS, provisions; pursuing the inclusion of provisions in agreements that protect and promote First Nations intellectual property; and establishing a legislative framework to guide some elements of the negotiation of trade and investment agreements.

The committee's final report builds on its interim report, which was published earlier this year and made five recommendations, including transparency, accountability and oversight in the process for negotiating Australia's trade and investment agreements.

I'd like to thank all the businesses, union groups, industry bodies, government agencies including DFAT, community groups and academics that provided the written submissions and appeared at our public hearings throughout the inquiry. I'd also like to thank the secretariat for their hard work on this inquiry, and, of course, I'd like to thank my fellow committee members: the deputy chair, the member for Wright; the member for Lyne, who's here as well; and other members who participated. I'd also like to thank all the witnesses that appeared before the committee. I commend the report to the House.

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