Lisa Chesters (Bendigo, Australian Labor Party) Share this | Hansard source

On behalf of the Joint Standing Committee on Treaties, I present the committee's report, incorporating a dissenting report, Report 225: Australia-UAE CEPA; Australia-UAE investment agreement.

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

by leave—I'm pleased to make a statement on the Joint Standing Committee on Treaties report, Report 225: Australia-UAE CEPA; Australia-UAE investment agreement. The major treaty actions considered in this report are the comprehensive economic partnership agreement between Australia and the United Arab Emirates and the agreement between the United Arab Emirates and Australia on the promotion and protection of investments. The promotion and protection of investments agreement is an integral part of the economic partnership. Whilst the agreements were discussed separately in this report, they were considered together throughout this inquiry. This report also contains three minor treaty actions for which an inquiry was not conducted.

The major treaties seek to diversify Australian trade with the UAE on over 99 per cent of exported goods—I'll repeat that, 99 per cent of exported goods. It provides for an expanding Australia-UAE investment in sectors such as renewable energy, agribusiness, tourism, health and aged care, and resources. It also provides investors with greatened certainty of access. The CEPA is Australia's first free-trade agreement with the Middle East, and it sets to increase Australian exports by around $678 million per year.

In addition to tariff removal, the two treaties provide scope for expanding Australia's UAE investment in sectors such as renewable energy, agribusiness, tourism, health and aged care, and resources. Once fully implemented, it is estimated that the agreements will increase Australian export by approximately $678 million per year. These agreements include standalone chapters that encourage environmental sustainability, women's economic empowerment, labour rights and improved animal welfare standards. These agreements are trying something new. In a first for Australia, these agreements also include standalone tractors that encourage sustainable agriculture and food systems, and trade and investment, and economic cooperation with First Nations people.

In considering these agreements, the committee held two public hearings and received a combination of 24 submissions. A range of witnesses were consulted throughout the hearings including agriculture, farming and livestock industry representatives, representatives from unions, fair trade investment industry and government agencies. The committee heard that these agreements will boost trade and investment between Australia and the UAE, which is great news for Australian farmers, primary producers and associated businesses. It will make goods and services from Australia cheaper for the UAE, making us more competitive on the global market and making Australia more attractive to UAE traders and investors.

Throughout the hearing, some issues were raised and discussed. The importance of ongoing and transparent communication throughout the consultation process has been acknowledged by the committee, as have the concerns around labour rights and human rights in the UAE. The committee noted that the UAE is undertaking a process of reform in their practices around labour rights and human rights, and believes these agreements will encourage ongoing productive dialogue on these matters. Some unions and NGOs have expressed concern about the UAE's labour laws; however, it is evident that the promotion of labour protections was a priority in the trade negotiations between the Australian government and the UAE. The UAE has agreed for the first time for a dedicated chapter covering trade and labour. This chapter establishes a dialogue to advance labour rights; promotes compliance with international labour organisation standards and enforcement of labour laws; affirms a commitment to address forced labour, including in the supply chain; supports workforce development and respect for labour rights in the digital economy; promotes public awareness of labour laws; provides procedural guarantees; and enhances cooperation on labour matters of mutual respect.

The agreements also include standalone chapters on women's economic empowerment. The UAE CEPA does not include an investor state dispute mechanism, labour market testing waiver or changes to the Foreign Investment Review Board. The committee supports both major treaties and recommends that a binding treaty be taken. The committee also supports the three minor treaty actions that have been included in this report.

I would like to thank everyone who has been involved in this inquiry for their time, honesty and participation. Thank you for your valuable evidence. I would also like to thank the secretariat for working to get this done over the summer break. On behalf of the committee, I recommend the report to the House.

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