Philip Ruddock (Berowra, Liberal Party) Share this | Link to this | Hansard source

I have a substantial question for the Minister for Health, on trade. Will the minister update the House on benefits to the health sector of the free trade agreement concluded with China?

Sussan Ley (Farrer, Liberal Party, Minister for Health) Share this | Link to this | Hansard source

Can I also congratulate the Minister for Trade and Investment on successfully negotiating this momentous agreement which will have highly positive benefits for the Australian economy. As the Prime Minister and the Minister for Trade and Investment have noted today, Australia is well and truly open for business. At its core, this agreement will mean more jobs for more Australians. It will mean better access to the world's second-largest economy, an improved competitive position for export markets, more prospects for increased two-way investment and reduced costs for imports—for Australian businesses and consumers alike.

The benefits of this agreement are far-reaching, and one of the great beneficiaries in our economy is services—in particular, our world-class health sector. I come from a rural electorate and often we think of the free trade agreement in terms of agriculture, beef and primary produce. But we forget that China is already Australia's largest services market, worth nearly $7.5 billion in 2013-14. This agreement will knock down barriers to trade in services. For the Chinese economy transitioning its population into the modern world of health care, the hospital system is there but the primary care system is well and truly ripe for development, and the opportunities we have to help provide 1.3 billion citizens with primary care are pretty good. In practical terms, Australian healthcare providers will now be able to take their world-class expertise to this emerging market. They will be able to build Australian-owned hospitals and nursing homes in China—and, most importantly, train the staff to run them. This will provide major benefits to Australia and to the biotech and pharmaceuticals sector, because tariffs on these products will be progressively phased out within four years. China already imports more than half a billion dollars worth of pharmaceuticals a year, and this is a terrific opportunity for us.

I note the grim looks on the faces of those opposite and I can understand their embarrassment. The minister made nine trips to China. I know the previous mandarin-speaking Labor Prime Minister probably made a lot more, but was anything achieved? Absolutely nothing. We have concluded three major trade agreements—something those opposite could never do. We have done in one year what they could not do in six. Negotiations for this agreement started under the Howard government, stalled under six years of Labor and were concluded under the Abbott government. Again I congratulate the minister.