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

Last night I thought I would have the opportunity to get up and speak in this debate on the Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015, but I did not. But I did get the chance to hear from other participants. There have been a number of people who have participated so far in this debate, and I have to say that I am very disappointed that government members—backbenchers and ministers—have not apologised to people on this side of the House. They have not apologised to the Leader of the Opposition, they have not apologised to the union movement and they have not apologised to the many, many working people who have raised legitimate concerns about this agreement and the impact that it will have on local jobs. I call on them to apologise because they are the people who stood up time and time again in this parliament and in the public arena and made accusations against people for calling for safeguards to protect Australian jobs. They accused us of xenophobia. They accused us of racism. Yet what we saw yesterday and what we see today is the government agreeing to sensible safeguards to protect Australian jobs.

It needs to be said loud and clear that if you stand up to protect Australian jobs it is not racism, it is not xenophobia. That is just the government's scaremongering, and it is good to see that they are starting to back down on that rhetoric because that rhetoric is dangerous for two reasons. The first is that it diminishes the genuine racism and xenophobia that is going on in our community. It is the case in Australia at the moment that we have to tackle racism and bigotry head-on. We should not be using it as a throwaway remark to scare people in a debate that, at the heart of it, is about jobs.

I am glad the government has agreed to Labor's amendments. This will ensure that this legislation goes through with safeguards in place to protect Australian jobs. The government also has not been truly honest with the Australian people about how many jobs this agreement will create. They like to throw around the word 'jobs'—it is going to create 'jobs'—and they continue to say that word. But what we have discovered, and what the evidence is saying, is that it will create some jobs but not the hundreds of thousands that this government is claiming. The minister and the members of the backbench are out there saying, 'This agreement will create hundreds of thousands of jobs.' That is simply not true. At least be honest with the Australian people about how many jobs this agreement will create. The minister, in the other place, has already been forced to back down and correct the Hansard. What she claimed was that these three free trade agreements combined would create 178,000 jobs. It is not true, and the minister has, to her credit, corrected the Hansard record. On Tuesday, 13 October, she said:

I have since been advised that the methodology was inaccurate.

Can we really trust a government that cannot even get something as simple as that right? How inaccurate was it? They misread the table. They added up every year to come to that bogus figure of 178,000 jobs. What they did not do was read the paragraph up the top of the table that said that in 2020 there would be 14,566 more jobs if the FTAs were implemented compared to what would have been the case if they were not. That is all.

Let's just put that figure into context. This government has already sacked 16,000 public servants. Last month alone 13,000 full-time jobs were lost. For all the rhetoric saying that these free trade agreements will be the silver bullet to create jobs in this country, it has turned out to be nothing more than an overinflated, ambitious claim by this government. There is to be 14,566 more jobs by 2020. To put that into context, this government has already sacked 16,000 public servants, and last month's figures alone show that 13,000 full-time jobs were lost. What we do not know is what kind of jobs these agreements will create—full-time jobs or part-time jobs. What we also do not know is who will work these jobs, which is why these safeguards were so critical.

We hear time and time again how critical this agreement is for industries that this government is the champion of. This includes agriculture, and it is a good deal for agriculture—for the businesses in agriculture, for the people who might make profits in agriculture. But without Labor's amendments there was no guarantee that regional Australians would share in that opportunity and that they would get the jobs. Right now, who works in agriculture in the dairy industry? There are 40,000 people working in dairy, yet dairy is now on the 457 visa list. Dairy relies on overseas temporary workers. In the agriculture industry, horticulture relies on overseas temporary workers. The beef industry, the food processing industry and the seafood industry—all the industries that this government says will benefit from these agreements, and they will—rely on overseas workers.

Yet this government was not willing to put the safeguards in place to ensure (1) that those overseas workers were paid Australian wages and conditions, (2) that they would be protected from exploitation and (3) that we would only go to an overseas worker if there was not a local worker available. Labor's amendments ensure we have the safeguards in place so that locals can get the opportunity of these agreements. Labor's amendments ensure that people in Australian jobs are protected and that Australian people will get the first chance at these jobs that are created in the agriculture industry and the financial services industry across our economy.

This government does not care about local people and giving them the opportunities. If they were serious about creating jobs in our economy, they would have had these safeguards in the beginning. They would have listened to the concerns of the union movement and listened to the concerns of the Labor Party and they would not have stood up here in question time and accused us of some quite shocking things which just simply were not true. Labor's agreement around safeguards will ensure that there is labour market testing. A new legal requirement in the Migration Regulations will require labour market testing for all work agreements. So this is not just good for this free trade deal; it is good for all the deals. People need to know that if there is a skills shortage it is a genuine one.

Weekly, if not daily, we hear reports in the media about worker exploitation. The Fair Work Ombudsman is working overtime to ensure that we are prosecuting exploitation. We need to ensure first and foremost that, if there is a local job created, it gets offered to a local worker first. Labor's safeguards will also uphold Australian pay and conditions, through a better wage system for 457 visa workers. How? A new legal requirement that the market salary for a standard 457 visa holder will be used in enterprise agreement rates as the salary benchmark. That is critical to ensure that workers in similar industries are being paid the Australian rate of pay, not some made-up rate of pay with the award at a minimum.

We will also ensure through the safeguards that the temporary skilled migration income threshold is to be reviewed to make sure it is in line and it is a benchmark. What will also be required as a result of Labor's safeguard amendments, which the government has agreed to, is the maintenance of Australian skills and safety standards, to ensure foreign workers have the relevant licence under Australian law. This is critical. All of you in your offices would have seen the letter that was signed by the Minister for Trade and Investment that declared the industries where the skill assessment would be waived. It was doing the rounds of social media and it created a lot of anxiety within the community. But now the government has agreed to Labor's amendment which will ensure a new legal requirement that 457 visa holders in the trade occupations must obtain a licence within 90 days of arriving here on that visa, will not work without holding the licence and will notify the department of immigration if a licence is refused or revoked. These conditions will be written into the migration regulations.

These are the critical safeguards that Australians wanted to see to ensure that, when you work in the trades in Australia, you have an Australian qualification. When somebody comes here as a 457 visa worker, they will be required now to demonstrate that they have those skills. Australia has some of the best safety records in the world, some of the safest workplaces, and our tradespeople work really hard to get their qualifications. It is wrong to have a situation where someone from overseas can come in and not be required to meet that same bar. These safeguards ensure that that situation will not now happen. That is why this government needs to be really honest. It is great that it has finally, after month and months, understood the concerns of the Australian people, the concerns of the union movement and what we have been saying from the Australian Labor Party. There is no point to a free trade agreement with any country if it does not deliver for all Australians. The free trade agreement should not just be about profits and about ensuring exporters get a better deal when their product goes into China. It should also be about spreading that goodwill, that opportunity, to all Australians. Without these safeguards in place that the government has agreed to, we could not guarantee that that would happen.

In my electorate, which is a regional electorate, this has been an issue where the government divided the community—winemaker and farmer versus the tradies. It divided the community because one group was saying, 'Why should someone come here and work in our industry without having my qualification?' and on the other end the government was saying to the farmers, 'You've got to back this deal in because it is going to be good for tariffs.' That is what this government did. What we have been able to do, because the government has agreed to our amendments, is bridge that so now the tradies are safe and our winemakers and our farmers will actually benefit from the changes that we have got going forward. I am glad the government has seen the error of its ways and has agreed to Labor's amendments.

Bruce Billson (Dunkley, Liberal Party) Share this | Link to this | Hansard source

It is a brand-new day, full of delicious possibilities—and they have got better. Those possibilities for our nation, for our small businesses, for men and women looking to pursue economic opportunities, have got better because today we will be passing the ChAFTA legislation: the Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015 and the Customs Tariff Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015. This is the legislation that will bring into law the changes to the excise and tariff regimes negotiated skilfully and with great wisdom by the free trade grasshopper, the wise one, Andrew Robb, who now has the quadrella. The wise one has worked his way through the North Asia free trade agreements. He has now got the TPP underway. I would like to add one more. We need to get an agreement quickly with Hong Kong to complement the ChAFTA, because, for many Australian businesses, entry into the Chinese market is a wonderful opportunity, but the sort of expertise and capital to deal with this vast market may well be accelerated and supported by a very close economic relationship with Hong Kong. I was pleased to talk with some of their ministers in my previous role, from my previous vantage point in this chamber.

But today is a great day. Never before has there been such a great opportunity to expand markets. Those of us who have any feel for business know that there is no substitute for customers. You can have the greatest business plan, the greatest ideas, the greatest team, but if no-one is buying your goods or services or taking advantage of your know-how or seeking to include your input in their goals then that great business model will not achieve its potential. What it needs is customers, and this agreement—in fact all the North Asia trade agreements—opens the door to new markets of over 1½ billion people. This puts our home-grown businesses in the box seat to take advantage of these market opportunities.

Never before has there been a better chance for us to showcase the array of excellence in our economy: our world-class food; our wines; our boutique beers—and I know Mornington Peninsula Brewery is leading the charge in that respect; our products; and our know-how, where China are looking to take advantage of and engage our knowledge, our systems, our wisdom and our experience to improve economic outcomes for themselves, which, in turn, will improve economic outcomes for our economy. Services is a wonderful story—70 per cent of our domestic economy but only 17 per cent of our export income. There is enormous growth potential. That door has been opened wide, giving us the inside running to take advantage of these new markets.

It is also important to realise that the vast majority of exporters are actually small and medium enterprises. Ninety per cent of all of our exporters are SMEs. That is by number, but by value their contribution is only around five per cent of our export earnings, so again there is an enormous opportunity there to increase the engagement of SMEs in these economies.

What is terrific is that we are talking about a China-Australia Free Trade Agreement and having it passed in this place and having it not changed one dot. It has not changed at all. For all of those robocalls that the union put into my electorate, which caused great concern and fear amongst my constituents, I was happy to respond to with some factual information of—newsflash—this agreement has not been changed. The agreement stays as it was. So all of the fearmongering and race based condemnation of a wonderful market opportunity for our country proved to be nothing. It was a mountain of noise with no content. This agreement will pass this parliament unchanged.

What is interesting though is that we have just heard the member for Bendigo give a quite passionate condemnation of her own colleague the member for Gorton. Why was the member for Gorton so derelict in his responsibilities when he was the migration minister? He put in place all of the regime around market testing and benchmarking against Australian wages. He had all of that validated by procedure and policy, by systems and requirements. That seemed perfectly satisfactory to Labor when they were in office but now, when they are in opposition, these are an abomination, these are malfeasants, this is a poor effort to bring into effect the migration system that supports the movement of labour and skills to make sure our economic potential and our economy is met. So what we have seen is the government agreeing to codify, pretty much, what was put in place by the member for Gorton, which has been roundly condemned by his own party. That is interesting. It will be interesting at the O'Connor family Christmas dinner as the conversations play out between brothers about how all this works.

The thing to focus on is that this is a wonderful opportunity for our economy. I will explain this simply for the member for Bendigo, who could not quite see how trade equals jobs. Trade equals new markets and new investment. Those new markets and those new investments lead to increased economic activity. The horsepower, the skills, the wisdom, the knowledge and the talents to take advantage of that economic activity and give it meaning and turn it into higher incomes and prosperity for the future are jobs. That is people, that is improved prospects for livelihoods and better incomes.

There is so much more I would like to say, but I am keen for my colleagues to also have the opportunity to contribute to a great success today. What I would say to Australian men and women of small business and family enterprises is: engage with this opportunity. We have a better opportunity than any other country at this time. The door is open for us. We can get into that market first. Those opportunities are not reserved for us. We need to make them our own. We need to grab those opportunities. This is no summer romance. It is not a matter of spending a few weeks in China in the sun and going home with happy experiences, smiles and suntans. There are no walk-up markets and customers waiting for us. We have to win those opportunities. That is why the rest of the government's economic reform agenda is so important. That is why our mission to energise enterprise is at the heart of turning this outstanding diplomatic trade negotiation agreement into better outcomes for our economy and our citizens. I reckon enterprising men and women are up for that challenge. Great potential is within their reach.

Chris Hayes (Fowler, Australian Labor Party) Share this | Link to this | Hansard source

On 17 June 2015, and to much fanfare, the coalition government signed the free trade agreement with China. Whilst I acknowledge the agreement will deliver significant benefits to Australian exporters and consumers, I am sure the government could have secured a better deal, particularly when it came to protecting Australian jobs. In fact, the deal signed off by the Liberals flies in the face of what we would normally consider to be the benefits of a free trade agreement. For most of us trade is the cornerstone to economic growth and also to job creation and, for our benefit, Australian jobs. On face value the government's deal, not only could put employment opportunities for Australian workers in jeopardy, but there is a real risk of undermining workplace standards while offering an open-door policy to temporary overseas workers.

For instance, the government agreed to an investment facilitation agreement, which is a provision that allows Chinese investors, in projects valued at over $150 million, additional rights to bring in temporary migrant workers under Australian migration programs without giving preference to Australians. Specifically, the agreement says that entry and temporary stay for foreign workers can be granted for up to four years and possibly longer for contractual services supplied from China. While the government claims very much to the contrary, the fact is that the agreement clearly states that Australia will not impose or maintain any limitations on the total number of visas to be granted or require labour-market testing, economic-need testing or other procedures of similar effect as a condition for temporary entry.

In a similar vein, the Liberal government also agreed to an investor-state dispute settlement provision, which is a provision that Labor has always said it would never include in a free trade agreement or treaty, given particularly the implications that arise in implementing domestic legislation or ongoing legal implications for both state and federal governments and government owned enterprises. Having said that, Labor has always recognised the significant economic position arising from a free trade agreement with China. Providing improved access to Chinese markets for exporters, particularly in agriculture, mining, resources, manufacturing and services is, unquestionably, a good thing.

While China is already our largest trading partner, I acknowledge that the free trade agreement will enhance our economic relationship with China. While there is bipartisan support for a free trade agreement with China, the reality is that bipartisan support for ChAFTA has only occurred following Labor's successful negotiation in implementing a number of amendments to underpinning provisions to tackle what we believe to be significant shortcomings and, importantly, providing appropriate safeguards for Australian jobs, wages, workplace skills and safety standards.

This could have and should have occurred earlier but for the government's intractable position. The safeguards negotiated and now agreed to will significantly improve the free trade agreement with China. The safeguards will, firstly, require labour market testing for all work agreements; secondly, require a market salary rate for standard 457 visas to use and require 457 visas to reference enterprise agreement rates where they exist, in respect to wages benchmarks; and, thirdly, require the implementation of more stringent visa conditions for 457 workers in trade occupations.

These are good things and these are things that will certainly create a greater degree of confidence in entering into a free trade arrangement with China. There is no doubt these safeguards will support employment opportunities for Australian workers by requiring prospective employers to demonstrate a skills shortage and genuine need to access temporary skilled migration, as jobs cannot be filled by local workers. With the changes proposed to regulations under the Migration Act, it will require the Minister for Immigration and Border Protection to have regard to whether the work agreements entered into will support or create jobs for Australian jobs down the track. In doing so, the minister will also have the power to impose additional conditions in these agreements to ensure they have a positive impact on Australian jobs.

Another area of significant concern about the free trade agreement with China is the specific removal of mandatory skills assessments for Chinese workers in various trades, including carpenters, mechanics and electricians. Mandatory skills assessments are used to determine whether a worker has the necessary skills and experience to work in particular occupations in Australia. Through Labor's efforts, an agreement has now been reached providing for a new visa condition for workers on 457 visas, which will require the evidence of occupational licenses within 90 days to ensure that applicants possess the requisite skills and experience. Alongside that, Labor has also negotiated the appropriate indexation of the temporary skilled migration income thresholds. These changes will all benefit the appropriate consideration of temporary workers coming into the country.

There is no doubt that, in its current form, the provisions of the China-Australia Free Trade Agreement would not have been signed off by the Labor Party. However, Labor is determined to expand and deepen our economic relationship with China, we are determined to create more opportunities for Australia for now and into the future and we are determined to ensure that the benefits of trade flow to our communities in the form of higher growth, more jobs and better living standards.

In that respect, I believe that the Labor provisions negotiated with the government are not only complementary to the China-Australia Free Trade Agreement but also significantly enhances its operations. But importantly, these changes will address real concerns held by the community, particularly in respect to Australian jobs. Having said that, I support the passage of this legislation.

Ian Macfarlane (Groom, Liberal Party) Share this | Link to this | Hansard source

I thank the member for Fowler and the members on both sides of this chamber for their comments in relation to this bill. I congratulate the Minister for Trade and Investment, Andrew Robb. He has done an extraordinary job on this free trade agreement, as he has done on the three previous free trade agreements that he has negotiated. He is someone who will leave a legacy in this place that will be indelible. I also thank Senator Wong for her cooperation and negotiation in the deliberations. I have had negotiations in previous lives with Senator Wong, and she is a fair but hard negotiator. It is no surprise to me that she has brought about a compromise.

We all know the statistics and the opportunities in relation to this free trade agreement. Thousands, tens of thousands and, in time, hundreds of thousands of jobs will come from this monumental agreement for the Australian people that we represent. We all come to this place to make Australia a better place. We do not always agree on how we should do that, but we come with that as our basic instinct as we enter this House and this parliament. This is an agreement that will create jobs right across Australia.

My passion has always been regional Australia. I represent the largest inland provincial city in Australia and the rich agricultural area that surrounds that city. When I look at this free trade agreement, I see the gains in dairy, beef, horticulture and even sheepmeat; we have a few sheep farmers and feedlots in my electorate. Then I look at the resources sector, which I was so proud to represent for so long. I look at the coal industry, the oil and gas industry, the copper industry, the lead industry, the zinc industry, the aluminium ore industry, the alumina industry and the lead industry. The things that have made regional Australia great, like agriculture and mining, are the big beneficiaries out of this.

But there is much more, because there is the produce that flows from those regions—particularly the agricultural produce—that is then processed here in Australia and exported to China, which is a market that is hungry for high quality, clean and reliable product. It is there for the taking, so this free trade agreement offers those opportunities. I have two major abattoirs in my region. I have third that is under consideration and potentially a fourth. They are all looking to China for opportunities. I have the most recent and first privately built airport in my electorate, which is soon to have 747 access direct to China. As a result, we will see our region—my electorate—really pick up and prosper from the things that this free trade agreement will deliver for us.

As well as jobs, there will be confidence: confidence that you can make an investment in Australia and hook into what is an enormous supply chain of customers waiting for your product. There is a lot to be gained from this for Australia and there is a lot to be gained from this for China. It continues that long relationship we have had with China where we do things that are mutually beneficial for both countries; but there are some great benefits in this for our country.

I would like, in the short time that I have, to draw people's attention to some of the quotes that have been made by people who represent industries in my electorate or in the resource sector as a whole. Cotton Australia says that the agreement would 'deliver important tariff cuts that would greatly benefit cotton growers and the communities'. For my cotton growers out in the Brookstead plain and to the west of Toowoomba, it is another great opportunity.

Lance Hockridge of Aurizon says that for the coal producers—and I have a coalmine in my electorate—the ChAFTA will bring 'much needed relief to the Australian coal sector by eliminating Chinese import tariffs on Australian coal'. As a minister, I held discussions with Chinese ministers to try and bring that about. The Minister for Trade and Investment has delivered on that in spades.

As an old executive member of the National Farmers' Federation, I am very pleased to see the opportunities that come from this. Their President, Brent Finlay, said that any delay in the ratification of this agreement would cost potentially $100 million for the beef industry, $60 million for the dairy industry, $50 million for the wine industry and $43 million for the grain industry. The list just goes on and on. All those gains will now be realised as a result of the passage of this legislation.

Looking at the resource industry and the big exporters like the iron ore industry, Nev Power from Fortescue Metals said the China-Australia FTA is 'an important plank in encouraging business investment and the jobs and the community development that will follow'. Anyone who thinks that this free trade agreement is in any way detrimental to jobs does not have a realistic understanding of what this will create for us. It will create, as I say, thousands, tens of thousands and, in time, hundreds of thousands of jobs based on investment, based on sales from Australia to China and based on the development of more industries and highly sophisticated industries. That is an opportunity that we need to grab with both hands.

Andrew Mackenzie of BHP Billiton said:

As a nation we rely on access to foreign markets to grow our economy.

Not a truer word was ever spoken. Whether it is in agriculture or in resources, we are a country that produces far more than we will ever consume with our modest population. As someone who has been a farmer for much longer than a politician, can I tell you we produce about four times as much as we consume at the moment, with the potential to even increase that. Markets like China and the other countries covered by free trade agreements are countries we need to look to to grow our customer base. That was highlighted by Mr Takahashi, Chairman of Mitsui Australia, when he said:

Australia has been offered a unique competitive opportunity through the China Free Trade Agreement that it should not miss … It is an important fact that China has not made agreements with any other countries that compete with Australia in beef or iron ore or raw materials and other things like that—

to the standard of this free trade agreement.

The closing quote I would like to use is from Mike Smith, the CEO of the ANZ Bank. He said:

To be clear: this agreement means more to Australia's future than any other of our Free Trade Agreements.

That really says it all. This is an enormous opportunity for Australia. It is an opportunity that I know, having grown up in regional Australia, having represented regional Australia in this House for 17 years, regional Australia will grab with both hands and continue to build this nation into the unique and great nation that it will be in the future.

Melissa Parke (Fremantle, Australian Labor Party, Shadow Assistant Minister for Health) Share this | Link to this | Hansard source

As a member of the Joint Standing Committee on Treaties, I have a reasonable familiarity with the terms of ChAFTA and contributed to the dissenting report by Labor members that was tabled along with the report of the majority of the committee on Monday. I certainly support the amendments that are being debated here today, as they improve aspects of the operation of the agreement with respect to the necessity of labour market testing in relation to IFAs granted under the MOU with China. I remain concerned, however, about a number of aspects of ChAFTA that the amendments do not address.

Before talking about those matters, I note that there have been claims from the government that criticism of the agreement from the opposition, unions, academics and community groups are motivated by racism against China. Such claims are offensive. As my colleague the member for Wills detailed in his speech on the bill yesterday, this agreement goes further than any previous FTA in excluding labour market testing. There is also a distinct lack of balance in the agreement. As AFTINET's submission to the JSCOT inquiry notes:

Almost all Australian tariffs are reduced to zero, but Australia's market access to Chinese markets is much more limited, with selected gains for some farm products and service industries.

Furthermore, an MOU accompanying the agreement provides that Australia will issue young Chinese with 5,000 work and holiday visas each year, but there is no reciprocal right for young Australians to work in China.

I note that the Productivity Commission heavily criticised Australia's pursuit of FTAs in a 2010 report that recommended future agreements first undergo an independent cost-benefit analysis. The commission pointed to a lack of transparency and a lack of rigorous assessment of the provisions in recently signed agreements.

I would now like to turn to some of my other concerns about the agreement—firstly, the removal of labour market testing under chapter 10 of the agreement itself. Without amending the text of the treaty, this aspect of the agreement remains problematic, as it prevents Australia from imposing a cap on the number of Chinese 457 visa holders. As Dr Joanna Howe has noted in her paper, The impact of the China-Australia Free Trade Agreement on Australian job opportunities, wages and conditions:

This means even if the Australian Government wished to constrain the number of 457 visa holders more generally because local unemployment was high or to reflect changing economic circumstances, it could not do so with respect to Chinese citizens … The absence of a cap means that Australians employers can engage unlimited numbers of Chinese citizens on 457 visas.

This is completely contrary to the very purpose, the raison d'etre, of the 457 visa program, which is to meet skills shortages in the domestic labour market.

Secondly, it is clear that there is a lack of enforcement of requirements in the present temporary migration system, as evidenced in recent investigative reports by Monash University and ABC Four Corners reports which have exposed the exploitation of temporary migrant workers in agriculture, food processing, 7-Eleven convenience stores and other industries. It is significant that the government majority report of JSCOT also noted this problem and made a recommendation that government boost resources to the department of immigration to enable appropriate oversight in this area. The fact that this has been necessary only highlights the deep flaws that already exist in the present system, without adding unlimited Chinese migrant workers to the mix. The potential for exploitation of these workers is a significant risk under ChAFTA.

Thirdly, there is the issue of mandatory skills assessment. The side-letter to ChAFTA removes the requirement for mandatory skills assessment for Chinese workers in such trades as electricians, carpenters and mechanics. A number of my colleagues have canvassed this issue more widely, and I will leave it there.

Fourth, as with our FTA with Korea, the ChAFTA also contains ISDS provisions, which constitute a fundamental derogation of a country's sovereignty. ISDS clauses allow foreign companies to sue governments in private international tribunals for laws, policies and court decisions impacting upon their profits—for instance, health, environmental and labour regulations; food labelling or quality and safety standards. The presence of an ISDS clause was why the former Labor government was not prepared to sign an FTA with Korea.

The Philip Morris tobacco company is using an ISDS clause in an obscure Hong Kong-Australia investment agreement to sue the Australian government in relation to our plain-packaging reforms, despite the laws having passed the parliament with bipartisan support and having been upheld in our own High Court. Even if Australia ultimately wins the case, it will have to pay its own legal costs of millions of dollars, that so far have amounted to $50 million.

Australians might be surprised to know that these cases are not heard by respected independent panels of judges but by panels of corporate lawyers who can be advocates for multinationals one day and panel members adjudicating cases the next. Their decisions are not transparent, they apply no precedent and they cannot be appealed.

Juan Fernandez-Armesto, an arbitrator from Spain made this observation: 'When I wake up at night and think about arbitration, it never ceases to amaze me that sovereign states have agreed to investment arbitration at all. Three private individuals are entrusted with the power to review, without any restrictions or appeal procedure, all actions of the government, all decisions of the courts and all laws and regulations emanating from parliament.'

The Chief Justice of the High Court, Robert French, gave a speech last year in which he raised concerns about ISDS and its implications for Australia's judicial system. He referred to the case of Eli Lilly, the US pharmaceutical giant that sued Canada under ISDS after the Canadian Supreme Court ruled two of its medicine patents invalid. The chief justice quoted Professor Brook Baker of Northeastern University law school's assessment of that case:

After losing two cases before the appellate courts of a western democracy should a disgruntled foreign multinational pharmaceutical company be free to take that country to private arbitration claiming that its expectation of monopoly profits had been thwarted by the court's decision? Should governments continue to negotiate treaty agreements where expansive intellectual property-related investor rights and investor-state dispute settlement are enshrined into hard law?

The United Nations Independent Expert Alfred de Zayas recently raised serious concerns about the inclusion of investor-state dispute settlement clauses in free trade and investment agreements, saying:

In the light of widespread abuse over the past decades, the Investor-State Dispute Settlement mechanism, which accompanies most free trade and investment agreements must be abolished … because it encroaches on the regulatory space of States and suffers from fundamental flaws including lack of independence, transparency, accountability and predictability …

Nobel laureate for economics Professor Joseph Stiglitz has said this is a 'new private judicial system, only available to foreign corporations.' It is notable that ISDS may not be used by governments, civil society or domestic companies. I note that the Productivity Commission also raised ISDS as another reason why these agreements are of dubious benefit to nations.

Some more recent trade agreements have attempted to improve ISDS processes. For instance, the Korea-Australia Free Trade Agreement requires ISDS hearings and documents to be made public. However, such improvements have not been included in ChAFTA. Moreover, important matters, such as the definition of indirect expropriation and the minimum standard of treatment of foreign investors, are not complete and have been delegated to a committee to review in three years time. The Labor members of the treaties committee noted that this foreshadowed future review may present an opportunity for wholesale revision of the ISDS mechanism under the agreement.

Fifth, unlike KAFTA, ChAFTA does not contain chapters on labour and environment, which means neither government has made any commitments not to reduce labour rights or environmental standards, nor to implement ILO rights or international environmental agreements. AFTINET noted in its submission to JSCOT that China is listed as one of the world's 10 worst countries for labour rights. Recent strikes and protests by Chinese workers have been met with police repression. Violations occur not only in locally owned enterprises but in those under contract to global corporations like Apple and Walmart. Thus, it says, ChAFTA, in effect, 'rewards violations of labour and environmental standards by granting preferential market access to Australia' for goods produced under these conditions in China. And there is no mechanism to ensure that imported products are of an appropriate standard. The Australian Industry Group in October last year reported that a survey of its members found that many manufactured goods coming from China do not meet Australian safety and quality regulations, including dangerously faulty electrical cables which could have affected up to 40,000 homes and businesses.

Sixth, given the recent imported frozen berries scandal, it is also extremely concerning that, while KAFTA excludes ISDS from application to such matters as the technical barriers to trade chapter which includes food labelling, ChAFTA does not. The DFAT officers at the JSCOT hearing stated that this was because in ChAFTA ISDS only applies to the investment chapter and not to any other chapter. I have not been able to verify that this is the case, but I certainly hope so.

In sum, I support the amendments being introduced today that will improve the outcome for Australian workers, and I congratulate Labor's shadow ministers on this achievement. However, as I have set out, I have a number of concerns that remain, and I hope future Australian governments will ensure that there is an independent assessment of such agreements before they are entered into.

Tony Pasin (Barker, Liberal Party) Share this | Link to this | Hansard source

I rise today to support the Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015. China of course is Australia's largest trading partner. It buys almost a third of all of our exports, valued at over $98 billion—or at least it did so in 2014—and is our top overseas market for agriculture, resources and services. China is set to remain our largest trading partner long into the future.

The China-Australia Free Trade Agreement will take this essential trade relationship to a new level. This is truly a landmark deal for this nation. Independent economic modelling shows that Australia's FTAs with China, Japan and Korea will together add $24.4 billion to the Australian economy over the coming 20 years. This agreement will deliver unprecedented market access for Australian businesses and producers into China, the most populous nation on Earth and the key driver of the global economy.

My electorate of Barker in South-East South Australia is one of the most productive agricultural regions of Australia and one of the nation's most important food manufacturing electorates. This trade agreement will deliver a new era of prosperity, particularly for our agricultural and food manufacturing sectors. Few electorates are as well positioned as mine to take advantage of this deal. From the Limestone Coast in the south to the Riverland of the north, from the Barossa to the striking plains of the Murray lands and the Mallee, some of the best agricultural produce on earth is cultivated in Barker.

The government has already delivered constituents in Barker unprecedented market access to Japan and Korea, but now we have also delivered to them a world of opportunity in China. The coalition government pledged to open up Australia for business and today is a critical moment in that commitment. This bill delivers on that commitment. It is because of the actions that this government has taken that children in Shanghai will taste quality South Australian beef and lamb grown by livestock producers at Lucindale, Meningie and Lameroo. Because of the coalition, 12 to 25 per cent tariffs on beef will be eliminated within nine years and tariffs of between 12 and 23 per cent on sheep meat will be removed over seven years. Women in Beijing will wear garments made of the fine wool from the Mallee, where producers will receive an exclusive duty-free quota into China of 30,000 tonnes from day 1 of the agreement, growing to over 44,000 tonnes by 2024.

Because of the actions that the government has taken, the fine wines fermented from succulent wine grapes grown in the Barossa, Coonawarra, Padthaway and Riverland will adorn the tables of middle-class China. Tariffs of between 14 and 20 per cent on wine will be eliminated over four years. It is because of the actions that the government has taken that live southern rock lobster caught in the turquoise waters of Port Macdonnell, Robe, Beachport and Kingston will be consumed in Shenzhen and Nanjing. This will be the first time that these exports will be delivered officially or legally to these countries. There will no longer be the grey trade in that industry. Huge tariff reductions across other seafood sectors will deliver great gains for fishermen in Barker. Within four years, a 14 per cent tariff on abalone will be eliminated and a 12 per cent tariff on fish will be eliminated. It is because of this agreement that our fresh, clean and sustainable seafood industry will receive the shot in the arm it needs to level the playing field in the Chinese market for good.

Due to the China-Australia Free Trade Agreement, fruit and vegetables grown on blocks along the Riverland will nourish the world's most populous nation. Measures this government is enacting will deliver enormous tariff reductions of up to 30 per cent. The horticultural sector is one of the biggest agrisectors in Barker and also one of the biggest winners in this agreement. Almond, walnut and pistachio orchardists will see tariffs eliminated over four years. I remind the House that the nut sector is the fastest-growing agricultural export sector in the country. Citrus, a key export from Barker, will see tariffs of 12 per cent reduced over eight years. ChAFTA not only will deliver economic prosperity but will deliver healthy food to millions.

This agreement will underpin long-term prosperity in the dairy sector. Tariffs of up to 20 per cent will be eliminated progressively. Milk from Australian cows will feed the next generation of Chinese children because of this government. Ice cream made from South Australian milk will ease hot and humid days in Bejing. Infant formula will be used by mothers across China, and cheese and butter produced with Australian milk will fill the fridges of millions because of this government's actions. It is because the government is acting in the best interests of our nation and not that of the unions that the forestry industry can be assured that we have locked in zero tariffs on Australian woodchips. Under ChAFTA, China's tariffs of up to 20 per cent on Australian forestry products made from radiata pine will be phased out over four years. This is a huge win for Barker, which of course is one of the nation's forestry hubs. I am proud to say that my constituents produce some of this nation's finest grains, vegetables, fruit, timber, meat and dairy. We have some of the finest wines and wine grapes in the world.

Nick Champion (Wakefield, Australian Labor Party) Share this | Link to this | Hansard source

Hear, hear! They certainly do.

Tony Pasin (Barker, Liberal Party) Share this | Link to this | Hansard source

I am glad the member for Wakefield and I agree on one thing. Yet it is simply not enough that we produce the best-quality produce if we do not have market access. For too long, the hardworking and industrious residents of the Barossa, the Riverland, the Mallee and the Murray land in the South-East have run into tariff barriers. For too long, unnecessary tariffs have halted economic development in this nation. For too long, tariffs stood as immovable barriers to the free flow of trade in our region. Well, I say: bring down that wall. Let the enterprise and industry of the residents of Barker be rewarded with the prosperity they so deserve. The government fundamentally values individual enterprise and it is time to obliterate the arbitrary constraints these tariff barriers have imposed on our agriculture and food manufacturing sectors. It is time for Australia's farmers and food manufacturers to seize the opportunities presented by the rise of China.

Since the day the residents of Barker elected me, I have worked tirelessly to further their interests in this place. I cannot think of a more transformative achievement for the constituents of Barker than the finalisation of the China-Australia Free Trade Agreement. This is a deal that embraces the 21st century. I commend the efforts of the Minister for Trade on his industrious pursuit of better outcomes for all Australians. I encourage each and every Australian out there to make the most of the opportunities that this deal affords them. I commend the bill to the House.

Jill Hall (Shortland, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak on the Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015 and related bill. In doing so I would like to congratulate the shadow minister for trade and the Leader of the Opposition for the work that they have done in making this a piece of legislation that I can vote for. It is important to note that China is already Australia's No. 1 trading partner, and the legislation before us should see that relationship grow even stronger. This does deliver benefits to Australia. Consumers should see cheaper prices with the five per cent tariff on Chinese manufactured products, such as electronics and whitegoods, being phased out. Tariffs on various Australian commodities will be lowered and tariffs of between 13 to 14 per cent on various manufactured exports will be eliminated over four years. It also delivers benefits to the agriculture sector. It has a number of benefits in the long term.

It is important to note that China would not have entered into a free trade agreement if it did not deliver significant benefits to China. Members on the government side of the House have not been particularly constructive in their approach to this legislation. Initially, there was hoo-ha from those on the other side of the House to the concerns we had about the impact it would have on Australian workers and their jobs. It was put to the people of Australia that our objections were not based on the desire to protect Australian jobs but rather on some form of racism. I find that abhorrent. I still have significant concerns about the way the legislation will impact on Australian workers and their jobs. But I have a Chinese daughter-in-law and I have extended family in China. I very much support a strong relationship between Australia and China, but I do not support the fact that Australian working conditions and jobs will be impacted upon by this legislation.

Even with the changes and the agreements that have been reached by the shadow trade minister and the Leader of the Opposition I still have serious concerns. There were some concessions around labour market testing, and the amendments that we sought are now regulations. I hope that a future Labor government will revisit this and strengthen the agreement, because it is still quite weak in a number of areas.

The other area I have real concerns about is that of investor-state dispute settlements, ISDSs. We always have to protect our country, so any agreements entered into should not have these clauses included in them. Former Prime Minister John Howard would not enter into any agreements with ISDS clauses in them. When Labor was in government we did not enter into any agreements with ISDS clauses in them. Why? Because it allows companies to take the Australian government to public international courts to settle disputes. It jeopardises our sovereignty. Australia can be taken to an international court by a company. That is very visibly demonstrated at the moment, where Philip Morris has taken Australia to an international court over the legislation dealing with plain-packaging on cigarettes. It is putting the power of a company over and above the power of a nation. I do not think we in Australia should settle for that. It has the ability to impact on our right to protect our environment. It has the potential to impact on the safety and quality standard of goods coming into our country. This is a very important issue. It is one that is dear to the heart of many Australians. It is something that, once it is included in an agreement like this, has the effect of impinging on Australia's sovereignty. Unfortunately, the government would not budge on this particular issue, but it is an important one. It is an issue that goes to our sovereignty and it is an issue that is not transparent.

I support the legislation that has been put before the parliament, with the amendments the opposition has argued for. I do have some reservations about the issue of ISDSs and the impact it will have on our sovereignty, on our ability to determine what happens in our country, and on the impact it will have on Australian laws. Also, I still have concerns about issues relating to Australian workers.

I once again congratulate the shadow minister for trade and the Leader of the Opposition for their great negotiating skills, and I congratulate the government for actually negotiating with Labor, even if it is at a very late stage after a lot of noise and abuse took place in the early stages. Good government is about negotiation and about getting a good outcome. We have an outcome here that is at least a beginning, and we can start working on it into the future.

Bob Baldwin (Paterson, Liberal Party) Share this | Link to this | Hansard source

I rise with pleasure to speak on the Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015 and the Customs Tariff Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015. These bills and this agreement build this nation's opportunities for the future. I hear all the fear factors that have been put forward by the opposition on this free trade agreement, yet where were their concerns when they were developing free trade agreements in the six years that they were in government? Where was their opposition to the free trade agreements that were brought to fruition by this coalition government? The rules and the opportunities are exactly the same. One could argue that their opposition has been somewhat xenophobic, yet this same Labor opposition much heralds Gough Whitlam's approach to China many years ago with Mao Zedong in opening up opportunities for Australia.

We should not fear this free trade agreement; we should seize the opportunity with both hands. We need to make the most of this opportunity because, clearly and abundantly, if we do not, others will. China is the fastest-growing economy in the world. As people transition from low incomes through middle incomes to high incomes in China, their demands will only increase. We in Australia have the opportunity to supply those markets. The demand for clean, green food in particular is rising at an exponential rate each and every day. This agreement opens up further opportunity for Australian agricultural industries. I want to point out one in particular. We have all seen the news reports of Chinese families here amassing large amounts of baby formula and exporting it to China in the post. Under this free trade agreement, the tariff on infant formula will go from 15 per cent down to four per cent. That means that Australian companies will be able to process infant formula, which is great for our dairy industries, and have a better opportunity to export it into China. The demand for clean, green produce is high and Australia has the opportunity.

Some in this House talk about how bad this will be. They should understand that Australia is an export market. If we wanted to no longer trade and to shut down our borders, what would we do with all the surplus agriculture, in particular, in Australia? I think we export in total around 85 per cent of our agricultural product, and the opportunity to do more is great. Another plus side, in particular for the Hunter Valley, is not just the reductions of tariffs on coal, on wine and on dairy and beef but also services technologies that support those industries. This will create increased job growth in my region of the Hunter Valley. As I say, we are not all about coal exports; we are about technology and services exports as well.

There are two other areas I want to raise quickly. No. 1 is education. The opportunities to grow the education sector to China are massive. Already it is worth around $4 billion per annum. Chinese students make up our greatest proportion of students in Australia, and we can do more. Not only that; our educational facilities will have the opportunity to set up more in China and have a direct relationship with those communities. And it is not all about the tier 1 markets of the Beijings, the Guangzhous and the Shanghais; the tier 2 and tier 3 markets in China are also important. The opportunity for tourism growth into China is one of our rapidly-growing opportunities. When I was in opposition, I helped write the coalition policy on tourism, which we are now working with.

This is a fantastic opportunity. Carpe diem—seize the moment. We can be ahead of the curve—ahead of other countries. We can seize these opportunities and we will grow jobs here in Australia and grow our trade, and that is great for the economy of this nation. Do not fear the opportunity; seize the opportunity. Let's work together because we need Chinese product coming into Australia. Just as they need our coal, our aluminium, our iron ore, our wine and our food, we need their products too. This is a symbiotic relationship—a relaxation of tariffs to each country—because it is a two-way trading arrangement; it is not a one-way trade arrangement. There are great opportunities and great economic benefits. I encourage all Australians, and in particular Australian businesses, to seize the opportunities and make the most of them—because, if we do not, other countries will, and that would be a loss and to the detriment of this great nation.

Gai Brodtmann (Canberra, Australian Labor Party, Shadow Parliamentary Secretary for Defence) Share this | Link to this | Hansard source

It is a great pleasure to rise to speak on these bills, which implement the China-Australia Free Trade Agreement, the Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015 and the Customs Tariff Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015. As we have heard from everyone who has been speaking about this agreement, trade is essential for Australia's economic future. Labor understands that. It is in our national platform. As we say in our national platform:

More trade is a pathway to a high-skill, high-wage future for … Australians.

Labor has been engaged in trade liberalisation forever. We are the party who deregulated the economy in the eighties. There was a dramatic transformation of the Australian economy in the eighties thanks to those initiatives. They were very challenging initiatives at times, and very confronting as we transformed our economy from a very high tariff, protectionist economy to a low-tariff or no-tariff economy that was deregulated in so many ways. As I said, it was very challenging for many, particularly on our side and particularly for workers in the textile, clothing and footwear industry, where, essentially, that whole industry was deregulated and tariffs, very gradually, were reduced to virtually zero. It is challenging to make the transition to a deregulated economy, an open and liberalised economy and an open and liberalised trading environment, but Labor has been courageous in the past. As I said, we made those enormous achievements in the eighties. We are the party that signed up to GATT in the forties. We are the party that materminded APEC. We are the party that masterminded the Cairns Group. We are the party that masterminded what is now the Indian Ocean Rim Association. We have a very strong track record on trade liberalisation, and we have shown it. We have proven it in terms of the multilateral architecture we have set up, the organisations and forums we have set up to advance trade liberalisation and economic cooperation from the forties right through to the eighties and today.

As we have heard so much about over the past two days, China is an incredibly important market for Australia. It is already our No. 1 trading partner, and it accounts for a third of Australia's merchandise exports. It is already the world's second largest economy and is set to become the world's biggest economy during our lifetimes—right here in the region, the biggest economy in our lifetimes. It is a major new market, with hundreds of millions of increasingly affluent, increasingly middle-class consumers who want goods and services. We are seeing it with China and we are seeing it with India. And it is going to be an enormous source of valuable investment funds that Australia will need to create and grow new business opportunities and jobs in the future.

Asia's middle class now numbers around 500 million and is expected to increase more than sixfold in the next 15 years. And, as I said, it is not just China. There has also been growth of the middle class in India, a country I have a very strong affinity with, having been posted there in the 1990s. I will be back there over the weekend for the inaugural Australia India Leadership Dialogue and am very much looking forward to taking part in that. But we have this burgeoning middle class in the region—in Indonesia, and it has been in Singapore for some time. I think people tend to focus a lot on China because it is so huge, but there is also have India, which is also incredibly huge and where there is very much a growing opportunity, particularly with the middle class and particularly in demand for a broad range of consumer goods and services.

As I said, there are 500 million people in the middle class in Asia, on our doorstep, and by 2030 that will be 3.2 billion middle-class consumers in Asia, or 66 per cent of the world's middle class. A large slice of that is in China, and also in India. This is going to translate into rising demand for a range of products and services across a broad range of areas, including areas where Australia does very well. I am talking about food, about education—and not just higher education but vocational education. We are world leaders in vocational education, and there are great opportunities there, as well as in tourism, health, aged care, and financial and professional services. There are huge opportunities for cultural services and curatorial services, and helping both China and India to showcase their stories to their own people and to the world. We are world leaders in curatorial services, as well as in archiving and preservation, and I think there are real opportunities there, and real opportunities for Canberrans.

Also in wine: my sister is a winemaker, and her husband is a winemaker. She is the first female master of wine in Australia, and her husband is frequently in China. He has just come back from winning a scholarship there. He is frequently in China engaging with winemakers there. Again, the wine industry in China is growing exponentially, so he is there as a consultant providing advice, and he is also part of this scholarship now to, hopefully, win a prize for making the best wine from Chinese grapes.

On vitamins, I had a conversation with Marcus Blackmore about a month ago. I spoke to him about Young Endeavour, because he is actively involved in that. He was telling me that the demand for vitamins has grown by 200 or 300 per cent. It has been extraordinary—and very sudden. When Chinese people come to Australia one of the first trips they make is to one of Marcus Blackmore's shops or to a chemist to buy his vitamins, and the shelves are cleaned out. So, on the demand for vitamins, I think we have a good appreciation of what we can export now, of what is in the market, but I do not think we have even begun to wonder what can be exported in the future in terms of the opportunities out there.

As I said, there are many, many benefits to this agreement, and it does create significant opportunities for Australia. It will give Australian businesses greater access to the market. Under ChAFTA 85 per cent of Australian exports by value will enter China with no tariffs immediately. This will rise to 95 per cent when the agreement is fully implemented. China will remove or significantly reduce tariffs on Australian beef, sheepmeat, dairy products, horticultural products, wine, barley, seafood and processed foods. These sectors employ more than 200,000 workers. So, there are many benefits, and not just benefits for today's businesses, today's winemakers, today's producers, today's service providers and today's architects but also intergenerational benefits.

I think Labor's concerns about some elements of this agreement have been well covered. I just want to talk about the fact that we entered into negotiations to ensure that there are a number of complementary safeguards in this agreement. That was designed to address concerns that were coming back from our communities. In my electorate I recently held a forum on the TPP with the member for Perth and the member for Rankin. It was very well attended. The discussion did not focus only on the TPP but also on ChAFTA and trade agreements more generally. Concerns were raised in a broad range of areas, and we have addressed those concerns in negotiating these safeguards.

These safeguards will require employers entering work agreements with the Minister for Immigration and Border Protection to conduct labour market testing before turning to overseas workers. Labour market testing requires employers to show that local workers are not available before they turn to 457 visa workers by providing evidence that they have advertised the jobs. We have also secured a government agreement to a series of additional safeguards for work agreements. These safeguards include requirements for employers to demonstrate that there is a labour market need to use 457 visa workers, to adopt training plans showing how they will train local workers to address skills shortages and to adopt overseas worker support plans showing how they will support 457 visa holders, including by providing information about workplace entitlements and rights.

We have also secured a major improvement in market salary rate requirements for 457 visa workers. It is a key safeguard designed to ensure that 457 workers are treated fairly and that temporary skilled migration does not undercut Australian wages and conditions. I think that is very important and a significant improvement to this agreement. It requires that 457 workers are employed on market salary rates and that wages and conditions are no less than those for a local worker performing the same job in the same location.

We have also secured agreement from the government to add new visa conditions for 457 workers in occupations where holding a licence is mandatory under state and territory workplace skills and safety laws. The new conditions will require 457 visa holders in these occupations not to perform the occupation without holding the relevant licence, to obtain the licence within 90 days of arriving in Australia, to comply with any conditions imposed on the licence, not to engage in any work or duties that are inconsistent with the licence and to notify the department in writing if they have been refused a licence or if their licence has been revoked or cancelled.

Before I conclude I want to touch on the investor-state dispute settlement provisions in this agreement, because there are legitimate public concerns over the impact of these provisions on public policies, particularly in areas of health care, public services and environmental protection. These concerns have not just come from my community and the broader community; they are also from mainstream economic and legal experts, including the Productivity Commission, The Economist, Chief Justice of the High Court of Australia Robert French, former head of the AIG and Reserve Bank of Australia board Heather Ridout and numerous academics.

We have led the way in arguing against ISDS provisions and in government we adopted the policy of not including these provisions in trade agreements. In opposition we continue to oppose ISDS provisions in trade deals because we do not believe the government should have included ISDS provisions in ChAFTA. If we are returned to government, we will seek to review all of Australia's existing ISDS provisions in trade and investment agreements with our trading partners.

Finally, I want to pay tribute to everyone involved in this significant agreement. I want to pay tribute to Simon Crean, to Craig Emerson, to Richard Marles, to Andrew Robb and to Penny Wong. Trade has always been a crucial part of Australia's economic world. It is vital to Australia's prosperity and growth in the future. This agreement will ensure that we will continue to grow and prosper. Australia has many products, services and skills that we want to share with the world and we are looking forward to the opportunities provided by this agreement for China to further explore our innovation and excellence.

This agreement, as I said, is not perfect. It does not address all of our concerns, but it will realise significant benefits for Australia for generations to come.

Michael Sukkar (Deakin, Liberal Party) Share this | Link to this | Hansard source

Today is an absolute marquee day for this country, and it is therefore a great pleasure for me to speak on the Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015. Economic development and wealth creation in the 20th and 21st centuries have been reliant on two main things. The first is free and freer trade, a development we saw from the mid-20th century and continuing, obviously, to today. The other is, of course, technological improvements. We should never forget that the wealth that Australians enjoy today is because of the hard work of previous generations in breaking down trade barriers and ensuring freer trade. We have been one of the greatest beneficiaries of that of any nation in the world.

Today is an extraordinary day for Australia, and I suspect there are lots of Australians out there—indeed, there might even be members in this House today, most notably some on the other side of the House—who do not appreciate how important this will be for our country for decades to come.

I want to pay tribute first and foremost to Andrew Robb. He has done an extraordinary job in so quickly bringing these agreements to what has been, quite frankly, a very surprising conclusion. Free trade agreements by their very definition are negotiations. In some respects I was not expecting that we would get such a good deal out of China. The fact is that the Minister for Trade has been able to extract an extraordinary deal for this country. Eighty-six per cent of Australian goods will enter China duty-free, for example. That is extraordinary.

I also want to pay tribute to the leadership of our party and to every single backbencher and member on this side of the House, because we have stared down a disgraceful campaign from the union movement with the Labor Party following. Let's get it on the record that we would not be passing this legislation today had we not stared down that disgraceful campaign from the union movement and those opposite. For the hundreds of thousands of Australians who will get jobs and improved opportunities and for the small business men and women out there who will have a huge market increasingly to work with, I think thanks needs to go to each of the people on this side of the House, who in quite difficult circumstances stared down what we knew was a disgraceful campaign from those opposite. It is great that they are with us. We have brought them along. We dragged them kicking and screaming. So credit where it is due, of course.

My home state of Victoria will be as big a beneficiary as any other state in this country. Victoria exports more than $4 billion worth of goods to China, including around $3 billion worth of goods in agriculture. There will be great gains for Victoria's farmers and agribusinesses, including those in the dairy industry, beef, sheep, horticulture, seafood, wine and wool. For my electorate of Deakin there will be great opportunities for advanced manufacturers. One business in my electorate—Timbermate, which manufactures putties and fillers—has a great domestic business here in Australia. They do great work with exports to the United States.

Now they will have all tariffs on their goods into China removed. They have already indicated to me that they have now signed agreements with distributors in China in preparation for this agreement coming into force. The minute those trade barriers are removed their market will exponentially grow, because they are at the high end of their market. I have a number of advanced manufacturers in the Deakin electorate who will be exporting premium product to China. They therefore will be expecting a premium price. Trade barriers have made that difficult in the past.

What does this mean? It means more jobs and more opportunities. For young people who have left school and are looking to get a job, this is great for them. For small business people who are looking for emerging markets and are now grasping the opportunities that the digital economy offers, this opens up such a huge market it is quite unfathomable. It is very difficult to quantify. The things we suspect today will be the great aspects of this agreement I suspect will be superseded by aspects that we cannot even envisage. If nothing else, this is going to be an outstanding legacy for our trade minister, Andrew Robb, and for every member on this side of the House.

I will end on a point I have made previously. This agreement would not be in place and would not be coming into force were it not for the fortitude and spine of those on this side of the House who stared down a disgraceful campaign from the union movement. I want every single Australian to understand that. I commend this bill to the House. This is a wonderful day for Australia.

Warren Snowdon (Lingiari, Australian Labor Party, Shadow Parliamentary Secretary for External Territories) Share this | Link to this | Hansard source

I welcome the opportunity to speak in this debate and I welcome the position of compromise that has been reached between the government and ourselves on the questions that were important to us on the Chinese free trade agreement, what was in that agreement and how it would impact on Australian workers, in particular.

I want to start by pointing out that I live in the part of Australia that is closest to Asia—the Northern Territory. We have had contact with Chinese people and Chinese labour, in particular, since the 19th century. I do not think it is commonly known that by 1878 the South Australian government, which was then in control of the Northern Territory, had recruited so many Chinese labourers—or 'coolies', as they were then disparagingly known—that the Chinese were the largest non-Aboriginal group in the Northern Territory.

In 1888 there were 6,122 Chinese in the Northern Territory. There were few more than 3,000 people of European descent. So the Chinese population was double the European population. They were contracted to work on the goldfields. They sent money home and they spoke mainly Sze Yup or Hakka dialects. They worked hard and soon had their own gold claims. They established market gardens, most famously at Doctors Gully beside the Darwin Harbour, and engaged in general industry and commerce.

However, by the 1890s, as we know, sadly racism was alive and well and anti-Chinese feeling was particularly strong not only in the Northern Territory but across New South Wales and Victoria. Many Chinese people left the Territory but many also stayed on. Their family names are still strong in the Northern Territory community—Chin, Ah Toy, Lee, Chan and Fong Lim. These are some families that can trace their history back to this period. They settled permanently in the Territory and increased the extent of their commercial base, particularly in Darwin but also in Pine Creek and Katherine. So we in the Northern Territory are not new to this relationship with China or to Chinese workers coming to Australia and participating in work. At that point in history they were invited by the then government responsible for administering the Northern Territory, the South Australian government, to work on the goldfields.

But many things happened during the last century. One of which was the rise of Mao Zedong and the Chinese Revolution and the impact that had on the world community. The White Australia policy still existed in Australia then. We still had anti-Chinese rhetoric. There was the concept of the 'yellow hordes' coming down from Asia and impacting upon Australia. There were very racist and xenophobic statements and assertions made about our Asian friends and neighbours.

It was not until 1961 that a very significant trip took place when the then Governor of the Reserve Bank of Australia, HC Coombs, visited China. He told his Chinese hosts that Australia would welcome Chinese visitors. The Chinese took his words seriously. The following year, the President of the People's Bank of China visited Australia and was interested in meeting people, obtaining information and generally promoting trade. Nugget Coombs maintained that the revolution had not impaired China's tradition and commercial code of absolute reliability.

Post 1961 up until 1971, there was not a lot of activity at least officially from government, except there was work being done by the then Wheat Board and the then Wool Board about trying to export Australian primary produce into the Chinese market.

Yesterday, as we know, was the first anniversary of the passing of the great Gough Whitlam. He was, without doubt, the first Australian leader to understand the need to engage and the importance of engaging with China. In 1971, as opposition leader, as part of the so-called doctrine of ping-pong diplomacy, he helped tear down the bamboo curtain and began the process of engagement between modern Australia and modern China. His meeting with the redoubtable Zhou Enlai began the process of building a modern relationship between the two nations, which he further developed when, as Prime Minister, he visited China in 1973—the first Australian Prime Minister to do so.

When Whitlam was breaking new ground with China, its economy was smaller than the Netherlands'. But he knew that this was a sleeper economy and that, given the right set of domestic and international circumstances, it would sleep no more. How right and how prescient Gough Whitlam was. Today, China's gross domestic product is nearly as large as that of the United States and seems likely to overtake it as the largest economy in the world within the near future. Whitlam understood the need to deal and trade with China.

Then we move on to the Hawke and Keating years, and then, from a Labor perspective, in the Gillard and Rudd years we introduced the Australia in the Asian century white paper. This guided the way that the Australian government engaged not only with China but with the rest of the region as well.

John Howard started the process of negotiating a free trade agreement with China. That was followed by the Labor governments of Rudd and Gillard, whose trade ministers Simon Crean, Craig Emerson and Richard Marles advanced these interests. There is no question that this has been an imperative of both sides of politics since the mid-1990s. But it is a legacy of the work which had been previously done by a Labor Prime Minister and Labor governments up until then.

Labor has always supported the principle of a China free trade agreement, as we well know, and as I know those members opposite also know. But we were blindfolded in our support for that agreement and for the negotiations. We had no participation. We did not see the content of the document. We did not know what was being negotiated until the final outcome was reached. Legitimately and quite properly, concerns were raised by interested people across this community about what might be in that document, and when the document was observed and seen and analysed, many people in the trade union movement rang alarm bells because they were interested and most concerned about protecting the interests of Australian working people. They were not xenophobic or racist, as they were called by the Abbott government, the government of the time.

I recall the denigrating way in which not only senior ministers in the current government but also ministers in the Abbott government stood at the dispatch box and described Labor members and trade union leaders in this country as xenophobic and racist. We know that those insults—and they were insults—showed the paucity of thinking or of any objective analysis by the government of the day, because Australian workers had every right to ask legitimate questions about what was in this agreement and how it would impact upon them. This is why, despite these descriptions of Labor and the unions as being xenophobic and racist, Labor has been able to achieve outcomes as a result of Labor negotiations. We do not have the same entrenched view that racism and xenophobia are part of the lexicon that the government uses to describe the opposition or the Labor movement.

We had the view that it was actually about time we sat down and had a yarn to work out what might be a reasonable outcome for Australian workers. That is why Labor argued for legal safeguards in three particular areas—safeguards which did not exist in the original agreement and which were highlighted by the trade unions. Such safeguards were denigrated by the government. Now, because we have reached this agreement at the behest of Labor, we have addressed the issues of labour market testing, protecting Australian wages and conditions, and upholding workplace skills and safety standards.

There are many who would argue those protections do not go far enough, and I understand their arguments. Had we been at the negotiating table, there would have been a different outcome. But we were not, and the best we could achieve, as a result of the fact that this was a done deal and that we were delivered with a fait accompli, was to deal with changes which would not impact directly on the agreement, and that is the outcome that what we have achieved has delivered.

I am pleased that we have finally been able to achieve this agreement with the government. It is important that we acknowledge Andrew Robb, Penny Wong and the Leader of the Opposition for the work they have put in to negotiating an outcome. But let it not be said that because we have achieved this outcome that somehow or other we are xenophobic or racist. It is simply an insult which is wrong, disparaging and beneath contempt. Yet it is something which the government was pleased to advance across this dispatch box and in the public arena for the months leading up to the recent discussions between the trade minister and the shadow trade minister, Penny Wong.

I am pleased that we have been able to achieve this outcome. It may not go far enough. We need to do more, and I look forward to working with the government to achieve the best outcomes we possibly can for Chinese investment in Australia and for jobs for Australians. Whether they are as a result of trade into China—beef from my own part of the Northern Territory, horticulture from the Northern Territory, mining produce from the Northern Territory, tourism from the Northern Territory are all very important things—I will look forward to getting those benefits and making sure that Australian workers' interests are properly protected, as are those of workers who are on 457 visas when they come to this country.

David Coleman (Banks, Liberal Party) Share this | Link to this | Hansard source

What a fantastic day today is for Australia, because today is the day when through this parliament will pass the enabling legislation for Australia to implement the China-Australia Free Trade Agreement: the Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015 and the Customs Tariff Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015. A world of opportunity is about to open as a consequence of this tremendous deal. The Minister for Trade and Investment has done a remarkable job on the deal with China, as well as the deals with Japan and South Korea and the TPP. He has excelled to a most significant degree in closing these very large deals.

The deal with China does not just benefit one or two industry sectors in Australia; it benefits so many parts of the Australian economy. There are hundreds of thousands of businesses in Australia that today will know opportunity is just around the corner, in increased sales into China. You might be in lamb, beef, nickel, titanium, legal services, accounting services, construction, uranium, horticulture, seafood or wine—the list goes on and on; dozens of industry sectors will benefit from the abolition of tariffs, the reduction of tariffs and the increased market access for services companies that are currently denied the capacity to operate in China or are heavily constricted in so doing. This deal changes all of that and it will create immense value for the Australian community.

Let us back up a step and ask: why are we in this situation where we need to remove all these trade barriers? The reason is that historically governments—no doubt well meaning at the time, decades ago—set up a whole bunch of trade barriers that made products more expensive for consumers. That is what they do: they basically make things more expensive for consumers. Even worse than that, sometimes they even make it impossible for consumers to buy certain things. The net result is that people pay more for products. Instead of paying $10 for something, they might pay $12 or $13. If we are spending $12 or $13 on something that should have been $10, that means that there is less money available for other forms of investment and for other things that should be happening in the economy. Imposing trade barriers is an utterly counterproductive and destructive policy, and the economic history of the 20th century tells you that loud and clear.

This government is not just about some sort of theoretical discussion about free trade agreements. This government is about actually getting things done. It is very easy to say theoretically that we should reduce barriers to free trade, but this government and this minister have delivered in spades. Remarkably, in 1999 Australia's trade with New Zealand was bigger than our trade with China. 1999 is not that long ago, Mr Deputy Speaker. I am sure you remember those days. Back then the small island nation of New Zealand had a bigger trade with Australia than China did, which is extraordinary. But by 2013-14 China represented $160 billion of our trade in goods and services, 24 per cent of our entire world trade and was more than twice as big as our second-biggest trading partner. It is difficult to fathom that sort of growth. That growth occurred despite the fact that, in that 15-year period, there were still very significant barriers to trade.

Trade with China is a freight train going at a rapid speed, creating growth in the Australian economy. Through removing the remaining trade barriers, we supercharge it, we give it an extra boost and we open more and more doors. If you are in Hurstville, in my electorate of Banks, and you have a business that is involved in tourism services, for instance—taking people back and forth from China—there will be huge benefits for you in this deal. You might have an accounting firm in Hurstville that does business in China. There will be tremendous market access benefits for you in this deal.

I want to thank the Southern Region Chinese Business Association, based in my electorate, for their strong advocacy for this deal. I want to thank the member for Dunkley for his strong advocacy for this deal and for his visits to my electorate to champion it. This is a fantastic day for Australia. It has occurred despite the disingenuous, dishonest and wrong opposition that we have seen from the union movement. We are pleased to welcome those opposite in supporting this deal. It is a good thing that that has finally been achieved. This is a great day for Australia. It is a fantastic opportunity opening up today for many hundreds of thousands, if not millions, of Australian businesses.

Matt Williams (Hindmarsh, Liberal Party) Share this | Link to this | Hansard source

As my colleagues have said, today is a very important and exciting day for Australia's economy going forward. For all the news about the challenges for Australia and my state of South Australia, with rising unemployment and the decline in mining and resources and manufacturing, there is always hope, whether it be in services or in areas in which we have a competitive advantage such as agriculture, wine, beef, seafood, dairy, tourism and health services. These are the strong foundations of our country and offer immense growth potential. As we have heard, there was a misleading union campaign on the free trade agreements, and we were disappointed at the approach that they took. But we have moved on, and they have come to the agreement that this is a good deal for Australia because they know that growth potential is heightened by the FTA.

The increasingly wealthy and mobile middle class in China is creating new opportunities. The recently signed China-Australia Free Trade Agreement will bring unprecedented opportunities across a whole range of areas that I have already mentioned. It is estimated that these free trade agreements, with the China FTA at their centre, will result in thousands of jobs over the next 20 years. I am sure the guests in the gallery acknowledge the potential for the economy as a whole. Already we are seeing some quite extraordinary business opportunities and partnerships emerging between Australian and Chinese companies in anticipation of the China deal, which we hope will enter into force later this year. Sean Keenihan, the Vice President of the Australia China Business Council, from my state of South Australia, said the FTA would see greater trade volumes for South Australia.

The recent signing of the MOU between the Adelaide Produce Market and the Guangzhou Jiangnan Fruit and Vegetable Market is a prime example of the FTAs working for local growers. On the importance of the China-Australia Free Trade Agreement, Angelo Demasi, the CEO, said:

South Australian growers are extremely optimistic about the future trade conditions with China—with all tariffs on horticulture products to go within four to 8 years.

The recent special signing of the Memorandum of Understanding between Adelaide Produce Markets and GungZhou Jiangnan Fruit and Vegetable Market is a prime example of the FTAs working for local growers.

Industry cannot just put their feet up and expect Chinese buyers to come rushing in with orders. They need to be proactive and get out there. They need to market their wares and really have a crack. As the Winemakers' Federation of Australia Chief Executive Paul Evans said on the China FTA:

The potential of how much value we can derive from this announcement is really now back in the hands of industry.

China will become Australia's top wine export market in value, even without the new FTA. With exports surging into China, the FTA will allow us to build on our strength that we have in the market, claiming a more dominant position. With China's middle class growing at levels that are hard to get your head around, this is an exciting time for Australian winemakers.

Our wineries are not the only ones who will be hoping that they can succeed, or will succeed, at taking advantage of the opportunities presented. There are a series of associated companies in the supply chain that will benefit, such as Lallemand at Edwardstown in my electorate and Collotype Labels at Mile End, as well as transport companies, professional advisers and contractors, and the list goes on. There will be more work for everyone as part of the supply chain and for services in those sectors that will benefit from the China FTA. I have just a quick note on Collotype as it is a great success story. It started in 1903 as a small print shop, which took its name from the best reproduction process of the day, collotype. Today this print shop has grown to become the world's largest and most awarded premium wine label printer. It is a great success story.

Wine is not the only industry that is going to get a boost from the free trade agreement. South Australian Premier Jay Weatherill said:

This free trade agreement ... will also have a particular effect on particular food characteristics, such as wine, meat, dairy produce, seafood.

China is our largest trading partner. China also is our fastest-growing trading partner. This free trade agreement will give us the impetus to grow that trade opportunity even further.

Hagen Stehr from the Stehr Group said that the China FTA will open a new market, and they are hoping to export 200 tonnes of tuna to China next year. Catherine Barnett, Chief Executive Officer of Food SA said that the free trade agreement provided a gift for food industries in South Australia. She said:

It is now up to businesses to seize this opportunity to grow by being smart with their marketing, branding and positioning.

Darren Thomas, owner of South Australia's largest meat exporter, Thomas Foods International, said that the tariff reduction would allow the meat industry to be more competitive especially against the New Zealand market. He said:

We certainly have had a heightened focus on China with the Free Trade Agreement in mind. We are working closely with our clients to ensure they are aware of the benefit of the FTA.

Companies like Thomas Foods are based all around Australia but their head office and corporate facilities are in Adelaide. You get the professional services and people in the metropolitan regions benefit from what happens throughout the country.

Finally, I am a supporter of trade and companies that export. I worked in London for two years for the South Australian government promoting South Australia to Europe and saw, firsthand, the difficulties that companies have in accessing foreign markets. That is why the free trade agreements are so important, to give us that access and to give us those avenues. This is a unique opportunity to grow our economy. We must all act immediately to take advantage of the potential from increased trade with China in the best interests of our country.

Andrew Leigh (Fraser, Australian Labor Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

I sometimes wonder how Australia's founding fathers would regard debates in this place were they to know that we would be sitting here with both sides of the parliament supporting trade liberalisation and supporting better engagement with China. Indeed, at the very moment this debate is taking place, the Queen of England is hosting Xi Jinping for a state dinner in London. Federation was founded around a protectionist settlement. That protectionist settlement was one with which the Country Party and the Labor Party were agreed. As late as 1948 Labor Prime Minister Ben Chifley told parliament: 'If the matter had been left to us, we should not have initiated a conference to discuss the lowering of world tariff barriers.'

That philosophy of protection-all-round McEwenism, supported by the Menzies government and its successors, was supported, too, by my side of politics. It was not broken until the 1973 tariff cut under Gough Whitlam. The 1973 cut is a great reminder of the power of ideas in shaping the world. Indeed, as Keynes once said: 'The world is ruled by little else.' Works from people such as Max Corden and Alf Rattigan were vital in providing the intellectual underpinnings for the tariff cut. It was a close-run thing. Whitlam's cabinet approved the 1973 tariff cut by a margin of only 16 votes to 11. History would have been quite different had the forces of closed economy seen the day at that time.

Since then it has been Labor governments that have helped to bring down Australia's tariff barriers. The 1988 and 1991 tariff cuts were bold economic reforms which recognised the principles that, as Joan Robinson once put it: 'We should take the rocks out of our own harbours even if our trading partners do not take them out of theirs.' Over the trade office in Washington DC is the line, 'No nation was ever ruined by trade.' That great principle is no more true than Australia's trade with China.

Since Deng Xiaoping first allowed private property experiments in the late 1970s, the Chinese economy has massively opened up and its living standards have exploded, increasing more than tenfold. To visit Beijing or Shanghai or many of the other large cities in China is to meet people of my age who remember going to bed as a child every night hungry, but who now enjoy a comfortable standard of living.

This will be an agreement which will benefit Australia's goods exporters. But the goods exports are just a part of the consumer benefits that flow from this trade agreement. As my colleagues, Clare O'Neil and Jim Chalmers, have articulately pointed out, services exports are a vital part of the benefits to be gained from this trade agreement.

As my colleague, Tim Watts, pointed out in an excellent speech in this place last night, the gains from imports will be higher than the gains from exports. Productivity Commission modelling suggests that the free trade agreements undertaken by this government will boost Australian exports by 0.5 per cent and Australian imports by 2.5 per cent. It is ironic, given that, that the government has been referring to this as an export agreement rather than an import-export agreement.

Labor has ensured that there are a range of safeguards put in place around labour market testing, around protecting Australian wages and conditions and around protecting workplace skills and safety standards. They are issues that are important to many Australians and to those who represent workers. They are issues that have been raised with me at community group meetings right across my electorate.

Labor's commitment to free trade runs deep, deeper than that of any other party in this parliament. Our commitment to China could not be stronger, going back to Gough Whitlam's brave decision—which was ridiculed by the conservatives of the day—to engage with mainland China and the growth opportunities that it represented. We support this agreement and we commend to the House the additional safeguards that have been put in place to not just ensure that we just get more goods exports, more services exports and cheaper imports but that we also safeguard Australian jobs in the process.

Teresa Gambaro (Brisbane, Liberal Party) Share this | Link to this | Hansard source

I wish to speak on the unbridled opportunities my electorate has before them if we ratify this historic trade deal with China; I know that that now is going to happen. If a picture is worth a thousand words, then ChAFTA is worth a billion opportunities: $1.4 billion, to be exact. Never has a trade of this scope meant so much to so many people. With increasingly fragile global markets and increasing deficits across the world, now more than ever it is the time to increase our economic ties to countries that will continue to grow their economies despite predictions stating otherwise.

China continues to outstrip expectations in its growth forecasts. This means that we must continue to grow trade with China if we wish to grow with it. China already takes one-third of our exports; our economic fate is already intrinsically linked with our Chinese neighbours. With this trade deal, more than 85 per cent of Australia's goods that are being exported to China will enter duty free when ChAFTA enters into force, rising to 93 per cent after four years and 95 per cent when ChAFTA is fully implemented. This is a huge win for our exporters and it means more money to grow our economy.

China is already the strongest economy in Asia and soon China will be the biggest economy in the world. What ChAFTA does is give Australia and our exporters privileged access to the biggest market in Asia, which will soon be the biggest market in the world. Already, before it has even been ratified, the China-Australia Free Trade Agreement is making a difference, with Australian-owned vitamin company Blackmores hiring an extra 100 employees to cater for the increased demand that they expect will come off the back of the lowering of tariffs. Indeed, increased exports and cheaper imports will allow Australian businesses to hire more workers. Compared to a scenario without our FTAs with China, Korea and Japan, annual net jobs are forecast to be up to 7,925 higher in 2016; peaking at 14,566 higher in 2020; and returning to 5,434 higher in 2035 than it would be otherwise, as a result of the free trade agreement.

Despite the shameful and racist scare campaign run by Labor and their dishonest union mates, more Australians want the ChAFTA than do not. This is despite the incorrect, misleading and quite frankly bigoted TV ads that the CFMEU having been ramming down the throats of Australians every single night on our TV screens. It is a testament to the strength, character, optimism and good nature of Australians that they have seen through Labor, they have seen through the union's scare campaign and they have jumped at the enormous and endless opportunities that this historic agreement will provide Brisbane and Australia.

I am absolutely excited about what this agreement is going to mean for my electorate and what this agreement means for the many, many businesses that are in the CBD of Brisbane. Recently, I held mobile offices throughout my electorate; locals want this agreement, they support it and they see the incredible opportunities that are going to arise for themselves, for their children and for their grandchildren as we move into the Asian market.

Independent economic modelling shows that Australia's FTAs with China, Japan and Korea will together add $24.4 billion to the Australian economy over the period of 2016 to 2035. Increasing economic activity under the FTAs will also support higher incomes, and real wages are forecast to be 0.5 per cent higher by 2035 as a result of the FTAs. Higher incomes and lower prices under the FTAs will benefit every Australian household. Over the period from 2016 to 2035, real consumption per household is forecast to be $4,348 higher than without the three free trade agreements.

Specifically for my electorate of Brisbane, the opportunities are truly endless. To say this agreement is exciting news for Brisbane is an understatement. Not only does my electorate lay claim to some of the best and brightest people in the country but it also lays claim to individuals and businesses that are at the very forefront of competition and innovation in the world. The area of greatest opportunity to my constituents is the ability to export our world-class services so that we may be able to provide what we do well here and provide that to China as well. China is Australia's largest services market, with exports in services valued at $8.2 billion in 2014. This means more opportunities for local business and more opportunities for people in Brisbane.

In ChAFTA, China has offered Australia its best ever services commitment in an FTA. Most valuably, this includes new or significantly improved market access for Australian banks, insurers, securities and futures companies, law firms and professional service suppliers, education service exporters, as well as the many, many businesses in my electorate in the health, aged-care, construction, manufacturing and telecommunications industries. This will give businesses like River City Labs in Brisbane, which supports early stage and start-up companies in the mobile, internet, telecoms and technology sector, a springboard to access Chinese buyers.

The agreement also includes a 'most favoured nation' clause, under which Australia's competitive position into the future will be protected if China extends any more beneficial treatment to other trade partners in the sectors of education, tourism and travel related services, construction, engineering, and a whole litany of other sectors. So Australia wins again. This means that we will stay one step ahead of our trade competitors, who cannot compete with the quality of our products and the quality of our fantastic service industries.

I had the pleasure of joining architectural firm dwp/suters only a few months back to celebrate their 30 years in business. They are an award-winning architectural firm, already with global reach. They are already doing incredible work in Asia and they are based in my electorate. They will have a chance to provide the incredible expertise they have in building wonderful hospitals, other public buildings and cutting-edge products to Chinese people and businesses.

Brisbane, the legal and geographical capital of Queensland and the heart of the legal fraternity, will also have guaranteed market access. Australian law firms can establish commercial associations with Chinese law firms in the Shanghai free-trade zone.

Aged care is another area with ample opportunities ahead for local businesses in my electorate to explore. The senior living industry in China is yet to meet the demands of its very large aged population. It is still very much underdeveloped. It is waiting and hungry for innovative businesses to satisfy the huge demand for this type of service. As of February 2014, the aged population of China exceeded 200 million, almost 10 times the population of Australia. This number is as unfathomable as it is exciting, because local businesses like Ozcare Palm Lodge will be able to have direct access to that market.

It is similar in the early childcare area. Brisbane business Charlton Brown, a nanny agency which already provides services to China, will have much deeper access to potential customers. I want to acknowledge the incredible work that they do in Brisbane, training nannies and aged-care providers. They are an exceptional firm.

Equally exciting will be the opportunity for local fashion designers and retailers, who will have access to more than one billion potential clients. With growing disposable incomes, premium jewellery and clothing are expected to be much more popular among consumers in China. Fashion is fast becoming more global, with more international brands appearing in China. This free trade agreement will support the local fashion brands that I buy in my electorate. They will be able, if they wish, to hit the streets of Shanghai as well. In addition, the increasing exposure to international fashion trends and growing personal wealth are likely to drive stronger demand for luxury items in China.

This opens the door for small and innovative businesses in Brisbane to capitalise on the opportunities that we as a government have created. Businesses like sass & bide, Sacha Drake, Miss Henry in Paddington, and Jules & Roc in the valley, who provide the latest trends to locals, will now have access to one of the hugest populations in the world.

Consistent with Australia's other bilateral trade agreements, remaining Australian tariffs on Chinese imports will be eliminated progressively. This includes removing the five per cent tariff on Chinese manufactured exports, electronics and whitegoods, with consumers and businesses to benefit from lower prices and the greater availability of Chinese products. Classic economics dictates that demand is not satisfied until the appropriate amount of supply is produced. In this case, Australia may not on its own be able to produce and provide enough supply for the voracious Chinese economy, but this free trade agreement gives my constituents of Brisbane and the vast majority of Australians every single opportunity to grow their businesses.

This is a historic agreement, one that crosses the political divide. It has garnered support from Labor luminaries, Labor premiers and Labor state opposition leaders. While the opposition are in here today supporting it, sadly that has not always been the case. Today they have begrudgingly come into the chamber and they say they are going to vote for the bill, but they are still clinging to some of those CFMEU inspired talking points. I want to say to those opposite and to the Leader of the Opposition: get on with it. I know you have had input into the negotiations and now the deal looks much clearer than it did in the past.

I support this agreement. It is absolutely fantastic news for Brisbane. It is great news for Australia. I congratulate Minister Robb for his tireless work. He has been an exemplary minister and a superstar in dealing and sealing free trade agreements with Japan and South Korea, as well as signing this historic agreement. This government will be remembered for its free trade principles, and Minister Robb will be remembered as the architect. I commend the bill the House.

Keith Pitt (Hinkler, National Party) Share this | Link to this | Hansard source

I would like to thank the member for Macarthur for his good grace in allowing me to get a brief opportunity to speak. I rise to speak in support of the bill to enact the China-Australia Free Trade Agreement, or ChAFTA, as it is more commonly known.

China is Australia's largest trading partner. It buys almost a third of all Australian exports, valued at nearly $108 billion in 2013-14, and is our top overseas market for agriculture, resources and services exports. Chinese investment in Australia has been growing strongly in recent years, reaching almost $65 billion in 2014.

But I know there has been some concern in my community about Chinese investment. Since coming to government, we have strengthened Australia's foreign investment framework. The Australian government has the ability to screen Chinese investments at lower thresholds than ever before for agricultural land and sensitive sectors like media, telecommunications and defence-related industries. Previously, foreign purchases of agricultural land were only subject to the national interest test and close scrutiny if they were worth more than $252 million. On 1 March this year, we reduced that screening threshold from $252 million to $15 million. That means that any agricultural land purchases worth more than $15 million are now subject to closer scrutiny.

I want to emphasise the fact that the China FTA will not threaten Australian jobs. Chinese investors will only be able to temporarily bring in skilled overseas workers when suitable Australian workers cannot be found. They must receive the same pay and conditions as Australian workers, and Australian workers must be given the first opportunity, unless there is evidence of a genuine labour market need. For example, the companies must provide evidence of their domestic recruitment efforts and why applicants were unsuccessful.

As a former engineer and someone who ran a safety inspection and training business, I know just how important it is that people actually know what they are doing. Contrary to what the scaremongering unions would have us believe, the China FTA will not allow electricians to work in Australia without any skills assessment. All applicants for subclass 457 temporary work visas will still need to have the requisite skills, qualifications and work experience. I would like to briefly mention the contribution from the member for Bendigo and suggest strongly to the member that the member actually looks up the definition of statute law and the application for training, for licensing, for workplace health and safety inside state boundaries, because quite simply that is the place where these things are enforced.

Another myth surrounding the China FTA is that it will allow businesses to import dangerous substances such as asbestos. Under the agreement, all of Australia's safety regulations and prohibitions on imports and exports remain in place. The ChAFTA does not allow food importers to bypass Australia's food safety standards and import contaminated foods. Our science based biosecurity system remains in place.

Importantly, this agreement is a significant win for all the producers of fresh and processed food in my electorate. China buys more of Australia's agricultural produce than any other country, and that is only expected to grow with this landmark agreement. China is Australia's largest agriculture and fisheries export market, worth $9 billion in 2013-14, up from $5 billion in 2010-11. The absence of a bilateral FTA with China has meant Australian producers and exporters have faced significant tariffs on agricultural products and have been at a competitive disadvantage to countries that have an FTA with China, such as New Zealand.

The ChAFTA gives Australia a significant advantage over larger players such as the US. Let me give you some brief examples. Tariffs of up to 65 per cent on spirits, like the famous Bundaberg Rum, will be eliminated within four years. There will be elimination of the 10 to 25 per cent tariff on macadamia nuts within four years, and elimination of the 10 to 30 per cent tariff on all fruit, except citrus, within four years, with the tariffs on citrus eliminated in eight years. It also means the elimination of the 10 to 13 per cent tariff on all fresh vegetables within four years. Tariffs will also be eliminated on canned goods, fruit juices, chocolate and honey.

Australian seafood exports to China totalled $37 million in 2013-14. Tariffs will be eliminated progressively over the next four years on all Australian seafood exports, including crabs, scallops and prawns, which is good news for the people in my electorate.

China has guaranteed that Australian service suppliers are able to construct, renovate and operate wholly Australian-owned hotels and restaurants in China. Australian medical service suppliers will be able to establish wholly Australian-owned hospitals in China. China has made its first ever commitment in an FTA on aged-care services, allowing Australian medical service suppliers to establish wholly Australian-owned profit-making aged-care institutions in China with no geographical restrictions.

What all this means is that our local businesses will find it easier to break into or expand within the Chinese market. Growing their businesses ultimately leads to the creation of more local jobs—jobs that are desperately needed in my electorate. They are jobs for current and future generations, and I am absolutely delighted to be part of a government that has delivered such a landmark agreement. I commend the bill to the House.

Russell Matheson (Macarthur, Liberal Party) Share this | Link to this | Hansard source

It is with great pleasure that I rise today in support of the free trade agreement with China which was successfully signed by the government here in Canberra on 17 June this year. Over the last two years this government has had tremendous success in negotiating free trade agreements with our Asian partners including South Korea, Japan and now China. Prior to 2003, Australia's only agreement was with New Zealand. Since then, Australia has entered into agreements with Singapore, Thailand, the US, Chile, Malaysia and of course Japan and Korea. In addition, the Minister for Trade and Investment, the Hon. Andrew Robb, recently announced the conclusion of the Trans-Pacific Partnership negotiations with his counterparts from 11 other countries earlier this month, which will deliver significant benefits to Australia, including new opportunities for our businesses, farmers, manufacturers and service partners in the rapidly growing Asia-Pacific region.

As you can see, Mr Deputy Speaker, Australia has a long history of supporting trade liberalisation, and I am extremely proud of how well this government has built on that legacy. The government's FTA policy aims primarily at maximising the benefits flowing into Australia from the negotiation of these agreements. We know that the FTAs foster freer trade flows and create stronger ties with our trading partners. The FTAs can increase Australia's productivity and contribute to higher GDP growth by allowing domestic businesses to access cheaper inputs, introducing new technologies and fostering competition and innovation.

The FTAs do not just eliminate tariffs. They also address behind-the-border barriers that impede the flow of goods and services between parties, encourage investment and enhance cooperation, and can address other issues such as intellectual property, e-commerce and government procurement. FTAs can enhance the competiveness of Australian exports in the partner market and add to the attractiveness of Australia as an investment destination. FTAs promote regional economic integration and build shared approaches to trade and investment, including through the adoption of common rules of origin and through broader acceptance of product standards. It is therefore undeniable that the signing of a free trade agreement with China is a monumental achievement by this government that will benefit all Australians, now and into the future.

China is of course our largest trading partner, and this deal will result in increased market access outcomes in agricultural exports, resources, energy and manufactured goods exports, service exports and investment. We only need to look at New Zealand, which signed an FTA with China in 2008 which resulted in more than a tenfold increase in New Zealand's exports to China, to see the remarkable benefits of such an agreement.

Today is a great day for this parliament because Labor has finally come to its senses and has chosen to support this historic agreement. I have to admit I find the timing of Labor's change of heart a little curious. As we all know, the CFMEU have been running a virulent and extreme campaign against the agreement, trying to spook the public about hordes of Chinese workers coming to our shores and stealing our jobs, or dodgy Chinese electricians endangering us in our homes through supposedly shoddy work standards—a shameful campaign of fear.

Only this week my office received a glossy package in the mail from the Electrical Trades Union entitled, 'China-Australia Free Trade Agreement: Original Documents with Detrimental Labour Impacts'. This campaign by Labor and the unions is one of the most disgraceful and misleading campaigns that I have had the misfortune of witnessing. The real tragedy of this xenophobic campaign is the effect it is having on people in the community. In September, for instance, I received an email from Bill Guthrie, a local resident from Mount Annan, who wrote:

Mr. Matheson

I spent thirty years as an Electoral contractor. If what Labor is saying i.e. that on a project worth more than $150 million the Chinese can bring their own workforce ... then someone needs to think about the future of their own kids.

I forwarded Mr Guthrie's email to the Honourable Andrew Robb's Office for clarification and here is the response:

Department of Immigration and Border Protection has made it clear that employers seeking to engage overseas workers under a labour agreement must provide evidence of labour market testing.

According to the Department of Immigration and Border Protection, the department will only enter into a project labour agreement where it has been satisfied that Australians have been provided the first opportunity for jobs.

So there we have it in plain English: employers will not be permitted to bring in overseas skilled workers unless there is clear evidence of a genuine labour market need as determined by the Department of Immigration and Border Protection. There will be no reduction in wages for any workers under the FTA with China and the market salary rates and employment conditions that applied before this agreement will continue after it enters into force. Yet the ETU package claims that the FTA with China bypasses legislated procedures for labour market testing and establishing wages and conditions. I find it incredibly disappointing to have received a document like this, which illustrates why people like Mr Guthrie, a local resident of mine, have been so confused and apprehensive about the agreement.

I can tell you what this agreement means for the a2 Milk Company, a business in my electorate that employs many local people. The a2 Milk Company is currently the largest Australian exporter of branded fresh milk into China which it began exporting in August 2014. According to the managing director, Geoffrey Babidge, the growing reputation of the a2 Milk Company in Australia has been driven by strong word-of-mouth recommendations from Chinese nationals living in Australia to their friends and relatives in China. The company is very pleased about the opportunity the FTA provides in boosting access into the China market for their brand, which in turn will provide increased returns for our dairy farmers and more jobs in food processing on a whole.

As you can see, the FTA with China will mean more jobs, more export opportunities and will be a major boost to our economy. I look forward to seeing my electorate of Macarthur reaping the benefits.

Ken O'Dowd (Flynn, National Party) Share this | Link to this | Hansard source

It is a pleasure to speak today on the Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015 and related bill. I believe it is a fantastic day for Australia because we have come to an agreement with our biggest trading partner: China. Australia exported $108 billion in goods to China in 2013-14 and we imported less than half, about $52 billion, in the same year. The trade agreement will assist with future jobs and growth in all sectors. This agreement will have outstanding benefits for people in Australia, including people in Flynn. As you know, we are a bit of a powerhouse when it comes to a lot of these export products, through Gladstone port. It is a godsend for our agriculture industry. China buys more of our agriculture produce than any other country. There are markets worth over $8 billion in agriculture and farming. It is a very broad sector in Central Queensland and there will be big advantages for our farmers.

The President of the Australian National Farmers Federation, Brent Finlay, said the peak farm body is relieved that politics have been put aside in the interests of Australia's economic future. He went on to say, 'This agreement is a game-changer for Australian agriculture.' With that backdrop, in Central Queensland we can look forward to tariffs being eliminated on barley and sorghum. Beef exports tariffs of 12 to 25 per cent will be totally eliminated over the next nine years. Dairy tariffs up to 20 per cent will be eliminated in four to 11 years. There will be rapid tariff reductions on seafood, sheep meat, pork and horticulture, including macadamia nuts. It is certainly good news for my electorate, especially primary producers in the Central Highlands and the citrus growers in North Burnett and Wallaville.

Industry in Gladstone will benefit because China is our largest market for resources and energy products. Last year, Australia exported more than $80 billion worth of resources, energy and manufactured products to China. The FTA will immediately see 92.9 per cent of these products enter China duty-free. Most remaining tariffs will be removed after four years. When the FTA is fully implemented, 99.9 per cent of our resources, energy and manufacturing products will enter China duty-free. Coal, a big export product from my electorate, has a tariff on it and that will be reduced. There is a tariff on coking coal that will be reduced over a three-year term, along with the tariff on thermal coal.

I would like to congratulate several people, but most of all Minister Andrew Robb for his role in securing benefits for Australia under the China-Australia Free Trade Agreement. This has been worked on over many years. I would also like to thank Senator Penny Wong and past ministers from the Labor government, Simon Crean and Martin Ferguson. There was good support from Bob Carr and, of course, Bob Hawke. I congratulate everyone involved in this free trade agreement. I look forward to seeing the effects of the China-Australia Free Trade Agreement as businesses in my electorate make use of the improved trading conditions. It does not stop with the signing of the agreements. They still need to be worked on, but the groundwork is done for us to succeed and reap value from this free trade agreement. I commend the bill to the House.

Mark Coulton (Parkes, National Party) Share this | Link to this | Hansard source

I would like to take a few moments to comment on the Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015 and cognate bill. To me, this is one of the most memorable bills I can remember coming through this place in almost eight years. It is something that has been spoken about for some time. It is something the people in the electorate of Parkes have been looking forward to for some time.

The electorate of Parkes is an export oriented electorate, with a large amount of agriculture, produce and minerals coming from the area. I know it has been a great frustration to producers in my electorate that the great market to the north was somewhat impeded by tariffs. In the last few years, New Zealand particularly has had an advantage because of their free trade agreement. We have things like a reduction on beef of between 12 and 25 per cent within nine years, 12 to 23 per cent on sheep meat within eight years, frozen sheep meat offal is to be reduced within seven years, and, as well, there are the hides and skins. The dairy at Dubbo is doing great work in trying to grow a market into China. They and all of the others will welcome this agreement. Businesses like Fletcher International abattoir at Dubbo, which produces a large amount of sheep meet that goes to China, will now be able to compete on a level playing field with our cousins over the ditch in New Zealand. That is going to be of great benefit to the people of western New South Wales.

Coupled with the free trade agreements with South Korea and Japan, and the upcoming Trans-Pacific Partnership, at last we are starting to see trade liberalisation on a scale that will put Australia at the centre of the large markets in our region and around the Pacific. To Australia, as an export oriented country, and to the export oriented area I come from, that is a good thing. The world has become a smaller place. In my electorate we now have farmers harvesting grain and marketing it on their smartphones as they are sitting in their headers. The world has become a much smaller place, and these free trade agreements, and this one in particular, will help us to cope with that.

I think the next challenge will be an agreement with India, a large emerging market to our north, a country that is growing and pulling itself out of poverty. They will have a need for access to the produce we grow and they will be looking for markets for things they manufacture. This is a significant milestone. It is a great tribute to many people. The final hurdle was overcome by Trade Minister Andrew Robb. I have great admiration for Andrew Robb. I think he has done a great job. Also, I congratulate the opposition for their agreement. I was disappointed to see the union campaign on the labour access issue. I believe that those concerns can now be put to bed. Australian workers can feel comfortable that their jobs are not at risk and that the upside of this is that it will lead to more employment and opportunities for the Australian people. I commend the bill to the House.

Scott Buchholz (Wright, Liberal Party) Share this | Link to this | Hansard source

I rise to speak on the Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015 and cognate bill. Entering the chamber at the moment is no less than the

I saw a recent article stating that, given his achievements, if Minister Robb were an athlete he would have won gold for Australia in the 100 metres and then the 200 metes, the 400 metes and the 800 metres, which would be a magnificent athletic feat in an Olympic arena, and his efforts are no less of an accomplishment. All acknowledgements should go to you for what has evaded so many governments before ours. Congratulations to you, Minister Robb, as you enter the chamber to deliver your wrap-up on this significant bill.

The IMF recently has put out some global growth forecasts, and I think there have been 15 downgrades of growth forecasts. We are looking closer to two per cent over the forward estimates. But the constant in their formulaic equation is that the world needs growth, and the majority of that growth is going to be driven from China. So it should not be surprising to anyone that a country like Australia would be looking for closer ties with such an economic powerhouse, which is widely tipped to take over from superpower America. It is not a matter of if; it is a matter of when. All international commentators are united in the position that China is a growing powerhouse.

I associate myself also with the comments of the previous speaker, who spoke about where the next opportunity lies after China, that being India. I suggest that that is a real opportunity for our country.

In having a look at why it took so long for the government to get this deal across the table, looking at the Australian Labor Party and their relationship with the Australian union movement from afar it perplexingly looks like the two are so desperately interwoven that the two are now indistinguishable from one another. With an agreement like this, with so many up-sides for my electorate and for the beef and dairy sectors—which I want to get back to before I conclude—we wonder why the Australian Labor Party, coupled with the Australian union movement, which ran a national ad campaign, wanted desperately for this free trade agreement to be stopped. You can only make the assumption that is not that dissimilar to the assumptions that have been made in the current royal commission on union corruption, union coercion, union thuggery, and union intimidation. These are the tools of trade of these two parties. They are now interwoven and inseparable from each other, so we should not be surprised that we saw a Labor anti-fair-trade agreement which used the tools of coercion, intimidation, bullying and scare tactics.

Closer to my electorate of Wright, the Stanbroke pastoral company have their processing plant in the Lockyer Valley. They are outstanding performers. They stand to benefit personally, as do the workers of that company, as a result of this free trade agreement. Tariffs of between 12 and 25 per cent will be eliminated within nine years, including the elimination of the 12 per cent tariff on beef offal within four to seven years. You might think, 'Beef offal—so what?' but that is up to 25 per cent of the beef carcass. China's demand for high-quality beef is growing rapidly, driven by a growing middle class. The Stanbroke pastoral company, based in the Lockyer Valley, are currently sending boxed meats to China. This agreement will only boost their ability to expand the export of beef into China.

I want to touch briefly on our emerging dairy industry as well, with the benefits that will flow through to my dairy farmers as a result of the reduction in tariffs around infant formula, fresh milk, ice cream, liquid milk, cheeses, butters and yoghurts within nine years. Mind you, we lag behind New Zealand in these negotiations. We would not be in this position if those on the other side of the House, when in government, were more proactive in this area. It makes my opening comments to Minister Robb all the more heartfelt. I have some of the largest horticultural growers in the country in my electorate. They, too, will stand to benefit from this trade negotiation—farmers like Matt Hood of Rugby Farm, Fabian Carnell of Mulgowie, Robert Hinrichsen and family, and Richard Gorman of Kalfresh. Their tentacles already extend into the Asian market. As we work through the bio-sanitary issues around product trade, it will only provide greater certainty for small businesses and farmers alike in my electorate of Wright.

There is much more I could say about the free trade agreement in the time that has been extended to me, but I close by encouraging all of my farmers and all those in the electorate of Wright to take advantage of the opportunities that have been presented as a result of these wonderful negotiations. I commend the bill to the House.

Andrew Robb (Goldstein, Liberal Party, Minister for Trade and Investment) Share this | Link to this | Hansard source

I rise to conclude the debate on the Customs Tariff Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015. The bill contains amendments to the Customs Tariff Act 1995 that will implement Australia's tariff commitments in the agreement. These amendments are complementary to those contained in the Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015.

Firstly, I would like to thank all of those who have contributed to this debate. This is a truly historic agreement for our country. I am pleased that so many members have highlighted in some detail the wide array of benefits on offer. I also again acknowledge those opposite for the bipartisan support they are providing both to these bills and to the free trade agreement. Given the bipartisan support that this agreement has secured in this place, any continuation of the hugely dishonest campaign that has been waged against the free trade agreement by the likes of the CFMEU and the ETU would expose just how totally disingenuous it is.

Negotiations on the China-Australia Free Trade Agreement began in 2005. It is worth reflecting on the significant changes that have occurred in both our economies in those 10 years. In 2005, Australia was at the start of the mining boom and the global financial crisis was beyond the horizon. China was our third largest merchandise export partner. Today, China is our largest export market and our largest trading partner overall, with our two-way trade now worth around a staggering $150 billion. Our trade with China accounts for around 23 per cent of all our trade. China's economy has also changed significantly since that time. During the course of these free trade agreement negotiations, China has become the world's second largest economy. Tens of millions of Chinese have been lifted out of poverty, and its middle class has expanded substantially. China has also embarked on significant reforms to its financial system. Its economy is in transition from a manufacturing and investment focus to a more consumer and services based focus. Just this week, we saw how retail consumption in China was up 10.9 per cent on the previous year, which is substantial given the Chinese retail market is worth around US$4 trillion.

This puts into some perspective the scale of new export opportunity that is opening up across a wide array of goods and services. Notwithstanding this record of extraordinary growth and activity over the last 10 years, the world knows that China still has a long way to go to reach its potential. That is why this free trade agreement is so important. The relationships, both ways, that we have struck to date are added enormously to by this free trade agreement. It does mark the beginning of a whole new phase of opportunity for Australia—and for China, for that matter.

For example, Australia is extremely well placed to help in some way to meet China's growing demand in areas such as premium food—whether it be dairy products, quality beef, fruit and vegetables, seafood, wine or processed food—and in value-adding manufacturing and across myriad services, including secondary school education, university and vocational training, financial services, health, hospital and aged care services, tourism and hospitality, construction, architecture and design, project management, water management, agricultural genetics, irrigation, environmental services and logistics—to name but a few.

This agreement positions Australia to take advantage of these emerging opportunities now and into the future. ChAFTA represents an agreement of outstanding quality between these two highly complementary economies. My Chinese counterpart, Minister Gao Hucheng, has described the deal as 'the most liberalising trade agreement China has ever signed'. This is an achievement that speaks volumes about the commitment of both sides to maximise the potential in the trade and investment relationship. China has recognised, as it moves to a consumer based economy, that it needs the expertise of countries like Australia, especially across services, food production, food processing and high-end manufacturing. Our brand in China—and in much of Asia, for that matter—is gold standard when it comes to our service offerings across literally hundreds of services. China needs that expertise to help bring its own population, in a comprehensive way, to the same level of world-class service provision across lots of areas. It also means that Australian businesses large and small have been given the opportunity for first-mover advantage because we have concessions that no other country is yet to receive. Notably, it also affords Australia most favoured nation status in services and investment, which means Australia is guaranteed to secure better concessions that China affords to any other country in the future in these areas of services and investment.

I have been pleased to hear the almost endless supportive comments from businesses and industry bodies regarding the free trade agreement. For example, Brendan Pearson, Chief Executive of the Minerals Council of Australia, said:

The trade agreement with China is an unambiguously good deal for Australia. It is a high quality agreement that will deliver stronger economic growth, more jobs and better living standards.

National Farmers' Federation President Brent Finlay said:

ChAFTA is a game-changer for Australian agriculture: providing unprecedented access to the world’s second largest economy and underpinning the competitiveness of many of our key agricultural exports.

Noel Campbell, President of Australian Dairy Farmers, said recently:

If the ChAFTA is ratified this year, the dairy industry alone will see a growth in job creation across the value chain. This means more jobs for farmers and more jobs in processing plants and logistics. We expect that around 600 to 700 jobs will be created within the first year of ratification. The flow-on effects of this growth would undoubtedly benefit the rural and regional communities where dairy plays an important role.

ChAFTA provides Australia with a competitive advantage over our major competitors, including the United States, Canada and the European Union. It also levels the playing field for Australia with regard to certain commodities, putting us on the same footing as or on an improved footing compared with New Zealand, Chile and South-East Asian nations that currently have free trade agreements in place with China. For our resources and energy sectors, ChAFTA eliminates all tariffs of up to eight per cent within four years, including for coal, worth around $8.3 billion within two years. ChAFTA provides greater certainty for our exporters by locking in current zero tariffs on major resources and energy products, including iron ore, gold, crude petroleum oils and LNG. Under ChAFTA, China will eliminate tariffs on 99.9 per cent of our resources, energy and manufacturing exports to China.

I particularly want to highlight the benefits of ChAFTA for Australia's services industry. We know services are an increasingly important part of our economy; 75 per cent of our GDP is derived from services, yet only 17 per cent of our exports. The opportunity gap is enormous. It is perhaps less well known that the Chinese services sector is now in fact larger than its manufacturing sector. But China has about 52 per cent of its GDP coming from services; the First World countries are up at around 75 per cent, as Australia is. And its services sector is already a major driver of GDP growth. China is already Australia's largest services export market, worth about $8.2 billion in 2014. And under this agreement we have the potential to very, very substantially grow our services trade with China, creating new jobs and prosperity for Australia and, in particular, new investment opportunities for our small and medium businesses to, again, properly develop their expertise and their service business into a market of 1.4 billion people.

Let's look at financial services, which present an enormous opportunity for Australia. The Financial Services Council estimates that this agreement could potentially add $4 billion to our economy and create 10,000 jobs in the financial services sector by 2030 in Australia—10,000 new jobs in one sector alone. With the advent of the digital age and much greater and cheaper airline connectivity, combined with the significant advantage associated with being in the same time zone, an opportunity for small and medium businesses to establish a presence in China is now highly feasible. In ChAFTA, China has offered Australia its best ever services commitments in a free trade agreement beyond greater China. Most valuably, this includes new or significantly improved market access for Australian banks, insurers, securities and futures companies, law firms, professional service suppliers and education service exporters, as well as in health, aged care, construction, manufacturing, telecommunications and so much more.

As Australia's first minister for investment I am pleased that this agreement improves opportunities for investors in both countries. Chinese investment in Australia has been growing strongly in recent years, up from $2 billion 10 years ago to around $65 billion at the end of 2014. ChAFTA will promote further growth of Chinese investment into Australia, in particular by liberalising the Foreign Investment Review Board screening threshold for private Chinese investors in non-sensitive sectors from $252 million to just over $1 billion.

We should not underestimate the importance of the headturning effect of this agreement in China. Since our governments announced the conclusion of ChAFTA negotiations in November last year we have seen increased interest from Chinese businesses and investors looking for partnerships and opportunities in Australia. Australian businesses, too, are looking to seize the opportunities on offer for partnerships and investments in China. And, as I mentioned earlier, the opportunity for small and medium businesses is profound. It is an enormous opportunity to grow so many areas of world-class expertise, to grow our market into a market of an extra 1.4 billion people, compared with trying to further develop opportunities or find opportunities in a market of 23 million people.

In August I led a delegation of 35 Australian CEOs to Beijing. They and their companies are hard at work driving business that will boost prosperity in Australia for years to come. On that trip, vitamin supplements manufacturer Blackmores and meat exporter Sanger Australia each signed agreements with JD.com to sell their products on China's largest online shopping website. I think something like 300 million people are currently signed up to JD.com. It is a massive worldwide online shopping website. Australian products and services are meeting the needs of China's middle class, enabled by e-commerce and other emerging technology, and ChAFTA will help our competitive edge. The sense of anticipation within the Chinese business community was palpable. In support of this observation, I acknowledge the many contributions to this debate by members in this chamber. Some typical examples include that of the member for Lyne, Dr David Gillespie, who said:

Even the announcement of the trade agreement … has led to hundreds and thousands more cases of wine leaving the Hastings valley on the mid-north coast in the north of the Lyne electorate and heading to China.

The member for Ryan, Jane Prentice, said:

With the slowdown in mining, the service economy share of exports to China will only grow further. For the service economy, this agreement is crucial.

The member for Longman, Wyatt Roy, said:

… when we look back in 20, 30, 40 or 50 years time—

and he may well be here in 50 years time, which is very good—

the idea of starting an Australia business with the intention to sell to a marketplace of just 23 million people will seem somewhat archaic and retro. The opportunities the China-Australia Free Trade Agreement will unlock mean … we will have access to billions of people …

The member for Eden-Monaro, Peter Hendy, talked about Australia's oyster coast in his electorate, which has 'expectations of sales tripling', as the existing tariffs on oysters will be eliminated under the China-Australia Free Trade Agreement. The member for Bass, Andrew Nikolic, noted the innumerable economic, social and cultural benefits of the FTA for both countries, adding:

Foremost among these will be its anticipated critical contribution to regional strategic security.

Finally, the member for Hume, Angus Taylor, said:

… I think history will see, in 20 years time, that these are the most profound changes of this era of Australian history, because trade integration is the beginning of a much deeper integration with countries that will shape the world in the coming years, and we absolutely must be part of it.

I thank those members and many others who made comments along those lines.

The customs legislation we have debated is the only legislative change that parliament needs to approve for ChAFTA to enter into force. The Customs Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015 contains amendments to the Customs Act 1901. These amendments implemented Australia's obligations under chapter 3 on rules of origin, as set out in the China-Australia Free Trade Agreement. These rules are essential for the purposes of determining whether goods imported from China are eligible for the preferential rates of customs duty under the free trade agreement. The bill also contains amendments to include relevant obligations on Australian exporters and producers who wish to access preferential treatment under the agreement when exported to China. Certain powers are also conferred on authorised officers to examine records and ask questions of exporters or producers of goods exported to China in order to verify the origin of such goods.

The Customs Tariff Amendment (China-Australia Free Trade Agreement Implementation) Bill 2015 contains amendments to the Customs Tariffs Act 1995 that will implement Australia's tariff commitments set out in the China-Australia Free Trade Agreement. The amendments in the two bills are complementary. The associated Customs Regulations, the Foreign Acquisitions and Takeovers Regulations and Life Insurance Regulations will also require amendment in due course. A ministerial determination under the Migration Act is also required. Implementing this agreement will require only minimal changes to Australia's current policy settings. It is crucial that we pass these bills without delay so that this agreement can enter into force as soon as possible. Many business leaders have urged early entry into force to allow the benefits, amounting to hundreds of millions of dollars, to start to flow.

I would like to acknowledge the work of JSCOT in conducting its extensive inquiry into ChAFTA. I would particularly like to acknowledge the former chair of JSCOT, the member for Longman, in chairing this inquiry and congratulate the member for Hume on his election as chair of JSCOT and for tabling the committee's report earlier this week. Members of the committee held public hearings around the country, which allowed many organisations, companies and individuals in the community to have their say on this important treaty. I welcome JSCOT's majority recommendation that binding treaty action be taken to implement the China-Australia Free Trade Agreement. The committee made a number of other recommendations regarding implementation of ChAFTA after entry into force, which the government will consider closely in due course.

The China agreement rounds out the third in a trifecta of trade agreements the government has concluded with our three largest export markets. Already Australian businesses are seeing the benefits of our agreements with Korea and China. Together these agreements have the potential to transform our economy, and the Trans-Pacific Partnership, including 12 countries, covering 40 per cent of global GDP, promises to further enhance the competitiveness of our economy and deliver new markets and generate new jobs.

Finally, it is important to note that this outcome was the best part of a decade in the making. In this regard, I would like to acknowledge the contributions made by my predecessors on both sides of the House. Negotiations commenced under the Howard government, when Mark Vaile was Minister for Trade. Mark Vaile was followed by Warren Truss, Simon Crean, Craig Emerson and Richard Marles, all of whom share in this outcome. Pleasingly, this demonstrates bipartisan support across successive Australian governments for our relationship with China.

I would also like to acknowledge all of those officials and negotiators from my department who have dedicated so much time, effort and professionalism over a long period to help secure this outcome for Australia. After 10 years, it is rather a large alumni. It includes Jan Adams, who has provided outstanding leadership, along with her highly talented team. It includes our Ambassador to China, Frances Adamson, and her predecessors. I would also like to thank my own staff for their efforts, their great dedication and their great support.

It is with great pleasure that I commend these bills to the House.

Question agreed to.

Bill read a second time.