Tim Wilson (Goldstein, Liberal Party) Share this | Link to this | Hansard source

It's my great privilege to be able to get up and speak on this motion, because the TPP-11 is one of the great achievements of this government. When it comes down to it, and anybody who was there would remember it, once there was an abandonment of the TPP by US President Donald Trump there were so many people who said: 'Let it go. It doesn't matter. We're not prepared to stand up for Australian jobs or workers or opportunities, because there simply isn't the international appetite to progress this.' Frankly, that was particularly coming from those opposite.

What we then saw was Shinzo Abe, the Prime Minister of Japan, and Malcolm Turnbull, the then Prime Minister of Australia, come together to say, 'We are going to deliver this deal for Australia, for Japan, for the countries in the Asia-Pacific region.' They were completely countercultural; they were scoffed and mocked by those who simply thought they understood trade policy better because nobody could understand Asia except the Labor Party. They went on and delivered to the world one of the most historic regional trade agreements ever; amongst 11 countries in our region, they've built the foundations of economic governance across the Asia-Pacific.

The TPP-11 is a foundational building block in the economic opportunity and security that will deliver for this country in years to come. And not only did the coalition government deliver; they did it against a backdrop of the scoffing, the snarling and the sneering of our political opponents, who simply wanted to go with the fashion and the tide. And what is the outcome? What we know is that in 2017 nearly one-quarter, or 24 per cent, of Australia's total exports, worth nearly $92 billion, went to TPP-11 countries. This is set to grow, and will continue to grow, as tariffs tumble and as we see reform and opportunities through increased market access for so many goods and, critically, services under this agreement.

Recent modelling undertaken by economists in Brandeis International Business School and John Hopkins University shows Australia is forecast to see $15.6 billion in net annual benefits to national income by 2030—an incredible opportunity and incredible growth for the Australian people. But let's not think about this just in terms of big numbers, though they are. What those numbers translate to are jobs. What those numbers translate to are new opportunities for Australians to get a step up on the economic ladder and create pathways to be able to live full and successful lives. That's why the Minerals Council of Australia released modelling that was conducted for Australian industry associations that found:

Australian workers, jobs and business will benefit significantly from the … (TPP-11) trade agreement, with increased national income, exports, investment and wages …

Critically, what this agreement does is not only provide the foundation for those sectors of the economy where the vast majority of Australians work but also where Australia can actually compete. We can compete because we're competing on the basis of skills and in areas of high technology, high education standards and high proficiency, particularly in the space of services. Coming from the great state of Victoria, where education services are our biggest export, this agreement provides the market opportunities for us to grow that potential through access to Australian universities and vocational institutions to deliver education services, including online educational services, amongst the countries that are covered. This provides the pathway to see Victoria thrive and grow further.

It isn't just in education services. Financial services are another big export opportunity not only because of Australia's integrity and our financial system but, more critically, because of the legal underpinnings that make it such an attractive destination for capital with guaranteed market access for investment advice and portfolio management services, and collective investment schemes as well as insurance for maritime shipping and international commercial aviation and freight. These may not be sexy headlines that make the front page of the paper, but they make a material difference in terms of our capacity as a country to continue to drive the uninterrupted economic growth that we have enjoyed.

For thousands of Australians who go off and study law every year, there'll be new opportunities to work in TPP-11 countries. It'll be the same for engineers and for those in transport and logistic services. The opportunities are endless. They're based on the horizons, and there is no limit to the bounds of what this great nation can achieve.

Matt Thistlethwaite (Kingsford Smith, Australian Labor Party, Shadow Assistant Minister for Treasury) Share this | Link to this | Hansard source

There's no doubt that trade benefits the Australian nation and improves living standards for our citizens. As an island nation, Australia is better off because of the trading relationship that we have with our neighbours and the world. It's produced higher living standards than most other countries throughout the world.

Labor has a very, very proud record of reform that's boosted trade and investment, and created jobs and increased the incomes of all Australians. Going back to the Whitlam government and that great legacy that they left, it was a beginning which opened up our economy in the wake of the sleepy years of previous Liberal administrations by reducing tariffs. There were massive reductions in tariffs that made our economy more competitive at that time. That was followed up by the legacy of the Hawke and Keating governments. Again, after very little reform in the Fraser years, the Hawke and Keating governments made a massive difference to the strength of the Australian economy, particularly through multilateral trade. We all know that they reduced tariffs; they opened up our economy to competition, particularly in service sectors; and they introduced Austrade. It was the Hawke government that established Austrade—that outreach for Australian businesses hoping to trade overseas. And they did this with cooperation from the union movement to ensure that the benefits of trade were shared equitably, that workers increased their skills and, importantly, that incomes of all Australians continued to grow during that period when we were liberalising our trading environment. Labor ensures that when we do these sorts of things the benefits of trade are shared equally amongst our citizens.

We all know that Australia has a massive opportunity in terms of the development that is occurring on our doorstep, within our vicinity, in Asia over the course of the next few years. It's forecast that Asia's middle class will triple to 1.7 billion people by 2020. As more people move into the middle class, they develop a thirst and a hunger for better services. They move away from traditional manufacturing based economies—based on lower wage levels and producing products that can undercut other competitors—and an agricultural society to a consumption based one where services begin to come to the fore. So products like agricultural products, aged and healthcare services, education and tourism services are going to boom in Asia over the course of the next few decades. Australia is uniquely positioned, with our proximity in Asia, to capitalise on the economic opportunity through trade that will come with our Asian neighbours. We can do this through increased investment in Asia and increased trade, and that will grow our economy and create jobs.

Other nations are aware of this and they're developing strategies to capitalise on this opportunity that is occurring in Asia, but, at the moment, Australia, as a nation, does not have an economic strategy to engage with Asia and to put ourselves in a position to capitalise on its growing middle class. That is why Labor has developed the future Asia strategy—to ensure that we capitalise on these economic opportunities within our region, to grow our economy and to increase living standards. We've announced some of the elements of that strategy around improving economic opportunities, including increasing Asian literacy on Australian boards and tapping into the great Asian diaspora that live in Australia. We've said that we'll implement the 10 key recommendations of the Varghese report into India that seems to have been left on the shelf by this government. We're looking at internships between Australian companies and Asian companies. All that revolves around improving economic opportunities and trading opportunities in the Asian century.

We'll do this by making sure that all Australians benefit. We won't sign agreements that have ISDS clauses in them, because we know that they disadvantage Australia. We won't waive labour market testing for contractual service providers, because we know that those sorts of clauses disadvantage Australians. We'll establish an Australian skills authority—an independent labour market testing body to determine genuine skills needs and to restrict temporary work visas so that they're only available where there is a genuine skills gap. We'll introduce more transparency and accountability around our trade agreements through the JSCOT process and an independent national assessment to ensure that any trade agreement that Australia signs up to is beneficial to Australians and benefits all Australians in our economy. I urge all our members to support the bill that's been introduced by the shadow minister for trade.

Nicolle Flint (Boothby, Liberal Party) Share this | Link to this | Hansard source

I'm delighted to speak on this motion today, because our government is doing so much to support and encourage small and medium businesses across Australia. Just last week the Prime Minister announced that our government will deliver its tax relief five years earlier than planned. We are fast-tracking our tax cuts to support the more than three million small and medium businesses that employ nearly seven million Australians. In my electorate of Boothby, these tax cuts will support more than 14,000 small and medium businesses to invest and employ. Our changes mean that small and medium businesses will have a reduced tax rate of just 25 per cent by 2021-22 and unincorporated businesses will have a 16 per cent tax discount sooner.

In addition to getting the tax rate down, we have extended the $20,000 instant asset write-off, first introduced in the 2015-16 budget, for a further 12 months and we have lifted the small business entity turnover threshold from $2 million to $10 million. We are doing these things because we know that lower company tax supports more investment, higher productivity, more jobs and higher wages. Our plan gives Australian businesses a fair go, and it is an important investment in the future economic growth of our nation. Of course, we know that a strong economy means we can guarantee the essential services, like education and health care, that all Australians need.

Our tax cuts are not the only action we are taking to strengthen our economy. Our government is also ensuring that Australian businesses and Australian farmers have access to more global markets so that we can create new jobs and keep our industries strong. Under our government, we have established free trade agreements with Japan, Korea and China, and this week we are ratifying the Trans-Pacific Partnership, which is one of the most comprehensive trade deals ever concluded. The TPP-11 will eliminate more than 98 per cent of tariffs between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam. These 11 countries have a combined GDP of more than $13.8 trillion and close to 500 million consumers. For the very first time under the TPP, Australian exporters will have preferential access to two of the world's top 20 economies in Canada and Mexico.

The TPP is good news for our economy, farmers, manufacturers, service providers, small businesses and exporters. In 2017, nearly one-quarter of Australia's total exports worth nearly $92 billion went to TPP-11 countries. This can only grow as tariffs are eliminated under the TPP. The TPP-11 will provide guaranteed levels of access to services, including in the education, financial, transport and logistics, mining and health sectors, as well as improving regulatory regimes for investment—notably in mining and resources and telecommunications. In addition, this agreement will deliver benefits across the board, including for beef and sheep farmers, dairy producers, canegrowers, sugar millers, grains exporters, cotton growers, wool growers and winemakers. This will be transformative in my home state of South Australia, given the importance of agriculture industries like beef, wool, lamb, grains and, of course, our fabulous wine industry. In my own electorate I have the wonderful Patritti Wines in Marion, which is Australia's only family-owned suburban winery. It is exactly the sort of business we want to see benefit from the TPP-11 through increased access to a range of markets.

The story of Patritti Wines is really quite extraordinary. The winery was started by an accidental migrant to Australia, Giovanni Patritti, who landed in Adelaide in 1926 instead of landing in America, where he thought he was going. Being a fabulous migrant and with a fabulous migrant story, like so many, he made the best of his situation, and, 90 years later, Patritti Wines is a very successful family-owned and operated winery that is recognised not only for its wines but also for its non-alcoholic grape juices. Patritti has been able to take its fantastic wines and juices to the world, particularly into Asia, and our government's commitment to the TPP will support its focus. It is critical that we ratify the TPP as soon as possible to lock in the forecast benefits and provide every opportunity for our producers and exporters to secure new market access for amazing family-owned businesses like Patritti Wines in my electorate.

Our government will continue to pursue a trade agenda that, together with other measures like tax cuts for small and medium businesses, contributes to a strong economy and creates Australian jobs. That's our plan and that is what we are delivering.

Matt Keogh (Burt, Australian Labor Party) Share this | Link to this | Hansard source

The Labor Party and the labour movement have a proud record of reform that has boosted trade and investment, created new jobs and increased the incomes of Australians. This proud history goes back to the days of Whitlam, Hawke and Keating. We've done this because we know that, as a trading nation, Australia's economic success is underpinned by our ability to sell our goods and services overseas. Key to this is making sure we make the most of the continuing rise of Asia. Two in every three dollars we make from trade comes from Asia, and this is likely to increase in the years ahead. We need to grab with both hands the opportunities our Asian neighbours put forward to us.

When we were last in government Labor entered Australia into negotiations on the original Trans-Pacific Partnership. As we know, Donald Trump withdrew the United States from that agreement earlier this year, effectively killing it. Its replacement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, is much smaller, and many of the more contentious sections of the original TPP as we knew it have been suspended.

Labor believes that all trade agreements should be the subject of independent economic modelling. However, the coalition has refused to do this. Fortunately, the Victorian Labor government has commissioned independent economic modelling of the CPTPP. This independent economic modelling indicates that this agreement will deliver modest economic benefits in the short term and has the potential for more economic gains in the longer term. The independent economic analysis concludes that, while the agreement does not benefit all sectors equally, critically, no sector or business would be worse off as a result. There are also potential strategic benefits to this agreement, as building stronger trade ties between the countries in our region helps to make us all more secure.

However, there are things in this agreement that Labor has concerns with, in particular the inclusion of investor-state dispute settlement provisions and the waiver of labour market testing for contractual service suppliers. The community doesn't support these clauses either. Yet these same clauses have been included in other trade agreements signed by the Abbott-Turnbull-Morrison government. Labor has made it clear that if we win the next election we will not sign trade agreements that include ISDS clauses and we will not waive labour market testing for contractual service suppliers. In addition, a Shorten Labor government, if elected, will remove these provisions from existing trade agreements including this one. The new New Zealand Labour government has shown how this can be done, negotiating bilateral agreements with four countries to remove the application of ISDS clauses in the CPTPP that was agreed by the previous conservative New Zealand government. The same approach can be used to reverse the waiver of labour market testing for contractual service suppliers. We do not support the inclusion of ISDS, as it has given foreign corporations rights in Australia that even Australian companies do not have.

We also believe that before a carpenter, an electrician or a plumber is brought in from overseas, employers should be required to ensure that there are no Australians who can do the job. This is why a Shorten Labor government, if elected, will establish an Australian skills authority, an independent labour market testing body to determine genuine skills needs and restrict temporary work visas so that they are available only when a genuine skills gap cannot be met by local workers. This authority will work in consultation with industry, unions, higher education and TAFE sectors as well as state and local governments to project Australia's future skill shortages and train Australian workers for those jobs. Fortunately, the agreement does include the eight core ILO conventions. This is a step in the right direction, although there is still more work to be done there.

Labor is also committed to improving the way that trade agreements are negotiated. Under a Shorten Labor government, if elected, the role of the parliament will be strengthened by briefing the Joint Standing Committee on Treaties at the conclusion of each round of negotiations and providing it with the government's statement of objectives for negotiation for consideration and feedback. We will also legislate to establish a system of accredited trade advisors from industry, unions and civil society groups who will provide real-time feedback on draft trade agreements during negotiations. Public updates on each round of these negotiations will also be provided and draft texts released, where feasible, in the interests of transparency.

Labor will legislate to require an independent national interest assessment to be conducted on every new trade agreement before it is signed in order to examine the economic, strategic and social impacts of any new trade agreement that may be implemented. But we don't have to wait for a new government to see these policies implemented. A private member's bill is now before the parliament. If passed, it would implement some of these policies so we can work towards a fair boost to trade and investment in Australia now.

John Alexander (Bennelong, Liberal Party) Share this | Link to this | Hansard source

I thank the member for Forde for bringing forward this important and timely motion. Allow me to start with a simple proposition: free trade is good. The more nations we can trade with, the more nations we can export to and the more goods and services we will have access to. Free trade also fosters friendship between countries. History has taught us that countries that trade with each other don't fight with each other. However, we are seeing on a global scale the tensions that arise when countries retreat towards protectionism and the damage that this can do to all parties. We must stand up for the principles of free trade and openness.

Trade has contributed one-quarter of Australia's economic growth over the past five years, with one in five jobs being trade related. The government will continue to pursue its firm commitment towards a free trade environment that has helped deliver an enviable record of economic prosperity and growth, job creation and a high standard of living. At a time when there is a questioning of the value of the international rules based approach to trade—an approach that has had bipartisan support in Australia and has underpinned our growth for decades—the TPP-11 is an opportunity to demonstrate our support for open, liberalised markets in the Asia-Pacific. The TPP enshrines these principles between 11 countries across the Pacific—Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam. These countries are our friends. Some could easily become our rivals if we do not work to foster our relationships. There are countries with which we have comparatively little trade, but that will increase exponentially when this treaty comes into effect.

The TPP-11 is one of the most comprehensive trade deals ever concluded. It will eliminate more than 98 per cent of tariffs for 11 countries, with a combined GDP of more than $13.8 trillion and close to 500 million consumers. Australia's farmers, manufacturers, service providers and small businesses—all exporters—are the big winners from this FTA because it will be easier to sell goods and supply services in a free trade area that spans the Americas and Asia. In 2017 nearly one-quarter of Australia's total exports, worth nearly $92 billion, went to TPP-11 countries. This will continue to grow as tariffs tumble under the TPP-11.

The TPP-11 is the first regional trade agreement to contain a dedicated SME chapter, which encourages small and medium enterprise participation in government procurement in TPP countries. The agreement also creates common, transparent trade and investment rules among TPP-11 countries, making it easier for small companies to navigate the region. Recent modelling shows Australia is forecast to see $15.6 billion in net annual benefits to national income by 2030. This sort of boost to our nation's income means more jobs, higher wages and greater investment into further areas of business and jobs growth.

Critically, the TPP-11 improves access to markets where Australia already has FTAs, such as Japan. For example, it will build on our existing bilateral FTA, accelerate reductions in Japan's tariffs on Australian beef and eliminate a range of Japan's cheese tariffs. This will add to the long list of countries this government has signed free trade agreements with, like Canada and Mexico. This gives Australian exporters preferential access to two of the world's top 20 economies for the first time. It's important that we ratify the TPP-11 as soon as possible to lock in the forecasted benefits and provide every opportunity for our producers and exporters to secure new market access opportunities under the TPP-11.

This government has signed more free trade agreements than any other government before it, and we are seeing the benefits, as our economy continues to grow. Our firm commitment to trade has seen the recent securing of key trade agreements with Indonesia and Peru. China, Japan and Korea all remained major export destinations for Australian goods and services in 2017-18. The free trade agreements with these countries and all involved with the TPP will continue to deliver tangible benefits for ordinary Australians for decades to come.

Maria Vamvakinou (Calwell, Australian Labor Party) Share this | Link to this | Hansard source

I rise today to talk on the motion moved by the member for Forde, noting that open trade and investment policies in global, regional, multilateral and bilateral contexts are important to the Australian economy as they do provide opportunities for Australian businesses and they do help create jobs. There's no disagreement with this view. However, the TPP—both in its first incarnation and now in its second incarnation as TPP-11—continues to be controversial, raising strong opposition from within the Australian community. This is despite the promise of the huge benefits to the Australian economy.

When I spoke on the original TPP in this place in February 2016, I raised the concerns that were also being raised by members of the Australian community, suggesting that that TPP would have negative impacts on our national interests in the area of labour market testing and also in undermining our sovereignty. I said then that the Australian people expect our free trade agreements to create job opportunities for them so they too can share in the prosperity that is being promised. They don't want a free trade deal that denies them job opportunities as does, in this case, the TPP-11, because it abolishes labour market testing and carries no enforceable protection for labour rights and workers. They certainly do not want a free trade deal that undermines our sovereignty and our democratic processes by allowing corporations to bypass national courts and sue governments and restrict government regulations of essential services. These are areas of great importance to the Australian community.

The Australian trade unions have also been concerned about the TPP-1 and now the TPP-11. Often we will praise the benefits of free trade agreements and ignore the negative ramifications at our peril, as was the case, I remember, with the then Thai free trade agreement some years ago. Locally in my electorate, many of my constituents knew that this was a bad deal for our local car manufacturing industry. Unions and others in the community advocated and appealed to the then government to take measures to protect our car manufacturing industry, but that was to no avail. The decision by Ford Australia to cease production of car manufacturing in 2016, as we all know, led to the end of car manufacturing in this country, and, of course, Ford was our biggest employer locally.

The Australian Manufacturing Workers' Union stood solidly at the side of our local car-manufacturing workers. Alongside the rest of us, they fought hard to deal with the devastating impact that the job losses that followed had on my community. Today, I want to quote Tony Mavromatis, the state secretary of the Australian Manufacturing Workers' Union, who recently wrote to me about his members' concerns regarding TPP-11. He says:

Free trade agreements must not allow big business to exploit vulnerable temporary visa workers and undermine the standards we fight for every day.

The Government's ability to use its purchasing power to provide safe, secure jobs and support local business must not be undermined or comprised; and our sovereignty must not be traded away.

Other unions are also raising similar concerns about TPP-11, because, like its predecessor, it still carries these controversial clauses. It still carries the investor-state dispute settlement clause, which many perceive to be an opportunity to undermine our national sovereignty. The government should have been batting hard on Australia's behalf on these key areas of concern, because they go to our national interests as much as the trade opportunities do and opening up markets does.

Of course, this doesn't make me un-Australian, nor should I feel any shame, as has been suggested by some colleagues in this place at other times during this debate. I shouldn't be ashamed because I recognise the legitimacy of and share the concerns raised by many in the Australian community and, therefore, would have liked to have seen the member for Forde's private members' motion call for this parliament to make the changes necessary to TPP-11 so that we can get the best deal for Australia, give Australian workers a fair go and protect our national sovereignty. Unfortunately, the government doesn't appear to be too concerned about these important issues, and this private members' motion is silent on these issues. In contrast, a future Labor government would not sign new agreements with such provisions and would seek to remove ISDS clauses from the TPP-11 by negotiating side letters with other nations, as the New Zealand government recently has been successful in doing.

Craig Laundy (Reid, Liberal Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.