Rick Wilson (O'Connor, Liberal Party, Shadow Assistant Minister for Trade) Share this | Link to this | Hansard source

It gives me enormous pleasure today to stand to speak in support of the motion moved by the member for Page, the shadow minister for trade and tourism.

The European Free Trade Agreement is going to be a critical development in Australia's trading relationship with the rest of the world. The European Union is our second-largest trading partner at the moment, but unfortunately there is a massive trade imbalance, with the European Union exporting a great deal more of its products and goods and services to Australia than we export to them. The total two-way trading partnership is worth $74 billion. The European Union, as a bloc, has a population of 450 million people, a great number of whom are high-income earners who are willing customers. We certainly need to be able to access those customers.

When I was a young farmer growing up in the 1980s, studying economics and marketing at university, the European Union was often used as an example of what not to do when it came to trade. Their international tariffs, particularly in agriculture and agricultural goods, restricted the access of Australian farmers to the European market. It also led to inefficiencies in their own systems and, really, at the end of the day no-one was better off other than some European farmers who received enormous subsidies for their products.

Hopefully, and I'm sure in this modern world, we have moved beyond those old protectionist policies, although I do understand that the European Union are looking to protect some of their industries, farmers and other trades with carbon tariffs. That is certainly something that I'm sure the current government will resist with the utmost vigour when it comes to the negotiations because a tariff—whether it be a carbon tariff or a financial tariff—is a tariff. Free trade agreements are about reducing tariffs, reducing trade barriers and allowing the efficient flow of goods and services throughout the global economy. So carbon tariffs are certainly something that I'm sure an Australian government, of whatever stripe, will never agree to.

I want to talk a bit about the history of the coalition's record in government when it comes to free trade agreements. Since 2013 we had signed 11 free trade agreements, lifting the share of Australia's global trade from 27 per cent in 2013 to 80 per cent by the time we left government in May 2022. The European free trade agreement will lift that number to 90 per cent. I certainly hope that the current government is focused on getting the best outcome and getting on with this deal, because it is a very significant market and will be a very significant deal going forward. I'm looking forward to seeing the government come up with the best possible deal for Australia.

I have a couple of statistics on the European deal. The European Union has a surplus of $23 billion for goods and $14 billion for services exported to our country. That is their surplus. We sell to the EU $4 worth of food per person and they export to Australia $200 worth of food per person. Given that Australia is one of the most self-sufficient food-producing nations in the world, that is a number that is unacceptable. I'm sure that with the upcoming negotiations we will see that number come back into balance.

I want to just touch on some of the numbers that other countries have achieved through their free trade agreements. New Zealand has access for 163,000 tonnes of sheepmeat and Australia has a quota of just over 17,000 tonnes. I mention that in particular because I am a Western Australian representing in this place Western Australian farmers, and our sheepmeat industry is a very important part of the rural landscape. With the current government's policy of phasing out the live export trade we absolutely need access to every market we can get.

Luke Gosling (Solomon, Australian Labor Party) Share this | Link to this | Hansard source

The government aims to conclude a comprehensive and ambitious trade agreement with the EU as soon as possible. The Prime Minister brought negotiations back on track during his June visit to Europe. In Madrid the Prime Minister and the EU commission and council presidents committed to making progress on an EU free trade agreement. It was also a key focus of the Minister for Trade and Tourism, Senator Farrell, when he visited Geneva. It was great to see our federal trade minister in Darwin at the Australia Indonesia Business Council meeting where we again talked about trade and getting the most out of the AI-CEPA agreement with Indonesia. But I digress.

The deal with the EU is critical. We would like to have an agreement by mid next year. The latest round of negotiations took place between 17 and 21 October. A trade agreement with the EU would help to diversify our trade relationships and expand opportunities for Australian exporters. This would be a significant free trade agreement, as the member for O'Connor, the previous speaker, said. It is our second-biggest trading group. The EU is a massive high-income market of almost 450 million people, with a GDP of around A$23 trillion. As a bloc the EU is already our second-largest two-way trading partner, as I said, worth about A$74 billion in 2020.

A trade agreement would facilitate greater EU investment in Australia, which of course would support jobs and economic growth. Australia is seeking to lock in access for our service exporters and create opportunities in sectors of key commercial interest, like education, financial and professional services. Our negotiators are also aiming to significantly improve market access for Australian agricultural and industrial products. They will seek to do this within the deal by streamlining customs procedures to improve business confidence. Importantly, they'll negotiate hard to make sure that standards and regulations don't deter trade and create barriers to getting our goods and services into Europe.

Our main goods exported to the EU are coal, gold, oilseeds and professional, ICT and education services. European market access for beef, sheepmeat, rice, sugar and dairy will be very good outcomes for our Australian producers. In its EU trade deal signed in June this year, New Zealand secured duty-free access for 163,769 tonnes of sheepmeat after seven years of entry into force. New Zealand also got a better deal on quotas for beef and dairy and secured some hundreds of millions of New Zealand dollars in savings each year. But Australia's current lack of preferential access to the EU means that our exporters are at a disadvantage compared to many of our biggest competitors like New Zealand. Many of Australia's major exports, particularly agriculture, face prohibitively high tariffs. We also want to create more opportunities for our services and exporters and to grow investment. Australian industry and consumers can be confident that we will drive a hard bargain to achieve an overall agreement to the benefit of our nation. An ambitious trade agreement is the best way to improve our access to the EU and rebalance the current trade flows.

Our government is committed to taking ambitious action on climate change and looks forward to exploring new avenues for cooperation on climate and energy through this deal. A comprehensive and ambitious free trade agreement will strengthen trade and investment links with the EU at a time of great uncertainty around the world.

Russia's invasion of Ukraine has reinforced the value of partnerships with like-minded countries in Europe, and the trade agreement is an opportunity to strengthen our ties and tackle the economic and geopolitical challenges and supply-chain disruptions that are currently facing Europe. We want to be part of the solution. And we are part of the solution, by donating an additional 30 Bushmasters to Ukraine, as Deputy Prime Minister Marles announced last month, bringing our total donation of Bushmasters to 90 vehicles. It was great, in the House today, to be able to acknowledge Chev Viviers and Mark Eggler, who played a great role in the Bushmaster story. (Time expired)

Aaron Violi (Casey, Liberal Party) Share this | Link to this | Hansard source

I rise in support of the motion moved by the member for Page on the Australia-European Union Free Trade Agreement. As a trading nation, free trade agreements are crucial to our economic prosperity, allowing countries to import and export goods without any tariffs or other barriers to trade. They drive lower prices for consumers, increased exports, benefits for economies of scale and a greater choice of goods, and they create jobs.

I saw this firsthand at Yarra Valley Snack Foods, when I was responsible for exports into Asia. Opening new markets delivers significant benefits to local businesses, primarily through opening access to new customers and to markets significantly larger than the local Australian market. So let's use food—the industry I was in—as an example. In Australia, two supermarket companies have significant market share. Export markets allow suppliers to not only grow their business but also diversify their market base away from the duopoly of two key customers. This protects the long-term viability of the business. And that is why free trade agreements are so important.

The previous coalition government had a strong record when it came to securing free trade agreements. We recognised the importance of developing trade relationships for economic security, for tourism, for jobs and for business growth. While in government, the coalition had finalised 11 trade agreements since 2013, including those with the UK and India. During our time in government, we lifted the amount of trade covered by free trade agreements from 27 per cent under Labor in 2013 to close to 80 per cent today.

It therefore comes as no surprise that it was the coalition government that initiated the free trade agreement with the European Union by launching negotiations back in 2018. The coalition did this, seeking an ambitious and comprehensive deal to drive Australian exports, contribute to economic growth and create jobs. A well-drafted free trade agreement between Australia and the European Union will assist businesses with post-pandemic economic recovery by providing new opportunities for growth in a significant market. The EU is our second-largest two-way trading partner of goods and services, which were worth $74 billion in 2020. A comprehensive trade deal with the EU will open the doors to a high-income market of almost 450 million people and a GDP of $23 trillion.

While Australia and the EU are natural partners, given our shared commitment to democracy, freedom, the rule of law and free and open markets, developing a free trade agreement will be a real test for Labor. As it stands, the European Union runs a significant trade surplus within Australia because of our 50-year-old trade deal. It is a huge market with great potential for Australian exporting companies. Given the size of the Australian economy, Australian companies and consumers will always benefit from greater choice and lower prices. Free trade agreements provide Australian companies broader access to international markets. They open our markets up to greater competition while offering more prospects for increased two-way investment and reducing the import costs for Australian businesses and consumers, vital in this time of rising prices.

We want and need a trade agreement that sets a benchmark for what can be achieved between like-minded partners. The government must deliver a free trade agreement that increases investment between Australia and the European Union; creates rules to support the digital economy, so vital to driving productivity in our nation; and reduces cost and red tape for small and medium businesses, which are the engine room of the Australian economy. The looming question is whether the Labor government can secure a completely liberalised market, and that is where their focus should be. So I urge the government to support and complete the foundations already established for an Australian European union free trade agreement so we can all grow and prosper as a nation.

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

It wasn't that long ago that the Australian-European free trade negotiations had stalled, and stalled badly. Whether it was gross disrespect being shown to a close ally, texts being leaked or its value to do anything to address climate change, the Morrison government dropped the ball on Australia's relationship with the EU. Labor has picked up the pill. Thankfully, since the Albanese government took office negotiations are back on track. Negotiations have started once again to gain significant momentum. With the current turmoil in Europe associated with Russia's invasion of Ukraine, it has reinforced the value of partnerships with like-minded countries. A comprehensive and ambitious free trade agreement with the European Union will strengthen trade and investment links in this time of considerable global uncertainty. This EU FTA is an opportunity to strengthen our ties and tackle the economic and geopolitical challenges and supply chain disruptions that are currently facing Europe.

Australia is a trading nation, so we want to be a part of the solution for Europe, and being a part of their solution will deliver significant benefits to our economy, to our miners, to our farmers, to our businesses that provide services. The European Union is massive. Becoming a key partner will help Australia diversify our trade relationships and create new commercial opportunities for Australian exporters. The EU has a potential 450 million customers for Australian exporters to provide goods and services. This trading bloc has a GDP of $23 trillion. The EU is already our third-largest trading partner, which is good, but the goods and services we exchange were worth $83 billion in 2021. It's also our second-largest source of foreign investment in terms of total stocks, worth around $763 billion in 2021.

Right now, our exporters are at a major disadvantage compared to many of our competitors. Agriculture, one of this nation was key export sectors, currently faces prohibitively high tariffs, making it extremely difficult for our farmers to access markets with our high-quality, trusted produce. The Albanese government wants to help our farmers and producers have an equitable playing field when they are competing for EU markets. Who wouldn't want to see more Queensland beef on the supermarket shelves in Germany or more nuts and pulses being used by restaurants in Paris and Amsterdam? We want a successful partnership with Europe to also open up new and greater opportunities for our services exporters as well as grow investment.

Crucial to this partnership is the Albanese government's commitment to addressing climate change. This will mean exploring new avenues for cooperation on climate and energy through mutual understandings and agreement. We have much to learn about embracing renewal energy technology.

We want trading doors to be opened rather than be slammed in the face of a troglodyte pariah because we had failed to act on climate change. That was the path we were heading towards. Ultimately, Australia's negotiations with the European Union will only be concluded when we have a good deal that is in our national interest, not just an open slather but a good deal in our national interest that respects intellectual property and also our labour markets. This would also include delivering commercially significant new market access for our agriculture products. It would be good for our farmers and good for the bush.

You can be assured that we won't be actively sabotaging relations with countries in the EU, as the previous Morrison government did. The Labor Party knows that we are a trading nation, and we will do all that we can to protect and open up new markets.

David Gillespie (Lyne, National Party) Share this | Link to this | Hansard source

A free trade agreement with the European Union is sought by all members of this parliament, not just by the government. As members all know well, negotiations were very advanced during the 46th Parliament. There were some sticking points on geographic indicators for things like feta cheese and other European goods, and it was complicated at one stage because the United Kingdom was still in the EU. We concluded 11 free trade agreements in the space of three parliament returns. When we came to the government benches in 2013, 27 per cent of our trade was covered by free trade agreements. It's now just short of 80 per cent. That's not bad for three terms and 11 trade agreements signed in that time. When we finally conclude the agreement with the EU, the amount of trade coming in and out Australia under free trade agreements will increase to 90 per cent. We are a trading nation. We always produce far more goods than we, a nation of 25 million, need. Whether it's agriculture or minerals and resources, we 25 million feed the energy demands of Japan, Korea, India and other countries in Asia. Our gas goes around the world. Our iron feeds the growth and increasing wealth and sophistication of many countries. In fact, we have powered places like Japan since 1864. Australia does an amazing amount of trade.

The agreement with the EU is a historic legacy agreement that was complicated by several things. We had a huge market for sheepmeat and beef, but Europe at the time also had that amount of beef and sheep production. Things have changed. Europe has grown exponentially, and we are keen to do deals with it. I understand that the geographic indicators are being sorted out as we speak. We are that close to concluding it. Compared to our neighbours—New Zealand, India, America and Argentina—everyone seems to have got a better deal than us. So we are putting the pressure on our colleagues on the other side of the chamber to make sure they match the efficacy and the number of free trade deals that we signed up to.

At the moment, we still have a 32.3 per cent tariff on any Australian dairy that goes over there. Sugar has a 27 per cent tariff. Meat faces a 19 per cent average tariff. The volume that we get in there is minuscule compared to the 127,000 tonnes that New Zealand gets—my goodness! So the pressure is on, colleagues. You've got to get it done, and we will all benefit from it.

Just the other day many members of the parliament visited the Czech and Austrian ambassadors' residences to celebrate their joint national days. It's their turn to lead the EU at the moment. The discussions we had with the ambassadors were very encouraging. They're saying things like, 'We're nearly there,' which in diplomatic terms is really quite significant.

The coalition has an enviable record on trade negotiation. This will be a test of how good this new government is. It's no good bagging us. We had some hiccups with our French partners in the Indo-Pacific, but we've resolved that and we want to do business with them. They have all these processed goods coming into the country as well as chemicals, banking, insurance, cars, aircraft and exotic foods, and we have got plenty of dairy, quality beef, sheepmeat and all sorts of goods that we can now do deals with them on with much better terms than we have. I commend this motion.

Terry Young (Longman, Liberal National Party) Share this | Link to this | Hansard source

Order! A quorum has been called in the House of Representatives. We'll suspend proceedings until members return.

Sitting suspended from 17 : 15 to 17 : 19

Tania Lawrence (Hasluck, Australian Labor Party) Share this | Link to this | Hansard source

I acknowledge the member for Page's interest in this matter and I acknowledge the work done by the previous government and the extraordinarily dedicated team at the Department of Foreign Affairs and Trade in negotiating towards a free trade agreement with the European Union. The EU is already one of our major trading partners, of course, but this agreement will lead to yet stronger ties between our countries. Especially when we consider that over half of Australians have some sort of European heritage, an FTA with the EU is a natural fit with many familial and other linkages to support it.

Formal negotiations for this agreement commenced in mid-2018. The most recent round, round 13, was in Brussels between 17 and 21 October, just a few weeks ago. The next round, which may even be the final round, will take place here in Canberra in February. I'm a member of the Joint Standing Committee on Trade and Investment Growth and I follow these matters closely. Since taking office, the Albanese government has taken action to bring the free trade agreements with the UK and India into operation. Those bills are before the parliament, and I look forward to them being passed soon. I expect this agreement with the EU will follow soon after, and I'm hopeful that other trade agreements, such as the one with the UAE, will also come about within this term of government.

Recently the head of the European Parliament's trade committee, Mr Bernd Lange, visited Australia. He was upbeat about the renewed progress of the trade negotiations and was quoted as saying that the Albanese government's enshrining of the emissions reduction target in legislation had removed a major barrier to the finalisation of the agreement.

The member for Page was, of course, elected back in 2013. It is a little ironic that, if he and the former government had done the work to legislate for an emissions reduction target, they may have been able to close this deal on their watch. Nevertheless, the climate bill has passed; the obstacle was removed—you're welcome.

The other reason, perhaps, for negotiations slowing down was the damage done to our relationship with France by the former Prime Minister, the member for Cook. The new Prime Minister, though, has been busy repairing that relationship. It is quite clear that the efforts by the Prime Minister; the foreign minister; the Minister for Trade and Tourism, Senator Farrell; and others have gone a long way towards repairing relationships and instilling trust in our international and trade relationships since the election, just as Ministers Conroy and Bowen will be doing at the COP in Egypt.

To return to the positives: the EU is a market of 450 million people of relatively high average incomes. We look forward to finalising the agreement with the EU, and, as I say, this could occur as early as February. It is right that the member for Page should wish this to occur. Mr Lange of the European Parliament says he expects to see significant progress in February. What the government will not do, however, is rush it. We will get the best outcome for Australia.

Minister Farrell is a fair man, and he will negotiate fairly, putting our nation's interests at the heart of this agreement. European countries have renewed interest in the diversification of trade as the war between Russia and Ukraine has brought home the importance of reducing dependence on Russia, especially for energy. There are many ways in which this new energy economy can be a focus of cooperation between Australia and the EU. The European Commission's report on the most recent round of negotiations in October this year described a good, constructive atmosphere and comprehensive agreement, echoing the words of the member for Page in this motion.

I note that New Zealand have beaten us to the chase: they agreed an FTA with the EU in the middle of the year. Our own agricultural exporters are eager to see increased access to the EU for their quality products. The FTAs that the Albanese government will enact with the UK and with India; the imminent agreement with the EU; the further prospective agreements with other countries, such as the UAE and the Gulf States; and the Pacific Alliance with the South American countries will lead to greater trade and prosperity. It is good timing, as we otherwise face a period of flat growth in the economy.

Crucially, these agreements will help to reduce our dependence on a single large trading partner, which is important in these times, especially when there is a disagreement or a breakdown in those trade relationships. Relationships are important. The government has spent a great deal of time and energy since the May election on repairing and strengthening our relationships with our near neighbours and with countries around the world. This work is now starting to pay off. The finalisation of trade agreements is a sign of that progress and of the re-establishment of the trust that will enable business and trade to flourish.

Jerome Laxale (Bennelong, Australian Labor Party) Share this | Link to this | Hansard source

It gives me great pleasure to rise here today—both as the member for Bennelong and as a member of the Joint Standing Committee on Trade and Investment Growth—to talk about this significant free trade agreement, which is incredibly important for our nation. I'll also confess that I stand here as a former citizen of the European Union and a former French citizen. To be part of a parliament that is prioritising the finalisation of this trade agreement is something I never thought would happen but is something to be really excited about. To finalise this agreement, to open up free trade between Australia and the EU, is incredibly important.

We've heard here today that the current trade agreement between both our continents is outdated and needs to be updated. Thank goodness we've had a change of government so that we can continue on with the progress. You'd have noticed those opposite earlier—they're not here now, and I'm not pointing to you, honourable members—were talking about their record on free trade agreements. But they didn't mention the two huge elephants in the room with regard to the EU trade agreement, which were their terrible and failed climate policy and the disrespect of the previous Prime Minister towards one of our biggest trading partners, and one of the biggest trading partners in Europe: France.

Do you wonder why New Zealand signed their free trade agreement before ours? Because they had a better climate policy than we did. Our free trade agreement with the European Union stalled because of 10 years of division and delay on climate chaos. I will read you a quote from the former European Union ambassador, Dr Pulch:

In Europe, every agreement, whether it's political or economic or trade, needs to be a net plus on climate change.

That would have been a bit of a challenge with the climate change policy that was in place beforehand. Now we have a new government with a more ambitious climate policy, and that helps us enormously. I'll stress that point: without the change of government, this free trade agreement would have stalled—it did stall—and would not have progressed. Now we have a new government that has set climate targets, and the doors are now open to Europe once again. They have gained significant momentum.

We saw, very early on, our new Prime Minister visit the French President to start to repair and reset the relationship—and what a breath of fresh air that was. We can now partner with our European parliaments and colleagues, particularly to help our neighbours here in the Pacific on climate change. The technology that the Europeans have in dealing with climate change and emissions is something that we should be a part of and share with our European colleagues.

We have an unwavering commitment to this free trade agreement, which is something I talk about often with my colleague the member for Hasluck, in our role on the committee. It's something that, as a former European myself, I am very, very interested in, because we know that the EU is one of Australia's largest trading partners and enhanced links with Europe will help us here in our own region in the Pacific, but also in terms of energy security. It will also facilitate huge investment in renewable energy here in Australia, but also in sustainable, critical mineral supply across the world. Here in Australia we dig up every mineral you need to make solar panels and batteries. And we've heard from some members here today about the significant improvements we need to make in agriculture to be able to unlock the European market.

It gives me great pleasure that the government has changed so that we can continue on and move this free trade agreement along. I'm hopeful that it can conclude very soon, but I can tell you: if it weren't for that change of government, this free trade agreement would have got nowhere.

Sam Birrell (Nicholls, National Party) Share this | Link to this | Hansard source

Free trade agreements are important. The European FTA is a test for Labor. I think the coalition has got a very proud history on free trade agreements, finalising 11 free trade agreements since 2013. That really lifted the share of Australia's trade covered by FTAs, from 27 per cent in 2013 to almost 80 per cent. In my electorate of Nicholls, primary producers, growers and food processors all benefit from the coalition's track record of delivering fair and balanced free trade agreements with other nations. We've got a gross regional product of $6.6 billion, of which $1.5 billion is down to agriculture. This really benefits from those free trade agreements. As I said, the coalition has got a proud record of finalising these things. The EU free trade agreement is well on its way.

But we have to make sure that we negotiate a comprehensive deal to drive Australian exports, economic growth and job creation. A high-quality FTA with the EU should deliver expanded trade in goods and significantly better market access. It needs to do that.

The European Union has a history of expanding protectionism through free trade agreements, particularly using what are called geographical indicators. Many people would be familiar with champagne, which can only be labelled as such if it comes from the Champagne region of France. As a result, we now enjoy Australian-made sparkling wine.

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

Order! 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. The member will have leave to continue speaking when the debate is resumed.