Tony Sheldon (NSW, Australian Labor Party) Share this | Hansard source

I will begin by taking up a couple of issues raised by the previous speaker, Senator Bragg, before I start on the substance of my speech. I always find it intriguing when Menzies gets mentioned, particularly when it comes to trade matters. I recall being taught at school that his nickname was 'Pig Iron Bob' because he fuelled, at that time, the non-democratic Japanese army's imperialistic intentions for the rest of Asia. So if you're trying to recite that one as an example of the successive capacity of the conservatives, it's certainly wanting. When it comes to the other comments that Senator Bragg made, I will deal with them in a moment. As the Senate would recall, it was Gough Whitlam, who was the Prime Minister at the time, who actually began the very important process of engaging with China.

I rise to speak on the Customs Amendment (Regional Comprehensive Economic Partnership Agreement Implementation) Bill 2021 and the Customs Tariff Amendment (Regional Comprehensive Economic Partnership Agreement Implementation) Bill 2021. The RCEP countries include nine of Australia's top 15 trading partners, accounting for 58 per cent of our two-way trade and 67 per cent of our exports. It includes our near neighbours, the ASEAN countries; New Zealand; and major trade partners China, Japan and South Korea. The RCEP will provide a single set of basic rules for Australian exporters, including small businesses, to these countries. Labor support the measures that encourage small businesses to boost exports and create more Australian jobs as a result. Already, one in five Australian workers, more than two million people, are employed in a trade-related activity.

Australian exports will be an important feature of any economic recovery from the COVID-19 pandemic, and currently small and medium businesses only account for 14 per cent of Australia's exports, whereas the G7 average is 25 per cent and the European Union average is 35 per cent. Clearly there is more to be done to support small businesses in this country. Lifting small and medium business exports to 25 per cent of our exports would increase Australia's GDP by $36 billion. So there are potential economic benefits to the RCEP, which is why Labor cautiously supports the ratification of this treaty. But that support is not unqualified and it's not without our serious concerns. I'd like to thank the shadow minister for trade, Madeleine King, who has raised some of those concerns directly with the minister for trade.

The first of these concerns is that the potential economic benefits I've just outlined are exactly that: potential. The Morrison government has refused to commission independent economic modelling for the RCEP, despite being pressed by Labor to do it. It is unclear why Mr Morrison is so opposed to knowing the economic impact of his own treaty. It raises concerns that we do not truly know the economic and social impact that this will have, particularly on Australian workers.

Another issue raised by Labor is the use of investor-state dispute settlement, or ISDS mechanisms. ISDS mechanisms give private companies the power to sue the Australian government when it exercises its democratic mandate to enact legislation. Famously, this was used by the tobacco giant Philip Morris to attempt to sue the Gillard government over the introduction of tobacco plain packaging laws. The Gillard government vowed to end the use of ISDS mechanisms and remove them from existing agreements in 2012. Since then, agreements signed by both the Abbott and Turnbull governments have reintroduced ISDS. I would love to hear how those on the other side would argue that it's in the best interest of the Australian people to give multinational companies like Philip Morris the power to sue the Australian government.

The RCEP, as currently drafted, does not have an ISDS provision. However, it could be added at a later stage. I understand that the Morrison government has said it does not intend to add an ISDS clause to the agreement at the two-year review. If Australia is unfortunate enough for this government to still be in charge at that point, I am certain that Labor will hold Mr Morrison to that promise.

Another concern that Labor has consistently raised surrounds the actual treaty-making process. The RCEP, as with other agreements made by this government, was negotiated behind closed doors. The final treaty text was not publicly released until after Mr Morrison had signed up. That is fundamentally contrary to some of our major trading partners—for example, Europe—that have an ongoing process of engagement. Unlike Senator Bragg, we think talking to employers and unions that represent millions of workers in this country, and the aspirations of many more, is not a weakness in any process of making a trade agreement. In fact, it's a strength to make sure that an appropriate and proper trade agreement is put in place.

Of course, the public eye on those processes is critical to a final treaty that the public support. As we know, treaties have become discredited in some of the more populist public areas primarily because of the lack of transparency, and also some of the critical issues I've already raised.

This is just the latest long-running saga of Mr Morrison running away from transparency. Whether it's JobKeeper, the national cabinet, the widespread rorts or our trade agreements, this is a Prime Minister who prefers to operate outside of any public or parliamentary oversight. Like mould, like rot, he thrives in darkness.

On the other hand, Labor believes that greater transparency in the development of trade agreements is a good thing. We see transparency and openness as vital to developing a real public license to enter into these sorts of agreements. That public license is in danger.

While there have been economic benefits to trade liberalisation, there have also been victims. Workers in our manufacturing industry in particular have lost out as successive governments have made it easier and cheaper for production to be sent offshore. Workers across all sectors of the economy have lost out as big business, with the support of the Liberal Party, have used underpaid, temporary migrant labour to drive down wages for Australian workers.

There are very valid concerns about the impact of the RCEP on Australian jobs, wages and conditions. Thankfully, the RCEP does not include commitments in relation to waiving labour market testing. It is absolutely essential that we do not go any further down that path. It is absolutely essential that we do not make it easier for big businesses to import and exploit cheap, temporary, migrant labour, because, when that happens, the impact is twofold. Firstly, it results of the sort of horrible exploitation we've seen time and time again—