Murray Watt (Queensland, Australian Labor Party, Shadow Minister for Northern Australia) Share this | Hansard source

Thank you, Madam Acting Deputy President. I appreciate you providing me with that opportunity. I might elaborate a little further on some of the points that my colleague Senator Farrell was just beginning to make, particularly in relation to matters of labour market testing. Labour market testing is always a contentious issue when it comes to free trade agreements. It's something that the Labor Party, the labour movement and I think the community, more broadly, do have serious concerns about whenever free trade agreements are being considered. Obviously the Labor Party's position is to strongly support the ability of local workers to obtain employment. We've got a very strong tradition of supporting that, and we do need to make sure that whatever free trade agreements are entered into by our country do respect the rights of local workers.

Senator Farrell had just begun to make the point that my colleague and friend the Shadow Minister for Trade, Ms King, has sought advice on this point from the minister for trade and investment, Mr Tehan. The advice that she was seeking was as to whether RCEP broadly complies with a range of considerations that Labor thought were important. Ms King also sought advice that ratifying this agreement would not undermine the Australian government's capacity to govern in the interests of all Australians. I'm pleased to confirm that, based on that advice that we've received, RCEP does not expand waivers of labour market testing for foreign workers. There are a range of stakeholders who have rightly queried the inclusion of an instrument in the Migration Act which mentions a change to our domestic labour market testing regime. We have clarified with the Department of Foreign Affairs and Trade that this is merely a technical measure and there are no changes to labour market testing in this country as a result of participating in this Regional Comprehensive Economic Partnership. Indeed, the instrument under the Migration Act that was foreshadowed in the national interest assessment establishes that the obligations set out in RCEP form part of Australia's legal obligations. Such instruments are made under the Migration Act for every international trade agreement that Australia enters into.

Further, RCEP does not restrict Australia's domestic procurement arrangements at any level of government, it does not require the privatisation of any Australian public services, it does not undermine the Pharmaceutical Benefits Scheme, it does not undermine state or Commonwealth workplace laws or occupational licensing arrangements, it does not undermine Australia's anti-dumping regime, it does not include provisions that limit the right of the Commonwealth to regulate in the interests of public welfare or in relation to safe products, and it does not include investor state dispute settlement provisions, better known as ISDS provisions.

I particularly want to join with my Labor colleagues in commending the work of civil society and the trade union movement in their ongoing campaign, which has led to this government moving away from implementing ISDS provisions as a base for dispute settlement in all trade negotiations. That is something that has been an issue of serious contention within the community—the potential for these clauses to limit the application of Australian laws to overseas companies as a result of entering free trade agreements. The fact that we are seeing such ISDS provisions less and less in our international treaties is a testament to the tireless campaigning of the ACTU, the broader labour movement, AFTINET and others. Recent media reports that Clive Palmer is exploring the use of ISDS mechanisms to sue the Australian government reaffirm our opposition to them as a general provision of international trade deals. Having already forked out $1 million in legal fees because the Prime Minister supported Mr Palmer's attempt to sue Western Australia, Australian taxpayers don't want to be stung again by another vexatious suit from Mr Palmer.

An Albanese Labor government will ensure that trade agreements signed by the Commonwealth require skills assessments, including practical and theoretical testing, to be undertaken in Australia and not restrict such skills assessments for temporary visa holders. We will include in any future bilateral, regional or multilateral trade agreements a labour chapter with enforceable, internationally recognised labour standards.

The Labor Party supports rigorous, independent economic analysis of trade agreements and, in government, will ensure that such analysis is conducted. Labor will also require that an independent economic assessment of the impact of each agreement be included in the report of the Joint Standing Committee on Treaties to the parliament. I want to put on record my appreciation to the members of JSCOT—including my good mate Senator Ayres; Mr Khalil, the member for Wills; and many others—for the good work that they've done on this trade agreement and many others.

The JSCOT report into treaty-making, report No. 193, which was tabled in August of this year, recommended:

… the Government consider implementing a process through which independent modelling and analysis of a trade agreement, at both the macro and sectoral levels, is undertaken in the future by the Productivity Commission, or similarly independent and expert body, and provided to the Committee alongside the National Interest Analysis to improve assessment of the agreement, increase public confidence in the benefits of trade agreements, and facilitate the longitudinal assessment of actual trade outcomes.

Labor calls on the government to implement this recommendation.

This important review by JSCOT into treaty development would not have happened but for Labor. In discussions with the government in relation to the Indonesia-Australia Comprehensive Economic Partnership Agreement, the government, through the then trade minister, Senator Birmingham, agreed to Labor's request that JSCOT be asked to undertake such a review. We are glad that the government supported this and gave the parliament an important opportunity to examine the manner in which it addresses free trade treaties and agreements. This demonstrated the community desire for more openness and transparency from government in relation to free trade negotiations.

Labor in government will ensure that Australians are informed about trade negotiations and will undertake full community consultation before entering new agreements. The provision of public updates will follow each round of negotiations. Where feasible, draft texts will also be released. Labor will legislate to ensure transparency in future trade agreements through the tabling of national interest assessments; consultation with industry, unions and community groups during negotiations; and the tabling of negotiation material in parliament where feasible—again, as recommended by JSCOT in its report into treaty-making. Labor will also commission an independent national interest assessment which includes a comprehensive social, economic and regional impact assessment of the negotiated treaty text, and we will mandate 10-year reviews of existing free trade agreements.

It's a very important principle to Labor that trade agreements not be used to undermine Australian working conditions and that foreign workers should be used only in situations where specific skill shortages are present and only for the period it takes to train and develop the capacity of an Australian to do the job.

It is disappointing that the underinvestment and the cuts made by this government to our training system—about $3 billion worth of cuts to TAFE alone—have at times caused skills shortages, which, of course, have been exacerbated recently by the closure of Australia's international borders. There are many employers who have been able to overcome the lack of skills in a particular area, whether that be a particular industry or a particular region, by bringing in foreign workers. Sometimes that has been to the detriment of Australia workers who haven't been able to obtain the training that is needed for such positions as a result of the cuts this government has made to skills and training. We're now paying the price. I know there are many businesses around my state of Queensland that are screaming for skilled workers at the moment, and that is a direct consequence of this government's to cuts to training.

Labor does not support the inclusion of provisions in trade agreements that confer on foreign businesses legal rights that are not available to domestic businesses, but while these are our principles, Labor is not yet in government and, as we know, international treaties are the remit of the executive arm of government.

It's worth our thinking about the Liberals and Nationals' record on trade agreements in the time they've been in office. Labor called for the final treaty text of RCEP to be publicly released before the agreement was signed so as to allow it to be scrutinised by the public, but the Morrison government refused in another example of their aversion to transparency. Labor has previously raised concerns over the Morrison government's refusal to commission independent economic modelling for the RCEP. This is nothing new from this all talk, do nothing government. At a time when calm and skilful diplomacy is needed to resolve our trade tensions with China, the Morrison government has given the member for Dawson, George Christensen, and many others in its ranks free rein to spout inflammatory comments and spread misinformation about China. Under Prime Minister Scott Morrison, Australia is more dependent than ever on China for our exports and jobs. In fact, we depend on the Chinese market more than any other country in the world. That is a result of this government's policies.

When trade diversification is of highest priority for this nation Prime Minister Scott Morrison is putting at risk our trade agreement with the European Union due to his diplomatic ineptitude on the recent nuclear submarines decision. Labor knows that achieving genuine trade diversification will require a long-term, whole-of-government commitment and a plan. Every portfolio in government should be thinking about what it can do to contribute to a national effort to diversify what we export and where we export goods and services to. In health and finance, for example, Australia has remarkable capability that it has already exported, but more can be done. Australia has $1.3 trillion worth of funds under management through our superannuation system. We have developed an industry that is envied around the world, and economies like Japan are looking to Australia for funds management expertise. Similarly, in health, Australia is expert in providing health care into remote areas, which could be replicated in the complex and challenging geography of Indonesia and its many islands.

Labor is prepared to make that commitment and build that plan in conjunction with job-creating export industries. We would work with exporters to build relationships and secure the markets that Australian jobs depend on. Diversifying export markets is more than a photo op for a free trade agreement-signing ceremony. Labor knows that our relationships with our trading partners cannot be just set and forget, as they are under the Morrison-Joyce government. Signing a free trade agreement is not the end of the story. In 2019, the Morrison government committed to a range of measures to secure Labor's support for the Indonesian comprehensive economic partnership agreement—namely, compelling the JSCOT to review the way our country negotiates trade agreements. We are satisfied that the JSCOT treaty-making review has been completed and thank all members of the committee for their work in undertaking this process. We call on the government to implement as a matter of urgency the remainder of these commitments, in particular those related to worker exploitation.

Two other major issues that have been raised in connection with this agreement—