Dean Smith (WA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Human Services, Senator Payne, representing the Minister for Trade and Investment. Can the minister please update the Senate on how the recently-signed China-Australia Free Trade Agreement has been received by Australian industry?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

I can indeed update the Senate, because this is a fabulous story, as Senator Scullion was recently adverting to in his observations about the benefits for agriculture in Australia. The China-Australia Free Trade Agreement is going to unlock substantial new benefits for Australians for decades to come. In fact, industry has been universal in its praise for the agreement, which will see unprecedented access for Australian business to the world's second-largest economy.

Let me cite a couple of those. The Business Council of Australia said:

This historic agreement is a transformative moment for the Australian economy. It puts many of our most important sectors on a more competitive footing internationally, and gives Australian companies enormous scope to boost trade and create jobs.

Similarly, the Australian Industry Group has said that:

The agreement … will provide Australian business with more export and investment opportunities through opening up access to the large Chinese market …

And the Winemakers' Federation stated that this:

… much-awaited free trade agreement with China seals this year's trade trifecta and has the potential to add tens of millions of dollars to the Australian wine industry's export earnings.

What ChAFTA will do is create jobs and drive higher living standards for Australians. It is a transformational agreement that removes barriers to trade and investment and represents a high water mark in our relationship with China. I know that the free-trade forums being run by Minister Robb, Minister Billson and, on occasion, the Prime Minister, are attracting enormous attention from local businesses from one side of the country to the other. All of the industry groups that represent the members of those organisations are, in fact, confirming for the Australian government and for the Australian people the extraordinary value of the China-Australia Free Trade Agreement.

Dean Smith (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister explain which sectors stand to benefit the most from this historic trade agreement?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

On current numbers, 85 per cent of Australian goods exports to China will be tariff-free but, at the time of full implementation of ChAFTA, that will rise to 95 per cent of Australian goods exports to China being tariff-free. Significantly, and I think Senator Scullion mentioned this as well, tariffs will be abolished for Australia's $13 billion dairy industry. I know how welcome that will be—particularly on the south coast of New South Wales, for example. Tariffs of up to 25 per cent will be removed for Australia's beef and sheep farmers. Tariffs of 14 to 30 per cent on Australian wine—and I referred to the Winemakers' Federation views earlier—will go within four years. Tariffs also will be eliminated on a wide range of Australian manufactured goods, particularly pharmaceutical products, which will be a great benefit to that industry in Australia. (Time expired)

Dean Smith (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister explain how the agreement further demonstrates that Australia is open for business?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

It is worth noting that the negotiations for this free-trade agreement with China commenced under the government of Prime Minister John Howard and have been completed by the government of Prime Minister Abbott. Between 2007 and 2013 the talks languished pretty sadly, but we have now built on trade deals already concluded with Korea and Japan. ChAFTA forms part of a powerful trifecta of agreements with three of Australia's largest export markets, which account for more than 61 per cent of our exports of goods. In 12 months we have achieved what Labor could not achieve in six years. This trade trifecta is further proof that Australia is absolutely open for business. It is giving us better market access to the world's second-largest economy, it improves our competitive position in a rapidly-growing market, it promotes increased two-way investment and it reduces import costs. It is a win-win for households and businesses alike, and it is a job creation boom. (Time expired)

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is also to the Minister representing the Minister for Trade and Investment, Senator Payne. I also refer to the China-Australia Free Trade Agreement and its investment facilitation arrangement provisions, which allow temporary migration to fill jobs on infrastructure projects worth $150 million or more. Will the government retain existing labour market testing safeguards to ensure temporary migration is only used to fill positions on investment facilitation arrangement projects where employers cannot find suitably skilled local workers to do the job?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

I thank Senator Wong for that question. I can reassure the Senate that exactly the same safeguards are in the ChAFTA as existed under agreements finalised by the previous government. It means employers implementing major projects have surety when they decide to make a major investment that if they can demonstrate that there is a skills shortage they are allowed to bring in, for example, skilled workers for the appropriate limited period.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I also refer to comments about the China-Australia FTA by the Prime Minister . At a media conference last October he said, 'On the 457s, labour market testing will remain.' Can the minister confirm that, in fact, under the China-Australia FTA labour market testing will not be required for contractors, installers, services and others from China seeking 457 visas?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

I thank Senator Wong for that question. I am not sure I have all the detail that Senator Wong would require for an answer to that question. But let me say that, in relation to the safeguards in ChAFTA, to be approved for a project agreement a company must meet a number of requirements which are outlined in a set of publicly available guidelines. Contrary to what many commentators have said it is not simply the case that Chinese companies are able to bring in their own workforce without checks and balances. The Project Agreement Program allows infrastructure or resource development projects experiencing genuine skills or labour shortages access to temporary skilled and specialised semiskilled temporary overseas workers through the subclass 457 visa. There are a number of other points but if I do not have the correct information I will take it on notice and provide further information to the senator.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I note that the minister will appropriately take aspects of that question on notice. There is inconsistency between what the Prime Minister said last year and the text of the agreement. Can the minister please explain that? Can she also provide assurances that the labour provisions in the China-Australia FTA will enhance, not constrain, local job opportunities?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

I can certainly provide that assurance, and I have made that clear in the chamber on a number of occasions in relation to these issues. I will provide the senator with further information on those matters that I have taken notice.