David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Trade and Investment, Senator Payne. Can the minister outline how the government's trade policy is a vital part of the coalition's plan to create jobs and growth for all Australians? And what new opportunities are available for Australia in the world's second-largest market as a result of the China-Australia Free Trade Agreement?

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

I thank Senator Bushby very much for his question. This is a trifecta of trade agreements with the major economies of North Asia. They are extraordinarily powerful enablers and are part of our government's efforts to help diversify our economy. As I have said before, it is about placing us in the best possible position to take advantage of the opportunities that are coming down the line, particularly in our region, in the area around us. The ChAFTA, in particular, is going to open significant new opportunities for Australia in what is the world's second-largest and fastest-growing economy. China is already Australia's largest export destination for both goods and services. It accounts for nearly a third of total exports and is our largest export market for agriculture, for resources and for services. Upon full implementation of the agreement, some 95 per cent of Australia's goods exports to China will enter China duty-free. Significant barriers to Australia's agricultural exports will be removed across a range of products, including beef, dairy, lamb, wine, hides and skins, horticulture, barley and seafood.

It is no wonder that an agreement of this nature, of this standing, has been very strongly backed by many people—not only by independent third parties but, interestingly, also by some quite senior Labor figures. Mr John Brumby, who of course is head of the Australia China Business Council, says:

ChAFTA is a high quality agreement that will deepen Australia's relationship with our biggest trading partner and which provides Australian companies with a real competitive edge in the China market.

And we have Craig Emerson. We have Bruce Hawker himself, often a commentator for Labor, and, as I have said before, even former trade minister Simon Crean. (Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I have a supplementary question. Can the minister outline to the Senate the services and investment opportunities emerging as a result of the landmark ChAFTA agreement? How does this agreement compare with other agreements China has entered into?

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

I can assist Senator Bushby on that matter, in relation to investment and services opportunities particularly. Today services constitute around 70 per cent of Australia's economic activity, and China is Australia's largest services market, with exports in services valued at $7 billion in 2013 alone. It is therefore very significant that, in ChAFTA, China has offered Australia their best-ever services commitments in an international FTA other than their own agreements with Hong Kong and Macau, their very close relations. Most valuably, this includes new or significantly improved market access for Australian banks, for insurers, for securities and futures companies, for law firms, for professional services suppliers and for education services exporters, as well as in health, aged care, construction, manufacturing and telecommunications services businesses in China. All of these industries are set to benefit and grow from this landmark trade agreement with China. (Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister inform the Senate of how the finalising of the China-Australia Free Trade Agreement demonstrates the government's commitment to freer trade and investment? How does this government's approach differ from that of the previous government?

Senator Sinodinos interjecting—

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

I agree with Senator Bushby—and Senator Sinodinos: it is better. That is a very good start. With ChAFTA, Australia has now concluded 10 FTAs with trading partners which cover 70 per cent of our goods and services exports. Seven of those 10 FTAs were reached under coalition governments, and two of the three FTAs achieved by Labor were begun by coalition governments. That track record stands in very stark contrast to that of Labor, who in many places appear to be backing a very, very dishonest trade union campaign which is trying to just rip away the opportunities of the China FTA. Labor's trade spokesperson should cease what is essentially fearmongering and support this agreement so that the major benefits can begin to flow to all Australians. They should listen to their former leaders, their betters and their elders, such as Simon Crean, Craig Emerson and John Brumby, to name just a few. These Labor figures are highly supportive of this landmark deal, and so should those opposite be.