Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Cabinet Secretary, representing the Minister for Trade and Investment. Can the Cabinet Secretary inform the Senate how free trade agreements are driving innovation in the Australian economy?

Arthur Sinodinos (NSW, Liberal Party, Cabinet Secretary) Share this | Link to this | Hansard source

I thank Senator Back for this important question and for his ongoing support for free trade and the particular benefits to the great state of Western Australia. When we talk about innovation, we talk about any process, any product or any new service that comes into being because people have either come up with new ideas or they have responded to changing demands and consumption in the marketplace.

One of the prerequisites for really good innovation is competition, and these free trade agreements that we have been entering into over the last few years will increase the intensity of competition in the Australian economy. They will increase the intensity of competition and will mean that our own firms will not only have access to new markets but also face competition here at home. That is a rising tide that can lift all boats. By allowing Australian business to become more agile, we ensure that our economy will be adapting in new markets and thriving from them. We are going to be agile, we are going to be nimble and we are going to be innovative.

Opposition Senators:

Opposition senators interjecting—

Arthur Sinodinos (NSW, Liberal Party, Cabinet Secretary) Share this | Link to this | Hansard source

Absolutely. It is an exciting time to be an Australian. It is an exciting time to be in government. The numerous free trade agreements that the government has signed over the past two years will allow Australian business leaders and entrepreneurs much greater access into Asia-Pacific countries, and allowing Australians to travel to major regional economies will foster the exchange of ideas across our borders. These free trade agreements will deliver billions of dollars of additional export income for Australia across a variety of goods and services, from iron ore to education, health services and beef—and the list goes on. The opportunities offered in these free trade agreements—

Senator Kim Carr interjecting—

Australian beef producers, education providers or tourism operators, for example, will have unprecedented opportunities. (Time expired)

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I congratulate and thank the Cabinet Secretary for his answer. Cabinet Secretary, would you inform the Senate which sectors in the Australian economy will benefit from the recent free trade agreements?

Arthur Sinodinos (NSW, Liberal Party, Cabinet Secretary) Share this | Link to this | Hansard source

There is great excitement across lots of sectors of the Australian economy. Our lucrative mining sector will benefit, with tariffs and quotas on mineral exports slashed right around the region. Further, there are mining equipment and services, which are sources of innovation. We have one of the most innovative mining equipment services and technology sectors in the world—all set to become a global powerhouse. Services sectors across Australia are set to gain unprecedented access to regional markets.

Senator Edwards interjecting—

There you go, Senator Edwards: always excited, and more excited than usual today. Education, our nation's single-largest service export, will have more access into foreign economies than it ever has. Health services will be allowed to operate across the Asia-Pacific. Financial services, legal services and other professional services—all lucrative Australian sectors—will now have opportunities like never before.

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the cabinet secretary aware of commentary from the business community about the recent free trade agreements?

Arthur Sinodinos (NSW, Liberal Party, Cabinet Secretary) Share this | Link to this | Hansard source

Yes. The business community is excited and passionately supporting this government's free trade agenda. They know that free trade fosters economic growth and job creation for all Australians. The BCA chief executive has described the recent period of free trade agreements as:

… 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.

The chairman of the Australia China Business Council and former Labor Premier of Victoria, John Brumby, a great economic rationalist, has praised free trade, especially for its benefits to country Australia, saying that regional and rural Australia stands to be a major beneficiary through improved access to markets for Australian agricultural products. Free trade is good for Australian business, and we are pleased to have business lending their full support to this free trade agenda.