Matthew Canavan (Queensland, Liberal National Party) Share this | Link to this | Hansard source

On behalf of Senator Fawcett I present two reports of the Joint Standing Committee on Treaties, as listed at item 14 on today's order of business, and seek leave to incorporate the tabling speech into Hansard.

Leave granted.

The tabling speech read as follows—

Mr President, today I present the Joint Standing Committee on Treaties' Report 154: Treaty tabled on 17 June 2015 and Report 155: Treaties tabled on 11 and 12 August 2015.

Report 154 contains the Committee's review of the China Australia Free Trade Agreement and Report 155 covers two treaty actions:

Exhibitions, and Protocol of Signature (Paris, 22 November 1928)

Mr President, the China Australia Free Trade Agreement has generated substantial public attention. China is currently Australia's largest trading partner with two-way trade worth $160 billion in 2013–14. Together with the trade agreements with Korea and Japan, ChAFTA will open up the major Asian markets to Australian consumers and industry.

Mr President, ChAFTA has been described as a 'watershed', 'transformative' agreement and is expected to deliver significant commercial benefits to a wide range of sectors. We found that many industries, including dairy, beef and fishing, are expected to benefit substantially from its implementation. The service industries too are set

to capitalise on the opportunities presented by China's growing middle class and its ageing population.

However, Mr President, the labour provisions in ChAFTA proved controversial. The core issues involve Australia's immigration framework for temporary workers. This is a complex legal area and the Committee was presented with often diametrically opposed views. Adding to the confusion, a number of separate issues tended to be conflated both in the public perception and in the evidence to the Committee.

After careful consideration the Committee is satisfied that the safeguards within Australia's immigration and employment frameworks will mitigate the concerns raised. But we make the proviso that the government organisations responsible for ensuring compliance must be adequately resourced.

Mr President, the Committee is acutely aware that Australia is losing market share in the burgeoning Chinese economy because of China's existing trade agreements. Some of these FTAs are with Australia's major competitors such as New Zealand, Chile and ASEAN. The negotiation of a FTA with China appears the most realistic option to combat Australia's growing competitive disadvantage.

Mr President, the Committee wants to ensure that the full benefit of ChAFTA is realised by Australian businesses and industry. Australia's existing free trade agreements are woefully underutilised with only 19 per cent of Australian exporters making use of them. To achieve the promised economic growth, more steps must be taken to increase uptake.

To this end Mr President, we have recommended that work on alleviating non-tariff barriers be prioritised and accelerated. We also recommend increased effort be made to educate and support Australian businesses and industry to understand and access FTAs.

Mr President, the Committee supports ratification of the China Australia Free Trade Agreement.

Turning to Report 155, the Committee also inquired into the Asian Infrastructure Investment Bank Articles of Agreement. The primary purpose of the Asian Infrastructure Investment Bank is to address the need for infrastructure funding across our region. There is expected to be a multi-trillion dollar shortfall for infrastructure spending in Asia in coming years. New infrastructure will drive economic growth and jobs, providing opportunities for Australian trade and business. If Australia becomes a founding member of the AIIB it will be able to influence key decisions and policies as the Bank becomes established.

Mr President, the Committee supports Australia's ratification of the treaty actions in this report and recommends that binding treaty action be taken.

Mr President, on behalf of the Committee, I commend these two Reports to the Senate.