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Australia's free trade agreement with South Korea should be scrutinised Australia's free trade agreement with South Korea should be scrutinised
(6 months later)
Read the fine print. That’s what any prudent lawyer would tell Read the fine print. That’s what any prudent lawyer would tell you to do before signing a contract.
you to do before signing a contract. But when the Abbott government finally released all 1,800-plus pages of the proposed free trade agreement with South Korea this week, its attitude seemed to be “just trust us.”
But when the Abbott government finally Labor knows that reducing barriers to trade can boost Australia’s economic growth, forge more competitive local industries, create jobs, and give consumers greater choice and lower prices. Free trade agreements have the potential to deliver tremendous benefits for Australian consumers, workers and businesses – but whether this potential is realised depends on the quality of the deals which governments negotiate.
released all 1,800-plus pages of the proposed free trade agreement with South Korea this Until this week, the government had been bluntly refusing to release the text of the Korea Australia Free Trade Agreement (KAFTA) for public scrutiny before it signs the final deal. Now the Coalition has belatedly accepted the need for transparency, Labor will examine KAFTA to ensure it is in Australia’s national interest. The tests we will apply are straight-forward.
week, its attitude seemed to be “just trust us.” Does the agreement deliver the best deal for Australian jobs? Is the promised access to Korea’s markets real? Will it erode Australia’s ability to legislate over domestic policy issues in the national interest?
Labor knows that reducing barriers to trade It was the former Labor government that launched negotiations for a free trade agreement with Korea, recognising the importance of Australia’s fourth largest trading partner to our economy. But an initial assessment of the deal the Coalition has delivered suggests there are areas that need close scrutiny.
can boost Australia’s economic growth, forge more competitive local industries, The government has agreed to Korea’s push to include an investor-state dispute settlement mechanism in the agreement. This would allow Korean businesses to take disputes with the Australian government to arbitration. Labor is concerned at the impact of investor-state dispute settlement provisions on Australia’s ability to legislate in areas such as health policy, environmental standards and social policy.
create jobs, and give consumers greater choice and lower prices. Free trade agreements have the potential to In the case of KAFTA, the government claims it has secured carve-outs preserving Australia’s ability to legislate in important policy areas. We remain to be convinced. The onus is on the government to demonstrate how policies such as the Pharmaceutical Benefits Scheme, an important part of Australia’s social safety net, are protected by these provisions.
deliver tremendous benefits for Australian consumers, workers and businesses – Labor is also concerned at the potential impact of KAFTA on Australia’s automotive manufacturing sector.
but whether this potential is realised depends on the quality of the deals which Following the decisions by Ford, Holden and Toyota to stop making cars in Australia, the jobs of thousands of workers at local auto component manufacturers hang in the balance. The future for Australia’s auto component manufacturers is to step up their efforts to become part of the global supply chains which increasingly characterise the world auto industry.
governments negotiate. KAFTA holds out the promise of greater access to the Korean market for Australian auto component manufacturers. Labor will to examine whether KAFTA represents an appropriately balanced package for the auto industry given the severe threats this sector faces at present.
Until this week, the government had been We will also be asking whether the benefits for Australian farmers which the government’s PR machine has lauded are all they purport to be. Apparently some of the government’s own MPs share Labor’s concerns about the quality of the agreement’s provisions on Australian agricultural exports to Korea.
bluntly refusing to release the text of the Korea Australia Free Trade Agreement The Liberal backbencher Sharman Stone, who represents the Victorian farming electorate of Murray, has criticised the agreement for failing to deliver tariff reductions for a raft of Australian food exports.
(KAFTA) for public scrutiny before it signs the final deal. Now the Coalition has belatedly accepted It is particularly disappointing that apples, pears and honey will not be exempted from the existing exorbitant tariffs, nor frozen pork, or condensed milk, given Australia enjoys a disease free status for these products unequalled in the world.
the need for transparency, Labor will examine KAFTA to ensure it is in By contrast, the trade minister Andrew Robb was eager to talk up Korea’s agreement to phase out its tariffs of between 40 and 72% on Australian beef over 15 years.
Australia’s national interest. The tests we will apply are straight-forward. Yet, in the fine print, Robb has given the Korean government the right to unilaterally reimpose significant tariffs on Australian beef if the volume of our exports grows by only 2% a year, and he has conceded similar “safeguard measures” for other Australian farm exports. The minister should explain why he failed to negotiate comparable safeguards for sensitive Australian sectors like auto components or steel making.
Does the agreement deliver the best deal Labor is determined to ensure that the Abbott government does not trade away the national interest for its own political interest in notching up “trophy” trade deals.
for Australian jobs? Is the promised access to Korea’s markets real? Will it
erode Australia’s ability to legislate over domestic policy issues in the
national interest?
It was the former Labor government that
launched negotiations for a free trade agreement with Korea, recognising the
importance of Australia’s fourth largest trading partner to our economy. But an initial assessment of the deal the
Coalition has delivered suggests there are areas that need close scrutiny.
The government has agreed to Korea’s push to
include an investor-state dispute settlement mechanism in the agreement. This
would allow Korean businesses to take disputes with the Australian government
to arbitration. Labor is concerned at the impact of investor-state
dispute settlement provisions on Australia’s ability to legislate in areas such
as health policy, environmental standards and social policy.
In the case of KAFTA, the government claims
it has secured carve-outs preserving Australia’s ability to legislate in
important policy areas. We remain to be convinced. The onus is
on the government to demonstrate how policies such as the Pharmaceutical
Benefits Scheme, an important part of Australia’s social safety net, are
protected by these provisions.
Labor is also concerned at the potential impact
of KAFTA on Australia’s automotive manufacturing sector.
Following the decisions by Ford, Holden and
Toyota to stop making cars in Australia, the jobs of thousands of workers at local
auto component manufacturers hang in the balance. The future for Australia’s auto component manufacturers
is to step up their efforts to become part of the global supply chains which
increasingly characterise the world auto industry.
KAFTA holds out the promise of greater
access to the Korean market for Australian auto component manufacturers. Labor will to examine
whether KAFTA represents an appropriately balanced package for the auto
industry given the severe threats this sector faces at present.
We will also be asking whether the benefits
for Australian farmers which the government’s PR machine has lauded are all
they purport to be. Apparently some
of the government’s own MPs share Labor’s concerns about the quality of the agreement’s
provisions on Australian agricultural exports to Korea.
The Liberal
backbencher Sharman Stone, who represents the Victorian farming electorate of
Murray, has criticised the agreement for failing to deliver tariff reductions
for a raft of Australian food exports.
It is
particularly disappointing that apples, pears and honey will not be exempted
from the existing exorbitant tariffs, nor frozen pork, or condensed milk, given
Australia enjoys a disease free status for these products unequalled in the
world.
By contrast, the trade minister Andrew Robb
was eager to talk up Korea’s agreement to phase out its tariffs of between 40
and 72% on Australian beef over 15 years.
Yet, in the fine print, Robb has given
the Korean government the right to unilaterally reimpose significant tariffs on
Australian beef if the volume of our exports grows by only 2% a year, and he has conceded similar “safeguard
measures” for other Australian farm exports. The minister should explain why he failed
to negotiate comparable safeguards for sensitive Australian sectors like auto
components or steel making.
Labor is determined to ensure that the Abbott
government does not trade away the national interest for its own political
interest in notching up “trophy” trade deals.