Russell Matheson (Macarthur, Liberal Party) Share this | Hansard source

It is with great pleasure that I rise today in support of the free trade agreement with China which was successfully signed by the government here in Canberra on 17 June this year. Over the last two years this government has had tremendous success in negotiating free trade agreements with our Asian partners including South Korea, Japan and now China. Prior to 2003, Australia's only agreement was with New Zealand. Since then, Australia has entered into agreements with Singapore, Thailand, the US, Chile, Malaysia and of course Japan and Korea. In addition, the Minister for Trade and Investment, the Hon. Andrew Robb, recently announced the conclusion of the Trans-Pacific Partnership negotiations with his counterparts from 11 other countries earlier this month, which will deliver significant benefits to Australia, including new opportunities for our businesses, farmers, manufacturers and service partners in the rapidly growing Asia-Pacific region.

As you can see, Mr Deputy Speaker, Australia has a long history of supporting trade liberalisation, and I am extremely proud of how well this government has built on that legacy. The government's FTA policy aims primarily at maximising the benefits flowing into Australia from the negotiation of these agreements. We know that the FTAs foster freer trade flows and create stronger ties with our trading partners. The FTAs can increase Australia's productivity and contribute to higher GDP growth by allowing domestic businesses to access cheaper inputs, introducing new technologies and fostering competition and innovation.

The FTAs do not just eliminate tariffs. They also address behind-the-border barriers that impede the flow of goods and services between parties, encourage investment and enhance cooperation, and can address other issues such as intellectual property, e-commerce and government procurement. FTAs can enhance the competiveness of Australian exports in the partner market and add to the attractiveness of Australia as an investment destination. FTAs promote regional economic integration and build shared approaches to trade and investment, including through the adoption of common rules of origin and through broader acceptance of product standards. It is therefore undeniable that the signing of a free trade agreement with China is a monumental achievement by this government that will benefit all Australians, now and into the future.

China is of course our largest trading partner, and this deal will result in increased market access outcomes in agricultural exports, resources, energy and manufactured goods exports, service exports and investment. We only need to look at New Zealand, which signed an FTA with China in 2008 which resulted in more than a tenfold increase in New Zealand's exports to China, to see the remarkable benefits of such an agreement.

Today is a great day for this parliament because Labor has finally come to its senses and has chosen to support this historic agreement. I have to admit I find the timing of Labor's change of heart a little curious. As we all know, the CFMEU have been running a virulent and extreme campaign against the agreement, trying to spook the public about hordes of Chinese workers coming to our shores and stealing our jobs, or dodgy Chinese electricians endangering us in our homes through supposedly shoddy work standards—a shameful campaign of fear.

Only this week my office received a glossy package in the mail from the Electrical Trades Union entitled, 'China-Australia Free Trade Agreement: Original Documents with Detrimental Labour Impacts'. This campaign by Labor and the unions is one of the most disgraceful and misleading campaigns that I have had the misfortune of witnessing. The real tragedy of this xenophobic campaign is the effect it is having on people in the community. In September, for instance, I received an email from Bill Guthrie, a local resident from Mount Annan, who wrote:

Mr. Matheson

I spent thirty years as an Electoral contractor. If what Labor is saying i.e. that on a project worth more than $150 million the Chinese can bring their own workforce ... then someone needs to think about the future of their own kids.

I forwarded Mr Guthrie's email to the Honourable Andrew Robb's Office for clarification and here is the response:

Department of Immigration and Border Protection has made it clear that employers seeking to engage overseas workers under a labour agreement must provide evidence of labour market testing.

According to the Department of Immigration and Border Protection, the department will only enter into a project labour agreement where it has been satisfied that Australians have been provided the first opportunity for jobs.

So there we have it in plain English: employers will not be permitted to bring in overseas skilled workers unless there is clear evidence of a genuine labour market need as determined by the Department of Immigration and Border Protection. There will be no reduction in wages for any workers under the FTA with China and the market salary rates and employment conditions that applied before this agreement will continue after it enters into force. Yet the ETU package claims that the FTA with China bypasses legislated procedures for labour market testing and establishing wages and conditions. I find it incredibly disappointing to have received a document like this, which illustrates why people like Mr Guthrie, a local resident of mine, have been so confused and apprehensive about the agreement.

I can tell you what this agreement means for the a2 Milk Company, a business in my electorate that employs many local people. The a2 Milk Company is currently the largest Australian exporter of branded fresh milk into China which it began exporting in August 2014. According to the managing director, Geoffrey Babidge, the growing reputation of the a2 Milk Company in Australia has been driven by strong word-of-mouth recommendations from Chinese nationals living in Australia to their friends and relatives in China. The company is very pleased about the opportunity the FTA provides in boosting access into the China market for their brand, which in turn will provide increased returns for our dairy farmers and more jobs in food processing on a whole.

As you can see, the FTA with China will mean more jobs, more export opportunities and will be a major boost to our economy. I look forward to seeing my electorate of Macarthur reaping the benefits.

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