Matt Williams (Hindmarsh, Liberal Party) Share this | Link to this | Hansard source

The current economic situation in South Australia has been well-documented in recent times. We have the highest unemployment rate of all the states in Australia. We are witnessing the downturn in the mining and manufacturing automotive sectors, which is leaving many South Australians concerned about what the future holds. Unfortunately, however, the state government is more focused on having a debate about changing South Australia's time zone than on promoting the opportunities presented by the FTAs and delivering on its 2010 promise to create 100,000 jobs by February 2016.

For all the news about the state's unemployment rate, the decline in manufacturing and the downturn in the mining sector, agriculture and services like education, tourism and health remain strong foundations for South Australia and offer immense growth potential. This growth potential is further heightened by the trifecta of free trade agreements with our Asian neighbours that we have signed over the past 18 months. The opportunities and potential that Asia offers is incredible, and South Australia is well positioned to leverage off the opportunities in front of us. Asia is on our doorstep. Not only is the sheer size of the population in Asia important; the consistent growth of Asia's middle class is key to this.

In the future, Asia will be home to the majority of the world's middle class—one billion people. By 2025, the region will account for almost half of the world's output. The increasingly wealthy and mobile middle class is creating new opportunities and demanding a diverse range of goods and services, health and aged care, education, tourism, and high-quality foods and wines. Thanks to the federal government, South Australian businesses and primary producers have been provided the platform to tap into this market.

The free trade agreements with China, Korea and Japan mark a new era in trade liberalisation for Australia. As the Minister for Trade and Investment, Andrew Robb, always says, they are a truly historic trifecta of agreements that will deliver jobs, economic growth and prosperity for all Australians for decades to come. It is estimated that these agreements will boost the economy by over $24 billion and create thousands of new jobs over the next 20 years—yes, thousands of new jobs. The recently signed China-Australia Free Trade Agreement, ChAFTA, will bring unprecedented opportunities for South Australia's agriculture sector, which will be able to capitalise on its well-deserved reputation as a clean, green producer of premium food and beverage products. ChAFTA closes the gap between Australia and international competitors that already have FTAs with China, such as New Zealand and Chile, and provides a significant advantage over major competitors, such as the US and European Union, which do not have FTAs with China.

To put the impact of the historic China free trade agreement in context: Australia and New Zealand commenced negotiations with China in 2005, with New Zealand finalising its agreement in 2008. Since that time, New Zealand's dairy industry has grown by close to 900 per cent while our dairy sector grew by 150 per cent. New Zealand's free trade agreement with China has been an enormous boost for their economy whilst South Australian dairy farmers had to wait, as did our wineries and food producers.

Already we are seeing some quite extraordinary business opportunities and partnerships emerging between Australian and Chinese companies in anticipation of the China deal coming into force later this year. The recent special signing of an MOU between Adelaide Produce Markets and Guangzhou Jiangnan Fruit and Vegetable Wholesale Market is a prime example of FTAs working for local growers. I was proud to join the Prime Minister, Senator Sean Edwards and South Australian Liberal shadow minister David Ridgway MLC to tour the Adelaide Produce Markets and witness the signing of the MOU. Of this special event and the importance of China FTA, Angelo Demasi, CEO of Adelaide Produce Markets said:

South Australian growers are extremely optimistic about the future trade conditions with China—with all tariffs on horticulture products to go within four to 8 years.

The recent special signing of an MOU between Adelaide Produce Markets and Guangzhou Jiangnan Fruit and Vegetable Wholesale Market is a prime example of the FTA's working for local growers.

The MOU has now paved the way for increased exporting opportunities to China. The Guangzhou Jiangnan Fruit and Vegetable Wholesale Market is one of China's largest wholesale fresh produce markets, which supplies a diverse group of retail customers in China. Needless to say, this poses a significant export opportunity for our local horticulture industry.

This agreement will provide tens of thousands of new jobs, providing hope and opportunity to all Australians, including young Australians including my children, Sasha and Joshua, up there in the gallery today, who are witnessing how important such an agreement is. The free trade agreements are a key plank of our economic strategy to help drive jobs and growth beyond the mining boom. This is critical for South Australia, as we must maximise existing strengths while looking to build new industries.

Just as we have taken advantage of the strong growth in Japan, Korea and China over the last 30 years by supplying minerals and energy to these countries, I believe we will gain enormously by supplying fine food and wine and quality services to those same countries over the next 20 years to come. This is a unique opportunity to grow our economy. We must all act in the best interests of South Australia and our country.