Shayne Neumann (Blair, Australian Labor Party, Shadow Minister for Indigenous Affairs) Share this | Link to this | Hansard source

I rise to speak on this legislation before the chamber. The Singapore-Australia Free Trade Agreement was first signed in 2003, described as the pillar of the economic relationship between the countries. The amendments to the Singapore-Australia Free Trade Agreement were signed between our two countries on 13 October 2016. These two bills before the House today deal with the tariff and customs changes to implement the most recent amendments to the agreement. They amend the Customs Act. The legislation introduces new rules of origin for goods imported from Singapore, introduces a new procedure to claim preferential tariff treatment for goods that originate in Singapore and extends record-keeping obligations to also apply to Australian-originating goods that are exported to Singapore. It amends the Customs Tariff Act to provide for excise equivalent rates of duty on certain alcohol, tobacco, fuel and petroleum products. Labor will support the legislation before the House today.

Australia has an enduring relationship with Singapore and this is one of the fundamental reasons for Labor agreeing to support these amendments. The importance of this relationship is recognised by the fact that Australia and Singapore's two-way trade was valued at $22.7 billion in 2016 alone, with Australian exports to Singapore, including merchandise and services, valued at $10.3 billion in the same year. The relationship between our countries began in the mid-1960s following Singapore becoming an independent nation. In fact, Australia was the first country to recognise Singapore, establishing our ties as allies and friends. Our shared values run deep. Singapore is a market economy with shared ties across trade, defence, science, innovation, education and the arts. Singapore is one of the leading countries for Australian expats who live and work overseas, while the Singaporean community in Australia stands at more than 50,000 people.

Like many members in this House, I have had the privilege to travel as a federal member of parliament to Singapore and to meet with business leaders and fellow politicians and leaders as part of enhancing and building our relationship. It is an enduring relationship and always warmly welcomed. Our two countries share strong military ties, committed to safety and security throughout the Asia-Pacific region since the Five Power Defence Arrangements of 1971. Members of the Republic of Singapore Air Force visited RAAF Base Amberley, in my own electorate of Blair, in August 2016 to conduct training flights following their commitment to Exercise Pitch Black in northern Australia.

Against any challenges Australia may face in the Asia-Pacific region, we have confidence in the shared values and friendship of the Singaporean people. The amendments to the Customs Act introduce new rules of origin for goods that are imported into Australia from Singapore. These amendments give effect to a new chapter of the amended Singapore-Australia Free Trade Agreement by inserting a new division into Part VIII of the Customs Act. The new division is headed 'Singaporean originating goods' and sets out new rules for determining whether goods are Singaporean-originating goods. This allows goods that are imported into Australia to be eligible for a preferential rate of customs duty under the Customs Tariff Act. It's important to allow the amended agreement to have its intended purpose of preferential entry of certain goods from Singapore into Australia.

These new rules will operate as an alternative for a transition period of three years. This will allow importers from both Singapore and Australia to understand and adapt to the new requirements before the previous ones are repealed. The legislation extends record-keeping obligations that apply to goods exported to Singapore that are claimed to be produce and manufacture of Australia. New record-keeping obligations are found throughout Division 4A of Part VI of the Customs Act and will now apply to Australian-originating goods exported into Singapore. I can recall, on a trip to Singapore, going to the dairy section in one particular supermarket and thinking that I was in the Yamanto Shopping Village in my electorate of Blair! There were so many Australian goods in the dairy section.

The legislation also inserts a new Schedule 4A to provide for excise-equivalent rates of duty on certain alcohol, tobacco, fuel and petroleum products. They complement other major changes that have been made and also provide, as I just previously outlined, duty-free access for most eligible goods under the new division of Part VIII. The bill amends certain concessional items to maintain custom duty rates. As for goods that are determined to be Singaporean-originating goods, they're not classified under Schedule 4A. They will have an applicable rate of custom duty of 'free'. This is consistent with similar goods covered under other free trade agreements, and this will ensure that Australian importers and in turn Australian businesses and members of the public are not paying a customs duty they don't have to pay.

Trade with Singapore is fundamental in encouraging economic activity and opportunity for Australia. It's essential for creating jobs in Australia. Australian workers in education, law, e-commerce, telecommunications and professional services stand to benefit from the amended agreement as it would include recognition of a number of Australian qualifications. The amended Singapore-Australia Free Trade Agreement was examined by the Joint Standing Committee on Treaties, which unanimously supported the entry of the agreement into force. The Labor members of that particular committee did raise concerns in relation to the amended agreement. The Liberal's trade deals with China, Japan and South Korea have all included loopholes that waive local labour market testing for contractual service suppliers. On this side of the chamber, we think that's unwelcome. Labour market testing requires employers wanting to bring in overseas workers to test the local labour market first. This is to make sure that there are no suitably qualified and experienced local workers ready to fill those positions prior to bringing in overseas workers. It's about putting local workers first.

The Liberal and National parties have never supported labour market testing. In my time—nearly 10 years in this place—they've continuously voted against it. The Turnbull government has gone ahead and removed labour market testing for contractual service suppliers under the Singapore-Australia Free Trade Agreement. It's not good enough at a time when unemployment is above 10 per cent in parts of Australia and youth unemployment is over 20 per cent, particularly in my home state of Queensland. It's not good enough when mums and dads across Australia are doing everything they can to ensure that they provide for their families despite record low wages growth, rising energy prices and—we think, on this side of the chamber—tax cuts for millionaires and multinationals, all under the Turnbull government.

I was recently in Rockhampton as part of Labor's commitment to regional Australia. In March this year, Rockhampton, in my home state of Queensland, had an unemployment rate of 8.27 per cent compared with the national average of 5.9 per cent. The Rockhampton locals I spoke with just a week or so ago condemned the Liberal and National parties for abandoning local workers and selling them out under the recent free trade agreements. The Turnbull government should make sure local workers get the first shot at a local job. Instead it's gone ahead and created another loophole to undermine our skilled migration program and sell out local workers. This removal of labour market testing also directly contradicts the government's own announcement of mandatory labour market testing for all temporary skill shortage visa applicants. Labor's policy on temporary work visas includes a commitment that Labor will not sign away labour market testing requirements in any trade deal it does in government. Free trade agreements should not be used to weaken or undermine Australia's skilled migration system.

Labor does not support the inclusion or retention of investor-state dispute settlement provisions—ISDS—in free trade agreements. It's important to remember ISDS provisions were used in the past against governments seeking to legislate in the national interest. The legal action the tobacco giant Philip Morris took against Australia's revolutionary plain packaging laws was under ISDS provisions. Fortunately, the amended version of the Singapore-Australia Free Trade Agreement does make some positive steps. There are new explicit exemptions for governments to regulate to ensure the protection of public welfare, including areas of health and the environment. This means ISDS provisions will not apply to tobacco control measures, Australia's Pharmaceutical Benefits Scheme, Indigenous traditional cultural expressions, as well as Australia's foreign investment policy, including decisions made by the Foreign Investment Review Board. At the last election, Labor committed that in government it would seek to remove ISDS provisions in existing free trade agreements and would not sign agreements that included ISDS provisions.

The Labor members of the Joint Standing Committee on Treaties also critiqued a lack of transparency in the negotiation of the amended agreement and the absence of independent economic analysis. This is concerning because independent economic modelling has been recommended by numerous JSCOT inquiries as well as Senate inquiries, including JSCOT's inquiry into the Trans-Pacific Partnership. Increased transparency and independent economic analysis would provide the public with greater certainty and confidence that Australia's trade deals are of high quality and will help create Australian jobs and increase exports. If the Turnbull government were truly committed to putting Australian jobs first, it would be committed to transparency and independent economic modelling when committing to free trade agreements.

Labor has consistently demonstrated its bipartisan commitment to our country's relationship with Singapore, and it will continue to do so by supporting the legislation before the chamber. We do have legitimate concerns about the Turnbull government waiving labour market testing for contractual service suppliers under the amended agreement. The Turnbull government's commitment to Australian jobs and increased exports is also questionable because of its failure to negotiate transparent and proper scrutiny as well as provide independent economic modelling.

Unlike the Turnbull government, Labor is focused on supporting Australian jobs. We won't sign away labour market testing requirements in any trade deal that we do in government. We will always continue to support our engagement with other countries in the Asia-Pacific region, such as Singapore, to ensure the framework relating to tariffs is clear and functional. Classifications and tariffs have real financial impacts for Australian businesses, consumers and Australian jobs. Labor will do everything in its power to support the Australian economy rather than detract from it. For these reasons, we will support the legislation before the chamber.

Debate adjourned.