Australia’s Labor Party Seeks Changes in China FTA: Coalition Flays Motivated Campaign To ‘Undermine’ Trade Deal

Australia’s Labor party has announced that it would push for amendments to the free trade agreement with China rejecting the government’s caution that it would further delay the deal and cost Australian industries at least $300 million by 2016. Trade Minister Andrew Robb had ruled out any changes to the deal and also urged Labor to either reject the legislation or shelve their plan to seek amendments to it.

However, senior Opposition MP Andrew Leigh said despite Labor’s support for free trade, it will be taking a 'sensible, safety first' position on China FTA to safeguard the interests of workers as was agreed at the Labour party's recent national conference.

Migrants Vs Local Jobs

The FTA has irked unions on the issue of alleged job loss and the fear that new jobs will go to migrants. They are already running a TV campaign against the China deal. Now Labor stepped in with its readiness to delay the agreement and is keen to attack the Tony ­Abbott regime by painting it as a threat to local jobs. At the party conference, there was internal consensus that the trade agreement needs tweaking to make clear that employers have to hire Australian workers first, before trying to bring in migrants.

What is causing local anxiety is the provision in the China-Australia FTA to allow Chinese investors to apply for skilled migration visas for Chinese nationals to work on projects in Australia. Meanwhile, Labour’s position on China FTA came in for attack by Assistant Minister for Immigration and Border Protection Michaelia Cash, who said the Investment Facilitation Arrangement flowchart released by the government has completely debunked any argument that the Free Trade Agreement is a threat to Australian jobs.

Smear Campaign

Cash blamed Labour’s top brass for raising the union scare against the historic FTA with China. The statement said Labor’s attempt to advance the issue at the National Conference has been blown out of the water. “On the contrary, historic agreement presents enormous opportunities in a range of industries that will stimulate domestic job creation,” Cash said. The minister claimed that multiple requirements and safeguards will automatically ensure that Australians get the first opportunity in the recruitment process. Accordng to the minister, the labour market need must be demonstrated. Also employers must show first opportunity has been offered to Australians, annual reviews will be conducted, training for Australian employees will be delivered and sponsorship obligations will be enforced, the minister asserted. The Department of Foreign Affairs and Trade too published a document to show that the FTA does not dilute the desired skill levels for Chinese visa applicants and tried to set the record straight.

The ruling coalition feels that the ongoing campaign is a motivated one and is being led by the Labor. “Bill Shorten’s decision to support an entirely baseless union campaign against the historic Free Trade Agreement with China demonstrates he cannot unshackle himself from his union roots and has been promoted beyond his abilities,” the minister added.

(For feedback/comments, contact the writer at k.kumar@ibtimes.com.au)