- Negotiations
A bilateral trade agreement between Australia and China was finalised in 2015.
This agreement is controversial in Australia because it increases entry of temporary Chinese workers in a large number of occupations, without testing first if local workers are available. There are also provisions for Chinese companies with projects worth over $150 million to negotiate the number of foreign workers they bring in as well as their pay and conditions. This is the first time an arrangement which could allow most of the workforce to be imported has been included in any Australian trade agreement. It is unclear whether recent changes to the regulations of Australia’s Migration Act will be sufficient to ensure that such workers are not exploited.
Temporary migrant workers in Australia are already at a high risk of exploitation. There have been a number of studies showing exploitation of temporary workers, working long hours in dangerous conditions at less than minimum wages. Without greater protections in place there are concerns that increased numbers of temporary workers negotiated through trade agreements could lead to more cases of exploitation.
One important impact of the agreement is how it will open the doors to more Chinese investment in Australian agriculture. China is looking to secure its food supply by investing in agribusiness abroad, whether by investing directly in farms or buying into supply chains. Australia is an important source of meat and to a lesser extent dairy for China, and so ChAFTA is expected to boost Chinese deals in Australia’s livestock industry.
The ChAFTA is also controversial because it contains Investor-State Dispute Settlement (ISDS) provisions, which allow foreign investors to bypass national courts and sue governments before an arbitration tribunal for compensation if they can argue that changes to law or policy harm their investment. This gives increased power to corporations at the expense of democracy and the public interest.
Contributed by AFTINET
last update: March 2016
Photo: PughPugh/CC BY 2.0
21-Jun-2013
Global Times
In the most recent talks, held in Beijing earlier this month, the Australian government reported "good progress" on sanitary issues and technical barriers to trade, and "constructive discussions" on trade in goods, customs procedures, investment and dispute settlement, but this is not good enough, Shadow Minister for Foreign Affairs and Trade Julie Bishop says.
3-Jun-2013
Financial Review
The Australian government is under pressure to conclude a free-trade agreement with China in an effort to help restore the competitiveness of Australian farmers, who have been hurt by the high dollar and rising costs.
19-Apr-2013
The Australian
The Gillard government has abandoned a comprehensive free-trade agreement with China to focus on a "trimmed-down" agriculture deal, according to The Australian
18-Apr-2013
The Australian
Chinese political leaders had made the lifting of foreign investment restrictions on state-owned enterprises a non-negotiable condition of any free trade talks with Australia.
10-Apr-2013
Sky News
Asutralian Prime Minister Julia Gillard says talks on a free trade agreement between China and Australia will continue next month.
8-Apr-2013
Though talks on a free trade agreement with China have lagged for years, Australia wants to finish them to further boost bilateral economic ties, Australian Prime Minister Julia Gillard said Sunday.
1-Mar-2013
ABC
The growing size and value of China’s investments in Australia makes the case for a bilateral investment treaty increasingly urgent, according to a leading China expert.
16-Sep-2012
At first blush, it looks like a suicide mission - taking hundreds of businesspeople to China for a big encounter with a one-party state, just weeks before that one party is to stage a 10-yearly leadership transition that will cascade down through every significant job in the country.
26-Jul-2012
Stock & Land
China has been pushing to accelerate negotiations on an FTA with Australia, and has recently indicated it would want more liberal rules to apply to state-owned enterprises.
28-Jun-2012
Adelaide Now
The South Australian Government has signed a trade and economic cooperation agreement with China in a bid to grow exports.