bilaterals.org logo
bilaterals.org logo

Australia-China

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


Australia optimistic about free trade pact with China
Australian Trade Minister Mark Vaile said negotiating an FTA with China would be "arguably more important" than the Australia-US free trade deal recently concluded and due to come into operation on January 1.
Fast track Australian FTA with China: farmers
Australian grain growers, who stood to gain billions of dollars in new trade targeting the Chinese food and livestock sectors, are demanding that the federal government fast track a free trade deal with China.
Fear grows as FTA looms
Canberra seems certain to press ahead with negotiations for a free trade agreement with China, possibly within a year, despite growing concerns from manufacturers.
Why We Want an FTA with China (Australia)
Last week in Sydney, a valuable conference co-sponsored by the Department of Foreign Affairs and Trade revealed one Government priority that is hardly its best-kept secret. Now that the US free trade agreement has been pocketed, the Government is determined to negotiate a free trade agreement with China, and will pay what it takes to get it.
Sino FTA raise job loss concerns: Downer
A free trade deal between Australia and China would generate controversy because of its possible impact on Australian manufacturers, Foreign Affairs Minister Alexander Downer said.
China-Australia: Free trade foreplay to speed up
Australia and China have agreed to accelerate overtures that could lead to a free-trade agreement, after talks between Trade Minister Mark Vaile and top-ranking Chinese ministers in Beijing.
Australia, China FTA talks progressing rapidly
Talks on a free trade agreement between Australia and China are moving faster than was anticipated, foreign minister Alexander Downer said today.