The Australian, Canberra

Rann wants China FTA on COAG agenda

13 September 2006

The South Australian Government is pushing for debate on the proposed China free trade agreement at the next premiers’ meeting, worried the deal could hurt Australia’s manufacturing sector.

SA Premier Mike Rann has released a discussion paper on the issue and wants it on the agenda of the Council of Australian Governments (COAG) meeting, due to be held next February.

The sixth round of negotiations for an FTA wrapped up in Beijing last week, but China failed to make any offer to open its markets for manufactured and farming goods.

Federal Trade Minister Mark Vaile is pushing for a comprehensive agreement that covers all products and sectors.

But Mr Rann warned of the dangers of a "headlong rush powered by ideology rather than industrial reality" in the talks.

"I do not want the jobs of Australian workers - particularly manufacturing jobs - offered up on the altar of short-term thinking," he said.

"Raising it at COAG will allow the nation’s leaders to consider the costs as well as the benefits of a free trade agreement with China, particularly in respect to our manufacturing industries."

Mr Rann said he had particular concerns about China’s lack of enforcement of intellectual property rights, with Australian manufacturers already worried about the amount of cheap Chinese product copies on the market.

"There is a very strong danger that an FTA with China - without the toughest safeguards and without a very strong enforcement arm - could see Australia shoot itself in the foot when it comes to being a successful manufacturing and trading nation," he said.

An FTA with Australia would be China’s first free trade deal with a developed nation.

There is already intense debate within the federal coalition about the level of tariff cuts Australia should offer in sectors including the car industry and textile, clothing and footwear manufacturing.

Last month, however, Industry Minister Ian Macfarlane insisted the tariffs for those sectors would not change.

The next round of FTA negotiations is due to be held in Australia in December.