No China free-trade deal would be a disaster, says John Brumby

Former Victorian Premier John Brumby has ramped up the pressure on federal Labor to enact the China-Australia Free Trade Agreement.

Former Victorian premier John Brumby has ramped up the pressure on federal Labor to enact the China-Australia free-trade agreement, saying it would be disastrous for Australia if the deal were not done and the onus was on Bill Shorten to find a way to steer the deal through parliament.

Mr Brumby, in an interview with The Australian to coincide with the launch of his new book, The Long Haul, said the deal had greater potential to change Australia’s economic fortunes than anything on the horizon and was simply a no-brainer.

Mr Brumby, who heads the Australia-China Business Council, said the ALP needed to be a forward-looking reformist party. “In my view, there is no other policy or program or project likely to come before the Australian government and the Australian community that holds as much promise in terms of jobs and opportunities,’’ he said.

“For the Labor Party, it needs to be very clear about finding a way through this debate to ensure that ChATFA is enacted. It’s vital to the Australian economy and our future economic prospects — it’s as simple as that.

He said China was now the largest economy in the world on many measures and the benefits of the FTA were skewed heavily in Australia’s favour. “At the end of the day it is worth a huge amount to Australia. Between the leadership of the Labor Party and the leadership of the Liberal and National parties they need to find a way that this can get through.

“My understanding is that Bill Shorten does want this deal to get through. The bottom line is that if the deal doesn’t get through, it would be a disaster.”

Malcolm Turnbull yesterday challenged the Opposition Leader to retreat from his campaign against the FTA and put forward a proposal to break the political impasse over the landmark deal. Trade Minister Andrew Robb warned Labor against moving to inhibit the ability of FTAs to vary standard labour market testing provisions for foreign workers as part of any compromise. Mr Robb’s warning came as opposition trade spokeswoman Penny Wong was forced to scuttle suggestions Labor was exploring a blanket safeguard applying to all FTAs that would protect local jobs from foreign workers.

With trade and migration experts slamming the plan as unworkable, the Prime Minister turned up the heat on Mr Shorten. “He could make a proposal to me; he could make a proposal to Andrew Robb,” Mr Turnbull told ABC radio. “Mr Shorten’s problem is that he has allowed the CFMEU to run a very, very virulent and extreme campaign ... against the free-trade agreement with China.”

Mr Robb, who is in Atlanta for last-ditch talks to secure a Pacific-wide trade pact, said the government was “prepared to talk to Penny Wong or Bill Shorten about anything specific they want to raise”.

Additional reporting: Joe Kelly