Anthony Albanese must keep the bad old days in the rear-view mirror

Anthony Albanese. Picture: NCA NewsWire / Martin Ollman

Anthony Albanese must do everything in his power to reject a return to the bad old days of protectionism, tariffs and misguided subsidies that held back Australia from participating in an open, multilateral global trading market.

Labor heroes Gough Whitlam, Bob Hawke and Paul Keating were champions of free trade who stared down union threats and apocalyptic prophecies that engaging with global partners would shut down industry, kill jobs and destroy the economy.

Our free-trade agreements wouldn’t exist if negotiations were left to union chieftains and activists desperate to insert social, economic, justice and green clauses that while well-intentioned would find no suitors.

Albanese is lucky to have Labor Right-faction powerbroker Don Farrell as his Trade Minister. He is one of the most sensible, pragmatic deal-makers in cabinet.

While he has appeased union chiefs in opposing Investor-State Dispute Settlement clauses in future FTAs, his parliamentary inquiry is a peace offering ahead of next week’s ALP national conference.

If some more extreme motions put forward by unions won support from the government, Australia’s 10 existing trade deals with ISDS provisions would likely be pulped. These include the CPTPP and trade deals with China, Korea and Indonesia. It’s akin to signing a contract to buy a house and coming back to the seller years later to ask for a new contract.

Farrell, who is leading negotiations on an EU free-trade agreement that many have tried and failed to secure because of complex internal EU politics, has no interest in trashing existing agreements with key trading and security partners.

Shortly after the 2013 election, former Coalition trade minister Andrew Robb announced the trade agreement with South Korea. The swift ratification of the FTA was made possible by the work of his predecessor, Craig Emerson, who had effectively sealed the deal but was stymied by union pressure.

“I acknowledge the constructive work of my predecessor Craig Emerson. Unfortunately for Australia, this ISDS became a major stumbling block with Korea under the previous government on account of pressure exerted by elements of the union movement, which is ideologically opposed to free trade,” Robb told parliament.

National conference in Brisbane next week will see thousands of union officials, delegates, party members and MPs converge on the Sunshine State. There will be barneys over AUKUS and social and economic policy but ALP officials are praying the factions can argue their points without embarrassing the government.