Unions slam UAE trade deal over nation’s abuse of workers

The ACTU has slammed a proposed trade pact between Australia and the United Arab Emirates, placing pressure on the Albanese government to back down from the deal.

ACTU secretary Sally McManus. Picture: NewsWire / Martin Ollman

The ACTU has slammed a proposed trade pact between Australia and the United Arab Emirates, placing pressure on the Albanese government to back down from the deal which promises to pour billions of dollars of investment into critical minerals industries.

In a rare split between the union movement and Labor, ACTU secretary Sally McManus said the government should dump the deal, formally known as the Australia-UAE Comprehensive Economic Partnership Agreement, citing the gulf state’s abysmal record on workers’ rights.

“Trade unions are not allowed to operate, and workers are prohibited from collectively org­anising and bargaining,” Ms McManus said. “This is effectively a system of modern-day slavery … Regimes that violate fundamental rights should not have access to a special trading relationship with Australia.”

Several religious, climate, human rights and social service groups, including the ACTU, demanded the agreement be shelved in a letter to Trade Minister Don Farrell on Wednesday.

“We are concerned that Australia is negotiating a preferential trade agreement with the UAE despite gross violations of human rights and labour rights and weak environmental standards,” the letter reads.

“Australia should not reward these violations with a preferential trade agreement.”

Justifying its demands, the letter cites UAE’s non-existing labour protections, widespread reports of systemic discrimination against women, criminalisation of homosexuality, and inaction on climate change.

Senator Farrell did not respond to a request for comment, but The Australian understands the government remains committed to negotiating the trade deal.

The UAE is currently Australia’s largest trading partner in the Middle East, with two-way trade of goods and services valued at almost $9.3bn in 2022.

At the COP28 summit held in Dubai, the UAE set its sights on access to critical minerals to assist in its emissions-reduction efforts, unveiling a $US30bn climate-focused investment vehicle, with Senator Farrell hoping to marry this demand with preferential treatment for Australia’s abundant supplies of critical minerals and rare earths.

Speaking in Senate estimates last month, Senator Farrell confirmed he hoped the deal could be finalised as soon as October, having already held several meetings with members of the UAE ministry. “The indications from the United Arab Emirates are that they are very keen to reach an agreement. They don’t see any ­impediments as to why we can’t reach an agreement, and we are in a similar position,” he said.

The ACTU’s criticism over the pact comes amid disrupted commercial shipping flows gumming up global trade and threatening to push already-elevated freight rates even higher, stoking prices for imported retail and manufactured goods.

Flotillas of container ships have begun to amass at ports around the world, with Houthi rebel attacks in the Red Sea effectively blocking the Suez Canal.

A pull forward of orders by US importers amid speculation of further trade sanctions under a second Trump administration has also put pressure on freight costs.

“We’re seeing a mass exodus of Chinese goods through Asian ports … there’s only a certain number of ships in the world. If there’s more stuff to be carried on the ships than ships available, that puts upward pressure on prices.” NDIS Minister Bill Shorten said.

Anthony Albanese said the government was working to reduce the risk of shipping gridlock by delivering a “strategic fleet” to bolster national resilience.