Unions win a role at free-trade talks

Unions would be given greater input into free-trade deals under a Labor plan to impose tougher restrictions on new agreements.

Opposition trade spokesman Jason Clare said the overhaul would “rip away the veil of secrecy” on new trade deals. Picture: Alix Sweeney

Unions would be given greater input into free-trade deals under a Labor plan to impose tougher restrictions on new agreements, with the ACTU lauding the overhaul yesterday for putting “working people ahead of the greed of multinational corporations”.

Changes to the ALP platform — agreed to at yesterday’s national conference — will see Labor legislate new rules prohibiting trade deals that waive ­labour-market testing or which include Investor State Dispute Settlement provisions allowing foreign companies to sue the Australian government.

The Morrison government fears the Labor shake-up would pose a threat to free-trade deals negotiated with Peru and Hong Kong while also derailing efforts to finalise an agreement with ­Indonesia.

Under the Labor plan, a full-time negotiating team would be established within the Department of Foreign Affairs and Trade to negotiate the removal of ISDS clauses and the reinstatement of labour-market testing where it has been waived in existing free-trade agreements.

In office, Labor will move to ensure that unions, industry and community groups have greater input in new trade deals through the establishment of an “accredited advisers” program. This would see the draft text of a free-trade deal provided to stakeholders after each round of negotiations.

Labor will also insist on a “preliminary national interest assessment” which would, on the commencement of negotiations, set out the key priorities and objectives of a free-trade agreement.

Trade Minister Simon Birmingham told The Australian that Labor’s policy was an “acquiescence to union demands rather than a policy that will secure more opportunities for Australia’s farmers and businesses”.

“Bill Shorten has effectively waved the white flag on securing any new market access for Australia, preferring instead to outsource his trade policy to the ACTU,” he said. “By risking our competitive trade position Bill Shorten will put at risk the jobs of thousands of Australians.”

Opposition trade spokesman Jason Clare said the overhaul would “rip away the veil of secrecy” on new trade deals and rejected arguments the shake-up represented a return to protectionism.

ACTU president Michele O’Neil said the policy would put the “interests and economic security of working people ahead of the greed of multinational corporations”.

“This means a trade policy that puts fairness first,” she said. “We need a policy that stops big business using trade agreements and temporary visas to attack local jobs and drive down wages.”

Under the ALP’s trade policy, a Shorten government would have the scope to renegotiate trade deals that have already been signed before the enabling ­legislation is brought to a vote in parliament.

An “independent national interest assessment” of the social and economic impacts of the text of a free-trade deal will be conducted to inform parliamentary debate.

The Labor policy will also prevent a Shorten government from signing up to free-trade deals that include provisions requiring the privatisation of any public services, pose a threat to the Pharmaceutical Benefits Scheme or undermine commonwealth procurement arrangements.