US-China trade deal could see us suffer: Labor

Labor says the government’s tough talk on China is overshadowing a bigger threat to Australian exporters posed by $80bn US deal.

The deal which would see China purchase $US80 billion of agricultural goods from the US

Scott Morrison should “pick up the phone” and speak to US President Donald Trump to ensure a US-China trade does not occur at the expense of Australian farmers, Labor says.

Opposition spokeswoman for foreign affairs Penny Wong said the government's focus on the bilateral relationship with China was “diverting attention” away from the “big picture,” which could see Australian industry suffer.

The deal which would see China purchase $US80 billion of agricultural goods from the US. China revoked the export certificates of four Australian abattoirs and levied a tax of 80 per cent on Australian barley exports, a decision the government will appeal to the World Trade Organisation

“We’ve got $40 billion of agriculture being sold from the US from China for each year for two years under phase one of the agreement,” Senator Wong told ABC's Insiders on Sunday.

“When I asked questions about this, the department did concede there was a possibility of trade displacement, which is code for Australian farmers, Australian exporters being affected.

“I do not accept that the government can simply ignore the effect of the US-China trade deal … We need to ensure that our interests are not affected and not undermined by that deal between President Trump and President Xi.”

.@SenatorWong says Scott Morrison should talk to Donald Trump directly about the effects of a trade deal between the US and China on Australia's exports to China. #Insiders #auspol pic.twitter.com/R9O4xCrtNZ

— Insiders ABC (@InsidersABC) May 23, 2020

Senator Wong said the government should take a more strategic, long-term view of a more assertive China and questioned why the government had pushed for an independent global inquiry into the origins of coronavirus in China before securing widespread international support.

“If I were the Foreign Minister I probably would have tried to get some support before I announced it,” Senator Wong said.

“This has been a tendency for some in the Coalition to say that talking tough is the same as acting tough.

“I don't think it does, you know, it isn't good for the Australian community and I don't think it does well for our standing in the world.”

Australia's push for the inquiry has subsequently received the backing of 116 nations at the World Health Assembly and has been agreed to in principle by Chinese President Xi Jingping.

Senator Wong also said treasurer Josh Frydenberg must explain how a Treasury reporting error saw the cost of the JobKeeper wage subsidy program revised from $130 billion to $70 billion in front of the Senate Committee into the COVID-19 response, which will request that he appear.

“Josh Frydenberg hasn't fronted up and taken responsibility. He should do that and we will give him the opportunity," she said.

“The chair of the Senate Committee into the COVID-19 response of the government, Senator Gallagher, will call Josh Frydenberg to give evidence at that committee and what I would say to Josh, this is your opportunity to front up and explain $60 billion blunder to the parliament and to the Australian people.”

Senator Wong said the additional money should be used to broaden the scheme to assist some casual workers who are ineligible under current criteria.

“We have some workers excluded and some workers included,” she said.

“When you have got a situation when somebody who has been a casual, worked for 11 months is excluded, someone who is a part-time worker is getting many times more than ordinary time earnings… These are anomalies which we have been pointing.

“Ultimately, these are decisions the government has to make.”