Shorten ‘risks’ Jakarta trade pact , says Morrison

Indonesia and Australia have signed a trade agreement that commits the two countries to economic collaboration.

Australian Trade Minister Simon Birmingham, left, and Indonesian Trade Minister Enggartiasto Lukita sign a free-trade agreement between the two countries in Jakarta yesterday. Picture: Achmad Ibrahim/AP

Scott Morrison has lashed out at Bill Shorten for not offering an immediat­e commitment to help pass a historic free-trade deal — which has overcome years of diplomat­ic stoushes and mutual mistrust — through parliament.

Labor’s new trade policy introduced last year bars the party from supporting new deals that include investment dispute clauses or ease the entry of foreign workers to Australia.

The policy has already held up the ratification of the Peru-Aust­ralia trade deal and the Prime Minister said Labor’s trade stance posed a “risk” to the deal with Jakarta.

While the Opposition Leader said yesterday he was positively disposed to the deal, he wanted to “study the detail” and ensure it did not hit Australian jobs.

Indonesia and Australia set aside years of rocky negotiations to sign a broad trade agreement that commits the nations to unprecedented economic collaboration.

The Australian revealed this week that Labor was under pressure­ from unions to scuttle the deal, with the labour movement citing fears it would hurt Austral­ian workers, exploit foreign labour and undermine national sovereignty by allowing international rulings on investment disputes.

Under a side deal, yet to be publicly released, the number of working visas available to Indon­esians will rise from 1000 to 4100 a year, but Trade Minister Simon Birmingham accused the unions of “shameful scaremongering” over clauses opening Australia’s labour market to Indonesian workers.

“There is no new, no additional labour market testing waivers crea­ted as a result of this agreement compared with what is already in place,” Senator Birmingham said.

There is little chance of laws that would ratify the agreement passing parliament before the federal­ election, due to the lack of sitting days. But Labor sources said that, if elected, the party was likely to seek renewed negotiations with Indonesia over the investment dispute­ clauses which may allow foreign companies to sue the Australian government.

A source said there were fewer concerns in the party so far about the labour clauses as there did not appear to be any expansion of waivers which allow companies to import workers without first offering the jobs to locals.

The National Farmers Federation and Business Council of Aust­ralia urged Labor to support the deal’s ratification. “It is a matter­ of significant national importance that free-trade agreements … enjoy bipartisan support and rapid passage through both houses,” NFF chief executive Tony Mahar said.

The agreement was signed by the respective trade ministers at a ceremony marked more by a sense of relief than buoyancy among business representatives from both sides looking on.

“Today is definitely one of the brightest moments in Indonesian-Australian relations,” said Indonesian Trade Minister Enggartiasto Lukita. Senator Birmingham said the deal marked a “new chapter of co-operation and economic engagement” between the nations.

Negotiations stalled a number of times — after revelations that Australia had spied on the Indon­esian cabinet, and again following the 2015 execution of Bali Nine ringleaders Andrew Chan and Myuran Sukumaran. Then, a few months ahead of the expected signing last November, the Prime Minister announced that Australia was considering recognising Jerusalem as the Israeli capital. Miffed that they had not been forewarned, the Indonesians deferre­d again.

Imminent elections in both countries will likely delay the ratification of the deal before it comes into force. Free trade is also a politically sensitive topic in Jakarta.

Both Senator Birmingham and Mr Lukita said they hoped the deal would be ratified and come into force by the end of this year.

Should that occur, the deal would reduce or eliminate tariffs on 99 per cent of Australia’s curren­t trade with Indonesia, and improve access for Australian cattle­, vegetable and grain farmers — including 500,000 tonnes of additional Australian grain bound for Indonesian feedlots — to Indon­esia’s 260 million people.

Additional reporting: Nivell Rayda