Australia-China
A bilateral trade agreement between Australia and China was finalised in 2015.
This agreement is controversial in Australia because it increases entry of temporary Chinese workers in a large number of occupations, without testing first if local workers are available. There are also provisions for Chinese companies with projects worth over $150 million to negotiate the number of foreign workers they bring in as well as their pay and conditions. This is the first time an arrangement which could allow most of the workforce to be imported has been included in any Australian trade agreement. It is unclear whether recent changes to the regulations of Australia’s Migration Act will be sufficient to ensure that such workers are not exploited.
Temporary migrant workers in Australia are already at a high risk of exploitation. There have been a number of studies showing exploitation of temporary workers, working long hours in dangerous conditions at less than minimum wages. Without greater protections in place there are concerns that increased numbers of temporary workers negotiated through trade agreements could lead to more cases of exploitation.
One important impact of the agreement is how it will open the doors to more Chinese investment in Australian agriculture. China is looking to secure its food supply by investing in agribusiness abroad, whether by investing directly in farms or buying into supply chains. Australia is an important source of meat and to a lesser extent dairy for China, and so ChAFTA is expected to boost Chinese deals in Australia’s livestock industry.
The ChAFTA is also controversial because it contains Investor-State Dispute Settlement (ISDS) provisions, which allow foreign investors to bypass national courts and sue governments before an arbitration tribunal for compensation if they can argue that changes to law or policy harm their investment. This gives increased power to corporations at the expense of democracy and the public interest.
Contributed by AFTINET
last update: March 2016
Articles
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2-Apr-2019 Queensland Country Life China FTA safeguard sting
If safeguard is triggered, tariff reverts to the lesser of WTO most-favoured-nation (MFN) applied rate of customs duty in effect on the date the safeguard measure is applied or the original base rate of the tariff reduction schedule. -
2-Nov-2017 Weekly Times Australia China FTA: First Wellard cattle shipment to China
Cattle exporter Wellard has made its first shipment of beef cattle to China for processing, under the Australia China Free Trade Agreement. -
22-Sep-2017 ICTSD Chinese, Australian officials prepare for trade accord review
Officials are preparing for the upcoming review of certain chapters within the China-Australia Free Trade Agreement. -
10-Apr-2017 CCTV China, Australia to prepare for FTA upgrade talks: ministry
China and Australia will prepare to begin talks on upgrading a bilateral free trade agreement (FTA) between the two nations. -
10-Apr-2017 China.org.cn La Chine veut élargir ses accords de libre-échange avec l’Australie et la Nouvelle-Zélande
La Chine fera les premiers pas avec l’Australie et la Nouvelle-Zélande cette année pour préparer l’élargissement de ses accords de libre-échange respectifs avec les deux pays. -
24-Mar-2017 Scoop China FTA review should ditch controversial clause
China FTA review should ditch controversial temporary worker clause, says AFTINET. -
23-Mar-2017 Reuters Australia, China to boost trade with beef making the cut
Australia and China are expected to sign new bilateral agreements on beef exports, energy and security. -
6-Jun-2016 Invest in Australia Warnings over lack of safeguards in China Australia free trade ChAFTA deal
The Electrical Trades Union has lashed the Federal Government following revelations that seven Chinese workers were exploited and paid a fraction of their legal entitlements. -
15-Dec-2015 SBS Govt to forgo $4.2b in China tariffs
The China free trade agreement will sap $4.2 billion from federal government tariff revenues. -
4-Dec-2015 Lexology ISDS in ChAFTA - where’s the beef?
A guide to ISDS in the China-Australia Free Trade Agreement: A hollow promise or an answer to ISDS’ critics? -
26-Oct-2015 The Australian Food giant Metcash targets China’s middle class in online push
Australia’s largest food and liquor wholesaler is looking to Chinese middle-class shoppers to boost its fortunes, setting up space in one of China’s largest online shopping malls as part of a broader push into a huge market that is increasingly infatuated with Australia brands and produce. -
23-Oct-2015 Le Petit Journal ChAFTA - Opposition et gouvernement ont trouvé un accord sur le traité sino-australien
L’opposition travailliste a trouvé un accord avec le gouvernement sur le China-Australia Free Trade Agreement, après des concessions du Ministre du Commerce sur la régulation de l’immigration créée par ce traité. -
21-Oct-2015 Stock & Land Labor finally approves China-Australia free trade agreement
The China-Australia free trade agreement will come into force before the end of the year after a compromise deal was finally struck between the federal government and opposition. -
12-Oct-2015 http://www.afr.com/news/politics/co... Coalition expects to cut deal with Labor over China trade agreement
Australian Financial Review Coalition expects to cut deal with Labor over China trade agreement 12 October 2015 By Phillip Coorey There have been several discussions between Trade Minister Andrew Robb and his opposition counterpart, Penny Wong. Photo: Andrew Meares The federal government is leaning towards doing a deal with Labor on the China-Australia Free Trade Agreement but argues that such a decision would be a pragmatic one designed to get the deal in place, and not a concession (...) -
22-Sep-2015 Labor’s FTA worker test ‘discriminates against China’
Bill Shorten’s demand to impose new labour market testing requirements on Chinese workers who may come to Australia under the China-Australia free-trade agreement would involve actively discriminating against China compared with Australia’s other FTA partners, according to the think tank headed by former Labor foreign minister Bob Carr. -
18-Sep-2015 New Aussie PM Turnbull staunch supporter of China-Australia FTA
Australia’s new Prime Minister Malcolm Turnbull has only been in the job for four days but has already made it clear that one of his most important tasks is to have the China-Australia Free Trade Agreement (ChAFTA) pass through the parliament. -
17-Sep-2015 Red Flag Why we should oppose the free trade agreement with China
There’s freedom for the bosses to hire and fire at will and to shut down their businesses, throwing thousands onto the dole. But there’s little freedom for workers to strike for their rights. -
14-Sep-2015 The Japan Times Auto parts differences between Japan, U.S. and others seen clouding prospects for next TPP ministerial talks
The 12 countries taking part in Trans-Pacific Partnership free trade negotiations are likely to face difficulties in arranging a ministerial meeting as Japan, the United States and others were unable to narrow the gap over the automotive sector in recent working-level talks. -
14-Sep-2015 The Age How many jobs? The China-Australia Free Trade Agreement will create hardly any
The free trade deal is now about jobs, except the government has got the number all wrong. -
13-Sep-2015 The Guardian Australia’s treaty-making process is broken. The China free trade deal is a case in point
By the time a free trade agreement like Chafta reaches parliament it has already been agreed to. Democracy demands more than a ‘take it or leave it’ approach
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Corporate lobby group promoting Australia’s business interests towards China -
Australia-China FTA negotiations
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