Thankfully, common sense has prevailed and we have consensus between the Government and the Opposition in Canberra over the implementation of China Australia Free Trade Agreement (ChAFTA).

Notably, there is a bipartisan approach to safeguards for workers that will not impact on any understandings or agreements we have reached with China.

The details are still to be fully revealed but, according to King and Wood Mallesons’ partner Andrew Gray, the key benefits now for employers include:

• simplified entry requirements to facilitate the movement of labour between Australia and China;
• “investment facilitation arrangements” for Chinese businesses undertaking large infrastructure projects in Australia. These provide concessions to the normal 457 visa program and, according to Gray, “should make it easier for employers involved in approved infrastructure projects to address genuine labour or skills shortages through the use of foreign workers”.

One of the understandings reached between the Government and the Opposition is that an employer wanting to sponsor a foreign worker under a labour agreement will have to demonstrate that they have made “recent and genuine efforts to recruit local Australian workers first”. Few would argue with that.

Gray concludes that ChAFTA will open up opportunities worth billions of dollars with Australia’s biggest trading partner and the deal between the Government and the Opposition should clarify the position on sponsoring foreign workers to work in Australia for Chinese enterprises here and vice versa.

The Tasmanian Farmers and Graziers Association has always backed ChAFTA. We believe it will deliver strong economic growth, including in our own sector. It will see the eventual elimination of tariffs on Australian lamb, beef, horticulture and dairy products to China. This will deliver increased options and improved returns for Australian farmers, create jobs and strengthen the economy.

Delaying the agreement could have cost the agricultural export trade up to $300 million in 2016 alone. We believe there would have been significant flow-on effects to rural and regional communities across Australia.

Our estimates are that if we had failed to ratify the agreement this year, the economic costs would have included:

• $100 million to the Australian red meat industry;
• up to $60 million for the dairy industry;
• up to $50 million for the wine industry; and
• more than $43 million in annual tariff reductions for the grains industry.

The TFGA believes Tasmania is well placed to benefit from the free trade expansion – through increased production and increased Chinese financial investment here.

Our main production season is counter-seasonal with the northern hemisphere and therefore adds scope for us to expand product availability in the Chinese markets. We will be able to assist Chinese farmers in improving their own productivity. That is an aspect that is often overlooked.

THIS ARTICLE FIRST APPEARED IN THE TAS COUNTRY ON 6TH NOVEMBER 2015.
TFGA president Wayne Johnston