It seems that the Abbott Government is willing to sign so-called “free trade agreements” (FTAs) at any cost, with reports emerging that it will soon announce that a sub-standard deal has been reached with Japan that provides only minimal access to Japanese agricultural markets:
TOKYO — The leaders of Japan and Australia will announce Monday that they have reached a basic agreement on a trade pact after seven years of negotiations, sources familiar with the talks said.
The two countries may sign their economic partnership agreement as early as summer…
Japan is ready to lower its tariff on Australian beef from 38.5% to somewhere in the 20s.
Japanese Prime Minister Shinzo Abe and his Australian counterpart, Tony Abbott, will settle the remaining differences over beef at their summit here Monday, after which they will hold a joint news conference.
Japan is looking to leave a higher tariff in the upper 20s on chilled Australian beef, which competes more directly against domestic cuts, than on the frozen kind. Tokyo also wants to be able to restrict imports of chilled beef should they rise too quickly.
It is important to note that rice has already been excluded from any deal, whereas dairy also looks like it could be excluded along with sugar.
Meanwhile, Fairfax’s Peter Martin has reported that Australia has agreed to include an Investor-State Dispute Settlement (ISDS) clause into the Japan FTA, which would give authority to Japanese corporations to challenge laws made by the Federal Government in the national interest in international courts of arbitration, and potentially sue Australian taxpayers in the process:
“Australia appears desperate to reach a deal with Japan at any price,” said Patricia Ranald, convenor of the Australian Fair Trade and Investment Network.
“But it shouldn’t agree to allow Japanese investors to sue our government over domestic laws.”
“The disputes are heard by international investment tribunals which lack the normal protections of domestic legal systems. The proceedings are usually secret and the judiciary is not independent because judges can also be advocates. The system also works without precedents or appeals meaning decisions can be inconsistent.”
So the Abbott Government is willing to allow Japanese firms to potentially sue Australian taxpayers over public policy, in turn eroding our sovereignty, all for a tiny bit of improved market access for beef exporters. Crazy stuff.
And let’s also not forget that the Australian Chamber of Commerce and Industry has questioned the merits of the deal, which it claims could offer next to no commercial value unless drafted in a more business-friendly way.
