Labor to support China FTA

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By Leith van Onselen

As expected, Labor has declared that it will support the China-Australia Free Trade Agreement (ChAFTA) after the Government agreed to make changes in order to provide protections for Australian workers. From The New Daily:

“Labor has stood up and expressed our concerns that there was insufficient legal safeguards and protections for Australian jobs,” Mr Shorten said.

“Labor now has achieved what we believe to be satisfactory legal protections, which weren’t previously proposed.

“Labor can now support the speedy passage of the China-Australia Free Trade Agreement.”

Shadow Trade Minster Penny Wong said a labour market testing requirement was crucial to the deal being struck.

“We wanted to protect Australian wages and conditions and we wanted to uphold workplace skills and standards,” Ms Wong said.

“And the package that we have agreed, with the government, delivers legal safeguards in these free areas.”

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According to The Australian, Migration Act regulations will now be amended to require labour market testing in all work agreements. ABC Radio has also reported that the base rate of pay for workers being brought in on 457 visas will also rise, presumably from the current fixed $53,500 annualised minimum salary to $57,000 (indexed), as first demanded by Labor.

Labor’s support was always expected after some argy bargy. However, to its credit, it has at least forced some positive amendments, even if they do not go nearly far enough (see here and here).

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.