MADELEINE KING MP
SHADOW MINISTER FOR TRADE
MEMBER FOR BRAND
 
PETER KHALIL MP
MEMBER FOR WILLS

The Morrison Government has rejected a recommendation that Australia’s free trade agreements be subject to independent economic modelling.
 
Last year, Parliament’s Joint Standing Committee on Treaties (JSCOT) recommended that the Government implement a process through which economic modelling of all proposed trade deals would be undertaken by the Productivity Commission.
 
The Labor Party has long advocated for independent modelling to assess whether the expected outcomes from FTAs are being realised.
 
During the JSCOT process, Labor’s stance was backed by the union movement and business groups such as the Australian Chamber of Commerce and Industry.
 
But the Morrison Government has now formally decided not to accept JSCOT’s recommendation – just as it rejected all previous JSCOT recommendations on this issue.
 
The Shadow Minister for Trade, Madeleine King, said the Government should have listened to JSCOT.
 
She said Australia needed greater transparency in the development and implementation of trade agreements because it was vital to ensure community consensus in favour of fair and open trade.
 
“Independent analysis of FTAs would play an important role in maintaining community support for international trade,” Ms King said.
 
“Some industries have benefited from free trade but others have not.
 
“Yet without an independent economic assessment, nobody knows what the effects are.
 
“We think it’s better to have the facts out in the open.”
 
Peter Khalil, Labor’s JSCOT Deputy Chair said: “The Labor members of JSCOT worked hard to ensure that independent economic modelling was adopted as a recommendation.
 
“It’s extremely disappointing that the Government has not accepted this recommendation given it was based on many stakeholder submissions.”
 
Labor will continue to lobby on the issue through a review of the treaty-making process that the Coalition had agreed to undertake.
 
The inquiry, undertaken by JSCOT, will examine the use of economic modelling and greater transparency and consultation in the development of trade agreements.
 
Labor also welcomes the Government repeating its commitment made to the Opposition that it will not use provisions of the Indonesia-Australia Closer Economic Partnership Agreement (IA-CEPA) to create or extend any additional labour market testing waivers for Indonesian contractual service suppliers.
 
Labor will continue to hold the Morrison Government to account.