The Hon Mark Vaile
Minister for Trade
Parliament House
Canberra
Mark.Vaile.MP@aph.gov.au
Dear Minister Vaile
Re the proposed Australia-China Free Trade Agreement (FTA)
I am very concerned at media reports that negotiations for an Australia-China Free
Trade Agreement may start in March 2005 without time for public debate of the feasibility
study that is also due in March. Decisions whether to start negotiations for a free trade
agreement deserve full public and parliamentary debate.
China is already Australia’s second largest export market and third largest source
of imports, mostly manufactured goods. A free trade agreement would mean recognition of
China as a market economy and the granting of preferential zero tariff trade access to its
products. This would have huge impacts on Australian manufacturing industry, with job
loses in many regional areas of high unemployment.
The competitiveness of many of China’s manufactured exports rests on artificially
low wages, poor working conditions and lack of workers’ rights to bargain for better
conditions. The Sydney Morning Herald of October 30 2004 quoted studies by Anita
Chan, Australian National University Researcher, showing that wages in China’s free
trade zones are $96-112 per month. Real wages have been falling, despite rises in the
official minimum wage.
We should not grant preferential trade access while China fails to implement its own
labour laws and to abide by fundamental workers’ rights as defined by the
International Labour Organisation. There should be:
- Full examination in the feasibility study of the social and economic costs as well as
the claimed economic benefits of an FTA in both Australia and China;
- Publication and full public and parliamentary debate of the feasibility study before any
decision is made to recognise China as a market economy or proceed with an FTA;
- Implementation by both countries of international standards on workers’ rights and
environmental sustainability.
Yours sincerely
Name, Address
