DCN May Edition 2019

TRADE LAW
What happens next for our
trade agenda after the election?
Andrew Hudson examines the potential fate of pending FTAs and other trade-related
issues that may, or may not, be affected by the upcoming federal election
I WRITE THIS ARTICLE ON 12 APRIL,
yet to secure the same benefits. Indeed, the
shortly after the announcement of the
engagement of SMEs seems to have flat-
federal budget and the announcement of
lined with little use of FTAs.
the federal election date. As expected, this
Both of the major parties share the
period has included the usual claim and
same interest in supporting SMEs getting
counter-claim between the major political
into exports and securing benefits from
parties and a certain amount of cynicism
the trade agenda and both have worked
that even after the election, the political
together to advance that agenda - and have
landscape may not change significantly.
advanced ideas to assist in that process.
Given recent political history there is
For example in the recent federal budget,
also a level of interest (and concern) as to
the federal government announced a
what our preferential voting system will
significant increase in funding for the
deliver for the smaller political parties or
Export Market Development Grant scheme
independents. This is especially the case
as well as more funding for the Trade Start
with our Senate where the inability of a major
program and continued funding for work
party to secure a majority means the game of
against non-tariff barriers. The recent
persuasion and compromise will continue.
parliamentary inquiries have endorsed
That usually delivers unlikely alliances.
the ongoing work of Austrade and other
agencies to assist industry to understand
Andrew Hudson, partner, Rigby Cooke Lawyers
TRADE IS GOOD
and use FTAs as well as enlisting the
Unlike many countries (Brexit anyone?),
assistance of groups such as licensed
and the Department of Industry to work
both major political parties share many
customs brokers and freight forwarders to
collaboratively to address NTBs.
of the same views regarding trade. There
similarly improve understanding and use
certainly seems to be bipartisan support to
of FTAs.
CURRENT AND FUTURE FTAS
advance the trade agenda to ensure growth
The main point of difference now seems to
in exports and GDP and deliver benefits to
LABOR ANNOUNCEMENTS
reside with what should actually be in FTAs.
a wider class of members of society. These
In a recent speech Labor trade spokesman
For some time there has been resistance to
views include support for the World Trade
Jason Clare made several announcements
certain aspects of FTAs, including investor
Organisation and its dispute settlement
of initiatives aimed at improving SME
- state dispute settlement provisions which
arrangements as the best means to address
engagement including creating a category
potentially enable the private sector to
global trade tensions, albeit with some
of “cleared advisors” from business,
pursue disputes directly with sovereign
changes to those arrangements to address a
trade unions and other bodies (hopefully
governments. Other concerns include
number of legitimate concerns raised about
industry associations). In a process
the suspension of labour market testing
the existing regime.
similar to that existing in the US, those
for skilled migrants and compromises
The bipartisan approach extends to
cleared advisors would have “real time”
to existing regimes for biosecurity, trade
support of free trade agreements being
access to negotiations for FTAs including
remedies, environment protection and
negotiated such as RCEP, the Pacific Alliance,
the versions of the text of the FTAs and
direct foreign investment in crucial
the EU and the UK. The federal opposition
provide informed feedback to negotiators.
industry sectors. Those concerns are seen
seems to have expanded that agenda to
Presumably this will not go as far as the full
to have contributed to a sense of distrust
include one deal across all APEC countries.
US experience but it may create an additional
on FTAs which had contributed to a lack
level of transparency to encourage the
of use as well as active opposition from
IMPROVING THE POSITION OF SMES
interest in the FTAs as they are negotiated
some groups. For the federal opposition
Recent research and reports by
in the hope of “ownership” of the FTAs.
these concerns led to the change of
Parliamentary inquiries have confirmed
only a relatively small section of society
has engaged with the trade agenda and
secured benefits while many SMEs have
Mr Clare also addressed the issue of NTBs
through the proposal to establish a joint
team made up of officers from DFAT,
Austrade, the Department of Agriculture
policy position on FTAs during 2018 so
that it would not endorse FTAs without
an independent economic assessment
of benefits of those FTAs. Further, the
Ian Ackerman
56 May 2019
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