Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2016-2017-2018
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
A FAIR GO FOR AUSTRALIANS IN TRADE BILL 2018
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator Carr)
A FAIR GO FOR AUSTRALIANS IN TRADE BILL 2018
OUTLINE
The bill will improve the way that the Australian Government negotiates trade agreements by
prohibiting the inclusion of clauses that undermine the temporary skilled migration system and the
protection of public services and allow foreign corporations to sue the Australian Government. It
will also increase independent assessment and scrutiny of trade agreements.
FINANCIAL IMPACT
The bill will have no financial impact.
NOTES ON CLAUSES
Clause 1: Short Title
1. This clause is a formal provision specifying the short title of the Bill. It provides that the
Bill, once enacted, may be cited as the A Fair Go for Australians in Trade Act 2018.
Clause 2: Commencement
2. This clause provides that the Act will commence the day after it receives Royal Assent.
Clause 3
3. This clause prohibits the waiver of labour market testing in trade agreements.
The Government's policy is that labour market testing is required before a foreign worker can be
employed unless an international obligation applies.
This has allowed the Government to use trade agreements to waive requirements for an employer to
first check if an Australian can do a job before bringing in a worker on a skilled visa.
It is only fair that if an employer wants to bring in a worker like a plumber, mechanic or electrician
from overseas into Australia - they are required to first check if there's an Australian who can do
the job.
Clause 4
4. This clause prohibits the Government from signing trade agreements that include Investor
State Dispute Settlement provisions.
These provisions provide foreign corporations with an avenue by which to sue the Commonwealth
for legitimate policy decisions taken by the Government. This is not in line with community
expectations and this clause makes clear that they should not be included in Australian trade
agreements or bilateral investment treaties.
Clause 5
5. This clause prohibits the Government from signing trade agreements that include provisions
requiring the privatisation of any public services.
Clause 6
6. This clause prohibits the Government from signing trade agreements which include
provisions that undermine the scheme for the supply of pharmaceutical benefits established under
Part VII of the National Health Act 1953.
Clause 7
7. This clause prohibits the Government from signing trade agreements which would
undermine any law of the Commonwealth, a State or Territory relating to anti-dumping.
Clause 8
8. This clause prohibits the Government from signing trade agreements which would limit the
right of the Commonwealth to regulate in the interests of public welfare or in relation to safe
products.
Clause 9
9. This clause prohibits the Government from signing trade agreements which would restrict
the Commonwealth's procurement arrangements from any form of preference for the purpose of:
a. protecting Australia's essential security interests;
b. benefiting local small and medium enterprises;
c. protecting national treasures;
d. implementing measures for the health, welfare and economic and social advancement of
Indigenous people;
e. promoting ethical standards and sustainable development though ethical procurement;
f. providing for the full, fair and reasonable participation of local enterprises in
government contracts as outlined in Commonwealth, State and Territory industry
participation policies, and successor programs and policies; or
g. maintaining the Australian industry capability programs, and its successor programs and
policies.
Clause 10
10. This clause requires the Australian Government to include in all bilateral trade agreements a
labour chapter with internationally recognised labour principles. The Australian Government should
also seek to include a labour chapter in any regional or multilateral trade agreement it signs.
Clause 11
11. This clause specifies that it is mandatory for governments to enforce practical and
theoretical testing of a foreign worker's skills in all future trade agreements.
Clause 12
12. This clause requires the Minister to commission an Independent National Interest
Assessment of any proposed trade agreement. This assessment would provide independent analysis
of the economic, strategic and social impacts of a proposed trade agreement. Social impacts would
include, but are not limited to, an agreement's impact on workers, the environment and gender. This
analysis would be tabled before an agreement is signed.
Clause 13
13. To get better outcomes from trade agreements and ensure proper consultation and scrutiny
of trade agreements, this clause provides for the establishment of an accredited trade advisers
program. The intention is that the Minister would consult with accredited advisers from unions,
civil society groups and industry in relation to draft trade agreements. The aim of this program is to
allow accredited advisers to provide real-time feedback on trade agreements as they are being
negotiated.
Clause 14
14. This clause ensures that the bill would not limit the executive power of the Commonwealth
except to the extent explicitly set out in clauses 3 to 12.
Clause 15
15. This clause would allow regulations to be made to give effect to the Act, for example, to
establish the accredited trade advisers program provided for by clause 13.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
A Fair Go for Australians in Trade Bill 2018
This bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act
2011.
Overview of the bill
The bill will improve the way that the Australian Government negotiates trade agreements by
prohibiting the inclusion of clauses that undermine the temporary skilled migration system and the
protection of public services and allow foreign corporations to sue the Australian Government. It
will also increase independent assessment and scrutiny of trade agreements.
Human rights implications
The bill engages article 7 of the International Covenant on Economic, Social and Cultural Rights
which relates to enjoyment of just and favourable conditions of work and it promotes those rights.
Conclusion
This bill is compatible with human rights because it does not raise any human rights issues.
Senator Kim Carr