Matt Williams (Hindmarsh, Liberal Party) Share this | Hansard source

I note with interest the member for Wills started off his discussion by talking about jobs. He would be interested to know—and I am sure he does acknowledge—that the Korea-Australia Free Trade Agreement is very positive for the jobs of young Australians and Australians in general. In terms of export companies, around 1,700 jobs are expected to be created by the benefits of this agreement—and 15,000 in total. It will be pleasing to hear the member for Wills acknowledge that at some time.

To return to the context, the coalition is always for jobs and a better economy, and free trade agreements are pivotal to that. One in five jobs in Australia is linked to trade. Completing two agreements with our major trading partners in Asia is only going to provide more opportunity for our local exporters and also our service providers who are looking to do more business in Asia, a fast-growing area. In terms of Asia being a fast-growing area, we all have heard for many years about the Asian century, and it is timely that Australia start to take maximum advantage of the growth in Asia and the Asian century.

I was lucky enough to participate in a boardroom discussion last week that was hosted by the ANZ Bank. I thank Jane Yule, from ANZ in Adelaide, for helping facilitate that discussion, as well as the University of Adelaide who put on a most fascinating presentation with ANZ. There were some really useful insights as to what is happening in Asia. In particular, their focus was on China. We all know the exciting growth coming out of China. Australia is benefiting from that now and will hopefully benefit more in the future, whether it be goods or services. In terms of services, the University of Adelaide—like other universities around Australia and the University of South Australia and Flinders University in my home state—has captured a good percentage of Asian students looking to study abroad. The figure is around 7,000 and, naturally, a number of them come from Korea.

South Korea, as we know, is an important part of Asia and the future growth of Asia. That is why this trade agreement is such a great result. As I mentioned earlier, the Korean free trade agreement, once in force, will create at least 15,000 jobs between 2015 and 2023 and add $650 million to the economy annually. Our agricultural producers will benefit strongly from this agreement with tariffs being eliminated for Australian raw sugar, wheat, wine and horticulture. Total services exported, comprising mostly education and recreational travel related services, are valued at $1.8 billion. There are numerous benefits from this free trade agreement across so many important growth sectors of our economy. We know that we can compete internationally, that we have first-class services and, importantly, that there is a demand for those services.

Korea is currently Australia's third-largest export market and our fourth-largest trading partner. It is significant to Australia and this is why this agreement is so beneficial for us. As I said, this agreement will be good for not just exporters but also importers, workers, consumers and investors in opening up markets and freeing trade and investment between Australia and Korea. There will be tangible benefits across the whole of the Australian economy and society.

The agreement secures Australia's competitive position in this major market where our competitors such as the US, the European Union and the ASEAN countries are already enjoying preferential access. It is a great result, along with the Japan free trade agreement and other agreements entered into over many years in Asia, including with Singapore. We are slowly putting together this puzzle. Andrew Robb is doing a great job of negotiating a potential free trade agreement with China in the near future.

When we look at free trade agreements it is always important to consider the implications of not acting and not negotiating such agreements. If we did not proceed with the FTA, our exports to Korea would be five per cent lower by the time the US and the EU's agreements are fully implemented in 2030. Korean imports of Australian agricultural goods would decline by 29 per cent by 2030 and our mining and manufacturing exports would decline by one and seven per cent respectively. My good friend the member for O'Connor has just joined us in the chamber. Agriculture is an important sector for his seat, for his state and throughout Australia.

After 15 years of the FTA's operation, by 2030, our exports to Korea will be 25 per cent higher than they otherwise would have been. This is a significant contribution that we might not have taken advantage of if we were not entering into this FTA. By 2030, exports of agricultural goods to Korea will be 73 per cent higher than they otherwise would have been, contributing to an increase of five per cent in Australia's total agricultural exports. We all know that we have great expertise and a competitive advantage in agriculture and mining. Mining exports to Korea will be 17 per cent higher and manufacturing exports will be 53 per cent higher—a great result for our manufacturers who are still manufacturing some world-class products in Australia. Overall, in terms of exporters, the FTA would create around 1,700 new jobs on implementation.

The Korea-Australia Free Trade Agreement will also promote increased investment. I just want to say a few words about this too, because this is something that should not be overlooked. Korea's total investment in Australia was worth $12 billion at the end of 2012 and this will only increase as a result of this agreement. Under the KAFTA, Australia has retained the ability to screen investments in sensitive sectors, including media, telecommunications and defence related industries at lower levels, and this is important in terms of safeguarding some of our expertise and what we currently do in some areas. It also reserves policy space to screen proposals for foreign investment in agriculture—land at $15 million and agribusiness at $53 million. These are important safeguards that the Australian public would be interested in knowing and understanding.

I just want to say a bit more about agriculture, given its importance. It will make a significant difference at the farm gate. From mango exporters, to macadamia nut growers, to potato farmers, Australia will enjoy improved acres to the Korean market. With potato farmers, there are some big ones in my state of South Australia—Mondello Farmsis one that comes to mind. They would be very happy if they look at export opportunities going forward.

Tariffs of up to 300 per cent will be eliminated on key Australian agricultural exports including beef, wheat, sugar, dairy, wine, horticulture and seafood. Again, some of these areas of agriculture, like seafood, are in great demand in Asia. We have some of the best seafood in the world, so this will be of vital importance to improving our exports in some of these sectors.

Onto a favourite subject of mine—wine—coming from South Australia: needless to say, a great wine state. We are currently subject to tariffs of 15 per cent, but wine from the US, EU and Chile enter duty free. Some of our major competitors around the world have duty-free wine going into Korea. That will now change with the FTA, where they will be 30 per cent lower than in 2007—a significant change for those in the wine sector. This is not only the wineries but also the suppliers that are so important in so many of these sectors, like the label manufacturers. Collotype Labels, just on the border of my electorate, have always been a leader in wine labelling and they will be happy if some of their customers are selling more wine into the Korean market. Printers—and there are many fine printers in my electorate of Hindmarsh—again, those that are involved in printing of a whole lot of things connected to the sector. Bottlers too: there is a bottling plant which manufactures wine bottles on the edge of my electorate. Again, they will be happy if their customers are selling more into Korea as part of this agreement.

I wanted to cover off briefly on services, because I have worked in accounting firms and law firms in the past and I know they will be beneficiaries of this agreement. For example, the agreement will allow Australian law firms access for the first time to Korea's legal consulting services market by permitting Australian firms to establish representative offices in Korea and Australian lawyers to advise on Australian and public international law. In terms of accounting firms, likewise, they will be able to establish offices and provide consulting services.

This is a new opportunity for some of Australia's best professional services firms. A former colleague of mine is actually in Canberra today on a matter, Tim O'Callaghan, who is the new head of the Adelaide office for Piper Alderman—and I congratulate Tim on his appointment. I know he is always looking at new opportunities so I am sure something like this might be of interest to Tim and Piper Alderman, among other firms.

In other areas: the audiovisual co-production agreement will deliver new commercial opportunities for our creative industries, with an audiovisual co-production agreement facilitating film and television collaboration. In Adelaide there is a firm in particular, Rising Sun Pictures, that does some great work in the audiovisual space. They might be interested in where they could go with this agreement, as would Kojo, another company in a similar space. Finally I want to touch on energy and resources. Under KAFTA, Korea will eliminate tariffs for all resources and products over 10 years. Some of the resource industries that will benefit from KAFTA include petroleum, natural gas—so Santos and Beach Energy, two of the great gas producing companies in Australia, will be great beneficiaries—and gold.

I congratulate Andrew Robb and his team on the fantastic work they have done with this free trade agreement with South Korea, as well as the other work they have done with Japan and their ongoing work with China. As we know, the growth from the middle class creates great opportunities, great chances, for Australian exporters and service companies to expand internationally. We are a small market so we have to take advantage of these international opportunities where there is this growth. I am sure my South Australian federal colleague over there, the member for Makin, will be most pleased that our state—whether it be in relation to wine, resources or agriculture—can benefit from this great work by the government in delivering free trade agreements. We cannot forget that there are some benefits as well for Australian business, whether it be IP or government procurement, in the whole equation. Australian suppliers will be allowed access to the Korean government procurement market, and with IP we are making sure that Australian innovators and creative industries enjoy higher levels of protection—so important for them when they enter new markets. This is a great result for Australia, a great result for Australian exporters and companies, and we look forward to the results being achieved.

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