Senate passes Chinese FTA legislation

Australian exporters to China should start seeing tariffs fall by the end of the year after parliament passed a bill to enable a free trade agreement between the two countries.

The Senate on Monday passed legislation to enact the agreement, after Labor and the government struck a deal to boost safeguards for Australian jobs last month.

The government last year finalised 10 years of negotiations on the deal, which it maintains will boost many Australian exports and kick off a new era of opportunity.

Cabinet Secretary Arthur Sinodinos said new export opportunities would be found across value-added manufacturing, aged care, tourism and financial services.

"It's a comprehensive agreement between two highly complimentary economies," he told parliament on Monday.

Labor agrees Australians should be capitalising on China's economic growth.

"Growing, deepening and diversifying the trade relationship with China has the capacity to deliver jobs and prosperity to future generations of Australians," opposition Senate leader Penny Wong said.

In the opposition deal, the government agreed to labour market testing for jobs on major projects and the setting of the "market salary rate" for 457 visa workers at the applicable enterprise bargaining agreement rate.

Foreign workers would also have to obtain an occupational licence within 90 days to receive a 457 visa.

Two Senate inquiry reports have endorsed the deal.

But the Australian Greens opposed the agreement, saying it was negotiated in secret with no expert advice from business or academics.

Greens senator Peter Whish-Wilson said while Australia should be working to strengthen trade agreements, the deal was not in the nation's interest.

"It's lopsided," he told the parliament.

"The economic benefits are based on faulty modelling."

In an embarrassing admission, the government conceded its stated job figures of 178,000 from free trade agreements with Korea, Japan and China by 2035 were grossly miscalculated.

The real figure is closer to 5000.

Senator Whish-Wilson also lambasted the government for attacking anyone who raised concerns as orchestrating a "xenophobic campaign" against the agreement.

Independent senator Jacqui Lambie said Australia should not be signing a deal with China because it was a security threat to Australia and the United States.

"China is a proven bully, thief, liar and human rights abuser," she said.

The bill was fast-tracked through parliament to avoid forfeiting tariff cuts that come into place by the end of the year.