The Abbott government is putting fresh pressure on Labor not to sink the China-Australia free trade deal, warning such a move would represent “economic sabotage” and run counter to advice from party elder Bob Hawke.

But the Labor leader, Bill Shorten, called on the government to “climb off their high horse” and negotiate with the opposition, saying they if they worked together they could deliver better safeguards for Australian jobs and achieve a “win-win” outcome.

The Coalition is refusing to reopen negotiations on the text of the agreement and is gaining support from some industry groups, which are set to launch an advertising campaign next week to promote the benefits of the deal in a bid to push back at union claims about the risk to Australian jobs.

The campaign by the Minerals Council of Australia, the National Farmers’ Federation and the Australian Chamber of Commerce and Industry will call for parliament to pass the enabling legislation without delay so businesses can quickly gain the benefit of tariff cuts. It will include television, radio, print and online ads.



The trade minister, Andrew Robb, said earlier this week that he was open to having “constructive” talks with Labor’s trade spokeswoman, Penny Wong – but the government appears to have hardened its rhetoric and insists the treaty text will not be amended.



The government was emboldened by the intervention from Hawke, who told the Australian newspaper he was “all in favour” of the free trade agreement with China. “The party must not go backwards on this issue — the party and the trade union movement,” Hawke said. “Talk of opposing it is just absolutely against Australia’s best interests.”

Tony Abbott welcomes Bob Hawke’s support for China free trade deal. Link to video

Tony Abbott signalled he was determined to stare down demands for added “safeguards” that the opposition said were needed to protect Australian jobs.

The prime minister said the party should “listen to decent Labor people like Bob Hawke and Bob Carr” who had expressed support for the agreement, rather than following the advice of unions which were “trying to sabotage this agreement”.

Abbott said Labor would be “turning their back on one of the greatest opportunities our country has ever been offered” if it blocked the implementation bills, which are yet to be presented to parliament. Two parliamentary committees are yet to complete their reports on the deal.

“We cannot change this agreement,” Abbott told the ABC’s AM program. “We cannot reopen the negotiations. We have a very, very good deal with the Chinese, a really good deal with the Chinese.

“It must be allowed to stand. If the Labor party gets in the way of this because they are in thrall to the CFMEU in particular they will be sabotaging Australia’s economic future.”

Wong, has not said whether the party was prepared to vote against the enabling legislation if its requests for additional safeguards on jobs were rejected.

But she has urged the government to follow the lead of the former prime minister John Howard, who allowed enabling legislation for the US free trade agreement to pass with Labor-proposed amendments to clarify protections for the pharmaceutical benefits scheme.

Shorten accused the government of arrogance. He said there were “slack loopholes in the free trade agreement” and the Coalition should negotiate with Labor “in the best interests of Australian jobs”.

“We do not believe that the safeguards which Mr Abbott and his Liberals are saying exist actually have the Ts crossed and the Is dotted,” Shorten said.

“I’m sure if there’s goodwill from the government, we’ll work this issue through, but it takes two to negotiate and if Mr Abbott and Mr Robb say the parliament just has to agree with everything they say well, this country, the parliament wouldn’t be doing its job.”

The Labor frontbencher Anthony Albanese said he respected the views of Hawke, who was “very close to Australia-China relations”.

“That’s why we’re supportive of the agreement. We want to make sure though, that when you look at the detail, Australian jobs are protected,” Albanese told Nine’s Today program.

Labor’s leadership faces significant pressure from its industrial base – with several unions running advertising campaigns and organising protests against the foreign-worker provisions – and from caucus members who are uneasy about the contents of the deal.



Kelvin Thomson, a Victorian Labor MP who serves as the deputy chair of the joint standing committee on treaties, said the party should not support the deal in its current form.

The government has dismissed union criticism as “racist lies”, but Coalition MPs have reported that the campaigning is having an impact on voters in their electorates. A union-organised protest took place in Melbourne on Friday.

In one CFMEU advertisement, a family discusses the free trade agreement. “Tony Abbott stuffed it up,” the father says. “He’s letting Chinese companies bring in their own workers … they don’t even have to advertise the jobs … sorry but you won’t even get a look-in, son.”

The government is working on its own campaign, having earmarked nearly $25m in the May budget to promote the free trade agreements with China, Japan and South Korea.



Robb, who visited Shanghai, Beijing and Hong Kong this week, said he had been reassuring Chinese government officials and business people “that the Australian government is 150% committed to seeing this thing through later this year for entry into force before the end of the year”.



Robb said a collapse of the deal would have a “really material negative impact on our relationship”.

“Well look, I can’t believe that at the end of the day, that the opposition would oppose a deal with China which is preferential access to the biggest market in the world, a deal which is going to provide enormous diversification within our economy, a deal which will drive significant important investment and a deal that will drive growth and jobs,” he told ABC’s 7.30 program.

“I just can’t believe that they would engage in the economic sabotage that would be involved in blocking this deal. I think there are enough people within the opposition who will prevail, and that’s my hope.”

Labor and the unions have suggested the agreement does not adequately protect labour market testing – that is, a requirement that companies look for local workers before seeking workers from overseas.

They have pointed to the process for Chinese-backed companies to bring overseas workers to Australia for projects worth at least $150m, noting the memorandum of understanding says “there will be no requirement for labour market testing” to enter into an investment facilitation arrangement (IFA).

The government contends the criticism is disingenuous because the same document refers to labour market testing by the direct employers after the overarching IFA has been approved.

Labor and the unions have also pointed to chapter 10 of the free trade agreement relating to temporary entry for business visitors, managers, specialists, and people who install and service machinery and equipment. The document says “neither party shall … require labour market testing, economic needs testing or other procedures of similar effect as a condition for temporary entry”.

Robb also committed to “streamline” skills assessment processes for Chinese applicants for 457 visas. In a letter the minister said Australia would “remove the requirement for mandatory skills assessment” for electricians, joiners, carpenters and several other occupations. Robb defended the move, saying people would still have to show they were “verified with organisations that our own trade skills organisations acknowledge”.