ACTU says agreement would destroy jobs, increase economic inequality and drive up health costs

This article is more than 3 years old

This article is more than 3 years old

Australia’s union movement has set itself on a collision course with the federal Labor party, calling for a rejection of the Trans-Pacific Partnership agreement which Labor supports in principle.

The Australian Council of Trade Unions appeared before the joint standing committee on treaties on Monday, which is reviewing the TPP.

It called on the Turnbull government to reject the TPP, claiming independent economic analyses showed the trade deal could destroy 39,000 direct jobs in Australia by 2025.

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The TPP is the biggest global trade deal in 20 years, involving 12 countries in the Pacific region that collectively represent more than 40% of world gross domestic product.

It involves Australia, the US, New Zealand and Japan, among other countries, and will ensure the US’s influence in the region in the face of a growing China – if ratified.

Belinda Tkalcevic, the ACTU’s director of policy, told members of the committee the World Bank had found the economic benefits of the TPP would be “negligible”.

She said recent research from the Organisation for Economic Cooperation and Development also showed the TPP would increase economic inequality.

She said the ACTU did not support the deal, just like it did not support the China-Australia free-trade deal.

“The TPP puts globalisation before Australian workers, threatens the fundamentals of our democracy and drives up health costs,” Tkalcevic said. “By destroying thousands of Australian jobs and driving down wages we believe the TPP will lead to higher levels of inequality.

“The TPP is a toxic combination of more power to multinationals ahead of democracy and globalisation ahead of Australian workers.”



The ACTU is the peak body for Australian unions, made up of 46 affiliated unions and representing more than 1.6m workers.

However, Labor has said it does not support the inclusion of the investor state dispute settlement provision in the TPP, marking a sticking point with the government.

Jason Clare, the shadow minister for trade, made this distinction clear on Monday.



“Labor recognises the potential benefits for Australia from the TPP, including increased market access for our goods and services,” he told Guardian Australia.

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“The TPP could be a stepping stone to closer economic engagement across the Asia-Pacific – a goal Labor has pursued from establishing Apec to releasing the Australia in the Asian Century white paper.

“[But] Labor has insisted that no element of the TPP should affect the cost and availability of medicines for Australians.

“Labor [also] does not support the inclusion of investor-state dispute settlement provisions in any trade agreement, including the TPP.”

In June this year, Labor said if it won the election it would try to remove investor-state dispute settlement clauses from every trade agreement, and every bilateral investment treaty, that Australia has signed.

It meant Labor would have reviewed three major trade agreements concluded by the Abbott-Turnbull governments – with China, South Korea and the Trans-Pacific Partnership – that have ISDS provisions.