Opposition trade spokeswoman Penny Wong has urged the Labor movement to reject the “false panacea” of protectionism and support free trade agreements signed off by the Abbott government.

Wong outline her position in a speech to the Australian Fabians forum in Melbourne on Saturday ahead of the ALP’s national conference in July, where trade is expected to be debated.



The speech is intended to “remind” Labor’s left of the party’s longstanding commitment to trade through the Chifley, Whitlam, Hawke, Keating, Rudd and Gillard governments.

Her comments provide a preview of the parliamentary sitting week ahead which places trade squarely on the agenda. Abbott loyalist and government whip Andrew Nikolic has listed a private member’s bill to support free trade agreements on Monday morning and trade minister Andrew Robb will address the National Press Club on Wednesday to speak to the advantages of free trade to the economy.

It follows Australian trade agreements with Korea, China and Japan, started by previous governments but recently completed by the trade minister, Andrew Robb.

But there has been growing movement against free trade agreements within sections of the Labor party and civil society, not only in Australia but worldwide.

There has been growing global opposition to the mega-trade deal, the Trans-Pacific Partnership Agreement currently being considered by the US Congress.

Opposition to the TPPA, pushed by Barack Obama, has come from within his own Democratic party as well as sections of the Republican party. At the heart of the criticism is the fear of allowing large corporations more influence to challenge a nation’s policies on the grounds of interference with free trade.

However President Obama’s desire for a fast track authority to complete the decade-long deal with Australia and 10 other nations is looking less likely to succeed after Congress voted against a related trade bill overnight.

Declaring her opposition to the TPPA, Labor MP Melissa Parke has joined a cross parliamentary working group, including Greens senator Peter Whish-Wilson and independent senator Nick Xenophon, to consider the effects of the agreement across Australian society, including employment, the environment and health services.

Critics, including the Australian Medical Association, have raised concerns such wide-ranging trade agreements could raise the prices of medicine and allow large corporations to influence government policy.

While Wong did not address the TPPA in her speech, she says protectionism leads to uncompetitive industries, an inefficient economy and unsustainable jobs.

“Some in our movement hanker for the days of protectionism, imagining that tariffs on imports support local jobs,” Wong says.

“Protectionism is a false panacea ... Sitting on the sidelines while other countries negotiate trade agreements is also a false panacea.

“Refusing to enter trade agreements will allow our competitors to gain market share at Australia’s expense.”

Wong uses the example of the Korean free trade agreement (Kafta), which will cut tariffs on beef, now projected to increase Australian beef exports by 57% in real terms by 2029.

“Labor believes the Abbott government should have secured a better agreement with Korea,” says Wong.

“However we recognised that Kafta will benefit Australia’s agricultural industry and the hundreds of thousands of jobs the industry supports – including in the food processing sector of manufacturing.

“That is why Labor concluded that Kafta was in Australia’s national interest. We need to approach the China-Australia free trade agreement in the same way – assessing whether it will support jobs and whether it is in Australia’s national interest.”

Wong outlines Australia’s future in the region, the rising middle class in Asia and the changing nature of the global economy which produces goods “made in the world” from different components from different countries.

She also acknowledges that globalisation could “unleash rapid, unpredictable and unsettling change” and Labor had to ensure citizens were not left behind.