The Construction, Forestry, Mining and Energy Union staged a rally in Brisbane yesterday, reportedly attracting thousands of people unhappy with the FTA.
The union also aired a TV advert on Channel 10 last night called “Tony Abbott has stuffed the China Free Trade Agreement”.
The advert showed an Australian family appalled that they would not get job opportunities from Chinese projects in Australia, with the FTA allowing companies to bring their own workers and fill positions without advertising.
“Tony Abbott made a choice. He just didn’t choose you,” the ad said.
Meanwhile, Opposition Leader Bill Shorten has vowed to keep fighting for amendments to the FTA, saying trade agreements should enhance, not undermine, local job opportunities.
But industry fears any delays to enabling the FTA will cost big dollars, with Minerals Council of Australia executive director – coal Greg Evans forecasting up to $110 million lost in export tariffs in the coal sector only if the deal is not put into effect in early 2016.
He said the China FTA had been expected to formally enter into force in November this year, following the completion of parliamentary processes by both countries.
“The timetable is now at risk in the wake of a scaremongering campaign by the CFMEU, raising the real prospect of delays to the parliamentary approval of enabling legislation,” he said.
“If the China Australian trade deal not formally start before the end of calendar 2015, Australia will miss the chance for two bites at tariff reductions on a range of products, including on thermal coal exports.”
Under the terms of the deal, Chinese tariffs on coal will fall both on entry-into-force and again on January 1 next year.
The failure to secure the agreement before the end of 2015 will mean that the tariff on Australian thermal coal exports will remain at 6%, which Evans said would add at least $1.2 million per week to the thermal coal trade, or $60 million over the course of 2016.
“The biggest winner will be Indonesian thermal coal exporters, whose coal enters China duty-free, courtesy of a bilateral trade deal concluded several years ago,” he added.
“The biggest loser will be coal exporters and their workforces who will face a completely unnecessary cost disadvantage in one of the world's most important markets.”
The same will go for other commodities including alumina, zinc, nickel, copper and uranium.
In coking coal, Evans said the 3% tariff currently adds $3.4 million to the cost of weekly trade.
“A start to the trade deal in March 2016, instead of November 2015, will add about $50 million to the costs of the trade,” he said.
“The bottom line is simple.
“It is imperative that the China Australia Free Trade Agreement enter into force before the end of calendar year 2015.”
The China Australia Free Trade Agreement was signed in Canberra in June and is expected to make more than 85% of Australian goods exports tariff free when it comes into effect, rising to 95% after full implementation.
Parliamentary consideration is underway.
Another CFMEU rally against the deal is scheduled for Friday in Sydney.
