Foreword

An open approach to international trade is in Australia’s best interests, with trade and investment being fundamental to the success of many Australian industries. Open trade creates well paid, secure jobs, improves our economic resilience, and contributes to economic growth and increased living standards for Australians.

Australia is a leading participant in international trade, being party to key multilateral and plurilateral agreements as well as a strong supporter of the global rules-based trading system. Australia also has an extensive architecture of bilateral and regional trade and agreements with over 30 partner economies, as well as 15 bilateral investment agreements.

Australia’s agreements work to reduce barriers to international trade and investment for the benefit of both industry and consumers by providing access to key export markets, as well as access to more goods and services, at lower cost for both producers and consumers.

Throughout the inquiry the Committee has sought to examine Australia’s approach to the negotiation of trade and investment agreements to better understand the effect of agreements on stakeholders and how the benefits of trade are shared. In this regard, the Committee has made eight recommendations that it believes will strengthen Australia’s approach to negotiating trade and investment agreements, contributing to better outcomes and ensuring that agreements are of greatest benefit to the Australian community.

The Committee was particularly drawn to evidence outlining how we should evaluate whether trade and investment agreements are in the national interest. That is, if they provide an overall net benefit to Australia rather than to a narrow set of interests or particular sectors. While trade brings substantial benefits to many Australians, it has the potential to have widespread impacts across the economy, society, and the environment, with some experiencing costs and being disadvantaged. Further, an important element of the national interest is to ensure that trade commitments do not unduly weaken domestic policy objectives or the ability of the Australian Government to make decisions in the interests of its citizens.

The impacts of trade agreements must be effectively identified, understood, and accounted for or remedied if we are to be certain that an agreement is providing an overall net benefit. To this end, comprehensive, in-depth, and independent modelling and analysis as well as wider assessment of economic, social, and environmental impacts are essential components in the process for determining whether trade agreements are in the national interest. Such impact assessments should consider the implications of Australia’s trade commitments in areas such as health, gender, labour, and human rights as well as for regional communities and First Nations people.

To facilitate enduring benefits of trade for Australia it is also imperative that the national interest is not a one-off assessment, rather it must be re-examined using real world experience as part of the practice for regular post-implementation review of agreements.

As well as ensuring genuine net benefit, robust processes for determining the national interest are vital to assuring that public confidence is maintained in Australia’s trade objectives and in Australia’s position at the centre of international trade. This remains more important than ever in the face of significant challenges arising in the global trade environment over recent years.

To provide consistency and certainty, there may be considerable merit in outlining the approach to determining the national interest in a legislative framework, alongside elements of the process for stakeholder consultation and requirement for regular reviews of agreements.

The Committee’s final report builds on its interim report published on 6 February 2024, that made five recommendations focussed on improving transparency, accountability, and oversight in the process for negotiating Australia’s trade and investment agreements.

On behalf of my Committee colleagues, I would like to thank all those who took part in the inquiry process by providing written submissions and giving evidence at public hearings.

I would also like to thank my Committee colleagues and the Secretariat staff for their work on this inquiry.

Mr Steve Georganas MP

Chair