Australia's Trade Minister Andrew Robb
Australia's Trade Minister Andrew Robb attends the meetings for the Trans-Pacific Partnership (TPP) in Lahaina, Maui, Hawaii July 28, 2015. Pacific Rim officials meet in Hawaii this week for talks that could make or break an ambitious trade deal which aims to boost growth and set common standards across a dozen economies ranging from the United States to Brunei. Reuters/Marco Garcia

In order to cut the political impasse that is holding back the Australia-China Free Trade Agreement, a compromise formula has been floated by former trade minister Craig Emerson. Claiming that the formula will serve as a way out of the respective positions of Labor party and the ruling Coalition, Emerson said all it required was the political will to make a small amendment to the relevant clause in the Migration act.

Emerson circulated the note to both sides and called for a change in the regulations under the Migration Act so that the FTA can be salvaged without any free import of Chinese workers. He expressed the confidence that the amendment would satisfy both the sides.

Amend migration act

According to Emerson, the "simple solution" is to amend regulation 2.72AA to the Migration Act and make labour market testing mandatory for all the lower-skill visa categories.

"Since the government claims labour market testing is already mandatory, this proposed amendment would simply give effect to stated government policy," his note said.

His formula mainly seeks a change to cover all the lower-skilled 457 visa categories associated with work agreements, including those coming under the China-Australia Free Trade Agreement.

Government is unwilling

However, Trade Minister Andrew Robb appeared to be cold towards the idea and also about making a compromise. Robb said he is not for any changes that would contravene the commitments already made.

“To seek to impose new requirements through amendments to the Migration Act would be at odds with these commitments," the minister said.

Under the Department of Immigration’s guidelines, labour market testing is mandatory. In the case of the China FTA, it seeks stringent safeguards both in labour market analysis and labour market testing. It means jobs need to be advertised locally before visas for skilled foreign workers are granted. Similarly, the guidelines also insist that jobs must be offered to Australian workers first.

Chinese envoy’s advice

Meanwhile, China articulated its concern over the political impasse that is blocking Australia’s ratification of a free-trade agreement between the two countries. China’s ambassador to Australia, Ma Zhaoxu warned that the deal on offer “should not be allowed to slip through our fingers."

He was addressing the Australia China Business Council and China Chamber of Commerce in Australia in Melbourne. The audience had both business and political leaders. The envoy made it clear that the FTA represents a “hard-won and historic opportunity" and a high-water mark in political trust between the two countries, the Business Spectator reported.

“The sooner the ChAFTA comes into force, the quicker it will benefit producers and consumers in both countries,” Ma said. His speech was timed to mark 100 days since the agreement was signed in Canberra. “In the Chinese tradition, a ­celebration event should be held for the 100th day of a newborn baby,” the Chinese ambassador said.

For feedback/comments, contact the writer at feedback@ibtimes.com.au or let us know what you think below.

RELATED STORIES