THE Committee for Economic Development of Australia (CEDA) has proposed the federal government consider ‘free movement of workers’ agreements with key trading nations, similar to the current agreement between Australia and New Zealand.
The proposal was raised in CEDA’s new research report Global networks: transforming how Australia does business, which outlines ideas for guiding future trade negotiations.
“Just as the TransTasman Travel Arrangement enabled free movement of workers and expanded the pool of skills available in both Australia and New Zealand, Australia could benefit from actively seeking the free mobility of labour between other appropriate countries, said CEDA chief executive, the Hon. Stephen Martin.
“Obviously Australia would need to proceed with caution but this type of agreement does have potential to deliver benefits.
“Singapore, given its relative closeness to Australia and its role as a regional hub, would be a good example of where this type of agreement could have benefits for both countries.”
The CEDA report also called for the development of a formal trade policy that would set the parameters for all future free trade agreement negotiations. Mr Martin said the policy would allow for a more transparent negotiation process which could help reduce uncertainty.
“While governments trumpet the economic benefits of FTAs that will flow to Australia, whether in trade access or increased employment opportunities, a criticism is that these agreements are negotiated in secret.
“It is often overlooked that these significant agreements have to be ratified through parliament with little time to assess for unintended consequences, and as always with complex agreements, the devil is often in the detail, not the headline.
“An overarching trade policy for Australia that sets out how agreements fit within a single strategic economic framework would provide some certainty that each agreement is negotiated within certain parameters and with a certain direction in mind.”
Click here to download the full CEDA report.
