Australian farmers and business leaders yesterday broadly welcomed a proposed free trade agreement with China but a union leader slammed the decision to start talks as based on a fiction.
The two sides on Monday night signed a memorandum of understanding during a visit by Prime Minister John Howard to Beijing, paving the way for the start of negotiations on an agreement.
The Australian Industry Group said China had already achieved a major goal even before talks start, after Australia granted it market economy status. The status is crucial for China's WTO undertakings as it will give Beijing a better basis to negotiate trade disputes.
But Australian Manufacturing Workers Union national secretary Doug Cameron said such a status was pure fiction. Cameron said Beijing controlled and intervened in every aspect of its economy and had a series of provincial non-tariff barriers to protect and promote its industries.
"Workers have no bargaining rights. The country has no human rights, poor environmental standards and a diabolical health and safety system," he said.
China represents a threat to living standards and job security worldwide, Cameron said.
The National Farmers' Federation was more upbeat, saying farmers and agricultural exporters stand to gain. Federation president Peter Corish said Australia must concentrate on gaining free access for all agricultural goods.
Australian agricultural exports to China were worth A$2.4 billion dollars (US$1.8 billion) last year, only a very small percentage of the total Chinese agricultural market.
Australian Chamber of Commerce and Industry chief executive Peter Hendy said a deal would put Australia in a unique position -- having free trade agreements with two of the world's major economic powerhouses, China and the US.
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