CTU Submission to the International Treaty Examination of the New Zealand- China Free Trade Agreement

Submission to the Foreign Affairs, Defence and Trade Select Committe, May 2008

Click here to download a printable version of the submission (MS Word 268k)

Summary

The CTU has consistently raised the risks of a free trade agreement with China. However we have also recognised that the overwhelming majority of the countries in the world are negotiating free trade agreements and already some 2000 have been signed.

The CTU is opposed to a neo liberal approach to free trade that seeks to break down any barriers to the unfettered access by multinational corporations to land, resources, workers, culture, plant life and so on. We oppose a globalisation agenda that treats labour as a commodity, weakens food security and prohibits nations from controlling their economies in the interests of their people. 

As the negotiations neared completion the CTU was focussed in particular on the Labour MOU, the tariff phase down in New Zealand and temporary migration under Mode 4.

The CTU has called for a review of the Trade and Labour Framework and has also questioned how effective the Labour MOU will be when complaints about labour standards are raised.

We have opposed in principle the inclusion of temporary migration as part of a trade agreement. That is not because the numbers cause much concern but because we do not support bound commitments on migration which should remain more flexible so it can adjust to current labour market conditions. We have suggested ways that the temporary migration under the FTA could be implemented.

The CTU has called for a reinvigoration of industry strategies in manufacturing as well as support for workers disadvantaged by the tariff phase down.

We have raised concerns about the Investor/State arbitration provisions in the Treaty.

We have also raised questions about the impact of further services liberalisation on the ability for New Zealand to regulate in the public interest.