Justin Brown, a deputy secretary responsible for trade, investment and economic diplomacy in DFAT, was our guest in an energetic question and answer session at Glover Cottages on Tuesday 21 June.

Before the advent of free trade agreements, Australia seemed to do well in trade, especially with our energy and iron ore exports responding to the post-war development boom in North Asia. We now seem to have a veritable trade negotiation industry. Why do we need 18 bilateral and multilateral trade agreements, the most recent being with China, Japan and the Republic of Korea? Why do we have plans for yet more trade agreements? Although the science is not perfect, FTAs foster freer trade, eliminate some tariffs, allow domestic businesses access to cheaper imports and enhance the competitiveness of some Australian exports. But FTAs can’t solve every problem we have. With our North Asian, European and North American trade partners, obtaining tariff free access for our agricultural products has always been a tough nut to crack, for example, on sugar into the United States, on beef and some cereals into Japan and Korea. But in many other respects we make consistent gains.

How do we measure the benefits of FTAs after their conclusion? With difficulty over time. By a careful evaluation of trade statistics, calculated within the vagaries of changing global economic conditions.

Why are some of them, notably the TPP, negotiated in secret? So that delicate bargaining and trade-offs are not subject to the sometimes uninformed and often sensationalised gaze of the media; to avoid allowing officials in countries with which the FTA is being negotiated free access to Australia’s strategies in striving to obtain the best deal possible; to protect our negotiators and those we are negotiating with from premature disclosures that could compromise deals.

If it passes the US Senate, and survives the presidential elections, will the TPP compromise Australian laws designed to protect consumers as regards patents, litigation against Australian governments by foreign companies, or over copyright? There will be some compromises, but Australia will be ahead on balance. Litigation, for example, will be a two-way street with Australian companies having legal rights to sue similar to those of any other signatory. Australian companies could, for example, sue in American jurisdictions. Australian TPP negotiators have been particularly mindful of protecting Australian consumers under the Pharmaceutical Benefits Scheme, which will remain intact. Modification of copyright laws will remain problematic and controversial.

If Britain decides to leave the European Community in the forthcoming BREXIT vote, how will this affect our trade to Europe? With the European Community, not at all. With Britain however, the basis of our trade will indeed have to be renegotiated painfully and almost item by item, from the ground up. It will entail a great deal of extra work for Justin’s divisions in DFAT, as well as in other agencies in Canberra.

Report by Richard Broinowski