Advocacy groups claim a secrecy agreement between the US Trade Representative Office and members of Indo-Pacific Economic Framework (IPEF) undermines a commitment by the Australian government to be transparent and consult with the community.
The framework is an initiative of the Biden Administration with US-aligned countries, motivated, in part, by strategic competition objectives in the region with Beijing. It aims to lift labour and environmental standards, deliver a digital trade framework, create predictable supply chains, and provide greater investment in decarbonisation and clean energy.
IPEF countries, including Australia, the US, Brunei Darussalam, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam and Fiji, have committed to keeping all negotiation documents that were exchanged as part of the framework’s development secret.
The terms of the in-confidence agreement mean the documents will stay secret five years after the framework comes into force or if the IPEF otherwise comes to an end.
Now the Australian Fair Trade and Investment Network (AFTINET) is calling out the gag agreement entered into by the last LNP government as contradictory to Labor’s position.
Dr Patricia Ranald, who is the convenor of AFTINET, said the federal government entered the secrecy agreement just before the Coalition lost power at the last federal election. She suggested the clause risked a host of policies impacting the lives of everyday people coming into effect with limited public consultation.
“IPEF agreements will impact directly on people’s lives in terms of labour rights and environmental standards, and many other areas,” Ranald said.
“There should be access to negotiating proposals for the public and community groups, including unions and environment groups.”
The University of Sydney academic said the Labor government should step up to ensure there was greater transparency around the negotiation among member trade ministers for the objectives of trade, supply chains, clean economy and a fair economy.
#India’s @PiyushGoyal met his #Australian counterpart Don Farrell on the sidelines of #IPEF: “Our #trade & #investment ties have strengthened with the signing of Economic Cooperation & Trade Agreement. Discussed ways to further boost bilateral trade & cooperation under the IPEF.” pic.twitter.com/Jbc4RAqStI
— The Australia Today (@TheAusToday) September 27, 2022
AFTINET joined 46 other NGOs earlier in an open letter in September demanding proposals, negotiating texts and related documents relating to the framework be made openly available.
“Without such access, IPEF cannot meet its claimed goals of improving workers’ rights and environmental standards.
“We call on the Labor government to implement its policy for a more open process,” Ranald said.
The IPEF does propose more access to US markets for members because of bipartisan US Congressional opposition to any legally binding agreement that may increase imports into US markets.
The US is not a member of the two other big trade agreements for the Indo-Pacific region: the Regional Comprehensive Economic Partnership (RCEP) of 15 countries including China, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership of 11 Pacific Rim countries.
According to the Department of Foreign Affairs and Trade (DFAT), IPEF members represent 40% of global GDP. The members also include eight of Australia’s top ten trading partners.
“IPEF is intended to establish a new style of trade architecture, which could cover modern trade rules as well as specific regional projects and initiatives, including joint public-private activities,” a statement on the DFAT website reads.
“We encourage the submission of innovative and new ideas about what could be contained in a regional economic framework focused on current and future challenges and problems.
“IPEF will not be a traditional Free Trade Agreement and at this stage will not include market access for goods and services.”
The Australian government is inviting submissions about IPEF until the end of October.
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