Labor shifts on US free trade deal

The Australian, 18/8/03, By Christine Wallace and Stefanie Balogh

LABOR is unlikely to oppose the proposed US-Australia free trade deal, raising the possibility of a rift between the ALP and the trade union movement.

The informal policy shift within federal Labor emerged yesterday as the ACTU said it would actively lobby members of the US Congress to block any deal unless union concerns were addressed.

ACTU president Sharan Burrow said the union movement, in league with its counterpart the American Federation of Labor-Congress of Industrial Organisations (AFL-CIO), would campaign directly against the deal in the US unless its demands on core labour standards, services, investment, government procurement and public health were met.

Ms Burrow's announcement came as Opposition Leader Simon Crean softened his anti-FTA rhetoric and trade spokesman Stephen Conroy indicated Labor did not yet have enough information to reach a final position on the issue.

Labor sources acknowledged yesterday that the party's position on the FTA had moved from "negative" to "neutral".

Mr Crean said: "If the bilateral approach, the FTA, is consistent with an outcome in Doha that advantages a broader outcome, then we do support it."

The federal Opposition is already surrounded by pro-FTA Labor premiers. It is also being driven by a feeling among relevant frontbenchers that there are enough big policy differences between Labor and the current US administration without adding another major irritant to the list.

Labor is understood to be annoyed that the Howard Government expects it to support the FTA but is excluding it from the negotiations and briefings on the issue.

"It's a government that says: 'We should get bipartisan support.' But it does not involve the other side of politics in the process," Mr Crean said.

Federal Labor's shift highlights a widening rift with industrial arm of the labour movement over the FTA.

Union pragmatists, such as Australian Workers Union national secretary Bill Shorten, are understood to believe the labour movement may have to wear the FTA because it could create more jobs than it destroys, but that it is too early to back the deal.

"I'm pro-trade but I don't support a deal at any price," Mr Shorten said.

The ACTU and the AFL-CIO will release a joint statement on the FTA at the ACTU's triennial congress in Melbourne today.

The statement warns that the peak Australian and American union bodies will join together to oppose any FTA that falls short of union goals.

"If it is to go ahead, then in the very least it has to adhere to these standards, and we will be campaigning jointly with the AFL-CIO on that basis," Ms Burrow said.

It was likely that the unions would end up lobbying outright against the deal in the US, she said.