OZschwitz slave pen: Union push for ban on free trade deals

THE campaign by trade unions for the Government to favour Australian goods and services during the recession has been extended to calling for a ban on future free trade agreements.

A draft measure to be adopted at the ACTU national congress early next month - and then debated at Labor's national policy conference in late July - calls on the Government to suspend any further agreements.

"Government shall not enter into further bilateral trade agreements until the present recession has passed and the shape of the post-crisis world has become clear," it says.

Last week, the Herald reported the unions, with ACTU ratification, will move at Labor's national policy conference for further industrial relations changes and a buy-Australian approach to the tens of thousands of goods and services government procures each year.

It is understood the unions will be demanding a 20 per cent price advantage for Australian goods over foreign products.

That means an Australian product should still be favoured even if 20 per cent more expensive than its foreign counterpart. The Government is wary of the union push and considers it protectionist. It also risks contravening international free trade obligations.

It is understood the Prime Minister, Kevin Rudd, the Treasurer, Wayne Swan, the Finance Minister, Lindsay Tanner, and the Trade Minister, Simon Crean, are leading internal moves to resists the push. Mr Rudd has delegated the Industry Minister and left-wing faction leader Kim Carr to act as an intermediary and come up with a practical set of proposals that can be put to the conference.

At this stage, no side appears willing to back down, setting the scene for a stoush at the conference, an event the ALP needs to act as a springboard towards the next election.

Mr Crean, a former ACTU leader, is understood to be annoyed with the unions. He is negotiating a free trade agreement with China and has just begun talks with South Korea.

LNK

OZschwitz slave pen: Union push for ban on free trade deals

OZschwitz slave pen: Union push for ban on free trade deals

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