Trade and Investment Agreements (Consultation) Bill 2026
Senator AYRES (New South Wales—Minister for Industry and Innovation and Minister for Science) (17:03): I table the explanatory memorandum relating to the bill and move: That this bill be now read a second time. I seek leave to have the second reading speech incorporated in Hansard. Leave granted.
The speech read as follows— Australia is a trading nation and the Albanese Government understands its importance to our economy, communities, businesses and local jobs. We know that more trade creates more well-paid, secure jobs—particularly for the agricultural sector. In 2023-24, trade supported almost 3.4 million full-time equivalent jobs, or more than one in four jobs.
Trade-related activities contributed to almost 30 per cent of Australia's GDP during this period. Trade delivers higher living standards for Australians by increasing their income and purchasing power. While prices for consumer goods and services increased 70 per cent in the two decades to 2024, prices for trade-exposed goods and services increased only 37 per cent.
Trade also drives productivity through competitive innovation, spurred by global competition, and enhances Australia's economic resilience by diversifying markets and supply chains. Australia's trading relationships underpin key sectors of the economy, from agriculture and resources to advanced manufacturing and services, ensuring that Australian businesses remain competitive in a rapidly changing global environment.
For all of these reasons, shaping global and regional trade architecture is a key priority for the Government. This includes negotiating trade and investment agreements that safeguard Australia's interests, benefit the Australian community, and reflect Australian values. Our Government recognises the valuable contributions that every part of the Australian community can make in shaping the Government's approach to trade.
We have strengthened consultation processes in trade negotiations—but more can and should be done. In this time of global uncertainty, Australian businesses, unions and experts seek reassurance that their perspectives are being considered when it comes to how Australia trades. To inform the Government's response to this issue, I asked the Joint Standing Committee on Trade and Investment Growth to inquire into the Australian Government's approach to negotiating trade and investment agreements.
The inquiry made recommendations to reform transparency, impact assessment and stakeholder engagement during the negotiation of trade and investment agreements. Most notably, it recommended that the Government establish a legislative framework for the negotiation of Australia's trade and investment agreements. This Bill directly responds to these recommendations.
The Bill creates a new Trade Advisory Group to advise the Government on free trade agreements as well as other international trade issues. The Group will include representatives from academia, agricultural industries, business associations, non-governmental organisations, small businesses and trade unions. This is designed to ensure that all future governments consult with representatives from across the economy.
Free trade agreements cover a range of trade and investment issues, and the Bill introduces new requirements largely directed at them. The Government must meet these requirements when negotiating new covered free trade agreements or significant amendments to these agreements. Some of the requirements extend to bilateral investment treaties or to FTAs that only recently entered into force.
These include requirements to: consult the Trade Advisory Group on Australia's negotiating objectives for FTAs and seek its advice prior to signing an FTA; ensure the public has access to information relating to FTA negotiations, including notification of the commencement of negotiations and the negotiating objectives; advocate for Australia's interests in FTA negotiations on certain matters such as trade in goods and services, digital trade and investment opportunities, as well as labour rights and the interests of First Nations Australians; commission and publish an independent assessment of impacts of the agreement or amendment on Australia's economy and community; commission and publish an independent review on the impacts of the agreement on Australia's economy and community within five years of entry into force, or later in certain circumstances; and require free trade agreements and bilateral investment treaties to include, or not include, certain outcomes prior to signature.
These requirements will apply to free trade agreements covered by the Bill, which include both bilateral and plurilateral agreements. Covered agreements are those that liberalise all—or substantially all—of Australia's trade in goods and services with a partner economy. They will also apply to comprehensive upgrades of those free trade agreements.
The requirements will not apply to: agreements that apply only to certain sectors or types of economic activity such as digital economy agreements; agreements negotiated or concluded through an international organisation such as the World Trade Organization or the World Intellectual Property Organization; free trade agreements that have been in force for more than five years, and amendments of those agreements; and Australia's accession to agreements that already exist, or accessions by other economies to agreements to which Australia is already a party, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Some requirements in the Bill would also apply to bilateral investment treaties. While the requirement for free trade agreements and bilateral investment treaties to include, or not to include, certain outcomes before signature only pertains to future agreements, it should be the aspiration of all governments to meet these requirements wherever possible. Trade policy matters, including during free trade agreement negotiations, often involve sensitive and commercial-in-confidence information that must be respected to protect international relations, Australia's negotiating positions, and the interests of Australian businesses.
Members of the Trade Advisory Group will enter into arrangements with the Government, under which the responsible Minister can authorise confidential information to be shared with them, or appropriate persons supporting them, that is reasonably necessary for them to carry out their functions and duties. This approach will enable the Government to support Trade Advisory Group members to better understand the opportunities and risks at stake on a given matter, and to provide more informed advice.
Penalties will apply for use or disclosure of information by members contrary to these arrangements. Trade is a key contributor to Australia's economic success and the views of Australians need to sit at the heart of Australia's trade policy. To this end, the Australian Government is committed to genuine consultation—ensuring that the Government's approach reflects community expectations by strengthening consultation and transparency.
It also gives the Australian public confidence that future trade and investment agreements remain focused on protecting Australia's interests, benefiting the Australian community, and reflecting Australian values. In the face of increasingly complex and challenging global trade environment, it is vital that Australia pursues economic prosperity in a way that reflects the Australian community.
This Bill will ensure that the Australian Government does just that. Ordered that further consideration of the second reading of this bill be adjourned to the first sitting day of the next period of sittings, in accordance with standing order 111.