Australia locks in contentious new trade deal

Australia has inked a new free trade agreement with the United Arab Emirates.

Trade Minister Don Farrell made the announcement in Canberra on Tuesday, saying the deal would eliminate tariffs on more than 99 per cent of all Australian products entering the UAE.

“This is the first trade agreement with the Middle East,” he said.

“The UAE is not only our largest trade and investment partner in the Middle East, but it is always one of our most important strategic, diplomatic and Defence partners in the region.”

The announcement follows months of sustained engagement between the two nations, but the deal has sparked controversy.

The UAE is not a democracy and the Australian Council of Trade Unions has flagged concerns about worker rights in the Middle-Eastern monarchy and whether an agreement with a “repressive” regime would promote “equitable development abroad”.

“The Australian Union movement strongly believes the government should not give preferential market access to countries with poor labour rights practices. Given the UAE’s notorious record on human rights – including workers’ rights – we call on the Albanese government to not proceed with these negotiations unless and until the UAE takes concrete steps to safeguard workers’ rights,” the union said in April.

“We note that the UAE would be the most repressive country an Australian government – Labor or Coalition – has ever done a bilateral trade agreement with.

“The Australian Union movement is deeply concerned that negotiating a trade agreement with the UAE sends the signal of Australia legitimising and incentivising continued violations of labour and human rights.

“In our view it is unacceptable that a Labor government, which has recently introduced industrial relations reforms to better protect the rights of Australian workers, reforms to the migration system to protect migrant workers, and reforms to combat modern slavery throughout global supply chains, would contemplate closer economic ties with a country that does not even enable independent trade unions to operate.”

But the government pursued the deal to drive Australian exports in the region, with the UAE a key hub for the broader Middle East.

“The UAE is a gateway to the region and beyond, with two-way goods and services trade valued at $9.26bn in 2022,” Mr Farrell said at the beginning of negotiations in December 2023.

“The UAE is already a key market for Australian goods and services exports, including alumina, meat, oil seeds and education, with three Australian universities having campuses in-country.

“A trade agreement with the UAE would create new commercially meaningful opportunities for Australian goods and services exporters seeking to diversify trade.

“It will also offer the opportunity to deepen our co-operation in our shared ambition to transition to net-zero through greater investment.”

UAE citizens enjoy a high standard of living.

The country is an oil and gas behemoth and its massive Dubai International Airport is a key hub for international travel.

Its Jebel Ali Port also makes it a major hub for logistics and trade.