Beware the illusion that is 'free trade'

As the federal treasurer allows the Chinese government to buy up ever increasing stakes in some of our biggest mining companies, the opposition remains mute on the Australia-China Free Trade Agreement (FTA).

The Prime Minister announced late last year that the FTA is to be ‘fast tracked’, with the Chinese particularly interested in getting access to our car industry and being allowed to buy majority owned stakes in Australian mining and resources companies.

We are constantly told about the supposed benefits of an FTA, but what is the potential cost of all this for the Australian economy?  The government has promised over $6 billion dollars of taxpayer subsidies for our car industry.  How on earth will an industry that needs to be so heavily subsidised compete with China in a free trade agreement?

Still, lessons are perhaps finally being learned the hard way with the supposed economic nirvana that is ‘free trade’.  Late last week, Trade Minister Simon Crean was crying ‘not fair’ at the Davos forum when President Obama inserted a ‘buy American’ steel provision into his economic stimulus package.  In times of economic turmoil the FTA that Australia has with the United States appears to be not worth the paper it is written on.

If we can't rely on our closest ally, the United States to honour a free trade agreement, what hope will Australia have with a country such as China? 

So where is the opposition on this issue?  We all know that when in government the opposition was responsible for the Australia-USA FTA and initiated the China FTA.  They need to put to one side their commitment to the free trade dogma and put the interests of the Australian people first by asking some basic questions of the government.