A 2011 agreement between Western Australia and Beijing aimed at enhancing China's involvement in the state's economy could be torn up under proposed Commonwealth laws on deals with foreign nations.
Key points:
- The proposed federal laws seek to control deals with foreign countries
- WA's agreement with China covers trade and investment co-operation
- Ex-premier Colin Barnett fears the WA economy will suffer under the changes
WA Premier Mark McGowan has singled out the Barnett government-era agreement, saying it was "a sort of predecessor to the Belt and Road initiative", which Victoria has signed up to with China despite strong objections from the Morrison Government.
The state's former premier Colin Barnett — who was in power when the deal was inked — has reacted furiously to the proposed federal legislation, labelling it "appalling" and saying it would further damage Australia's already strained relationship with its biggest trading partner.
He said it would have a direct economic impact and impede future resource projects, and called on all WA federal MPs to "stand up" for the rights of the state and lobby against it.
The federal bill would regulate all agreements state and territory governments, local councils and public universities make with foreign nations.
All existing arrangements would have to be disclosed and listed in a public register.
The Foreign Minister would then review the list and could terminate any existing agreements if they were deemed to hurt Australia's foreign relations.
Commonwealth may 'take an interest' in deal
Mr McGowan said he had only received a letter from Prime Minister Scott Morrison about the proposed law last night and would not give his opinion, except to say foreign affairs were a matter for the Commonwealth.
But he did say the 2011 agreement between WA and China's key economic planning body, the National Development and Reform Commission (NDRC), could be a target.
"It was a memorandum of understanding (MOU) with the NDRC," the Premier told ABC Radio Perth.
"It was a sort of predecessor to the Belt and Road initiative, but it's the only one I can think of that might be something the Commonwealth would take an interest in."
Mr Barnett travelled to Beijing in September 2011 to sign the MOU and touted it as the first the NDRC had signed with a non-national government covering bilateral trade and investment co-operation.
"Both WA and China will support and encourage increased Chinese engagement in the development of key Western Australian industry sectors, and greater participation in key Chinese sectors by Western Australian companies and companies with strong commercial ties to WA," he said at the time.
Under the MOU, a China-Western Australia Investment Facilitation Working Group was to be set up.
It would bring WA and Chinese officials together annually to discuss local content policies, identify key growth sectors and opportunities for joint developments and "establish alliances between Chinese and WA businesses".
Barnett hits out at federal 'mess' with China
Mr Barnett, who was premier from 2008-2017, said he was surprised by the announcement of the new legislation and was opposed to it.
While he said it was right the states did not have a role in foreign policy, he said they were still sovereign in their own right and had a role in economic development.
"Particularly WA, given its mining and gas industry. Over the last 10 years, successive federal governments have really made a complete mess of the relationship with China," he said.
"It's a misunderstanding of China and it's damaged our relationship and it's put at risk potential growth areas such as tourism and international education."
Mr Barnett predicted it would further damage relations with China, and said the state's economy could suffer more broadly.
"Western Australia has been well regarded, particularly in China, Japan, Korea, and to try to take Western Australia out of negotiations will mean those industries will suffer in their relationship with foreign countries and foreign state-owned enterprises and foreign private companies," he said.
Fears future WA resources projects at risk
The former premier agreed with Mr McGowan the 2011 MOU could now be affected.
"Yes, I think it definitely would be, and that has been very important in the development of major new mining projects," he said.
"Particularly iron ore and also the expansion and trebling of the liquified natural gas industry over that period."
Mr Barnett said there would be concrete consequences if it was terminated.
"I think it would impede future resource projects, because the states are unlikely to negotiate over major resource projects through Canberra, they will deal directly with overseas governments and companies… I think this will just become a complete mess," he said.
"I would certainly hope that WA members of Federal Parliament, both Liberal and Labor, will absolutely stand up for the right of this state and every state to do what [they are] allowed to do and should be doing under the Australian constitution.”
https://news.google.com/__i/rss/rd/articles/CBMib2h0dHBzOi8vd3d3LmFiYy5uZXQuYXUvbmV3cy8yMDIwLTA4LTI3L3dhLWNoaW5hLWRlYWwtYXQtcmlzay11bmRlci1wcm9wb3NlZC1uZXctZm9yZWlnbi1yZWxhdGlvbnMtbGF3cy8xMjYwMTUxNNIBJ2h0dHBzOi8vYW1wLmFiYy5uZXQuYXUvYXJ0aWNsZS8xMjYwMTUxNA?oc=5
2020-08-27 03:22:00Z
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