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Home / New Zealand

<i>Trevor Hanson:</i> Open door to exploitation

8 Nov, 2006 04:05 AM5 mins to read

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Opinion by

KEY POINTS:

There has been no substantial public debate on the proposed free trade deal between New Zealand and China.

This is a serious problem because there are major issues with such free trade deals. Free trade is presented in New Zealand as something that cannot be stopped or even
questioned, and as a positive step with no downside at all.

Free trade is really just an extension of the free market to the global level - it is about integrating us with the global economy, but ignores that the global economy has some terrible things occurring in it.

We cannot separate the economy from the social problems we face. This approach was used to defend Rogernomics in the 1980s - to generate the money for social expenditure, it was said we needed a "lean and mean" economy. But the "lean and mean" economy created more social problems, not fewer.

Free trade refers to far more than just goods moving between two countries. It covers areas such as the movement of short-term labour, domestic regulations and investment, and who owns our economy.

The use of short-term, casual workers imported across borders by employers to undermine wages and conditions is a major concern for the Maritime Union.

The Chinese Government and Chinese business (the two seem interlinked) are quite clear that this is what they are looking for in Australia and New Zealand. Chinese Commerce Minister Bo Xilai told the New Zealand Herald during his visit last month that he had raised the issue of importing workers.

In Australia, the Chinese Government and business have been even more clear about their goals. The Australian Financial Review reported in June that China might be interested in a point-to-point, Chinese-owned and staffed transport chain stretching from mines, rail and ports in Australia through to shipping to China.

The Chinese Government has used World Trade Organisation negotiations to press for Chinese crews to load and unload vessels in Australian ports. Recent experience has shown us that these type of agreements are not a one-off, they are a process heading us in a certain direction.

This is not a debate about immigration, or race. It is an economic and social argument, and our position is that workers have the right to secure jobs with good wages.

This cannot be achieved when there is unregulated movement of short-term labour under free trade. The problems with the exploitation of overseas crews in the New Zealand fishing industry have recently been addressed by Government action.

However, our concern is that free trade will simply open the door to the same set of problems onshore in New Zealand. In Europe there have been major upheavals as stevedoring operators move casualised, short-term labour across borders to work in ports.

The global shipping industry is filled with unregulated vessels flying "Flags of Convenience", which are often crewed by badly paid and treated seafarers. These type of problems will come ashore with free trade.

Effectively, free trade sets us up to compete with the most heartless regimes in the world - those that are willing to sacrifice their people's living standards, health and environment to sell their goods cheaply and to attract foreign investment.

Last month the Los Angeles Times reported the sinister face of free trade in action. A growing backlash over low wages and poor conditions is occurring in Zambia, where Chinese-owned and managed mines are accused of terrible conditions, faulty equipment, appalling safety and paying $2 a day wages.

The mine workers don't even get a day off. There have been riots and catastrophic accidents.

The newspaper reported the Chinese Ambassador to Zambia made comments suggesting that Beijing might sever ties and investors might pull out if the leading opposition candidate won in the Presidential elections.

A 25-year-old miner summed up the situation. "We are seen as non-entities. The mine management is just concerned about profit, not human life," he said.

I believe this article should be compulsory reading for all our free trade-promoting politicians.

What is disturbing is that the Labour Government, which was elected largely by workers and those with a social conscience, is going down this path. There is a sense of having to rush it through, because if there was a full and frank public debate on free trade then it wouldn't happen.

For those who say that our democratic rights are safe under free trade, I only note the great lengths our governments go to, to hide visiting Chinese officials from any protest or dissent.

This may be because it makes them feel more comfortable because, as we know, free speech, workers' rights and democratic accountability are in short supply in China.

The further we go down the free trade path, the greater impact it will have on our society.

Let's not be blinded by the premature talk of economic bonanzas.

If we make the wrong choices now, we will have a long time to regret it, because once we are signed up, we are locked into the free trade system.

It's time to have a proper debate. Decisions on our future should be made by all New Zealanders, not unelected officials negotiating deals behind closed doors.

* Trevor Hanson is the general secretary of the Maritime Union of New Zealand

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