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Australia’s Department of Foreign Affairs and Trade claim ‘resounding victory’ in global test case.

The World Trade Organisation has rejected a complaint brought by Indonesia, Honduras, the Dominican Republic and Cuba against Australia’s historic tobacco plain packaging law.

The WTO panel said Australia’s law improved public health by reducing the use of tobacco products, and rejected claims that alternative measures would be equally effective.

It also rejected the argument that Australia had unjustifiably infringed tobacco trademarks and violated intellectual property rights.

Experts say the challenge was a test case for public health legislation globally. The Rudd government introduced the plain packaging laws in 2010. It was the first country in the world to do so.

According to the WTO six other countries – Hungary, Ireland, France, New Zealand, Norway and Britain – have since introduced plain packaging laws, while another six – Burkina Faso, Canada, Georgia, Romania, Slovenia and Thailand – have passed laws yet to be implemented.

Vera Luiza da Costa e Silva, from the World Health Organisation said there was already a “domino effect”, with countries moving towards Australian-style rules.

The federal government said it was prepared to fight any appeals against the decision.

“We will not shy away from fighting for the right to protect the health of Australians,” the trade minister, Steve Ciobo, and rural health minister, Bridget McKenzie, said in a joint statement.

Chinese workers are being brought to Australia under secret deals with pay rates far below our minimum wage.

The China Australia Free Trade Agreement (Chafta) allows for secret deals between Australia’s Department of Immigration and Chinese firms investing in Australia, according to the ACTU, which represents members of 38 affiliated unions.

Under Chafta, Chinese workers brought to Australia have no right to bargain for wages and can be paid as little as $10 an hour, the ACTU says.

Chafta measures that disadvantage Australian workers and weaken the labour rights of Chinese workers are outlined in an ACTU submission to a review of Chafta being conducted by the Department of Foreign Affairs and Trade.

Negotiated between the Coalition federal government and the Chinese government, Chafta has been operating for two years.

“Anecdotal evidence of Chinese workers being abused has already been identified,” the submission says.

“Fairfax Media reported on Chinese welders being paid $US70 a day, a fraction of the going rate for a lift industry worker of $42 an hour. It is also below the national minimum wage, which is currently $18.29 for a full-time adult worker.

“The workers received no pay slips, no penalties, no superannuation, and had no WorkCover insurance.”

Australian workers at a disadvantage

The ACTU says Chafta puts Australian workers at a disadvantage with Chinese workers by removing labour market testing for infrastructure projects.

These are defined as projects worth over $150 million and which have a minimum 15 per cent Chinese funding.

That means Chinese companies in Australia can import workers for those projects without first advertising job vacancies in Australia.

Rather than bringing in foreign workers on short-term contracts, Australia’s migration program should focus on permanent migration where workers enter Australia independently, the submission says.

“This gives migrants a greater stake in Australia’s long-term future and it removes many of the ‘bonded labour’-type problems that can arise with temporary migration where a worker is dependent on their employer for their sponsorship and ongoing prospects of staying in Australia.”

ACTU President Ged Kearney says no group of workers should be exempt from Australian labour law based on their country of birth.

“We have seen stories of migrant workers being paid well below the minimum wage and being pushed through vital safety briefings that they had no way of understanding.

“The Turnbull Government is endorsing the exploitation of migrant labour that ultimately means Australians needing work cannot get jobs.”

WTO rejects challenge to tobacco plain packaging

ACTU blasts secret Chinese deals