A Work and Holiday Arrangement was concluded alongside the China-Australia FTA (ChAFTA)which will allow 5,000 Chinese Work and Holiday Makers into Australia annually, according to the office of Trade Minister, Andrew Robb.

It is important to note that Australia and China have only signed an intention to enter a free-trade agreement. To be effective the agreement must pass the scrutiny of the Australia’s parliamentary system (and any further scrutiny by the Chinese government). So the final form of any ChAFTA could be very different from what is currently being touted. The intended outcomes are set out here: http://dfat.gov.au/fta/chafta/fact-sheets/key-outcomes.html

Labour, the Greens and the unions have launched attacks on the agreement with particular concerns over provisions that aim to allow Chinese companies to import labour into Australia.

According to The Australian, under the free-trade deal, Chinese workers would gain entry through a new mechanism called an ‘investment facilitation arrangement’ or IFAs.

The government said the IFAs would operate on a similar basis to enterprise ¬migration agreements yet do not require labour market testing.

Trade Minister Andrew Robb’s office explained in a statement that “any skilled Chinese employee hired by a contractor under the IFA would still come to Australia under the existing 457 visa system…Under that system, employers will be expected to demonstrate an ongoing labour market need before being able to sponsor overseas workers. Overseas workers must continue to be paid Australian market salary rates.

“IFAs will operate within the framework of Australia’s existing 457 visa system and will not allow Australian employment laws or conditions to be undermined…Similar to existing labour agreements, the range of flexi¬bilities under an IFA will be negotiated on a case-by-case basis for each project.”

Employment Minister Eric Abetz told parliament that the agreement would “streamline’’ the process for Chinese companies being able to bring in foreign workers on 457 visas for projects worth more than $150 million. But he said “the nuts and bolts’’ and the “details” would be in the final deal.

ACTU president Ged Kearney told The Australian: “Despite the government saying labour market testing will apply, their own fact sheet says rules for these new agreements will be based on enterprise ¬migration agreements, which do not require labour market testing.”