Indian FTA turns Australia into guest worker economy

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I reported yesterday how the newly inked interim India-Australia Free Trade Agreement (FTA) has prized open the immigration floodgates, greatly increasing access for Indian workers and students to stay in Australia long-term:

Australian and Indian architects, engineers and accountants will be recognised in each other’s countries under a new free trade deal between the two nations…

Up until now, architects, engineers and accountants have had to go through various exams and approval processes to practise in each other’s countries.

A “side letter” accompanying the trade deal, which was signed over the weekend, also includes post-study work rights that will allow Indian students to live, work and undertake further study in Australia for years after the initial completion of their studies here.

Indians will be able to work temporarily for up to 18 months after the completion of a diploma or trade qualification, two years after their bachelor degree, three years after their master’s degree, and four years after their doctoral degree…

Trade Minister Dan Tehan said the education sector held the greatest promise for Australia’s trading relationship with India.

“One million Indians turn 18 every month, so there is a huge and growing demand for a high-quality education,” Mr Tehan said…

Australia will also grant visas to 1000 young Indians every year who want a working holiday in the country.

Now it has been revealed that outgoing Federal Trade and Tourism minister, Dan Tehan, wants easier visa access to be expanded to other industries under the final FTA:

Australian Trade and Tourism minister Dan Tehan told the media that Yoga instructors and chefs from India would get a visa. He said, “Mobility was one of the key outcome of this trade agreement”…

Mr Tehan said these professionals would still receive visas under skilled migration categories. However, he did not give further details.

He said, “They will come under skilled migrant category. We are working through the details with the immigration department”…

Mr Tehan said Australia could further consider requests in visa sectors.

“We could explore in the future, and I’m sure from the Indian side there will be further requests on the mobility side, and from an Australian point of view, one of the areas that I’m keen to see continue to develop is what we can do in the criteria. Obviously there is the ability for Indian students with IT skills to remain longer in Australia post-study. But I think there’s more that we could potentially do given our IT needs in this area, so that’s one thing that we could continue to discuss as we head towards a final agreement,” said Mr Tehan.

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The flow of professionals will obviously be one way from India to Australia. This is concerning as the Indian tertiary education system is far inferior to Australia’s.

Granting generous post study work rights for Indians will see many thousands undertake cheap mickey mouse courses in order to work in Australia long-term in a bid to gain permanent residency.

Last decade we witnessed widespread immigration scams involving students from India, who mostly came to Australia to work rather than study:

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Percentage of international students that work

This FTA will merely turn student visas into fully fledged low-skilled work visas.

This deal is a slap in the face for Australia’s young people seeking careers in professional industries who will be shut out by Indians prepared to work for much lower salaries. Older Australian professionals will also find themselves increasingly unemployable over 50.

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This FTA is all about providing cheap labour and demand for Big Business and Big Property, and students for the edu-migration lobby.

It will further suppress wage growth and exacerbate infrastructure and housing strains across Australia.

It is one final treasonous betrayal of Australian workers by a corrupt government before being booted from office.

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Why aren’t the Unions and Labor pushing back against this deal? Why aren’t they representing Australian workers?

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.