Penny Wong.
Penny Wong. TRACEY Nearmyaap

Labor stands firm on threat to hold up China FTA

TRADE spokeswoman Senator Penny Wong is not backing away from Labor's threat to hold up the free trade agreement with China.

In an interview on radio station 5AA on Wednesday, Senator Wong said Labor understood why a trade agreement with China was important, but the party wanted to get it right.

"The government has included aspects in this agreement which hasn't got it right, which doesn't sufficiently support Australian jobs, which doesn't sufficiently guard against exploitation of workers who come in," she said.

"And what we see in this agreement ... is a very clear removal of labour market testing under one chapter of the agreement and we have said we think that's a problem.

"We know, for example ... that the testing that is making sure the job is offered first to an Australian who can do it, is removed in relation, for example, to people who have trade qualifications. Now that is a problem."