It took a decade to negotiate, offers benefits to Australian businesses and is arguably the flagship achievement of prime minister Tony Abbott, but the China-Australia Free Trade Agreement could be derailed by a trade union campaign.

The deal, which was signed in June but requires legislation to be passed in parliament, would cut tariffs and remove other impediments to exports while relaxing rules on Chinese inward investment. It underpins a deepening relationship between Canberra and Beijing, which this year saw Australia join the Asian Infrastructure Investment Bank against the wishes of its key ally, the US.

“It’s a good deal for Australia and it certainly doesn’t need to be reworked or in any way renegotiated,” said Mr Abbott, the Liberal party premier. “I call on the Labor party to stop playing xenophobic games here.”