Labor calls for foreign investment rethink

Labor wants the federal government to rethink changes to foreign investment in agricultural businesses, warning of a two-tier system.

The government hopes to lock in reforms, due to begin in December, bringing down the threshold for investments in agribusiness to $55 million.

But the opposition's trade spokeswoman Penny Wong told ABC TV, the rules apply to Chinese investors but not to Americans, urging the coalition to rethink its position.

Senator Wong would not got as far as her colleague Sam Dastyari, who likened the policy to the White Australia Policy.

But she was concerned at some of the rhetoric from the Nationals and its deputy leader Barnaby Joyce.

"I think there are real economic questions as to why you would throw up barriers to investment in agribusiness at a time when we know we need foreign capital in that sector in order to scale up to make the most of the opportunities of this Asian century."