Prime Minister Anthony Albanese has continued publicly calling for Beijing to remove the trade sanctions on Australian exports.
“What I’ve said very clearly is that I want to cooperate with China where we can, disagree where we must, but engage in Australia’s national interest. It is in Australia’s interest to be able to export without any impediments to China,” Albanese said at a press conference on Jan. 14.
The prime minister said that his government had engaged diplomatically with the Chinese communist regime since the election last year and would continue to do so.
“We believe that it is in both our countries’ interests to continue to develop more positive relations.”
The Chinese regime’s trade coercion on Australian exports began in 2020—including wine, barley, honey, beef, lamb, wood, seafood, and coal—to punish the country for the Morrison government’s call for an inquiry into the origins of COVID-19.
Beijing Calls for WTO Trade Disputes to be Dropped
Chinese Ambassador to Australia Xiao Qian has called on the Australian government to drop the WTO disputes.“We didn’t want to take the action in the first place,” Farrell said. “The previous government had sought to try and resolve the issues. They weren’t able to, and this is the only way that we can progress these issues.”
Farrell said that Australia has an unusual relationship with China in that despite the diplomatic tensions, they are currently Australia’s largest trading partner, with 2022 seeing close to $300 billion worth of trade.
“That eclipses all of our trade with the United States, with Japan, Korea, France and Britain. Our trade with China is more than all of those countries, but we have a problem with three or four products,” he said.
A New Competitor in the Wings
Yet China may soon find itself competing with India for Australian products after a free-trade agreement came into force in January—likely to greatly benefit Australia.“A population of 1.4 billion people, one of the largest economies in the world, currently one of our significant trading partners. We hope that our trade deal with India gives us the opportunity to diversify our trading relationship so that we’re not relying on one large economy to sell our products into,” Farrell said.
“We’ve had a very long-standing and positive relationship with India. Of course, the prime minister is hoping to go to India early next year, and we want to build upon those good relations to ensure that we have a terrific potential new trading partner of great significance to Australia.”
The agreement has also been welcomed in India, where it is expected to boost the economy.
“The India-Australia ECTA is a win-win opportunity for both countries,” he said, noting that it will lower costs to the Australian consumer and provide a large market for Australian minerals, produce, and wine.
“From the Indian perspective, the relaxing of visa requirements, the opportunities for pharma and dual degree programs is unprecedented.”
He also noted that the deal would create stable, trusted supply chains amid a tough geopolitical environment.
“Trade is moving to countries with like-minded values, and neither India nor Australia can stay out of these groupings.