Australia needs to diversify its buying and selling relationship with China

Australia needs to diversify its buying and selling relationship with China, however that does not imply commerce flows will decelerate, Australian Commerce Minister Don Farrell informed CNBC.

“We need to stabilize our relationship with China… we additionally need to diversify our relationship,” Farrell informed CNBC’s Martin Soong on the weekend in Osaka, Japan the place G7 commerce ministers met.

“That does not imply buying and selling any much less with China. But it surely does imply buying and selling extra with the international locations with whom we have now free commerce agreements,” he added, citing these within the European Union bloc.

At present, Australia has agreements with more than 20 countries, and is hoping to barter for extra.

Canberra can also be in dialogue with its largest trading partner China to drop tariffs on Australian wine imports that have been introduced in March 2021. On the peak of diplomatic tensions in 2020 and 2021, China slapped import tariffs on several Australian exports — starting from wine and purple meat to lobsters and timber.

In August, Beijing finally lifted tariffs on Australian barley imports, which beforehand totaled about 1.5 billion Australian dollars ($988.1 million).

In a word of optimism, Farrell mentioned he expects Australian Prime Minister Anthony Albanese to have a “profitable journey” in his upcoming go to to China.

Albanese is set to visit China on Nov. 4 to Nov. 7, and is because of meet Chinese language President Xi Jinping. It will likely be the primary go to to China by an Australian prime minister since 2016.

Requested about Australia’s buying and selling ties with Taiwan, Farrell mentioned each events share a “superb buying and selling relationship,” and that Taiwan will proceed to be “certainly one of [Australia’s] largest clients beneath the Albanese authorities.”

“Our commerce can be going up with Taiwan, not backwards,” he mentioned, highlighting that Australia is rising wine gross sales into Taiwan, which was Australia’s fifth largest merchandise export market from 2021 to 2022.

Farrell additionally emphasised that Australia is eager on an settlement with the EU regardless that negotiations for a free commerce settlement between both parties collapsed.

“Australia needs an settlement with the European Union, however not at any value,” Farrell mentioned, mentioning that entry to European agricultural markets for Australian items have been one of many sticking factors.