Australia wants to diversify its trading relationship with China, however that doesn’t mean commerce flows will decelerate, Australian Trade 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 doesn’t mean trading any much less with China. But it does mean trading extra with the international locations with whom we have now free commerce agreements,” he added, citing these within the European Union bloc.
Currently, Australia has agreements with more than 20 countries, and is hoping to negotiate for extra.
Canberra can be in dialogue with its largest trading partner China to drop tariffs on Australian wine imports that have been introduced in March 2021. At the peak of diplomatic tensions in 2020 and 2021, China slapped import tariffs on several Australian exports — starting from wine and pink 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).
Adrian Brayne, a second-generation winemaker and proprietor of boutique wine label ‘Obsession Wines’, handles wine inventory within the processing constructing at Obsession Wines on November 24, 2020 in Tumbarumba, Australia.
Lisa Maree Williams | Getty Images News | Getty Images
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 due to meet Chinese President Xi Jinping. It would be the first go to to China by an Australian prime minister since 2016.
Asked about Australia’s trading ties with Taiwan, Farrell mentioned each events share a “superb trading relationship,” and that Taiwan will proceed to be “one in all [Australia’s] greatest clients below the Albanese authorities.”
“Our commerce shall be going up with Taiwan, not backwards,” he mentioned, highlighting that Australia is growing 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 despite the fact that negotiations for a free commerce settlement between both parties collapsed.
“Australia wants an settlement with the European Union, however not at any value,” Farrell mentioned, stating that entry to European agricultural markets for Australian items have been one of many sticking factors.