Australian trade minister ‘optimistic’ about thaw in China ties, but stands firm on WTO disputes
- Don Farrell says the two sides have made progress on lobster imports, but Canberra unlikely to walk away from wine and barley tariff cases
- ‘I think one of the lessons of the China experience is that we need to diversify our trading relationship,’ he tells ABC in new interview
China and Australia have started a slow repair of trade relations, but Canberra is unlikely to walk away from its disputes with Beijing at the World Trade Organization (WTO), Australian trade minister Don Farrell said.
“We’ve started the thaw in the relationship, as they would describe it. I’m optimistic that progress is going to be made in respect of all of the issues that are now standing between us,” Farrell said in an interview with public broadcaster ABC on Sunday.
Bilateral relations plunged under former prime minister Scott Morrison as tensions over the coronavirus pandemic, human rights and security issues prompted China to unofficially suspend imports of several Australian products.
But the two sides increased their interactions and sought to improve ties after Anthony Albanese became Australia’s prime minister last year and Beijing worked to revive its staggering economy and reconnect with the rest of the world.
Farrell and his Chinese counterpart Wang Wentao held a virtual meeting on Monday, marking the first trade talks between the two countries in more than two years. Both sides agreed to step up dialogues as a path towards resumption of trade, and Farrell also accepted Wang’s invitation to visit Beijing soon.
Despite the recent positive signs in trade, Farrell cautioned that fixing the relationship would take time.
These problems didn’t occur overnight and, unfortunately, they’re not going to be solved overnight
“These problems didn’t occur overnight and, unfortunately, they’re not going to be solved overnight. My job is to make as much progress on as many fronts, to try and get as many of these trade impediments resolved,” he said.
Farrell said Australia would stand firm on its complaints over the two WTO cases while also trying to resolve its issues with Beijing via dialogue.
“We’re not going to withdraw those applications. But right from the day I got this job eight months ago, I said we would much prefer to resolve all of our outstanding trade disputes by discussion and dialogue, and that’s the message I gave to my counterpart this week,” he said.
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China’s Ministry of Commerce said on Thursday that Beijing was ready to communicate with Canberra on “technical issues” in bilateral trade to seek solutions that would benefit both sides.
In 2022, the value of bilateral trade between China and Australia stood at US$220 billion.
Despite the positive signs in trade relations, Australia must diversify from China to cut its reliance on the world’s second-largest economy, Farrell said.
“I think one of the lessons of the China experience is that we need to diversify our trading relationship. That’s why we’ve entered into new agreements with India, that’s why we’ve entered into new agreements with the United Kingdom and that’s why we’re deep in discussions with the European Union,” he said.
