Australian exporters should be much less reliant on Chinese exporters, Foreign Minister Penny Wong says, as the 2 nations take a significant step in mending fractured commerce relations.
The federal authorities introduced on Tuesday it had paused its World Trade Organisation dispute in opposition to Beijing for imposing hefty tariffs on barley.
Exports had successfully been blocked from coming into China since 2020, because of a greater than 80 per cent tariff.
China will overview its tariffs over the following few months, and the WTO case will resume if no settlement is reached.
Farmers are hopeful the breakthrough within the commerce regardless of might have a domino impact on ongoing restrictions over different Australian exports.
With wine the following merchandise on the agenda, Senator Wong – who’s at the moment Acting Prime Minister – warned Australia couldn’t return to fully separating its financial and strategic relationship.
“The point is that we’re not going back to where we were 15 years ago,” she informed Channel 9.
“We know that we want a more stable relationship with China. But we know we’re not going to be able to continue to separate our economic and strategic relationship.
“Australian producers – whether barley or wine – are going to have to look to diversify in new markets.”
She mentioned if the present pathway labored for barley, it might be mirrored to wind again buying and selling impositions on wine.
“If it works … probably the next one I’d want to look at is wine,” she mentioned.
Nikki Palun from Australian Grape and Wine mentioned the trade was “very hopeful” {that a} negotiated end result on barley, moderately than direct WTO motion, would “bode well”.
Either approach, the trade had been working arduous over that previous few years to make up for the misplaced Chinese market – however say nothing might change it.
“We’ve been looking quite closely at the US, and we’ve had some initial success … and also markets like Japan, UK, also Korea and early indications into India as well,” she mentioned.
“And although we can absorb some of the wine here into the Australia domestic market, nothing can replace the Chinese market.”
China’s government vice minister of overseas affairs, Ma Zhaoxu, will maintain talks in Canberra with senior commerce officers throughout a go to to Australia on Wednesday.
Meanwhile, Trade Minister Don Farrell is anticipated to go to Beijing imminently. Prime Minister Anthony Albanese is able to settle for a proper invitation.
Overnight, Chinese Foreign Minister Wang Yi mentioned Beijing was “ready to work” with Australia.
“China and Australia are each other’s important trade and economic co-operation partners,” he mentioned.
“Our two economies have a lot to offer each other, and such co-operation is good for both sides. To improve and ensure a sound China-Australia relationship is not only in the fundamental interest of both peoples, but also conducive to peace and development in the Asia-Pacific and beyond.”
China stays Australia’s largest buying and selling associate, a relationship price $300 billion final yr.
Source: www.perthnow.com.au
