Released September 6, 2021, at 5:51 p.m.Updated September 6, 2021, at 5:59 p.m.
Australia is very opposed Chinese trade retaliation . This is what Australian Finance Minister Josh Friedenberg said Speech Presented Monday in Melbourne at the Australian National University. The minister promised not to reduce the impact of the Chinese decision, especially on barley and Australian wines, or to curb imports of banned tariffs or beef and coal.
Australia faces increasing strategic competition, which will further align our economic and security interests.
The Morrison government is taking drastic measures to increase our economic resilience, so business should do as well.
– Josh Frydenberg (oshJoshFrydenberg) September 6, 2021
Although China still accounts for almost a third of Australia’s trade, Beijing’s targeted products account for only 5.9% of Australia’s total exports (1.2% of GDP in 2019).
At the end of June each year, exports to China of Beijing-approved goods fell by about $ 5.4 billion. But “over the same period, exports of these goods to other parts of the world increased by $ 4.4 billion,” said Josh Friedenberg. For coal alone, sales to China fell by 30 million tonnes last year. The coal has found buyers in India, South Korea and Taiwan. “Our coal exports to other parts of the world have increased by about 28 million tonnes,” the minister said. The same goes for Australian barley, which saw exports increase by almost 70% in a year at the end of the second quarter. “Saudi Arabia represented more than 22% of our total barley exports, whereas it did not mention anything,” Josh Friedenberg explained a year ago. Meanwhile, winemakers moved to alternative markets such as the UK, Singapore, Germany and South Korea. Conclusion: Australia’s trade surplus for the first six months of the year was $ 54.2 billion Australian Foreign and Trade Department Statistics . This is an increase of 35% compared to the same period last year.
Aware of the strategic conflict looming with powerful Chinese neighbors, Australia wants to expand its other trade ties. “Our companies should always try to diversify their markets and not be overly dependent on one country,” advises Josh Friedberg.
The mainland island agreed to the broad lines of the free trade agreement with the United Kingdom. “Thanks to this agreement, 99% of Australian products, including wine, will enter the UK without obligation”, a comprehensive economic partnership with Indonesia or a Pacific partnership to help open new export markets for comprehensive and progressive trans small businesses. A free trade agreement is being negotiated with the European Union. According to Prime Minister Scott Morrison, he is set to meet with US President Joe Biden later this year along with two other US allies in the Indo-Pacific region, Indian and Japanese leaders.