Canberra (Commonwealth Union)_ Australia’s free trade deals with the United Kingdom and India might be concluded by the month end, expanding prospects for Australian firms and farmers even as connections with China appear to be improving. Following China’s ban on Australian barley and wine imports, Trade Minister Don Farrell stated in a Monday address that Australia has to diversify its trade connections so that the economy is not unduly dependent on a single trading partner.
In his address at the RMIT APEC study center, he said: “As we have discovered, overreliance on any single trading partner comes with significant risks. That’s why trade diversification is the central plank of the government’s trade policy strategy.” According to Farrell, China purchases more Australian products compared to the combined purchases of Japan, the United States, and South Korea, and the government wants China’s present trade barriers, which are being challenged through the World Trade Organization, to be removed. “We are open to discussing possible off-ramps that result in a mutually agreed solution that is in Australia’s interests,” he added.
Prime Minister Anthony Albanese is expected to meet Chinese President Xi Jinping this week at the G20 summit in Bali. Albanese had discussions with Chinese Premier Li Keqiang over the weekend at an East Asia Summit leaders’ dinner held in Phnom Penh, where the Premier said China was ready to meet Australia halfway and acknowledged a tough patch in relations. The steps to rebuilding what Australian Treasurer Jim Chalmers termed a more solid relationship with China come as a series of free trade accords reach their conclusion. The deals with the United Kingdom and India were inked by the former administration. However, according to Farrell’s interview, they still require parliamentary approval under the present legal system.
Farrell anticipates that the agreement will be approved by the end of November, and he believes that the British parliament will do the same. He stated that the India free trade pact is also in a similar status. Australia’s free trade pact with the European Union is also under progress. Farrell will fly to Europe this month for the next round of official discussions, and the continental bloc is eager to get an agreement finalized by early 2023. In his latest statement, Farrell stated that this agreement may be a game-changer by providing Australian enterprises with wider access to a market of roughly 450 million people and by offering consumers more options.
