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Australia looks beyond China for trade amid diplomatic spat

Australia is actively seeking to diversify its export markets, Trade Minister Simon Birmingham said on Wednesday, as he noted measures taken by Beijing amid a diplomatic dispute would harm local farmers and Chinese consumers and producers.

The government wanted to strike free trade deals with Britain and the European Union this year, Birmingham told the National Press Club in Canberra, highlighting that the EU bloc was already Australia’s third-largest trading partner.

China is Australia’s largest trading partner, with two-way trade worth A$235 billion ($162 billion) last year.

One in five Australian jobs rely on trade, and Australia would seek to expand its options, Birmingham said. Canberra could see the potential for clean energy partnerships with Europe, and had agreements with Japan and South Korea for hydrogen exports.

China recently imposed dumping tariffs on Australian barley, suspended some beef imports and warned Chinese students and tourists it wasn’t safe to travel to Australia because of allegations of racism.

Birmingham said it was disappointing he had so far been unable to speak to his Chinese counterpart about the series of trade measures, which Chinese state media have linked to Australia’s lobbying for an international investigation into the source and spread of the coronavirus pandemic.

The trade partnership with China was built over many years based on pragmatism, but Australia wouldn’t “sell out our national interest”, he said.

“It isn’t a question of idealism. The truth is we believe in our exporters and the quality of their offerings – the reliability and integrity of our supply, and our competitiveness on price,” he said.

The minister said China’s barley tariffs would cost Australian farmers A$330 million in lost market access, but would potentially cost Chinese producers A$3.6 billion as beer makers were unable to source the Australian ingredients they needed.

He said Australia and China “share the same dynamic region of the world” and Canberra wanted a positive relationship.

Australia recently announced a new foreign investment “national security” test, and has blocked two Chinese investments in lithium this year.
Source: Reuters (Reporting by Kirsty Needham; Editing by Shri Navaratnam)

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