Senate debates

Thursday, 7 September 2023

Questions without Notice

Trade with China

2:06 pm

Photo of Glenn SterleGlenn Sterle (WA, Australian Labor Party) Share this | | Hansard source

My question is to the Minister for Trade and Tourism, Senator Farrell. Last month the Australian government announced that China would remove the 80.5% anti-dumping and countervailing duties on Australian barley. It has been reported that the Chinese duties on Australian barley effectively blocked exports to that market worth nearly $1 billion prior to the duties being imposed. This outcome has been welcomed by Australian grain producers and exporters, as China has historically been a very important export market for malting barley over many decades. Could the minister outline what action the Albanese government has taken to pave the way for the re-entry of Australian barley to the Chinese market?

2:07 pm

Photo of Don FarrellDon Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | | Hansard source

I thank Senator Sterle. He's a great Western Australian senator with a great interest in this issue for his constituents in Western Australia. The lifting of the 80.5% tariff on Australian barley exports last month by Chinese authorities has highlighted the benefits of the Albanese Labor government's approach to engaging in mature dialogue to stabilise the relationship with our largest trading partner. This year I've had three meetings with the Chinese commerce minister, Minister Wang Wentao, including travelling to Beijing in May to co-chair the first meeting between Australian and Chinese trade ministers since 2019. In that meeting we agreed to set up a dialogue under our existing free-trade agreement and other platforms to resolve outstanding trade issues. Bilateral engagement at all levels is intensifying, including this week, with the seventh Australia-China High Level Dialogue taking place. Last week, I, along with Minister Watt and Minister King, was pleased to witness the first Western Australian barley shipment to China in three years, departing from the Kwinana grain terminal—

Photo of Murray WattMurray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

Delivering for agriculture again.

Photo of Don FarrellDon Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | | Hansard source

Yes, Senator Watt, delivering for agriculture in the great state of Western Australia

An honourable member interjecting

I know you don't like it. I know you don't like them getting their barley back into China, but, under the Albanese Labor government's stewardship, Australian barley exporters now have an opportunity to re-enter the market much earlier than if we'd continued to prosecute our case through the World Trade Organization. This government is delivering positive outcomes for all of our farmers and regional Australia, especially Western Australia.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Sterle, first supplementary.

2:09 pm

Photo of Glenn SterleGlenn Sterle (WA, Australian Labor Party) Share this | | Hansard source

The removal of Chinese import duties on Australian barley is a welcome development, but trade impediments imposed by China are affecting the export of other Australia products, including wine, lobster and red meat. What is the government doing to address these remaining trade impediments, Minister?

Photo of Don FarrellDon Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | | Hansard source

I thank Senator Sterle for his first supplementary question. Progress is being made, but there's still some way to go until we see normal trade resume across the board with China. The Albanese government is working hard to remove remaining trade impediments, including those affecting wine, lobster, red meat and hay. On wine, I've been very clear, when engaging with my Chinese counterpart, that we expect a process similar to the process for barley to be followed to remove tariffs on wine. On lobster, red meat and hay, the government has been actively engaging, including at a technical level, to resolve impediments blocking Australian exports. So far, dialogue rather than bluster has proven effective. We believe that it's in both Australia's and China's interests for all trade impediments to be removed.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Sterle, second supplementary?

2:10 pm

Photo of Glenn SterleGlenn Sterle (WA, Australian Labor Party) Share this | | Hansard source

In addition to barley, there have been several positive trade developments this year with China, including the resumption of Australian exports of coal, cotton, copper ores and concentrates and the lifting of quarantine restrictions on timber logs. While these developments are welcome, can the government detail what work is being undertaken to support market diversification for all exporters?

2:11 pm

Photo of Don FarrellDon Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | | Hansard source

I thank Senator Sterle for his second supplementary question. A priority of the Albanese government has been to work to stabilise our relationship with China, by far our largest trading partner. But recent experience demonstrates that overreliance on any single trading partner comes with risks. The Albanese government has been encouraging Australian business to continue with their diversification plans and to take advantage of new and emerging markets. A key element of the government's trade diversification agenda is entering into new and comprehensive free trade agreements. The United Kingdom and Indian markets—

Opposition Senators:

Opposition senators interjecting

Photo of Don FarrellDon Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | | Hansard source

Well, you never got them through. You might have got the agreements, but you never got them through the parliament, and we did, and I know you hate that. But we now offer opportunities for Australian producers and traders, and we are in tough negotiations to— (Time expired)