Prime Minister Anthony Albanese said Labor was best-equipped to increase trade links with China, India and South-East Asian neighbours.
“There are enormous opportunities for Australia to take advantage of where we are in the world,” Mr Albanese said on April 9.
“In ASEAN, building on the work that we’ve done, building up trade relationships ... continuing to build on our economic relationship with China, a relationship that we have repaired since we’ve been in government.”
The comments were a veiled dig at the Coalition, who were in government when China slapped sanctions on a swathe of Australian exports, hobbling industries such as barley, wine and seafood.
Australia is also looking to strengthen trade ties with the European Union to make up for lower demand.
Trade Minister Don Farrell was set to meet with EU counterpart Maros Sefcovic to resume free trade agreement negotiations. Talks broke down in late-2023 due to disagreements over market access for agricultural products.
“Australia’s position has been clear — we want a new trade agreement with the EU, but only one that gives Australia new, commercially meaningful market access, in particular for Australian agriculture,” Senator Farrell said.
Treasurer Jim Chalmers has been talking with the heads of regulators ASIC, APRA and the ACCC, and the Reserve Bank and Treasury.
“There is a lot of economic uncertainty right around the world, but Australia is better placed and better prepared than most to deal with it,” Dr Chalmers said.
Treasury has predicted Australia will avoid a recession and for GDP growth to accelerate next year, despite the tariff impact.
But IG markets analyst Tony Sycamore said the Australian economy was on track for a seismic hit as US country-specific tariffs, including a huge impost on China, took effect.
“At the risk of sounding dramatic, we are on the verge of seeing the two largest economic and military superpowers collide at high speed, with Australia caught squarely in the middle,” he said.
“If current lines hold, the fallout has the potential to dwarf the economic impact on the Australian economy felt during the GFC and COVID.”
– with AAP.
