Australia’s trade minister visits China to lobby for ‘full’ restoration of trade

By Michelle Toh, CNN

Australia’s trade chief has arrived in China to lobby for the removal of curbs from its top trading partner, three years after relations soured when the previous administration in Canberra called for an investigation into the origins of Covid-19.

Trade Minister Don Farrell arrived in Beijing on Thursday for a three-day visit to meet with his counterpart, Wang Wentao, according to the Chinese commerce ministry. It’s the first visit to China by an Australian trade minister since 2019.

In a statement, the minister said he would work to resolve “outstanding” blocks on the flow of goods between the two countries.

“I will be advocating strongly for the full resumption of unimpeded Australian exports to China — for all sectors — to the benefit of both countries,” he added.

The visit underscores how Australia is seeking to improve ties with Beijing after a change of leadership in Canberra last year and as the world’s second largest economy reopens.

China is Australia’s largest trading partner, with the exchange of goods between the two countries worth 287 billion Australian dollars ($192 billion) in 2022, according to Australian government statistics. Australia plays a vital role to China as a key supplier of commodities such as iron ore.

But the two sides locked horns in the spring of 2020 as Canberra, led by then-Prime Minister Scott Morrison, called for an international investigation into the roots of Covid-19, which angered Beijing.

Since then, China has curbed imports of a wide range of Australian products, including beef, barley, wine and coal through heavy taxes or other barriers. As a result, Australian exports to China fell by 13% in 2022, compared to the previous year, according to Chinese customs data.

But relations began to improve after Anthony Albanese became prime minister last May, leading to “the resumption of coal, cotton, and copper trade,” noted Farrell.

Data shows a big upswing. In March, Australia’s exports to China hit a record high, with the value of shipments reaching 19 billion Australian dollars ($12.8 billion).

Challenges remain

Last month, Australia’s foreign ministry pointed to restrictions on the sale of Australian barley, saying that “since 2020, China’s 80.5% duties on Australian barley have effectively blocked exports to that market.”

Annual barley sales to China had been worth 916 million Australian dollars, or $613 million, before the dispute, the ministry said.

Canbera has challenged the duties, lodging a complaint with the World Trade Organization in 2020.

But last month, in a gesture of goodwill, Australia agreed to suspend its case, saying China had agreed to an expedited review of the measures following talks between the two sides.

“If the duties are not lifted at the end of the review period, Australia will resume the dispute in the WTO,” Australian Foreign Minister Penny Wong said.

Canberra is also continuing to press for the release of Australian TV anchor Cheng Lei, who marked 1,000 days in Chinese detention this week after being taken into custody on espionage charges. Authorities have not publicly detailed the allegations against her.

China has publicly expressed its desire to move forward. At a news briefing Thursday, its foreign ministry said the country “stands ready to work together with Australia.”

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— CNN’s Mengchen Zhang contributed to this report.