Australia, insurance, car, home, live, holidays

Trade Minister Don Farrell,pictured speaking at an event last month.Credit:Christopher Jue

“As we have discovered,overreliance on any single trading partner comes with significant risks,” he said in an address to the RMIT APEC study centre. “That’s why trade diversification is the central plank of the government’s trade policy strategy.”

China takes more Australian exports than Japan,the US and South Korea combined,Farrell said,and the government wanted to see the removal of China’s current trade blocks,which were being challenged through the World Trade Organisation.

“We are open to discussing possible off-ramps that result in a mutually agreed solution that is in Australia’s interests,” Farrell said.

Prime Minister Anthony Albanese ishoping for a meeting with Chinese President Xi Jinping at the Bali G20 summit this week after Albanesemet Chinese Premier Li Keqiang at an East Asia Summit leaders dinner in Phnom Penh on the weekend,whenthe Premier said China was willing to “meet Australia half way” and acknowledged a “difficult patch” in relations.

Moves to restore what Treasurer Jim Chalmers called a“more stable” relationship between Australia and China come as a number of free trade agreements near completion.

The agreements with the UK and India were signed by the previous government,but Farrell said in an interview on ABC’sRadio Nationalthat under our legal system they still needed to be approved by parliament.

“I’m expecting next week that the treaties committee will hand down its report and recommend the approval of that agreement,” he said of the UK deal.

“In anticipation of that,I’ve prepared all of the legislative changes that we need to – things like customs rules – in order to implement that agreement.”

Farrell expects parliament will approve the deal by the end of November and believes the UK parliament will do the same. The India free trade agreement was in a similar position,he said.

“I’d be very confident again by the end of November,that we’ve done everything we can to implement that India free trade agreement,” he said.

Also in the works is Australia’s free trade agreement with the European Union. Later this month Farrell will travel to Europe for the next round of formal negotiations,with the continental blockeen to get a deal finalised by early next year.

In his Monday speech,Farrell said that deal could be a “game changer”,giving Australian businesses better access to a market of nearly 450 million people,and also give consumers greater choice.

“A trade deal with the European Union that eliminates the 5 per cent import tariff on motor vehicles could result in savings of up to $2000 for an Australian family purchasing a VW Golf,” Farrell said. “A plumber could save up to $2600 on a VW Transporter Van.”

Cut through the noise of federal politics with news,views and expert analysis from Jacqueline Maley. Subscribers can sign up to our weeklyInside Politics newsletter here.

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