From Tariffs to Trade Deals: Key Developments in International Trade

Australia-China Relations; Opposition leader Peter Dutton has assured voters that Australia's relationship with China will strengthen if the Coalition wins the next election. He emphasized the importance of mutual respect and highlighted achievements like the free-trade agreement. However, Dutton faces distrust from the Chinese diaspora due to the Coalition's previous aggressive stance. The current Albanese government has successfully restarted the rock lobster trade with China, benefiting Australia's $450 million industry.

US Trade Relations; House Speaker Mike Johnson expressed doubts about President Trump's plan to impose blanket tariffs on Mexico and Canada to combat fentanyl trafficking, despite a looming February 1 deadline. Johnson believes Trump will adopt a measured approach focused on specific unfair trade practices, particularly with China. Last year, the US traded over $700 billion with Canada and $775 billion with Mexico.

UK-EU Trade Dynamics; Lord Frost, the architect of the UK's trade deal with the EU, argued that accepting the EU's proposal for Britain to join the Pan-Euro-Mediterranean (Pem) Convention is not incompatible with Brexit "freedoms." The convention harmonizes rules of origin among 25 countries, facilitating tariff-free exports. While some Brexiteers fear it could undermine Brexit, Frost dismissed these concerns, stating that Pem membership was examined during initial negotiations and found not to breach Conservative red lines.

Sources:

The Australian

New York Post

The Times & The Sunday Times