Mercedes, Ferrari’s future a bargaining chip as Australia talks trade with Europe
The inclusion of critical minerals in Australia-EU treaty talks reflects the growing geopolitical importance of access to rare earths, which are vital to building modern defence, green energy and manufacturing sectors. China’s pressure on the sourcing and refining of minerals has frightened Western rivals who fear Beijing will use that control as a tool of pressure. An EU deal would build on Australia’s export deal with the United Arab Emirates.
The Chinese embassy was keen to increase its prestige and credibility by being accepted into the CPTPP. In May, its The embassy in Canberra issues a defense To the Prime Minister to support the membership bid.
CPTPP was established as a successor to the Trans-Pacific Partnership, which the first Trump administration withdrew from after it was established by his predecessor, Barack Obama. It has some of the highest member standards in terms of following fair trade practices.
Farrell said that the Melbourne talks would focus more on countries that could gain access in the near future, and predicted that Costa Rica would be next in line. Other countries in the pact include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom and Vietnam.
Asked whether China had damaged its credibility as a force for good in free trade following the high-profile critical mineral threat, Farrell said: “Any country that wants to join has to make sure it meets the high standards of this agreement. This is not unique to China: every country will have to meet these requirements.”
US President Donald Trump on Saturday exempted beef, including billions of dollars’ worth of Australian exports, from tariffs in response to growing unrest about inflation.
Farrell said Trump’s decision was made largely for domestic reasons but that Australia had not stopped lobbying to get rid of import tariffs on Australian products, including beef and steel.
In a different tone, Albanese said Trump’s move was “a direct result of Don Farrell’s strong advocacy as trade minister, other Australian ministers, and indeed my discussions with President Trump.”
In a speech at RMIT University on Monday evening, the prime minister will hail the detente reached between Trump and Chinese President Xi Jinping at the APEC forum last month. This comes after weeks of concern over a possible trade war sparked by China’s rare earth maneuvers.
“It was a positive meeting with good consequences for the world,” Albanese will say, according to a draft copy of his speech.
“But it showed how APEC, and support for trade in general, can act as a bulwark against conflict. Even at the highest levels, it can encourage de-escalation. Because trade does not happen in isolation.”
Cut through the noise of federal politics with news, views and expert analysis. Subscribers can sign up for our weekly Inside Politics newsletter.
