Australian Trade Minister Don Farrell is hopeful that the enduring prohibition on Australian live lobster imports by China will be lifted soon. This optimism stems from the planned visit of Chinese Premier Li Qiang to Australia, the first visit of its kind by a Chinese premier in seven years.
The lobster embargo is the final obstacle of various trade barriers set up by China in 2020, encompassing limitations on several Australian goods like beef, barley, coal, wood, and wine. These measures, costing Australian exporters around 20 billion Australian dollars yearly, were part of a broader diplomatic standstill. Tensions escalated between the two nations after Australia pushed for an independent inquiry into the origins and management of the COVID-19 pandemic by China.
Premier Li’s visit is considered a crucial point to bolster bilateral trade ties, with Farrell expressing confidence by stating, “I believe the visit this week will yield a positive outcome for lobster producers.” These comments were made during a meeting at Wirra Wirra Vineyard in South Australia, celebrating its 130th anniversary.
Having already lifted tariffs on Australian wine in March and restrictions on Australian beef in December 2023, China has shown signs of improving trade relations. Post the removal of wine tariffs, Australia has exported $86 million worth of wine to China, surpassing the total of the previous three years combined. This resurgence highlights the relevence of the Chinese market, which once represented nearly 40 percent of Australia’s wine exports.
Premier Li’s visit, accompanied by Chinese Commerce Minister Wang Wentao, is seen as an attempt to mend trade relations and address broader geopolitical concerns. Prime Minister Anthony Albanese, the first Australian leader to visit Beijing in seven years, emphasized the importance of normalization, citing that one in four Australian jobs relies on trade, with a substantial portion tied to China.
While improving economic ties, security tensions persist. Australia supports US efforts to counter China’s influence in the Asia-Pacific, leading to heightened military tensions. Albanese plans to discuss recent naval incidents in the South China and Yellow seas with Li, as well as advocate for the release of Australian blogger Yang Hengjun, currently detained in Beijing.
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