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Australia charts a middle path in the Indo-Pacific
Australia charts a middle path in the Indo-Pacific

Observer

time5 days ago

  • Business
  • Observer

Australia charts a middle path in the Indo-Pacific

When Australian Prime Minister Anthony Albanese arrived in Beijing for his six-day official visit - his second since taking office - he wasn't seeking a breakthrough. He was offering predictability. After years of diplomatic friction, punitive tariffs, and frozen ministerial contact, the signal from Canberra was clear: Australia is open to engagement, but not at the expense of its strategic backbone. This measured tone marks a departure from both confrontation and capitulation. While no new doctrines were unveiled and no red lines erased, the visit itself restored what had been lost in recent years: a sense of stability in one of the Indo-Pacific's most consequential bilateral relationships. It also underscored a broader shift in how middle powers like Australia are navigating an increasingly bipolar world. Since Albanese assumed office in 2022, Beijing has gradually dismantled over A$20 billion worth of informal trade restrictions that once crippled key Australian exports. In the second quarter of 2024, exports to China surged more than 8,000 per cent year-on-year. Lobster shipments are projected to generate over A$700 million by year-end. Bilateral trade in goods and services hit A$325 billion in 2023-24, with China accounting for roughly one-third of Australia's total trade volume. These are not symbolic gestures - they are economic oxygen for sectors still recovering from the pandemic and the diplomatic freeze. Yet the recalibration is not confined to the ledger books. Australia remains firmly committed to its security alliance with the United States. Joint exercises such as the 2024 Talisman Sabre drills, which involved 19 countries and more than 35,000 military personnel, reflect Canberra's continuing role in regional deterrence. Australia's participation in AUKUS and its ongoing alignment with the Quad grouping further affirm that no strategic pivot is underway. Albanese's China visit unfolded in parallel with US-Australia naval operations in the South China Sea - a choreography that speaks volumes. What distinguishes this approach is not its neutrality but its dual engagement. Australia is refusing to choose between economic lifelines and strategic loyalties. It is instead constructing a flexible foreign policy scaffold - one that allows it to embrace China where interests align, while ring-fencing sectors and values it deems non-negotiable. This explains why, even amid revived trade talks and green cooperation agreements, Canberra declined Beijing's overture for artificial intelligence collaboration, citing national sovereignty and technology security concerns. For Southeast Asia, particularly countries like Singapore and Vietnam that have long balanced economic integration with China against security partnerships with the West, Australia's posture resonates. It validates a pragmatic style of diplomacy that avoids binary choices. In fact, Albanese's framing – 'cooperate where we can, disagree where we must' - is strikingly similar to Singapore's foreign policy ethos, which prizes stability, openness, and agency. The regional implications extend beyond symbolism. A more diplomatically agile Australia could bolster Asean's own strategic autonomy, providing space for small and middle powers to engage both Washington and Beijing without being pulled irreversibly toward one. This is especially significant as Asean itself wrestles with unity in response to contested maritime claims, competing infrastructure offers, and escalating tech decoupling. Equally important was what Albanese's delegation chose not to do. There was no public confrontation over Taiwan, no lecturing on the South China Sea, and no headline-grabbing statements about ideological divides. Sensitive issues were raised - but discreetly, behind closed doors. This quiet diplomacy reflects a growing recognition that performative posturing may win domestic headlines but seldom yields sustainable outcomes in Asia. Instead, the visit focused on future-facing cooperation. Agreements were signed on dryland farming, steel decarbonisation, and climate-smart agriculture - areas where Australia's resource capacity and China's manufacturing prowess are genuinely complementary. These efforts, while lacking the drama of geopolitical flashpoints, serve as stabilisers in a volatile region. They also provide a model for constructive engagement that doesn't require abandoning strategic vigilance. For Asia, the real lesson may be that managing complexity is more realistic than eliminating it. Albanese's visit to China did not break new ground, but it mapped a path that other states may choose to follow. At a time when ideological rigidity and strategic rivalry are resurgent, Australia's calibrated pragmatism may prove not just sustainable - but quietly influential. The writer is freelance columnist on international affairs.

Australia lifts biosecurity ban on US beef after decade-long review, aim to ease Trump tariffs
Australia lifts biosecurity ban on US beef after decade-long review, aim to ease Trump tariffs

West Australian

time7 days ago

  • Business
  • West Australian

Australia lifts biosecurity ban on US beef after decade-long review, aim to ease Trump tariffs

Australia has opened the door to more US beef imports by lifting biosecurity restrictions, as the government seeks ways to dampen the blow from Donald Trump's tariff regime. The federal government revealed the changes on Thursday while stressing that the decision follows a decade-long science-based review. 'The Albanese Labor government will never compromise on biosecurity,' Agriculture Minister Julie Collins said. 'Australia stands for open and fair trade - our cattle industry has significantly benefited from this. '(The department) is satisfied the strengthened control measures put in place by the US effectively manage biosecurity risks.' Although the US has been able to send beef to Australia since 2019, any beef raised in Canada or Mexico before being slaughtered and processed in the US was previously barred due to biosecurity concerns. One concern was that Mexico's livestock tracking system could inadvertently lead producers to import beef from parts of the continent where there were disease outbreaks. But the latest announcement will lift the ban on beef sourced from Canada or Mexico after the US introduced more robust movement controls in late 2024 and early 2025 allowing for improved identification and tracing throughout the supply chain. The change could be used as a bargaining chip as Australia continues to push for tariff exemptions from the US after the US president earlier this year demanded Canberra lift the beef import restrictions. Australia is the biggest exporter of beef to the US. According to Bendigo Bank's recent mid-year agriculture outlook, Aussie beef will continue to be on the menu in the US, where herd numbers are in decline due to drought and increased costs of agricultural inputs. Most Australian goods sent to the US currently face a 10 per cent tariff, while steel and aluminium products have been slapped with a 50 per cent tariff. Mr Trump has also threatened a tariff on pharmaceutical imports to the US, which is one of Australia's biggest exports to its ally. Although Prime Minister Anthony Albanese is yet to secure a face-to-face meeting with Mr Trump - after their first scheduled talks were scuppered by the conflict in the Middle East - Australia has largely avoided the brunt of the tariffs as most of its exports are only exposed to the baseline levy. But other aspects of the US-Australia relationship remain uncertain. The nuclear submarine deal between Australia, the US and the UK - under the AUKUS security alliance - could be in peril after the Pentagon launched a review to examine whether the agreement aligns with Mr Trump's 'US first' agenda. However, Mr Albanese has confirmed Australia made another scheduled payment as part of the deal to acquire US nuclear submarines, taking the total paid to $1.6 billion so far. 'It's about increasing ... their industrial capacity' to build the submarines, he told ABC television on Wednesday. Under the $368 billion program, Australia will buy at least three Virginia-class submarines from the US sometime in the early 2030s. A new class of nuclear submarines will be built in Adelaide to be delivered in the 2040s.

Australia paves way for US beef as Trump tariffs loom
Australia paves way for US beef as Trump tariffs loom

Perth Now

time7 days ago

  • Business
  • Perth Now

Australia paves way for US beef as Trump tariffs loom

Australia has opened the door to more US beef imports by lifting biosecurity restrictions, as the government seeks ways to dampen the blow from Donald Trump's tariff regime. The federal government revealed the changes on Thursday while stressing that the decision follows a decade-long science-based review. "The Albanese Labor government will never compromise on biosecurity," Agriculture Minister Julie Collins said. "Australia stands for open and fair trade - our cattle industry has significantly benefited from this. "(The department) is satisfied the strengthened control measures put in place by the US effectively manage biosecurity risks." Although the US has been able to send beef to Australia since 2019, any beef raised in Canada or Mexico before being slaughtered and processed in the US was previously barred due to biosecurity concerns. One concern was that Mexico's livestock tracking system could inadvertently lead producers to import beef from parts of the continent where there were disease outbreaks. But the latest announcement will lift the ban on beef sourced from Canada or Mexico after the US introduced more robust movement controls in late 2024 and early 2025 allowing for improved identification and tracing throughout the supply chain. The change could be used as a bargaining chip as Australia continues to push for tariff exemptions from the US after the US president earlier this year demanded Canberra lift the beef import restrictions. Australia is the biggest exporter of beef to the US. According to Bendigo Bank's recent mid-year agriculture outlook, Aussie beef will continue to be on the menu in the US, where herd numbers are in decline due to drought and increased costs of agricultural inputs. Most Australian goods sent to the US currently face a 10 per cent tariff, while steel and aluminium products have been slapped with a 50 per cent tariff. Mr Trump has also threatened a tariff on pharmaceutical imports to the US, which is one of Australia's biggest exports to its ally. Although Prime Minister Anthony Albanese is yet to secure a face-to-face meeting with Mr Trump - after their first scheduled talks were scuppered by the conflict in the Middle East - Australia has largely avoided the brunt of the tariffs as most of its exports are only exposed to the baseline levy. But other aspects of the US-Australia relationship remain uncertain. The nuclear submarine deal between Australia, the US and the UK - under the AUKUS security alliance - could be in peril after the Pentagon launched a review to examine whether the agreement aligns with Mr Trump's "US first" agenda. However, Mr Albanese has confirmed Australia made another scheduled payment as part of the deal to acquire US nuclear submarines, taking the total paid to $1.6 billion so far. "It's about increasing ... their industrial capacity" to build the submarines, he told ABC television on Wednesday. Under the $368 billion program, Australia will buy at least three Virginia-class submarines from the US sometime in the early 2030s. A new class of nuclear submarines will be built in Adelaide to be delivered in the 2040s.

Penny Wong avoids labelling Trump administration ‘chaotic'
Penny Wong avoids labelling Trump administration ‘chaotic'

Sky News AU

time22-07-2025

  • Politics
  • Sky News AU

Penny Wong avoids labelling Trump administration ‘chaotic'

Foreign Minister Penny Wong has carefully declined to confirm whether she views the US Trump administration as 'chaotic', amid shifting dynamics in the diplomatic relationship. It comes after the US announced it would review the AUKUS defence pact, and called on Australia to confirm what it would do in the event of a China-Taiwan conflict. When asked by Sky News if she would describe the Trump administration as chaotic — a characterisation made by government insiders — Ms Wong did not confirm. 'I'm not going to get engaged in that sort of commentary,' she said on Tuesday. Ms Wong has instead pointed pointing to the evolving nature of the US-Australia relationship and her confidence in managing it. ' I understand that this is a time of change, and I was pretty upfront about that … before and after the election. 'President Trump envisages a different role for America and the world, and that does involve a change.' However, Ms Wong said that Australians should have 'confidence' in the Albanese government's capacity to navigate global diplomacy. There have been tensions in the US-Australia alliance, exacerbated by past public criticisms of Donald Trump from Prime Minister Anthony Albanese and Ms Wong when in opposition. In 2021, Mr Albanese labelled Trump's conduct 'anti-democratic' and accused him of inciting violence. Ms Wong herself said Trump 'undermined American democracy' and was willing to 'trash alliances and partnerships for personal political interest'. Such rhetoric has been flagged by experts as potentially damaging to bilateral ties at a time when regional security challenges require close cooperation. Relations have also been complicated by the cancellation of a planned meeting between Mr Albanese and Mr Trump at the G7 summit. Mr Albanese recently downplayed concerns over the strength of the US-Australia alliance, saying he was 'not worried' about relations with President Donald Trump. Speaking at Sky News' Australia's Economic Outlook forum recently, he insisted that a meeting with President Trump would take place before the end of the year. 'Well of course we will have meetings, there will be a range of meetings between now and the end of the year with President Trump,' he said.

Sky News host Peta Credlin accuses Anthony Albanese of being 'scared of a face-off' with US President Donald Trump
Sky News host Peta Credlin accuses Anthony Albanese of being 'scared of a face-off' with US President Donald Trump

Sky News AU

time21-07-2025

  • Politics
  • Sky News AU

Sky News host Peta Credlin accuses Anthony Albanese of being 'scared of a face-off' with US President Donald Trump

Sky News host Peta Credlin has accused Anthony Albanese of being "scared of a face-off" with President Donald Trump, as the Prime Minister flags he will seek to secure talks with the United States leader on the sidelines of an upcoming leaders' summit. Mr Albanese has returned to Canberra ahead of the official opening of the 48th parliament this week following his six-day visit to China where met with President Xi Jinping. The Prime Minister has told The Australian he now has his sights set on nailing down a long-awaited face-to-face talk with President Trump, amid claims the US-Australia relationship is on rocky ground. Mr Albanese hinted a meeting with President Trump would likely take place an at upcoming leaders' forum - such as the Quad meeting in India later this year. "There'll be multiple meetings between now and the end of the year. Australia and the US are both members of a range of international gatherings," Mr Albanese told the publication. During her editorial on Monday night, Credlin savaged the idea of a meeting with the US President taking place on the periphery of an international event rather than in Washington DC. "The PM is still insisting that he'll meet Donald Trump on the sidelines of some other meeting rather than meet him at the White House," the Sky News host said. "So after, what, a six-day visit to China he's hoping for ... six minutes in a corridor or in the bathroom at some international talk fest? "Honestly, that shows a weak PM who's scared of a face-off with a US President accustomed to speaking his mind. "A PM who hopes if he does it this way, he perhaps can avoid media scrutiny of what's said in the room." Mr Albanese is set to travel to various high-level summits in 2025 including the UN General Assembly in New York in September, which has been perceived as another opportunity for the Prime Minister to meet with President Trump. The two leaders had planned to hold talks at the G7 Summit in Canada in June, but the President abruptly left the forum to return to Washington amid escalating tensions in the Middle East. Mr Albanese copped heat for his move to prioritise a second official visit to China before he books in a face-to-face meeting with President Trump in the United States. Former home affairs boss Mike Pezzullo recently suggested Mr Albanese should have even cut his China visit short to fly past the US to see the President on his journey back to Australia. Mr Albanese was also accused of indulging in the optics of his China trip, which included visiting a panda breeding centre and hiking The Great Wall, rather than pressing President Xi on more serious foreign policy issues. However, the Prime Minister told The Australian his decision to walk The Great Wall of China and tour a panda centre came down to him wanting to show "respect". Regarding his US counterpart, Mr Albanese said he would demonstrate his respect in other ways such as by "engaging in a clear, forward manner, saying what we can do, what we can't do". "It's the way that I engage and build relationships," he said. The Prime Minister stressed the United States is Australia's "most important alliance", but noted the Trump administration's "America First" policy has led to a different position on tariffs. "So part of engaging is recognising that and dealing with it in our national interest, in the best way we can," Mr Albanese said. However, Credlin claimed the issues around the Australia-US alliance have been triggered by the Albanese government's "obvious discomfort with the Trump administration". "Plainly, Anthony Albanese, full of his Beijing bravado, thinks he can remake the US alliance despite what the ANZUS Treaty might say on the matter," she said. The Sky News host continued: "If that includes that we can't increase defence spending much beyond two per cent of GDP, well then our alliance with the US is on life-support at best." Earlier this year, the United States called on Australia to boost defence spending to 3.5 per cent of GDP, with the level currently sitting at two per cent. In 1951, Australia also signed the ANZUS Treaty, a security pact with New Zealand and the United States, which focuses on the Pacific region. In terms of the AUKUS submarine deal, there are concerns the pact could be under threat as it undergoes a under review by the Pentagon. Credlin called on Liberal Party to step up and press the government on national security, as well as other domestic issues including the childcare crisis and debate on net zero. "The best way for the Libs to regain their standing with voters is for them to give the Australian people that they're not getting from the current government," she said.

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