MP says Belt and Road deal is ‘worthless’ without trade protection

Liberal MPs have urged the Morrison government to move quickly to rip up Victoria’s Belt and Road deal amid questions about its usefulness.

Liberal MPs want the Morrison government to move quickly to rip up Victoria’s Belt and Road Initiative deal, instead­ of delayin­g the decis­ion and further inflaming the dispute with China next year.

New laws giving the govern­ment the power to cancel Premier Daniel Andrews’ deal, which links the state to the Chinese Communist Par­ty’s controversial infrastruct­ure initiative, are set to pass the federal parliament on Monday.

After a horror week in Austral­ia’s relationship with China, several Liberal MPs told the Herald Sun it would make sense to follow through on Scott Morrison’s intention to cancel the agreement as soon as the laws were in place.

The government’s intention to kill the BRI deal was one of the CCP’s 14 grievances with Australia detailed in a bombshell list last month.

Asked on Thursday when the government would use the new powers, the Prime Minister said Foreign Affairs Minister Marise Payne would “make a determination in good time” and the deal would “go through the normal processes.

Victorian Premier Daniel Andrews continues to defend the deal.

He said he was not concerned about China’s reaction to the legislation, saying “Australia’s policies and plans and the rules that we make for our own country are made here in Australia and according to our needs and our interests”.

It came as Victorian Trade Minister Martin Pakula said he had raised concerns with China’s Melbourne consul-general Long Zhou about tariffs­ imposed on Australian exports, while Victorian offic­ials in China had also held meetings with their counterparts about the issue.

Victorian Trade Minister Martin Pakula said he had raised concerns about new tariffs imposed on Australian exports with China’s Consul-General in Melbourne, Long Zhou.

Mr Pakula told the Parliament’s public accounts and estimates committee on Thursday that he had also been in regular contact with his federal counterpart Simon Birmingham.

“I have spoken to Senator Birmingham on a couple of occasions and I have to say that he and I are in very strong alignment and I’m also happy to indicate that I’ve had detailed conversations with the Chinese Consul General to convey Victoria’s concerns,” he said.

Martin Pakula said he had raised concerns about new tariffs imposed on Australian exports. Picture: Andrew Henshaw

“Brett Stevens, the Victorian Commissioner in Shanghai, who was on the conversations has also had two direct meetings with the NDRC [National Development and Reform Commission] in China, again to convey Victoria’s concerns.”

China has slapped a string of crippling tariffs on $1.2bn worth of major Australian exports including barley and wine.

Victorian businesses export about $200m worth of wine to China — half the total export market for the state.

Mr Pakula, who said he supported moves to refer the issue to the World Trade Organisation, was forced to defend the state’s Belt and Road deal with China.

And he admitted it did not offer Victorian exporters immunity from increased tariffs.

Nationals MP Danny O’Brien questioned the usefulness of the memorandum of understanding between Victoria and China, signed in 2018, if it offered no trade protection.

“Given the MOU specifically talks about unimpeded trade and has a dispute mechanism that’s very basic, is it worth the paper that it is written on?” Mr O’Brien said.

Mr Pakula compared the agreement to the China Australian Free Trade Agreement.

“CHAFTA has pretty significant commentary in it in regards to unimpeded trade which would apparently not be being adhered to,” Mr Pakula said.

“I’m sure the Commonwealth would not be contemplating tearing CHAFTA up as a consequence of the fact that there are tariffs being imposed, apparently in contravention of it.”

The state opposition has committed to tearing up the Belt and Road agreement if elected to government.

Daniel Andrews has been criticised for joining the trillion-dollar Chinese infrastructure plan which will provide loans and investment in infrastructure projects from the Chinese government.

He has faced repeated calls to re-examine the deal amid criticism from Prime Minister Scott Morrison and his federal counterparts.

The deal could fall apart this week if federal government laws are passed that will give it the power to scrap agreements struck with foreign governments by states, local councils and universities.

Originally published as MP says Belt and Road deal is ‘worthless’ without trade protection