Anthony Albanese reveals he raised issue of ‘free and fair’ trade in first call with Donald Trump

Anthony Albanese says he is confident Australia can help prevent a US-China trade war under the Trump administration following his first call with the president-elect.

Australia is well-placed to play a backroom role in preventing a trade war between China and the United States when president-elect Donald Trump takes office after promising to hit Beijing with huge tariffs, Anthony Albanese says.

The Prime Minister said Australia had long dealt with the strategic competition between the US and China, revealing he had already talked about the importance of “free and fair” trade on his first phone call with Mr Trump last week.

“We think that we can play a role as a middle power,” Mr Albanese told ABC radio on Wednesday.

“Australia is … trusted, our word matters.”

Mr Albanese said the US was an important ally and China a major trading partner, confirming he raised the issue of trade with Mr Trump in the wake of his presidential election victory.

Prime Minister Anthony Albanese says there is no need for him to make a detour and visit Donald Trump after the G20. Picture: NewsWire /Â Nikki Davis Jones.

“I pointed out that … United States has a trade surplus with Australia, so it’s in the United States interest to trade fairly with Australia,” he said.

“But it’s also obviously in Australia’s interest the United States is a major investor here in Australia.

“That investment creates economic activity, creates jobs.”

Treasury modelling produced for the Albanese Government found Mr Trump’s planned tariffs would have a modest direct impact on Australia’s economy, but confirmed the country would not be immune from the flow-on effects of a trade war between the US and China.

Mr Albanese will travel Lima in Peru for the Asia-Pacific Economic Cooperation (APEC) leaders summit on Wednesday where he said trade would be a major feature of international talks, before continuing to Rio de Janeiro in Brazil for the G20 where outgoing US President Joe Biden and China’s President Xi Jinping are both expected to attend.

On Tuesday the Mr Albanese dismissed the Coalition’s calls that he try to visit Mr Trump after meetings with world leaders in South America, confirming the US president-elect believes he and the Prime Minister will have a “perfect friendship”.

The PM rejected the argument from opposition foreign affairs spokesman Simon Birmingham that he should be trying to meet with Mr Trump at the end of a G20 summit to safeguard Australian interests.

Opposition foreign affairs spokesman says Anthony Albanese should seek a meeting with Donald Trump. Picture: NewsWire / Martin Ollman

Mr Albanese does not have any formal one-on-one meetings with either leader confirmed at this stage, but is expected to hold high-level talks with the leaders of Indonesia, Singapore and Peru during the summits.

But before he had departed, Mr Birmingham had laid out what he considered would be an “early but significant test” for Mr Albanese – that he tack on a visit to Mr Trump in the US to ensure Australia avoids any universal tariffs that may be imposed under his presidency.

“There’s an opportunity here for Anthony Albanese to seek that meeting, to do so early, and would clearly be in Australia’s interests for him to show that initiative and that drive,” Mr Birmingham said.

However Mr Albanese said such a trip was not on the cards, noting the Coalition had inconsistently criticised him for either travelling too much or too little.

The PM said his first conversation with Mr Trump last week was “terrific” and “really productive”.

“He described the relationship we would have a ‘perfect friendship’ and I am very confident the relationship between Australia and United States will continue to be very strong,” Mr Albanese said.

Mr Trump’s election victory is expected to cast a long shadow over the APEC and G20 summits, with world leaders hoping to avoid the US imposing universal tariffs as the Republican had campaigned on.

The global response to climate change will also be under scrutiny as it is expected Mr Trump will once again withdraw the US from the Paris Agreement on reducing emissions.

Ahead of his travel to South America, Mr Albanese said the two summits came at an “important time” as countries tackled inflation.

“We are working at home and with international partners to put downward pressure on inflation and help safeguard Australia’s economy against global challenges, as well as building the new economic links that will sustain a Future Made in Australia,” he said.

Originally published as Anthony Albanese reveals he raised issue of ‘free and fair’ trade in first call with Donald Trump