Tasmanian business chiefs call for calm on US trade relations

TASMANIAN business, mining and rural leaders say there is no need to panic over trade ties with the United States in the wake of Donald Trump’s victory in the presidential election.

Tasmanian Minerals Council president Wayne Bould says Tasmania’s trade with the US favours America, with manufactured goods and tools and machinery being imported.

TASMANIAN business, mining and rural leaders say there is no need to panic over trade ties with the United States in the wake of Donald Trump’s victory in the presidential election.

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The US is Tasmania’s seventh largest trading partner, with trade worth $131 million in the year to September, a drop of $68 million or 34.3 per cent.

During the election campaign Mr Trump vowed to return to a more trade protectionist position that aims to preserve American manufacturing jobs.

The controversial Trans-Pacific Partnership deal is likely to be the first casualty of the new administration.

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The TPP had aimed to establish a more seamless trade and investment environment across 12 countries, including the US, by setting common rules and promoting transparent laws and regulations.

The world also faces the prospect of a trade war between Washington and Beijing, with Mr Trump threatening to slap a 45 per cent tariff on Chinese imports.

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said there could be significant trading impact if Mr Trump followed through with his electioneering comments.

“The US-Australia free trade agreement has resulted in significantly increased trade over the past eight years,” Mr Bailey said. In that period agriculture and seafood mace up $16 million and non ferrous metals $1 million, with “other” comprising $4 million.

But he said he remained optimistic Mr Trump would realise free trade agreements were important for both countries.

Tasmanian Chamber of Minerals and Energy chief executive Wayne Bould said Tasmania’s trade with the US favoured America, with manufactured goods and tools and machinery being imported.

“I don’t think there will be too much impact for our members but it’s probably a case of waiting it out and seeing what happens,” Mr Bould said.

Mr Bould said the most recent trade agreement between Australia and the US was slanted towards agriculture.

Tasmanian Farmers and Graziers Association acting chief executive Nick Steel said it was too early to tell how Mr Trump’s views on free trade agreements would affect Tasmanian farmers.

“While the TPP is a positive step for many sectors of the Australian agricultural community, particularly in the areas of beef and dairy, it was never going to have an immediate effect,” he said.

“Benefits would inevitably flow through to our state, but only in the longer term.”

Mr Steel said Tasmania already had well established economic relationships with TPP countries such as Japan, Malaysia and Vietnam.

Premier Will Hodgman said he would wait and see how discussions evolved.

“He has said that free trade deals are swayed against the interests of the US but often there is a difference between what is said in an election campaign and what eventually happens.”

Originally published as Tasmanian business chiefs call for calm on US trade relations