This was published 3 years ago
PM warns economic challenges lie ahead as China's wine tariffs hit
By Shane Wright
Prime Minister Scott Morrison has warned of more economic challenges ahead, saying the age of certainty enjoyed before the coronavirus pandemic was an aberration with more disruption caused by global competition likely to feature in coming years.
As Australia finds itself mired in a growing trade dispute with China, the Prime Minister used an address to the NSW Liberal Party on Saturday to argue his government would carefully engage with international problems based on the national interest and local values.
Prime Minister Scott Morrison says this year marks the end of certainty with more challenges ahead in the wake of the coronavirus pandemic.Credit: Joe Armao
China slapped tariffs of up to 200 per cent on Australian wine this week as part of a growing dispute that threatens to touch upon up to $20 billion worth of exports.
The move followed ongoing diplomatic disputes over China's coronavirus response, human rights breaches and territorial expansion and culminated last week when the Chinese embassy issued a list of 14 grievances with Australia to Nine News, The Sydney Morning Herald and The Age.
Mr Morrison, who did not directly reference the China dispute in his speech, said even though Australia had overcome the coronavirus recession better than almost every other country in the world there were still major challenges ahead.
He said between the fall of the Berlin Wall and the coronavirus pandemic, the world had enjoyed relative certainty. But that certainty was now likely at an end.
"There are great uncertainties out there. We are a resilient people and we need to be to meet those challenges which are ahead and which are even present now," he said.
"We are now seeing and have seen for some time now the return to the uncertainties that Australia has always had to deal with.
"Global competition and tensions we see again. Strains on our rules-based order around the world.
"All of this requires the careful engagement of Australia consistent with our values and our national interest. But this is not new for Australia."
Mr Morrison said shocks such as the creation of the European common market, the oil crisis of the 1970s and ongoing resource price booms and busts had been the norm for Australia's economic development.
The nation's wine exporters have been stung by Chinese tariffs of up to 200 per cent as part of an ongoing dispute.Credit: Istock
Australia had even managed regional conflicts such as the Vietnam War.
He said the government, since taking power in 2013, had driven a diversification strategy through a range of trade agreements that covered 70 per cent of the nation's export markets.
"There has not been a government more committed to opening up and developing trade opportunities than the government elected in 2013," he said.
"We will remain an outward-looking, open and trading sovereign economy in the world."
Despite the trade deals, Australia remains heavily reliant on China. In October, 42 per cent of the value of the nation's goods exports went to China with the next biggest market, Japan, taking 11 per cent.
Senior Labor frontbencher Tony Burke, who served as agriculture minister in the first Rudd government, said the nation had to broaden its trading markets.
"It's the case for any industry that you never want to be too beholden to a single market. And it's the government's job to help industry spread its risk," he said.
"Now the government clearly doesn't have a plan to do that. If you don't have a plan to spread your risk then one country is always able to have a deeply significant impact on jobs in Australia."