Pollies trade blows over tariffs and China agreement

Victorian Liberal MP Tim Smith has attacked the Andrews government for pressing ahead with its agreement with China.

China is Australia’s biggest trading partner, and Victoria’s total share of Chinese investment to Australia is forecast to increase from 8 per cent to 20 per cent by 2026, according to the Victorian government’s China strategy.

Victorian Liberal MP Tim Smith has attacked the Andrews government for pressing ahead with its belt and road agreement with China after the Asian powerhouse suspended beef imports from four Australian abattoirs and threatened tariffs on Australian barley.

The Andrews government became the first jurisdiction in Australia to sign up to a controversial agreement last October, splitting ranks with the Commonwealth.

The deal has attracted fresh scrutiny as trade tensions flare between Australia and China over the Morrison government pushing for a global independent probe into the origins of COVID-19 at the World Health Assembly.

Two weeks after the Chinese ambassador to Australia threatened a boycott of Australian products and industries in response to the inquiry, China has suspended beef exports from four Queensland abattoirs and has threatened an 80 per cent tariff on Australian barley, which if implemented would cruel Australian barley sales to China.

“The Prime Minister is a million per cent right on this,” Mr Smith told The Australian about the Morrison government standing firm on its push for a coronavirus inquiry.

“Having a commercial and economic relationship with China is of course important and no one would be stupid to suggest otherwise in mainstream debate but China is not a democracy, it’s that simple.

“You can’t be bullied ... we shouldn’t as a country be treated like this and we really do need to stand up for a rules-based international order, which is based on mutual interests and mutual respect.”

Mr Smith is Victoria’s opposition planning spokesman and worked in Malcolm Turnbull’s office while he was federal opposition leader, and was elected as the youngest Mayor of Stonnington in 2009.

In regard to pressing ahead with belt and road, Mr Smith tweeted: “the Andrews Labor government has an unhealthy and sycophantic relationship with the Chinese Communist Party” and “Chairman Dan signed a secret, dodgy agreement”.

The Andrews Labor Government has an unhealthy and sycophantic relationship with the Chinese Communist Party. Labor’s Belt and Road deal against @dfat advice undermines 🇦🇺 national security. https://t.co/fuTJzHLyCn

— Tim Smith MP (@TimSmithMP) May 13, 2020

At the time of signing, the Andrews government said the agreement would “help fast track co-operation in the key areas of infrastructure, innovation, ageing, and trade development providing more opportunities for Victorian companies and more Victorian jobs”.

“Victoria is proud of its longstanding and valued partnership with China and this new Framework Agreement helps take it to the next level,” Mr Andrews said at the time of signing.

“We don’t see China as our good customers, we see them as our good friends.”

China is Australia’s biggest trading partner, and Victoria’s total share of Chinese investment to Australia is forecast to increase from 8 per cent to 20 per cent by 2026, according to the Victorian government’s China strategy.

Meanwhile, Victoria’s exports to China are forecast to increase by more than $5bn over the next 10 years.

Victorian Treasurer Tim Pallas defended the belt and road deal as he faced questions at the Victorian parliament’s Public Accounts and Estimates Committee coronavirus inquiry on Wednesday.

Mr Pallas said Victoria’s relationship with China “benefits all Victorians, from farmers exporting their produce to our universities and beyond” and the belt and road agreement should proceed, despite the federal government’s push for an inquiry.

“Of course there does need to be an inquiry into this pandemic event, but I think the idea of vilification of any single nation in this context, I think, is dangerous, damaging and probably irresponsible in many respects,” Mr Pallas said

“I mean, perhaps inelegant interventions have essentially seen farmers lose trade around barley, and meatworks losing work around meat.

“We need to basically be balanced and measured in terms of our engagement with a valuable and long-term trading partner, and certainly this government has no intention of seeking to vilify a government because of its system of government.”