US relationship can thrive under Joe Biden

The US-Australia trade relationship has the potential ‘to go another level’, according to former Dow Chemicals boss Andrew Liveris.

Andrew Liveris said Australia needed to reduce its dependence on its trade with China and diversify its economy, including encouraging advanced manufacturingin certain sectors. Picture: supplied

The US-Australia trade relationship has the potential “to go another level” which could help diversify Australia’s dependence on selling commodities to China, according to former Dow Chemicals boss Andrew Liveris.

In an interview with The Australian, Mr Liveris said if Democrat leader Joe Biden won the presidency, Australia had the potential to develop other industry sectors, showing its credentials in areas like renewable energy in promoting US-Australia business partnerships.

Despite the tight race, Mr Biden was last night close to winning the presidential race with just six Electoral College votes needed to hit the 270 target.

“We are going to find in the US under a Biden administration, inclusion in US supply chains whether it be in pharmaceuticals, whether it be in advanced minerals and batteries, whether it be in green energy, will become a new opportunity,” Mr Liveris said.

“With a US green energy agenda, a renewables agenda- and an Australian innovation engine, we could make partnerships occur with investment both ways.”

He said there were other areas of more Australian industry co-operation with the US including in pharmaceuticals and medical technology, space and defence.

He said Australia had already begun talking to the US around more co-operation on the development of critical minerals and rare earths.

“We should be all over (it), under a Biden administration, pointing to areas where we can create win-win investments in both countries.

“We should make it a national priority. America’s partner of first choice should be Australia in those areas.”

His comments came as a string of business leaders took stock of the wild 48 hours including Telstra, Brambles and Toll chairman John Mullen lashed out at President Trump’s claim of voter fraud amid an inconclusive result.

“Our elected leaders should behave in a manner befitting a modern democracy and I lament the state that politics has got into. I really shake my head,” Mr Mullen told The Australian.

“The greatest democracy in the world should be setting an example for everyone else.

“We preach to third world countries how they should run their systems and behave, and we send electoral observers, and we are behaving appallingly ourselves.

“Whether you like Trump or you don’t, whether you like Biden or you don’t, they deserve respect and they should behave as befits the leader of a nation. And it doesn’t seem to be that way. The personal invective and behaviour that flies around is not befitting.”

Mr Mullen said he was worried about further economic volatility if US political instability continues.

“Instability is the enemy of businesses and most enterprises need to know what they are dealing with. At least when you know what the playing field is you can get on with life.

“Instability is bad, it means people don’t invest, they hold back making decisions and that’s not good for a country.”

NAB chief executive Ross McEwan said Australia’s business links with the US would continue regardless of the outcome of the poll.

“We’ve had great business relationships with the US for decades. Businesses trading with the US will continue to do so, and I’m not convinced business will change dramatically for importers and exporters.”

Flight Centre managing director Graham Turner said it was impossible not to follow the US election.

“I haven’t seen anything for the last few hours, but with the way it was trending I would be surprised if Biden didn’t sneak in.

“It’s obviously going to be quite close, but Biden looks like he is sneaking in.

“I am certainly not a Trump supporter but I want the thing to be finished and decided one way or the other so we can get on with business,” said Mr Turner, adding that the US accounts for about 25 per cent of Flight Centre’s global business.

Mr Liveris said the US was not dependent on its trade with China but was dependent on Chinese investment in its government bonds. He said both Australia and the US had a mutual interest in “weaning off that dependency.”

Mr Liveris said he did not expect Mr Biden would be as “rude and aggressive” towards China including attacking it by tweets, but he would still be tough on trade with China and aware of the need to reduce dependency on Chinese funding of its debt.

He said he expected a Biden administration would adopt more “top down” strategies for tackling unemployment and boosting the economy including local infrastructure programs, a rebuilding program for schools and colleges and possibly affordable housing.

He said a Biden administration could be expected to have more of a “regulatory agenda”, more emphasis on infrastructure and having close federal-state relationships.

Mr Liveris, who briefly served on President Trump’s manufacturing advisory council, said he did not think Australia would have trade issues with a Biden administration.

“The reality is that America has a trade surplus with us so we are never going to be a trade issue,” he said.

“They need us in this part of the world to be a bit of a check and balance against the ascendancy of China. How one plays that needs smart diplomacy and smart foreign partnerships.

“Under Biden there will be a lot more politeness and respect for Allies and their opinions.”

Mr Liveris said Australia needed to reduce its dependence on its trade with China and diversify its economy, including encouraging advanced manufacturingin certain sectors.

ADDITIONAL REPORTING: LISA ALLEN