‘Free and fair’: Albanese puts trade at heart of APEC trip
The Prime Minister is caught between managing Australia’s longstanding US security relationship and maintaining economic ties with its biggest trading partner in China.
Anthony Albanese will join APEC leaders in putting “free and fair trade” at the heart of Asia-Pacific economic development, as Chinese President Xi Jinping scrambles for support in South America ahead of Donald Trump’s looming US-China trade war and global tariff crackdown.
The Prime Minister, who is expected to meet with new Indonesian President Prabowo Subianto in Lima on Friday (AEDT), is caught between managing Australia’s longstanding US security relationship and maintaining economic ties with its biggest trading partner in China.
Mr Xi, who will meet for the third and final time with Joe Biden as leaders in Peru on the weekend after the US President hosted Mr Trump at the White House, will likely hold talks with Mr Albanese at either the Asia-Pacific Economic Co-operation or G20 summits in Lima and Rio de Janeiro over the coming week.
The Chinese President will be lauded with formal state visits by the Peruvian and Brazilian governments, which have dramatically enhanced economic and diplomatic ties with Beijing in recent decades.
While Mr Trump finalises a list of US cabinet and administration appointments dominated by China hawks, Mr Xi is moving to shore up support from middle-tier countries and major economies before Mr Biden vacates the White House in January.
Mr Albanese’s meeting with Mr Prabowo was delayed after the Indonesian President flew into the US for meetings with Mr Biden and other high-level US officials.
Mr Prabowo, who has close ties to Mr Albanese and Defence Minister Richard Marles, was glowing in his praise of Mr Trump during a phone call between the pair shared on social media.
Mr Prabowo, like other world leaders, is actively seeking an in-person meeting with Mr Trump.
Under pressure from the Coalition to seek his own meeting, Mr Albanese has said an additional trip to Mr Trump’s Florida base following the G20 summit is not on the cards.
Speaking at an APEC business reception event on Friday (AEDT), Mr Albanese will position Australia’s natural resources and investment attractiveness as being at the heart of Labor’s Future Made in Australia. More than 90 Australian mining-related companies operate in Peru alone.
The Labor leader will also promote deep links between Australia and Latin America across education, mining, agriculture and tourism.
Mr Albanese, who is facing a domestic revolt from major miners including BHP over the government’s industrial relations laws, will tell South American business chiefs that “we’re a trusted partner with a track record of innovation”.
The APEC business event, hosted by Austrade Americas general manager Tony Davis and Australia’s ambassador to Peru Maree Ringland, includes representatives from BHP Minerals Americas, Ausenco, Orica, Fortescue Peru, Bechtel, Glencore Peru, Groundprobe, Australian Latin America Business Council and Australian Chamber of Commerce and Industry.
In his pitch to South American industry chiefs, Mr Albanese will say Australia has “weathered the storm better than most and is poised to take advantage of stronger conditions”.
The Prime Minister, who at home is facing flat economic growth and productivity, insolvency spikes, and explosions in public service numbers, will say: “Inflation and energy prices are coming down; manufacturing in Australia is on the rise; we have reached a record number of small businesses in our economy.”
His economic pitch to South American business leaders comes as new Treasury analysis shows that since the 2022 election, employment growth has outstripped each of the G7 economies. Treasury data says Australia’s percentage jobs growth since May 2022 was 7.7 per cent, ahead of the US (4.7 per cent), Canada (4.3 per cent), Italy (4.2 per cent), France (1.7 per cent), Germany (1.2 per cent), Britain (1.1 per cent) and Japan (1 per cent).
“Australian workers are second to none, and workforce participation is at a record high. All this makes Australia an enormously attractive investment destination. We’ve seen significant growth in private investment over the past two years. And it makes us a secure and trusted trading partner,” Mr Albanese will say.
“Looking ahead, Australia is taking advantage of our natural resources and our position in the fastest-growing region of the world to power a new generation of prosperity.
“Making major investments in renewable energy and green industries. Establishing a new front door for investors to make it easier to invest in Australia. Streamlining how investors and businesses interact with government, helping them navigate approvals processes and fast-track major projects. Our relationships with APEC economies are a vital ingredient of our success story.”
Ahead of the business speech, Mr Albanese will meet with Peruvian President Dina Boluarte, who is facing a wave of civil protest and anti-crime rallies during the APEC summit as her disapproval ratings hover around 95 per cent.
After flying into Lima with fiancee Jodie Haydon and Agriculture Minister Julie Collins, Mr Albanese said Australia “will always support” free and fair trade, in response to whether he would back a unified APEC agreement against the imposition of tariffs by an incoming Trump administration.
“We’re a trading nation. One in four of Australia’s jobs is trade dependent. And that will be a focus of the meetings that we will have over coming days.”
With Mr Trump flagging he would walk away from the Paris Agreement and other climate change funds backed by Mr Biden, Mr Albanese said it’s in the “world’s interests in terms of protection of our environment to continue to take action on climate change”.
“This meeting occurs at the same time as the Conference of the Parties (COP29) is occurring in Azerbaijan and, of course, overwhelmingly the major economies of the globe have committed to net zero,” he said.
“This is important for our environment, but it also represents economic opportunity with the transition that’s there. Australia is particularly well-positioned because of what we have under the earth, with rare earths and all the critical minerals that will be vital for the transition. But also because of the resources we have in the sky … we have the best solar resources in the world.”
Amid ongoing speculation driven by Trump loyalists about the future of Australian ambassador to the US Kevin Rudd in relation to disparaging historic comments made by the former prime minister about Mr Trump, The Australian understands senior government figures are confident he will remain in place and that there is no need for panic.
Mr Albanese said APEC’s 21 economies represent “some 75 per cent of Australia’s trade”.
“Over coming days and then at the G20 we’ll be discussing how trade is important for Australian jobs and for the Australian economy. This is about lifting Australia’s living standards by ensuring that we can continue to export to our region and to the world. There will be discussions about the World Trade Organisation and making sure that free and fair trade benefits the people of our region,” he said.
Australian prime ministers who have visited Peru include Malcolm Turnbull for the 2016 APEC summit, Mr Rudd for the 2008 APEC summit and Gough Whitlam, who travelled to Machu Picchu and Cusco on his final overseas prime ministerial trip in 1975.
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