Coronavirus: Scott Morrison pledges no retreat ‘into protectionism’

Scott Morrison has attempted to defuse escalating tensions with China.

Scott Morrison addresses the National Press Club in Canberra on Tuesday. Picture: AAP

Scott Morrison has attempted to defuse escalating tensions with China by leaving it to the private sector to decide if the Asian superpower has become a riskier market to invest in, as he pledged Australia would remain an “outward-looking, open and sovereign trading economy”.

While the coronavirus pandemic has shed light on local industries’ dependence on China and triggered calls to bolster Australian manufacturing, the Prime Minister warned we would “not retreat into the downward spiral of protectionism”.

“To the contrary, we will continue to be part of global supply chains that can deliver the prosperity we rely on to create jobs, support incomes and build businesses. Our economic sovereignty will be achieved by ensuring our industries are highly competitive, resilient and able to succeed in a global market. Not by protectionism,” Mr Morrison told the National Press Club in Canberra.

“While a trading nation, we will never trade away our values or our future for short-term gain. With trade, alliance and other partners we will work to establish and maintain the balance needed for peace and stability in our region on which everyone’s prosperity depends.”

Mr Morrison conceded free-trade deals with the EU and the UK would be “very important” in the months ahead.

The Prime Minister refused to offer advice to businesses on whether it had become riskier to invest in China after Beijing imposed 80 per cent tariffs on Australian barley and banned beef from four abattoirs.

Trade Minister Simon Birmingham said earlier this month China’s trade sanctions would cause businesses to diversify and consider whether its risk profile had changed.

“Like any business, they have to weigh up the security of the markets in which they sell to and the risks that are associated with those and those risks will move from time to time,” Mr Morrison said.

“They’ll ebb and flow and we would like to see stable, reliable, dependable markets all the time for our products and services. But those are not decisions that governments make for businesses, be they primary producers and exporters or be they resources companies or industries or, indeed, service companies.”

Senator Birmingham said on Tuesday he still had not received a call back from his Chinese counterpart, Commerce Minister Zhong Shan, despite trying to reach out over China’s barley tariffs.

Mr Zhong claimed China had been “cautious and restrained in taking trade remedy measures” against Australia, launching one investigation compared to Australia’s 100.

“This isn’t about keeping a tally or about doing things in a tit for tat way,” Senator Birmingham told Sky News.

“Yes, Australia has an anti-dumping system that we use, and our decisions are open to appeal through the World Trade Organisation. China has not chosen to do that with any of our decisions to date, but it remains their right to do so.”