Dan Tehan eyes free-trade agreement with Israel

Trade Minister Dan Tehan has slated a free-trade deal with Israel as the ‘immediate next step’ after advancing negotiations to clinch deals with the EU and UK.

Trade Minister Dan Tehan. Picture: AAP

Trade Minister Dan Tehan has slated a free-trade deal with Israel as the “immediate next step” after advancing negotiations to clinch deals with the EU and UK, saying there are major opportunities in the areas of innovation, cyber ­security and defence.

Mr Tehan said he was awaiting the results of scoping studies on the benefits of free-trade deals with Israel and with the European Free Trade Association, which ­includes Iceland, Liechtenstein, Norway and Switzerland.

“One of the things I am very keen to do as minister is work very quickly this year on the scoping study with Israel, with the hope of looking to be able to move to something of more substance by the end of the year,” he said.

“The reason why I want to be proactive when it comes to Israel is that we’ve set a target with the UK FTA and the EU FTA to get them both concluded this year. And I’d like to be in a position, if we’re successful in that endeavour, to be able to move quickly then to begin negotiations on a free-trade agreement with Israel.”

Mr Tehan said the Department of Foreign Affairs and Trade would conduct the study while he would begin discussions with the Australia-Israel Chamber of Commerce “to make sure we can move quickly … Obviously there are the traditional market access ­approaches with regards to agriculture and then with the services sector, but there will also be other opportunities when it comes to ­Israel that I will be very keen to ­explore, including in innovation, cyber security and defence.”

DFAT also provided an update to industry on Tuesday after Australia requested World Trade ­Organisation dispute settlement consultations with China about the imposition of duties by Beijing on Australian barley.

“The government is considering next steps, including whether to make a formal request to establish a WTO panel,” Mr Tehan said. “Australia stands ready to continue engaging with China in good faith as we consider next steps.”

The elevation of new trade agree­ments with Israel and the EFTA comes as the government accelerates market diversification for exporters amid the escalating trade dispute with China.

Merchandise trade with Israel hit $1.1bn in 2019, while trade between Australia and EFTA countries hit $9.4bn. Investment from Switzerland is valued at $56bn.