Japan assured on China’s CPTPP trade group bid

Don Farrell has told his Japanese counterpart Canberra continues to be ‘like-minded’ with Tokyo over Beijing’s bid to join the CPTPP.

Chinese President Xi Jinping. Picture: Getty Images

Trade Minister Don Farrell has tried to snuff concerns that Canberra is moving to accommodate China’s bid to join the CPTPP trade group, telling his Japanese counterpart the government continues to be “like-minded” with Tokyo in its approach.

Beijing has signalled President Xi Jinping will press Anthony Albanese to support its application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership when the two leaders meet on the first trip to China by an Australian prime minister since 2016.

The Japanese government has been outspoken in its scepticism of China’s bid, noting Beijing’s track record of economic coercion against CPTPP members, including Japan, Australia and Canada.

Canberra has closely co-ordinated its position with Tokyo and Ottawa over applications to the trade group, which require the unanimous approval of all member states to be successful.

“We will continue to be like-minded,” said Senator Farrell in a meeting with Japan’s Economy Minister Yasutoshi Nishimura in Osaka. “I think it’s important to remember that the first overseas visit by the new prime minister, Prime Minister Albanese, was not to America, not to Europe – it was to Japan,” Mr Farrell said, speaking on the sidelines of a G7 trade ministers’ meeting.

“And I think that was a sign of the very strong relationship ­between our two countries, our two democracies.”

Chinese officials have lobbied Australia throughout the 18 months of the Albanese government to support its CPTPP bid, saying it would send a “positive signal” for the relationship.

It is expected to be one of Mr Xi’s top priorities when he meets with Mr Albanese next week. He is also expected to push for an easing of restrictions on Chinese investment into Australia.

In a recent high-level meeting ahead of Mr Albanese’s trip, a senior figure in Mr Xi’s government told Australian officials that, by Beijing’s analysis, it had already met “95 per cent” of the trade agreement’s terms.

“We suggest Australian friends take a more active role (supporting Beijing’s application),” the official said.

In background discussions, senior Australian government officials have dismissed the prospect of Canberra changing its position on China’s bid.

They note that Beijing is still to lift its unofficial black-listing of Australian live lobster and is still to follow through on a deal to remove its punishing tariff on Australian wine. Even if those restrictions end, they note that it will take years for China to establish a track record as a reliable trading partner.

A recent story in the South China Morning Post claimed Canberra was going to end its ­opposition to Beijing’s bid. The Hong Kong-based masthead has in recent years earned a reputation among Australian officials for unreliable reporting on China-Australia relations, but the report rattled government officials in Taipei, which also has applied to join the CPTPP trade group.

A spokeswoman for the Department of Foreign Affairs and Trade on Monday said that Australia’s position on China’s application for the group had been “consistent and has not changed”.

“Any potential CPTPP member must demonstrate that it can meet, implement and adhere to the rules and standards of the agreement, and have a demonstrated track record of complying with trade commitments,” the DFAT spokeswoman said.

Tokyo and Canberra, both US allies, have worked closely together throughout the Turnbull, Morrison and now Albanese governments as they deal with a more assertive China.

A surprise change in Australia’s position would be a huge blow to its relations with Japan, undermining the deep trust that has grown between the two countries during the Xi era.

Sources briefed on the discussions have told The Australian Mr Albanese has personally assured Japan’s Prime Minister Fumio Kishida that his government would continue to co-ordinate with Tokyo over China’s bid.