PM’s crucial moment on G7 sidelines as meets with Trump to discuss AUKUS, tariffs
Anthony Albanese will hold talks with Donald Trump at the G7 summit in a high-stakes meeting discussing the fate of AUKUS and why Australian companies should be exempt from US tariffs.
Anthony Albanese will hold talks with Donald Trump at the G7 summit in a high-stakes meeting discussing the fate of the $368bn AUKUS deal and why Australian companies should be exempt from the US President’s tariffs.
The Prime Minister will fly into Calgary on Monday (AEST) and travel to the G7 in Kananaskis, where he will hold a bilateral meeting with Canadian Prime Minister and summit host Mark Carney.
Mr Carney, who met with British Prime Minister Keir Starmer on Sunday before other G7 leaders and invited guests arrived in Alberta, has decided to ditch the summit communique due to concerns about any public disputes with Mr Trump.
Mr Albanese on Sunday confirmed he would have his first in-person meeting with Mr Trump early on Wednesday morning (AEST), having spoken with the US President by phone three times since his return to the White House. The Labor leader, 62, made the announcement at Amazon’s headquarter in Seattle, several hundred metres from where tens of thousands of protesters gathered to rally against Mr Trump’s immigration policies.
With AUKUS, defence, trade and the economy set to dominate talks between Mr Albanese and Mr Trump, the Labor leader’s sit-down with Mr Carney will be their first formal meeting since catching up at the inauguration of Pope Leo in Rome. Mr Albanese and Mr Carney have forged a close relationship after speaking multiple times on the phone before and since their respective election victories.
As Sir Keir reignited the prospect of a UK-Canada trade deal and rejected Mr Trump’s provocative claim that Canada was the 51st US state, Mr Albanese is preparing to enhance collaboration with Mr Carney on defence industry, climate change and critical minerals.
The pair will also discuss the unfolding conflict in the Middle East, trade wars and deeper co-operation on natural disaster response. As G7 leaders promised to push back against Mr Trump, French President Emmanuel Macron was due to visit the key strategic northern Arctic country of Greenland on his way to Canada.
The G7 summit, which brings the leaders of the most powerful Western democracies together under the backdrop of wars in the Middle East and Ukraine, will be dominated by Mr Trump’s trade tariffs and the leaders’ collective response to the widening conflict between Israel and Iran.
Mr Trump is scheduled to arrive in Calgary at 9pm local time on Sunday (Monday AEDT). He is due to have his first bilateral meeting the following morning and be involved in the official welcome ceremony with Mr Carney before participating in the G7 “family photo”.
The next day Mr Trump will have a working breakfast followed by two bilateral meetings. After his last bilateral meeting, before returning to Washington DC, Mr Trump will hold a departure press conference.
Senior US officials have flagged that he would be involved in working discussions across a range of economic and security issues, including the global economy, critical minerals, migrant and drug smuggling, wildfires, international security, artificial intelligence and energy security.
The officials said Mr Trump also wanted to have discussions around making “America’s trade relationships fair and reciprocal, unlocking new markets for American energy exports, and positioning the US to be the world leader and international partner of choice on AI technologies”.
In addition to meeting with Mr Trump and Mr Carney, Mr Albanese is expected to hold bilateral meetings with Sir Keir, German Chancellor Friedrich Merz, Japanese Prime Minister Shigeru Ishiba and new South Korean President Lee Jae-myung.
Mr Albanese said while Mr Trump was dealing with major global and domestic issues, he expected a “constructive engagement” with him.
“Obviously we will raise tariffs, we will raise the importance of AUKUS. And we will have a discussion, as two friends should,” Mr Albanese said.
Under pressure from US officials to urgently lift Australia’s defence spending to 3.5 per cent of GDP, Mr Albanese said the context of his AUKUS discussions would centre on what Australia contributes and the benefits for the US.
After the Pentagon last week ordered a snap 30-day review of the AUKUS nuclear submarine agreement, Mr Albanese said he would reiterate to Mr Trump the significant strategic outcomes the deal presents. These include Australia’s substantial financial assistance for the US industrial capability, of which the government has already contributed $500m.
“Australia has currently over 100 personnel in Hawaii, working on (nuclear submarine) maintenance, working on skills and contributing there. As well as many more people here in the United States,” Mr Albanese said.
“The potential of what’s going to occur, the infrastructure investment at Henderson (shipyards) will be important in increasing the capacity of US submarines, as well as UK submarines, to be in the water for longer and for maintenance to occur there.
“The benefit that the presence of US Marines has in the Northern Territory is also important, as well as the fuel reserves that are there in the Northern Territory. There are a range of ways in which Australia (contributes) to the United States, not just through AUKUS Pillar I.”
Asked about the ideal outcome of negotiations on a tariffs deal, Mr Albanese said the 10 per cent baseline tariff announced by Mr Trump earlier in the year was applied across the board. He refused to pre-empt outcomes.
“I will put forward Australia’s interests respectfully because it’s also in the interests of the United States for Australia to be treated appropriately. Tariffs across the board, of course, impose an increased cost on the purchases of those goods and services,” Mr Albanese said.
“Those goods and services have still been provided here in the United States, and indeed in some sectors. If you look at the beef sector, Australian beef producers have been able to find export destinations as well.
“I will enter into those discussions constructively. The discussions that were previously had with President Trump were constructive, but those 10 per cent tariffs, of course, have been the minimum … that have been applied right across the board.”
On the widening conflict between Israel and Iran, which will dominate talks at the G7 summit, Mr Albanese said in response to instability in the world, Australia had “doubled defence spending”.
Asked if he would attempt to replicate the deal struck by Sir Keir with Mr Trump to remove tariffs from British products and use critical minerals as a lever in negotiations, Mr Albanese said “Australia will follow our model”.
“Australia has a very different economy and potential from the United Kingdom. We have something in the order of 36 of the 50 critical minerals that have been identified. And Australia is a major contributor in our region to security. And the relationship that we have with the United States is an important one,” he said.
“Our trading relationship with the United States is very different as well. We have different biosecurity measures. And we have made it very clear that we want to continue to increase our trade with the United States and we want constructive outcomes.
“I’ll put forward Australia’s national interest but I do think that the economies of the UK and Australia are different and hence the engagement will be different as well. Also, Australia has the free-trade agreement with the United States. One of the things that I will state … is that the United States has enjoyed a very long trade surplus with Australia.”
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