Tasmanian exporters want tensions between Australia and China to ease

Tasmanian producers are concerned the state’s first ever $1 billion export market could suffer a massive blow as vital trade relations with China continue to sour over Canberra’s call for a coronavirus inquiry.

TASMANIAN exporters are anxiously waiting to see how tensions between Australia and China could affect lucrative export markets.

It comes as concerns are raised that China may launch another economic strike on Australia in response to Canberra’s backing of an investigation into the origins of COVID-19.

It has suspended meat imports from at least four Australian abattoirs amid souring relations between the two nations, while threatening to place tariffs on barley imported from Australia.

China is Tasmania’s biggest export market, accounting for one-third of total exports, worth more than $1 billion a year.

One of the major exports is wool, with China buying about 85 per cent of the state’s clip each year.

Stewart Raine at the Roberts Wool Centre, Western Junction. Picture: CHRIS KIDD

Stewart Raine from Roberts Wool, the state’s biggest wool broker, said producers across the state were unlikely to be worried about the current trade tensions at this stage.

“I guess it could be a bit concerning, but we’ve got very strong relationships with the Chinese textile industry that have been built up over a period of 50 years,” he said.

“Chinese buyers regularly come to Tasmania, and our growers also visit the mills and textile companies in China, so I’d hope they would continue to support the industry here, regardless of any political undertones.”

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But Fruit Growers Tasmania chief executive Peter Cornish said the situation had his exporters worried.

Mr Cornish said China was the state’s second largest export market for cherries, behind only Hong Kong. Apples are also exported, but on a lesser scale.

“They are concerned. It is a big issue and export overall is a very big part of the Australian market,’’ he said.

“Importantly, growers have invested a lot of time and effort into these markets and their customers, and it’s based upon long-term relationships.

“It doesn’t completely mean that we’re insulated from things that happen at a national level, and we need to be prepared for anything I guess.”

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Fresh cherries. Picture: CHRIS KIDD

South Coast rock lobster.

Tasmanian Seafood Industry Council chief executive Julian Harrington said any potential shutdown of trade would have a devastating impact, particularly on the rock lobster and abalone industries.

Crayfish exports were stalled at the most important time of year due to the coronavirus pandemic, leaving local fishers scrambling to sell their stock locally at a reduced rate.

“In reality, we’re still trying to focus and recover from that hit that was caused by the coronavirus in China,’’ he said.

Greens leader Cassy O’Connor described the Chinese government as “unreasonable and vindictive” and that threats to exports were designed to intimidate.

“This situation reinforces the need for government to more strongly support Tasmanian exporters to seek out other markets beyond China, where trading relations can be more mutually respectful,” she said.

“A significantly diversified trade strategy will hold Tasmania’s economy in good stead for the future.”

Premier Peter Gutwein said Tasmania’s trading relationship with China had been continually strong and he hoped current tensions would not be detrimental to exports.

Primary Industries Minister Guy Barnett said the government had a strategy to grow trading markets outside of China: “We have a lot of confidence in all of our productive industries, especially agriculture, and they are delivering absolutely brilliantly at the moment,’’ he said.

“Coming out of the coronavirus pandemic, that will be even more important”

The Tasmanian Farmers and Graziers Association declined to comment.