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Biden beef: How will Australian red meat benefit from a new president

Will a change in US presidency affect Australia’s relations with China? The red meat industry could benefit from Biden’s win, as tensions with China increase. Here’s what we know.

US President-elect Joe Biden could bring stability to Australia’s trade relations with China. Picture: Jim Watson.
US President-elect Joe Biden could bring stability to Australia’s trade relations with China. Picture: Jim Watson.

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HOPES have been raised that Australia’s trade tensions with China could be tempered by a new US administration under president-elect Joe Biden.

But with Australian red- meat exports into China last month down almost 50 per cent compared with the same time last year, uncertainty hangs over the key market.

Department of Agriculture red meat export figures show Australia exported 26,467 tonnes of red meat into China last month.

That is more than 48 per cent lower than the 51,497 tonnes exported the previous October.

IBISWorld senior industry analyst Jason Aravanis said the relationship between China and Australia was “really not good”.

“It’s at its worst point it’s been in a very long time. China has shown increasing confrontational tendencies over the last 12 months, and no sign of pulling that back,” he said.

A recent report published by IBISWorld suggested a Biden administration could “likely reduce trade-war uncertainty”, and “potentially alleviate strain in the Australia-China trade relationship”.

“Specifically in economic terms, if Biden wins, Biden’s policy with China is likely to be only slightly less confrontational,” Mr Aravanis said.

“We may still continue to see tariffs, and cases taken to the World Trade Organisation, but Australia will likely be more in the loop, unlike what Trump was doing where Australia was more an afterthought.”

Meat and Livestock Australia data showed beef export volumes into China were down almost 60 per cent last month compared with the same time last year, when the country was in the grip of an outbreak of African swine fever.

Mr Aravanis said the extent of China’s recovery from the ASF outbreak remained unclear.

“It is surprising China is so willing to take the trade battle into the pork and meat production theatre,” he said.

“China, as unhappy as they are, are hesitant to push too hard on those vital areas.”

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Original URL: https://www.weeklytimesnow.com.au/agribusiness/livestock/australian-trade-what-a-biden-victory-means-for-red-meat/news-story/73f0ceb2a964bc884e92ed6d522674c4