Trade Minister Don Farrell: Association of Southeast Asian Nations next on the trade agenda

Trade Minister Don Farrell has detailed where in the world is next for Australian trade following doomed EU trade talks.

Don Farrell will look towards the “great potential” of untapped and maturing South-East Asian economies following the collapse of EU trade talks.

Australia’s trade minister said while the Chinese, Indian and United Kingdom markets should continue growing, the “real work” now was stretching lasting commercial tendrils across the Association of Southeast Asian Nations.

“ASEAN we are underdone; countries like the Philippines, Vietnam, Indonesia, we are just not doing well enough there,” he said.

“Let’s be honest, it was simply too easy to fly your product into China. But Covid tells us, the unstable nature of the world tells us, we have to do better in our own region. That’s where we failed in the past.”

Trade Minister Don Farrell (centre) with senior media advisor Grace Finch (right) and chief-of-staff Ben Rillo.

Two-way ASEAN trade totalled $127 billion last year. The Albanese government wants that figure at $534bn by 2040.

It’s welcome news to Australia’s agricultural lobbies, which have urged consecutive governments to reduce ASEAN technical trade barriers.

When the South Australian Labor powerbroker became trade minister, supply chains and economies were broken, Chinese sanctions had sideswiped agriculture and geopolitical strife was fertilising protectionist agendas.

Senator Farrell’s first act of statecraft was to steady the ship by rapidly finalising UK and India free-trade deals.

Since then exports have increased by 160 per cent into the UK and Australian businesses claimed lower tariffs on $14 billion worth of exports into India, where he intends having “another bite of the cherry” next year.

This week Senator Farrell hopes to ink a “different sort” of trade deal at the annual Asia-Pacific Economic Co-operation summit in San Francisco.

The Indo-Pacific Economic Framework promises to open otherwise out-of-reach ASEAN markets, but also seeks to bring the US back into the region economically and thread together the new economic, supply chain, clean energy, and decarbonisation forces affecting the world.

It also underlines Senator Farrell’s role in the growing need to staple security to trade alliances.

“In a more dangerous world, the more friends you’ve got the better, trade is a vehicle for peace,” he said.

Trade Minister Don Farrell meeting with Indian counterpart Piyush Goyal on the sidelines of the World Trade Organisation's 12th Ministerial Conference in Geneva, Switzerland. Picture: Piyush Goyal

Meanwhile, a need to de-risk deals by diversifying from China has seen 107 new market access points worth $5bn secured since May 2022.

Repairing Canberra-Beijing relations was always going to be an important marker, with some tariffs torched and $6bn of trade so far restored.

Prime Minister Anthony Albanese told The Weekly Times Senator Farrell was “an honest and straightforward outcomes person” and “there’s no one I would want to negotiate on my behalf more”.

The former union heavyweight has kneaded disputes for four decades, and said showing combatants “respect” and that one was a “serious negotiator” were the foundation of solving trade disputes.

But, in pointing to a “very, very friendly” 30-minute sideline chat with China’s commerce minister Wang Wentao in Beijing last week, the gentle art of soft diplomacy plays a part.

“That’s a reflection of how we have built up a respectful relationship that enables me to put the best case forward for Australian producers and for him to honestly tell me where we are and the direction that we are heading,” he said.

Australian Trade Minister Don Farrell with Chinese Commerce Minister Wang Wentao.

Senator Farrell has only spent two nights in the past two months home at his Clare Valley vineyard, but does take work home with him. Britain’s Secretary of State for Trade Kemi Badenoch and New Zealand counterpart Damien O’Connor have both already visited.

Mr Wentao accepted a reiterated invitation to visit when next in town.