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  • Writer's pictureCrest Economics

Australian trade relations with China to a rocky start – Jan 2023

Ferguson Australia Group, Andrew Ferguson says it’s been a “pretty tough few years” for Australia since China stopped seafood trade with Australia, alongside restrictions on other goods. The lucrative $1.2bn wine market within Australia’s exports to China have dried up following China’s hefty tariffs in 2020. Talks between the former Morrison government and the WTO are under consideration but Trade Minister Don Farrell has reiterated his willingness to travel to China for talks.


Other industries are also hoping for an answer – China was the largest purchaser of Australian barley up until the tariffs. Significant losses upwards of $700m a year have gone down the drain since the imposition of tariffs. New coal import deals have been struck this month after China’s authorities signalled an easing of an informal ban on Australian cargoes, imposed in 2020 as relations soured over issues including the origins of the coronavirus pandemic.

Australia aims to continue to boost relations with China as it seeks to fully restore trade ties with its largest export market, especially as the slowing global economy eases on Australia’s export performance.


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