Free trade political footballs

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From the AFR:

Chinese President Xi Jinping has reportedly called for an “early conclusion” to talks with Australia over a free trade agreement in a phone call with Prime Minister Kevin Rudd.

Mr Xi told Mr Rudd on Monday that he hoped both sides would be “flexible and creative in finding solutions to various problems,” according to a report on the state-run People’s Daily website this morning.

During the call, Mr Rudd said Australia attached “great importance to the free trade talks” and hoped for an early deal, the report said.

The exchange suggests that Mr Rudd’s return to the role of Australian Prime Minister might kickstart the stalled talks. Opposition Leader Tony Abbott has vowed to sign an agreement within 12 months if he is elected.

Hmmm, well, let’s hope neither side of politics makes a deal a political necessity. Setting artificial deadlines for international agreements is a recipe for getting shafted, as happened in the US free trade deal a decade or so ago.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.