Australia must block China’s entry to CPTPP trade pact

Over the past year we have witnessed China ban a range of imports from Australia, in contravention of the free-trade agreement (ChAFTA) that the two nations signed in 2015.

Just last week, China slapped enormous duties – ranging from 116% to 218% – on wine from Australia for the next five years, in turn depriving Australia’s wine makers of their top export market.

Now China is reportedly seeking to join the 11 member Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into effect in late 2019:

Presenting China’s annual government work report on March 5, Premier Li Keqiang said the world’s second-largest economy “will actively consider joining” the agreement…

Li’s remarks come a month after Beijing’s commerce ministry said at a press conference that it is actively looking into accession to the trade pact in order to foster what it calls a new development paradigm, adding that it is “willing to enhance technical exchanges and communication with all CPTPP members”.

Australia must block China’s entry into the CPTPP trade pact. Through its actions, China has demonstrated unequivocally that it does not play fair and cannot be trusted on trade.

Allowing China into CPTPP would entrench its position as an economic partner with Southeast Asia, Japan and Korea. In turn, it could allow China to shape the region’s trade rules and wedge Australia’s vital strategic relationship with the US.

Australia should instead encourage US President Joe Biden into joining the CPTPP, which the US withdrew from under President Donald Trump.

Though that will not be easy politically!

Unconventional Economist

Comments

  1. “will actively consider joining”….. Actively….. With the creepy Gollum level of the globes diplomats doing deals they’ll be running it before they join.

  2. Gee whizz I remember reading at MB that TPP was an arrangement where US businesses could bend over but naked Aussies and have a go at us.
    It was a “saved by Trump” disaster.
    Maybe I am wrong.
    I wonder what has changed to make TPP so attractive proposition for Aus whilst we produce exactly nothing for export.

    • kierans777MEMBER

      Same here. The TPP was always about trying to restore American corporate homogeny over the world and Australia like others only stood to lose. When people challenge me to say one good thing about Trump’s presidency the fact that he killed the TPP is my goto reply. The ALP were complete sellouts to pass the TPP (my local Senator told me at the time that they’d revisit the legislation after they won government 😂)

  3. Let’s face it, they’d only want to join to start negotiations and go on endlessly and thus delay any US entry. Japan won’t want them in either…

  4. UpperWestsideMEMBER

    All multilateral trade deals are poison, the good actors get screwed. Tear them all up.
    Sell export/import credits (EIC) , modeled on the carbon credit type schemes.
    You export you get a credit,
    You import the tariff is 30% -or- you offset it with an EIC.
    Govt issues EIC’s as needed for 29 cents on the dollar.

    Sure we will all be materially poorer, but the lower and middle classes will have productive jobs and happier lives.
    We won’t need to plug the export vs import gap by selling our land and corporations to become renters in our own country.
    Do I really need a new 65inch TV from Costco for $399 maybe I can live with my old 47inch for a while.
    The planet will breathe a little easier as well .
    (6 am rant, the dog is sick, don’t remember we were this stressed about the kids being sick, but the dog….)

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