China will resume imports of Australian live lobsters by the end of the year, removing the last major obstacle to bilateral trade that once cost Australian exporters more than 20 billion Australian dollars (US$13 billion) a year, Australia’s Prime Minister said on Thursday.
Prime Minister Anthony Albanese made the announcement after meeting Prime Minister Li Qiang on the sidelines of a Southeast Asian summit in Vientiane, Laos.
The lobster ban was the latest in a string of official and unofficial trade barriers Beijing has agreed to lift since the election of Albanese’s centre-left Labour Party government in 2022. Albanese told reporters:
I’m pleased to announce that Premier Li and I have agreed on a timetable to resume full lobster trade by the end of this year. This of course will be in time for Chinese New Year and this will be welcomed by the people engaged in the live lobster industry.
Albanese assured that relations with China have been improved without jeopardising Australian interests. Beijing is unhappy with the restrictions Australia has placed on some Chinese investments due to security concerns. He also added:
What’s important is that friends are able to have direct discussions. It doesn’t imply agreement, it doesn’t imply compliance and I’ll always represent Australia’s national interest. That’s what I did today; it was a very constructive meeting. I’m encouraged by the progress that we have made between Australia and China’s relationship in producing stabilization to the benefit of both of our nations and with the objective of advancing peace and security in the region.
The Chinese embassy in Australia did not immediately respond to a request for comment on Thursday.
Australia’s biggest export market for lobsters
China is Australia’s biggest export market for lobster, with more than 727 million Australian dollars ($506 million) worth of the crustacean exported to the country in 2019, the last year of normal lobster exports to the country, according to the International Trade Centre.
Beijing halted trade with Australia in 2020 on a range of products including lobster, coal, wine, barley, beef and timber as diplomatic relations plunged to new depths.
In some cases, Australian suppliers have been able to find other buyers and new markets have proved more lucrative. For example, Australian coking coal producers have shifted their focus to Europe and India.
Australia’s Department of Foreign Affairs and Trade website says China is the country’s largest trading partner. As of July 2022, it accounted for a third of foreign trade. The report says that despite the restrictions, trade with China still grew by 6.3 per cent in 2020-2021, mainly driven by exports.
During a state visit to Australia in June, Li said he had agreed with Albanese to “properly resolve” differences between their countries. Beijing has broken off contact between ministers in the nine years the conservatives have been in power.
