In a month when Tony Abbott pledged to finalise a free trade agreement with China, the Chinese Government has imposed new tariffs on Australias coal exports.
The announcement of these new tariffs follows reports that Trade Minister Andrew Robbs colleagues were talking down the chances that he would be able to negotiate a successful FTA with China.
It also follows the comments by the Agriculture Minister Barnaby Joyce acknowledging that the Prime Minister had weakened Australias negotiating position by setting a deadline for concluding the FTA.
The prospect that China would impose protectionist trade barriers on coal was flagged publicly two months ago.
Yet last night all Mr Robb could say was that he would seek clarification from the Australian embassy in Beijing.
Thats not good enough.
Coal is Australias second biggest export commodity and China is the second biggest market for our coal.
The Abbott Government must tell Australians when it became aware of this measure, explain its impact on Australian exporters and the economy, and outline its response.
It is imperative that any FTA with China does not trade away the interests of Australias agricultural, manufacturing and services industries or the integrity of our migration system, including labour market testing rules.
A poor-quality China FTA would lock in uncompetitive outcomes for Australian businesses in one of our most important markets for years to come.
ENDS