China is set to lift the ban on Australian lobster trade, as confirmed by Prime Minister Anthony Albanese. This decision marks the end of a multi-billion dollar trade war between the two countries. Over the years, China had imposed bans and retaliatory tariffs on various Australian exports, such as wine and timber. The lobster trade, valued at $500,000 annually, was the last major Australian export to be under sanction.
After months of diplomatic efforts, Prime Minister Albanese declared a victory following a meeting with Chinese Premier Li Qiang in Laos. He announced that Beijing had agreed to a timetable to resume full lobster trade by the end of the year. This move comes as China faces escalating trade conflicts with Europe and the United States, with punitive tariffs being imposed on various Chinese exports.
The relationship between China and Australia had soured due to a crackdown on Chinese foreign influence operations, the exclusion of tech giant Huawei from Australia’s 5G network, and calls for an investigation into the origins of the Covid-19 pandemic. Prime Minister Albanese’s successful negotiation to lift the lobster ban is seen as a political win as he prepares for reelection in 2025.
Many lobster producers in Australia, particularly in Western Australia, welcomed the news of the ban being lifted. Kyri Toumazos of the South Australian Northern Zone Rock Lobster Fishermen’s Association expressed relief, noting that the Chinese market had been crucial for their industry. Prior to the ban, China accounted for 97.7 percent of Australia’s rock lobster exports.
While some Australian producers found alternative markets after the ban, many continued to export to China through unofficial channels, such as Hong Kong and Hanoi. The ban highlighted the risks of over-reliance on the Chinese market, but the sheer size and demand of China’s market make it an attractive prospect for Australian producers.
Andrew Lawrie of Sky Seafoods in South Australia, who previously sold most of his lobster to China, emphasized the challenges of replacing the Chinese market. Despite the risks involved, the potential volume of sales and higher prices in China make a return to the market appealing for many producers. The sanctions are expected to be lifted in time for Chinese New Year, a period of high demand for delicacies like rock lobster.
Overall, the lifting of the ban on Australian lobster trade with China signifies a positive development in the strained trade relations between the two countries. It offers a new opportunity for Australian producers to re-engage with a significant market and diversify their export options.
