Free trade talks with the United Kingdom will officially begin later this month, as Australia desperately seeks closer relationships with nations beyond China.
Trade Minister Simon Birmingham announced the official start of the talks, which come after years of preliminary manoeuvring between the countries.
Senator Birmingham has long hoped Australia would be among the first countries to secure a trade deal with the UK, but had to wait for Brexit before official negotiations could begin.
The Government hopes it could finalise a deal within the year, which would be much faster than the years typically taken to reach an agreement.
"Australia will be looking to secure better market access for goods exports, especially in agriculture, and high standard rules for digital trade and investment to expand our already deep economic relationship," Senator Birmingham told the National Press Club.
Even if Australia secures a deal with the UK, its value will pale in comparison to Australia's exports to China, which were worth almost $150 billion last year.
In recent weeks, China has imposed crippling tariffs on Australian barley, banned some beef exporters and urged its students against studying in Australia.
Senator Birmingham said nations needed to work closer, rather than imposing new barriers, as the world seeks to recovery from the deadly coronavirus pandemic, warning "we will all win together or we all lose together".
"China's decision on Australian barley impedes the ability of Australian exporters and farmers to compete on fair terms," Senator Birmingham said.
"It doesn't just affect our farmers, though, it's also a significant cost to Chinese consumers and producers.
"Australia's agricultural commodity forecaster ABARES has estimated the loss to Australia from China's decision to be $330 million. But the loss to China being in the order of potentially $3.6 billion."
Australian exports to the UK were worth more than $15 billion last year, up $10 billion on the previous year, thanks almost entirely to record UK spending on Australian gold, amid Brexit and fears over geopolitical tensions.
The UK was Australia's second-largest trading partner almost five decades ago. It's now Australia's 12th-largest trading partner.
"UK consumers turned away from Australian produce when high tariffs and low quotas were imposed as a result of their membership of the EU," Senator Birmingham said.
"Brexit now presents new opportunities for our two nations."
The trade negotiations come as the Federal Government continues free trade negotiations with the European Union, the third largest export market for Australia.
Two-way trade with the EU is worth around $114 billion, almost four times the value of the UK relationship, at $30 billion.
.jpg?w=600)
