China has agreed to drop trade restrictions on live lobster imported from Australia, and the federal government has pledged to work with its Chinese counterparts to ensure local producers receive the best price for their catch.
The federal government on Thursday announced trade restrictions, imposed by China in 2020 during frosty diplomatic relations between the two nations, will cease by 2025.
Prime Minister Anthony Albanese and China’s Premier Li Qiang brokered the agreement during this week’s ASEAN Summit in the Laotian capital of Vientiane, lifting the handbrake on an export market valued at $700 million in 2019.
The closure of China’s export market took a significant toll on local producers, who were forced to diversify their trading partners and focus on domestic business.
In a statement, Seafood Industry Australia called the reversal a “major win” for the sector.
It will benefit “the hardworking fishers, the coastal communities that they support, and for Chinese consumers and we are proud that our high-quality, safe, and sustainable lobsters will soon be back on Chinese tables,” the organisation said.
The resumption of the live rock lobster trade will assist in its goal of building Australian seafood exports to $2 billion in 2030, the group added.
While producers and industry organisations are optimistic, the Chinese economy is only softening, with potential consequences for household budgets and dining appetites.
At the same time, the evaporation of Australian live rock lobster in Chinese menus saw the nation officially diversify its import partners (unofficially, some Australian rock lobster still found its way to China during the ban).
Addressing reporters in Hobart on Friday, Minister for Agriculture, Fisheries and Forestry, and Minister for Small Business Julie Collins said the federal government’s work to support the local sector is far from over.
“We want to make sure, as I’ve said, that we get great Australian produce and we get the best price for it because that has great returns to our local economies and has an impact and a flow onto jobs here in Australia,” Collins told SmartCompany.
She shared her optimism that Chinese diners would once again pay for premium Australian produce.
“I’m sure that, given we’ve got such a great product, that the Chinese consumers will want to see Australian lobster back on their menus,” she said.
The federal government is using the lobster deal as proof of warming relations with China.
In a joint statement, Albanese, Minister for Foreign Affairs Penny Wong, Minister for Trade and Tourism Don Farrell, and Collins said: “With our patient, calibrated, and deliberate approach, we are restoring Australian trade with our largest export market”.
The federal government “will continue with its calm and consistent approach to the China relationship — where we cooperate where we can, disagree where we must, and engage in the national interest,” they added.
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
