Trade Ban Lifted, Marking Key Milestone in Australia-China Relations

In a significant diplomatic breakthrough, China has agreed to resume imports of Australian lobsters, ending a four-year trade embargo. This development signals a resolution to one of the final major trade obstacles that arose following the tensions between the two countries in 2020. Australian Prime Minister Anthony Albanese announced that full lobster exports would restart by the end of 2024, coinciding with Chinese New Year.

The lobster trade, once worth over £359 million in 2019, was halted by China after Australia called for an independent investigation into the origins of the Covid-19 pandemic. In retaliation, Beijing imposed various trade barriers on Australian goods, including beef, wine, coal, and barley, leading to a financial loss estimated at AU$20 billion (£10 billion) annually.

Albanese, who has focused on restoring diplomatic relations with China since taking office, welcomed the resumption of lobster exports, which is expected to benefit regional Australian economies in areas like Geraldton, South Australia, and Tasmania. These regions, heavily reliant on the lobster industry, will see a significant boost as the market reopens.

Prior to the ban, China was the dominant market for Australian lobsters, accounting for 90% of exports. The recent agreement follows China’s lifting of tariffs on Australian wine and the reinstatement of beef imports in December 2023, signalling an overall thawing of relations. While China’s foreign ministry did not provide specifics on the lobster deal, it reiterated the importance of continued dialogue with Australia to address shared concerns.