Australia

In the early days of the pandemic, Australia was the envy of the world. The country was lauded as a model of how to handle the virus. Australian states recorded few cases; and when there were outbreaks, authorities brought them under control quickly. All that has changed. Now, well into the second half of 2021, Australia is losing its grip on the virus. While other major cities such as New York, London, and Paris, are opening up, Sydney is under lockdown. Even outside the nation’s major cities, travel restrictions are severely limiting movement for Australians within the country. Australia’s politicians have sought to blame the Delta variant of coronavirus. But in truth, the new strain is only part of the story.

The basis of the UK’s first bespoke trade deal since leaving the EU was finalised with Australia over two dinners. One took place in the garden of the residence of the Australian High Commissioner to the UK, where guests were fed Australian lamb. The other in Downing Street where Welsh lamb was on the menu. They were menu choices that pointed both to what the deal would achieve – zero tariffs, including on agricultural goods – and the main point of contention in a negotiation that has spanned nearly a year since talks began last June. In that time, there has been a Cabinet row over protectionism on Australian meat imports and a diplomatic incident that nearly hampered the talks.

Covid changes its identity more often than Grant Shapps. The latest strain emerged with the appealingly exotic name ‘Indian’. Now it’s been given a more military-sounding tag, ‘the Delta variant.’ Today’s PMQs featured a tussle over the date on which this dangerous mutant sneaked through the UK’s borders. Sir Keir Starmer waved a file of papers at Boris. ‘It’s all here in the transcript,’ he said and he accused the PM of waiting too long to slap a ‘red list' notice on India.  For once, Sir Keir had his timelines in a twist. Boris flourished a counter-file at the opposition leader. It was written, said the PM, by the general secretary of the Labour party. ‘This is the document on which I believe he is relying.

The UK government has agreed its first bespoke trade deal since leaving the EU. After Boris Johnson met with Australian Prime Minister Scott Morrison on Monday night, a deal has been agreed between the two sides. The deal on the table offers tariff free trade for all British goods, enhanced access for British tech companies and ought to make it easer for Britons under the age of 35 to travel and work in Australia. As for the Cabinet row over whether an influx of Australian meat could threaten the livelihoods of UK farmers, a 15-year cap on tariff-free imports has been agreed – though the specifics are yet to be published. The deal shows that free marketeers in government are still being heard So, what does this mean for the country?

What happens with an Australia trade deal won’t just reveal how serious this country is about free trade but also how committed it is to helping democratic countries stand up to China. China is Australia’s largest trading partner but since Australia called for an independent inquiry into the origins of coronavirus, Australian-Chinese relations have severely deteriorated. Beijing is now trying to use this economic relationship to get Canberra to fall into line.  China has imposed huge tariffs on Australian barley and on wine for the next five years, while technical reasons have been found to bar most Australian timber and beef from the country.

It is becoming harder and harder to ignore China’s aggressive behaviour. As I say in the magazine this week, China wants to pick off its opponents. Only a unified western response can stop this, but all too often that has been lacking. New Zealand was strikingly absent from the statement issued by 14 countries When Beijing turned on Australia for suggesting that there should be an independent inquiry into the origins of the coronavirus, there was a shocking lack of solidarity from New Zealand. Wellington’s trade minister, while negotiating an upgrade to its trade deal with China, suggested Australia should ‘show respect’ to China. New Zealand now exports almost half its meat and wool to China.