Interview with Annelise Nielsen, Sky News

Annelise Nielsen: So, Minister Farrell, thank you for your time.

Minister for Trade: Thank you.

Annelise Nielsen: It's not often you get a Minister invited to any of the US conventions. Is this the first?

Minister for Trade: Yes, I think it is. I'm very privileged to be the first Australian Minister invited to a Democratic Convention and a witness to the great celebration of American democracy.

Annelise Nielsen: So, what is it you're doing here? What are you hoping to achieve?

Minister for Trade: Fortuitously, there's an opportunity to speak with all of my counterparts in trade and commerce. We've recently negotiated a new trade agreement with the United States, the Indo-Pacific Economic Framework. We signed that agreement in Singapore, and we're very keen to progress – make more progress on the implementation of that new economic framework.

Annelise Nielsen: So that framework, we know the trade chapter didn't get up, and that's the really contentious part. I mean, I think the Senator who helped defeat it, Sherrod Brown, is here. What are you hoping changes with America? Because really, unless the actual political manoeuvres change, they're not going to sign up to the Indo-Pacific Economic Framework trade chapter.

Minister for Trade: Look, I'm still very confident, almost certainly not before the election, but after the election, that we'll be able to make progress on all of the four pillars of that new agreement. And while I'm here, I'll be encouraging the Americans to do that. Part of Australia's strategy at the moment is trade diversification. It's very important that we expand our trading relationships, not just with America, but with our region, and IPEF gives us an opportunity to do that.

Annelise Nielsen: Realistically, though, what are we going to have to give the Americans for them to come over the line on the trade chapter?

Minister for Trade: Look, this is a two way thing. America gets all sorts of advantages out of extending our free trade agreements. Of course, we've got the AUKUS agreement coming up, the developments there. I think there are lots and lots of opportunities for Australia and America to work together to expand our trading relationship. And what we know is when you expand trade, you increase prosperity, and you create a peaceful world.

Annelise Nielsen: Look, we might know that – that's not the zeitgeist in America. Protectionism is really reigning supreme. I mean, at the Republican Convention, they're pro-tariff. They don't want to be sending any more jobs, money, overseas. How does Australia work with that, even if it's a Harris administration or a Trump administration? Is there really any difference for us once they come in?

Minister for Trade: Look, I'm optimistic that once the election is out of the way, then we can make progress on expanding our trade relationship with America. We know we're doing it with AUKUS. We believe we can do it in the space of critical minerals, our agriculture sector. There are so many ways in which we can expand our trade relationship with America, and my job is to do that.

Annelise Nielsen: Well, I mean, what do you think is going to entice America to do that? Critical minerals have been critical for some time. It's becoming more important with AUKUS, and it's not moving the dial domestically with their approach to trade.

Minister for Trade: Look, I think you'll find that the last two and a half years, with an Albanese Labor government, that work on things like critical minerals, Australia is very lucky. We either have the most or the second most reserves of all the critical minerals in the world. We're on the cusp of a golden age in critical minerals, but we need partners in that. I believe the United States offers the greatest opportunity to be a great partner in the development of those critical minerals and a net-zero world.

Annelise Nielsen: I mean, they offer great opportunities. Do you think they're actually coming to the table and doing enough, though? It was pretty devastating when they didn't come through with the trade chapter for IPEF.

Minister for Trade: Look, it was – no doubt it was disappointing, but it's simply been a delay, I believe. I think the opportunity is there to make progress on it. I believe we can make progress on it. There's got to be goodwill on both sides. Certainly, I'm here to let the Americans know that there's goodwill on the part of Australia. We want to extend our trade relationship with the United States. They've been great partners in the past. I believe they can continue to be great partners with Australia. And the opportunities are there to get to that net-zero. We're going to need some investors in developing those critical minerals. I believe we can work very closely with the United States to bring that about.

Annelise Nielsen: If Donald Trump has the opportunity to implement his global flat rate tariff, we're not going to be exempt from that. How is that going to impact us?

Minister for Trade: Well, again, I'm talking to Republicans while I'm here. Australia supports free trade. We're a free trading country. We'd like the United States to be free trade as well. And to the extent that we're able to influence things in the United States, we'll continue to press for free trade.