Australia’s great timing in mega-deal with Donald Trump
Tess Ikonomou |
A multibillion-dollar deal between Australia and the United States is being trumpeted as a huge win for both nations, and experts argue the timing could not have been better.
The $13 billion pact is designed to provide security of supply for critical minerals as China withholds exports and the technology needed for processing.
Both countries will each invest at least $1.5 billion in the next six months to develop critical minerals projects in Australia, according to the joint agreement.
The deal was delivered during a White House meeting between Anthony Albanese and Donald Trump.
The agreement had a lot of substance, according to Hayley Channer from the United States Studies Centre.
“In the process of the US negotiating with China around trade and China cutting off more export technology, that might have pushed the deal over the edge for the US, so it was great timing for Australia,” she told AAP.
“The US is investing a lot of money to make sure that it’s got security of supply and it can keep manufacturing things like fighter jets or drones, missiles and other defence equipment.”
Industry Minister Tim Ayres said a pipeline of projects worth $8.5 billion had been agreed or were in the process of being delivered.
Who could buy the critical minerals that were being processed in the country would remain a sovereign decision for Australia, he said on Wednesday.
Mr Albanese flew back to Australia from Washington DC after a successful sit-down with the US president, which also delivered reassurances on the trilateral AUKUS defence partnership.
“It was a terrific meeting, it couldn’t have gone better,” the prime minister said.
However, an air force plane carrying the prime minister home was forced to make an unscheduled landing after a mid-air incident.
The aircraft touched down in St Louis, Missouri so a RAAF member could be treated after knocking their head.
Travelling media were told the plane would top up its fuel and then continue its journey to Australia.
The prime minister revealed he gave Melania Trump some jewellery and the president a small model of a submarine – a reference to Australia’s bid to purchase nuclear-powered boats.
The meeting bode well for Australia’s acquisition of the submarines, the first of which it plans to buy from the US in the early 2030s.
Mr Trump gave his strongest commitment to date to the $368 billion project, ending months of uncertainty over whether he supported the deal.
The US might fast-track delivery of the vessels, but the president wouldn’t give a timeline.
Experts have questioned whether the timetable of the AUKUS deal, which also involves the UK, is viable given the US is struggling to meet its targets for submarine production.
AAP
