China Resumes Live Rock Lobster Imports from Australia

December 27, 2024 Posted by China Briefing Written by Giorgia Sgueglia Reading Time: 4 minutes

China has resumed live rock lobster imports from Australia as of December 20, 2024, marking a major milestone in rebuilding economic ties. This final removal of trade barriers, which have plagued the bilateral trade relationship since 2020, reflects a broader easing of trade tensions. The restoration of these key exports is anticipated to boost revenue and strengthen the overall relationship between the two nations.

According to a media release published on the official website of the Australian Minister of Foreign Affairs on December 20, “China has notified today Australia that full resumption of live rock lobster trade can recommence, effective immediately.” This development marks a significant step in the ongoing recovery of the economic relationship between the two countries, following a series of trade disruptions in recent years.

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This announcement comes just two weeks after the resumption of Australian red meat exports to China on December 4, 2024, signaling a broader thaw in bilateral trade relations. The restoration of both live rock lobster and red meat exports follows a timetable set by Australian Prime Minister Anthony Albanese and Chinese Premier Li Qiang on October 10, 2024. During a meeting at the ASEAN Summit in Vientiane, Laos, the two leaders agreed to restore the full live rock lobster trade by the end of 2024. The timing of the resumption will allow Chinese consumers to enjoy Australian lobster just in time for the Lunar New Year celebrations, a development that Australian Trade and Tourism Minister Don Farrell described as an “excellent result” for both the Australian lobster industry and Chinese consumers.

The resumption of lobster exports is not only an economic boon but also an important step in stabilizing the broader relationship between China and Australia. China is Australia’s largest trading partner, and the resumption of trade in high-value products like lobster helps to reinforce the importance of a constructive economic relationship for both countries.

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Economic significance of the resumption

The return of Australian lobster exports to China is particularly significant given the challenges faced by the Australian lobster industry in recent years. Since 2020, Chinese authorities had imposed a ban on Australian live rock lobsters, a decision that had a considerable impact on the industry. In 2019, Australia’s lobster exports to China were valued at over US$476 million, accounting for 97.7 percent of the country’s lobster exports. However, following the imposition of trade barriers, Australian exporters struggled to find alternative markets, and the industry was left facing significant losses. The full resumption of live lobster exports is expected to generate A$700 million (US$476 million ) in revenue and safeguard around 3,000 jobs by the end of 2024.

In addition to the lobster trade, Australian exports to China have been gradually recovering since the political tensions of 2020. Prior to the imposition of trade barriers, China was Australia’s largest export market for a wide range of goods, including agricultural products, resources, and services. In 2023, China imported approximately US$155.6 billion worth of Australian goods, up slightly from the previous year. Overall, China remains a critical partner for Australia, accounting for over a third of Australia’s total goods exports, with US$204 billion worth of goods traded in 2023 alone.

According to Australian Minister for Agriculture, Fisheries, and Forestry Julie Collins, the resumption of lobster exports is particularly symbolic as it marks the final removal of trade barriers that have plagued the bilateral trade relationship since 2020.

Broader implications for China-Australia trade relations

Australia’s trade with China has faced turbulence in recent years, particularly during the tenure of former Prime Minister Scott Morrison. In 2020, Australia’s decision to align closely with the United States and sign the AUKUS security pact led to a sharp deterioration in relations with China, with Australia suffering trade restrictions on a range of products, including barley, wine, lobster, and beef. These disruptions affected an estimated A$20 billion worth of Australian exports.

Despite these challenges, the broader trade relationship has remained a cornerstone of Australia’s economic strategy. China has been Australia’s largest trading partner for over 15 years, and in 2023, China was the largest importer of Australian agricultural products, resources, and services. The Australia-China Free Trade Agreement (ChAFTA), which came into force in December 2015, played a crucial role in securing preferential access to the Chinese market, particularly for agricultural products. ChAFTA has also allowed Australia to maintain a competitive edge over other major agricultural exporters like the United States, Canada, and the European Union.

The resumption of live rock lobster exports comes at a time when Australia is experiencing a trade surplus on goods which increased to A$5.95 billion in October 2024, driven by exports of natural resources like coal, metal ores, and natural gas, while the fish, crustaceans, mollusks, aquatics invertebrates accounted for US$251.13 million in 2023 as well as agricultural products such as meat and cereals. China is the largest market for these exports.

Looking forward

The restoration of the live rock lobster trade represents more than just a financial recovery for the Australian lobster industry; it is a critical step in the broader effort to stabilize and strengthen trade relations between China and Australia. Both governments have expressed a commitment to maintaining a mutually beneficial trade relationship, with hopes that this momentum will continue into 2025 and beyond.

As both countries move forward, it is hoped that they will continue to engage in constructive dialogue, resolve any remaining trade concerns, and expand cooperation across various sectors. With trade and investment with China central to Australia’s future prosperity, the full resumption of live rock lobster exports is an encouraging sign of better times ahead for bilateral economic relations.

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