Minister for Trade: Well, good morning, everyone to the Whitmore Square here in Adelaide. This morning, I spoke with my American counterpart Howard Lutnick, the United States Commerce Secretary. And he confirmed that the tariff on Australian goods into the United States would remain at 10 per cent and that there would be no increase in the rate. He did indicate that there had been some pressure in the American system for an increase, but that President Trump had decided to maintain that 10 per cent. I think this is a vindication for the Albanese Government and particularly the Prime Minister, in the cool and calm way that we have conducted diplomacy with the United States. What this decision means, in conjunction with all of the other changes to other countries, is that Australian products are now more competitive into the American market. This means products like wine, like beef, like lamb, like wheat, in a relative sense, are cheaper into the United States. And as a government, we will assist all of our exporters in ensuring that we take advantage of this situation and increase the volume of exports, not just to the United States, but to all of those other countries that we have diversified with. Interestingly, yesterday the Australian Parliament approved our Free Trade Agreement with the United Arab Emirates.
This means that virtually every Australian product that we sell goes into the United Arab Emirates, tariff-free. That's obviously a very good story for Australian agriculture and Australian producers. We don't want to leave the issue here. We believe in free and fair trade, and we will continue to put the argument to the United States that they should remove all tariffs on Australian products in accordance with our Free Trade Agreement. And we will continue to prosecute that argument. In fact, I've invited Commerce Secretary Lutnick to come to Australia to continue the discussions. So, as I said, we believe this is a vindication of our cool and calm negotiations with our trading partners. At no stage did we introduce tariffs on American goods. America still has a significant advantage in terms of our trading relationship. The Americans export about double to us what we export to them. But we will continue the discussions until we get all of those tariffs removed.
Journalist: So, Don, from your conversations this morning, was there any indication there could be sometime in the near future where that 10 per cent tariff is dropped?
Minister for Trade: Look, that certainly wasn't raised with me. I am hopeful. I'm hopeful that this is the end of the matter now and that the American government maintains that 10 per cent and that our producers, our winemakers, can get back to a normal relationship with the United States where we don't have to worry about changes in tariff rates.
Journalist: Do you believe allowing US beef imports into Australia helped to maintain that 10 per cent tariff for Australian goods into to the US?
Minister for Trade: Look, we took that decision independently of these trade negotiations. We never as a government, the Albanese Government never ever risks our biosecurity issues. We've got a wonderful reputation for producing clean and green produce. We want to maintain that. However, just as we are entitled to put our case to export our goods to other countries including the United States, they're also able to apply under our rules for access to the Australian market. The Americans did that 10 years ago. That process was completed in the last week and in accordance with our rules, we made a decision to allow the import of American beef. I have to say this decision will obviously be very good for Australian beef producers into the United States because in a relative sense our produce, our very good produce, is now cheaper than most of our competitors.
Journalist: The maintaining of the 10 per cent, is that a good sign for where the conversations are around AUKUS agreement at the moment?
Minister for Trade: Look, we've never linked our trade relationship with our defence relationship. The United States is our greatest ally, our most important ally. Just like with trade, we have an agreement with the United States to produce and make here in Adelaide submarines. High quality, highest tech submarines in the world. We'll continue to have discussions with the United States about the AUKUS, but it will be completely independent of our trade relationship. There's no job that's more important for a Federal Government than our national security. The Albanese Government takes our national security very seriously and will continue to have discussions with the United States. You might have seen last week, decision by the UK government for another 50 years of agreements with them. That's a good sign. But I would be confident that the United States will continue with the AUKUS arrangement. It's good for Australia, but it's good for America and it's good for the United Kingdom.
Journalist: When do you predict that the Prime Minister will be able to meet with President Trump?
Minister for Trade: I don't make predictions. The Prime Minister has had two very good discussions with President Trump and I'm sure that at the appropriate time there will be further discussions. Obviously, this decision by the United States Government is a very positive one for our relationship.
Journalist: At what point does Australia say, "if they don't drop the 10 per cent tariff, why don't we impose a tariff on them?"
Minister for Trade: Look, I haven't seen any case or any example where the retaliatory imposition of tariffs has resulted in a country being in a better position. When I came to this job three years ago, we had 220 per cent tariffs on our wine, 80 per cent tariffs on our barley and many other impediments with China. We didn't retaliate. What we did do was negotiate and use cool and calm diplomacy to prosecute our case that these tariffs were counterproductive. That's the approach we'll now take with the United States. And we'll continue to prosecute our argument that all tariffs on all Australian products should be removed.
Journalist: Trump has demand US drug companies guarantee US prices for new drugs are no more expensive than in other countries saying it will require them to negotiate harder with foreign freeloading nations. Do you have any concern that that will impact drug prices in Australia?
Minister for Trade: Look, I don't believe that that statement will have an impact on Australian drug prices. But in terms of pharmaceuticals, we have made it very clear that at no stage will we put at risk the PBS system. Australians will continue to get cheaper drugs under the Albanese Government.
Journalist: And have you heard any updates from the US Administration on its plans to impose a 200 per cent tariff on pharmaceuticals?
Minister for Trade: No.