EU FREE TRADE DEAL IMPASSE; NEW RBA HEAD
No deal for European free trade agreement
Trade Minister Don Farrell has failed to strike a deal with Europe during talks in Brussels on a new EU-Australia free trade agreement. Senator Farrell said a further round of free trade talks would be held next month, with Australia determined to seek “meaningful economic access” for its agricultural products. In the same context, the minister said Australia would welcome European investment in critical minerals, rare earths and in the hydrogen sector.
Central bank veteran the new RBA Governor
Reserve Bank of Australia veteran Michele Bullock has been appointed Governor of the RBA, replacing Dr Philip Lowe, whose seven-year tenure has not been renewed. Announcing the appointment of Ms Bullock, Prime Minister Anthony Albanese and Treasurer Jim Chalmers said the Government would continue to cherish the independence of the RBA. The Treasurer also said he expected that the Government’s current review of monetary policy would receive bipartisan support. In a speech last month as the current Deputy Governor, Michele Bullock suggested an unemployment rate of 4.5 per cent for a “sustainable balance point” to reduce inflation towards a target rate of 2-3 per cent. Michele Bullock joined the RBA in 1985 and will be the first female Governor.
Chalmers warns on Chinese economic slowdown
Meanwhile, Treasurer Jim Chalmers is preparing for slower economic growth in Australia, warning of unfavourable developments in China. In a media interview, Dr Chalmers said that while the US economy was showing resilience, the Chinese economy was showing “some worrying signs”, while Europe was in recession. He said that given the global economy was in a “pretty precarious place right now” and combined with interest rate rises, Australia’s economy was expected to slow considerably. China is Australia’s largest two-way trading partner, so any economic slowdown has major implications for Australian export revenue.
Big jump in monthly international student inflow
Australia’s international student market continues to rebound, with almost 44,000 students entering in May, up by more than 19,000 or 77 per cent on May 2022 levels. Higher education students made up 51 per cent of the monthly intake, which was almost 24 per cent higher than pre-Covid levels in May 2019. According to the Australian Bureau of Statistics, total arrivals into Australia were 1.29 million and total departures 1.35 million in May.
Coalition retains Gold Coast seat of Fadden
The Liberal National Party has comfortably retained the south-east Queensland federal seat of Fadden at a by-election to replace former Morrison Government minister Stuart Robert. Early counting by the Australian Electoral Commission reported a two-party preferred swing of more than two per cent to the LNP candidate Cameron Caldwell. At the 2022 Federal election, the LNP held the Gold Coast seat by a margin of more than 10 per cent.
New gas supply code now in law
A mandatory gas code of conduct, designed to secure more gas at more reasonable prices, is now in force in Australia. Under the Federal Government code, effective from July 11, producers have offered indicative domestic supply commitments of at least 260 petajoules to 2027. A price cap set at $12/gigajoule will apply, and be subject to review in 2025. Small producers can be exempt from the cap if they supply only the domestic market.