WA ALP SEEKS THIRD TERM; US TARIFF HIT
WA voters off to the polls
Voters in Western Australia will go to the polls on March 8, with Premier Roger Cook seeking a third term for his Labor government. The WA Parliament was officially dissolved on January 29, with Labor holding a commanding majority in the state’s 59-member Legislative Assembly. In mid-2023, Mr Cook succeeded Labor Premier Mark McGowan, who secured an unprecedented 53 seats for Labor at the 2021 poll and grabbed control of the Upper House, the WA Legislative Council. The WA Nationals and Liberals each hold three seats. Nationals Leader Shane Love is the Opposition Leader in WA.
Canada, Mexico cop 25 per cent hit on exports to US
President Donald Trump has followed through with his threat to impose tariffs on Canadian and Mexican imports into the United States. The US President issued an Executive Order that imposes a 25 per cent tariff (based on value) on goods from Canada and Mexico from February 4, with Canadian energy and energy resource exports hit with a 10 per cent tariff. An additional 10 per cent tariff has been imposed on imports from China. Information released by The White House noted that while trade accounted for 67 per cent of Canada’s gross domestic product, 73 per cent of Mexico’s GDP and 37 per cent of China’s GDP, it accounted for only 24 per cent of US GDP. The White House claimed that in 2023, the US trade deficit in goods was the world’s largest, at more than US$1 trillion. It also noted that in his previous term, President Trump took steps to “protect America’s national security”, by implementing tariffs on steel and aluminium imported into the US.
Albanese banks on Pacific alliance to avoid tariff moves
Meanwhile, Prime Minister Anthony Albanese is confident that Australia’s defence and diplomatic relationships within the Pacific region will help to insulate the nation from the imposition of US tariffs. Mr Albanese said Australia had a free trade agreement – and a trade deficit – with the US, so it was in the interest of the US for that relationship to continue. The PM said there was a recognition that Australia “punches above our weight in this region”, exercised via soft power, diplomatic power, economic influence and support for infrastructure and programs in the Pacific. In addition, he said, Australia was an important alliance partner with the US, as well as a Quad partner, along with India and Japan.
LNG, iron ore price lift drive higher export prices
After falling for the previous three quarters, Australian export prices rose in the final months of 2024, boosted by a recovery in iron ore prices and higher demand for liquefied natural gas. The Australian Bureau of Statistics said that the quarterly export price index rose by 3.6 per cent during the quarter, while falling 8.6 per cent through the year. Import prices rose by just 0.2 per cent in the quarter but fell 1.9 per cent through 2024. Higher import demand for gold and a rise in the cost of road vehicles – including through a depreciation of the Australian dollar – contributed to higher import prices.
Supply constraints push up electricity prices in NSW, Queensland
A jump in electricity demand and transmission constraints in the national energy market (NEM) lifted wholesale electricity prices in New South Wales and Queensland in late 2024, according to the Australian Energy Market Operator (AEMO). The Federal regulator’s report for the fourth quarter of last year noted that average wholesale prices in the northern states were well above those of Victoria and South Australia. AEMO found that a fall in output of black and brown coal-fired generators led to higher overnight electricity prices across the national energy market. In the last months of 2024, however, renewable energy reached a record 46 per cent share of the overall NEM supply mix.
National strategy on small business support
Commonwealth, state and territory governments have committed to advance the growth of small businesses through the release of a National Small Business Strategy. Federal Small Business Minister Julie Collins said the strategy would seek to promote small business in government decision-making, with small business comprising around 97 per cent of all businesses in Australia. Ms Collins said almost 2.6 million small businesses employed around 5.4 million people, or about 42 per cent of the private sector workforce. The strategy noted that the construction sector was the industry with the largest component (17.2 per cent) of small businesses.