Australian investors and business should not be surprised if and when US president-elect Donald Trump enacts sweeping changes, says Minister for Foreign Affairs Penny Wong.
Speaking at a Conexus Financial* Political Series event in Sydney this month, Wong said Labor would continue to strongly support the US alliance under a second Trump presidency despite its policy of co-operating more with China.
“There is strong longstanding bipartisan support for the alliance in both Australia and the United States, and the United States is our principal strategic relationship,” Senator Wong told the Political Series luncheon, in partnership with BT.
Asked what to expect from the next White House administration, Wong said Australians should take Trump at his word.
“President Trump has campaigned on change. He’s made it clear he’s determined to change things. So, we shouldn’t be surprised if there is change,” she said.
The minister said Australia should be “confident” in its ability to work with the US despite what is widely expected to be an uncertain and volatile period under a second Trump administration.
“Certainly, the government will be working very hard on those issues which matter very deeply to us – obviously AUKUS, but obviously also trade and our trading position.”
‘Renewable energy superpower’
Wong, formerly Minister for Climate Change, also challenged the audience of financial services leaders to embrace sustainability and decarbonisation of the economy, despite US President-elect Donald Trump vowing to pull out of the Paris Agreement.
Nearly 200 governments, including Australia, are signatories to the 2015 international treaty, which aims to slash greenhouse gas emissions by almost half by 2030 and achieve net zero by 2050.
The withdrawal of the United States, for the second time, would make it one of the only countries not to support the 2015 international treaty.
Despite acknowledging the challenges of transitioning net zero emissions by 2050 while preserving existing industries and jobs, and securing economic growth, Wong pointed to the ethical and economic imperative.
“Our Government is committed to achieving net zero and becoming a renewable energy superpower,” Wong said.
“We know the economics of renewable energy are so strong, and it is in our national interest to embrace that and to expand renewable energy.
“We will do as we have always done and ensure Australia is doing its part to transition its economy and keep the Paris Agreement goals in reach.”
The comments came just ahead of the government’s controversial decision to amend the Future Fund’s mandate to encourage investment in renewable energy, alongside housing and national infrastructure.
She also called for more private sector investment in the Asia-Pacific region.
“As engaged as some in the business community already are, we need to see much more from the private sector,” she said.
“I’ve said that smart business will take the opportunities created by the [Southeast Asia Economic] Strategy. Smart businesses will do more business in Southeast Asia. And smart businesses will see the advantage in Australia’s Asian diasporas.”
