Australia, Trade Policy and the Global South: An Odyssey over Five Decades?

Abstract

Like many states in the Global South, the Australian economy relies heavily on the natural resource sector for a large proportion of its export earnings. Four decades ago, this basic similarity eventually induced Australian governments to become ‘fellow travellers’ with the G77 quest for a new international economic order. When that quest was put to rest by the rise of neo-liberalism, Australian governments then became fervent believers in free rather than managed trade; but in the contemporary era where neo-liberalism is now a dying policy creed, Australia's current resource boom begs the question of whether the time is now ripe for Canberra to reinvent this role. What the rationales might be for that ‘back to the future’ policy move is explored in the context of Australia's iron ore trade with China.