Comment
GEOFF CRITTENDEN – CEO, Weld Australia
Manufacturing for a sustainable future
Australia must maintain a strong local manufacturing industry and manufacture value-added products domestically.
T
HE war in Ukraine has changed the world. Over the course of the last month, the world has returned to a pre-1989 Cold War state—with the added threat of nuclear and chemical weapons. How has this happened? Well, during the intervening 30-odd years since the end of the Cold War, many of the democratic nations of the world have settled into complacency on several fronts. This has invited the autocratic global states to try their luck—the war in Ukraine is just one result. 8 MAY 2022 Manufacturers’ Monthly
The sanctions placed on Russia by Western nations will have an enormous impact on their economy. Australia and the United States have prohibited the import of oil, refined petroleum products, natural gas, coal and other energy products from Russia. The United States, United Kingdom and European Union have introduced unprecedented financial penalties on Russia. Exporting goods to Russia—including cars, clothing, chemicals and art—has been banned. Russian imports are attracting taxes of 35 per cent, and
the assets of Russia’s central bank have been frozen. Rightly so. The impact of these measures is already being felt. The cost of basic products has skyrocketed, job losses are looming, and hundreds of international companies are pulling out of Russia. Even McDonald’s has closed their 800 restaurants in Russia. Imagine if Australia was on the receiving end of such draconian sanctions. It is not such a far-fetched proposition. China has already placed sanctions on Australian
barley, wine, beef, seafood, cotton and coal. China is our largest trading partner by far. According to figures from DFAT, China holds a 35.3 per cent share of Australia’s export market, accounting for $167.6 billion annually. Coming in second—by a long way—is Japan, with just 11.8 per cent of Australia’s export market. Given the huge proportion of Australia’s export market the country holds, imagine if China imposed harsher economic sanctions. Imagine if China decided not manmonthly.com.au
