Frank Yuan

Foreign affairs haven’t featured prominently in this election, but events are moving fast in the wider world with real implications for Australia. It looks like President Donald Trump, the Dealmaker-in-Chief, has finally achieved something on trade. 

No, his Chinese counterpart still hasn’t called. This is about the US-Ukraine agreement announced hours ago, which grants America privileged access to investing in Ukraine’s natural resources development.

Reportedly, the deal would partly reimburse the US for its future military aid to Ukraine but – likely thanks to Ukrainian negotiators’ effort – the Trump Administration is apparently no longer demanding repayment for the aid already given to Ukraine. As it turns out, even when Trump tells you that “you don’t have any cards”, there are alternatives to capitulation.

Contrast that with the bipartisan consensus in Australia (with voters gravitating away from major parties) on AUKUS, a huge financial contribution to America’s military industrial complex for the highly uncertain prospect of America actually delivering nuclear submarines, even before we get to the questionable strategic rationale for having those submarines.

Another lesson for Australia is that its natural resources can be leveraged for the benefit of the wider public. The mineral and hydrocarbon deposits in Ukraine are just too good for Trump to walk away from. Australia’s advantage is even greater – resource endowment, political stability, and quality of workforce. So, shouldn’t Australians also make better deals for themselves with mining or fossil fuel businesses?