Increased trade with Southeast Asia will help protect the Australian economy from the impact of America’s tariffs on global trading partners, according to Trade Minister Don Farrell.
The Minister told an audience in Sydney that Australia has historically prioritised a small number of regional trading partners, but that opportunities existed across Asia in industries such as critical minerals and renewable energy.
“For too long we flew over southeast Asia, to drop goods off in China, in Japan and South Korea,” Minister Farrell told the Australian Financial Review Asia Summit 2025, proudly supported by ANZ.
“And we missed an opportunity there, in our immediate region where you’ve got a growing middle class, to sell more to southeast Asia.”
Farrell also made reference to the strong and growing diaspora communities in Australia from the Philippines, Vietnam and India.
“The opportunities for building a relationship with southeast Asia are there, we have to take advantage of it,” the Minister said.
Farrell’s Five
In his speech, Minister Farrell acknowledged 2025 has been a “challenging year,” but warned the audience that he thought 2026 was “only going to get more complex”.
He said it’s in Australia’s interest to expand trade and investment networks, remove barriers to trade and increase productivity at the border.
The Minister outlined five key principles: maintaining free and open markets, global trade governed by rules, cooperation, commitment to not leaving workers and businesses behind, and refusing to compromise on fundamental values and interests.
He said the government had already upgraded its trade agreement with ASEAN, is reviewing Australia’s agreement with Indonesia and is seeking to expand its relationship with India.
“We will also work together with the region across multiple forums – APEC, the OECD, the G20, every chance we get – to defend open global trade and advocate for reform to the WTO,” Minister Farrell said.
Export credit agency importance grows
The Minister also highlighted the work of Export Finance Australia in supporting transactions across the region in challenging markets or industries.
As has been reported by ANZ Insights in our story on Indonesia’s renewable energy transition, the role of export credit agencies is critical for increasing trade with South East Asia neighbours in challenging markets or industries.
Minister Farrell specifically referenced EFA’s support for transactions in renewable energy, sustainability and infrastructure projects across Thailand and Vietnam.
“One in four EFA-supported transactions are in southeast Asia – supporting our exporters to expand into the region, and helping deliver quality infrastructure to meet the needs of our partners,” he said.
Minister Farrell also spoke positively in a Q&A after the speech about India as a destination for Australian investment, noting that Australian manufacturing into India has doubled.
As has been noted in ANZ Insights, India’s renewable energy investment is expected to lift demand for critical minerals, while policymakers attempt to position Australia as a supplier of processed critical minerals.
Alexander Liddington-Cox is a contributor with ANZ Insights.
