Television Interview, ABC, 7.30

SUBJECTS: Trump Administration; Trade; AUKUS. 

HOST, SARAH FERGUSON: The Deputy Prime Minister and Defence Minister Richard Marles was in Washington on the weekend and he joins me now. Defence Minister, Deputy Prime Minister, welcome to the program.

DEPUTY PRIME MINISTER, RICHARD MARLES: Thanks Sarah. Good to talk to you.

FERGUSON: This morning, the Prime Minister said his phone call with President Trump went well. But the language of the President's Executive Order that we've seen since, and from senior figures in the White House, is very critical of Australia. Is anyone in the Administration going to be on our side during this debate?

MARLES: Well, I think we take what both the Prime Minister and the President have said at face value in terms of the conversation that they had this morning. And both of them had made clear that Australian exemptions from the tariffs that been put in place had come under consideration. That's not said lightly; it was said by the President in his media statement as it was said by our Prime Minister. And as they both made clear that was what they talked about. That was the agreement they reached in their conversation this morning which having spoken with the Prime Minister myself, he said was very positive, very constructive. And we’ll obviously now work diligently to put forward our case for those exemptions to apply.

FERGUSON: At the same time, there were people today including the President talking about there being no exemptions. They went further- they accused Australia of disregarding commitments to restrain our aluminium exports. First of all, on that, are those allegations accurate?

MARLES: Well, I mean, I can't speak for the former government in terms of what it did or didn't do- the former Australian Government. That's really a matter for them to explain. But, again, I come back to the point that I understand the words you're quoting from but in the discussion that was had today, in the President's own press conference, having signed the Executive Order, he made clear that Australian exemptions to this Order would be under active consideration. And that's where this is now at. As I say, we will now be taking this moment to make our case to the US Administration about why those exemptions should apply because it's good for both Australia and the United States that they do.

FERGUSON: Now the Prime Minister said about his phone call with President Trump that he talked about Australia's potential to supply critical minerals to the US. Was that raised as leverage?

MARLES: No. I think the opportunity to provide critical minerals to the United States has actually been something that's been talked about over a long period of time. This is an agenda that we have been pursuing with the previous American administration that we've now sought to pursue with the Trump Administration. The fact of the matter is Australia does have an abundance supply of rare earths, of critical minerals. There is an ability to put in place a supply chain coming from Australia which is an attractive proposition and it makes sense that we can do this with the United States. And I think there is interest under the Trump Administration to walk down this path.

FERGUSON: Well let me ask you that then, if that wasn’t raised as leverage, what leverage do you have?

MARLES: Well, ultimately, this is a matter of what is a good deal, if we want to think about it in that paradigm. Australia it is trading relationship with America is one where America has a trade surplus. We do roughly over $100 billion of trade every year. It's about two to one in favour of the United States. In that sense, having that trade in a manner which is tariff-free is very much in the interests of both countries but very much in the interests of the United States. As the President has pointed out, we're one of the few countries which has a trading relationship with America in those terms. So I don't think it is a good deal to move down a pathway of not having tariffs in place in respect of the trade which exists between our two countries. And to the extent that we are exporting into the United States, that is supporting American jobs. Now that is the case that we have been making and we'll continue to make to the US Administration and ultimately, I think, if there's anything that's been shown by the Trump Administration, they are clearly going to act in America's interest and it's in America's interest to walk down the path of having the exemption of these tariffs apply to Australia.

FERGUSON: Now Australia made the first of six payments- nearly $800 million to the US recently as part of the AUKUS deal to bolster American ship building capacity. Should we hold any subsequent payments until we get a tariff deal?

MARLES: We will walk down the path of pursuing the AUKUS arrangement as we have been. We announced an optimal pathway in March of 2023-

FERGUSON: If I could just bring you back to the question; do you see a potential for future payments to America to be linked to a deal on the tariffs?

MARLES: I'm trying to answer the question. We have been pursuing the optimal pathway from the moment that we have announced it. Back then, we announced that there would be payments by Australia to provide for the American industrial base, to increase the production rates and the sustainment rates of American Virginia Class submarines. We need that to occur in order for the transfer of the Virginias to happen to Australia. So, we are making the payment into the American industrial base in order to create the availability of American Virginias to come to Australia and we need that capability. The optimal pathway stands on its own terms. The reason that we're making the payments into the American system is what I have described and we will continue to do them and that's what is in Australia's interests.

FERGUSON: Now, the Prime Minister has announced a meeting of senior Australian representatives in Washington on February 25, I think is the date, with senior US representatives present. Who will attend that meeting and what's the purpose?

MARLES: Well, look, that is a matter still to be worked through. But we want to make sure we are doing everything we can to advance the broad range of interests that we have with the United States-

FERGUSON: So it's not about the tariffs, that particular meeting?

MARLES: It is about pursuing all the agendas that we have with the Trump Administration. I think the point I'd want to make is we want to maintain the sense of momentum that we have in the way in which we have been engaging with the Trump Administration. I was the first Defence Minister around the world to meet with the Secretary Hegseth. Penny Wong was- I think- the second Foreign Minister to meet with Secretary Rubio. We've now just had the second conversation between President Trump and Prime Minister Albanese. In fact, we really have hit the ground running in the way in which we're engaging with the Trump Administration. And we want to continue the momentum on that. Across all the equities that we have in our relationship with the United States.

FERGUSON: Now, Peter Dutton said this morning if the tariffs go ahead they will damage the relationship. Do you agree?

MARLES: Well, let's work on pursuing the exemptions that we are seeking. Let's take the fact that the United States President has agreed to give active consideration to an exemption in relation to Australia. That he acknowledged today in his statements that it is a trading relationship where America has the surplus. And that that is a basis upon which we can move forward. And we need to be focused on pursuing that. And I am confident that we will be able to pursue a productive relationship between Australia and America under the Trump Administration.

FERGUSON: Richard Marles, thank you very much indeed for joining us.

MARLES: Thank you.

ENDS