Global perspective

Global perspective

Trump’s arrival means it’s time for Australia to review our relationship – and perhaps learn to say ‘no’

The Trump administration may prove to be a turning point for US-Australian relations. Reuters/Kevin Lamarque

Prime Minister Malcolm Turnbull is discovering the political cliché “change the government, change the country” might have bigger implications for Australia’s relationship with the United States than anticipated.

We might re-engineer the cliché to read “change the government, change its foreign policy”, and thus how America manages its relationships with friends and foes alike.

If it has not already dawned on Turnbull and his foreign policy advisers then it should have: a new American administration like no other in recent memory will require a rethink in how Australia calibrates its relations with Washington.

Not since the Gough Whitlam’s Labor government of 1972-75 has such a potentially awkward relationship existed between Australia and its principal ally, or to use another description, custodial power.

Whitlam parted company with his predecessors in his testy interactions with the Richard Nixon White House. Whitlam felt under no obligation to espouse a “pro-American” perspective on matters relating to the war in Indo-China in particular.

Many Australians found this refreshing.

While it was inevitable that a moment would arise when Australian and US interests would find themselves out of kilter, it has perhaps come more quickly than anticipated, driven by the arrival in the White House of a man untethered from principles that have guided American foreign policy for generations.

In Trump’s Inauguration speech there was one passage that should have given Turnbull and his advisers pause, even if these words might be dismissed as a rhetorical flourish:

We assembled here today are issuing anew decree to be heard in every city, in every foreign capital, and in every hall of power. From this day forward, a new vision will govern our land, from this day forward, it’s going to be only American first, America first.

He added:

Protection will lead to greater prosperity and strength.

The latter observation could hardly have been more antagonistic to the free trade principles and practice on which Australian prosperity rests, or for that matter be regarded as anything more than an affront to America’s own history.

In 1930, Congressmen, Senator Reed Smoot and Representative Willis C. Hawley sponsored legislation that raised punitive tariffs on some 900 imports, and in the process added poison to the well of slowing global trade, as The Economist put it.

Smoot and Hawley did not cause the Great Depression or add significantly to it, but the legislation represented a populist response to political anxiety.

Nearly a century later, an American president appears to hold the view that an “America first” approach – or a form of isolationism – will serve his own country’s economy well and those of its friends.

This view, even if you accept that the trade liberalisation pendulum has swung too far, is not sustainable if economic growth globally is to be nurtured.

Otherwise, disaster beckons, including a global entrenchment that will serve no-one’s interests, including America’s.

Trump’s stroke-of-a-pen end to America’s involvements in the liberalising Trade Pacific Partnership gave expression to his antagonism towards trade deals generally and spelled a pause in American leadership of a laborious process of opening markets and reducing trade barriers.

From the establishment of the General Agreement on Tariffs Trade, to the formation of the World Trade Organisation, to progress towards open markets under the Uruguay Round – alongside a plethora of bilateral trade deals – an era of liberalising trade has underpinned global prosperity.

So, the question becomes: how should the Turnbull government respond to these new circumstances in a way that serves Australia’s interests, and in an environment in which the world is in disarray? And it is likely to become more so if the early stages of an idiosyncratic Trump administration is any guide.

Policymakers need to think outside the narrow confines of what has been regarded as “America first” policy postures that have dictated Australia’s foreign policy choices, to consider what might be regarded as a less dependent relationship on our security guarantor.

None of this is an argument to weaken Australia’s commitment to the ANZUS alliance, nor our alignment with what we have always regarded as America’s better angels. But the time has come for a reassessment.

Trump’s ascendancy to power reminds us there is no such thing as permanent alliances, simply permanent interests.

Australia is not obliged to make a choice between its security in the form of its treaty arrangements with the US and its commercial interests, namely with China. But it does need to move to a position where it gives itself more flexibility in addressing its security and other challenges.

In other words, arguments for greater self-reliance – including defence preparedness – grow by the day.

How Turnbull achieves such a shift will prove a test of his diplomatic and leadership skills, and indeed his understanding of our country’s history. After relying on great and powerful friends for our security, we may be entering a new and distinct phase.

Whatever judgements might be made about the likely trajectory of a Trump administration, early days suggest that what he said on the campaign trail will guide his actions in office.

So when he talks about a form of isolationism summed up by the phrase “America First” he must be taken at his word, until demonstrated otherwise.

This poses obvious challenges for Australian policy. Do we gravitate towards the sort of world defined by Trump – with its risks of a return to a 1930’s isolationism or perhaps a form of 19th century mercantilism – or do we assert our own separation from such a worldview?

Are we seeing the end of “pax Americana”, in which the US proved to be the indispensable cornerstone of global security in the rebuilding of Europe, the containment of the Soviet Union, and a security presence in Asia post the Korean war that has enabled an extraordinary economic transformation in our own region to our advantage?

Turnbull needs to ask himself whether it is in Australia’s national interest for institutions like the United Nations, World Trade Organisation, the North Atlantic Treaty Organisation to be weakened.

Is it in Australia’s interests for there to be a confrontation between the US and China on trade, or security in the South China Sea?

Or a return to a ground war in the Middle East that would demand a larger commitment from Australia with unknowable consequences?

Lessons might have been learned from an earlier disastrous intervention.

Finally, Turnbull should resist pressure from his the right wing of his party, salivating over the arrival of an authoritarian in the White House.

Turnbull was derided over his initial response to Trump’s decision to abandon the TPP, in which he said China may wish to fill the gap as if, reflexively, he needed to fall in line with Washington.

While the TPP may be dead, Turnbull and his ministers shouldn’t be blamed for trying to keep alive an idea that would have provided a basis for a liberalising trade and investment zone in the Asia-Pacific.

Contrary to the views of its critics, the TPP was always about more than simply a trade liberalisation mechanism. It was also aimed at providing a framework for further action in counterpoint to China’s growing dominance.

Finally, Turnbull might consider the example of former Canadian Liberal Prime Minister Jean Chretien, who politely declined when he came under pressure to join George W. Bush’s cavalry in the invasion of Iraq.

Chretien, as leader of a country that shelters under a US security umbrella and is a fellow NATO member, said “no”, or “non” in his native Quebecois.

Last time we checked the sky had not fallen in for Canada.