After the extraordinary attention accorded to the visit to Australia by the leader of a country whose economic importance to us is limited – if prospective – it might not be a bad idea to put all this into perspective.
This is especially so when the presence in Australia of Israeli Prime Minister Benjamin Netanyahu is set against the significance of a forthcoming visit by China’s second-ranking official, Premier Li Keqiang.
Let’s compare respective trading relationships:
- In 2015-16, Australia’s two-way trading partnership with China was worth A$150 billion, with trade heavily in our favour. Australian exports amounted to A$89 billion.
- By contrast, the trading partnership between Australia and Israel amounts to less than 1% of the Australia-China trading relationship.
- In 2015 Australia ranked 37th globally as a source of Israel’s imports (trade in goods and services), and 23rd as a destination for Israeli exports.
- On another measure, merchandise exports to Israel amounted to 0.1% of Australia’s exports, or a ranking of 44th among our trading partners.
These numbers don’t address the significant opportunities that exist for co-operation and investment in technical innovations between the two countries, including cyber-security – where Israel is a world leader.
However, set against the importance of China, Israel’s economic relationship is a sideshow – and one that is not without cost when Australia’s broader Middle East interests are taken into account.
Read the full article by Tony Walker at The Conversation.