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00:00HE WILL ATTEND A RECEPTION HOSTED BY PRESIDENT TRUMP TUESDAY NIGHT BUT THE WHITE HOUSE HAS NO ALL BUT CONFIRMED THERE WILL BE NO ONE-ON-ONE MEETING. THE BRIEF ITINERARY LISTS SEVERAL BILATERAL TALKS. TENSIONS BETWEEN THE LEADERS HAVE INCREASED OVER TARIFFS AND CRITICAL MINERALS. LET'S BRING IN THE DIRECTOR OF THE ECONOMIC SECURITY PROGRAM AT SYDNEY UNIVERSITY. DOES THIS GIVE US AN INDICATION OF THE LACK OF A SIT DOWN BETWEEN THE TWO LEADERS OF WHERE THE RELATIONSHIP IS HEADED AND POTENTIAL PITFALLS AHEAD? THE AUSTRALIAN PRIME MINISTER HAS BEEN ATTEMPTING TO GET A MEETING WITH PRESIDENT TRUMP FOR QUITE SOME TIME. LUCKILY AUSTRALIA'S DEFENSE MINISTER DID MEET WITH HIS COUNTERPART LAST MONTH IN WASHINGTON, D.C. WHEN YOU THINK OF PRIME MINISTER ALBANESE AND PRESIDENT TRUMP, THEY COME FROM DIFFERENT PARTIES. IN THE UNITED STATES, DONALD TRUMP IS MUCH MORE INTERESTED IN ENERGY DOMINANCE AND DEFENSE. SO YOU SEE DIFFERENT PRIORITIES, DIFFERENT POLITICAL PARTIES, BUT IT'S IMPORTANT THAT THE AUSTRALIAN PRIME MINISTER DOES EVENTUALLY MEET WITH PRESIDENT TRUMP. HOPEFULLY THAT COULD HAPPEN IN OCTOBER OR NOVEMBER IN SEOUL, BUT THAT MEETING COULD ALSO BE DOMINATED BY THE FIRST TRUMP-XI MEETING IN ABOUT FIVE YEARS TIME. THEY HAVE NOT MET YET SO HOPEFULLY THERE CAN STILL BE A MEETING IF THEY GET THEIR DUCKS IN A ROW. YOU WOULD THINK THAT WASHINGTON WOULD BE INTERESTED IN BUILDING THIS NON-CHINESE SUPPLY CHAIN AROUND SOME OF THESE CRITICAL MINERALS. HOW CONSEQUENTIAL COULD THIS BE FOR THE U.S.-AUSTRALIA ALLIANCE? THAT IS EXACTLY RIGHT. ONE OF THE AREAS WHERE AUSTRALIA AND THE U.S. COULD WORK TOGETHER MORE CLOSELY IS AN AREA PRESIDENT TRUMP HAS MENTIONED FOR YEARS THAT HE IS INTERESTED IN, CRITICAL MINERALS. WHILE THE U.S. WANTS TO DO A LOT OF ITS OWN MINING AND PROCESSING DOMESTICALLY, IT SIMPLY DOES NOT HAVE ALL THE CRITICAL MINERALS THAT IT NEEDS SO IT NEEDS PARTNERS LIKE AUSTRALIA THAT HAVE RARE EARTH ELEMENTS AND OTHER CRITICAL THINGS THAT GO NOT ONLY INTO ENERGY SOURCES BUT A LOT OF DEFENSE CAPABILITY. FOR INSTANCE, THERE'S A STRONG LINK BETWEEN AUKUS AND CRITICAL MINERALS BECAUSE THERE'S FOUR TONS OF CRITICAL MINERALS THAT GO INTO EVERY UNIT. SO ANY PART OF THE MEETING WILL BE A CRITICAL MINERALS ACCORD. IT IS ONE AREA THAT BOTH LEADERS COULD SEE I TO ION. THE TRICK FOR AUSTRALIA WILL BE CONVINCING PRESIDENT TRUMP AND HIS ADMINISTRATION TO INVEST DOMESTICALLY AND AUSTRALIA. RIGHT NOW, THE U.S. HAS INVESTED A LOT IN MINERALS PROJECTS IN THE U.S. THEY HAVE INVESTED IN AUSTRALIAN COMPANIES TO MIND IN THE U.S. AND PRESIDENT TRUMP HAS ALSO SPENT A LOT OF MONEY IN A HISTORIC DEAL EARLIER THIS YEAR IN JULY. THERE WERE $550 MILLION SPENT ON THAT RARE EARTH COMPANY AS WELL AS APPLE PUTTING IN 500 MILLION. SO ALL THAT INVESTMENT IN THAT ONE MINE, AUSTRALIA WOULD LIKE TO SEE SOME OF THAT INVESTMENT AND SOME JOINT VENTURES SO WE CAN CODEVELOP THIS CRITICAL ASSET. WHAT ABOUT WHAT SORT OF INVESTMENTS ARE NEEDED FROM THE AUSTRALIAN SIDE, MORE PUBLIC INVESTMENTS INTO RARE-EARTH? THAT IS A PRIORITY OF THE GOVERNMENT AS WELL. THEY HAVE A CRITICAL MINERALS STRATEGY HOPING TO INVEST MORE IN AUSTRALIAN MINING AND MAPPING THESE CRITICAL MINERALS BECAUSE ALTHOUGH WE KNOW WE HAVE A LOT OF THEM WE DO NOT KNOW EXACTLY THE WANTED TO EASE AND WHAT WILL BE INVOLVED IN TERMS OF DIGGING THEM UP AND THE PROCESSING. SO OVER THE NEXT FEW YEARS WE WILL SEE THE AUSTRALIAN GOVERNMENT INVEST MORE DOMESTICALLY. EVEN THE RESOURCES MINISTER HAS FLOATED THE IDEA OF LOWERING THE PRICE. THAT WOULD BE A GAME CHANGER FOR THE INDUSTRY BECAUSE CHINA IS DOMINATING THAT SPACE. THAT IS ABLE TO FLOOD THE MARKET WITH A SURPLUS OF MINERALS TO TANK THE PRICE. AND IT WOULD REALLY GIVE OUR INDUSTRY CONFIDENCE AND GIVE BANKS AND SUPERANNUATION COMPANIES CONFIDENCE TO MAKE LONGER-TERM INVESTMENTS IN AUSTRALIAN MINING AND OTHER AREAS OF COOPERATION WHERE COUNTRIES COULD POSSIBLY DO THE PROCESSING. WE SEE A LOT OF PROCESSING HAPPENING IN MALAYSIA. THERE'S QUESTIONS OVER WHETHER THAT COULD ALSO HAPPEN IN VIETNAM. SO THERE'S A LOT TO DISCUSS. UNDEREXPLORED BUT IT DOES MAKE YOU WONDER WHETHER THE COMPETITION FOR THE LIKES OF AUSTRALIA IS JUST WITH CHINA GIVEN HOW SOME OF THESE OTHER COUNTRIES ARE ENHANCING THEIR PROCESSING CAPABILITIES HOW ELSE CAN AUSTRALIA CAPITALIZE ON ALL OF THIS? ONE OF THE WAYS WOULD BE ACTUALLY TO WORK WITH A BUYERS CLUB ON DIFFERENT COUNTRIES, NOT JUST THE U.S. BUT CANADA, SOUTH KOREA, JAPAN, PERHAPS THE U.K. OR INDIA. I KNOW THEY HAVE BEEN THINKING AND TALKING ABOUT CRITICAL MINERAL SUPPLY CHAINS FOR QUITE SOME TIME NOW. BASICALLY NO COUNTRY CAN GO IT ALONE. THE U.S. CANNOT AND AUSTRALIA CANNOT. THE PROBLEM IS GETTING THESE COUNTRIES TO COORDINATE, ESPECIALLY IN AN ERA WHERE COUNTRIES ARE MORE FOCUSED DOMESTICALLY. WE ARE EVEN SEEING THAT RELATIONSHIP BETWEEN THE U.S. AND INDIA UNDER STRAIN WITH TARIFFS AND INDIA AND PRIME MINISTER MODI TALKING ABOUT HOW INDIA SHOULD MAKE MORE THINGS DOMESTICALLY. WE WOULD LIKE TO SEE LESS TRENDS TOWARDS COUNTRIES GOING IT ALONE . FOR SEVERAL DECADES, CHINA HAS INVESTED IN STATE-OWNED ENTERPRISES IN MINING. THERE'S EASING OF PERMITTING, ETC.. FOR ANY COUNTRY TO KIND OF COMPETE WITH THOSE DECADES OF INVESTMENT AND THE HEADSTART CHINA HAS, COUNTRIES WILL NEED TO COME TOGETHER FOR THE INVESTMENT, THE MINING, THE PROCESSING. SOMETIMES YOU HAVE TO WORK BACKWARDS TO UNDERSTAND WHAT THESE WILL BE USED FOR AND THEN DECIDING WHERE TO INVEST. HOW WELL-POSITIONED IS AUSTRALIA AND PLAYING THE MEDIATOR ROLE? WE HAVE SEEN BEIJING TRYING TO INCREASE MOVES IN THE PACIFIC ISLAND. WHEN IT COMES TO BROADER GEOPOLITICAL RISKS, HOW WELL-POSITIONED IS AUSTRALIA IN DEALING WITH ALL THESE OTHER COUNTRIES AS WELL? GREAT QUESTION. AUSTRALIA HAS BEEN BUSY WORKING WITH THE PACIFIC ISLANDS. TO KIND OF WORK OUT SOME OF THESE SECURITY DEALS. BECAUSE AUSTRALIA KNOWS IT IS A COMPETITION AND PACIFIC ISLAND LEADERS ARE VERY SAVVY. THEY KNOW THERE IS GEOPOLITICAL COMPETITION AND THEY ARE TRYING TO NEGOTIATE FOR AS MUCH AS THEY CAN. AUSTRALIA HAS BEEN A LONG-TERM PARTNER AND IN TERMS OF DEVELOPMENT AID AND WORKING WITH THEIR NATIONAL POLICE FORCES WE EVEN SAW A NATIONAL RUGBY TEAM THAT WILL BE COMING THROUGH TO AUSTRALIA IN A SOFT POWER INITIATIVE RECENTLY THEY HAVE BEEN TRYING TO NEGOTIATE A DEFENSE PACT WITH PAPUA NEW GUINEA. I WOULD NOT SAY THAT IS A BROADER COMMENTARY THAT CHINA IS WINNING THE STRATEGIC COMPETITION. I WOULD SAY THAT DOMESTIC FACTORS IN PAPA NEW GUINEA MADE THE TIMING VERY DIFFICULT BUT THE BOTTOM LINE IS THAT THE PACIFIC ISLANDS ARE IN A GEOPOLITICAL HOTBED. THEY WOULD BE A PLACE WHERE A COUNTRY LIKE CHINA MIGHT WANT TO STAGE MILITARY ACTIVITIES IN THE FUTURE AND ALSO HIGHLY ATTUNED TO THE NEEDS OF ITS NATIONS IN TERMS OF REDUCING THE IMPACT OF CLIMATE CHANGE. SO AUSTRALIA CAN WORK MORE CLOSELY AND STRATEGICALLY BY HELPING IN TERMS OF DIFFERENT CLIMATE CHANGE INITIATIVES. BUT THERE SHOULD BE ENGAGEMENT FROM THE U.S., JAPAN, SOUTH KOREA TO HELP THESE NATIONS DEVELOP AND BRING THAT MORE WITHIN OUR STRATEGIC ORBIT SO IT REMAINS A STABLE AND SAFE REGION. GREAT TO GET YOUR INSIGHTS. WE WILL HAVE MORE AHEAD ON AUSTRALIA. PLUS YOU CAN TUNE INTO THE BLOOMBERG AUSTRALIA PODCAST, WHICH DELVES INTO THE BIGGEST STORIES OF SHAPING THE COUNTRY'S IN GLOBAL BUSINESS.

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Trump Snubs Australia's Albanese at UNGA

Australian Prime Minister Anthony Albanese is in New York for the United Nations General Assembly, but President Trump’s itinerary excludes a meeting with the Australian leader. Hayley Channer from the US Studies Centre at the University of Sydney discusses the implications for bilateral relations, and why critical minerals may be one area of cooperation. (Source: Bloomberg)

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