Tensions Rise Inside Reunited Coalition Over Trade Deal and AI

The Liberal and National parties are showing their first signs of strain since they split earlier this year, as the junior partner takes hardline stances on free trade and artificial intelligence. Friction emerged between the reunited parties during two closed-door meetings in Canberra this week, driven largely by the disruptive sway of One Nation on Coalition policy.

Trade Deal Friction

In a Liberal-only meeting on Tuesday, former minister Alex Hawke criticized Nationals leader Matt Canavan for declaring both parties opposed a proposed trade deal with the EU without leadership approval. Hawke argued that Canavan had no right to dictate the Liberal position and warned that voters could see the economic damage caused by US tariff stances. Moderate Liberals also have concerns about the substance of the deal worked up by Trade Minister Don Farrell, which critics argue locks future governments into the Paris climate accord, shortchanges dairy and red meat producers, and embeds pro-union labour rules. Meanwhile, Labor has used question time to wedge the Coalition on the deal and has not indicated it will make any changes to win support.

Artificial Intelligence Clashes

On AI, the Nationals and conservative Liberal Garth Hamilton are pushing back against a mooted Liberal-Labor consensus on welcoming data centres and changing copyright arrangements. David Littleproud used a Nationals-only meeting on Monday to argue against weakening copyright laws, pointing to a planned $32 billion data centre in his Queensland seat of Maranoa that he says could create 1400 jobs. However, Littleproud also cast doubt on the project by stating its owner could lose social licence if it built the 20,000 hectares of renewable energy needed to power it. Hamilton became the first major-party MP to call for a moratorium on data centre construction, a stance also supported by the Greens, while Nationals senator Ross Cadell called copyright issues a form of property theft.

Polling and Leadership

Recent polling from the Resolve Political Monitor showed Labor's primary vote at 29 per cent, One Nation's at 25, and the Coalition at 23. Nationals sources said the party still fears big losses to One Nation but has seen improved regional polling, while Liberal MPs note that leader Angus Taylor is more relaxed in the job eight months in, with slicker social media and more policy announcements.

Context

The Liberal and National parties form a long-standing conservative political alliance in Australia, commonly referred to as the Coalition, which traditionally contests federal elections together to form government or opposition. Trade negotiations and economic policy remain central battlegrounds for major parties, particularly regarding how international agreements impact domestic agricultural sectors and regional industries.