The first stage of a new US-China trade deal is a welcome confidence boost for global markets but there are concerns for Australia's resource exports, Trade Minister Simon Birmingham says.
The United States and China have signed an initial trade deal that will roll back some tariffs and boost Chinese purchases of US products, defusing an 18-month row between the world's two largest economies but leaving a number of sore spots unresolved.
But the deal does not fully eliminate the tariffs that have slowed the global economy.
"I think this is a truce rather than a complete elimination of trade tensions between the US and China," Senator Birmingham told 2GB radio on Thursday.
"What we've seen is that it's a stage one deal, so obviously there are further stages that the US and China hope to be able to achieve.
"But it is to the testament of both parties that they have negotiated this in a way that has exceeded expectations."
He said there was more upside for Australia than downside.
"Where we are exposed, in areas such as our wine industry for example, we will still enjoy a 14 per cent tariff differential relative to the United States," he said.
"In relation to beef, a tariff differential of more than seven per cent."
While China may look to the US for "a bit more oil and gas", the minister said Australian gas producers remained in a strong position because of long-term contracts already having been locked in.
The centrepiece of the deal is a pledge by China to purchase at least an additional $US200 billion ($A290 billion) worth of US farm products and other goods and services over two years, above a baseline of $US186 billion ($A270 billion) in purchases in 2017, the White House said.
Commitments include $US54 billion in additional energy, $US78 billion in extra manufacturing purchases, $US32 billion more in farm products and $US38 billion in services.
Minerals Council of Australia acting chief Gavin Lind said increased confidence following the deal should lead to greater demand for Australian products, especially from growing Asian economies who rely on our world-class minerals for infrastructure, energy, transport and communications.
But there was some uncertainty around the proportions of LNG, coal and gas that make up the deal.
"The physical capacity of US energy production and transport infrastructure suggests the US may be challenged in supplying $US26.2 billion in energy to China," Mr Lind said.
"Yet even half of this supply volume would represent a significant shift."
He was also concerned the deal would "undermine the principles of free trade and multilateralism" which have underpinned Australia's bipartisan approach to trade policy for many decades.
CommSec chief economist Craig James said much would depend on phase two of the deal.
"China says that the extra purchases of US goods won't be at the expense of other countries. We'll have to wait and see," he said.
"But overall, today's agreement is a positive first step for the US, China and the world more broadly."