While Trump is a unique and unorthodox politician, Hockey said that his approach to trade and defence policy represents the new normal for US politics. "We are not going back," Hockey said. "America has changed, global commerce has changed, geo-politics has changed and it's going to have a profound impact on every part of the world. "Any business in Australia that operates with blind indifference to what's happening in Washington is going to suffer in one form or another. From cyber-security laws to cross-border taxation to punitive trade measures, it's all changed and it's not going to go back any time soon." Joe Hockey has built a strong personal relationship with Donald Trump. Hockey said Australia had to prepare for a world in which global forums such as the World Trade Organisation and the United Nations play an increasingly marginal role.

Loading "The US has basically torn up the whole multinational framework," he said. "Relationships now are overwhelmingly bilateral not multilateral. And I don't think this is exclusive to the Republicans." In this climate Australia will have to work harder than ever before to maintain good relations with US leaders rather than rely on the countries' longstanding bilateral relationship, he said. Hockey pointed to the policy positions of leading Democratic presidential contenders who, while opposing Trump's abrasive style, share his protectionist trade instincts and resistance to deploying American troops overseas. "Democrats on the debate stage are talking about tearing up existing trade deals," he said. "The Democrats look even more confused on trade than the Republicans."

Expanding on an argument he made in a headline-grabbing speech in October, Hockey said both Democrats and Republicans are increasingly reluctant to use America's global clout to promote free trade. In that speech Hockey criticised Trump's trade policies, saying the US risked losing its economic dominance unless it again champions the free flow of goods and services across borders. Joe Hockey will remain in Washington DC to take up a role in the private sector. Credit:Evelyn Hockstein Protectionist trade policies also make the world a more dangerous place, he said. "History proves that economic isolationism is a precursor for war," he said. "If a nation becomes economically isolated then history proves it can end up accelerating domestic nationalism fuelling outward facing aggression." Hockey said the partial trade deal signed by the US and China in Washington on Wednesday (Thursday Australian time) was a "step in the right direction" to a fairer trading system.

Loading But he disputed Trump's claim that it represents a "momentous" change in trading relations between the two economic superpowers. "It's written on rice paper: anyone can tear it up at any moment," he said. "If it's just about purchasing more goods then that's not a solution. It has to be structural." Asked for his predictions on the 2020 contest, Hockey said: "At this point in time I can certainly see a pathway for Donald Trump to be re-elected. He's a formidable campaigner. Donald Trump defines and destroys his opponents better than almost anyone else I've ever seen." Donald Trump defines and destroys opponents better than almost anyone else I've ever seen.

He added that many of the lowest-wage earners in America have seen their wages rise in recent years and that unemployment is at near-record lows, boosting Trump's re-election hopes. As for the Democratic contest he said: "My instinct is the candidate who is going to win wasn't on the debate stage this week. The amount of money Michael Bloomberg is spending on television advertising is extraordinary." As ambassador, Hockey has fought off threats of tariffs on Australian steel and aluminium and helped convince the Trump administration to resettle refugees from Manus Island and Nauru. Arthur Sinodinos will soon replace Joe Hockey as Australia's ambassador in Washington. Credit:Janie Barrett He also worked behind the scenes to calm the President's anger over Alexander Downer's role in triggering an FBI probe into his ties with Russia. Hockey developed a close personal relationship with the President and played golf with him several times. Trump also hosted Hockey for a private farewell meeting at the White House on Tuesday (Wednesday AEDT).