The former deputy PM says it could jeopardise valuable trade with Indonesia and Middle Eastern countries

This article is more than 1 year old

This article is more than 1 year old

Barnaby Joyce has warned the Australian government has “got to be careful” not to imperil trade relationships with its plan to consider moving the embassy in Israel to Jerusalem.

The intervention by the former deputy prime minister follows backlash from 13 Middle Eastern and North African countries, Indonesia and Malaysia as well as warnings from a senior adviser to Mahmoud Abbas, the Palestinian president, that the move could jeopardise the prospect of peace in the Middle East.

On Wednesday Channel Seven reported that Indonesia’s foreign minister warned the Morrison government that proceeding with the announcement on Tuesday would be considered a “slap in the face” to Indonesia.

Earlier, Scott Morrison continued to defend the idea, arguing the free trade deal with Indonesia is not at risk as a result and crediting the Liberal candidate in Wentworth Dave Sharma for persuading him it may be possible the embassy move would actually help achieve a two-state solution.

Joyce told Sky News the government has “got to be careful” because many countries that import Australian agricultural exports including Indonesia, Qatar, Saudi Arabia, Bahrain and Jordan have “lots of sensitivities here”.

He noted Indonesia was the biggest buyer of Australian wheat and cattle, while the biggest buyer of live sheep was in the Middle East.

Joyce said that he wasn’t proposing that the move would necessarily hurt trade relationships, arguing that countries were unlikely to stop trade with the United States despite the Trump administration’s decision to move its embassy.

But the Australian government has to “make sure we take them with us” and exercise “absolute care in this one”, he said.

Joyce noted Morrison had spoken with the Indonesian president Joko Widodo, adding that “he’s going to have to settle people down”.

Channel Seven reported that the Indonesian foreign minister Retno Marsudi had sent Whatsapp messages to Australia’s foreign minister Marise Payne on Monday – shared with senior government members – in which Marsudi vented anger about the substance and timing of the announcement, which coincided with a visit by Palestinian foreign minister Riyad Al Maliki.

“Is this really necessary to do this on Tuesday? It will be a really big blow … It will slap Indonesia’s face on the Palestine issue,” the message reportedly said. “This will affect bilateral relations.”

Morrison said Australia had a “very good” relationship with Indonesia and he had “warm exchanges” with Widodo over the government’s change in policy.

Morrison told reporters in Canberra the strength of relationship enabled “neighbours to have different views on things from time to time” and while Australia was a sovereign nation able to consider its policy “all we have done” so far is consider moving the embassy.

The prime minister spruiked the merits of considering the embassy move, crediting Sharma for explaining that “this question could be considered in the context of support for a two state solution”.

“Up until that time nobody had been making that case. Up until that time this issue was considered taboo because it was seen to be an anathema to a two state solution.”

Morrison said that given “conventional means” had not achieve a two-state solution Australia is prepared to “consider other options that achieve the objectives of peace and a two state solution”.

Despite Morrison crediting Sharma for changing his thinking on the issue, the deputy Liberal leader Josh Frydenberg stressed it was not a bid to win votes in Saturday’s Wentworth byelection, labelling that idea “insulting”.

A spokesman for Payne said she and Marsudi “had a constructive discussion on Tuesday regarding Australia’s announcement”.