Asia: Crucial to Australia's trade future
Media release
16 February 2010
Australian exporters and investors have a remarkable opportunity to increase their engagement with Asia–the world’s most dynamic economic region, Parliamentary Secretary for Trade Anthony Byrne said today.
Speaking at the Australian Industry Group’s event on 'Trading with Asia' in Sydney, Mr Byrne urged Australian businesses to continue to establish strong economic links with a region crucial to Australia’s long-term national prosperity.
"Australia’s engagement with China and India, together with our traditionally strong commercial partners like Japan and Korea, has contributed to our economic recovery and the stability of our trade performance during the global downturn," Mr Byrne said.
"In 2008-09, eight of Australia’s top ten export destinations were from the Asia Pacific. Seven out of ten of our top ten importing nations were also from the region.
"China is expected to become the world’s second largest economy after the US sometime this decade.
"India, which is Australia’s fastest growing trading partner in 2008-09, is well on its way to becoming a major global economic power.
"In South East Asia, six out of ten ASEAN economies are expected to grow at rates at least double the forecast OECD average in 2010.
"Australian businesses should take advantage of our proximity to this "triangle" of global growth and build on our fundamentally strong economic links with the region," he said.
"The Government is committed to helping Australian businesses maximise commercial opportunities by reducing trade barriers and keeping trade flows open.
"Besides pursuing the Doha Round of the WTO, the Government is also developing a network of free trade agreements across Asia.
"Australia’s largest free trade agreement, the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), was signed at the height of the global financial crisis and came into effect on 1 January this year.
"Like Australia’s other FTAs, AANZFTA will result in more transparent and predictable business cultures and greater recognition of Australia as a trading partner.
The historic agreement spans 12 economies with a combined GDP of $3.1 trillion and covers a population of 600 million.
"ASEAN is one of our largest trading partners, with two-way trade valued at $83 billion in 2008-09. AANZFTA will deepen and expand this growth.
AANZFTA will bind existing low tariffs, and 96 per cent of tariffs on current Australian exports to ASEAN are expected to be eliminated by 2020.
The agreement will also create greater certainty for Australian investors in ASEAN with access to international arbitration extended to the whole region.
"AANZFTA will give Australian businesses a long-term competitive advantage in a region that is increasingly important to our economic future," Mr Byrne said.
Australia is also negotiating FTAs with China, Japan, Korea and Malaysia, and conducting feasibility studies for FTAs with Indonesia and India.
"Small and medium Australian exporters can also take advantage of the Export Market Development Scheme (EMDG).
Last year, the Government provided an additional $50 million to help exporters recoup a portion of eligible marketing expenses under the scheme.
"I urge Australian exporters and investors to get in touch with Austrade to take advantage of opportunities in Asia," Mr Byrne said.
Media inquiries
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