Speech

17 April, 2008, Evening reception at residence of the Australian Ambassador, HE Peter Hussin, Buenos Aires, Argentina

Launch of the Australia Guide 2008

Members of the Australia-Argentine Chamber of Commerce; Distinguished guests; Ladies and gentlemen

It’s my great pleasure to visit La Reina del Plata, to join you here at the Australian Ambassador’s residence and to launch the Australia Guide 2008.

This is a useful publication which centres on the key sectors of Australian capability––education and tourism––two areas that offer a unique potential to draw our two countries closer together.

But, in doing so, it’s also generally educational about Australia, outlining other sectors of strong interest between Australia and Latin America, and it gives a wealth of information that will assist business people in evaluating potential business and investment opportunities with Australia.

People-to-people

It’s a Brand Australia “consiguiendo para saberle” –– “getting to know you”–– manual. And getting to know each other is the best foundation there is for renewed cultural and commercial relations.

When Argentinean students come to Australia to attend our universities and colleges; and when Argentineans travel to Australia to visit us as tourists, we bond at a people-to-people level.

Adding value to that friendship are about 11,000 Argentine-born people who live in Australia, enriching us with their culture, traditions––and I must not leave out sport––mainly volleyball, surfing, rugby and, of course, football (we were so proud that the Socceroos were beaten only 1-0 against your star-studded line-up in that great friendly in Melbourne on September 11 last year. But by finishing third in the Rugby World Cup Los Pumas did a lot better than our Wallabies!) 

Trade Relationship

But it has to be said that there is tremendous scope for improvement in our economic relationship.

• Two-way trade last year stood at A$374 million.
• We exported A$115 million in goods to you, mainly in coal, aircraft and parts, vegetables, and civil engineering equipment;
• and imported A$260 million in return, including motor vehicles, power generating machinery, leather and soft vegetable fats and oils.
• Australia came 47^th on Argentina’s list of export destinations; while
• Australia was 27^th among Argentina’s principal import sources.

Scope for Improvement

These numbers are too modest. We can enhance each other a lot better than that. And we should do so, as the bilateral economic outlook has never been better.

The most important step we need to take now to strengthen the global trading system is to successfully conclude the Doha Round.  It is the Government’s most important trade negotiations priority.

We all know that the Doha Round has reached a critical point. In recent weeks there has been some encouraging progress in the key sectors of agriculture, industrial products and services. The key will be to maintain that momentum. And the Australian Government is determined to do everything possible to secure the best possible outcome from Doha. This is no small task. But our sense is there is genuine desire among the key players to conclude the Round this year.

Argentina’s GDP is expanding at an annual rate of 11 per cent.  With appropriate economic policies in place, the conditions are ripe for renewal. After all, we are alike in many ways:

• both large southern hemisphere nations;
• both with comparatively small populations;
• both rich in natural resources. 
• both part of the Cairns Group promoting agricultural trade reform.

As major wine producing nations we work together via the World Wine Trade Group, to advance favourable international wine trading conditions. And we cooperate in a range of international forums pursuing common interests, including

• the role of the UN, international peacekeeping,
• the defence of democracy and human rights,
• disarmament and prevention of nuclear weapons proliferation,
• Antarctica,
• environmental issues, particularly climate change,
• and in line with the Government’s commitment to increase Australia’s engagement with the UN, the Prime Minister recently launched Australia’s candidature for a non-permanent seat for the Security Council for the 2013-14 term.

Furthermore,

• an Investment Promotion and Protection Agreement between Australia and Argentina entered into force in 1997;
• a Double Taxation Agreement between the countries entered into force in 2000; and
• a memorandum of understanding on scientific and technological cooperation was signed in November 2003.

Let’s build on these and the many other links we enjoy.

Opportunities

Santi Rubio’s story

Many Australian businesses fled the scene during your crisis. Some niche companies braved the storm.

By way of example, at the height of the Argentine’s economic difficulties, Santiago Rubio, of the Australian Trade Commission (who, I might add, comes from a typical gaucho rural Argentine background himself) took a mission of Argentinean beef producers around Australia.

As a result, Rubio now assists over 40 Australian cattle and sheep genetic companies in Australia work successfully in the Latin American market.

In fact, Australia has a long-standing relationship with Argentine breeders, which began with the export of merino rams in the early 1970s, and many livestock breeders visit Australia to find new blood lines for Braford, Santa Gertrudis and Friesian-Holstein cattle.

Wine

To go with the large steaks that both Argentineans and Australians enjoy, another product of mutual interest is wine.

I was interested to learn that Argentina has joined the “wine in a can” revolution! This innovative technology, so typical of Australia, is doing well here. Austrade Buenos Aires introduced the product, invented by the Australian company, Barokes, to the C&M Group, representing Barokes in Argentina.

And although viticulture is a highly developed industry in Argentina, Australian technology is helping to expand production systems and assist in quality control.

I believe that in the wine country of Mendoza, sometimes referred to by Australians as “Argentina’s Barossa Valley”, you can find several Adelaide services exporters providing viticulture training to local vineyards.

Involvement in reconstruction

Australian investment in Argentina now stands at A$161 million. Sectors of interest include mining, agribusiness, entertainment, port management, freight equipment and insurance.

But my message to you today is that although we share a number of areas of mutual success, we have a new Government in Australia and we want our business partnership to return to something even better than its former glory.

Australia would like very much to play a part in the economic upsurge that Argentina is experiencing––particularly in the supply of services, which globally in 2006 amounted to just on $44 billion.

Australia also has much to offer Argentina’s particular reconstruction needs by way of:

• banking and financial services, including accounting, that might be constructive to the nation’s structural reforms;
• business and management consultancy and public relations services; and
• energy security and production and enhancement of the country’s oil and gas sectors.
• and to help our business people, I’m pleased to note that from late November Qantas Airlines will begin three direct flights a week between Sydney and Buenos Aires.

Export and investment opportunities for Australia can be found in the revitalisation of Argentine industry and the overhaul of communications, transport and public utilities.

Other sectors that show investment promise include environmental management, construction and building materials, irrigation and water management technology and hi-tech machinery, such as for Argentina’s sugar cane and milling industries.

Education and tourism

As I’ve mentioned, the Australia Guide 2008 tells of the educational and tourist sectors, both of which, along with investment, are real growth areas.

Travel services remain Australia’s major services export worldwide, accounting for 54 per cent of the total. Two major service activities now in Australia’s top 10 exports are personal travel services––excluding education-related––valued at $11 billion and education services following closely behind at $10.7 billion.

In terms of education Australia also offers experience in education at-a-distance, vocational training and tele-medicine. English as a second language and post-graduate studies could also find ready markets in Argentina.

Tertiary non-university, vocational courses are a new concept to Argentine students and they find Australia’s TAFE system particularly attractive. This is an area that could prove very successful for Australian institutions that have chosen to actively pursue this market.

Finally, I’d like to thank all the Latin American and Australian advertisers and local participants in the publication of the 2008 guide, now in its sixth edition. The guide is being distributed throughout Austrade’s Latin American network, Australian Embassies and Consulates, commercial airline offices, travel operators, study agents, and at exhibitions and workshops in the region during the year. 

To all who are interested in learning in Australia; learning about Australia, or travelling to Australia––or for that matter anyone wishing to invest in Australia––I commend Australia Guide 2008 as an introduction tosome of the wonders of Downunder.

Thank you.