"Australia and Korea – Partnership for the Future" - Publication launch
Speech (check against delivery)
Sydney
23 April 2010
Introduction
Thank you John [Wotton, MC] for that kind introduction. It is my very great pleasure to be here today.
I know that John Wotton, John Walker and the Australia-Korea Business Council have worked hard to pull together this publication, Australia and Korea – Partnership for the Future.
As this audience knows, Australia and Korea already enjoy a close relationship and next year we will celebrate the 50th anniversary of diplomatic relations.
Our historical ties were cemented during the Korean War, when 17,000 Australian troops fought in defence of South Korea and since then has expanded into a solid trading relationship in the post-war period.
As two of Asia's most successful economies, Australia and Korea share a range of concerns in commerce, trade and the future of the region.
Our significant shared interests are driving our two countries' desire to build on the existing strong foundations and create a deeper, broader partnership for the future.
The Australia Korea Business Council is very much at the coalface in terms of turning this goal into reality.
The Council has played an important role in building the substantial trade and investment relationship our two countries enjoy today.
And it is playing a key role, along with our governments and our peoples, in pursuing the closer, deeper and broader relationship that will serve us well into future.
Cooperating in a changed world
Ladies and gentlemen.
Can you remember where you were on the 25th of September 2009 – an historic date for Australia and Korea, and for our future partnership.
Here's a clue. The Prime Minister was in Pittsburgh, along with Prime Minister Lee of Korea.
In Pittsburgh on the 25th of September 2009 the Prime Minister Rudd said:
"This is an historic day for Australia, because for the first time ever Australia has secured a permanent place at the top table of global economic decision-making".
It was of course the date the G20 was confirmed as the head body for global economic governance to deal with the global economic problems of the present and the future.
While we might not recognise the date, I think most of us understand the fundamental significance of the announcement for countries like Australia and Korea.
Certainly, in the future, I believe we will reflect on what was a watershed moment, especially for the future partnership of our two countries.
Australia and Korea argued strongly for the G20 to be the new driver of global economic governance. We wanted our voices – and those of a more representative and inclusive mix of countries – to be heard directly on the major economic decisions of our time.
This new opportunity to be at the head table of global decision making, in an era where the focus is turning to our region, offers enormous potential.
Korea will host one of two G20 Leaders' Summits this year in Seoul in November and Australia sees this as a great opportunity to advance our mutual interest in a strong, sustained balanced global recovery.
As Treasurer Wayne Swan recently noted, Australia will work closely with Korea to ensure existing G20 commitments are implemented, including:
- credible strategies for dealing with public debt arising from the fiscal response to the crisis;
- balanced growth through more sustainable current account strategies, including exchange rate policy;
- lifting growth through productivity strategies;
- well regulated financial institutions; and
- reform of international financial institutions, such as the IMF, to make them reflect global realities
Economic Relationship
It seems clear that Australia and Korea weathered the global economic crisis better than most countries.
We were among two of only a few OECD countries to post positive economic growth in 2009.
The IMF's latest World Economic Outlook forecasts for 2010, suggest Korean growth of 4.5%, and Australian growth of 3 per cent. These growth figures are all the more encouraging in the context of the IMF's assessment that Asia has now bounced back faster than the rest of the world.
These growth figures demonstrate the success of our respective governments' policies in maintaining growth, despite the fallout of the global economic crisis.
It also shows the benefits of being plugged in to Asia – the centre of global growth - and the importance of trade to our economies.
This is an important point, as both Australia and Korea are benefiting from the growth of China and India. In Korea's case, according to the IMF this has boosted its export growth, especially in capital goods.
Both our governments understand that trade is a stimulus to growth.
Trade expands the global economy, creates wealth and lifts living standards around the world.
We know that trade creates jobs, and encourages business to become more innovative.
It gives consumers a greater choice of products at competitive prices.
Our shared commitment to trade meant that during the global financial crisis bilateral goods and services trade between us remained strong, at $28.1 billion in 2008-09.
The Republic of Korea is Australia's third-largest export market and fifth-largest two way trading partner for goods and services.
Australia and the Republic of Korea have built an enormously successful and highly complementary trade relationship, based largely on Australia's exports of minerals and energy, which have fuelled Korea's astonishing industrial development.
In turn, the Republic of Korea has exported high-tech products such as cars, telecommunications and TVs to Australian consumers.
On the investment front, it is noteworthy that figures for 2008 showed, Australia had invested A$7.3 billion in Korea, while Korea had invested A$7.1 billion in Australia (stocks of FDI are lower).
Despite our strong trade and economic relationship, both our countries understand that the successful negotiation of a free trade agreement between Australia and Korea would lay the foundations for a vastly expanded trade relationship into the future.
We started negotiations in May last year and we've now got four rounds under our belts.
We are pleased with the significant progress so far, courtesy of both sides constructive and pragmatic attitude towards negotiations.
Of course, challenges remain, particularly in the sensitive area of agricultural market access.
But we are confident that with further work, our two countries can find satisfactory outcomes that will allow us to conclude this FTA as quickly as possible.
I want to mention education because it plays a crucial role in our existing relationship. Not only is it Australia's largest services export to Korea, it also remains a key conduit through which vital people to people links between our two nations are realised.
Australia welcomed a great many Korean students here last year, with more than 35,500 enrolments to Australian institutions.
In each an every one of these students Australia sees a potential ambassador for the Australia-Korea relationship who will take home knowledge and experiences that will help contribute to the further strengthening of our relationship.
In terms of a future partnership Australia and Korea share a strong commitment to encouraging innovation.
Innovation has helped drive Korea's economic success over successive decades and this investment has seen Korea ranked as the most innovative country among major economies.
The Australian Government is substantially raising the level of R&D through a range of innovation centres, tax concessions, science collaboration programs and fellowship schemes.
This shared strength offers enormous potential for us to work together to try to tackle key 21st century challenges, such as climate change.
Australia welcomed the Government of Korea, as well as several Korean businesses, as foundation members of the Global Carbon and Capture Storage Institute or GCCSI.
The GCCSI has been one of Australia's landmark achievements in our action on climate change.
We know Korea shares Australia's vision of an organisation driving the global cooperation and collaboration needed to realise the goal of 20 large-scale carbon capture and storage projects in operation by 2020, and the widespread deployment of carbon capture and storage technology.
Through our shared interests in renewable energy, energy efficiency and low carbon emissions technologies, we are well positioned to work together on issues that the world will contend with this century and I know we are going hear more about these opportunities later today.
As the Republic of Korea's Ambassador to Australia, His Excellency Dr Kim Woo-Sang notes in his foreward for this publication, if our two nations' governments, universities, institutes and businesses share the vision of green growth and deepen their cooperation we can take a leading role in this area.
Beyond trade and investment, there are many more such areas which offer potential to do more together.
As our relationship deepens, we enjoy closer cooperation in other areas.
For instance, Australia and Korea are working closely to shape the direction of regional political and strategic institutions.
We are also seeking to strengthen our cooperation on security issues under the Joint Statement on Enhanced Global and Security Cooperation released by Prime Minister Rudd and President Lee in March 2009, as well as seeking to collaborate on regional development assistance.
Nevertheless, trade and investment will continue to be the foundation of the bilateral relationship. And this publication we are launching today will serve to strengthen trade and investment linkages even further.
Conclusion
Ladies and gentlemen.
I am honoured to launch this impressive publication.
That there is so much interest in the Australia-Korea relationship is a testament to the strong bonds we have already built between our two countries.
However, our governments and key organisations such as the Australia Korea Business Council are determined to do more, and to build a broader, deeper and stronger relationship for the future.
We know that people are the key to this.
As we mark, this year, 60 years since the outbreak of the Korean War, and prepare to mark 50 years since we established diplomatic relations, I thank you for your efforts and commitment to the Australia-Korea relationship.
I know the publication we are launching today will be a valuable tool for business as we seek to deliver on the potential of the Australian-Korea partnership.
Thank you.