MCMULLAN TO REVIEW U.S. TRADE RELATIONSHIP

In a speech to the Committee for Economic Development of Australia (CEDA) in Melbourne this morning, the Minister for Trade, Senator Bob McMullan, said he will be reviewing Australia's trade relationship with the United States.

Senator McMullan said that, at a time of significant change in the multilateral trading regime and the trading environment of our region, a review of Australia's trade policy priorities must occur.

"Much of the focus of our trade strategy must be on emerging markets with the greatest potential for Australia," he said.

"Unquestionably, most of these markets are in Asia. However, it is also important not to neglect traditional markets within APEC and in other parts of the world.

"We retain significant trade and investment interests in traditional markets and we need to nurture them if we are to gain the full benefit from our role as a global trading nation.

"The United States is an enormous and sophisticated market but it is clear that its importance as an export destination for Australia has declined over the past decade, even though it continues to be a major source of investment in our economy.

"We need to ask what is happening to traditional markets such as the United States?

"How are we performing in them?

"What are the factors which have shaped these outcomes, and what can we do to remedy any problems we are encountering - be they problems in terms of barriers, Australia's competitiveness, or our marketing approach to these markets?

"What role can and does investment play in shaping our trading relationships?

"It is with these questions in mind that I am announcing today a review of our trade relationship with the United States.

"I see this as an important start to a process which will reaffirm that our economic future requires that we focus on both new and old relationships.

"Traditional markets can only be ignored at Australia's peril.

Further information: John Flannery, (06) 277 7420