30 July 1995

MEXICO VISIT SETS TRADE FRAMEWORK

"A number of Australian firms already consider Mexico to be an attractive investment destination in areas where the events over the past 8 months have forced a faster pace of restructuring," Senator McMullan said.

"I believe there are real opportunities for Australian companies in mining, telecommunications, agricultural equipment, steel, downstream distribution of natural gas and a number of other sectors where Australia has a competitive edge."

At the first seminar for Mexican business focussing on APEC, Senator McMullan addressed some 180 senior Mexican CEOs interested in doing business in the Asia Pacific region. The seminar was jointly organised by the Mexican Minister of Trade and Development, Mexico's National Development Bank and the Australian Embassy.

Senator McMullan outlined to the CEOs the real benefits on offer from work underway in APEC and urged them to take the opportunities available to feed their views in to the unfolding agenda on trade facilitation, trade liberalisation and economic co-operation.

The Minister also took the opportunity to highlight the advantages of using Australia as an effective entry point to East Asia.

"Australian companies do 60 per cent of their export business with Asia which represents a wealth of accumulated business know-how. Investment in Australia and joint ventures with Australian companies could be a very effective way to take advantage of the trade opportunities in East Asia - opportunities which would only increase with the implementation of APEC's ambitious plans for the region," Senator McMullan told the seminar.

The primary purpose of the Mexican visit was to lead an Australian delegation to the inaugural meeting of the Joint Trade and Investment Commission (JTIC) which met on 27-28 July.

The commission was established under a Trade and Investment Agreement concluded with Mexico in November last year. Dr Herminio Blanco, Minister for Trade and Industrial Development, led the Mexican side.

Senator McMullan was accompanied by Australian business representatives from the beef, sugar, wool and resources sectors. The Minister also met with the Mexican Finance, Energy and Agriculture Ministers and the acting Foreign Minister.

At the JITC and in meetings with Mexican business people and other Ministers, Senator McMullan and the business delegation took the opportunity to pursue a number of market access issues.

"Market access problems occur in all relationships and many of them will not disappear overnight. However I believe as a result of this visit we are now in a good position to get a positive outcome on a tariff differential on wool tops which at present disadvantages Australian exporters compared to other Latin American countries. This would realise significant benefits for both countries given the good prospects for Mexican textile exports to the US," Senator McMullan said.

"As a result of discussion here in Mexico City there is also a reasonable prospect of improved access for some Australian agricultural equipment manufacturers.

"These two opportunities are examples of the Government's strategy of building on our traditional strengths to move our export profile towards further processing of our commodities and the export of high value added goods and services to the agricultural industry."

"In conjunction with the Australian meat and livestock industry I was able to pursue our interest in gaining a tariff free quota for Australian beef exports to Mexico and I am hopeful that further discussions between our two Governments and industries will set the scene for improved access to Mexico in the near future. We are also pursuing strongly the prospect of live cattle exports to Mexico."

"I also expressed Australia's interest in supplying Mexico with sugar when they re-enter the world market,"

Senator McMullan said he looked forward to receiving Dr Blanco in Australia next year for the second meeting of the JTIC and the two ministers agreed that it would be useful to begin planning to ensure significant business sector participation and input, particularly by small to medium size companies in the manufacturing and services sector.

During the visit Senator McMullan also inaugurated a three week Australian Food and Wine Festival with Australian wines and food prepared by well-known Australian chef, Elise Pascoe, and officially opened the new Australian Embassy Chancery.

A copy of the joint concluding statement from the JITC is available from Senator McMullan's office.

For more information Steve Gartland 06 277 7420 / 018 482 887

Bob McMullan Minister for Trade