23 August 1995

TALKS ON CER-MERCOSUR

Senator McMullan said this will strengthen Australia's trade and investment relationship with the growing Mercosur economies of Latin America.

CER (Closer Economic Relations) is the trade agreement between Australia and New Zealand, and Mercosur (the Common Market of the Southern Cone) is the trade agreement between Argentina, Brazil, Paraguay and Uruguay.

Senator McMullan said there are significant trade liberalisation developments taking place in Latin America which provide major opportunities for Australian exporters, including in Argentina.

"A large part of our trade and investment in Latin America has traditionally been in the minerals sector," Senator McMullan said.

Australia is now very interested in expanding commercial relations in the newer areas of technology and services trade," Senator McMullan said.

Senator McMullan and Dr Di Tella also discussed developments in the establishment of the Free Trade of the Americas Agreement (FTAA) and a free trade agreement between Mercosur and the European Union.

"Mercosur's involvement in these major regional trade arrangements makes it important that Australia has a foothold in Latin America through a CER-Mercosur dialogue," Senator McMullan said.

Another key issue for discussion was the activities of the Cairns Group in the lead-up to the World Trade Organisation (WTO) Ministerial Conference in Singapore in December.

Senator McMullan welcomed the particularly strong and long-standing cooperation between Australia and Argentina in the Cairns Group. Both Ministers confirmed their interests in pushing for further agricultural trade reform, particularly through the WTO, and to work together on an ambitious agenda for further trade liberalisation at the WTO Singapore conference.

Further information:

Minister's office: John Flannery, (06) 277 7420

DFAT: Jane Lambert, (06) 261 2719