27 June 1995

McMULLAN SPELLS OUT AUSTRALIA'S APEC OBJECTIVES FOR 1995

Australia is well on track to achieve its core objectives by the APEC Leaders Meeting in Osaka, Japan, in November.

This is the message Trade Minister, Senator Bob McMullan, delivered to the NSW State Conference of the Australian Institute of International Affairs in Sydney today.

Senator McMullan used the speech to clarify Australia's plans and objectives for APEC this year.

In his speech and a background paper, Senator McMullan spelt out in detail Australia's views on an effective and credible Action Agenda to implement the Bogor commitment for free trade and investment, specifically the use of the twin implementing mechanisms for liberalisation - individual action plans based on concerted liberalisation, and a program of collective action.

"It is important to remember that Australia doesn't own APEC, and Australia can't dictate to APEC, but Australia does have some capacity to influence the outcomes, " Senator McMullan said.

"Perhaps because of our role in initiating APEC, and in being an innovative and active participant in APEC's evolution, we have a capacity to influence beyond our relative size within the region.

"Australia has fashioned a uniquely APEC formulation to implement the Bogor commitment, and it is one that many people have had difficulty understanding - including, initially, some within APEC and, disconcertingly, some within Australia.

"It is a concept known as concerted liberalisation, and it is the principle governing the process by which each country will submit in 1996 a national action plan to implement their Bogor commitments.

"Under this approach, each member of APEC would set down, in an individual country action plan, how and by when it intends to reach the Bogor commitments of free trade and investment across the various sectors and issues."

Senator McMullan also addressed what he called 'the never ending saga' of whether Australia is for a Most Favoured Nation (MFN) or preferential arrangement for APEC.

"Let me make Australia's position clear," Senator McMullan said.

"Our distinct preference is for an MFN approach - it always has been, it continues to be, and every proposal we have put forward has been consistent with MFN.

"All we have said is, if at the end of the day our preferred position is not acceptable, and some alternative proposition comes forward which is in Australia's interest and the regional interest and doesn't undermine the multilateral system, we won't rule it out.

"And, in fact, the exporters are in tune with the Government's approach.

"The Chief Executive of the Australian Dairy Industry Council said in a newspaper article yesterday that 'we should keep alive the possibility of a full-scale free trade agreement negotiation'.

"During recent consultations on Winning Markets with industry, no major exporter or industry association advocated closing off the preferential option, although it did appear the majority supported MFN, as we do."

Senator McMullan also circulated a background paper on Australia's APEC position which he said he hoped would help dispel some of the myths, misunderstandings and untruths currently doing the rounds, and provide a greater understanding of the Government's underlying commitment to make APEC work to maximise economic gains for Australia and the region.

Further information:

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

For copies of Senator McMullan's speech and his APEC background paper, please contact Gai Brodtmann at DFAT on (06) 261 3214.