Department of Foreign Affairs and Trade, Australia
Media Release
TR30
15 June 1996
DEPUTY PRIME MINISTER VISITS VENEZUELA
The Deputy Prime Minister and Minsiter for Trade, Tim Fischer, said today
that he was impressed with the vast resourse potential of Venezuela.
"Not only does that open up some excellent prospects for Australian
companies - in areas such as mining - it also has the potential to fuel
sound economic growth in Venezuela overall," Mr Fischer said.
Venezuela has started to emerge from a long period of inward-looking and
protectionist measures and embracing policies which advance trade and investment
liberalisation. "Provided its economic reform program remains on track,
the potential benefits would be significant," the Minister said.
Mr Fischer said that a key objective of his visit was to promote expanded
trade and investment links. An excellent example was BHP's partnership
with the Venezuelan company Sivensa which could lead to $US680 million investment
in the construction of a new direct reduced iron plant in the south east
of Venezuela.
Mr Fischer met with President Caldera and key ministers of his Government
including Trade and Industry Rojas, Foreign Affairs Burelli and Mines and
Energy Minister Arrieta.
"I informed President Caldera and his ministers of Australia's capabilities
in mining, agribusiness, telecommunications and infrastructure development
and said that the Australian Government was keen to support its exporters
and investors to perform better in these areas of the Venezuelan economy.
A Communique (attached) was released by Mr Fischer and President Caldera
on the conclusion of his visit.
Mr Fischer's visit to caracas was the final destination of his eight day
visit to South America, in which he also travelled to Chile, Brazil, Argentina
and Colombia.
For further information please contact David Kelly on 018 691 178
Joint Communique on the occasion of the visit to Venezuela of the Honourable
Tim Fischer MP, Deputy Prime Minister and Minister for Trade of Australia
The Deputy Prime Minister and Minister for Trade of Australia, the Honourable
Tim Fischer MP, visited Venezuela between 14 and 15 June, 1996. The Australian
Deputy Prime Minister was received by the President of the Republic and
senior ministers with whom he reviewed recent developments in bilateral
political and economic relations.
At a working round table co-chaired by Mr Fischer and the Foreign Minister
of Venezuela, His Excellency Dr Miguel Angel Burelli Rivas, with the participation
of the Minister for Development, Mr Freddy Rojas Parra, the Minister for
Mines and Energy, Eng Erwin Arrieta and high level representatives from
the Foreign Ministry, the Office of Foreign Trade and the National Investment
Council, Mr Fischer and his party were presented with an overview of the
Venezuelan economic reform agenda and Mr Fischer expressed his interest
in the measures being taken in that context.
Both sides agreed on the importance of high level exchanges between the
two countries and identified opportunities for possible joint ventures in
the following sectors: mining, telecommunications, agribusiness and marine
industries. Both sides canvassed ways to promote increased trade and investment
including through such activities as a business round table for Australian
companies, a Venezuelan trade mission to Australia and the negotiation of
appropriate bilateral agreements.
Both sides welcomed the establishment of a partnership between Australia's
leading company, Broken Hill Proprietary Limited (BHP) and the Venezuelan
steel manufacturer Sivensa, which could lead to a $US680 million investment
in the construction of a new direct reduced iron plant in south east Venezuela.
BHP has already made a considerable investment in Venezuelan direct reduced
iron technology and will use it in a plant currently under construction
in Australia.
Referring to the process of globalisation and regional integration, Venezuela
made a presentation on the process of political and economic cooperation
in Latin America and the Caribbean principally through the Rio Group and
other regional bodies such as MERCOSUR and the Andean Pact. Mentioning
the establishment of a dialogue process between the Rio Group and the European
Union the Venezuelan side proposed that similar mechanisms to formalise
discussions with Asia Pacific countries should also be examined. Venezuela
also highlighted its interest in being advised of developments in the Asia
Pacific Economic Cooperation (APEC) process.
Mr Fischer stressed the Australian Government's aim of developing relations
with Latin America, particularly trade and investment linkages. Mr Fischer
expressed interest in Venezuela's membership of the G3 and Andean Pact as
well as its MERCOSUR aspirations and the Free Trade of the Americas initiative.
Both sides reaffirmed their commitment to the World Trade Organisation and
stressed the importance of a positive outcome at the forthcoming Ministerial
Meeting of the WTO in Singapore.
The Deputy Prime Minister and Minister for Trade of Australia, the Honourable
Tim Fischer, expressed his sincere appreciation to the Government of Venezuela
for the warmth and hospitality offered to both himself and his party.
Caracas 14 June 1996
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