MEDIA RELEASE THE AUSTRALIAN DEPUTY PRIME MINISTER AND MINISTER FOR TRADE TIM FISCHER

Australia and Mexico: Forging Stronger Links

The strategic alliance being developed between the Australian wool industry and and the Mexican textile industry was pointing the way to further development of the Australia-Mexico bilateral trade relationship, the Deputy Prime Minister and Minister for Trade Tim Fischer said today.

"It demonstrates the considerable economic complementarities between our Iwo countries and the benefits that flow from trade liberalisation. There is great potential for further growth but government and business must work harder to realise this potential."

Mr Fischer was speaking in Mexico City at the conclusion of a two-day visit which involved calls on President Zedillo Trade and Industrial Development Minister Blanco, Agriculture Minister Labastida, Finance Minister Ortiz, Energy Minister Reyes-Heroles and Acting Foreign Minister Rebolledo.

Mr Fischer and Mr Blanco chaired a meeting of the Australia-Mexico Commission on Trade and Investment (JTIC) in which they agreed to work to triple two-way trade by the end of the century to reflect the dynamic potential of the relationship.

"A visit to the Rivitex textiles plant at Cuernavaca was a highlight of the visit," Mr Fischer said. "This plant is part of the impressive growth in export of fabric and apparel to the US market. Australian wool is benefitting from this growth, and supporting the efforts at plants like Rivitex through the supply of high quality wool."

The growth in trade in wool to Mexico - an increase of l .1 million kg in the past year - follows on the recent decision by Mexico to lower to zero the tariff on wool tops.

"I believe there is significant scope for trade to build on this base, and complement the effort of Grupo Covarra Rivitex and other companies and the support provided to this trade by the International Wool Secretariat."

Mr Fischer said his call on President Zedillo provided an opportunity to emphasise Australia's commitment to build the bilateral relationship with Mexico, and to raise a number of issues of mutual interest. He had productive discussions with other Ministers on issues of importance to Australia

In particular, I appreciated the opportunity to discuss the concerns both Australia and Mexico share in ensuring that the discussions in Kyoto on greenhouse gases recognise the need for equity and fairness. 1 am confident we share much ground in relation to this matter."

The main bilateral issues covered in calls on individual ministers and in the JTIC included Australian concerns over tariffs on coal and on beef, on the negotiation of a live cattle protocol, and the negotiation of a double taxation agreement

"We good progress in our our on our request for a reduction in the the coal and the benefits that Mexico would gain from this. We will continue to press our case on this matter," Mr Fischer said.

"We also made good progress toward finalisation of a live cattle protocol and have asked our officials to conclude this as soon as possible. And with Agriculture Minister Labastida we agreed to make further proposals in support of a reduction in the tariff

Mr Fischer said Mexican Ministers had reported they were pleased with the developing trade in live sheep from Australia, and he noted the very good animal health record of the recent Corriedale Express which underlined the capacity of Australia to supply live sheep with zero or negligible levels of scabby mouth.

As pan of the JTIC, Ministers Fischer and Blanco also discussed a range of regional and multilateral trade issues - in particular reaffirming their commitment to active participation in APEC and WTO negotiations.

Mexico City, June 4, 1997

Attachment:

AUSTRALIA-MEXICO COMMISSION ON TRADE INVESTMENT

June 3, 1997

CONCLUDING STATEMENT

A delegation from Mexico headed by the Minister for Trade and Industrial Development Dr Herminio Blanco Mendoza and an Australian trade delegation headed by the Deputy Prime Minister and Minister for Trade race! the Hon Tim Fischer MP, met in Mexico City on June 3, 1997, for the third meeting of the Australia-Mexico Commission on Trade and Investment.

With respect to multilateral issues - both countries:

• reaffairmed their strong support for APEC and undertook to work closely with Canada in its capacity as APEC: chair for 1997 to ensure further progress was made toward economic integration in the Asia Pacific region;
  
• agreed on the primacy of the WTO and on the importance of APEC's complementary trade liberalisation effort and on the need for devising ways to develop more ambitious Individual Action Plans (IAPs), and agreed to table improved IAPs at the APEC Leaders' meeting in November
  
• welcomed the endorsement by APEC Trade Ministers of the sectoral approach to trade liberalisation as another means of advancing APEC's goals and welcomed their recognition that the sectoral approach could also provide a foundation for trade liberalisation beyond the Asia Pacific including in the framework of the WTO
  
• expressed their support for the commencement by the turn of the century of a new round of global negotiations; and
  
• underscored the importance of APEC's work programs in the areas of trade facilitation and economic cooperation in reducing exporters' costs and stimulating trade and investment.
  

With respect to trilateral trade and investment issues both countries

• highlighted the economic complementarities between Australia and Mexico and the potential for increased growth in bilateral trade anti investment. In this respect, the strategic alliance established between Australia's wool industry and Mexico's wool textiles sector was an outstanding example of the benefits of cooperation which delivered mutual benefits and strengthened the overall commercial relationship between the two countries. Both countries agreed to examine practical ways of ensuring that the wool pipeline would continue to expand;
  
• Australia noted its interest in assisting Mexico in its economic recovery through the competitive supply of essential goods, services, expertise and investment to Mexico, particularly in sectors such as agriculture mining and energy
  
• agreed on the importance of concluding, expeditiously ongoing ongoing on a Double taxation Agreement, recognising that such an agreement would further develop the bilateral commercial relationship;
  
• expressed satisfaction with the successful shipments of livestock from Australia and the important contribution such exports were making to rebuilding Mexico's cattle and sheep industries;
  
• agreed on the importance of the early conclusion of a protocol for the importation of cattle coming from Australia;
  
• discussed Australia's long-standing request for improved access to the Mexican beef market, and welcomed the dialogue between their beef industries, and agreed that the outcome of such dialogue is a valuable input in the solution of Australia's request;
  
• agreed to work closely together over the coming months to identify opportunities in specific sectors where there may be possibilities for enhanced commercial collaboration, for example in automotive components; and
  
• agreed to set a goal of substantially increasing trade by the turn of the century