MEDIA RELEASE

DEPUTY PRIME MINISTER AND
MINISTER FOR TRADE

TIM FISCHER

19 June 1999

Fischer Urges Business To Take Fresh Look At South America

Asuncion Declaration Opens Door To New Investment Opportunities

Deputy Prime Minister and Minister for Trade, Tim Fischer, has hailed the signing of the Asuncion Declaration as a challenge to the Australian business community to take a fresh look at opportunities in the Mercosur countries - Argentina, Brazil, Paraguay and Uruguay.

The Declaration encourages greater transparency and a more open investment environment between the countries of CER and Mercosur.

"The Asuncion Declaration is another step forward in the Government's efforts to win better market access for Australia in South America and elsewhere", Mr Fischer said.

"Australian investors and exporters are making inroads into South American markets and our relationship with Mercosur countries is set to grow strongly into the next millennium."

"I encourage all Australian investors and exporters to take a fresh look at emerging opportunities in Mercosur and other South American markets," Mr Fischer added.

Australia's Ambassador to Argentina, Paraguay and Uruguay, HE Ms Martine Letts, along with representatives from New Zealand and the Mercosur countries, signed the Declaration on Investment Principles in Asuncion on 14 June 1999.

The Asuncion Declaration coincides with better economic news for South America and growing Australian investment in South America.

Official estimates indicate investment levels grew from A$786 million in 1995-96 to around A$3.6 billion in 1997-98. While the mining sector remains the cornerstone of Australia's investments in South America, there has been a growing trend toward diversification into new areas such as entertainment, energy, transport infrastructure and financial and other services. There have also been positive developments in our trade with South America, with Australian merchandise exports rising 17.4 per cent in 1998.

Mr Fischer also drew attention to the inquiry into Australia's trade and investment relationship with the South America currently being conducted by the Trade Sub-Committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade. He encouraged Australian business to take advantage of this opportunity to put their views forward.