Media Release

Friday, 26 September 2003 - MVT76/2003

Improving Trade Opportunities in The Indian Ocean Rim

Trade opportunities in Indian Ocean Rim countries have improved because of reductions in trade barriers undertaken over the last 10 years according to a new Government-sponsored study released by Trade Minister Mark Vaile today.

Barriers to Trade in Indian Ocean Rim Countries was commissioned by the Department of Foreign Affairs and Trade and prepared by the Asia Pacific School of Economics and Management at the Australian National University.

“During the past decade there has been a substantial expansion in regional trade.  Since the 1997 launch of the Indian Ocean Rim Association for Regional Cooperation (IOR-ARC), Australia's bilateral trade with the other 18 countries in the group has expanded at 9.4 per cent per annum.  In 2002-3 our two-way goods trade in the region was worth $38.6 billion, with exports worth $18.9 billion,”Mr Vaile said.

”Indian Ocean Countries are continuing to reduce trade barriers which means there is huge potential to increase trade in the region.  The key challenge is to ensure that the region redoubles its efforts to open markets.

“The report makes a solid case for further opening of markets and sets out clearly how countries benefit from trade reform.

“I hope the prospects for improved growth and prosperity outlined in the report will help to ensure that countries keep moving forward with reform.”

Copies of the report will be presented to IOR-ARC Ministers and officials ahead of the Council of Ministers meeting in Colombo in October.   Australia will also present an IOR-ARC Resource Kit CD ROM.  This resource kit consolidates the last three years of Australian Government funded research publications on IOR-ARC and is a useful reference tool for IOR-ARC members.  The report is available on the Department’s website: www.dfat.gov.au/trade/iorarc/research_reports/.

Contact: Matthew Doman (Ministerial) 02 6277 7420, Nicole Guihot (Departmental) 02 6261 1555