Media release
5 June 2004 - MVT40/2004
Combating Terrorism in Transport Could Yield Economic Benefits
Universal adoption of counter-terrorism measures in the transport sector has the potential to deliver large efficiency gains for the traded goods sector, Trade Minister Mark Vaile said today at the APEC Trade Minister's meeting in Pucón, Chile.
Mr Vaile launched Combating Terrorism in the Transport Sector: Economic Costs and Benefits, a report from the Department of Foreign Affairs and Trade's Economic Analytical Unit.
"The ongoing threat of terrorism imposes dispropotionately high costs on APEC developing countries because of their heavy reliance on trade and foreign direct investment," Mr Vaile said.
"International trade thrives on a secure and efficient transport system. Any interruption to or collapse of maritime or civil aviation transport systems would impose high costs on the world economy.
"Countering the risk of terrorism imposes enormous costs on the transport system and requires significant effort from both government and industry. While it is impossible to remove completely the risk of terrorist attacks, security measures in the transport sector designed to counter terrorism can add certainty and stability to the global economy, raise investor confidence and facilitate trade.
"Counter-terrorism measures can also present an opportunity to combine the imperative to fight terrorism with increased efficiencies in the system.
"It is in the interest of developed economies to ensure that there is a framework for practical cooperation with developing economies. APEC plays a critical role by providing a framework for collective action and strengthening the link between trade and economic stability, and increased security.
"As an open and highly competitive economy, enhanced security in the transport sector is of vital importance to Australia. It is in our interests to support and complement efforts to enhance transport security, particularly in the Asia Pacific region and through fora such as APEC."
APEC's Counter Terrorism Task Force, initiated in 2002 to oversight APEC's security agenda, is a key vehicle through which Australia engages in these efforts and contributes to capacity-building measures. This includes a Regional Trade and Financial Security (RTFS) fund, to which Australia announced at last year's APEC Leaders meeting it would contribute US$1 million, to be used to finance counter-terrorism capacity building in APEC developing economies with a focus on port security, combating money laundering and terrorist financing.
Copies of the report are available from the Department: phone 6261 3114 or e-mail jane.monico@dfat.gov.au.
Media contact: Matthew Doman (Canberra) +612 6277 7420, Nicole Guihot (departmental) on 02 6261 1555