Tonga and Saudi Arabia Join the WTO

Deputy Prime Minister and Minister for Trade Mark Vaile today welcomed both Tonga and Saudi Arabia to the ranks of the World Trade Organization (WTO) as its 149th member.

Speaking from the 6th WTO Ministerial Conference in Hong Kong, Mr Vaile congratulated both countries on the completion of their extensive accession negotiations.

"Australia looks forward to working with these countries in the WTO to promote our common interest in global trade reform. The commitments that they have made in their accession to the WTO will expand the scope for trade globally and, importantly, contribute to the strength of the multilateral trade system," Mr Vaile said.

"Australia and Saudi Arabia have enjoyed sustained cooperation over a number of years, with combined trade in goods alone worth more than $3 billion per year. Saudi Arabia is Australia's largest market in the Middle East and we are keen to expand the commercial relationship further.

"Australia's trade with Saudi Arabia has diversified in recent years from agricultural products to include manufacturing, with Saudi Arabia the largest export market for Australian motor vehicles, and a growing range of services including in construction, aerospace, health, and oilfield development.

"Saudi Arabia's efforts to open its foreign trade regime, including taking steps to reduce tariffs and to eliminate non-tariff barriers, will help to accelerate its integration into the world economy," he said.

Mr Vaile said he is particularly pleased to welcome one of Australia's Pacific Island neighbours to the WTO.

"Tonga's membership will be significant, not only for the boost it will provide to Tonga's long-term economic growth and development, but for the positive role-model I hope it sets for other, small developing countries that this process is worth undertaking," he said.

"Tonga's WTO accession has provided Tonga with the momentum to make the domestic economic reforms necessary to opening its economy."

Australia's two-way trade with Tonga, worth approximately $A14 million in 2004-05, is expected to grow with Tonga's economy. Trade ranges from fuel energy to agricultural products, such as wheat, meat and vegetables, and telecommunications equipment. Australia is Tonga's third largest source of imports.

Mr Vaile said Australia's aid program continued to assist Tonga focus on governance and in promoting broad-based economic growth. In particular, Australia is contributing resources to update Tonga's Customs Service.

Contacts: Carissa Buckland 02 6277 7420