Australia Consolidating Links with World's Fastest Growing Economy

Deputy Prime Minister and Minister for Trade, Mark Vaile, today said that our approach to a free trade agreement with China would ensure Australia is at the front of the pack when it comes to gaining access to the world's fastest growing major economy.

Speaking at the launch of Trade 2006 at the National Press Club Mr Vaile said as the only major developed country negotiating an FTA with China, this is a unique opportunity to forge stronger links with the country that accounted for more than a quarter of the world's economic growth in the past two years.

"Some people believe that the challenge of negotiating an FTA with China is just too hard, but I firmly believe that fortune favours the brave. This is not just about new market access, it is also about consolidating our existing position in this vital market," Mr Vaile said.

"Whether you are a farmer battling against the forces of nature to get your livestock or grain to market, a worker on the factory line or an engineer designing a bridge, you will be affected by the rise and rise of China. I want to make sure Australians benefit from the Chinese boom.

"Our agricultural exports to China have trebled over the past decade and are now worth more than $3 billion to Australian farmers. This comes on the back of our record export high of $176.7 billion in 2005 which was fuelled by our resources exports to China.

"The huge growth potential in China is the primary reason why Australia cannot afford to stand still while our competitors negotiate FTAs with China," Mr Vaile said.

Market access negotiations with China are due to begin in the second half of this year. Four negotiating meetings have already taken place to exchange information about each country's trade and investment regimes and to examine how best to deal with areas of interest in an FTA.

Mr Vaile also used his speech to underline the Government's commitment to securing better trading conditions for Australian exporters in all overseas markets, stating:

"The Doha Round of trade negotiations in the World Trade Organization has the potential to deliver major benefits for the Australian economy.

"ABARE estimates that an ambitious outcome on agriculture in the Round would boost Australia's major agricultural exports by 15 per cent and increase the income of Australian farmers by 8 per cent."

Mr Vaile outlined the significant benefits flowing to Australian exporters from the Government's free trade agreements (FTAs).

"The Australia-United States Free Trade Agreement made a substantial commercial impact during its first year of operation, with Australian exports of lamb, mutton and cheese reaching record levels in 2005.

"Our FTAs with Thailand and Singapore are also providing significant new opportunities for Australian exporters. Our merchandise exports to Thailand increased by 34.7 per cent in 2005, while those to Singapore also grew strongly, by 23.2 per cent," Mr Vaile said.

Trade 2006 reports on the Government's achievements in trade policy over the past year, and provides detailed information on Australia's trade performance. It also reports on the measures being taken to increase Australia's capacity to trade, especially the capacity of our export infrastructure - both physical and technological - to cope with ever-increasing global demand for Australian goods and services.

Contact: Mr Vaile's Office 02 6277 7420, Departmental 02 6261 1555