Speech by the

Introduction

I am very pleased to be a participant in this inaugural conference and presentation of the European Business Awards.

The Australian Government came to office in March of this year with an undertaking to give greater focus to our relationships in Europe. This conference and these awards are a strong sign that the Australian business community is also looking more closely at European markets, and so these initiatives are very encouraging.

Europe has, of course, changed dramatically over the past five or six years.

Apart from the massive changes to the Europe's security landscape following the collapse of the Warsaw Pact, the Maastricht Treaty on European Union, the European Single Market and Economic Area, and the further enlargement of the EU have substantially altered the face of Europe.

We must therefore keep up to date in our thinking about how business in Europe should be done.

The facts of Australia's economic relationship with Europe - which Ambassador Hughes outlined this morning - underline the extent to which we remain important partners.

Today, I would like to present to you a brief report card on what the Government has been doing over the last six months to build Australia's relations with Europe and, in particular, to build a better framework for the growth of two-way trade and investment.

I think it is fair to say that in the short time we have been in office, the Government has taken significant steps towards improving the relationship and developing a strategic agenda for the future.

The EU Trade And Investment Study

In June, I released the first comprehensive Government study into Australia's trade and investment relations with the European Union.

This report analysed the strengths and weaknesses in the relationship and identified an agenda to take the relationship forward.

That agenda aims for:

. better targetted promotion of European investment in Australia,

. improved support for the marketing efforts of Australian companies, through Austrade's strategic plan for Europe.

. achieving better market access for key Australian exports, and longer term trade liberalisation, through the promotion of reforms to the EU's Common Agricultural Policy and EU coal subsidies,

. and developing a broader and more constructive working relationship with the European Union and European Commission.

These are the broad parameters of our agenda. It is being pursued through a wide range of initiatives.

Germany

With Germany, the third largest economy in the world, the Government has now begun to implement a comprehensive Action Plan to develop the Australia-Germany commercial relationship.

Entitled Partnership 2000, the Action Plan sets out an extensive agenda. It includes planning for increased two-way ministerial visits, such as that made by Alexander Downer to Germany in September, and the visit to Australia by Germany's Defence Minister, Volker Ruehe in October

It also includes support for a large number of business development missions and trade fairs.

We will, for example, be hosting a business mission to Australia in February, led by the German Economics Minister, Guenther Rexrodt. And an Australian business mission will visit Germany for a major business conference in November 1997.

United Kingdom

With the United Kingdom, my colleague, Alexander Downer, established good working relations with key Government and opposition leaders, during his visit to London in September

The Government is now working on a special program for 1997 to promote modern perceptions of Australia in the UK, under the banner of "New Images". New Images has a strong trade and investment focus and includes a number of business development activities in the UK. I am pleased to announce that the Australian Government has earmarked $400,000 as seed money for this program.

France

I can also report that Australia's relationship with France, which was sadly affected by the French nuclear testing program, is now back on track.

Alexander Downer held very constructive discussions in Paris in September, including with Prime Minister Juppe and Foreign Minister de Charrette. Last month, we announced the lifting of restrictions on expanding uranium exports to France.

In February next year, we will be welcoming a high level French business mission to Australia led by the President of the French Employers' Federation. And we are negotiating visa-free entry for Australian businesspersons and tourists into France and Spain. This should happen in the coming year.

Italy

The Government is also planning new initiatives to build stronger relations with Italy, the Netherlands, Greece and Turkey. Ministerial visits to these countries in 1997 will have strong investment promotion priorities.

Last month, the giant Italian food company, Parmalat, decided to invest more than $30 million in Australia, beginning with the purchase of two dairy plants in Albury-Wodonga. This Government is determined to build on the growing interest in countries like Italy and the Netherlands for investing in Australia.

Central Europe

As for Central Europe and Russia, my Parliamentary Secretary, David Brownhill, visited that region last month to promote trade and investment ties. He reported to me that this region will be one of great opportunity for Australian business.

Poland, the Czech Republic and Hungary, in particular, all have great potential and I urge you not to overlook this region as you expand your international operations.

Market Access And Trade Liberalisation Issues

Ladies and gentlemen,

The Australia Government is working closely with the European Union to achieve new momentum for trade liberalisation. Our efforts in this regard have been especially fruitful in connection with negotiations in the lead-up to the World Trade Organisation's inaugural Ministerial Meeting in Singapore next month.

EU and Australian proposals are, in fact, likely to form the basis of the WTO meeting, and I think we can now look forward to a solid and forward-looking outcome at the WTO meeting.

Agricultural trade continues to be a major element in our relationship with Europe. The Government continues to work to lock in the benefits of the Uruguay Round in this area, and to prepare the groundwork for new multilateral negotiations in this sector.

This is being pursued at two levels.

First, within the WTO, a deal has been struck that a process of information exchange and analysis would commence in 1997 to prepare for new negotiations in this sector.

Secondly, the Government is working bilaterally in Europe to encourage further reform of the EU's Common Agricultural Policy.

In the meantime, the Government has had some break-throughs on market access issues.

We have, for the first time, gained access to the French and Irish markets for kangaroo meat. We have been able to overturn decisions taken by some EU countries, in response to the BSE crisis, that would have barred Australian exports of certain beef products.

The Government has also obtained market authorisation in France for Australian-manufactured medical diagnostic equipment.

Next month, the Federal Government is hosting the 1996 National Trade and Investment Outlook Conference (or NTIOC) in Melbourne.

This year's NTIOC will include a special session on the way European companies are using their operations in Australia for successful regional R&D programs. Participants will include senior executives from Alcatel, Ericcsons, Robert Bosch, and ICI. I invite you all to participate in this important conference.

Conclusion

This has by no means been an exhaustive account of the Government's initiatives in relation to Europe. But it does show that the Government is making good on its commitment to restore our relations with Europe.

Of course, the bottom line on Australia's economic performance in Europe rests with the Australian business sector. It is therefore very pleasing to see success stories being given their due attention in the European Business weekly magazine and being formally recognised through this awards ceremony today.

There can be no doubt that Australia's future is going to be determined more than anything by the success or otherwise of our business community in the international market place. Let us not, therefore, forget that Europe includes over 860 million people, and accounts for one third of the world's GDP and half of total global foreign investment.