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Address by Deputy Prime Minister and Trade Minister
the Hon Mr Tim Fischer MP As delivered . . I am delighted to have this opportunity to address the Australia-Latin America Business Council . - I can't promise a performance to match those we have seen so far this evening; my tango isn't what it used to be . - but let me at least try to serenade you on where I see the Australia/Latin America economic relationship, both now and into the future. . . Firstly, though, I would like to commend the Business Council - and particularly its very active Chairman, Jose Blanco - for its efforts in convening this dinner . . In my remarks tonight I would like to concentrate on what the Government is planning to do to build on and reinforce your efforts. . . Let me begin by emphasising that, while the Asia Pacific region will continue to be the main focus, this government will not adopt a blinkered approach to opportunities of real significance in other regions. . . Because if we are to create the climate for sustainable economic growth in this country, we should be seeking out trade and investment opportunities and partnerships wherever they exist . - as a country, we simply can't afford to be selective. What we do need is hard-headed realism and a determination to succeed. . . The government recognises that Latin America is an emerging market of considerable significance and one where there are real benefits in promoting two-way trade and investment . - for the foreseeable future it may not bring large-scale returns of an East Asian magnitude, but the potential is there and we should now be looking to the future - 10 even 15 years away - for our export markets and our commercial partners . - there is scope for Australia to become Latin America's gateway to Asia. . . The economic picture in Latin America is generally promising . - the Mexican crisis undoubtedly dented the overall gloss, but the basics are right . - while talk of new "tiger" economies is perhaps premature, and some questions remain about the sustainability and pace of the refrom process, Latin American states on the whole have shown a commitment to market-oriented reforms and to trade liberalisation. . . And this reform process should lead to sustainable levels of growth - and demand - in the years ahead . - for the eight largest Latin American economies, average GDP growth over the period 1996-2000 is forecast at 4% . - Argentina and Brazil are now widely viewed as among the world's "big emerging markets" - bracketing them with others in our region such as China, India and Indonesia. . . That process of trade liberalisation will open up real commercial opportunities for Australian exporters - the task now is to seize the possibilities and for Government and industry to work cooperatively to that end. . . At present, the Australia/Latin America commercial relationship is growing strongly, albeit from a modest base. . . Australia's exports to the region constituted about 1.3% of out total export trade in 1994/95. . . Australian investment in Latin America, largely concentrated in the mining sector, is more significant . - yet still makes up less than 3% of our total overseas investment. . . Clearly, there is scope for Australia to expand its connections with Latin America. I would propose three target areas for future action - where I will be looking for a genuine business/government cooperation. . . First, there is clearly a continuing need to improve the trade and investment climate for our companies in Latin America and facilitating access to markets through . - market access negotiations and formal bilateral trade dialogues; . - negotiating investment protection and promotion agreements and . - double taxation agreements. . . I believe we have made good progress in building our institutional links with Latin American governments - an investment protection agreement has been signed with Argentina and one is very near to completion with Chile. . . In this area I would like to mention a promising initiative which will enhance the level of dialogue on trade and investment issues between Australia and key South American countries. . . I am referring to the establishment of a CER/Mercosur dialogue, that is a dialogue beween Australia and New Zealand and the countries of the Southern Cone Common Market: Brazil, Argentina, Paraguay and Uruguay. . - CER-Mercosur foreign ministers met in September 1995 and the first senior officials-level talks will be held next week - on 29-30 April - in Auckland. . . Our objective for the dialogue is to influence both regional intergration developments in Latin America and to explore ways to broaden our bilateral relations with the Latin American region. . . The intention is to devleop an agenda focussing heavily on trade/business facilitation . - and we are hoping that the Auckland meeting will generate a valuable exchange on key issues of interest to business such as . : the recognition of standards and professional qualifications, investment rules, customs procedures . : we also see great value in the dialogue as a way of consolidating and widening the already excellent trade policy cooperation we enjoy with many of the Latin American countries, for example in the Cairns Group and more generally across various issues in the World Trade Organisation. . . The second area I would like to mention is Austrade's support network. . . I mentioned earlier that Latin America offers a range of opportunities. Let me put a number on that . - I think our target should be for Australian exporters to win $ 1 billion of new business by 2001 in key sectors such as: . : mining . : telecommunications . : infrastructure . : agribusiness; . : and marine industries. . . Austrade's network of Business Units in Australia and Trade Commissioners in Latin America, stand ready to assist companies in securing business to translate that target into a reality . - the annual National Trade and Investment Outlook Conference (NTIOC) is a further vehicle available for business to make contacts and promote their capabilities, products and services . - I would mention that at NTIOC 96 Argentina will be the Latin American focus country, following on from the good results we saw last year with Brazil. . . Finally, let me mention briefly the issue of Australia/Latin America air services, which I am aware is of considerable interest to many of you and a problem I hope we can advance in the coming months. . . Two recent developments are of interest: . . I am pleased to be able to announce that, late last week, Australia and Chile reached agreement on an air services arrangement which will open the way for code-sharing between Qantas and Lan Chile . - thus making a major contribution to improving the existing connections . - I hope this positive outcome - which I am delighted to see at long last - will set an example for broader Australia/Latin America trasnport links. . . Secondly, many of you will be aware that this issue is currently being reviewed in the Australian Parliament by the Senate Committee on Foreign Affairs, Defence and Trade . - my Department will be making a submission to this review, arguing the case for an upgrading of transport links between our two regions . - this review will be a further opportunity to promote sensible, business-friendly solutions. I will be closely following the result. . . To conclude, then, there is reason to be optimistic about Australia's growing relationship with Latin America. Business has in many respects led the way in Latin America - I commend you all for your sterling efforts to date . - not only has it made a great contribution to your own corporate interests, but you have played a major role in opening up an awareness of the economic potential of Latin America . - the challenge now, for government and business, is to take the next step - to broaden and deepen the links. That will take a real effort, but I'm sure you would agree it will also have its attractions. . . For my own part, I am looking forward to making an early visit to Latin America.
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Local Date: Saturday, 06-Dec-2008 04:45:27 EST