Address by The Hon Tim Fischer MP, Deputy Prime Minister, Leader of the National Party, Minister for Trade, to the Nagoya Chamber of Commerce and Industry, the Nagoya City Government and the Aichi Prefectural Government, Nagoya, Japan, 31 July 1997

Introduction

Governor Suzuki, Nagoya Deputy Mayor Tomouchi, Nagoya Chamber of Commerce and Industry Vice-Chairmen, Distinguished Guests, ladies and gentlemen.

It is a great pleasure to be here today in Nagoya before such a large audience with a keen interest in relations between Japan and Australia.

As you may be aware, the purpose of my visit to Japan this week is to attend the Australia - Japan Ministerial Committee meeting, which six other of my colleagues will also be attending. The "AJMC" as it is called, is an important institution in bilateral relations. It was one of the first such Ministerial-level dialogues that Japan developed with another country, and is the only one that has been held regularly for twenty-five years.

For both Australia and Japan, it represents a key, regular opportunity for counterpart Ministers from Australia and Japan to discuss issues affecting the relationship between our two countries, and broader trade, strategic and political issues in the region and the world.

Australia-Japan Relationship

I would like to emphasise that the Australian Government came into office with an unequivocal commitment to strengthening further its relationship with Japan.

The close partnership which has developed over the years between Australia and Japan has been highly beneficial for each of our countries.

This year marks the fortieth anniversary of a turning point in our two countries' relations.

One of my predecessors as National Party Leader and Deputy Prime Minister, Sir John McEwen, together with then Japanese Prime Minister Kishi, established the framework for the growing trading relationship when they signed the Australia-Japan Commerce Agreement in Hakone in 1957. This farsighted pact fuelled both countries' post-war economic growth. We were very honoured to have MITI Minister Sato in Australia earlier in the month to help us commemorate this important anniversary.

But it is worth reflecting that, apart from the bilateral trade aspects, our two countries have developed a diplomatic relationship that is both significant and strengthening all the time.

Importantly, this includes a history of cooperation in the regional and multilateral contexts - in APEC, the World Trade Organisation and regional security.

Australia and Japan: Bilateral Trade

The crucial importance of Japan to Australia is clear: Japan has been by far our largest trading partner for nearly three decades.

Last year, exports to Japan were $15.5 billion (20 per cent of Australia's total exports), while imports were $A10.2 billion (13 per cent of Australia's total imports).

Australia is, and will remain, one of Japan's most important and dependable suppliers of energy, raw materials and food. Conversely, access to Japan's growing market will remain critical for the Australian economy.

The Australian Government therefore welcomes Japan's recent initiatives on import promotion and economic deregulation and particularly Prime Minister Hashimoto's commitment to reform. I look forward to having further discussions about this with Prime Minister Hashimoto and Japanese Ministers later in the week.

Australia and Chubu region trade relationship

When we look at the enormous trading relationship between Australia and Japan, it is important to remember that the trade is not just confined to the Tokyo and Kansai area. And it incorporates small- and medium-sized enterprises as well as the largest firms.

The Chubu region has the well earned reputation for being one of Japan's, and the world's, great industrial centres. As the home to so many of Japan's greatest companies and the manufacturing base of many others), the region is of crucial importance to Australia.

Similarly, I believe that Australia is of great importance to Chubu.

This is not only because Australia is a leading supplier of raw materials, energy and food, but we are a sophisticated and welcoming market for Chubu's exports. Australia is increasingly a source of high quality new products and services.

For example, during my brief stay here in Nagoya, I have taken part in events show-casing some fine Australian products - newly-harvested Australian "koshihikari" rice, a range of natural skin-care products, premium Australian wine and fresh Australian wild flowers. Last year, I was able to visit briefly neighbouring Gifu Prefecture to open the Orugano Australian Housing village.

These fast-growing and exciting areas are just a few examples of where Australia is fast gaining recognition for innovation, imagination and outstanding service.

Mr Ian Brazier, the newly-appointed Australian Consul and Trade Commissioner in Nagoya and his Austrade staff, as well as Australia's Embassy team, are working hard to promote a range of products and services which we believe are cost-effective and will meet the demands of discerning Japanese consumers.

Australian trade priorities in the Chubu region are to focus upon growing sectors such as processed food and beverages, and specialist education, as well as sectors where Australia has outstanding advantages such as marine pleasure craft and marina-related developments.

A high priority will also be given to automotive parts and computer software - sectors in which Australian companies have achieved great successes in North America and Europe, but are only beginning their large-scale investment with Japan.

Over the next decade, a number of important large-scale projects and developments currently underway will further enhance Chubu's stature as a leading region in the Asia Pacific.

The new Chubu International Airport is perhaps the most exciting of these. Australian companies - both large and small - have much in the way of expertise and quality products to offer the new Airport project and I ask that you consider Australian firms as potential partners.

Expo 2005

My comments about the importance of the Australian relationship with this region would not be complete without conveying Australia's congratulations to the people of Aichi Prefecture (and Governor Suzuki) on winning the hard-fought bid to host the 2005 World Expo.

The 2005 World Expo will bring the global spot-light on Aichi in the same way that the 2000 Olympics will focus the world's attention on Sydney.

Australia was very pleased to be able to support Aichi's bid and we hope that we might have Japan's support for Australia's bid for the 2002 Gold Coast Expo.

New Directions for the Bilateral Relationship

Over 40 per cent of Australian exports to Japan are now made up of processed goods, and manufactured products and services. Some of these goods have been developed specifically for the Japanese market: Australian -made sake is just one striking example.

The message I would like to leave with you today is that Australia excels in a number of high growth sectors - processed foods, housing and construction, transport equipment, such as fast ferries, cars and auto parts, telecommunications and services.

We have a number of very positive features that make us an excellent place to trade with and invest in:-

- Australia's workforce is well-educated;

- Commercial and residential accommodation and other business overheads are cheaper in Australia than in many other regional capitals;

- Australia has a reliable legal system and business environment;

- We have an enviable lifestyle, high-quality education system and increasing Asia expertise; and

- Australia has a first-rate telecommunications and information technology system.

The Australian Government has not been complacent about our natural advantages.

We have sought to strengthen Australia's international competitiveness by putting in place quite far-reaching structural, economic and institutional reforms.

These include reforms in the financial sector, labour market and industrial relations, economic infrastructure, telecommunications, competition policy and public service reforms.

The depth and success of these economic and labour market reforms and the trade potential they represent has been recognised during a number of high-level visits to Australia recently.

These include Prime Minister Hashimoto and the Keizai Doyukai (Association of Corporate Executives). In September, at Prime Minister Howard's invitation, the Japan Federation of Economic Organisations, Keidanren, will also send the most senior group of business executives to Australia, led by Keidanren Chairman, Dr Toyoda.

Conclusion

Time has prevented me from doing more than provide a brief thumb-nail sketch of what is now a very substantial and growing partnership between Australia and Japan.

In the year of the fortieth anniversary of the landmark Australia-Japan Commerce Agreement, I applaud the close connections which have grown up between our two countries. I look forward to our developing, in the future, an even closer partnership.