Speech
2 September 2002, Perth
Address to the ATBC Joint Conference
Introduction
Minister Lin, Chairman Cheng, Chairman Sinclair, distinguished guests,
ladies and gentlemen.
It is a pleasure to be here today and see the strength of the Australia-Taiwan
business connection. I see many participants here today from Taiwan,
and I welcome each of you and hope that your visit is rewarding.
Australia has been well served by the Australia-Taiwan Business Council,
and has a tremendous asset in the ATBC and its sister organisation,
the Taiwan-Australia Business Council, which have worked so well
to develop and strengthen business networks and people-to-people contacts.
I commend both councils for their contributions.
These Joint Meetings have a valuable role in exchanging ideas and
exploring new opportunities.
I would like to pay particular tribute to the Australian Chairman,
Ian Sinclair, for his commendable efforts over the past few years
to build closer links between our business communities. Chairman
Cheng too has been a tireless and constant supporter of the strong
relationship between the two business communities.
Although Australia does not have diplomatic relations with Taiwan
under its one-China policy, the Australian Government is nevertheless
committed to the economic relationship with Taiwan and supports a
range of programs designed to support Australian companies in their
commercial dealings in Taiwan. Being here today gives me the opportunity
to get a closer sense of the issues you are facing in your operations,
hear from you what is working, and talk to you about the broader environment.
Australia and Taiwan as Partners
I am delighted to hear that, after a period of difficulty, the Taiwan
economy is picking up - with growth forecasts for 2002 of nearly 4
per cent, following first quarter growth of less than one per cent.
The Australian economy also continues to grow strongly, with 4.2%
growth over the past financial year, and forecast to grow at 3.7 per
cent over this financial year, showing a very low rate of inflation.
Taiwan is a particularly attractive market for Australian businesses
because of its strong base and steady demand for the products which
Australia is famous for - biotechnology, information and communications
technology, transport technology, as well as our agriculture and resources
products.
Taiwan is Australia's 9th largest trading partner, with
total trade valued at A$8.4 billion in 2001, our 8th largest
goods export market, and our 13th largest services export
market.
The good relationship we have worked to develop with Taiwan underpins
the support we provide to Australian companies doing business there.
This benefits Australian business across the entire spread of their
business dealings.
Australian companies seeking to enter the Taiwan market, or expand
their market share, have the resources of the Australian Commerce
and Industry Office and the Australian Business Centre in Taipei.
They provide strategic market entry advice and information on changes
to regulations, bureaucratic processes, tender requirements, standards
and any other of a huge range of business matters.
I am proud of the tangible benefits companies receive from this support.
This month the Australian Quarantine and Inspection Service (AQIS)
and Taiwan Fisheries Administration quickly resolved a problem relating
to import standards which had the potential to stop the export of
live seafood from Australia.
In June, the West Australian rock lobster industry needed urgent
assistance to clear a shipment of live rock lobsters, which had been
denied entry due to misapplied labelling instructions.
Our liaison had the shipment cleared in one hour.
In April the Australian Commerce and Industry Office made representations
to Taiwan authorities on the terms and tenders for rice imports into
Taiwan, and as a result, Australian rice exporters were well positioned
to compete in the Taiwan rice market.
In other fields, the business relationships built up over time have
generated partnerships that deliver outstanding results for both sides,
generating employment and revenue in a challenging business environment
But our importance to each other extends much further than the strong
economic ties we enjoy.
Over 80,000 tourists from Taiwan visited Australia last financial
year.
Many people from Taiwan have also chosen to settle and build their
businesses in Australia. These entrepreneurs are some of the most
dynamic in the region, and we all benefit from their contribution
to commercial relations between Taiwan and Australia.
Cultural exchanges are also growing, as are academic and research
links. Taiwan cinema audiences were enthusiastic about the recent
Australian Film Festival, which showed some of Australia's recent
box-office successes such as CHOPPER, LOOKING FOR ALIBRANDI, AND
DOING TIME FOR PATSY CLINE.
This year, we were the destination for 8,000 of Taiwan's university
students, many of whom go on to play a key role in building people-to-people
contacts and cultural understanding.
Taiwan has sister university relationships with 22 of Australia's
38 tertiary institutions.
People-to-people links will be further strengthened when the Working
Holiday Maker Arrangement goes into operation later this year, providing
young people with working visas.
The Investment Opportunity
Clearly, there is a lot going for the relationship, and just as importantly,
a lot of undeveloped potential.
In particular, two-way investment is still low when viewed against
the overall strength of both economies and the healthy trade figures.
Taiwan ranks only seventeenth as a source of investment for Australia,
and twenty-third as a destination for Australian investment.
There is a natural logic to the economic partnership between Taiwan
and Australia, particularly in investment. The resource complementarities
which provided the impetus to the trading relationship are still there,
but now we have so much more to work with.
We both have strong, stable economic growth.
Our industries are globally competitive.
We have tackled the hard questions on structural reform, and in Taiwan,
the WTO implementation process is assisting that process.
We are both information economies with sophisticated information
and communications technologies that support our globally competitive
companies.
Australia is economically and politically stable, with clear and
open foreign investment regulations.
Taiwan is only just starting to benefit from business connections
with Australia's high-technology capabilities. I mentioned already
two terrific demonstrations of what can be achieved: the Taiwan investment
in photonics and in satellite TV. But there are many other opportunities
for entrepreneurial businesses.
Australia will continue to be one of the world's most competitive
natural resources suppliers. But even in our resources trade we are
able to go much further. We supply transport infrastructure, oil
and gas technology, and world-class scientific expertise and support
to industry.
There are a number of areas where Australia has a clear competitive
edge.
High-tech industries in areas of Australian expertise such as biotechnology
and Information and Communications Technology (ICT)
Australia is increasingly gaining recognition as a centre of excellence
for the ICT industry.
For example, Taiwan's largest private telecommunications group and
fourth largest business organisation, Taiwan Telecom Group (TTG),
will establish an R&D centre, Taiwan Telecom Australia (TTA) in
Sydney, to support its Asia Pacific operations.
TTA's R&D centre will focus on broadband data service technologies
and the development of next-generation fixed and wireless products
to meet the demands of the fast growing Asia Pacific market.
In its first year, TTA's multi-million dollar investment will employ
some 30 R&D professionals.
We have brought our competitiveness in natural resources into the
new economy with innovative uses of scientific expertise
Australia's mining sector now supplies 60% of the world's mining
software programs, and the export of mining technology, services and
equipment exceeded $1.5 billion in 2000. That industry has also been
the quickest to make use of the Business-to-Business internet hub
to reduce transaction costs.
Liquid Natural Gas
Australia's vast LNG reserves and our globally competitive infrastructure
make it a natural partner for supplying dynamic and growing economies
overseas.
We understand Taiwan's need to diversify its energy supplies and
move towards environmentally-friendly sources of energy.
The Australian Government would strongly support Australian companies
such as ALNG, if it decided to go ahead in its proposed bid.
We look forward to Taiwan's announcement of fair and competitive
terms and conditions for its LNG tender.
Science and Technology
Another growth sector for the trade and investment relationship is
science and technology.
Australia is a world leader in many areas of technology.
Taiwan is becoming a "Technology Island", based on its
successful IT industry.
Australia is at the cutting edge of innovation, while Taiwan has
real strengths in delivering commercial products to world markets.
The Australian Government places a high priority on developing these
complementary advantages.
Planning for the Future
To realise our shared economic potential, Australia and Taiwan need
to work creatively on the longer-term direction of the bilateral relationship.
There have been positive developments in this regard over the past
year.
At the Bilateral Economic Talks in May in Taipei, both sides agreed
to undertake a joint investment study to look at the causes of the
low levels of bilateral investments
The Chairman of the Taiwan Fair Trade Commission signed a Cooperation
Arrangement with his counterpart, Professor Allan Fels, Chair of the
Australian Competition and Consumer Commission.
The Working Holiday Maker arrangement will deepen the people-to-people
contacts on which the business relationship grows.
Conclusion
In conclusion, my main message is that the Australian Government
regards the commerical and trade relationship as a very valuable asset.
We fully intend to continue to build on this very strong foundation.
Australia and Taiwan need to work creatively on the longer-term direction
for the economic and people-to-people relationship.
We want to develop a long-term, mutually beneficial business partnership,
and we are pleased at signs that Taiwan feels the same way.
The two business councils will continue to be valued partners and
crucial to our pursuit of this objective.
I wish you all the best for the balance of the conference.
Local Date:
Saturday, 22-Nov-2008 09:09:22 EST
