Speech
(Check against delivery)
19 September, 2002
At an event to mark
The Export of the New Model Camry to the Middle East
Introduction
Ladies and gentlemen,
I am very pleased to be here to mark the export of the new model
Camry to the Middle East.
I congratulate Toyota Australia on a great success story.
In less than a decade, Toyota Australia has helped build our presence
in the Middle East market for automobiles to the point where this
market is the mainstay of our export program.
The Middle East now accounts for nearly 60 per cent of all Australian
vehicle exports.
And Australian-built Camry is the biggest selling passenger motor
vehicle in Saudi Arabia.
This is a wonderful result for Toyota Australia - made possible by
the team effort of the workers and management at Altona and the Toyota
suppliers throughout Australia.
The Australian engineers at Toyota have done a great job in modifying
this global car to make it perfectly adapted to the difficult climatic
and road conditions of the Middle East.
I welcome Toyota Australia's decision to invite Middle East journalists
to Australia to see for themselves this remarkable team effort - it
will help give the car, and the export program, a real Australian
flavour.
The Australian Industry and exports
Today, we can also take pride in the transformation of the Australian
automobile industry.
From an industry that was once highly protected and with little export
potential, it is now producing vehicles that are truly world class.
It is making a big contribution to Australia's exports overall.
Total export revenue earned by the industry was $4.9 billion in financial
year 2002 - $3.2 billion for vehicles and $1.7 billion for components.
Automotive exports now rank ahead of exports of beef, wheat and wool
and just behind gold and iron ore.
And the industry is well on track to achieve its export target of
$6 billion by 2005.
Developing Exports
These exports are providing the growth necessary to achieve internationally
competitive levels of production.
It is therefore important that we expand our existing markets and
develop new ones - as you are doing.
The Middle East market in particular can be developed further as
the industry brings on the wider range of models that are at the planning
and development stage.
I was in Iran earlier this month and saw for myself the potential
of a market which has been virtually closed to imports for years.
I was thus particularly pleased to have a representative from Toyota
Australia on my delegation.
Indeed, when that market opens up, Australia will be in a good position
to replicate the success achieved in other parts of the Gulf.
Diversifying markets
As the Minister for Trade, I am well aware of the importance to the
industry of developing a more diverse range of export markets.
And I am well aware that this will not be easy.
High tariff barriers exist in some markets, particularly in South
East Asia.
These barriers are making it virtually impossible to sell Australian-made
vehicles in our closest Asian markets.
China's liberalisation plan for automotive products over the next
five years - part of its accession to the WTO - has set the tone for
the rest of the Asian region.
We hope that these countries will realise that if they fail to liberalise
they will be left behind as others become more internationally competitive.
Trade Policies
We will continue to work hard with industry to knock down these barriers
and improve market access.
A more open global trade regime for automotive products will be one
of Australia's priorities in the new round of WTO trade negotiations
which was launched in Doha last year.
We are also promoting access by negotiating bilateral free trade
agreements. Negotiations have commenced with Thailand and we will
be looking for a good outcome for the automotive sector from those
negotiations.
In July, I was in Dubai and hosted an event to promote the Australian
automotive industry.
And Austrade is working with the industry to explore opportunities
in the prime target markets of China and Indonesia.
Conclusion
I'd like to close by noting that all Australians can be proud of
the successes which the automotive industry has chalked up in recent
years.
The greater the successes of companies like Toyota, the more jobs
are created, and that is something which we strongly support.
There are even more opportunities out there and we can look forward
to exciting export results in the future.
Toyota Australia has shown it has the skills and the products to
continue to be a driving force - no pun intended - in the competitive
export market.
I wish the company every success in its export endeavours.
