Introduction

Ladies and gentlemen

The Iraqi regime has collapsed, Baghdad has fallen and the Iraqi people are now expressing their true feelings about Saddam Hussein.

Our troops - as true professionals - have performed magnificently in the coalition effort to disarm Iraq of its WMD.

We are very proud of our young men and women in Iraq.  They carry with them the support, thoughts and prayers of all Australians, and the desire of all of us for their safe return home to our shores.

As any prudent government would, we are looking beyond the conflict in Iraq.

We have announced Australia will assume a role in the post war Iraqi transitional authority.

And our commitment to humanitarian relief and reconstruction for Iraq now stands at more than $100 million.

Following a decision by the United Nations to buy the 100,000 tonnes of Australian wheat from the Australian Government under the oil for food program.

$38 million will now be committed to the recent UN Humanitarian Flash Appeal for Iraq, which will be managed by experienced international humanitarian agencies.

And $45 million will be committed for early and high priority reconstruction activities, especially to promote food security and to kick-start economic activity and rebuilding.

We are deeply engaged with the US, UK and the United Nations on post-conflict reconstruction issues.

We worked hard to get the UN Oil for Food Program up and running again. 

As a result 50,000 tonnes of Australian wheat is already being unloaded in Kuwait and a second shipment of 50,000 tonnes is only days away from unloading in Jordan.

AWB have advised that another three shipments totalling 150,000 tonnes should be loaded this month for sale to Iraq under the UN Oil for Food Program.

And we are confident that the remaining approx.1 million tonnes AWB has in outstanding wheat contracts under this scheme will be honoured.

We have made our position clear, that Iraq's economic rehabilitation is a priority, and agriculture, energy and economic planning clearly are areas where we can contribute.

The expertise and record of WA firms in the Middle East, particularly in areas such as construction, resource development, energy infrastructure and agriculture, stands you in particularly good stead to succeed in the new Iraqi market.

Austrade and the Department of Foreign Affairs and Trade are ready to help and they are already working closely with chambers of commerce and relevant industry associations.

They have representatives here today and I encourage you to approach them this morning if you have any questions regarding opportunities in Iraq for your businesses.

A trade policy strategy

Ladies and gentlemen

Our government has adopted a trade policy strategy of competitive liberalisation - a strategy thatreflects the most ambitious trade agenda in Australia's history.

In the past twelve months, we have concluded a Free Trade Agreement with Singapore, begun negotiating FTAs with the US and Thailand, and advanced trade and economic agreements with China and Japan.

We have signed a Closer Economic Partnership agreement, along-side New Zealand, with the ten ASEAN member countries, and we have re-invigorated the APEC agenda on issues affecting the Asia-Pacific region.

We have ensured, as Chair of the Cairns Group, that it has become - along side the United States and European Union - the third force in the Doha Round of global trade negotiations.

All these initiatives - at the multilateral, regional, and bilateral levels - are part of our strategy of maximising trade opportunities with individual countries, in the Asia-Pacific, and globally.

It is a strategy that is all the more important now that the Doha Round of multilateral trade negotiations - as expected - has stalled over agriculture, and where international economic conditions remain, at best, weak.

Now is the time when we must sustain the momentum for trade and investment liberalisation - by doing what we can in APEC and other regional fora, and bilaterally through our individual trade initiatives.

What better way, in our own region, of demonstrating the benefits of trade and investment liberalisation, by forging a Free Trade Agreement with Singapore, and now with Thailand.

I commend to you yesterday's editorial in the Australian Financial Review, which sets out cogently the case for a trade strategy of competitive liberalisation, stating:

In the end, our trade strategy is about ensuring, in a difficult and uncertain trading environment, that our exporters achieve greater access to overseas markets as quickly, as broadly and as deeply as possible.

An FTA with the United States

Ladies and gentlemen

The most significant bilateral trade deal we are now negotiating is the Free Trade Agreement with the United States.

We have an historic opportunity to become even more deeply integrated with the world's largest economy.

This is an opportunity which could generate exponential growth in the Australian economy for decades.

Last month we got off to a very good start in the negotiations.  Working groups met face-to-face for the first time, covering the broad areas that will be addressed in an eventual agreement.  These included:

Additional working groups have been meeting since the first round by video-conference, covering issues such as government procurement, financial services, telecommunications and electronic commerce.

The aim of the first round was to lay the groundwork for the negotiations - by discussing issues such as scope, framework issues, and ideas on what will be covered in each of the chapters of the agreement.

The next two rounds of negotiations will be held in mid-May, and again in mid-July, in Honolulu - where Steve Deady and his negotiators will get to fly the same time and distance as their American counterparts.  Just to establish some early balance in the negotiations.

A key area of public debate on a Free Trade Agreement in this country - and in the United States - has been on agriculture.

We face considerable barriers to our agricultural products in the US market - in particular on sugar and dairy, but also through tariff quota systems imposed on our beef and lamb, and our cotton.

Some observers here in Australia are assuming that a negotiation will be one-sided, because the sheer size and influence of the agricultural lobby in Washington means we simply won't be able to change US barriers.

They also argue that an FTA negotiations will result in intense US pressure to change our policies and practices, such as single desk export marketing arrangements for grains, and aspects of our quarantine system.

Other critics have suggested that an FTA negotiation will result in pressure on Australia to abandon public policies in health and education, welfare, the promotion of Australian culture, or the ownership of utilities such as water.

No one - least of all myself - is pretending that we won't face questions from the Americans about sensitive sectors of our economy - just as they will face questions from us.

But the critics forget (or conveniently ignore), however, a number of basic factors:

We are now both ambitious - very ambitious - about completing the agreement in 2004.

Our FTA with Singapore

Ladies and gentlemen

Just over eight weeks ago I signed, with my counterpart George Yeo, a Free Trade Agreement with Singapore - our first FTA since the Closer Economic Relations agreement with New Zealand 20 years ago.

SAFTA, as we call it, is a wide ranging and comprehensive agreement, covering tariff free access for goods, improved market access for services, and cooperation on areas such as e-commerce, standards, education, intellectual property, competition policy and customs procedures.

On services, in particular, we made some excellent progress in access to the Singapore market - which as you know is an important hub for financial, legal and telecommunications services in South East Asia.

SAFTA is not just significant because of what it achieves between our two countries - substantial trade and investment liberalisation, especially in services.

SAFTA is also strategically significant - because it now serves as both an example and as a template for our strategy of competitive liberalisation and for what we are doing elsewhere in the region, and globally.

An FTA with Thailand

Ladies and gentlemen

In addition to the US negotiations, we are currently negotiating a free trade agreement with Thailand, a significant market for our goods and services in South East Asia.

Thailand has an average tariff of around 15 percent, very high tariff peaks on products of particular interest to Australia, and a number of other significant market access restrictions, including on investment.

A Free Trade Agreement that opens up genuine access to the Thai market for Australian business would therefore yield substantial benefits, and have an important demonstration effect on other countries in the region.

Last November, I agreed with my Thai counterpart, Commerce Minister Adisai, that we should complete the agreement by mid-2004.

Last month the two sides exchanged request lists on tariffs - with our aim being to substantially eliminate tariffs, with no sector or product group being excluded.

On investment, we want an outcome that significantly improves the transparency and predictability of the Thai investment regime, and which entrenches most-favoured-nation treatment for Australian investors.

On services, we are seeking an outcome that will eliminate discriminatory treatment and improve conditions for our services exporters across a wide range of sectors.

Our Free Trade Agreement with Singapore is serving as a model for the negotiations with Thailand.

We have to be mindful, however, that this is the first FTA Thailand is negotiating with an OECD country, and its developing country status means that the Thais are likely to seek flexibility in the agreement.

Nevertheless, I am confident that we can reach a high quality agreement that can promote greater trade and investment between our two countries, and therefore a greater standard of living for our two peoples.

After Singapore, Thailand is the "next cab off the rank", if you will, and I look forward to consolidating our push for free trade and greater market access with other countries in the region.

China

One of the Government's highest priorities in the Asia-Pacific is China.

The role of prominent Western Australians - and the companies they represent - in securing the LNG deal last year shows how well attuned business here is to the opportunities in China.

Last year the Prime Minister and Chinese Premier Zhu launched consultations to further enhance economic and trade links. 

Our aim is to chart a course for developing the relationship.

This is a challenging and ambitious objective, but it is one that I believe holds major potential for our economy in the longer term.

I will hold more detailed discussions on these issues with my Chinese counterparts during my visit to China later this month.

Japan

We are also pursuing a trade and economic arrangement with Japan reflecting that country's ongoing major significance as an export market.

Of course, Japan's defensive position on agriculture remains the major impediment to launching free trade negotiations.

But despite Japan's lack of ambition, we are pressing for an arrangement that delivers meaningful outcomes for business and confirms the commitment of both countries to developing trade and economic links.   

Conclusion

Ladies and Gentlemen,

Our strategy of competitive liberalisation - and our achievements over the past year - mean that our primary producers, manufacturers and service providers are getting the most out of global trading opportunities.

Our challenge now is to remain as efficient and as competitive as possible, and to take advantage of all opportunities for better access to overseas markets.

We have to develop our strategy of competitive liberalisation, to ensure better market access globally, in the region, and with our individual trading partners.

The Doha Round remains a vital part of our overall trade policy priorities - because, in the end, we stand to gain the most from commitments that bind all 145 members of the World Trade Organisation.

But while the Doha Round goes on, and where complementary opportunities for early access to key markets for our goods and services arise, then we will pursue those opportunities.

In doing so, we will be bolstering the multilateral system, and vice versa.

Our FTA with Singapore, our negotiations with Thailand and the United States, and our proposals to modernise trade and economic relations with China and Japan are entirely consistent with our multilateral efforts.

Your part in telling us your priorities in each of these negotiations - through the various consultative mechanisms we have created - is very important.

After all, each negotiation is an opportunity for you and your companies to pursue opportunities for greater market access, and have your interests reflected in these agreements.

These are challenging times, yet full of opportunities, we are keen to embrace the challenges in pursuit of the opportunities.  We want you to come on this journey with us.

Thank you.