Australian Business Club, Peru
18 November 2008, Lima, Peru
Introduction
Thank you, Nick Baker (Austrade Consul-General Lima) for your introduction, and my thanks to the members of Australian Business Club here in Lima for giving me the opportunity to join you this evening.
I also acknowledge our friends from the Peruvian Congress, the Australia Friendship League and the Peruvian Ministries of Foreign Affairs and Trade.
I’m visiting Peru to attend the APEC Trade Ministers’ meeting. It’s good to be back following my earlier visit to Arequipa in May.
I’m delighted to have this opportunity to say a few words to you about the Australian Government’s continuing endeavours to defend and promote the liberal international trading system, as well as our support for Australian companies doing business here in Peru.
The critical importance of free trade
Against the backdrop of the continuing global financial crisis, one of the most important interests we in Australia share with our Peruvian and other Latin American counterparts is achieving a successful outcome to the WTO Doha Round.
This remains the Government’s most pressing trade policy priority.
This is the first opportunity for Trade Ministers to meet following the G20 Leaders Meeting in Washington last week. Nine of the 20 countries are here this week and we all have strong links through our groupings to the other G20 members.
G20 Leaders directed Trade Ministers to do all that they can to conclude modalities for the Doha Round this year. Importantly, they committed to remain engaged in the process to see it through.
We have an excellent opportunity this week to build on our Leaders support and to add further momentum to conclude modalities this year, including through a meeting of Ministers in Geneva next month.
The nations of APEC represent nearly half of the global economy – and therefore the decisions we take this week will be an extremely important part of the international communities responses to the global financial crisis, including on the trade front.
We all understand the value of the free, open trading system that has delivered incredible benefits to both Australia and Latin America, and provided certainty to businesses and investors.
This is a message I’ll be taking to APEC, too, along with my colleagues from Peru, Chile and Mexico.
We believe APEC must add its voice to the calls for economies across the world to resist protectionist pressures arising out of the financial crisis.
We will also be looking to APEC to take forward a new agenda aimed at encouraging economic reform and the so-called “behind the border” agenda.
As business people in the APEC region you will know that inadequate regulatory systems, lack of transparency, and the inhibition of domestic and foreign competition impede our trade and investment just as much as tariffs and other trade barriers.
Australia’s Latin America Engagement
It has been good to visit Latin America and see first hand the successes Australian companies have been carving out here.
Australia’s trade with Latin America increased 20 per cent over the last two financial years but still represents just 2 per cent of our total world trade.
The Australian Government is determined to improve this record by
doing all we can to help businesses realise opportunities to further increase trade and investment.
Here in Peru, it’s very encouraging to see Australian companies playing a leading role in the mining sector, supplying equipment and technology to this important industry. Investment flows have also been good.
The Australian business presence here is growing, our two-way trade levels are increasing and the number of Australian businesses exporting here has expanded to over 200.
Strong as the mining sector is, we’re also beginning to demonstrate our strength across a range of other sectors. It’s an extraordinary example, but I’ve even heard that we’ve exported small quantities of alpaca fleece to Peru.
Austrade, through Expo Australia, Australia Business Week and its Extemin[1] Pavilion, is showcasing Australian businesses as smart, dynamic and affordable options for Peruvian partners.
And Australian businesses are doing a fine job to develop a strong presence across sectors including agribusiness, food and beverage and clothing.
Our education services exports to Peru are also performing well and I’m sure that in the long term this in itself will improve Australia's commercial ties with Peru as these students graduate and go into business and government.
Conclusion
Australia and Peru are building bilateral ties across the Pacific based on our shared interest in global and Asia-Pacific openness and prosperity.
Latin America is a priority area for the Australian Government because we feel that too little has been done in the past to build solid political and commercial relationships here.
I’d like to acknowledge the important role Australian businesses are playing in strengthening our ties across the Pacific. Your hard work to take advantage of outstanding trade opportunities here in Peru is adding real depth to the broader bilateral relationship.
I congratulate you on the commercial success you’ve carved out in this important, emerging market and I look forward to hearing from you how the Australian Government can further support your endeavours to develop the trade and investment relationship.
Thank you.
[1] Extemin a mining exhibition held biennially in the Peruvian provincial city of Arequipa. In 2007, 35 Australian companies exhibited their mining equipment, software and services on the Austrade Pavilion.