Transcript - E&OE
20 July 2009
Doorstop Interview, Singapore
Subjects: Mr Stern Hu; Australia-China FTA; Cairns Group meeting; trade with India.
REPORTER: Minister, Mr Hu (Mr Stern Hu, Rio Tinto Group executive) being imprisoned, how is that going to affect trade between China and Australia?
SIMON CREAN: We don't know what the charges are because the charges haven't been made, and we would like the answer to your question. And, that's why we've been asking the Chinese Government and the authorities to give us more and better particulars and to do it expeditiously.
This is a case being conducted in accordance with China's law. The processes are also in accordance with the consular agreement that we have with them. But, we want further and better particulars and for that to be done expeditiously.
As for the impact on the economic relationship between our two countries, I don't believe, particularly if this case is handled properly, it will have any impact on those relations. I believe that the economic relations between the two countries are such that both countries need each other, that the interdependency between our two economies is now huge on both the trade flows as well as investment flows.
What we're trying to do, of course, is to give greater clarity as to the nature of that economic relationship and that's why we're pursuing a free trade agreement (FTA) with them.
REPORTER: How about the ongoing iron ore talks? What impact does that have on that?
SIMON CREAN: The ongoing iron ore talks are a matter for commercial considerations, and that's the point that I have consistently made to China. That these are not matters that the government, the Australian Government, will get involved in. Iron ore matters are for the commercial partners. Now China sought and obtained from Australia recognition of being a market economy. What we're saying is that they have to operate in one.
REPORTER: Did you meet with Mr Hu on your trip to China?
SIMON CREAN: No, I didn't, but he has had consular access and that is in accordance with the agreement that we've undertaken. We've of course been seeking continued access at consular level also for his family, also for him to obtain appropriate legal representation, and for the matter to be progressed expeditiously. As I say, no charges have yet been made.
REPORTER: Where is the free trade agreement at?
SIMON CREAN: The free trade agreement is still progressing, but it is not progressing as fast as I would have liked, because essentially we've said to the Chinese that there's no point in continuing to have further technical level discussions unless we get a clearer signal; not just of the political will to conclude, because I am convinced that such a will does exist. What there needs to be is a more effective coordination of the competing agency views that China must deal with if it's to finalise the FTA.
That being said, I've taken the view in relation to our economic relationship with China that just because the free trade agreement is not progressing as quickly as we like, it isn't the only basis upon which we engage China. And that's why, the last two visits that I've made to China have been to the regions; to identity the commercial opportunities to get government-to-government frameworks at the regional level to facilitate those commercial partnerships, and I think we're making important progress in that regard. It's what is referred to as the second front, if you like, in terms of our approach with China.
REPORTER: What's China's response to that?
SIMON CREAN: China's response to that has been very positive. And in fact, we've had very good discussions at many different regional levels.
REPORTER: Are you meeting with your Chinese counterpart here?
SIMON CREAN: Yes.
REPORTER: What will you discuss?
SIMON CREAN: Well, I'll save that until we've had the discussions.
REPORTER: In the FTA, which sectors are the sticking points: agriculture and services?
SIMON CREAN: Well, there are sensitivities in agriculture as you know in China, and we know that too. But, they are sensitivities which, in my view and I also believe in Chen Deming's (Minister of Commerce, China) view, can be addressed. But, they do require some time for internal consideration and progression.
Services, of course, we want progress to be made. And, we also want progress in the light of the circumstances surrounding the issue of Chinese investment in Australia, to get a much clearer understanding of the investment framework between our two countries. So there are a number of areas that we need to finalise around. I think all of them are capable of being addressed and all of them are important to address. What we need though is the continued determination and the political engagement and the political will to conclude.
That parallel track that I talked about in my address (at the AustCham Business Awards 2009 event held immediately prior to the doorstop) is as pertinent to our bilateral relationship and our economic and trade negotiation as it is to the multilateral round in Geneva. What you have got to have is the technical solution, but you must have the political will. They both drive each other.
REPORTER: Will you be meeting Chen Deming at the sidelines of APEC?
SIMON CREAN: I will be meeting Chen Deming a number of times at APEC.
REPORTER: Will you be bringing up the issue of Mr Hu's detention?
SIMON CREAN: I will have lots of discussions with Chen Deming over the course of the next few days, because we have a ministerial retreat and we have bilateral exchanges and so I will be raising a number of issues. But, as I say I am not going to conduct my negotiations or talks with him in public.
REPORTER: What is Mr Hu's condition according to the consular visits? How is he holding up?
SIMON CREAN: He's in very good health and he says he's in good health and he appears in good health according to our Consul-General. And he, for all intents and purposes, is being treated well.
REPORTER: What was China's response when you asked them for legal representations … (inaudible)?
SIMON CREAN: I haven't had those discussions directly because I was not in Beijing when I was there last week. I conveyed a message on behalf of the Australian Government and these are matters being pursued through the Foreign Minister, through our embassy and will continue to be pursued.
REPORTER: Will this have any impact on the free trade negotiations with China?
SIMON CREAN: No, I don't believe this will have any impact on the progress of the FTA. The progress of the FTA, as I've explained before, hasn't been as great as I would have liked. But I think it's important for the Chinese Government to understand better the concerns that we have about the circumstances surrounding, not just Mr Hu's detention, but the lack of detail. This is important as a signal to all people seeking to do business in China. If they want to develop better economic relationships and the greater openness and the greater engagement, then it is important that people have a better understanding as to how their system works.
REPORTER: What details do you have of Mr Hu's charges?
SIMON CREAN: Well, there are no charges that have been laid, so no one is sure of them. There can be a lot of speculation about these things, but I don't think it helps in the circumstances to respond to speculation. There are lots of different theories, but these can be better informed and you can write more accurately if we can get better details.
REPORTER: Last year, Australia's trade with China was worth 68 billion Australian Dollars. Do you expect trade to exceed that number this year? What is the outlook?
SIMON CREAN: I expect that our trade and trading partnership with China will be largest of all our trading relationships. China will be the largest growing economy this year, it will be the largest growing economy next year, and it will be the largest growing economy the year after. And, it is already our second-largest trading partner. So I expect that the trade will continue to grow between our countries as the investment flows will continue to grow.
But it is far better if we're to understand that and encourage a conducive framework to its development, that we conclude the FTA. That's a logical conclusion to come to and we would want to conclude it as soon as we could, but it takes 'two to tango' and we await the response of the Chinese. I'm a patient person and as I say I don't have to simply wait around for the FTA to conclude, we can go and have other engagement with China and we can also make the most vigorous representations possible and necessary in relation to Mr Hu. We're doing all of that.
REPORTER: Minister, can we please have an update on Australia's trade talks with India and also any follow up of the Cairns Group meeting held recently?
SIMON CREAN: We've had a good follow-up on the Cairns group meeting because we had a meeting of trade ministers on the sidelines of the OECD some two weeks after that, and that involved more ministers than were present at the Cairns group meeting in Bali. They too gave their support to the conclusion of the DOHA round. We hope that that momentum can be strengthened even more at this meeting of trade ministers.
India has proposed a hosting of a mini-ministerial to try to advance the talks. We welcome that and that will take place in September ahead of the Pittsburgh G20 Summit. So I think that the momentum that was begun in Bali has been built upon in an encouraging way, but there's still work to do.
As for the relationship with India, the Indian Government has had a significant endorsement of its mandate. There has been a change in ministerial positions. We have had excellent engagement with the new commerce minister (Mr Anand Sharma, Union Minister of Commerce and Industry, India), but so far, that engagement has been predominantly around the multilateral round.
When we have the time, we will talk with him about how we can take the bilateral relationship forward. But, I think it too is an important relationship. It is an under-done relationship between our two countries. It's one that we as a government want to strengthen, and again we will be seeking discussions with the Indian Government as to how that might be best progressed.
Thank you.
[ENDS]
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