Former Minister for Trade
Australian Commonwealth Coat of Arms

13 August 2009

Press Conference, Parliament House, Canberra

Subjects: ASEAN, India, China

SIMON CREAN: I'm going to Bangkok tonight for a meeting with ASEAN trade ministers and trade ministers from six countries in addition to ASEAN. This is a meeting that will end up having three important functions. One is to ensure that we can conclude all of the detail associated with the technical and process side of the ASEAN Australian New Zealand Free Trade Agreement, so that it can come into force on January 1, 2010.

This is a significant Free Trade Agreement, because it involves a market opportunity for Australia of some 600 million people, in a region which is the fastest growing still in the world and in which we have been able to negotiate a comprehensive Free Trade Agreement with significant market liberalisation, not just in product markets, but services markets and with progressive liberalisation, depending on the state of development of each country.

The second purpose of the meeting is to ensure that, building on the success of that Free Trade Agreement, the next logical step is to develop the regional architecture in a way that builds on that FTA and we are seeking to get progress on the EAS, ASEAN Plus Six, as a broader economic architecture for the region.

The third opportunity that will present itself at the meeting is to have an important bilateral with my Indian counterpart, not only to talk about the bilateral relationship with India, but significantly to talk about how we can use the ministerial meeting that he is chairing, in Delhi early next month, how we can use that as momentum, moving into the Pittsburgh Summit, that the US is hosting.

QUESTION: Are you confident you'll get the extension of the regional architecture in the way you want, including India, China and so forth?

SIMON CREAN: It's an interesting debate, because clearly there are two structures. One is what's referred to as ASEAN Plus Three, essentially the ASEAN countries, plus China, Korea and Japan, or ASEAN Plus Six, and the three additional in the six are not just Australia and New Zealand, but importantly, India.

The significance about the six is that ASEAN has signed free trade agreements with each of the six, and I think the challenge therefore is what's the best sort of architecture going forward? Now there have been studies done on this, and clearly there is greater benefit for the region, in the ASEAN Plus Six. But we have to get a consensus about that, we have to argue for it, and we need to get a commitment to continuing to progress the options for progressing the EAS - the EAS, the Plus Six. I'm confident that there is a growing realisation of the importance of embracing that concept, and that's why it's important to be there to continue to press the case.

QUESTION: There's a couple of bilateral issues, in India the issue of international students and with China the issue of Stern Hu and other things, do you expect that they'll be raised at all, or will you raise them?

SIMON CREAN: Yes, and certainly in the bilateral with Anand Sharma, not only will I raise it, I have raised it, and I think you've seen the key interest that we've taken in trying to address at the visit most recently by the Foreign Minister, and his meeting with the PM and the Foreign Minister.

It's also the case that we'll have the opportunity to discuss this issue in Delhi, when we go - not just me, but Julia Gillard's going, and so too is Wayne Swan - so there's an important engagement with India, prior to the PM's expected visit later this year.

This we've all said at various stages, is an underdone relationship, we want to build it so far as the students are concerned, it's not only the issue of the safety that is crucially important for parents and the kids who come here, but we have an important brand to protect - our third biggest export is education services - and the reason we can export it, is because of its quality. What we can't do is to debase that brand, so it is in our interests to ensure that the concerns about the accreditation, quite apart from the safety issue, concerns about accreditation are also addressed.

On the Hu Stern issue, you would have seen overnight the fact that Hu Stern has now been formally arrested. The charges themselves appear - from what we read - to be lesser than was originally talked about. And the charges have been laid within the time that was talked about previously.

We think that the pressure that we've been applying internally has had something of an impact. Clearly, we will continue to keep that pressure up and if my counterpart comes to Bangkok, as I expect he will, then I will have the opportunity again to raise this matter with him, as I did a couple of weeks ago.

QUESTION: Do you think it's having an impact on bilateral relations or relations, business to business.

SIMON CREAN: I don't think it's having an impact on the bilateral relationship. I think unless it's resolved expeditiously and satisfactorily, it could have implications in terms of the way in which businesses see the way they do business with China.

QUESTION: Is it affecting trade at all?

SIMON CREAN: No, it's not affecting trade.

QUESTION: Business as usual?

SIMON CREAN: And if you look at the fact that it's four employees of Rio that have been arrested, the trade in iron ore including with Rio, not only hasn't been impacted adversely, but volumes have increased over the recent 12 months.

But that's a reflection of the fact of China's strong growth path, it's strong growth trajectory and the commitment that has been made to stimulate the economy through fiscal stimulus and infrastructure spend as well as the question of the banks freeing up lending.

I visited, as you know, China on six occasions in the last 15 months and the pace of growth is phenomenal. It's the place for Australia to be. They need Australia as much as we need them and that's why the Hu Stern thing is an unfortunate distraction from the strength of that relationship, but it is a distraction. And it's an issue that we continue to urge them to deal with. So far as Mr Stern himself is concerned, he's had a second visit from our Consul General there. He appears to be, from that visit - and his own statements - to be in good health. And his well being is good.

That's obviously of concern.

But now that the charges have been laid, of course, what's important is for him to have access to legal representation and we continue to press the case for the access by his family.

QUESTION: While you're in Bangkok, will you have a chance to speak to ASEAN ministers about Burma and any further action on the issue of sanctions and Aung San Suu Kyi, particularly by ASEAN?

SIMON CREAN: No doubt the issue will be a matter of discussion up there. I don't know where that will go and we've made very strong statements of - through the Foreign Minister - about the continued detention of Aung San Suu Kyi...and announcements were made yesterday by the Government as to certain steps that we're taking to try and continue to deal with that situation.

ASEAN, it's another question. ASEAN has not chosen to suspend Burma from their engagement. Precisely what they discuss I will be interested to hear about when I talk to my counterparts, but certainly, we'll be raising the issue with them as well.

ENDS

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