15 August 2009
Doorstop Interview, Bangkok, Thailand
Subjects: ASEAN-Australia-New Zealand Free Trade Agreement, Stern Hu
Minister: It has been a very fruitful, productive meeting we have had today. We have had two very important discussions. The first was with the ASEAN group of countries and Australia and New Zealand to talk about progress associated with our Free Trade Agreement, which was signed here in Thailand in February, but which a lot of technical work has had to be undertaken to get it to the point of coming into affect on the first of January next year. We have renewed political will to redouble efforts to ensure it will come into force by the first of January next year. This will be a significant achievement given the global financial crisis, particularly now we are starting to see some important signs of recovery, fragile as that is in terms of global economic circumstances. But also to send an important signal to the world that even in these difficult times, we can negotiate, implement and translate into effect a comprehensive, plurilateral FTA that recognises different stages of economic development and isn't just about opening markets, but is also about capacity building and implementing aid for trade agendas.
The ability to take that forward is important. The other interesting realisation from that is now that we have got this framework in place, we also need to find a mechanism for reactivating the business-to -business dialogue and its connection with government. The FTA represents a government-to-government framework and we are asking our officials to come back with proposals as to how there can be much better engagement with the business community to fully realise the potential of this FTA in the region.
The second important discussion took place over lunch, where together with ASEAN were the representatives of all of the "plus six" dialogue partners. All ministers were present, except for India. I understand Mr Sharma had to return to India for the Indian national day, but he was represented at a high level. Key ministers were there around the table and it has been agreed to progress both the Closer Economic Partnership in East Asia and the East Asia Free Trade Agreement, in a way that these both converge in the future.
We now have the framework in which we have a number of FTAs, all coming off the core of ASEAN. The challenge now is how we take those "plus one" FTAs and integrate it more effectively for the benefit of the region. So agreement to have a track one engagement with senior officials looking at how we can achieve this convergence is a significant step forward. As well as the fact that all countries have agreed to identify key areas of further work progress to achieve this convergence. So overall, it has been a very satisfactory meeting.
The final point I would make is that I had very good bilateral discussions yesterday with India. Given the significance of the meeting India is hosting next month, I am encouraged that we may out of that meeting be able to build increasing momentum for a conclusion of the Doha Round of trade negotiations and to report progress in the lead up to the Pittsburgh G20 summit. So it has been a busy and productive couple of days. It does reflect the great desire within this region for commitment to greater economic integration, but also an understanding that we can work together and that we want to work together. We've now got a framework to do it, and a busy work schedule going forward to help us realise the full potential.
Journalist: How close do you think the region is to European Union (EU) style trade zone extending from ASEAN to the Plus Six?
Minister: I wouldn't compare it with the EU style. I think we have to find the Asian model and it has to understand the core importance of ASEAN. That has been fundamental to the way in which we have advanced the ASEAN-Australia-New Zealand Free Trade Agreement. But it is the most comprehensive of all the FTAs ASEAN has entered. So what we are hopeful of is to be able to demonstrate the comprehensiveness and opportunity in terms of meeting the challenges together that filters through in terms of the broader opportunity as far as the Plus Sixes are concerned. Time will tell. But now that there have been FTAs signed with each of the "plus sixes", the logical next step is to try and get greater integration. And the commitment that we have made today is not only to bring AANZFTA into force on the first of January, but to try and find how we can get this convergence. How we can achieve an architecture in terms of economic integration that is reflective of ASEAN plus the six partners. That's the challenge that is exciting, but that is the commitment that all of us have made and that has got to be seen as a positive step forward.
Journalist: How important has the global recession been "the wolf at the door", has that really helped push things along in terms of these talks?
Minister: I think it is very interesting that when we negotiated the conclusion of this agreement last August in Singapore as distinct from the signing, the beginnings of this global financial crisis had just started to take on. The dimension of it, at that point, was not quite known but there was a real worry about it. But it was also a month after the Doha talks had collapsed. That is the context in which you have got to put the significance and commitment of the countries associated with this exercise. They could have easily said it was too hard. We didn't. To the contrary, we said it is more important that we send a signal that these complicated agreements can be negotiated, and how important a signal was it? When we announced it and when we signed it in February of this year, it sent a huge signal to the world that there was a confidence, there was an ability, there was a determination, to cut through the blockages to really build a stronger, more integrated economic region. So far as the global financial crisis is concerned, I think in its own way it has helped breath new momentum back into the Doha round, because world leaders have said on many occasions, trade is an economic stimulus and let's not revert to protectionism. The two dynamics driving Doha is that trade is a stimulus and it is also the best insurance against the spread of protectionism. Our task as trade ministers is to show that it can be done. So that when leaders say they are sick of carrying these resolutions urging you to do it - why don't you just do it? Well, we've shown here that we can do it and the last few months have shown a new determination to try and conclude the Doha Round.
Journalist: Can Asia be seen as one of the key pulleys to get the globe out of this recession? Many countries are looking to Asia. Do these FTAs help that move along?
Minister: I think what they are looking to Asia for is that it is still a huge part of the world that is growing. There are parts of it that are in recession. But compared to the rest of the world, Asia has significant growth potential, even in the current circumstances. It is not just China. Look at India. Look at Vietnam. Look at Indonesia. These are not insignificant countries, let alone the number of people concerned. That's why people are looking at Asia. The task for Trade Ministers is to say how do we capitalise on it? How do we add value? How do we increase the sum of the parts? Not just a realisation that there is potential here but how do we maximise that potential. So the trade framework and the trade negotiations are fundamental to helping us realise more fully that potential.
Journalist: May I ask something about the relationship between Australia and China because last month there was an Australian arrested in China from Rio Tinto. We would like your comment on this issue and how to solve it.
Minister: I've commented a lot about this and the position is still the same, although in recent days, charges have been laid. Clearly these are matters that have to be pursued in the context of the Chinese legal system. We accept that. But we are also saying that we would like not only charges to be laid but also consular access, and all of those sorts of things. We will continue to make those representations on behalf of the Australian people and in the interests of - because that is our prime concern - the welfare of Mr Stern Hu. As for its impact on the broader economic relationship, it is not having any impact on the broader economic relationship. But it is an issue that we will continue to pursue with them and we will.
Journalist: Were there any talks here?
Minister: We have had discussions. But we have discussions all the time. We have bilateral meetings with our counterparts. Obviously we have said that these are issues that we want to pursue, not through the media, although we can't avoid having to answer questions through the media and I can report the attempts that we are making. But in terms of representations, they are being made directly to the Chinese Government. They have been made by many ministers and our posts, and we will continue to do so.
ENDS
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