Transcript - Press conference
24 October, 2009
Press Conference at the conclusion of the Pacific Islands Forum Trade Ministers’ Meeting
SIMON CREAN: Today's Forum Trade Ministers Meeting was a very successful one. Putting it in context, the Forum Island Leaders made a decision in Cairns when Australia hosted the Forum Island meeting in August of this year that we should commence what's known as PACER Plus. It's not a free trade agreement per se. It is fundamentally about opening markets but also building capacity within the region to take advantage of those more open markets. Fundamentally about the economic sustainability, the economic integration of the region.
So in that sense a very exciting opportunity. But it's complex. Different countries at different stages of development, different countries with different capacities to participate, different countries with a whole lot of challenges themselves in terms of infrastructure and skills formation, et cetera.
In any event the leaders determined the PACER Plus negotiations should commence and this is the first meeting since that decision of leaders. We were mandated to get together before November. We have done that. And what we've done today is to receive a report that will see the appointment of an Office of the Chief Trade Adviser and hopefully within a short space of time the formal appointment of the person to take up that task. The interview process has been concluded, a recommendation's made, the offer now needs to be made to that person. But the Office of the Chief Trade Adviser is part of that capacity building exercise. Assistance to the island nations to participate in the negotiations, advice to them and officers working to the Pacific Island countries.
So that's an important first step that was taken today. Also what we agreed on was the framework of the work program going forward. The commitment to begin the process, the long process of negotiation to identify a number of areas that would be the focus and the priority over the next 12 months. They're listed in the documentation that will be available.
I think the process going forward will not be easy and it won't be quick but there is a confidence and a preparedness to engage in this important task.
When one looks at the opportunities emerging within this region, the big developments in PNG, the gas developments, the gas pipeline; in the Solomon Islands, the Solomon Islands gold project; the big infrastructures taking place with Samoa, the diversification of their economy. They're hooked into a global automotive supply chain. They supply quality switching gear to Toyota for its international vehicles.
So we have critical mass and we have huge potential within the region. The challenge is to make it work more effectively, more efficiently but most importantly to secure the economic future for the countries within the region.
So I'm very happy with the outcome of the meeting. Office of the Chief Trade Adviser to be hopefully by the end of the year, the first of the technical discussions to commence in the first quarter of the year and ministers will get together again within the first half of next year to review the progress.
That's the purpose of today's discussions and I have, as I said, the Deputy Prime Minister from Samoa here with us. I have the Trade Minister from New Zealand, Tim Groser, the High Commissioner from PNG because parliament was sitting in PNG so Sam Abal couldn't come at the last minute, and of course the Secretary General of the Pacific Islands grouping, Neroni Slade.
So if there are any questions, happy to answer them.
QUESTION: Is there any hope that Fiji will become part of this group at some stage?
SIMON CREAN: Well we hold out great hope for that and clearly the participation of Fiji in this is totally in Fiji's hands. If they're prepared to accept the requirement that all Pacific Island leaders made of them to chart the path to the return to democracy, then they can come back in. Fiji by inaction on that front has excluded themselves.
We understand the importance of keeping Fiji informed about progress in these negotiations and we've also discussed at this meeting today how that will be discharged. But the question of Fiji's involvement which we would welcome is clearly in their hands.
QUESTION: On the issue of Samoa...
SIMON CREAN: Well I'm always delighted that he's here. He's a very good friend to Australia and to the Pacific and I think Samoa is a country as I say that has really understood the importance of engaging in trade liberalisation. They've sought membership of the WTO and they are very close to that process being formalised. And New Zealand and Australia have given important technical assistance to help them in that regard.
We expressed our sympathy for the nation and our condolences for the people lost in the terrible events of the recent tsunami but as Misa will be able to also attest, very good cooperation, not just from Australia and New Zealand but within the Pacific to try and address that recovery. His message is simple. Samoa is open again for business. There's a huge recovery, a rebuilding task in the devastated area but there are so many other aspects of the island and the nation that is waiting for people to come and I know that he's been one of the strong advocates of this Pacer Plus negotiation because he can see the benefit from greater liberalisation to the further diversification of his economy.
But perhaps Misa you might like to answer on your behalf.
MISA TELEFONI: I will [come up] in a minute....
QUESTION: Just one other question on the changing trade and economic agreement. Is the aim one that the countries in the region would cooperate but also then form a group that could deal and negotiate with China? How does it work in real terms I suppose and how does it benefit the working man in Samoa?
SIMON CREAN:There are two aspects to it. One is the realisation that by engaging in global trade you've got a better chance to grow your economy quicker and the reason for that is demonstrated by the simple statistic that world trade grows three times faster than world output. If you want to sustain your economic base it doesn't matter what stage of development you're in. You've got to engage in trade.
But there are already trade liberalisation issues in the Pacific. We've got trade agreements like SPARTACA which allows free trade access by goods from within the Pacific into Australia and New Zealand.
But that of itself has not been enough. Unless you're also building the capacity of these nations to undertake more efficient operations, to have the infrastructure in place, to be able to compete then simply opening the markets of itself is not enough.
So what we're seeking to do is to get an understanding as to what issues are common to the region that is going to facilitate greater economic activity. If you think about them a lot of them are in the services. How do we improve the air links? How do we improve telecommunications?
But in the case of agricultural produce how do we also build their capacity to understand what our quarantine requirements are so that they can meet them and their products are not knocked back on the wharf?
There's also the ability to look creatively at the movement of people within the region because the Papua New Guinea's pipeline is going to require 12,000 people to build it. Papua New Guinea itself knows that it can only expect to provide, they say, around about three and a half thousand of those. Where are the others going to come from? So there is a real opportunity if we're creative about it to not just say the people are available but develop the skills. Again another capacity building exercise.
Australia has invested heavily in the Australian training colleges, which accredit people to Australian accepted education standards and skill standards, vocational education standards. So they're internationally recognised skills. So at the same time as addressing the needs of a workforce and looking creatively within the region, we're also building the capacity.
So a lot of these issues for example, and they're identified in the priority list, are common. Then you will have each country with its own set of specific issues. It's up to them to identify what its priorities are, what its strategy is going forward and work with us to devise assistance support capacity building to help that take place too.
QUESTION: With the Chief Trade adviser...
SIMON CREAN: Right. I can't formally announce the person's name because whilst the recommendation has been made by the Pacific Island countries, that person still has to be contacted but the person, the office, will be based in Vanuatu when it's established.
QUESTION: [indistinct]
SIMON CREAN: As - it will report to and advise the Pacific Island countries, other than Australia and New Zealand. The Forum Secretariat, which Neroni Slade is the secretary general of, services all of the countries, the 14 nations, the Office of the Chief Trade Adviser is to - it is capacity, it is giving them an enhanced capacity to participate in the Pacer Plus negotiations.
QUESTION: And will be funded by Australia and New Zealand?
SIMON CREAN: It's funded significantly by Australia and New Zealand. It has the capacity to accept financial support by other donors.
* Please note that the Outcomes Document from the Special Forum Trade Minister Meeting is available on Mr Crean's website and that of the Department of Foreign Affairs and Trade.
ENDS
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