Transcript
18 November, 2009
Interview - ABC2 News Breakfast with Joe O'Brien
Subject: China FTA
JOE O’BRIEN: Talks on the free trade agreement between China and Australia are set to resume in February. The negotiations had been stalled for more than a year. The Trade Minister, Simon Crean joins us now from Canberra, to explain the turnaround in the relationship. Simon Crean, good morning.
SIMON CREAN: Good morning Joe.
JOE O’BRIEN: Now what's brought around this breakthrough?
SIMON CREAN: I think the realisation by both economies that this is a deal that should be struck, a realisation that we've got to get over the sensitive difficulties, and importantly the role the Prime Minister's played in terms of these discussions with Chinese Premier Wen Jiabao in Thailand a month or so ago, and the very important visit by Deputy Vice Premier or the Vice Premier, Li Keqiang to Australia a couple of weeks ago. I had an excellent meeting as a result of those breakthroughs with my counterpart in Singapore last week. The commitment is to move to the next round because they, the Chinese are prepared to talk on the sensitive issues that they weren't prepared to talk seriously about before.
JOE O’BRIEN: Well what are the barriers you want the Chinese to drop in relation to agriculture?
SIMON CREAN: Well essentially it's the discussion of the sensitive issues of agriculture and services. We also need to discuss the issue of investment, that's important as a two-way flow between the two economies. But Joe, I think the bigger issue here is that China has now become again our largest trading partner. China has got huge inter-dependency on Australia. China needs Australia as much as we need China. It's in both of our interests to understand the fundamentals of that economic relationship, and to build a better framework. But the other dimension that I've been concentrating on is not just the free trade agreement, not just the framework, but actually getting out to the regions and doing - getting commercial arrangements going where it's in the interests of both the Chinese economy and the Australian economy to work together in....interesting areas such as urban development, automobiles, agricultural production, whole range of things.
JOE O’BRIEN: Can I just tie you down on the specifics though, what do you want the Chinese to drop in relation to agriculture?
SIMON CREAN: It's not a question of dropping, it's a question of improving market access in certain areas. They realise that, but they've got some sensitive areas themselves. But we have something of a benchmark, it's the New Zealand agreement, we say it can't be any less than that, that's got to be the starting point, but we're a more diversified economy than New Zealand. What we need to do is to go not just to the sensitivities in agriculture but understand the huge opportunity there is for our manufactures, smart manufactures and services. These are the opportunities for Australia, those things won't open up unless we're opening up the investment flows between the two countries, and I hope that the breakthrough that we've now got, now that we've got the commonsense, now that we've got the political will, that we can go forward and cement a truly important economic relationship in a new framework.
JOE O’BRIEN: And what are you offering the Chinese in return?
SIMON CREAN: Well I'm not going to negotiate that here Joe, these things are all about give and take. They clearly have interests in terms of energy security and access to - further access to our markets. It's in both of our interests for both us to be opening our markets, open markets are the source for economic growth. That's what creates jobs, that's what lifts national income, and so if what we can do is to get the mutual understanding that some of these issues as hard as they may be, are in the long term interests of both nations, that's the basis for moving forward.
JOE O’BRIEN: Just before we get to the sports report which I know that you're keen on discussing, Australia is no saint though when it comes to free trade. You go to these international meetings emphasise - talking about the importance of free trade but we're continuing with hundreds of million dollars worth of subsidies for the car industry and only last week when you were at the APEC meeting, regulatory protection for the printing industry was continued.
SIMON CREAN: Look I think the printing industry is another thing, let's come back another time and talk about that because I think there's over simplification in terms of that but the automotive industry, China wants to develop its capability in autos. They don't have what Australia has: ability in design, in engineering, in smart manufacturing, all of those things. There's a huge opportunity now with Australia with a small domestic market and China the largest in the world for great complementarity between those things. But China has got to house 400 million people Joe, in the next two decades. Huge opportunity for us in urban design, smart building, water management, retail logistics, all of the things that go with building a city. This is where opportunity for Australia goes far beyond the traditional perspective of our relationship. We're not just a commodity, a farm and a quarry. We have great diversity and what we want to do is to have the Chinese understand the strength of that diversity. The Shanghai Expo next year is going to be a huge opportunity for us to present that but to make a framework - get a new framework going forward and really forge the commercial relationships so that China understands where the complementarity between our two economies really can advantage both.
JOE O’BRIEN: Okay just finally Simon Crean, was the Crawford Report on the money? Should Australia not be aiming for a top four or five finish at the Olympics?
SIMON CREAN: No I think we've got to continue to aim for the top. You see I think this is too narrow a view of sport. Sport is a huge industry in Australia. We've got the best sporting stadiums in the world, why? Because we value our sport and we've got elite sports people. Sport is an industry. We should be exporting that industry.
JOE O’BRIEN: But are our kids the healthiest in the world?
SIMON CREAN: Well obviously you can do both and we've put lots of money into programs that are designed to improve the health and wellbeing of Australia but Australia's prowess in sport is a fundamental part of the Australian brand, Joe. If what we start doing is saying we're going to walk away, we're going to settle for second best, I think we're missing out on a great opportunity to reinforce the fact that whatever we do is quality, that we punch above our weight. The whole concept behind branding Australia is very much what performance and achievement in sport is also about.
JOE O’BRIEN: Okay Simon Crean thanks so much for talking to us this morning.
SIMON CREAN: Thanks Joe.
ENDS
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