Transcript E&OE
26 November, 2009
Doorstop Interview - Parliament House
Subjects: Geneva visit, Doha, Austrade expansion in India, Nigel Brennan
SIMON CREAN: Thanks for coming, two things. Firstly, I'm leaving tonight for Geneva, to the seventh Ministerial Conference. This is a requirement under the WTO organisations to hold these conferences. Whilst not specifically designed for purposes of concluding the Doha round, clearly there will be important opportunity at the meeting to advance progress, to try and meet the deadline in terms of 2010 next year.
Important flexibility has been built into the system, the encouragement to the Americans and other countries to engage in bilateral discussions is an important flexibility. Those talks are proceeding, as well as the preparedness to bring services forward in the negotiations. I think that if we are more creative we can find ways in which we can use the services negotiations to help bring about a conclusion.
But it will also be an important opportunity at the meeting to look forward, in terms of the agenda for the WTO, going forward. Clearly, there's a connection there with the climate change issues, trade and environmental goods and services is one dimension. So there's lots to talk about and I'm looking forward to the discussions, both in the group sense, as well as the informal discussions.
Second announcement today is another important step in our relationship, building a relationship with India. A significant expansion of Austrade's network in India. This follows the Prime Minister's visit and important expansion of our diplomatic posts. But the expansion of the Austrade network will now mean that Australia has the largest foreign presence, in terms of trade promotion, of any country in India.
It's another demonstration of the importance we place on the relationship. It's something that the Prime Minister, myself, the Foreign Minister, have said is a relationship that's underdone. We want to build it.
Clearly India, it's been our fastest growing goods and services market over the last year or so, but it's off a low base. Clearly there is potential. It's a very diversified, sophisticated economy. A big services sector and so there are real opportunities. And we look forward as, with this announcement, to continuing to build two-way trade and investment between our two countries.
QUESTION: Would you say that ASEAN - the cultural opportunities in India, is that one of the biggest areas of growth do you think?
SIMON CREAN: Well certainly India has a big agenda for food security and I think that we can be in the space of assisting them meet them challenge. Obviously negotiations with India, as with any other country in the region - whether it's a developing nation or a developed nation, Japan is a good case in point - agriculture continues to be a sensitive area for negotiations, in progress on the free trade agreement.
We're hoping that in the context of the challenge of food security, that we don't just look to the agricultural opportunities in commodities. Clearly there is big opportunity in the services space that is agriculture. Increased productivity, better land management, better water usage, more sustainable agriculture, assisting them to address the food security challenge, not just by taking the product, but by expanding their capacity to improve the productive base of the product.
So I think that this is an important time, coming out of the global financial crisis, as these countries are clearly growing faster than the rest of the world. The challenge of food security becomes bigger and we've got to look at more creative ways, not just the traditional ways, of overcoming these problems.
QUESTION: How big a part of it will milk be? I heard that milk is one of the big things they're looking for?
SIMON CREAN: Yeah, it's interesting that the dairy industry is one of those in big demand, not just in India, but in Indonesia, China of course, out of the melamine scare. And, again, I think, here's the opportunity not just to look at trying to get product into the market, but get investment into the market. Take the dairy industry. What is Australia's competitive advantage? It's the fact that it can produce clean, quality, nutritional and safe product. This will be in big demand and we've got to look at creative ways, not just in terms of the supply of the commodity, but how we open up opportunities for investment as well.
QUESTION: But will they be prepared to pay for it, because we see clean, green perfect milk produced in Australia that a lot of companies are paying too little for? Will those Indian consumers be prepared to pay for their milk?
SIMON CREAN: I think as the countries' economies develop, and in all of them there is an increasing middle-class, and I think we've got to look at the segmented markets when we deal with this as well, to try and see the opportunities. Clearly as people's incomes rise, the demand also goes in the direction of demanding the nutrition and the quality. So yes, I think that there are opportunities here. It's not an easy way forward, but it is, as I say, a creative way forward and what we want to do in our discussions, as well as the Austrade network that's going in on the ground, is to demonstrate the ability to meet their needs in other ways.
QUESTION: Minister, do you think there will be pressure within the WTO from developing countries, to impose some sort of carbon tax on developing nations that don't sign up to an international agreement on emissions trading?
SIMON CREAN: From developing countries?
QUESTION: To impose a tax on those imports from developing countries that don't sign up to an ETS.
SIMON CREAN: Oh, there is some pressure, in certain quarters, for that. Developing countries have sent a very strong message countering such proposals. This is where we say the argument about ensuring that whatever comes out of Copenhagen is consistent with WTO standards or WTO obligations. I think there's a long way to go in this regard, but clearly getting a framework in which all countries are making a commitment to reduced carbon emissions is the framework that we're aiming for. The mechanisms by which you do it, you've got to ensure are WTO consistent and we would be concerned if measures such as carbon taxes didn't become de facto new trade barriers. It's been hard enough getting the current ones broken down, to be erecting a new set in the name of environment protection.
QUESTION: But there is an argument from say, out of Europe, that they - that the WTO act - WTO would allow such measures.
SIMON CREAN: Well I think that it is possible to construct mechanisms that are WTO-consistent but, of course, if that's the path down which we go it's important to involve the WTO in the exercise. But from what I've seen coming out of Europe, with I think the exception of France that have been promoting the concept of the carbon tax, most other countries are going in the direction of the cap and trade system and seeking to get global commitment to reductions.
QUESTION: Minister, what role has the Australian Government played in securing the release of Nigel Brennan?
SIMON CREAN: Yeah, well, you probably would have seen the family of Nigel Brennan this morning, as I did. This has been a very distressing time for them. All I can say is that our Foreign Minister is monitoring this situation and we're not in any position, at this stage, to confirm the circumstances.
QUESTION: Does the Government have any objection to the payment of ransom?
SIMON CREAN: I'm not saying - I'm not in a position to make any further comment at this stage. It's a delicate position and it's not my intention to make any more comment.
QUESTION: Is that because he's still not actually out?
SIMON CREAN: I'm not making any more comment.
QUESTION: [Inaudible question]
SIMON CREAN: Well I think Australians have got to take travel warnings, in relation to every country, with the seriousness with which they're delivered. The Government consistently makes that point.
QUESTION: Is there relief amongst the Government that he's been released?
SIMON CREAN: I'm sorry I'm not in a position to make any further comment.
QUESTION: Just back to the WTO, how long do you think it will take for an agreement to be reached, because other deadlines have come and gone. You've set a 2010 one, but there's still a long way from seeing that achieved. Do you think it will die next year, or?
SIMON CREAN: Well, when you say the target's been set, it has been set and it's been set by world leaders through the G20 and reinforced in APEC et cetera. The fact that world leaders have not only set the target but have said that they're prepared to become involved to break the deadlock is significant.
What we have to do is to try and narrow the differences such that if there is a requirement for world leaders to get involved, they're dealing with a narrower set of issues. That's what the purpose of ongoing discussions, including the ones next week, are designed to do.
In the end it's the political will. I think political will is significant, but there's still some way to go. But if that political will is serious, I believe we can meet the deadline next year.
QUESTION: You don't think it's a dead duck?
SIMON CREAN: No, it's never a dead duck. And, in fact, it would be completely counterproductive for anyone, not just to suggest it, but to believe. I don't pretend it's easy and I know how hard it is, because I've been in the middle of it now for two years, but it is do-able and it's in everyone's interest that it is done. Not dead, but done.
ENDS
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