Speaker: We acknowledge the traditional owners of the land in which we meet today, the Wurundjeri Woi Wurrung people of the Kulin Nation. We will first shortly hear from the chair of the CPTPP for 2025, Australian Minister for Trade and Tourism, Senator, the Honourable Don Farrell. Following the Chair's remarks we will have some questions from the floor. Thank you to the media who have nominated to ask questions and we will bring you a microphone when it is your turn. Thank you, Minister Farrell.
Minister for Trade and Tourism, Don Farrell: Thank you very much, and it's a wonderful privilege to be the Chair of this year's CPTPP and to be joined by all of my ministerial colleagues and the representatives at this very historic meeting. Together, this week, we have delivered a productive and forward-looking commission meeting. The CPTPP represents 12 economies and they're all here, 590 million people and nearly 15 per cent of global GDP. In an uncertain global trading environment the CPTPP continues to provide stability, predictability and a high standard of rules that benefit businesses and communities across our region. The outcome of this meeting position, the CPTPP economies to deliver even greater benefits for our communities and the people in the years ahead. We discussed how to ensure that the CPTPP remains a gold standard agreement that is modern, effective and responsive to global challenges and it was held under the theme, delivering sustainable trade and resilient growth.
This includes reducing regulatory barriers for businesses, streamlining customs processes, enhancing digital trade rules and improving service trade frame works, all of which help businesses operate more efficiently across borders and better respond to the change that global trade environment. We've concluded the first general review to ensure that the CPTPP remains modern, effective and responsive to global trade dynamics. We endorsed negotiations that will upgrade the CPTPP in key areas such as electronic commerce, trade and services, customs administration, and trade and women's economic empowerment. Negotiations will begin next year to update the agreement and I'm pleased to announce that we have made substantial progress on Costa Rica's accession process, and hope to finalise that by the end of the year.
We've identified four additional aspirants who are in line with the Auckland principles. They are Uruguay, the United Arab Emirates, the Philippines, and Indonesia. And we have decided to commence an accession process with Uruguay that will commence with others in 2026 if it's appropriate. It's not a surprise that there is strong interest in joining this high standard agreement and we've a collective ambition to grow the CPTPP membership while maintaining its high standards and it was a great privilege yesterday to co-host the inaugural CPTPP EU Trade and Investment Dialogue, the first one we've ever had with the EU commissioner for trade and economic security, Maroš Šefčovič. And the inaugural CPTPP ASEAN trade and investment dialogue, again the first one of those with Malaysia's Deputy Minister of Investment, Trade and Industry, Liew Chin Tong. The discussion between members was candid, constructive and ambitious, sometimes very candid, and reflecting the high standards that define our collective approaches to trade, multilateralism and the rules-based trade order. It was a pleasure to welcome Commissioner Šefčovič to further our own discussions, Australia's discussions towards quickly concluding a free trade agreement.
Australia remains committed to concluding a trade deal with the European Union that is in in our national interest including for Australian agriculture. We will continue to work to bridge the remaining gaps to conclude a balanced, comprehensive and mutually beneficial trade deal. Thank you.
Speaker: Minister, [indistinct] from the [indistinct].
Speaker: Good afternoon, thank you so much, my question goes to Minister Farrell. So, when do you anticipate negotiations on potential accession of China and Taiwan to begin and have there been any discussions so far about establishing a working group to discuss this matter? Thank you.
Minister Farrell: Thank you for that question. As has become very apparent in recent years there is a significant list of countries that would like to join this organisation. When a country imposes tariffs on you they're sending you a message, we want to buy less of your products. This group is all about ensuring that we reduce tariffs and we reduce trade barriers, and we believe in free and fair trade. We've considered the progress to accession. Last year, of course, we included the United Kingdom in our group and they've been wonderful participants in our group. By the end of the year, we hope to have finalised the accession of Costa Rica and that will add to our numbers. And then from that point onwards we have a program starting with Uruguay to deal with accession processes.
Countries can continue to express an interest and I'm sure China will do that. But we have got a plan for the immediate future as to how we will deal with the accession processes.
Speaker: Ben Westcott from Bloomberg.
Speaker: Thanks very much. Just two questions, one a quick follow up. So does that mean that you don't foresee any progress on the China or Taiwan membership in the short-term and just on the EU Australia trade deal you mentioned before, just today the commissioner has said had they expect a deal to be ready by spring. Is that your assessment as well?
Minister Farrell: Just answering that second question first. I'm always reluctant to predict just when trade agreements will be completed. In the previous Parliament, I had two attempts at getting a free trade agreement and despite expectations at the time that it was going to be possible we fell at the last hurdle. We had a really good meeting with Commissioner Šefčovič yesterday. This was the second time that he had come to the region in a month which I took as a very positive sign that he is serious about progressing the EU-Australia Free Trade Agreement. I mentioned to my colleagues yesterday that that quote from Margaret Thatcher when she met Mr Gorbachev and she reported on the meeting to Ronald Reagan. She said, "this is a man we can do business with". I believe that is the situation with Mr Šefčovič. He's serious about engaging with Australia. Is his time frame too ambitious? Well, we'll see. We are committed to getting an agreement and working as fast as we can to get there, it's going to be an important step forward. Europe, 450 million people, trillions and trillions of dollars of GDP it's the one agreement that has escaped us. I think more importantly, Mr Šefčovič is not only saying he wants to deal with Australia, but he also wants to deal with, you know, our group, the CPTPP and it was their initiative along with New Zealand and the United Kingdom to try and get that discussion going.
So, I think, you know, while we're in an age of uncertainty right now in terms of trade, while you can be concerned that particular countries aren't going the track of free and fair trade, this group is and we've got willing partners. And I think the message that's come out of this week is that Australia and our friends here today, we do believe in free and fair trade. We're prepared to put our money where our mouth is and to develop more and more free trade agreements. As to future accessions by China and other countries, we'll continue those discussions.
Speaker: Shannon Schubert from the ABC.
Shannon Schubert: Just a follow up to those questions. So, was there any discussion on the bid from China or Taiwan and any prospect of those progressing?
Minister Farrell: So, we discussed a range of issues in terms of where we thought we had the best prospects of proceeding with accessions and we've come up with the program that I talked about earlier. So, what does that involve? Well, we're hopeful and confident, especially based on the work that Peru has done with the Costa Ricans that by the end of the year we will have an additional member so we'll go from 12 members to 13 with the addition of Costa Rica, and then we're going to work through that next group of countries that I mentioned.
Speaker: Last question from Sam Irvine, Australian Financial Review.
Sam Irvine: Mr Farrell, the American Sheep Industry Association has called for US Trade Rep Jamieson Greer to investigate whether soaring US land imports predominantly from Australia are harming domestic industry and it may recommend import quotas or tariffs. What's your response to this?
Minister Farrell: Well, we've made our position very clear in terms of tariffs. At every meeting that I have with the US Trade Ambassador Greer, we put the argument as to why tariffs are in fact counterproductive, they're an act of self-harm. You might have seen two weeks ago I think it's today, two weeks ago, that the United States reversed a decision to apply a 10 per cent tariff to Australian beef. Why was that? Well, because the effect of that tariff was simply pushing up the price of beef in the United States. So, it was a counterproductive development. In all of my discussions past and into future we'll be presenting the argument to the United States that tariffs are the wrong way to go. It's the removal of tariffs that's going to provide the prosperity and the lower cost of living to your own consumers. So, the American sheep, meat industry, can say what they like but the facts are clear, the facts are clear, you start imposing tariffs or quotas on sheep meat into the United States, you'll simply push up prices. And that's not the way to reduce your cost of living. We have terrific sheep meat in Australia. I'd even say, well I won't say it in front of the New Zealanders, in case they get offended. But we have a wonderful product. The reason why we sell so much of our product into the United States is that they can't in fact supply it themselves, but secondly, it's a high-quality product at a good price. That's why the American consumer buys our sheep meat, that's why they'll continue to buy the sheep meat and that's why we'll continue to argue that tariffs are not appropriate.
Speaker: Sorry, this is really the final question.
Minister McClay: Just if I may on this one, I was going to leave it alone, but now I feel I have to intervene. Well, I think Australia is high quality. It has to run faster to get to the ships. Both New Zealanders and Australia sell sheep meat in to the US market, what we've seen since the two countries entered that market is consumption of lamb increase quite significantly and so as with a lot of countries, when you'd have a deficit you don't produce enough of your own and obviously you look to other countries to import it. And so largely if you look at the sheep meat prices in the US they have been holding firm, they've been going up and so I think you're seeing that market grow, consumers are now interested in buying high quality lamb from New Zealand, from Australia and from US producers, and it is competing against other types of red meat in that market and so I think it's a very complementary relationship that we have. And I agree with Minister Farrell, a tariff in this case if you don't produce enough in themselves will push prices up but the consumers are the ones that choose this high-quality product won't have it available to them.
Speaker: Thank you, and Isabel McMillan from The Age.
Isabel McMillan: Thank you so much. Why hasn't Australia committed to joining the EU and UK in pledging to stop Russian oil imports through third countries and is that something we'll look at doing?
Minister Farrell: Well, we of course do have restrictions on the supply of Russian oil and we've made very clear decisions about that issue. Australia, outside of NATO is the largest supporter, most consistent supporter of the Ukraine and we have made our position very, very clear that the actions of President Putin in the Ukraine are illegal and immoral. We will continue to do whatever is necessary to ensure that we support the Ukraine and support the fight for democracy that the Ukraine is currently engaged in. Ukraine's fight for democracy is our fight for democracy, and this country will continue to support the people of Ukraine.
Speaker: Thank you very much ministers for your time. Thank you, media. We'll now complete this press conference.