Adelaide, 22 September 2008

Address to Pacific Trade Fellowship Participants

Introduction

Thank you, Andrew [Andrew Stoler, Executive Director, Institute for International trade].  I’m delighted to have this opportunity to make a few remarks to Trade Fellowship participants.

Today marks the beginning of an impressive program to build negotiation capacity and support preparations for a new Pacific Area Closer Economic Relations or “PACER Plus” in Pacific Island countries. 

I congratulate Andrew and the Institute for International Trade on their work, with AusAID, to develop that program.  The Institute has a deserved reputation in the region and globally for its trade research activities and expertise in running training courses.

The comprehensive set of ten modules, to be delivered between now and 2010, will provide essential training across a range of trade negotiating issues and scenarios.

The Australian Government is committed to working with Pacific countries to bring greater development and stable, long-term economic growth to the region.

We firmly believe that a PACER Plus agreement will spark and support that crucial economic growth. 

And the program you have started today is an important example of our commitment to work towards that agreement with Pacific countries.

A new approach to the Pacific

This Government has said from the start that we will embark on a foreign policy shaped by, and reflecting, our democratic values, our respect for the rule of law both domestic and international, our tolerance and our deep-seated belief in others getting a fair go. 

In this spirit, we have embarked on ‘a new era of cooperation with the island nations of the Pacific’, as set out by the Prime Minister in his landmark Port Moresby Declaration in March this year.

It is my privilege, as Parliamentary Secretary for Pacific Island Affairs, to be closely involved in the framing and delivery of our new policy approach.

That approach is based on mutual respect, mutual responsibility and mutual commitment to building a better future for the Pacific.

As friends and neighbours, Australia, NZ and the Pacific countries face many of the same problems.  It makes sense that we work together to find common solutions.

In recent years, we have witnessed encouraging economic growth in some parts of the Pacific, including Papua New Guinea and Vanuatu.  But the record is uneven.

The smaller and more remote Pacific nations still face considerable obstacles to growth, and, as a region, the Pacific is falling behind other developing nations, including with respect to the Millennium Development Goals.   

Australia recognises that the twin threats of fuel and food price rises have adisproportionately adverse impact on the Pacific nations because of the dependency on fuel imports and relative geographic isolation of the countries.

And we are committed to working collaboratively with our Pacific neighbours to improve development and to reach shared economic and social aspirations.

One part of that commitment is our development assistance program in the Pacific.

Much of our assistance to the Pacific region (just under $1 billion for 2008-09) supports the drivers of growth – in promoting the skills, infrastructure and trade, regulatory and investment policies to support sustainable growth.

And we are establishing a series of Pacific Partnerships that will assist Pacific countries to strengthen the economic performance and governance frameworks they need to achieve these goals. 

Through the Partnerships, Australia will commit jointly to improvements across the spectrum of priority areas: public infrastructure, governance, economic growth, education, health and public sector and public institutions capacity building.

Development through trade

The Australian Government is convinced that we need to go beyond traditional modes of development assistance in the Pacific. 

That is why we have widened our discussion with our Pacific partners to involve trade and economic cooperation.

We believe that the more the Pacific nations are integrated with the wider global community, and the freer the flow of goods, services and investments within the Pacific, the better the prospect of genuine, stable and long-term economic growth in Pacific communities. 

Development assistance can be no substitute for long-term economic development through trade.

That is one of the reasons Australia supports strongly the WTO Doha Round.  Concluding the round will deliver sizeable gains to developing countries around the world. 

The conclusion of each previous WTO and GATT Round has provided encouragement to world economic growth and in recent years this has been particularly true in our own Asia-Pacific region.

But over the past five years, the rate of world trade growth has slowed as efforts to conclude the Doha Round of WTO trade negotiations have faltered.

If concluded, the WTO Doha Round would see the amount of import tariffs paid today reduced by half, with the biggest cuts being required of developed countries. 

As part of this, developed countries would contribute two-thirds of the cut, with developing countries receiving two-thirds of the benefit, in terms of more access to developed country markets. 

PACER Plus

While maintaining strong support for the WTO Doha Round Australia is also using free trade agreements to build on what we can achieve in multilateral negotiations—that is, “WTO plus” agreements.  

Our commitment to the multilateral trading system is complemented by our work to sign free trade agreements that enhance that system.

And just as the Doha Round would stimulate economic development in developing countries, a comprehensive trade pact in the Pacific will enable countries in our region to share in the benefits of increased trade and economic growth.   

An independent report on PACER Plus commissioned by AusAID concluded that the elimination of trade barriers and improved efficiencies under the agreement could increase regional trade volumes by up to 30 per cent.

Australia is determined over time to establish genuine regional economic integration in the Pacific of the type already enjoyed bilaterally by Australia and New Zealand.  We are also determined that PACER Plus will have a strong development focus. 

A key objective in concluding the agreement will be to build economic self-sufficiency in the Pacific through trade. 

Our development assistance will be tailored towards improving the infrastructure and capacity necessary to take advantage of trade opportunities. 

Enhanced liberalisation of trade throws up some challenges but the benefits will far outweigh the costs.

For example, Pacific island countries have already reaped the benefits of aviation deregulation for tourism; and deregulation of telecommunications is bringing down the costs of mobile telephony across the region.

In Niue last month, Pacific Island Forum Leaders discussed the vision of a “trade-plus” agreement and Australia’s proposed package of trade development assistance. 

I was very pleased to see that Leaders give their backing to this vision by agreeing to formulate a detailed road map on PACER Plus, with a view to commencing negotiations next year.

I am pleased to see that this process will be kicked off during the next round of informal discussions in Tonga in mid-November.

We also know that it is important to ensure that, when it comes to formal negotiations, Pacific island countries are provided the means to properly represent their individual national interests.

Each nation’s individual position should be informed by national studies which identify the impacts, benefits and opportunities in a PACER Plus deal to its specific situation.

We have already pledged to fund independent national studies for each partner country in 2008-09 and will continue to do so throughout the negotiations.

Conclusion

Ladies and gentlemen, Australia is determined bring a new, revitalised approach to our relations with our Pacific neighbours.

We are part of the Pacific and we want to see the region prosper and grow.

Developing a comprehensive, region-wide, free trade and economic integration agreement is a big part of our vision.

And our decision to award a Pacific Trade Fellowships to each Forum island country is another example of the practical steps we are taking to ensure negotiations towards PACER Plus are comprehensive and fair.

Every country represented here today shares an interest in ensuring that Pacific island countries adapt to the challenges and benefit from the opportunities of a globalised economy. 

The training program you will complete over the coming months will help equip you with the skills and knowledge that will be vital for your countries’ engagement in the negotiations.

I want to emphasise that Australia is committed to being a responsible partner working with others in the region to build a better future for the nations and people of the Pacific.

I welcome you to Adelaide for the first of your program’s modules and wish you all the best over the coming months of study.

Thank you.

 

Media inquiries: Mr Kerr's office - 02 6277 4991

[an error occurred while processing this directive]