The Edinburgh CHOGM: The Outcomes and Implications for Australia

The Edinburgh CHOGM: The Outcomes and Implications for Australia

Speech by the Hon Alexander Downer, MP, Minister for Foreign Affairs, to the ACT Branch of the Commonwealth Society, Canberra, 27 November 1997.

Introduction

Your Excellencies, Hugh Craft

It is a great pleasure to be here to address the ACT Branch of the Commonwealth Society, and to speak in a familiar location - the Australian Institute of International Affairs.

The Commonwealth continues to play an influential and positive role in world affairs.

It is worth remembering that the Commonwealth's membership represents an enormous slice of the world's population. Its member countries account for one quarter of the world's population, and range in population from only a few thousand to over 900 million. Commonwealth countries are located in almost every region of the world, including the Asia Pacific, Africa, the Caribbean and the Mediterranean.

The special strength of the Commonwealth lies in the combination of the diversity of its members with their shared inheritance in language, culture and the rule of law.

I have just returned from an important APEC meeting in Vancouver, and it is true that the Commonwealth is not at the centre of Australia's foreign and trade policy priorities in the way that the Asia Pacific is.

But it is also fair to say that the Commonwealth's important contribution to international life, and the enduring place that it holds in Australia's global priorities, has been undervalued.

Sir Robert Menzies said in 1961 that the Commonwealth meant much for "sanity and tolerance in a grievously troubled world", and he praised its ability to make "constant and notable contributions" to world peace and prosperity. Almost forty years later, the world has changed in many remarkable ways, but the words of Menzies continue to ring true.

There was no better demonstration of this than the Commonwealth Heads of Government Meeting (CHOGM) in Edinburgh last month. From Australia's point of view, the meeting was very successful and helped advance our regional and global interests in practical ways.

I was particularly pleased, as I know Prime Minister Howard was, that Australia's offer to host CHOGM in 2001 - the year of Australia's Centenary of Federation - was warmly endorsed by the Edinburgh meeting.

I want to outline briefly today the major outcomes of the Edinburgh CHOGM and their implications for Australia, including the Government's perspective on the Commonwealth's continuing relevance in contemporary international affairs.

Part One: Promoting Shared Prosperity: Trade and Investment Liberalisation

For Australia, the Commonwealth is significant because through our work on the Commonwealth's Secretariat, and through Commonwealth Heads of Government Meetings, we are able to show leadership and strengthen relations with many developing and developed countries.

The Commonwealth's greatest strength over the years has been its capacity to respond flexibly to new circumstances and meet the changing needs of its members. The special theme of this year's meeting in Edinburgh - "Trade, Investment and Development : The Road to Prosperity" - reflects the crucial importance of these issues to all Commonwealth nations as we prepare to enter the 21st century.

One of the most influential trends facing Commonwealth and non-Commonwealth nations alike is globalisation. Globalisation is here to stay. It is offering huge opportunities for economies that are internationally competitive, just as it challenges economies which are not. It blurs the division between foreign and domestic policies, and it increases competitive pressures in markets.

Globalisation is helping break down barriers to trade and investment, and is underpinned by extraordinary technological change bringing the world closer together. It is makes us all neighbours. But not all countries have benefited to the same degree. Developed members of the international trading system, and of the Commonwealth, have a responsibility to help developing members respond and adapt to globalisation.

I am pleased to say that many developing countries are already on the move. The nations of the South Pacific, for example - including many Commonwealth members - are improving their capacity to take advantage of opportunities in the new global trading arena. They have made a strong commitment to liberalising trade and investment, promoting the role of private sector development, and improving public accountability and transparency.

The right response to globalisation is more liberalisation, not less. The Economic Declaration which emerged from Edinburgh - entitled "Promoting Shared Prosperity" - is important because it helps member countries come to grips with the influence of global economic forces and the vital part that trade, investment and development play in harnessing this world-wide economic dynamism for the common good.

The Economic Declaration is a worthy counterpart to the historic Harare Declaration on the Commonwealth's political values. It welcomes the progress that has been made in recent years in dismantling trade barriers and establishing a rules-based international trading system, but it also recognises that significant barriers to trade in goods and services remain, and that the benefits of the expansion of world trade are still unevenly shared.

Through the Declaration, Commonwealth members resolved to strengthen the multilateral trading system within the framework of the World Trade Organisation (WTO), and support the full implementation of the Uruguay Round commitments. Commonwealth members resolved to maintain the momentum towards freer trade through multilateral negotiations, as outlined in the built-in agenda and other issues under discussion in the WTO, including progress on agriculture and financial and other services. This is an objective with major implications for future jobs and economic growth in Australia, and the Australian Government endorsed it unreservedly.

Prime Minister Howard's initiative for the creation of an international Trade and Investment Access Facility was warmly welcomed by Commonwealth members. This facility will help Commonwealth countries identify and manage the potential economic and social impacts of trade and investment liberalisation, and respond creatively to the challenges of globalisation.

We hope that other governments might also find the facility a useful channel for funding activities to achieve the shared goal of freer and more open trade and investment. Australia will contribute $1.5 million to the facility over three years. Canada, Britain and New Zealand also indicated their willingness to provide financial contributions.

Among the Economic Declaration's other significant decisions, Commonwealth members agreed to examine the growing importance of electronic commerce in trade and the developmental implications of the use of cyberspace for commercial and financial transactions. This has immediate relevance for Australia because we are ranked 8th in the world as a network society `plugged in' to the high-tech world - a little known ranking that puts Australia ahead of both Germany (13th overall) and Japan (16th overall). According to my Department, the global value of goods and services transacted on the Internet will grow from its current value of less than $US 5 billion per year to between $US 100 billion and $US 150 billion by the year 2000.

I should also mention that the first ever Commonwealth Business Forum was held prior to the Edinburgh CHOGM. This successful meeting of senior representatives from business and government provided valuable input and direction for the CHOGM discussions. I am pleased to say that the forum will meet again in future CHOGM years and be institutionalised through the creation of a Commonwealth Business Council. Prime Minister Howard addressed the Forum on globalisation and the post-Uruguay Round.

The creation of the Council is important from Australia's point of view not just because of the new dimension it gives to CHOGM discussions but because it builds the same type of government-business cooperation that the Australian Government is fostering across the board in its foreign and trade policies - whether, for example, through the Australia-Indonesia Development Area concluded earlier this year, or through stronger linkages between the ASEAN Free Trade Area and Australia and New Zealand.

Part Two: Economic Growth and the Environment

One of the major aims of the Commonwealth Business Council will be to encourage private sector involvement in promoting trade and investment. This underlines the fact that trade and investment liberalisation is the engine of economic growth, and that growth holds the key to addressing many of the environmental challenges of the late 20th century.

This is not to say that economic growth by itself is the total answer. But it does mean that, as incomes rise, both the means and the will to address environmental concerns increase.

That is why proposals to tackle climate change which have the effect of dislocating or restricting trade, distorting international investment flows, lowering growth and reducing living standards will not work. The results will be worse again if they discriminate against particular countries. In that respect, the Australian Government believes the CHOGM Economic Declaration addressed the issue of climate change in a constructive and positive way.

Importantly, the Declaration recognised the importance of differentiation in international negotiations on environmental issues by stating that the cost of protecting the environment should be "borne in accordance with shared and differentiated responsibilities".

Apart from this there were a further two aspects of the Declaration which we saw as particularly important.

First, the Declaration recognised the need for the outcome of the forthcoming Kyoto meeting in Japan to involve realistic and achievable goals.

And second, the Declaration said that not only the OECD countries but all countries have a role to play in reducing greenhouse gas emissions.

That is why I believe the Edinburgh outcome on climate change was a very satisfactory one. It is completely consistent with the arguments the Government has been promoting vigorously in Australia and abroad. The Edinburgh CHOGM sent a clear message that the Kyoto outcome needs to be workable and provide a framework for a global solution to what we all recognise is a global problem.

Part Three: Promoting Democratisation and Good Governance

Beyond the issue of climate change, the Commonwealth's members share a commitment to several fundamental principles. The Commonwealth's anchoring values - its commitment to promoting democracy, human decency and rights and economic liberalism - are at the core of what the institution is about.

The Commonwealth has focused in recent times on the development of good governance amongst its membership, within a framework of fundamental human rights. Members have been working together to strengthen democratic institutions and the rule of law, and working towards best practice in all aspects of administrative, judicial and regulatory matters.

The decisions taken at the Edinburgh CHOGM sustain this long tradition of support for institution-building and good governance.

Commonwealth Heads of Government agreed to maintain Nigeria's suspension from the Commonwealth until it completes its scheduled return to civilian democratic government by 1 October 1998. Heads of Government also authorised the Commonwealth Ministerial Action Group (CMAG) to recommend Commonwealth-wide implementation of measures if, in its view, these would serve to encourage greater integrity of the process of transition and respect for human rights in Nigeria.

Heads of Government agreed that if, following 1 October 1998, the Nigerian regime had not completed a credible programme for the restoration of democracy and to the observance of the Harare Principles, they would consider further measures, including Nigeria's expulsion from the Commonwealth.

The Edinburgh CHOGM also endorsed the decision of CMAG to suspend representatives of Sierra Leone's military junta from participation in Commonwealth meetings, and welcomed UN Security Council sanctions against the regime.

Heads of Government adopted three criteria for assessing applications for membership of the Commonwealth - traditional historical ties; observance of the Harare Principles of democratic government and rule of law; and acceptance of Commonwealth practices and conventions. It was particularly pleasing to see Fiji represented at Edinburgh after its readmission to the Commonwealth in September this year.

I want to emphasise that the Commonwealth's commitment to democratic reform and institution-building is something that Australia supports strongly because it goes to the heart of our own practical commitment to improving human rights and building national institutions in the Asia Pacific.

I should also mention that Australia was particularly pleased with the balanced, comprehensive reference in the Communique to the landmines issue, which invites countries to consider signing the Ottawa Treaty while referring to complementary work in the Conference on Disarmament and other fora.

This was clear recognition of the importance of the landmines issue to developed and developing countries alike. The Prime Minister announced on 17 November that I will travel to Ottawa in early December to sign the Ottawa Treaty on Australia's behalf. This will mean that Australia will forever forswear the use of anti-personnel landmines and destroy its stockpile, consistent with the provisions of the Treaty.

I am very proud of the leading role that Australia continues to play in international efforts to find a comprehensive and lasting solution to the grave humanitarian and economic crisis which the misuse of landmines has inflicted on many countries, including in our region. This has been backed up by a practical $19 million commitment to demining in the last 20 months which will help make a real difference to villagers in Laos, Cambodia, Afghanistan and other countries.

In addition to its formal sessions and activities, the Commonwealth - like APEC and other key international fora - provides an opportunity for leaders to develop personal contacts and mutual understanding on a more informal basis. In Edinburgh, among a wide range of formal and informal exchanges, Prime Minister Howard had constructive bilateral meetings with the Prime Ministers of Britain, Canada, Malaysia and Singapore, and PNG Deputy Prime Minister Haiveta.

Finally, Prime Minister Howard announced in Edinburgh that Australia is extending its existing successful programmes which assist the development of sport in the Commonwealth. The Commonwealth has an excellent record in sport at the elite level and, equally importantly, as part of its work of community development. As a strong sporting nation, Australia is well placed to help broaden sports development so that the Commonwealth Games remains a competition of genuinely international stature and wide interest.

Conclusion: The Commonwealth's Continuing Relevance

I do not want to conclude my remarks today without returning to where I began - the significance of Australia's hosting of CHOGM in 2001.

This will be an exciting and important international event for all Australians. It will underline the seriousness of Australia's commitment to the work of the Commonwealth and the organisation's continuing relevance in the modern world.

In the lead-up period to 2001, non-government groups that support the work of the Commonwealth will have an important role to play in helping build renewed interest and momentum across Australia for CHOGM. The Australian Government looks forward to working with Royal Commonwealth Societies, including the ACT branch, in this shared endeavour.

It is clear from everything I have said to today that the Australian Government's involvement in the Commonwealth mirrors the practical and innovative approach we take to our engagement with the Asia Pacific - it is a tightly focused contribution that seeks to advance our national interests and fundamental values in clear ways.

No-one should doubt the continuing relevance of the Commonwealth or the enduring quality of its contribution to international life. It is not the out-dated relic of colonial times that some of its ill-informed critics make it out to be. Rather, the Commonwealth is helping its members come to grips with some of the most challenging economic, political and social trends of the 1990s.

As the Edinburgh CHOGM demonstrated, the Commonwealth is a remarkably supple and forward-looking body which finds strength in the diversity of its membership and is encouraging countries to shape their own political and economic futures into the new millennium.

The Commonwealth is a unique body with a very proud history, and it has an important future in which all Australians can share, and from which all Australians can benefit.