The Hon. Stephen Smith, MP

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The Hon Stephen Smith MP
AUSTRALIAN MINISTER FOR FOREIGN AFFAIRS

Australia Arab Chamber of Commerce and Industry

17 June, 2008

I’m delighted to be here this evening.

I’ve just returned from an overseas trip which included my first visit as Foreign Minister to the Middle East: to Iraq, the United Arab Emirates and Kuwait.

I had very productive bilateral meetings.  They brought into sharp relief the breadth of Australia’s interests in the region.

The visit also underlined for me that there is a real appetite for closer engagement with Australia in the region.

Australia’s economic relationship with the Middle East has been a strength for some time.

Trade with the Middle East has grown at a rate of 10 per cent per year over the past five years.  The volume of our merchandise trade with the Arab world was over A$11 billion in 2007.

And that is in no small part due to the contribution of this Chamber.

The economic relationship was naturally an important theme of my visit to the United Arab Emirates.

I met both Her Excellency Sheika Lubna Al-Qasimi, the Minister for International Trade, and the Minister of State for Foreign Affairs, His Excellency Dr Mohammed Anwar Gargash. 

And some days later, in Paris for the Afghanistan Conference, I met with His Highness Sheikh Abdullah, Foreign Minister of the United Arab Emirates.

We spoke not only about bilateral relations generally, but also about the importance of pursuing an Australia – GCC Free Trade Agreement. 

The GCC is our tenth largest export market for goods and services, worth $6.2 billion in 2006-07

and by far our largest market for passenger motor vehicle exports. 

It’s a priority of ours to seek an early conclusion to the Australia-GCC FTA negotiations.

After the UAE, I was fortunate to be able to spend time in Kuwait where I formally opened the Australian Embassy in Kuwait City.

And held a very good discussion with His Excellency Khaled Al-Jarallah, Undersecretary of the Ministry of Foreign Affairs, about ways in which we can take forward our friendly relations with Kuwait. 

And to thank him for his government’s hospitality to our troops, and to our citizens who work there.

In Iraq, Australia’s strategic interests were a focus.

I met His Excellency Barham Saleh, the Deputy Prime Minister.

I affirmed to him that, following the withdrawal of Australian combat forces, our commitment to Iraq’s recovery and development was entering a new phase. 

We believe that to consolidate recent security gains in Iraq further economic and political progress is needed.

With that in mind, I announced a commitment of $165 million over three years, for humanitarian assistance, reconstruction and capacity building in Iraq.

The Australian Federal Police will also be training Iraqi police officers in Australia.

The Australian Government believes that a stable and properous Iraq is vital to the security of the Middle East and we are encouraged by recent moves by Iraq’s Arab neighbours to increase engagement with Iraq, including through the re-opening of embassies in Baghdad. 

One thing that struck me forcefully throughout my visit to the Middle East was the importance of people-to-people contact. 

That includes the experiences gained by so many citizens of your countries – especially from the GCC countries - visiting Australia as tourists and students.

Ladies and gentlemen:

Above and beyond the reality of our commercial relations, the Middle East continues to engage our strategic attention.

It’s a region whose long-term stability and prosperity matter greatly to the world, and to Australia.

Australia has global interests, and, under this Government, a real commitment to playing a more constructive role in questions of international peace and security.

It’s that commitment which underpins our decision to stand for election to the United Nations Security Council in 2013-14, to contribute directly to the deliberations of the world body. 

It’s that commitment which lies behind the Government’s aim to convene an International Commission on Nuclear Non-Proliferation and Disarmament, to address a very real challenge for us all.

And it’s why we are concerned about the current global food crisis. 

It was both impressive and encouraging at the recent Rome Food Security summit to learn of Saudi Arabia’s decision  to donate $500 million to the World Food Programme.

I’ve already spoken about our ongoing engagement with Iraq, and our commitment to its reconstruction efforts.

A successful conclusion to the Middle East peace process is just as important to regional stability, and the secure and prosperous future of the Palestinian and Israeli peoples.

The Australian Government is committed to a two-state solution to the Israeli-Palestinian conflict,

based on the legitimate aspirations of the Palestinian people for a state of their own and Israel’s right to live in peace with secure borders.

We realise that significant challenges remain. 

We remain hopeful that the Annapolis negotiations will move towards a final status agreement by the end of 2008.

The Australian Government will continue to look for opportunities to support international efforts to push the peace process forward.

As one of our first acts in government, the Australian Government doubled Australia’s development assistance to the Palestinian people to A$45 million in 2008.

The countries of the Middle East and North Africa are rapidly gaining in prominence for Australia and Australians. 

Our bilateral relations are growing in depth and breadth.  This is illustrated by the impressive growth in direct flights between the Gulf and Australia – more than 60 a week, all full, and to be joined by Qatar Airways later this year.

The Australian Government is committed to enhancing our relationship with the Arab world.

And in this task, I look forward to working with you all.

Your work – as members of the Chamber, as diplomatic colleagues - in promoting trade, commercial and political relations between Australia and the member states of the Arab League is much appreciated. 

Thank you. 


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