E&OE
17 November 2008
ABC2 Breakfast with Barrie Cassidy
Subjects: G20 and APEC
BARRIE CASSIDY: Well, the Foreign Minister Stephen Smith will make his first visit to Latin America as Foreign Minister this week. His trip takes him to Mexico and then on to Peru where the APEC meeting will take place.
Before flying out he's now agreed to join us, in ABC's Perth news room.
Stephen Smith, good morning. Welcome.
STEPHEN SMITH: Good morning Barrie.
CASSIDY: Can we start first of all with the trade issue though, and this suggestion that what happened, what occurred at the G20 will lead to further liberalisation - why is that so?
SMITH: Well, Australia thinks it's very important, and it's reflected by the G20 communiqué, that this is not the time to retreat to protectionism.
Australia has always strongly argued for openness, for access to markets, for open trading arrangements as being the best way to maximise economic growth, not just for a country but internationally.
And at a time of difficult financial circumstances internationally, it's the last time that we want to retreat to protectionism.
So we're very pleased with the G20 meeting; very pleased with the communiqué; and very pleased that trade liberalisation and further action on the Doha round is a central part of the outcome of the G20 meeting.
CASSIDY: So you see that, you think that it might act as a trigger, that it might give fresh impetus to the Doha round?
SMITH: Absolutely. The communiqué talks about the G20 leaders directing their Trade Ministers to try and arrive at a solution to the Doha round.
APEC in that context is very important because, in the course of this century already we've seen economic influence and strategic influence start to shift to the Asia Pacific region. We've got about eight or nine APEC members who are also part of the G20, so about a third of APEC members would have had leaders and Treasurers or Finance Ministers at the G20. So, that'll be a significant and positive influence.
But, underlining not just the need for regulatory reform, not just the need for prudential requirements, not just the need for fiscal stimulus, but also the long-term structural need to continue to push trade liberalisation we think is very important; and APEC coming hot on the heels of the G20 leaders meeting we think will also help in that respect.
CASSIDY: I wonder though is there a problem just around the corner - that is, that Barack Obama is a Democrat and the Democrats aren't exactly free trade devotees.
SMITH: Well I'm not sure you can necessarily ascribe that to the President-elect. I've seen that reference to the Democrats. Frankly, I thought that there was less focus on protectionism in trade, trade matters in the presidential election campaign than there could have been.
So, I think we should allow the President-elect to effectively start with a clean slate, and to consider these issues afresh when he takes over on 20 January.
Yes, I've seen that, that reference or that ascription to sections of the Democratic Party. I'm not sure that it applies to the President-elect. I'm sure he'll see the arguments in favour of openness and access as well, but, in that respect Barrie, time will tell.
CASSIDY: Now, you're on your way to APEC of course, but dropping into Mexico on the way through. Is that a case of being in the neighbourhood, so, I'll drop in?
SMITH: Well, it's, it's in a sense on the way, but it's sending an important signal.
Australia believes that our relationship with South America or Latin America is frankly under-done, and I'll be the first Minister from the Rudd Government to visit Mexico. Mexico of course, with Brazil - our two largest trading partners in Latin America; Mexico now our second largest. But one of the things we've discovered in the course of this year is that we do need to enhance our relationship with Latin America generally.
We've had the Foreign Ministers from Chile and Brazil in Australia, and with both those ministers, jointly with Chile and Brazil, we've made the point that we think we can do more, not just in terms of trade, but also in terms of education services - that's of great attraction to Latin America - and we've also known that people are voting with their feet to Latin America - extra flights from Qantas for example, direct flights to particular countries - and also, growing links between our minerals and petroleum resources industries.
So, we're sending a signal that we want to engage more with Latin America; with Mexico, and with Brazil and Chile and Argentina and the like, and of course, while I'm in Lima in Peru for the APEC meeting, I'll be having bilateral meetings with my Latin American counterparts, including of course my counterpart from Peru itself.
CASSIDY: And finally Stephen Smith, APEC - will that simply build on G20 or will you now move on to other issues?
SMITH: Oh, we will certainly I think substantially build on G20 and look very carefully at the international crisis in the aftermath of the G20. But, there's also a range of things that we want to do that are relevant to APEC itself, to continue to make sure that APEC's institutions are also up to the mark. So we'll be looking, in a sense, internally at some of APEC's institutional arrangements. But also making the point to communities and governments and nation states in the Asia Pacific region that APEC is the premier economic institution, regional institution so far as the Asia Pacific is concerned, and we very strongly continue to believe that it's got a very important role to play into the future, not just in the direct issues arising out of the global financial crisis, but also in trade and investment and cooperation terms generally.
CASSIDY: Stephen Smith, thanks for talking with us.
SMITH: Thanks very much Barrie.
[Ends]
Media Inquiries: Foreign Minister's office (02) 6277 7500