E&OE...
Thank you very much Frank for your very warm welcome and before I address the subject of my speech, can I say on behalf of many people what a wonderful contribution you personally have made to a greater understanding of foreign policy and strategic issues in Australia. It's yet another demonstration of the wonderful exemplar of Australian citizenship that you and your family represent Frank. I do welcome this opportunity to outline the Government's priorities for APEC. It is, the largest, in terms of clout if I can put it that way, by far international gathering that Australia has hosted in her history.
APEC economies account for more than half of global GDP and nearly half of world trade. And around 70 per cent of Australia's total trade is with the other 20 APEC economies. Eight of our top 10 trading partners are within APEC.
Shared prosperity in APEC helps underpin jobs, living standards and security for Australians. And as economic and political power moves inexorably from the Atlantic to the Pacific in the 21st Century, APEC will become even more important to our country.
Australia's role in the development of APEC is very well-known to all of you. And as well as showcasing Australia to the region, the Sydney meeting provides us with a fresh opportunity to shape APEC's agenda and ambitions as it approaches its 18th birthday.
But before turning to my specific objectives for APEC 2007, I'd like to touch very briefly on the broader question of APEC's role and its value in an uncertain world. There is a common view that the only global institutions are the ones that matter and which are based on international treaties.
Yet to approach global politics from this singular frame of reference is in my view very mistaken. It also misunderstands the aspirations of many APEC economies. Especially in this region, more flexible, less legalistic processes are often better equipped for achieving concerted action on certain issues, at certain times.
There is no reason why different approaches cannot reinforce and complement each other. A good example is trade. Australia, like other countries, has a major interest in strong, multilateral rules in the World Trade Organisation. A good outcome from Doha is still our highest trade priority. But this does not mean we should ignore less structured forms of economic cooperation.
Indeed APEC has long been a useful forum for economies making voluntary undertakings, short of binding commitments. APEC provided a context for China to undertake important liberalisation in the 1990s, prior to its entry into the World Trade Organisation.
The sheer diversity of different economies in APEC means that it works best by not trying to turn itself into a rigid negotiating forum. We should avoid the mindset where