PRIME MINISTER
CHECK AGAINST DELIVERY EMBARGOED UNTIL DELIVERY
SPEECH BY THE PRIME MINISTER
THIRTEENTH INTERNATIONAL TRADE LAW CONFERENCE
CANBERRA 3 NOVEMBER 1986
DISTINGUISHED GUESTS, LADIES AND GENTLEMEN,
OVER THE LAST TWO DAYS YOUR GROUP HAS CONSIDERED A WIDE
RANGE OF INTERNATIONAL TRADE LAW ISSUES BEARING UPON THE
DEVELOPMENT OF TRADE BETWEEN AUSTRALIA AND THE REST OF THE
WORLD. HOWEVER, I SEE THIS CONFERENCE IN PART AS A SEQUEL
TO THE HIGHLY SUCCESSFUL AUSTRALIA-CHINA TRADE AND
INVESTMENT LAW CONFERENCE HELD IN BEIJING AND SHANGHAI IN
OCTOBER LAST YEAR. ACCORDINGLY, I COME TO ADDRESS YOU THIS
MORNING WITH A PARTICULAR INTEREST AND FOCUS. THAT IS THE
POTENTIAL FOR YOUR DISCUSSIONS TO IMPROVE THE UNDERSTANDING
AND HARMONISATION OF AUSTRALIAN AND CHINESE TRADE LAW SO
THAT WE CAN BUILD FURTHER ON THE RAPID GROWTH IN TRADE
BETWEEN OUR TWO COUNTRIES. FOR THIS REASON I AM PLEASED
THAT TODAY'S DISCUSSIONS WILL BE ON PRECISELY THAT TOPIC.
I WOULD LIKE THEREFORE TO EXTEND A WARM PERSONAL WELCOME,
AND A WELCOME ON BEHALF OF THE AUSTRALIAN PEOPLE, TO THE
DELEGATION FROM CHINA LED BY MR JING SHUPING. YOU HAVE COME
TO AUSTRALIA AS FRIENDS AND I TRUST YOU WILL M4AKE NEW
FRIENDS HERE AND LEAVE OUR SHORES WITH EVEN STRONGER
CONFIDENCE IN THE FUTURE OF THE WARM RELATIONS BETWEEN OUR
PEOPLES. OVER THE YEARS AND ESPECIALLY IN THE LAST THREE YEARS, CHINA
AND AUSTRALIA HAVE DEVELOPED AN EXCELLENT RELATIONSHIP AT
ALL LEVELS COMMERCIAL, CULTURAL AND OF COURSE, POLITICAL.
INDEED AUSTRALIA'S FRIENDSHIP WITH CHINA NOW HAS SUCH A
SPECIAL CHARACTER AND WARMTH, AND THE COMPLEMENTARITY OF OUR
ECONOMIES IS SUCH, THAT I BELIEVE WE CAN LOOK FORWARD WITH
ENORMOUS ENTHUSIASM TO STRONG GROWTH IN TRADE AND INVESTMENT
CO-OPERATION OVER THE NEXT FEW DECADES FOR THE GREATER
PROSPERITY OF BOTH OUR NATIONS.
LIONEL BOWEN HAS SPOKEN TO YOU ABOUT THE RANGE OF
INITIATIVES ON INTERNATIONAL TRADE LAW IN WHICH AUSTRALIA IS
TAKING PART. I DO NOT THEREFORE NEED TO COVER THAT
IMPORTANT GROUND IN ANY DETAIL. RATHER, I WOULD LIKE TO
SHARE SOME THOUGHTS WITH YOU ON THE TRADING OPPORTUNITIES
THAT YOU CAN HELP CREATE AND EXPLOIT FOR AUSTRALIA AND CHINA
THROUGH YOUR LEGAL EXPERTISE.
SINO-AUSTRALIAN TRADE HAS GROWN BY AN ASTONISHING 135 PER
CENT OVER THE LAST THREE YEARS, THOUGH THIS HAS BEEN FROM A
FAIRLY SMALL BASE. BY TAKING ADVANTAGE OF THE COMPLEMENTARY
FEATURES OF OUR TWO ECONOMIES, CHINA HAS BEEN ABLE TO DRAW
UPON THE STRENGTHS OF THE AUSTRALIAN ECONOMY TO HELP CARRY
FORWARD ITS MODERNISATION PROGRAM. AUSTRALIA TOO HAS
BENEFITED SUBSTANTIALLY FROM THE COMPLEMENTARITY THAT EXISTS
IN OUR MINERALS, STEEL, AGRICULTURAL AND TRANSPORT AND
COMMUNICATIONS INDUSTRIES.
IN RECOGNITION OF THESE MUTUAL DEVELOPMENT ACHIEVEMENTS AND
PROSPECTS, THE AUSTRALIAN AND CHINESE GOVERNMENTS HAVE PUT
IN PLACE FORMAL SECTORAL INITIATIVES FOR IRON AND STEEL,
NON-FERROUS METALS, WOOL, TRANSPORT AND EDUCATION.
REINFORCING THESE INITIATIVES, THE AUSTRALIAN TRADE
COMMISSION HAS DEVELOPED A CHINA ACTION PLAN DESIGNED
SPECIFICALLY TO CO-ORDINATE AND FOSTER OUR TRADE PROMOTION
EFFORTS WITH CHINA.
YOU IN THE AUDIENCE FACE BOTH A CHALLENGE AND A
RESPONSIBILITY, SHARED WITH THE TWO GOVERNMENTS, TO ENSURE
THAT OUR LEGAL SYSTEMS DO NOT UNNECESSARILY IMPEDE THE
PURSUIT OF TRADING OPPORTUNITIES. THIS REQUIRES US TO
DEVELOP AN UNDERSTANDING OF EACH OTHER'S LEGAL SYSTEMS AS
THE BEAR UPON TRADE AND TO WORK TOGETHER IN REMOVING
UNNECESSARY TRADE IMPEDIMENTS AND CREATING A MORE CERTAIN
ENVIRONMENT IN WHICH TRADE CAN BE CONDUCTED.
YOU ALSO HAVE A KEY ROLE TO PLAY IN ADVISING GOVERNMENTS ON
THE DEVELOPMENT, STREAMLINING AND REFORM OF LEGAL
ARRANGEMENTS AFFECTING TRADE AND INVESTMENT BETWEEN
AUSTRALIA AND CHINA.
CONSIDERABLE PROGRESS IN THESE ASPECTS OF TRADE LAW HAS BEEN
ACHIEVED ALREADY UNDER THE UMBRELLA OF THE MEMORANDUM OF
UNDERSTANDING ON LEGAL EXCHANGES BETWEEN CHINA AND
AUSTRALIA. THE LEGAL EXCHANGE PROGRAM IS BEARING FRUIT AND
THE ATTENDANCE LAST YEAR OF 50 AUSTRALIAN LAWYERS AT THE
AUSTRALIA CHINA TRADE AND INVESTMENT LAW CONFERENCE IN
BEIJING AND SHANGHAI UNDERLINES THE COMMITMENT OF OUR LEGAL
PROFESSIONALS TO IMPROVING THEIR UNDERSTANDING OF THE TWO
COUNTRIES' LEGAL SYSTEMS.
WE ARE DELIGHTED WITH THE FINALISATION A COUPLE OF MONTHS
AGO OF LEGAL ARRANGEMENTS FOR CITIC'S INVOLVEMENT IN THE
PORTLAND ALUMINIUM SMELTER. THROUGH THE EXPERIENCE GAINED
IN THOSE DISCUSSIONS, CHINA WILL BE BETTER PLACED TO CONDUCT
NEGOTIATIONS ON THE MANY NEW COMMERCIAL OPPORTUNITIES WITH
AUSTRALIA THAT UNDOUBTEDLY WILL ARISE IN THE FUTURE.
WE HAVE BEEN GIVEN FURTHER ENCOURAGEMENT VERY RECENTLY BY
THE PROSPECT OF CO-OPERATION BETWEEN THE AUSTRALIAN WHEAT
BOARD AND CHINA'S MINISTRY OF COMMERCE IN ESTABLISHING A
TRAINING BAKERY IN CHINA.
AND OF COURSE, THE RECENTLY CONCLUDED AGREEMENT ON
PRINCIPLES OF DISPUTE RESOLUTION FOR INCLUSION IN THE
AUSTRALIA-CHINA TRADE AGREEMENT IS A M4AJOR STEP FORWARD.
THESE PRINCIPLES ENCOURAGE THE USE OF FRIENDLY CONSULTATIONS
AND CONCILIATION AND IN THE UNLIKELY EVENT THAT THE NEED
ARISES, OF ARBITRATION IN A THIRD COUNTRY. THIS WILL HAVE
THE DESIRABLE EFFECT OF PROMOTING GREATER CERTAINTY AND
PREDICTABILITY IN OUR COMMERCIAL DEALINGS WITH EACH OTHER.
I CANNOT STRESS ENOUGH THE IMPORTANCE MY GOVERNMENT ATTACHES
TO AUSTRALIA'S RELATIONSHIP WITH CHINA. NOR CAN I
OVEREMPHASISE THE RESPONSIBILITY OF THE LEGAL PROFESSION IN
FACILITATING AND ENCOURAGING THE COMMERCIAL TIES BETWEEN OUR
TWO COUNTRIES.
WHILE I HAVE FOCUSED ON THE GROWING IMPORTANCE OF CHINA TO
AUSTRALIA, MUCH OF WHAT I HAVE SAID ALSO APPLIES TO THE
DEVELOPMENT OF OUR RELATIONSHIP WITH OTHER COUNTRIES IN THE
ASIA/ PACIFIC REGION. WE MUST ACTIVELY PURSUE THE
OPPORTUNITIES PRESENTED TO US BY THE RAPID DEVELOPMENT OF
THIS REGION.
COUNTRIES IN THE ASIA/ PACIFIC REGION HAVE COME TO ACCOUNT
FOR A MAJOR PORTION OF AUSTRALIA'S TRADE: OUR ASIAN
NEIGHBOURS ALONE PURCHASED AROUND 60 PER CENT OF OUR EXPORTS
LAST YEAR.
YET, DESPITE THE GEOGRAPHIC AND SUPPLY POSITION ADVANTAGES
WE ENJOY IN THE REGION, AUSTRALIA'S SHARE OF THESE MARKETS
HAS BEEN DECLINING. THIS M4AY BE EXPLAINED IN PART BY THE
COMPOSITION OF OUR EXPORT PRODUCTS COMPARED WITH THE
CHANGING DEMANDS OF THESE COUNTRIES AS THEY GROW AND
DEVELOP. BUT AUSTRALIAN MANAGEMENT ITSELF AT TIMES HAS
ADMITTED THAT IT HAS NOT ALWAYS BEEN AGGRESSIVE ENOUGH IN
SEEKING OUT NEW OPPORTUNITIES AND NEW MARKETS. TO HELP
PROMOTE OUR SUCCESS IN THE REGION AUSTRADE HAS IN PLACE
STRATEGIES NOT ONLY FOR CHINA, BUT MEASURES TO IMPROVE OUR
TRADING PERFORMANCE IN THE REGION AS A WHOLE.
BUT AS WITH CHINA, THE CHALLENGE FOR TODAY'S AUDIENCE IS TO
SEEK WAYS OF ENCOURAGING GREATER UNDERSTANDING AND
HARMONISATION OF THE LEGAL SYSTEMS OF OTHER COUNTRIES IN THE
REGION IN ORDER TO ENSURE THAT TRADE AND INVESTMENT FLOWS
ARE NOT UNNECESSARILY INHIBITED. OUR COUNTRIES HAVE SHOWN A
WILLINGNESS AND ABILITY TO CO-OPERATE REGIONALLY ON A
MULTILATERAL STRATEGY THROUGH THE REGIONAL TRADE INITIATIVE.
I FEEL CONFIDENT THAT WE CAN ACHIEVE SIMILAR SUCCESS IN
DEVELOPING AN UNDERSTANDING OF ONE ANOTHER'S LEGAL SYSTEMS
AS THEY AFFECT TRADE AND INVESTMENT.
THIS CONFERENCE ON INTERNATIONAL TRADE LAW IS TAKING PLACE
AT A TIME WHEN THE INTERNATIONAL RULES ON FAIR TRADING ARE
BEING BENT, M4ANIPULATED AND BROKEN IN SUCH A CAVALIER
FASHION THAT THE VIABILITY OF THE WORLD TRADING SYSTEM HAS
BEEN PUT UNDER THREAT. DURING THE LAST DECADE OR SO,
GOVERNMENTS AROUND THE WORLD HAVE BECOME MORE PROTECTIONIST
AND FAR MORE PRONE TO USING NON-TARIFF BARRIERS TO
CIRCUMVENT INTERNATIONAL TRADING RULES.
IN MANY INSTANCES SAME COUNTRIES HAVE DUMPED ONTO WORLD
MARKETS ENORMOUS SURPLUSES, ESPECIALLY OF AGRICULTURAL
PRODUCTS, BROUGHT INTO PRODUCTION BY THE DOMESTIC PRICE
SUPPORT AND EXPORT SUBSIDY PROGRAMS OF THEIR GOVERNMENTS.
IN RESPONDING TO SHORT-TERM POLITICAL PRESSURE BY RAISING
NON-TARIFF BARRIERS SO-CALLED " NEO-PROTECTIONISM"
GOVERNMENTS HAVE SACRIFICED THE FREE FLOW OF TRADE AND ALONG
WITH IT, THE PROSPECT OF IMPROVED LIVING STANDARDS NOT ONLY
IN OTHER COUNTRIES BUT IRONICALLY, AT HOME.
UNTIL RECENTLY, THE DOMESTIC COSTS OF PROTECTION HAVE BEEN
ALL BUT INVISIBLE, IN SPITE OF THEIR VERY GREAT MAGNITUDE
AND THEIR VERY REAL HUMAN DIMENSION. THE SHROUD OF
PROTECTIONISM TOUCHES EVERYONE IN THE COMMUNITY, THROUGH THE
HIGHER PRICES THAT MUST BE PAID FOR THE PRODUCTS OF
PROTECTED INDUSTRIES AND THROUGH LOST JOB OPPORTUNITIES.
JUST ONE INDICATION OF THE HUMAN DIMENSION OF THESE COSTS IS
THE MILLION OR SO EXTRA PEOPLE THROWN ONTO THE DOLE QUEUES
OF EUROPE BY THE DISTORTING EFFECTS OF THE COMMON
AGRICULTURAL POLICY.
IN PLAYING THE PROTECTION GAME, GOVERNMENTS HAVE BEEN
GETTING THEIR FINGERS BURNT. RETALIATION BY AGGRIEVED
NATIONS HAS ESCALATED BORDER SKIRMISHES TO MUCH WIDER TRADE
CONFLICTS AND IN THE CASE OF AGRICULTURE, TO AN ALL-OUT
TRADE WAR.
FORTUNATELY, THE FUTILITY OF INTERNATIONAL TRADE CONFLICTS
IS NOW BEGINNING TO FIND EXPRESSION IN WHAT HAS BEEN UNTIL
RECENTLY A SILENT MAJORITY. SOMETHING IN THE ORDER OF
$ US100 BILLION A YEAR IS BEING CHANNELLED INTO AGRICULTURE
BY THE EUROPEAN COMMUNITY THROUGH PRICE SUPPORT AND DIRECT
BUDGETARY SUBSIDIES. THE COST TO AMERICAN TAXPAYERS OF THE
US FARM ACT IS EXPECTED TO BLOW OUT THIS YEAR FROM
BILLION TO AROUND SUSSO BILLION.
THERE ARE SIGNS THAT TAXPAYERS AND CONSUMERS ARE BECOMING
INCREASINGLY UNCOMFORTABLE ABOUT BEING CALLED UPON TO
SUBSIDISE INEFFICIENT INDUSTRIES. THIS DAWNING REALISATION
OF THE FUTILITY OF TRADE CONFLICTS APPEARS TO HAVE BEEN A
MAJOR DRIVING FORCE BEHIND THE RECENT MINISTERIAL AGREEMENT
AT URUGUAY TO LAUNCH A NEW ROUND OF MULTILATERAL TRADE
NEGOTIATIONS. THE MINISTERIAL DECLARATION LAUNCHING A NEW ROUND PROVIDES,
FOR THE FIRST TIME, A BASIS UPON WHICH AGRICULTURE AND
SERVICES CAN BE DISCUSSED MEANINGFULLY IN INTERNATIONAL
TRADE NEGOTIATIONS ALONG WITH THE MORE TRADITIONAL
DISCUSSIONS THAT HAVE TAKEN PLACE IN THE VARIOUS MTN ROUNDS
ON TRADE BARRIERS AFFECTING MANUFACTURED GOODS. THE TASK
NOW IS TO PROCEED WITHOUT UNDUE DELAY TO TRANSLATE THOSE
WORDS INTO A SET OF BINDING OBLIGATIONS THAT ARE PUT INTO
PRACTICE.
THAT ENTAILS DEVELOPING A SET OF SUSTAINABLE INTERNATIONAL
TRADING RULES AND DISPUTE SETTLEMENT PROCEDURES WHICH
ENGENDER IN NATIONS RENEWED CONFIDENCE THAT THEY ALL CAN
SHARE IN THE ENORMOUS POTENTIAL GAINS FROM UNFETTERED
INTERNATIONAL TRADE.
AUSTRALIA LOOKS FORWARD TO WORKING WITH CHINA IN SECURING
IMPROVEMENTS IN THE EFFECTIVENESS OF THE GATT. WE HAVE
ACTIVELY SUPPORTED CHINA'S INTEREST IN JOINING THE GATT AND
OUR OFFICIALS HAVE WORKED TOGETHER IN CANBERRA ON HOW
CHINESE MEMBERSHIP MIGHT BE MOST EFFECTIVELY PROGRESSED. WE
ARE ALSO PLEASED TO BE PROVIDING, UNDER A MEMORANDUM OF
UNDERSTANDING SIGNED DURING MY VISIT TO CHINA IN MAY THIS
YEAR, A CONSULTANT TO WORK IN CHINA SPECIFICALLY ON THIS
ISSUE.
THROUGH ITS PARTICIPATION AS AN OBSERVER AT THE GATT MEETING
IN PUNTA DEL ESTE, CHINA HAS BEEN ABLE TO KEEP ABREAST OF
DEVELOPMENTS ASSOCIATED WITH THE LAUNCH OF THE NEW MTN
ROUND. CHINA'S ACCESSION TO THE GATT WILL FURTHER CONTRIBUTE TO A
STABLE AND SECURE FRAMEWORK OF LAW, POLICY AND PRINCIPLE
WITHIN WHICH ENTERPRISES FROM CHINA AND AUSTRALIA CAN TAKE
FULL ADVANTAGE OF THE SUBSTANTIAL OPPORTUNITIES FOR TRADE
AND INVESTMENT BOTH WAYS, TO OUR MUTUAL BENEFIT.
TO CONCLUDE, I WOULD SUGGEST THAT THE ROLE OF THE LEGAL
PROFESSION IN FACILITATING AND EXPANDING INTERNATIONAL TRADE
HAS NOT BEEN WELL RECOGNISED TO DATE. BUT I CAN ASSURE YOU
THAT, AS PRIME MINISTER OF A NATION TO WHICH TRADE IS VITAL,
I FULLY UNDERSTAND AND APPRECIATE THE CHALLENGES AND
RESPONSIBILITY OF LAWYERS IN IDENTIFYING AND EXPLOITING
TRADING OPPORTUNITIES. I AM HEARTENED BY YOUR ATTENDANCE AT
THIS IMPORTANT FORUM AND I WISH YOU WELL IN YOUR
DELIBERATIONS.