. JAU5T1( ALA_,
FOR PRESS 23 OCTOBER 1978
ADDRESS AT
ASEAN TRADE FAIR
I ama delighted to be here today to open the ASEAN Trade Fair,
and to see so many representatives from ASEAN countries.
The idea of a Fair to promote further the development of
economic co-operation between Australia and ASEAN was first
suggested in discussions I had with the ASEAN Heads of Government
in Kuala Lumpur in August 1977. It is a tribute to everyone
involved that the idea has been transformed into such an impressive
reality. It has required hard work and co-operation on the part of the
exhibitors, and the national trade promotion agencies of each
of the ASEAN countries, in conjunction with Australian authorities.
The Fair has been financed by the Australian Government with the
objective of providing companies from ASEAN with an opportunity
to present new products to the Australian market, to promote
existing exports, and to obtain a better appreciation of the
Australian market and its particular requirements.
Australia's economic relationship with ASEAN is healthy and
growing, despite the economic difficulties that we have all
experienced in recent years. Trade between Australia and
ASEAN has grown dramatically. Australian imports from ASEAN
grew from $ 97million in 1971/ 72, to $ 557 million in 1977/ 78.
This represents an average annual growth rate of 34% compared
with a corresponding figure of 19% for total Australian imports.
ASEAN's share of the Australian import market has increased
from 2.4% to 5% in that period. manufactured imports from
ASEAN have increased dramatically. Australia's imports of
manufactures from ASEAN countries grew at an average rate of
47% a year between 1971/ 72 and 1977/ 78 more than twice the
rate of our total imports of manufactures. / 2
Trade has grown even in sensitive areas, at times at the
expense of Australian industry. For example, Australian imports
of clothing, textiles and footwear from ASEAN have grown
from $ 6.5million in 1971/ 72 to $ 45. lmillion in 1977/ 78 an
annual average growth rate of 38%.
During 1975, on the basis of the latest revised statistics
provided by GATT, Australian imports of these sensitive pr'oducts
amounted to $ 2.14 per head. Comparable imports in that year by
the United States amounted to only 63 cents per head; by the
EEC, Sicents her head; by Canada, 4lcents per head, and by
Japan, 25 cents per head. If these countries had imported from
ASEAN the same value per head as we have, ASEAN exports of
these sensitive items would have been in 1975 around $ 1,000 million
higher. Historically, it is true that Australia has sold more to ASEAN
than it has bought from ASEAN. This situation reflects a number
of factors including the difference in population size between
Australia with 14 million people, and ASEAN with approximately
240 million people.
Nevertheless, this trade gap is narrowing. Last financial year
our exports to ASEAN grew by 29%. Too often,* reports ignore
the growth of our two-way trade, and dwell on the few problems
that are inevitable in a healthy and growing trade relationship.
When these problems do emerge, it is important that they be
tackled in a positive way tha * t we all-make an effort to achieve
a better understanding of the situation each of our countries
faces, and not allow difficulties to distort our total trading
relationship. There is a natural trading relationship between ASEAN and
Australia. Economic development in ASEAN is creating a
demand for Australian raw materials and consumer and capital
goods, and already the ASEAN countries have benefitted from
the general growth in imports into Australia, and from policies
designed to promote imports from developing countries, including
ASEAN. The ASEAN countries now supply some 28% of imports eligible
for preferential treatment under the Australian system of tariff
preferences for developing countries. In fact, approximately
of imports from ASEAN enter Australia duty free, or are
eligible for duty free or preferential treatment under the
developing country preference system. In addition, ASEAN
exporters have been major users of the market advisory
section in the Department of Trade and Resources, which has
coordinated arrangements for this Fair.
That section has assisted ASEAN businessmen through servicing
more than 300 product enquiries, and has facilitated at least
trade missions from ASEAN in recent years; two of those
missions will be in Australia next week. ./ 3
It may take effort and extensive market research to penetrate
the Australian market in the face of strong competition from
third country suppliers. But the effort is worthwhile and
Australia will continue to assist ASEAN exporters in their
efforts to sell in this country.
Australia and ASEAN both want to see significant and stable
growth in world trade as a whole. This would mrean increased
trade and prosperity for Australia and all its trading partners.
It would help stimulate Australian/ ASEAN trade to our mutual
benefit. With regard to our own exports, Australia has been active in
increasing its sales to numerous parts of the world. A number
of ASEAN nations, particularly China, South Korea, Hong Kong
and Taiwan, have shown strongly growing demand for Australian
products, particularly for agricultural and mineral commodities.
Indeed, China has jumped from being our fifteenth largest
export market in 1976/ 77 to fourth largest in 1977/ 78; while
South Korea has risen from thirteenth position to ninth.
As an indication of the importance we attach to markets in this
region, the Deputy Prime Minister and Minister for Trade and
Resources, Mr. Anthony is to visit China this week to seek
further sales for Australian products. Australia also sees
the oil-rich countries of the Middle East as increasingly
important buyers of our products.
We have opened a number of trade cornissions in the area in
the past few years and strengthened existing posts. Our
exports to countries in this region, particularly Iran, Saudi
Arabia and Kuwait, have grown significantly in recent years.
over the last five years our exports to this region have risen
by 400% to over $ 750 million. We are determined to increase
our trade to markets all around the world.
Australia's close involvement with ASEAN is not of course
confined to trade matters. Over recent years, Australian
investment in the region has grown, our aid programme has
steadily built up, and there has been much closer and
more regular consultation and exchange at all levels. What
is particularly pleasing is the development of Australia's
relations with ASEAN as a whole, as well as with its
individual member countries.
Australia has participated in a number of major initiatives
in this field and is proud of this record. Very early on,
in 1974, we established a formal relationship with ASEAN,
and we now hold annual officials' talks known as the ASEAN/ Australia
Forum. The fourth meeting will be held next week and we are
very pleased indeed once again to be able to welcome ASEAN.
officials to Canberra.
Australia was also the first country to establish an economic
cooperation programme with ASEAN. This now represents a commitment
of $ 15 million. It has improved contacts between specialists
in various fields in ASEAN and Australia.
Perhaps the most important landmark in our relationship was the
meeting of the ASEAN Heads of Government, ana Mr. Fukuda,
Mr. Muldoon and myself, in Kuala Lumpur last year. It placed
the relationship between ASEAN and its neighbours on a new
footing and strengthened mutual understanding among all our
countries. In the year since the Kuala Lumnpur summit, much progress has
been made towards developing closer practical forms of cooperation
and consultation. One of the most important of these has been
the proposal to establish ASEAN/ Australian consultative meetings.
The terms of reference have now been agreed between the ASEAN
and Australian Governments.
No one denies that there have been on occasions, some difficulties
and misunderstandings on trade matters. This new consultative
machinery will provide the ASEAN and the Australian Governments
with better opportunities for communicating their interests
and concerns. I trust that it will also provide a better
opportunity for discussing and resolving mutual trade problems
before they become too difficult.
Another event on this year's calendar was the Australia/ ASEAN
Industrial Cooperation Conference in Melbourne. It was
highly successful in bringing together representatives of the
private sector and government from both ASEA14 and Australia.
I am sure that this Trade Fair will be similarly successful.
The Government's hope is that this and future fairs will
increase Australian business awareness of ASEAN and what it has
to offer, and also help ASEAN to improve further its competitive
footing in the Australian market.
These are just some of the areas of cooperation. Others will
have a slightly longer term focus. For instance, the
Australian/ ASEAN Joint Research Project which I announced
last year in Kuala Lumpur will aim at establishing a sound
basis of knowledge from which the long-term relationship can
be developed. I have also indicated Australia's willingness
to assist where possible in the development of the ASEAN
indus trial projects.
The Government fully recognises the importance to Australia
of the future of ASEAN. Gatherings such as these provide
the opportunity to build up both the personal and commercial
contacts which will be so necessary in cementing relations
between Australia and ASEAN.
A very important interest shared by Australia and the countries
of ASEAN is our common concern about world commodity trade. It
is an issue which has been too often set aside by the major
developed countries in important international negotiations.
The Multilateral Trade Negotiations have now been in progress
for a very considerable length of time. If these negotiations
lead to a new Multilateral Trade Agreement, such an agreement
will set the pattern for international trade for the next
few decades. But I may say that the omens for a satisfactory
conclusion of MTN are not all good. The negotiations were
originally due to conclude in July. They were then scheduled
to conclude by the end of this year. even that target
seems unlikely to be achieved. There is evidence that the
negotiations are losing their momentum losing sight of
the prime aim to secure a fairer and stronger world trading
systemL. It is essential that the M4TN succeeds in liberalising
trade in all products, not just those of interest to the
major industrial countries.
Agriculture and other commodities are of vital importance to most
developing countries including ASEAN. Trade in these products
can no longer be left off the agenda of international negotiations.
A better deal must be achieved for commodities.
Unstable commodity prices and markets have harmed the export
earnings and growth prospects of developing countries,' indeed
of all commTodity producing countries. Australia knows this
from its own experience.
For the purchasing countries, boom-then-bust commodity markets
have entailed sudden massive price swings, and often set
off irreversible wage rises and longer term inflationary
pressures. It is in the interests of both producers and
consumers that there be stable commodity trade. The Australian
Government believes that a viable and well-managed Common
Fund can help achieve this goal, and we have made every effort
to assist in bringing about agreement between the developed
and developing nations on this issue.
Australia participated in the CIEC Conference in June last year
where the first agreement in principle was reached, on the
need to establish a Common Fund. We pursued the matter at
the Commonwealth Heads of Government meeting in London, and
a technical group was established to look at how such a fund
might be set up.
At the Commonwealth Regional Meeting last February, we announced
our decision to break away from the rather inflexible stance
then being taken by the developed countries, and since then
we have been using all our diplomacy and powers of persuasion
to help in bringing both sides together. In April, at our
initiative, a meeting of Commonwealth ministers was held in
London to consider the report of the technical group, and a
significant degree of consensus was reached.
Later that month I discussed this issue in detail with Mr. Fukuda
and other members of the Japanese ministry, and in June. I
pursued this matter vigorously in the United States and Europe.
At the OECD Ministerial Council f-leeting in Paris, the Minister
for Foreign Affairs, Andrew Peacock, took the initiative in
holding detailed discussions with tMr. Vance on the Common Fund
issue. In our view, this major effort has proven most worthwhile.
Wle have been encourage& by recent signs that some of the major
participants in the gtations are reviewing their positions,
and may be prepare to a= pt a more flexible approach in the
UNCTAD Negot%-iati Conference to be held next month. The U. S.
attitude will critical to the successful conclusion of the
Common Fund gotiations. It was therefore most encouraging
that U. S. ecretary of State Vance affirmed at the U. N.
General Assembly that a soundly designed Common Fund could
play a useful role in alleviating co~ r-mnodity problems and
benefit participating countries. For its part, the Australian
Government will take every oppor' nity to promote a consensus
on the issue from now until the en of the Negotiating Conference.
Two senior Australian officials have just completed talks with*
U. S. officials with a view to further developing the Common Fund
concept. We are hoping to hold similar discussions with other
countries as the opportunity arises in the lead up to the
Negotiating Conference, and in this we would hope to cooperate
with the ASEAN countries.
They have a reputation for good sense and moderation in international
forums, and I believe they will have a most important role to
play in achieving the consensus we hope will emerge. A further
opportunity will arise for us to pursue this matter in December
at the meeting of a group of developed and developing countries
called by the Jamaican Prime Minister, Mr. Manley.. The fact
that a number of Heads of Government have agreed to meet in
the last week of December underscores the movement that is
taking place on this issue, and the significance which many
government leaders are now attaching to it.
In Australia, we have watched ASEAN's development with admiration.
The achievements have been outstanding. The countries of
ASEAN have tackled their problems with vigour and
determination. Through their own efforts the five countries are
steadily bringing greater prosperity and stability to their
region. Each country has better than 6% annual growth rates.
The ASEAN countries are developing close cooperation as an
economic group at both the government and private levels and
building harmonious relationships with their neighbours.
Australia is delighted to have such growing and prosperous
neighbours. I am sure that this Fair will help develop
Australia's relationship with ASEAN. I wish the Fair every
success, and I hope that all our ASEAN exhibitors go home
with full order books. o00000000