JjJ, 1, AUS AL1, A
FOR MEDIA PRIMEY MIIS E AUGUST, 1980
ADDRESS TO SECOND ASEAN TPADE FAIR
MELBOURNE
The welcome I extend to you today, on behalf of the
Australian Government, is a very sincere and warm one.
This fair brings us another step foward, not only in confirming
the strength of the existing relationship between our countries
and our Governments: but also in confirming the growing
importance we place on this relationshi p. Through this fair,
ASEAN Governments and business leaders are given an important
promotional opportunity for their products in the Australian
market. These ties between Australia and ASEAN have developed rapidly.
Thirty years ago, we knew relatively little of each other.
our colonial histories were quite different. Australia developed
much of her trade under imperial preferences. We depended
almost entirely on our income from rural products.
As Australia underwent post-war development of its economy, the
countries of Asia, particularly South-East Asia, became markets
for our developing manufacturing industry, our commodities and
our raw materials. This brought more and more Australian
businessmen and Government leaders into contact with South-East
Asia. Our trade links were beginning to develop; and they have
matured during a period of great change for our economy and
those of the South-East Asian countries.
Now, your countries have developed as a significant and growing
economic force. You are enjoying rapid industrialisation; and,
in a difficult world economic environment, you have generally
enjoyed sound growth rates.
For our part, Australia has been successful in containing inflation;
in providing a stable economic environment; and in promoting
the co-ordinated and responsible development of our natural
resources. As a result, Australia is a net energy exporter; an
advantage which adds significantly to our long standing status
as an important raw material producer.
These new circumstances in'which we are placed, mean that the
challenges of the new decade contain great opportunities for
us all.
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We, in Australia, see our continuing capacity to take advantage
of these opportunities, as being dependent upon our encouragement
of the competitive instinct. Because, for us all, in Government
and in business, we will need to adopt a truly international
outlook and become competitive beyond our own shores.
The strategy of looking mainly to the domestic market, appropriate
in the early stages of industrial development, is not the
strategy which will take us successfully through the
There is no going back to it. The fears of the decade ahead only
exist for those who want to meet it with the solutions of
the past.
Great changes have taken place in recent times in the
international economic and energy order. None of these changes
are temporary. Those who imagine them to be so merely yearn
for a. past where business and industrial life was safe and
more comfortable.
We believe that Australia's economic machinery is geared to move
us confidently ahead. And Australian industry is already
making successful adjustments in a wide range of areas. There
is already, underpinning many of the industrial projects of the
future, an outward-looking, forward-thinking, progressive sense
of management. Figures bear witness to the success of our
relationship with ASEAN countries.
Two-wfy trade between Australia and ASEAN ha s increased
substantially in recent years, despite international
economic problems. In the calendar year ended December 1979, this
trade was ever $ 2 billion, more than double the level of
1975/ 76. From the early 70s, while Australia's exports to ASEAN
have grown steadily, our imports from ASEAN have expanded rapidly
at a rate of around 35% per annum. almost twice the annual rate
of growth of imports from all sources. In the same period, the
growth rate of imported manufactured products from ASEAN countries
has been just as dramatic, running at an annual average growth
rate of over 40%: a rate much higher than that for our total
imports of manufactures.
With the textiles, clothing and footwear industries, often the
target of criticism about perceived Australian protectionism,
the picture is very much the same. ASEAN has enjoyed a rapid
penetration of the Australian market for textiles, clothing and
footwear, with imports rising from $ 2 million in 1971 to $ 55 million
in 1978-9. When one considers that our total imports in these
areas were more than $ 1,200 million in 1978/ 79, it is clear that
there is still considerable scope for ASEAN to improve its
share of the import market.
In value terms, imports account for about 32 per cent of the
Australian market for textiles; and over 22 per cent of the
market for clothing. This is a much higher penetration than in
the Japan and the E. E. C. In the case of clothing, the
penetration in these countries is estimated to be between 8 and
13 per cent; for textiles 2 to 14 per cent. By these standards
our market is more open than those of these advanced industrialised
countries. / 3
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From the existing base, the potential for expansion of
trade between Australia and the ASEAN countries is
very great. ASEAN includes some of the fastest growing
economies in the world, with extensive sales to developed
countries. This~ growth, together with the realities of the
new international energy order, means that, more and more,
Australia is becoming a significant supplier of both energy
and raw materials to our neighbours in the Asia/ Pacific region.
As these countries widen and deepen their industrial base,
t here will be greater demands for Australian raw materials
and energy. At the same time, successful, competitive producers
in ASEAN, and Asia, will be able to take advantage of the
opportunities for imports in the Australian markets.
It is my Government's determination to develop, to the
greatest possible extent, trade within the region. For this
purpose, through the Australia/ ASEAN economic co-operation
programme, the Australian Government is providing considerable
funds to assist ASEAN countries to explore the potential for
their goods in Australian markets.
The Australian Government, in 1974, established a market advisory
service to assist producers in developing countries in
investigating market prospects. And I am pleased to note that
ASEAN countries have been significant users of this service.
Apart from this promotional assistance, developing countries
enjoy preferential tariffs to encourage our importers to
consider new sources of supply.
The five ASEAN countries provide a significant share of the
total Australian imports coming in under this system. In June
of this year, the ASEAN/ Australian Business Council was
established between the ASEAN Chambers of Commerce and Industry
and the Confederation of Australian Industry and Australian
Chambers of Commerce. This should provide a worthwhile forum
for expansion of business links between Australia and ASEAN.
Further indications of the increased importance of these links
between our countries can be guaged from investment figures.
A decade ago, Australian investment in the ASEAN countries was
relatively insignificant $ 1 million new Australian investment
in 1969/ 70. In 1978/ 79, new Australian investment in the region
had risen to $ 41 million, representing nearly one-fifth of the
total outflow of Australian investment abroad in that year. All
of this highlights a positive programme of continuing progress
and adjustment, occurring throughout many sectors of our economies.
And this can only be to our mutual advantage. This advantage
will increase in the future, through Government and industry
identifying their respective responsibilities.
The essential role of Government will continue to be one of
creating institutional machinery and a broad economic policy
framework in which market forces can operate. We take the view
that Government can not replace the key role of investors and
company managers in deciding where capital will be directed; in
determining which companies and industries will successfully carry
new projects to completion and subsequent profit; in anticipating
which products can compete effectively in a tough and changing
trading scene.
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Where appropriate, we are prepared, and should provide,
incentives to our industries. But the main engine of growth
and progress must be our private sector. I have great
confidence in the capacity of our business managers to recognise
the changes in the external environment and to perceive the
new trading and investment opportunities which these changes
are creating. Th-e historical lesson of Australian industry is
that successful management is management which adjusts.
Australian economic strength will continue to depend on
the Government's capacity to provide the environment in which
entrepreneurs, business managers and farmers can create, or
build upon, industries capable of competing effectively in
the trading world.
One of the great advantages of this Fair is that it gives, to
ASEAN . Government and business leaders, firsthand knowledge
and experience of what is happening in Australian industry
and the Australian economy. But, just as important, the
ASEAN Trade Fair enables our Government and business leaders
to become aware of how we should approach the ASEAN economies
with a full understanding of what they can provide; of the
opportunities they offer; and of the directions being taken
in their development.
This is essential, not just because we are neighbours and have
a mutual interest in economic development. It is also essential
because this decade has already indicated to us the need for
heightened regional security. And our ability to co-operate in
trade and development promotes trust and co-operation at the
political and diplomatic level.
However, this Fair is more than just a trade promotion activity.
It is a symbol of the close co-operation and friendship between
Australia and the ASEAN nations. For over a year now, many
people have worked towards this occasion. Australian and ASEAN
Government officials have collaborated closely in the design and
promotion of the display.
It has brought together Ministers from the countries of ASEAN
and Australia in an atmosphere of good will and co-operation.
What we have before us, is the result of the work of many
people from our region, united in a common purpose.
I have no doubt that the week ahead will reinforce and
strengthen the growing ties between our countries of which
this Fair is a practical expression. I have much pleasure
in declaring this Second ASEAN Trade Fair officially open.
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