Australia Pushes Bilateral FTAs In Asia

by Mary Swire, Tax-News.com, Hong Kong

08 November 2010

During a four-day visit to Asian countries, Australia’s Trade Minister, Craig Emerson, held discussions on further trade liberalization in China, South Korea and Singapore, while he has also welcomed the decision by Australia and Indonesia to commence negotiations on a comprehensive economic partnership agreement (CEPA).

Emerson held formal ministerial talks with the South Korean Trade Minister, Kim Jong-hoon, on the free trade agreement (FTA) negotiations between the two countries and agreed to seek resolution of the remaining issues to bring negotiations to an early conclusion.

"Though the outstanding issues are difficult for both sides, South Korea is Australia's third-largest merchandise goods export market and an agreement offers substantial benefits for our two countries," he said.

During his visit to China, Emerson met Zhang Ping, Chairman of the National Development and Reform Commission and Chen Deming, Minister of Commerce, to discuss China's economic development strategy and bilateral, regional and global trade liberalization

"China is going from strength to strength, helping boost Australia's exports to China almost 40-fold – from AUD1.6bn (USD1.6bn) in 1990 to an estimated AUD62bn in 2010 – in the space of just two decades," he said. "Chen and I agreed to explore more creative ways to accelerate negotiations for an FTA between China and Australia."

"My discussions with Singapore’s Minister of Trade and Industry, Lim Hng Kiang and Minister of Foreign Affairs, George Yeo,” he added, “focused in particular on our shared interests centred on the Trans-Pacific Partnership, a 21st century agreement designed to liberalize trade in the world’s most dynamic region."

The announcement to start talks on a CEPA was made by the Australian Prime Minister, Julia Gillard, and the Indonesian President, Susilo Bambang Yudhoyono, in Jakarta. It followed the completion of the Australia-Indonesia FTA joint feasibility study in August this year.

Emerson said an agreement would help build on the economic, trade and investment links between Australia and Indonesia. In 2009, Australia’s two-way trade with Indonesia was valued at AUD11.3bn, making Indonesia its 12th largest trading partner and 10th largest export market.

The prospective agreement will be in addition to the existing Association of Southeast Asian Nations-Australia-New Zealand FTA, to which both countries are signatories. Emerson said the CEPA would go beyond an FTA by facilitating greater investment and economic cooperation between the two countries.

“Negotiating and concluding a comprehensive agreement encompassing trade, investment and economic cooperation will create dynamic opportunities for Australian exporters and investors in Indonesia,” he concluded.

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