Australia seeks regional free trade deal
AAP | August 11, 2008
Australia seeks regional free trade deal
Australia is hopeful of an early conclusion to a regional free trade agreement (FTA) with intensive negotiations underway, Foreign Minister Stephen Smith says.
The potential deal between Australia, New Zealand and Association of South East Asian Nations (ASEAN) was discussed at bilateral talks between Smith and his Indonesian counterpart Hassan Wirajuda in Jakarta on Monday.
It was the pair’s fourth meeting, and the 15th visit by an Australian minister since Labor won government last year.
"I look forward to the early conclusion to current negotiations on a comprehensive free trade agreement between Australia, New Zealand and ASEAN," Smith said in a speech to the Centre for Strategic and International Studies (CSIS), in Jakarta.
"In the lead-up to the target date of concluding negotiations at the ASEAN Economic Ministers - Closer Economic Relations Ministerial in Singapore on August 28, Australia is involved in intensive bilateral negotiations with key ASEAN countries to finalise tariff and services schedules."
Earlier, he told reporters both Indonesia and Australia had a "shared passion" to push the deal, believing it "would be an unambiguously good thing for Australia but also for ASEAN countries and the region generally".
"Australia regards the completion or the conclusion of a free trade agreement with ASEAN and NZ as being very, very important," Smith said.
"But it’s also important, in the aftermath of the regrettable collapse of the Doha talks in the last couple of weeks, that we have a regional success.
"Australia and Indonesia are both working very hard at negotiating well to bring such a treaty to a successful conclusion, which Australia would very much welcome."
The long-running Doha round of the World Trade Organisation talks recently collapsed when the United States, China and India failed to reach agreement on the relatively minor issue of food tariffs.
Smith said he also hoped the current feasibility study into a potential bilateral free trade pact between Australia and Indonesia would show benefits to both sides.
"There is significant room for growth in our economic partnership if we do more to remove barriers to trade," he told the CSIS.
More broadly, he said Australia’s relationship with Indonesia "is at a historic high".
The Australian government will provide up to $A2.5 billion to Indonesia over the next five years to tackle poverty and assist in social and economic development.
Tenders will be called this month in one of the biggest projects, a $A328 million initiative to improve hundreds of kilometres of national roads and bridges in 10 eastern Indonesian provinces.
"Indonesia’s development challenges remain acute," Smith said.
"In all challenges, Indonesia can count on Australia to work with it as a friend and partner."
Smith and Wirajuda will travel to southern Sulawesi on Tuesday to inspect a number of Australian aid funded projects.
