Australian trade min urges China to agree free trade pact
Dow Jones Newswires | 7 May 2009
Australian Trade Min Urges China To Agree Free Trade Pact
By Ray Brindal, Dow Jones Newswires
CANBERRA -(Dow Jones)- The already close links between the economies of Australia and China underscore a need for China to develop the political will to complete negotiations for a comprehensive free trade agreement between the two nations, Australia’s trade minister, Simon Crean, said late Wednesday.
The interdependency and complementarity between the two economies are strong, with China needing Australian raw materials and Australia needing Chinese manufactured goods, and this provides "a huge platform" from which to conclude an FTA, Crean said in an interview on Wuhan Television in China.
Asked what needs to be done to promote such an agreement, Crean acknowledged that there are technical issues and sensitivities that must be addressed. Moreover, negotiations for an FTA must define better what it is that both countries are trying to get out of the relationship.
"But in the end what it requires is the political will to conclude it," he said in a transcript issued here Thursday.
Crean has expressed frustration at the slow pace of the FTA negotiations, saying in March talks were "bogged down" just at a time when Australia wanted to develop a framework for a new economic partnership with China, which would include a framework for investment in an FTA.
"There will continue to be increased product movement in agriculture, in manufactured goods, but by far the biggest opportunities are the services and investment," he told Wuhan TV.
Australia’s Foreign Investment Review Board currently is considering a proposed US$19.5 billion tie-up between Aluminum Corp. of China, or Chinalco, and Anglo-Australian miner Rio Tinto PLC (RTP).
The minister urged China to realize it is "important to open up both economies, to be encouraging of, not fearful of, each other."
"What we have to do is to create the openness to secure the future," he said.
Crean said he believes the political will exists in China and that "what we have got to try and do is to bring it (the FTA) to a conclusion as soon as we can."
"The sky is the limit, I think, in terms of this relationship. There is no stopping what we can do together if we put our minds to it."
China became Australia’s largest trading partner last fiscal year ended June 30, 2008, with two-way merchandise trade totaling A$57.92 billion. Australian exports mostly of raw or lightly processed farm, mineral and energy products were valued at A$26.93 billion while imports from China of A$31.00 billion comprised chiefly manufactured products including computer and electrical equipment, industrial products and clothing.
Australia and China agreed on April 18, 2005, to commence negotiations on an FTA, following consideration of a joint feasibility study that concluded there would be significant economic benefits for both countries.
A 13th formal round of negotiations was held in Beijing in December 2008 after which Australia reported the overall atmosphere of the discussions on services and investment "remain constructive."
