China trade talks are tough: Truss
The Age, Melbourne
China trade talks are tough: Truss
13 June 2007
AAP. Trade Minister Warren Truss has dubbed long-running free trade talks with China as tortuous, a day after the Chinese warned relations with Australia could suffer because of a visit by the Dalai Lama.
China issued Australia a stern warning on Tuesday only hours after Prime Minister John Howard confirmed he would meet the exiled Tibetan religious leader on Friday.
Beijing expressed "strong dissatisfaction and staunch opposition" at Canberra’s decision to allow the revered 71-year-old into Australia, let alone giving him the opportunity to put his views on Tibetan autonomy.
Mr Truss echoed comments by Foreign Minister Alexander Downer that it was up to Australia to decide who Mr Howard would meet.
But he was certain China’s annoyance would not be an impediment to Australia’s trading relationship with the growing economic powerhouse.
"I am confident that our relationship is firm and solid and that we will be able to negotiate with China to achieve a satisfactory outcome and that these meetings (with the Dalai Lama) will not be a permanent impediment," Mr Truss told reporters.
Australia and China have been negotiating a free trade agreement (FTA) since the middle of 2005.
However, Australia is facing an uphill battle to achieve the comprehensive agreement it seeks, with China so far failing to concede meaningful ground on access to its markets.
Mr Truss said Australia had never underestimated the challenges of reaching agreement with the nation which will provide a market of 1.3 billion people.
"No one ever underestimated that the discussions with China would be anything other than challenging and likely to take some time," he said.
But when comparing Chinese negotiations to those with Japan, he said: "The discussions with China have been going somewhat longer and have been a little more tortuous."
Much of the problem stemmed from the fact Australia was one of the first developed countries seeking an all-encompassing trade deal with China.
While other western nations have struck agreements, most have gone for the easier option of leaving out whole sectors, an alternative known as a "dirty" FTA.
"We want an agreement that’s comprehensive so it’s often harder for Australia to ... (achieve this than other countries) who are prepared to make more compromises," Mr Truss said.
Mr Truss believes there is the goodwill at the top of the Chinese leadership to find a way to strike a deal but this was not always evident at the negotiating table.
"The commitment of the leadership at the highest level is beyond question," he said.
"However, sometimes there seems to be a gap between the leadership and what their negotiators bring to the table.
"I think it is important we develop confidence in the Chinese community that an FTA with Australia will be advantageous to both partners."
Australia has been conducting seminars in Beijing explaining to both the Chinese government and businesses how it could be advantaged by opening up its markets to Australian goods and services.
The next round of negotiations are due to be held at the end of this month.
