Howard eyes Chinese free trade deal
Australian Broadcasting Corporation, Sunday, March 13, 2005
Howard says Cabinet still has to decision on whether to begin free trade talks with China.
Howard eyes Chinese free trade deal
Prime Minister John Howard says there is a good chance Australia will begin negotiating with China on a free trade deal.
China is Australia’s third largest trading partner and the Government says if an agreement is signed it could be worth tens of billions of dollars to the economy.
Mr Howard says Cabinet still has to make a final decision on whether to begin the negotiations.
He has told ABC TV’s Insiders program that Trade Minister Mark Vaile has been able to get two important concessions from the Chinese during his recent visit.
"In return for acknowledging market economy status if the negotiations start, China will put everything on the table and China has also agreed that at the end of the day it will be a total agreement," he said.
"In other words, there won’t be an agreement on some things and some other things left for further discussions.
"[However] if at the end of the day there’s not much in it for Australia, we won’t start the negotiations."
Trade Minister Mark Vaile says a two year feasibility study into the free trade agreement (FTA) with China is almost finished.
He says that it is likely China’s status as an equal trading partner in the World Trade Organisation will be part of the negotiations and has moved to reassure colleagues about the benefits of the deal.
"It’s the same as I say to most Australians," Mr Vaile told Channel Seven
"There’s an opportunity that’s presenting itself to Australia as a nation at the moment to consolidate our position in the trading relationship, that is our third largest trading relationship, that is with China, and at a time when the country is going through a phenomenal growth phase."
Opposition concerns
The Federal Opposition says Trade Minister Mark Vaile is at odds with the Prime Minister over Australia’s free trade agreement with China.
Opposition trade spokesman Simon Crean says Mr Vaile has contradicted Mr Howard’s guarantee that Australia would not concede market economy status in order to continue negotiations with China.
Mr Crean says the Government has weakened Australia’s position.
"The market economy status issue is hugely important, but if it’s to be conceded Australia must get something in return, not just a commitment to continue negotiations with everything on the table," he said.
"The Prime Minister’s guarantee has to be upheld and the Prime Minister must bring the Trade Minister back into line."
Federal Opposition Leader Kim Beazley says the Government is throwing away opportunities by talking concessions.
"I mean it’s silly to surrender a bargaining chip before going into a negotiation," he said.
"That’s not making a hostile statement about an FTA or the Chinese - it’s just about commonsense."
Mr Howard says Australia already has a very strong trade relationship with China.
"It is very important in all of our trade relationships, whether with China or Japan or the ASEAN countries, that we don’t get hung up by process, that we look at the volume of trade and the opportunities and not the agreements and the free trade discussions," he said.
Mr Howard says that Australia is at the moment selling a lot to China and that will continue irrespective of whether Australia has a free trade agreement or not.
"So we have to keep ... everything in perspective," he said.
The issue will be discussed when Mr Howard visits China next month.
