Leaders put torch to free trade talks
The Australian, Canberra
Leaders put torch to free trade talks
By Rowan Callick, China correspondent
11 April 2008
The Chinese and Australian governments have agreed "to unfreeze" the stalled negotiations for a free trade agreement.
Kevin Rudd said that he and Chinese Premier Wen Jiabao - who held discussions at the Great Hall of the People - were "both committed to ensuring that this will be a broadly based, comprehensive and substantive free trade agreement".
He said that Trade Minister Simon Crean, who visits Beijing next week, would identify with his Chinese counterpart obstacles that have prevented substantial progress in 10 rounds of talks.
The heads of government would become involved to help speed up the process once a roadmap had been developed.
He cited the FTA signed by New Zealand Prime Minister Helen Clark in Beijing on Monday as part of the impetus to bring "fresh political momentum" to the talks, which he hoped would be completed "as soon as possible".
Mr Rudd said that he and Mr Wen "agreed to unfreeze what have been the frozen bilateral negotiations".
China is Australia’s largest partner in terms of two-way trade, which totalled $50billion in the last financial year - although Japan remains the biggest buyer of Australian exports. Mr Rudd told members of the Australian Chamber of Commerce in Beijing that it was a high priority of his visit to build a better framework to make business between Australia and China easier. "China can be a baffling place the first time you come - for business or for study. To the uninitiated it can be a little intimidating," he said.
"That is why I am so keen to push ahead with our free trade agreement negotiations.
"It can help smooth the way for Australian companies in all sectors trying to do business in and with China. We understand it will take some time - these are complex and at times sensitive negotiations.
"But they have already been under way for three years. It is time we moved towards an outcome - an outcome that offers real freeing up of commercial opportunities."
Mr Rudd also made clear that China’s state-owned enterprises - which comprise almost every major investor or potential investor in Australia, especially in Australian resources - would be subject to the same scrutiny from the Foreign Investment Review Board as its sovereign wealth funds. He stressed to China the non-discriminatory nature of Australia’s regulations.
He told the chamber of commerce members: "I want to expand our economic relationship with China. We already have strong trade in energy, resources and agriculture. We have solid trade in manufactured goods.
"But our services trade has huge scope to develop."
But he warned "the current global financial crisis represents a real risk to the prospects for growth for many economies".
It was a subject which he has discussed "with heads of government, central banks and ministries of finance in the US, Brussels, the UK and now here in China".
"In these meetings, I have outlined my view of how Australia will contribute to what must be a global response to a global financial crisis," he said. "As financial markets become more global and assets are traded more quickly between nations, so too must regulation and supervision become more global.
"Australia is a long-standing advocate and driver of improvements to global standards for the financial sector. Just as important as improving and maintaining the integrity of the global financial system is enhancing the openness of global trade."
He also told the chamber members that he had "urged China to allow greater access for Australian fund managers to operate here".
