Robb hopeful free trade deals can be made
ABC Rural, Australia
Robb hopeful free trade deals can be made
By Anna Vidot
13 November 2013
The man tasked with finalising three major free trade agreements within 12 months says he’s hopeful it can be done.
The Federal Trade Minister Andrew Robb is leading the charge to reinvigorate Australia’s stalled free trade negotiations with China, South Korea and Japan. He says it’s in the interests of all those countries, including Australia, to get those agreements locked in soon.
Speaking to the Australia Network’s Jim Middleton, Mr Robb indicated that Australia should also be prepared to give some ground in order to secure an agreement.
"I do think it’s in our interest to complete these negotiations as quickly and as effectively as possible and not hang out for necessarily 110 per cent. But we need quality, we need quality agreements," Mr Robb said.
"I have discovered enthusiasm and eagerness amongst the trade ministers in each of those three countries, and the Prime Minister has met with the leaders of all three countries and has found also there is a sense from all three that they want to quickly complete these negotiations."
Mr Robb says he has sensed a "new impetus" behind efforts to secure free trade deals, in his discussions with 18 of his fellow trade ministers since the election.
"There does seem to be a sense of despondency about the way in which interventionist policies have not led to further growth, have not taken the world back out of the malaise that it struck with the global financial crisis, and they are looking for trade and growth," he said.
"We’ve got to ride that wave. That wave may not last, so if we can ride that wave, I think we’ve got some real prospect of reaching a conclusion."
Mr Robb says he won’t talk publicly about the deal he will take to China, in particular, in an effort to secure an agreement, but says he’s hopeful of being able to break through on issues that became no-go areas in the stalled negotiations.
The capacity to invest in Australia has been particularly sensitive in discussions with China, which is seeking the sale deal that Australian gave the United States in its free trade agreement.
The deal means investment in Australian land, water and business by an American company only attracts the attention of the Foreign Investment Review Board (FIRB) if the proposed transaction is worth more than $1 billion. For all other countries, investments by privately-owned enterprises must be approved by the FIRB if they’re worth more than $240 million. All purchases by state-owned enterprises require approval.
Mr Robb acknowledges that capacity for investment in Australia is a significant issue for China, but that it’s an important issue for Australia as well.
"We need that investment if we are to grow the economy and to realise the opportunities that are out there. So it is an important part of this deal and it will be an important part of what I put to them," he said.
An important test on foreign investment looms for the Coalition Government in the bid from American agribusiness giant Archer Daniels Midland (ADM) to buy eastern Australia’s dominant bulk grain handler, GrainCorp.
The National Party and some country Liberal MPs have expressed strong opposition to the deal, which they say is not in the national interest.
The Treasurer Joe Hockey is due to make his decision on whether or not to allow the sale by December 17.
Mr Robb says he does not accept that the issue is a test for the new government.
"But at the same time, we have got thresholds on investment, [and] there is a reason for that.
"Every country around the world reserves the prerogative to protect their national interest. So if the Foreign Investment Review Board find reasons to object to [the sale of GrainCorp to ADM], well, that’s part of our longstanding policy position on both sides of politics, and we are here in the end to look after the national interest," he said.
"We are very much open for business. I don’t know which way it will go, but I wouldn’t hold that out as the be-all and end-all."
