News Stories - 26 June 2009
Australia increases support for Trade in Developing Countries
$1.75 million to the WTO Doha Development Agenda Global Trust Fund to assist developing countries to take part in and benefit from the WTO Doha Round of multilateral trade negotiations. This is up from $1 million in 2007-08 and $500,000 the year before.
$750,000 to the WTO Standards and Trade Development Facility to help developing countries analyse and implement international standards on food safety and animal and plant health.
Australia’s contribution will help developing countries become active participants in, and reap the full benefits from, the multilateral trading system and the global economy.
Open trade is an essential ingredient to achieving faster economic development. It is also critical to economic recovery and future global prosperity. Therefore it is even more important during the global recession to ensure a successful conclusion to the Doha Round and to support international trade.
It is also crucial that the world resists protectionist tendencies and keeps markets open for trade and finance. World leaders made commitments to this end at the G-20 London Summit.
The contribution will encourage the WTO to work even more closely with our development partners in Asia and, in particular, the Pacific Islands, which face unique challenges because of their small size and remoteness from global markets.
Full media release available online: www.trademinister.gov.au/releases/2009/sc_090622_jmr_mcmullan_support.html
Growing political momentum in the Doha Round negotiations
WTO Members must take advantage of renewed political momentum in the Doha Round to conclude the negotiations as quickly as possible to stimulate the global economy.
The global economic crisis has made conclusion of the WTO Doha Round of multilateral trade negotiations all the more urgent. Political engagement on the Round has intensified following the Cairns Group Ministerial Meeting in Bali (7-9 June) and, most recently, the informal gathering of trade ministers hosted by Mr Crean at the OECD in Paris (25 June).
Key players committed to further engagement at high-level meetings, including the G8 Outreach Summit (8-10 July), the APEC MRT (21-22 July), and the G20 Leaders’ Summit (24-25 September). Importantly, trade ministers recognised we are approaching the “end-game” of the negotiations. Senior Officials will need to intensify the multilateral negotiations in Geneva to settle remaining differences.
Note that 80 per cent of the negotiations have been settled as the multilateral negotiations should be supported by focussed, constructive discussions between and among Members, to help them better understand the value of what is on the table.
News Stories - 18 June 2009
Pacific Islands Forum 4-7 August 2009
Australia is a founding member of the Pacific Islands Forum and is committed to the Forum’s objectives to enhance and stimulate economic growth, sustainable development, good governance and security for Pacific countries through regionalism.
Australia is pleased to be hosting the 40th Pacific Islands Forum in Cairns from 4-7 August 2009 at the meeting, Australia will assume the Chair of the Forum until the next annual Leaders’ Meeting.
Australia places a great deal of importance on developing its relations with countries in the Pacific region, consistent with the government’s Pacific engagement policy, and welcomes the opportunity to host the annual Leaders’ Meeting.
The Pacific Islands Forum provides the opportunity for the leaders of the Pacific to come together to strengthen regional cooperation and to address issues of collective concern.
Major issues likely to be discussed at this year’s Forum include building economic resilience in light of the Global Economic Crisis and its impact on the Pacific region:
Trade liberalisation and economic integration, in particular, agreement to commence negotiation on Pacific Agreement on Closer Economic Relations (PACER Plus); climate change; strengthening development in fisheries; and the Regional Assistance Mission to Solomon Islands (RAMSI).
Through its Pacific Plan 2005, the Forum aims to “…enhance and stimulate economic growth, sustainable development, good governance and security for Pacific countries through regionalism”. The Leaders’ Meeting will review progress towards meeting the objectives of the Pacific Plan.
In particular in the priority areas identified at the 2008 Pacific Islands Forum which include food security, energy, transport, land, health and governance. The meeting will be chaired by the Prime Minister and will be attended by the leaders of the Forum member countries, as well as Observers and Dialogue Partners.
There is also a Post Forum Dialogue which will give the Pacific Island Forum leaders an opportunity to engage with and convey collective views on international issues to Dialogue participants, which include major development partners.
Australia is working with other countries to re-invigorate the Dialogue and would welcome Ministerial representation from Dialogue Partners. Australia is a founding member of the Pacific Islands Forum.
UN Security Council action in response to the DPRK’s nuclear test
Australia welcomes the UN Security Council’s unanimous adoption of Resolution 1874 condemning the DPRK’s 25 May nuclear test. Australia will fully implement new sanctions mandated by UNSCR 1874 and will work to ensure all members of the international community implement fully sanctions under the earlier UNSC Resolution 1718 and now also 1874.
Australia welcomes the UN Security Council’s unanimous adoption on 12 June of UNSC Resolution 1874 which condemns in the strongest possible terms the DPRK’s 25 May nuclear test and strengthens UN sanctions against the DPRK. The resolution sends a clear and united signal from the international community that the DPRK's pursuit of nuclear weapons is unacceptable.
At the same time, it also keeps the door open for the DPRK to return to the Six Party Talks. Resolution 1874 contains new measures building on those in Resolution 1718, adopted after the DPRK’s first nuclear test in 2006. It includes restrictions on financial transactions, an expanded prohibition on trade in arms and related matériel, and provisions for the inspection of vessels suspected of transporting sanctioned goods.
Australia has fully implemented the sanctions under Resolution 1718 and (in response to the DPRK’s 2006 nuclear test) imposed strong autonomous measures, including a visa ban on DPRK citizens, a port-entry ban on DPRK-flagged and the suspension of bilateral aid.
Australia will fully implement new sanctions mandated by UNSCR 1874 and will work to ensure all members of the international community implement fully sanctions under Resolutions 1718 and 1874. Australia will continue to work with Six-Party members to bring the DPRK back to constructive dialogue in the Six-Party Talks.
Australia will also continue to engage the DPRK directly, during a visit to Pyongyang in the week of 8 June, our non-resident Ambassador delivered a clear message that the DPRK’s security and prosperity can only be secured through constructive relations with its neighbours and the broader international community, and not with nuclear weapons.
Australia believes the world does not need more nuclear weapons and that the DPRK’s actions are a serious threat to the Nuclear Non-Proliferation Treaty. A stable strategic environment, without emerging nuclear challenges, is a vital element in the confidence needed to achieve progress in nuclear disarmament.
News Stories - 12 June 2009
Cairns Group Ministerial Meetings, Bali, 7-9 June
The Cairns Group, a coalition of 19 agricultural exporting countries, met at Ministerial level in Bali on 7-9 June. The meeting provided a strong expression of political commitment to conclude the WTO Doha Round negotiations. The United States Trade Representative (Ron Kirk) and the new Indian Commerce Minister (Anand Sharma) – attending the meeting as Special Guests - committed to re-engage intensively before the northern summer break.
The Cairns Group is a coalition of 19 agricultural exporting countries which account for over 25 per cent of the world’s agricultural exports.
Made up of developed and developing countries across five continents, the Group is committed to achieving free and fair trade in agriculture that provides real and sustainable benefits for the developing world.
The Cairns Group is an excellent example of successful coalition building by acting collectively it has had more influence and impact on the agriculture negotiations in the WTO than any individual members could have had independently.
The Cairns Group has played a central role in urging agricultural reform in the WTO Doha Round negotiations and many of its proposals and ideas are now at the centre of the negotiations. Ministers from the Cairns Group met on 7-9 June in Bali to explore how to reinvigorate the Doha Round negotiation, and the meeting was hosted by Indonesia and chaired by Australia.
A number of Special Guests attended, including the United States Trade Representative (Ron Kirk), the new Indian Commerce Minister (Anand Sharma) and WTO Director-General Pascal Lamy.
In a communiqué issued after the meeting, Cairns Group Ministers called for a transparent and inclusive process of engagement on the WTO Doha Round negotiations at both the political and technical levels: with senior negotiators reconvening in Geneva as soon as possible to map out a clear path towards the conclusion of the negotiations, and starting down that path before the European summer break.
USTR Kirk and Indian Commerce Minister Sharma fully endorsed this approach. Members of the Cairns Group are: Argentina, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Pakistan, Paraguay, Peru, the Philippines, South Africa, Thailand and Uruguay.
Australia-PNG Ministerial Forum
The 19th Australia-PNG Ministerial Forum highlighted the importance Australia places on its bilateral relationship with Papua New Guinea (PNG). The Forum made progress on shared development, environment and other priorities.
Foreign Minister Stephen Smith and his PNG counterpart Sam Abal co-chaired the 19th Australia-Papua New Guinea Ministerial Forum in Brisbane on 9-10 June – possibly the largest bilateral meeting ever held in Australia.
The bilateral Forum demonstrated the importance that the Australia attaches to its relationship with Papua New Guinea. Eight Australian Ministers and three Parliamentary Secretaries and 17 PNG Ministers participated in the Forum, the Forum also provided an opportunity for close engagement between government delegates and business representatives on commercial and trade issues.
The Forum took forward the comprehensive outcomes of last year's Forum held in Madang, and built on the goodwill generated by PNG Prime Minister Sir Michael Somare's recent visit to Australia [see KMB 14/09, CE599531L]. Key outcomes from the Forum included endorsement of the first five Implementation Schedules to the Partnership for Development and three new priority areas; terms of reference for a review of the Development Cooperation Treaty; and revised arrangements for the Strongim Gavman Program.
The signing of a Memorandum of Understanding for cooperation on sustainable forest management and a Work Plan to advance cooperation under the Forest Carbon Partnership.
Announcements of $1 million in funding to the Kokoda Development Program (for basic services for local communities) and $250,000 to the Kokoda Track Authority (for upgrades to trekking infrastructure), announcements that the first Fuzzy Wuzzy Angel commemorative medallion would be presented on PNG’s Remembrance Day (23 July).
Other important issues discussed included the impact of the Global Economic Crisis; PACER Plus and the Liquefied Natural Gas Project; defence and policing and Torres Strait cooperation. The Communiqué is available on the DFAT website.
News Stories - 5 June 2009
Attacks on Indian students in Australia
Australia takes very seriously its reputation as a safe destination for international students seeking high quality education. Federal and state and governments have condemned the recent attacks on young Indians and are working closely together to ensure that the perpetrators of these crimes are brought to justice and that relevant agencies are responding appropriately to protect all members of the Australian community from such attacks.
On 1 June, Prime Minister Rudd deplored and condemned the recent attacks on young Indians studying or working in Australia. He said that he had called Indian Prime Minister Singh on 29 May to advise that the Government was working closely with state governments to ensure that the perpetrators of these crimes are brought to justice and that government agencies are responding to these crimes to protect all students and others in our community.
On 2 June, Mr Smith made a statement in Parliament underlining the Government’s condemnation of the attacks on Indian students and announcing the establishment of a taskforce to coordinate the Australian Government’s response.
Australia’s High Commissioner to India condemned the attacks and reiterated that both federal and state governments and police authorities were taking action to ensure that such attacks do not re-occur. Mr McCarthy stated that Australia is generally a very safe country, with a proud record as a multicultural society of over 200 different nationalities.
On 2 June, Victorian State Premier John Brumby condemned racially motivated crimes; said that the perpetrators of attacks would be brought to justice; and announced an intention to amend the Victoria Sentencing Act to take account of “hate crime”.
On 30 and 31 May, Victoria Police conducted a crack-down in Melbourne’s western suburbs involving over 75 police and resulting in 7 arrests for offences, including burglary and theft. Victoria Police established a community reference group to facilitate communication on safety issues with the Indian community in Victoria. The community reference group has established a hotline to provide support, information and advice to Indian students who are the victims of crime.
The hotline is staffed by volunteers who are fluent in English and Hindi and the volunteers have received training from Victoria Police.
Victoria Police advised that the majority of attacks against international students are opportunistic and not generally racially motivated. Many of the attacks have occurred late at night and are concentrated along a particular western suburbs train line.
Victoria University is currently conducting an initiative in five major Indian cities to brief Indian students prior to their departure for Australia. Victoria Police and the Metropolitan Fire Brigade are participating in the briefings which include crime prevention, the role of Victoria Police, international student support mechanisms and tips on Australian society and culture.
Deputy Prime Minister Gillard announced on 28 May that she would convene a roundtable to discuss issues with international students including safety issues. NSW Premier Nathan Rees held a meeting with representatives of the Indian community on 5 June. The Victorian Premier announced that he would lead a Harmony Walk on 12 July to bring together Victorian communities and recognise and celebrate the enormous contribution of ethnic, cultural and religious communities to the state.
H1N1 Swine Influenza outbreak
Australia has introduced robust measures to respond to the spread of the H1N1 virus. There are still only a small number of confirmed cases in Australia, with relatively mild symptoms. There is no need to restrict travel to Australia.
The H1N1 virus has now been confirmed in many parts of the world and the global response is focusing on minimising the impact of the virus.
While official alert levels have been raised in Australia, there are still only a relatively small number of confirmed cases, and the symptoms people are experiencing are relatively mild.
Neither the Australian Government nor the World Health Organisation (WHO) recommend restricting travel as a result of the H1N1 virus. Australia remains open for business and continues to welcome travellers, students, business visitors and officials from around the world.
Industry reports to date indicate there has been no immediate change to airline or accommodation bookings. Australia is one of the best prepared countries in the world for a pandemic and has robust plans in place to deal with the influenza outbreaks and prevent transmission in the community.
Australian authorities have installed thermal scanners at international airports to rapidly identify cases, isolate them and provide appropriate medical care to prevent the introduction of the infection from areas where it is spreading overseas.
Australia has one of the largest stockpiles of anti-viral medication in the world which have been developed to support the health response and control of pandemic influenza in the community. There is no intention to deploy the stockpile as there is no influenza outbreak in Australia and these drugs are readily available through pharmacists.
A customised H1N1 Influenza 09 vaccine is being developed and is likely to be available from August 2009. The Australian Government is continuing to review the public health response and stands ready to escalate the level of response if required.
Australia has a small number of H1N1 Influenza cases and at least one human-to-human transmission, in response, the government is taking active measures to contain the spread of the virus within Australia such as: border protection; seeking out and caring for people with this influenza infection; finding and protecting their contacts and where needed, community interventions such as temporary closures of schools.
Australia is providing an additional $3 million to the WHO to respond to the current international outbreak of H1N1 Influenza 2009.
More information on these measures is available at www.health.gov.au
New study shows the benefits of trade, perils of protectionism
Australia has reaffirmed its commitment to a more liberal global trading system as a new study shows that the Australian economy is more resilient and competitive after two decades of trade liberalisation.
The Centre for International Economics (CIE) study “Benefits of Trade and Trade Liberalisation” was commissioned by DFAT to measure the impact of trade liberalisation on the Australian economy over the past 20 years.
The study found that lower tariffs and import quotas had helped to boost GDP by between 2.5 and 3.5 per cent over the period which equated to a rise in Gross National Income of 1.8 per cent; or contributing A$2,700 – A$3,900 per annum to the real income of the average family (the higher figure takes into account dynamic productivity and employment factors).
Australia implemented a series of unilateral tariff reductions and eliminated other trade protection measures between 1973 and the late 1990s with the average rate of protection falling from 25 per cent in 1981-82 to five per cent in 2001-02. Using four different econometric models to measure the impact of the cuts, the study shows that, as protection was reduced, exports rose as a percentage of GDP particularly in sectors where Australia had a comparative advantage such as capital-intensive and knowledge-intensive machinery and equipment exports including passenger motor vehicles.
It found that the reductions in industry assistance had produced a far more dynamic manufacturing sector which, between 1988 and 2008, had increased export volumes by more than a factor of four.
Launching the study on 1 June, Minister for Trade Simon Crean said it was further evidence that resorting to protectionism was the wrong way to go. “We are determined to fight protectionism at home and abroad,” he said.
The study found that an increase in protectionism across the global economy would deepen the recession and delay recovery, and it modelled the impact of a modest 10 per cent rise in average global tariffs (a rise of only 0.5-1 percentage points in average tariffs) finding that such a rise would reduce global GDP by 0.2 per cent of A$110 billion.
A copy of the report is available on the DFAT website at http://www.dfat.gov.au/trade
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