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Official News - May 2008

► Australia-Chile FTA negotiations concluded

Australia and Chile have concluded negotiations of a high-quality, comprehensive, WTO-plus free trade agreement.

On 27 May 2008, the Australian Minister for Trade, Mr Simon Crean, and the Chilean Foreign Minister, Mr Alejandro Foxley, concluded the Australia-Chile Free Trade Agreement (FTA) negotiations.

The FTA is high-quality and comprehensive, covering goods, services and investment. The commitments go beyond what each country has committed at the World Trade Organisation (WTO).

The Agreement reinforces the contribution of both countries to the multilateral trading system and serves as an excellent model for other APEC economies as they work towards deeper economic integration.

Key aspects of the Agreement include:
- tariffs will be eliminated on 97% of existing merchandise trade upon entry into force and 100% of existing merchandise trade in each direction by 2015;
- Chile and Australia have locked in their liberal services and investment regimes for each other – these are WTO GATS-plus commitments – and ensured automatic flow on of any future unilateral or bilateral liberalisation;
- suppliers, goods and services from each country have guaranteed non-discriminatory access to government procurement markets in the other, and
- transparent, high-standard protection has been locked in for intellectual property rights including patents, trademarks, geographical indications and copyright.

Two-way trade is currently more than AU$850 million a year and Australia invests US$3 billion in Chile.

► Appointment of Climate Change Special Envoy and Ambassador

The Australian Government has strengthened its international engagement on climate change by appointing a Special Envoy on Climate Change and an Ambassador for Climate Change.

Climate change is one of the greatest social, economic and environmental challenges of our time. The Australian Government has made addressing climate change a priority. It is committed to ensuring Australia meets its responsibilities in facing this global challenge. This includes a comprehensive approach to: reduce emissions in Australia in the short and long term; work with the international community to develop a global response that is effective and fair; and prepare for the unavoidable impacts of climate change.

Minister Wong has announced that Mr Howard Bamsey will be appointed Australia’s Special Envoy on Climate Change and Ms Jan Adams will be appointed Australia’s Ambassador for Climate Change.

These appointments reflect the Government’s determination to help shape a global solution on climate change.

International climate change negotiations will become more frequent and intense as the world follows the Bali Roadmap toward a new, long-term climate change agreement.

These appointments will enable Australia to ensure an appropriately high level of representation at these crucial negotiations. Mr Bamsey and Ms Adams have both demonstrated enormous capacity to navigate the complex issues of international climate change negotiations.

The Australian Government recognises that Australia has a responsibility, as a developed country, to take the lead in international action and discussions. These appointments will help deliver on that responsibility.



► Australia’s Response to the Sichuan Earthquake: China

Australia has responded to the earthquake in Sichuan Province, China with a $2 million emergency assistance package that includes rescue and recovery equipment and support for the Red Cross relief effort.

Australia is deeply saddened by the ongoing loss and suffering resulting from the earthquake in Sichuan Province, China. Australia extends its deepest condolences to China, in particular to the families and friends of the victims of this terrible tragedy. Australia has been impressed by the swift and large scale response initiated by the Chinese Government in extremely challenging circumstances.

Like many members of the international community, Australia has offered practical support and assistance to the Chinese people at this difficult time.
The Australian Government has contributed a total of $2 million in emergency assistance to victims of the Sichuan earthquake. On 23 May we delivered to the earthquake zone a $1 million package of rescue and recovery equipment (such as lifting and cutting equipment for collapsed buildings), plus further immediate relief supplies such as tents, generators, blankets, tarpaulins, jerry cans and water tanks.

This complemented Australia’s initial contribution, announced on 17 May, of $1 million to support emergency relief efforts, channelled through the International Federation of the Red Cross and delivered by the Red Cross Society of China. A number of State and Territory governments and large corporations have also contributed funds to the relief effort.

The Australian Government is pleased to be able to assist, in a practical way, the on-going efforts of the Chinese authorities and search and rescue teams on the ground. The Government will continue to liaise with its Chinese counterpart to determine how Australia can best assist.

► WTO Doha Round: Release of Revised Negotiating Texts

The release of revised negotiating texts on agriculture and industrial products is an important step forwards concluding the Round. All WTO Members must now engage constructively to keep the negotiations moving forward.

The WTO Doha Round took a step forward this week with the much-anticipated release of revised negotiating texts on agriculture and industrial products (non-agricultural market access or NAMA).

No country will be completely happy with the texts – for example on NAMA Australia would like a smaller gap between what is asked of developed and developing countries. The priority now is for all WTO Members to engage constructively and keep the negotiations moving forward, look forward to officials meeting very soon to discuss the texts in detail, as these discussions would pave the way for a Trade Ministers meeting in Geneva as soon as possible.

Further break-throughs in the Round are needed very soon for it to be concluded this year.

Australia considers a deal in 2008 is still achievable and would boost confidence in the global economy. An injection of political will is now needed to drive home a Doha deal.


► Australia Supporting the Commonwealth

The Australian Government supports the Commonwealth’s mandate of promoting the fundamental political principles of democracy, good governance and rule of law through its active involvement in the wide range of Commonwealth agencies and activities. Australia welcomes Pakistan’s re-admission to the Councils of the Commonwealth.

Australia has a long history of involvement in the Commonwealth, joining as a founding member in 1931, and actively participates in Commonwealth Heads of Government Meetings (CHOGM), including hosting CHOGM in 2002, in the Commonwealth Ministerial Action Group (CMAG) when a member (most recently in 2002-2003), and in the network of Commonwealth meetings covering issues including finance, law, education, health, youth affairs and human rights.

The Australian Government supports the Commonwealth’s mandate of promoting the fundamental political principles of democracy, good governance and rule of law through its active involvement in the wide range of Commonwealth agencies and activities.

The Australian Government welcomes the decision by the Commonwealth Ministerial Action Group (CMAG) to readmit Pakistan to the Councils of the Commonwealth immediately and unconditionally. The Group welcomed Pakistan’s progress on the separation of the offices of Head of State and Chief of Army Staff, the lifting of a state of emergency, the conduct of credible parliamentary elections, the removal of restrictions on private media and moves to reinforce the independence of the judiciary.

The Australian Government continues to urge the Interim Government in Fiji to work towards the restoration of democracy, human rights and the rule of law. Fiji was suspended from the Councils of the Commonwealth after the coup in December 2006. The suspension continues following the recent CMAG meeting. Australia shares the Commonwealth’s concern about the lack of genuine progress towards an election in Fiji, and about human rights abuses, including attacks on freedom of speech. These have to be redressed by the Interim Government before lifting the suspension could be contemplated. Australia welcomes the Commonwealth’s efforts to encourage political dialogue in Fiji.

The Australian Government hopes that Zimbabwe, which withdrew from the Commonwealth in 2003, will also work towards meeting the conditions set for its return. Zimbabwe’s return to the Commonwealth would require it to comply with Commonwealth values, principles and priorities including democracy, rule of law and respect for human rights as set out in the 1971 Declaration of Commonwealth Principles and subsequent Declarations, including the Harare Declaration.

Australia is the third largest financial contributor to the Commonwealth and actively supports its role in advancing the interests of developing countries and small states including by providing substantial financial support (over $10 million annually) to the Commonwealth Fund for Technical Cooperation – the Commonwealth’s main development arm – and as a financial contributor to the Commonwealth Joint Office for small states in New York to assist Commonwealth countries representation at the UN.


► International Security: Comprehensive Nuclear-Test-Ban Treaty (CTBT)

Visit of Executive Director, CTBT Organization Preparatory Commission to Australia provided an opportunity for discussions with Mr Smith on Australia’s renewed interest in nuclear disarmament and to publicly urge states to ratify the Treaty.

Australia is committed to progressing nuclear disarmament and non-proliferation. CTBT is a vital framework for achieving progress towards these goals. Entry-into-force of the CTBT is an immediate disarmament and non-proliferation priority. Australia takes all appropriate opportunities to clearly register the priority we attach to ratifying the CTBT.

Minister for Foreign Affairs made a renewed call for universal adherence of the CTBT, and in particular by the nine countries upon whose ratifications enter-into-force of the Treaty depends. These nine countries are the United States, China, Indonesia, the Democratic People's Republic of Korea, Egypt, Iran, Israel, Pakistan and India. In total, 178 countries have signed the CTBT and 144 have ratified.

Executive Director, CTBTO, Ambassador Toth toured Geoscience Australia, whose facilities played a significant role in supporting the CTBT Organization's International Monitoring System (IMS) efforts to monitor the 2006 North Korean nuclear tests. The IMS also contributes to early detection of tsunami activity. Australia and the Commission expect soon to settle an Agreement strengthening, inter alia, the tsunami warning system for Australia and the region.


► Nuclear Non-Proliferation Treaty (NPT): Outcome of 2008 Preparatory Committee (PrepCom)

Australia’s active participation in the second NPT PrepCom was recognised. NGOs were included in the Australian delegation. We called on nuclear weapon states to make deeper, faster, and irreversible reductions in their nuclear arsenals. In the lead up to the 2010 NPT Review Conference, we will be working closely with like-mindeds to narrow differences between states on the peaceful uses of nuclear technology, pace of the nuclear weapon states implementation of their disarmament commitments, and on building support for strengthening the NPT.

Australia’s active participation was recognised by other delegations and the strong NGO presence (including Australian NGOs).

On disarmament issues, the US and UK expressed concerns that the strategic environment remained an impediment to faster paced disarmament.

On proliferation issues, compliance challenges posed by Iran, the DPRK and recently, Syria, received heavy interest. Australia joined others in calling on Syria to cooperate fully with the IAEA.

On strengthening safeguards, the IAEA called for states without Comprehensive Safeguards Agreements or Additional Protocols (AP) to have these in place by the 2010 NPT Review Conference. Australia urged others to make the AP a condition of supply.

On peaceful uses of nuclear technology, Non-Aligned Movement countries stressed the inalienability of Article IV rights and regarded as premature the consideration of multinational fuel assurance proposals. Australia and like-mindeds stressed that Article IV rights were not unqualified but subject to NPT non-proliferation provisions.

The outlook for the 2010 Review Conference is clearly marked by the differences between the nuclear weapons states and the non-nuclear weapons states, with the non-compliance challenges posed by DPRK, Iran, and recently Syria, complicating the task of building momentum for a strengthened NPT.

► Burma: Response to Cyclone Nargis

Australia will provide $25 million in humanitarian assistance to the people of Burma affected by Cyclone Nargis. Australia remains concerned by the Burmese regime’s inadequate response to the cyclone and is urging the Burmese regime to allow access for humanitarian assistance.

Australia will provide $25 million (US$23.6 million) in humanitarian assistance to the people of Burma affected by Cyclone Nargis: $12.5 million will go to the UN Flash Appeal and $12.5 million will be provided through international agencies and NGOs with the ability to deliver assistance on the ground.

On 13 May the Prime Minister announced that a Royal Australian Air Force C 17 Globemaster aircraft had delivered 31 tonnes of humanitarian supplies to Rangoon airport for distribution to the affected areas.

Australia remains concerned by the Burmese regime’s inadequate response to the cyclone. Although there has been some progress, international humanitarian workers are still being denied visas and access to the Irrawaddy Delta. UN Secretary-General Ban Ki-moon has said Burma could face an outbreak of disease that could dwarf the current crisis.

Australia is urging the Burmese regime to allow access for humanitarian assistance, and we will continue to examine options for the provision of further Australian assistance.


► Political Violence in Lebanon

Australia remains deeply concerned by the ongoing political violence and tensions in Lebanon and the Government condemns any actions which undermine the legitimate government of Lebanon.

Australia remains deeply concerned by the ongoing political violence and tensions in Lebanon. We urge all parties to stop the violence and to find a political solution to the current tensions and call for all countries in the region to support the Arab League’s initiative to resume national dialogue aimed at electing the Lebanese President.

Australia condemns any actions which undermine the legitimate government of Lebanon. We have long supported Lebanon’s independence, sovereignty and integrity and call for the implementation of all relevant United Nations Security Council resolutions.

There are currently 3118 Australians registered with DFAT as being in Lebanon however, we estimate that there may be as many as 25 000 Australians in Lebanon.

The Australian Government is strongly urging Australians not to travel to Lebanon due to the highly volatile security and political situation. We are urging Australians in Lebanon to remain indoors in a safe location, away from windows, follow local advice and monitor the media for new security threats.

The Australian Government is not evacuating Australian citizens at this stage. Our travel advice reflects our assessment that the safest course of action at the moment is for Australians in Lebanon to remain indoors in a safe location and avoid unnecessary local travel.


► Zimbabwe: Elections

The Australian Government maintains that violence and intimidation must cease for the second round of Presidential voting in Zimbabwe to be free and fair. The campaign needs to be subject to international supervision and scrutiny, including by the media.

The Australian Government condemns the ongoing violence and human rights abuses by government youth militias and Zimbabwean security forces.

Violence and intimidation must stop for a second round of Presidential voting to be credible. Free and fair elections cannot be held in a climate of politically orchestrated fear and intimidation. We support calls for electoral observers and free access for media.

The international community, including Australia, stands ready to support Zimbabwe’s African neighbours in finding a peaceful solution to the current situation. Australia would be willing to participate as electoral observers in the presidential run-off if asked to do so.

Australia, in partnership with others in the international community, stands ready to re-engage and participate in a reconstruction effort with a Zimbabwe government that properly and fairly represents the democratic will of the Zimbabwean people and is committed to political and economic reform.

Australia is committed to intensifying humanitarian relief and human rights support for ordinary Zimbabweans through the Australian Fund for Zimbabwe which is expected to amount to $12 million in 2007-08.

The welfare of the Australian community in Zimbabwe remains a priority for the Australian Government. There are over 800 Australians registered in Zimbabwe, most of whom are in Harare.

► Australia’s commitment to advancing nuclear non-proliferation and disarmament

Australia is committed to working to advance nuclear non-proliferation and disarmament; using the upcoming Nuclear Non-Proliferation Treaty 2nd Preparatory Committee meeting in Geneva to work in partnership with other states to strengthen the Treaty.

The Australian Government is committed to a new, more active role in advancing nuclear non-proliferation and disarmament, especially in multilateral fora. Australia is determined to work in creative partnership with other states to strengthen the Nuclear Non-Proliferation Treaty (NPT), which is at the core of multilateral non-proliferation and disarmament efforts. In this regard, we chair the Vienna Group of Ten, a set of like-minded states committed to advancing non-proliferation and peaceful nuclear uses. Australia is also a member of the Seven Nation Initiative, a diverse group of states including nuclear and non-nuclear weapon states committed to reinforcing the NPT.

The NPT provides a key underpinning of national and international security. The current review cycle, leading to the 2010 Review Conference, is a crucial opportunity to reaffirm the NPT’s core contribution to international security and take forward its vision of a world free of nuclear weapons. The 2010 Review Conference must not repeat the disappointing experience of the 2005 Review Conference, which ended without agreement between states parties on means of strengthening the NPT.

Australia will use the 2008 NPT Preparatory Committee meeting (PrepCom), which began in Geneva on 28 April, to call on states with nuclear weapons to make greater progress toward disarmament, urge a greater global response to proliferation challenges, especially those presented by Iran and DPRK, and reaffirm our support for all NPT states’ rights to peaceful uses of nuclear energy in a manner consistent with the NPT.

Australia will also be calling for greater progress on other key disarmament and non-proliferation measures including the soonest possible entry into force of the Comprehensive Nuclear-Test-Ban Treaty and commencement of negotiations on a Fissile Material Cut-Off Treaty in the Conference on Disarmament.



► Australia-Republic of Korea Joint Non-Government FTA Study

A joint non-government study into the feasibility of a free trade agreement (FTA) between Australia and the Republic of Korea, released on 22 April, reveals both countries would gain from an FTA and is a helpful contribution to discussions on commencing FTA negotiations.

Welcome the key findings of a non-government study into the feasibility of a free trade agreement between Australia and the Republic of Korea.

The study emphasises the major opportunities an Australia-Korea FTA offers to further strengthen our highly complementary and growing bilateral trade and investment relationship, and deliver gains to both countries through closer economic integration.

The Republic of Korea is Australia’s third largest merchandise export market, and two-way trade was worth A$21 billion in 2006-07.

The report finds that an Australia-Korea FTA could boost Australia’s GDP by up to US$22.7 billion and Korea’s GDP by up to US$29.6 billion in the period 2007-2020.
Important to note the report’s finding that both countries would gain significantly from liberalised trade in services. Australian services exporters would benefit from greater access to the Korean market, while Korean consumers would benefit from improved access to more sophisticated and competitive services.

The report also emphasises the potential for liberalisation of investment to enhance bilateral investment flows, particularly greater Korean investment in Australia. As a non-government report, the Australian and Korean governments do not necessarily agree with or endorse every aspect of the report, but it is important to note it demonstrates that both countries would gain from an FTA.

In summary, the study report represents a helpful contribution to our discussions with Korea on commencing FTA negotiations. The report is available at: www.dfat.gov.au/geo/rok/fta/index.html

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