News Stories – 30 October 2008
Launch of Australia-European Union Partnership Framework in Paris on 29 October 2008.
The Australia-European Union (EU) Partnership Framework is the principal vehicle for taking forward the new era of creative, broad-based engagement between Australia and the EU announced by the Prime Minister, Mr Rudd, and European Commission (EC) President Barroso in Brussels in April.
The Foreign Minister Mr Smith and his French counterpart Mr Bernard Kouchner launched the Australia-EU Partnership Framework in Paris on 29 October.
The launch was the centrepiece of the regular Australia-EU Presidency Consultations which were hosted by France which currently holds the EU’s rotating Presidency (July-December 2008).
It fulfils a commitment in the Joint Statement by Prime Minister Rudd and EC President Barroso in Brussels on 2 April to develop a Framework to provide a coherent policy underpinning for an enhanced relationship.
Other Joint Statement commitments that have been met since the announcement in April were the Australia-EU Passenger Name Record Agreement signed in June 2008 and the commencement of Comprehensive Air Services negotiations on 27 November 2008.
The Partnership Framework is an action plan for cooperation between Australia and the EU over a 12-18 month timeframe.
It includes a shared commitment
- to support multilateral institutions, in particular the UN, including in counter-terrorism and non-proliferation
- to work together in the Asia-Pacific region and to improve donor coordination with the EU, the world’s largest aid donor
- to work towards concluding the Doha Round and further developing the trade relationship with the EU.
- to seek opportunities to cooperate on climate change including in the development of low emission technologies such as carbon capture and storage
developing an innovation, science and research partnership with the EU.
The Framework provides a basis for substantive exchanges at future Australia-EU Ministerial dialogues.
It brings together a complex relationship encompassing many bilateral instruments and official dialogues. It will enable ministers to review progress on action items and give political impetus to particular activities or aspects of the relationship.
International Commission on Nuclear Non-proliferation and Disarmament
The Commission’s successful inaugural meeting is practical progress on Australia’s strong commitment to strengthening the global nuclear non-proliferation and disarmament regime.
The Commission’s inaugural meeting was held in Sydney from 19-21 October.
The Commissioners are fifteen senior statespersons from all the nuclear weapon states and a geopolitically diverse set of other countries.
The Australian and Japanese governments are supporting the initiative through DFAT and Japan’s MFA, but the Commissioners are independent.
At the meeting Commissioners’ views on the full range of topics relevant to the Commission’s mandate were heard, such as nuclear non-proliferation, disarmament and civil nuclear energy.
The Sydney meeting also agreed on the Commission’s work plan:
- it will meet around six times over the next two years at approximately three monthly intervals
- the second meeting likely to be in Washington in mid-February to enable early contact with the new US Administration
- the Commissioners would like their third meeting to be in Moscow.
The Commission decided to produce two reports. The major report will be published in late 2009 or early 2010 in time to held shape a global consensus in the lead-up to the 2010 Nuclear Non-Proliferation Treaty (NPT) Review Conference. A supplementary report is planned for around mid-2010.
The Commission agreed that its products should not only be technically sound but also compelling for political decision makers and those who influence them
political focus is a means for the Commission to add value to previous work on these subjects e.g. the 1996 Canberra Commission, the 1999 Tokyo Forum, the 2006 WMD (Blix) Commission.
The Government is very encouraged by the successful start to the Commission’s work.
There was clear consensus among Commissioners that it is time for progress on the nuclear non-proliferation and disarmament agenda, with the ultimate objective of a world free of nuclear weapons.
International talks confirm need for climate change action despite global financial crisis
The Australian Government is committed to addressing climate change and the global financial crisis does not justify postponing action on climate change.
The United Nations’ sponsored talks on Climate Change in Poland on 13-14 October, attended by the Minister for Climate Change and Water, Senator Penny Wong, confirmed that action on climate change should not be postponed because of the global financial crisis.
in tackling both the economic and climate change crises, collaborative action can be shaped in a way that creates benefits for all countries around the globe.
The Polish Chair’s summary of the talks reflected this position, which was broadly held by most governments in attendance including Australia.
Minister Wong also took part in a number of important bilateral meetings to discuss the post-2012 international climate change negotiations and Australia’s domestic climate change measures. Minister Wong reassured her counterparts that Australia is committed to dealing with climate change domestically while facing the global financial crisis.
Global greenhouse emissions remain above those assumed in most emissions projections and are likely to remain so, despite the global financial crisis. Global action on climate change remains an international priority.
The Australian Government is focussed on reducing Australia’s greenhouse gas emissions at the lowest cost across its economy. To help achieve this, it is designing a Carbon Pollution Reduction Scheme (CPRS) that is economically responsible, fair and internationally consistent.
Government is aware of the broader economic implications of the CPRS in these times of uncertainty. The scheme will include many elements that will support households and industry in adjusting to the introduction of a carbon price, and assist a smooth transition for the economy.
Economic modelling by the Garnaut Review and others overwhelmingly finds that incentive-based policy approaches to reducing emissions, such as the CPRS, are consistent with continuing trend economic growth in Australia and the world as a whole.
Australian industry groups are seeking business and investment certainty in relation to the CPRS.
Many business groups are of the view that making the introduction of the CPRS dependent on international developments is a recipe for on-going uncertainty and investment risk.
By providing a detailed design for Australia’s CPRS by the end of the year, the Australian Government is helping to provide this certainty.
News Stories - 23 October
Australia’s response to the Global Financial Crisis
The global financial system is experiencing its most significant upheaval since the Great Depression. Australia is not immune from these developments, but we are in a much better position to weather the storm than many other countries. The Government has implemented a range of measures to bolster the Australian economy.
The global financial system is experiencing some of the most challenging conditions ever witnessed. The International Monetary Fund (IMF) now expects growth of less than 1 per cent in six of the world’s largest developed economies next year.
While Australia is not immune from these developments, Australia is in a much better position to weather the storm than many countries, in part due to the resilience of the banking system and the strength of our prudential and other regulatory regimes.
The Australian Government has acted decisively to protect the Australian economy from the crisis including by guaranteeing all deposits with Australian deposit-taking institutions; and providing guarantees for banks’ wholesale term funding.
On 14 October, the Government also introduced a A$10.4 billion Economic Security Strategy to stimulate the Australian economy, with the main measures including A$4.8 billion in payments to Australia’s four million pensioners, carers and seniors; A$3.9 billion in support payments to around two million low and middle income Australian families; and a A$1.5 billion to help first home buyers to purchase a home.
Australia is advocating reforms to the regulation of international financial markets to rebuild confidence and prevent further crises from occurring.
In his address to the UN General Assembly in September, the Prime Minister set out a five-point program of reforms, including Systemically-important financial institutions – not just commercial banks – should be licensed to operate in major economies only under the condition that they make full disclosure and analysis of balance sheet and off-balance sheet exposures.
The central bank in each country should have clear responsibility for financial stability; the Basel framework on capital measurement and standards should be changed to ensure banks and other financial institutions build up capital in good times as a buffer for financial crises.
In other words, supervisory frameworks need to be counter-cyclical, not pro-cyclical; the Basel framework should also be changed to ensure financial institutions have clear internal incentives to promote responsible behaviour and financial stability.
Regulators should set high capital requirements for financial firms that have executive remuneration packages that reward short-term returns or excessive risk taking; supervisory systems should be compatible with financial stability. Accounting rules used to evaluate risk should take a more medium-term perspective and not encourage institutions to think that risk is low just because current asset prices are high; and the IMF should be given a strengthened mandate for prudential analysis.
The IMF and the Financial Stability Forum should provide early warning of vulnerabilities and provide advice on remedial policies.
Additional Australian sanctions on Iran
The Australian Government has a strong commitment to nuclear non-proliferation. In response to Iranian non-compliance with UN Security Council resolutions, the Government has decided to impose new financial and travel sanctions on Iran.
In response to on-going Iranian non-compliance with UN Security Council (UNSC) resolutions, and given the Government’s strong commitment to nuclear non-proliferation, the Government has now decided to impose new financial and travel sanctions effective from 15 October.
These target 20 Iranian persons and 18 organisations which contribute to Iran’s proliferation activities.
These measures support UNSC resolutions and are consistent with action recently taken by the European Union.
The new measures are not intended to prevent legitimate Australian trade with Iran.
The Government will implement vigorously the UNSC’s call for all states to be vigilant about providing financial support for trade with Iran, to avoid such support contributing to Iran’s proliferation sensitive activities.
To this end, Australia will not provide new financial support for trade with Iran under Australian trade promotion and trade finance programs.
These measures demonstrate clearly the Australian Government’s commitment to international efforts to address Iran’s nuclear program.
The Government, together with the international community, will continue to engage with Iran to urge it to suspend uranium enrichment as required by UNSC resolutions.
Further Strengthening of the Australia-Tonga Relationship
The recent establishment of the Kingdom of Tonga High Commission in Canberra marks a further expansion of Australia’s strong bilateral relations with Tonga.
The new High Commission will build further upon Australian cooperation with the island nations of the Pacific.
Tonga joins Papua New Guinea, Samoa, Solomon Islands and Fiji in having diplomatic representation in Canberra.
Australia and Tonga have long enjoyed a close relationship. There are approximately 7500 Tongan-born people in Australia, many of whom have made their mark in the arts, academia, business and sports.
Australia is committed to assisting in Tonga’s long term development
total Australian Overseas Development Assistance to Tonga for 2008-09 is around A$19 million. Of this amount, A$13 million is allocated to bilateral programs in scholarships, health, economic and public sector management, reconstruction, and community development.
Australia welcomes Tonga’s commitment to constitutional and political reform that will lead, in the words of Prime Minister Feleti Sevele, ‘to greater democratisation’ of the Tongan political system.
Australia looks forward to a further strengthening of relations with Tonga under a Pacific Partnership for Development, which is expected to be finalised in early 2009.
Australia also welcomes Tonga’s participation in the Pacific Seasonal Worker Pilot Scheme, which will see Pacific workers benefit from the income, experience and training received through the pilot scheme.
Australians and Tongans continue to work closely together in regional fora, particularly the Pacific Islands Forum, as members of the Regional Assistance Mission to Solomon Islands, and the Ministerial Contact Group for Fiji.
News Stories 16 October 2008
World Economic Forum (WEF) Global Competitiveness Report 2008-09
The Australian Government welcomes the WEF’s finding that Australia ranks fourth in the world for the soundness of its banks. The WEF’s 2008-09 Global Competitiveness Report also found that the Australia’s economy was the 18th most competitive in the world.
The WEF released its annual Global Competitiveness Report in Geneva on 8 October.
The report is a timely reminder of the underlying strength of the Australian economy and its institutions.
Australia’s economy was ranked the 18th most competitive in the world, up from 19th in 2007-08. According to the WEF, Australia ‘draws its strongest competitive advantages from the excellent functioning of its goods, labour and financial markets’.
The report is based on data collected prior to the recent escalation in the financial crisis, but it confirms the strong position of Australian banks and the sound regulation of Australia’s financial systems
The WEF ranks Australia: fourth in the world for the soundness of its banks behind Canada, Sweden and Luxembourg; third in the world for the regulation of its securities exchanges after Sweden and Denmark; and third in the world for the strength of its auditing and reporting standards after Hong Kong and Austria.
Australia also ranked first in terms of: the proportion of students enrolled in secondary education; the number of procedures required to start a business; and the low amount of time required to start a business.
The Philippines-Australia Ministerial Meeting
The Philippines-Australia Ministerial Meeting, held in Manila from 8-9 October, underlined Australia’s significant interests in the Philippines covering defence, counter-terrorism and development, as well as increasing activity in trade and investment, particularly mining.
Mr Smith and Mr Crean attended the second Philippines-Australia Ministerial Meeting (PAMM) held in Manila on 8-9 October.
The visit underlined Australia’s significant interests in an important regional democracy. Resolution of the conflict in Mindanao is important to regional security. The Philippines is one of our closest partners in combating terrorism in the region, based on the presence of the Abu Sayyaf Group and members of Jemaah Islamiyah in the southern Philippines.
Bilateral development assistance now stands at almost $110 million
approximately 130 Armed Forces of the Philippines personnel are trained in Australia on an annual basis.
Australia also has growing trade and investment interests in the Philippines
some 12 Australian mining companies have interests in the Philippines’ rich mineral and energy deposits.
The recently concluded ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) negotiations offer a real opportunity to boost a currently modest bilateral trade relationship, of $2.5 billion per annum (in goods and services).
Key outcomes from the PAMM were:
- the Philippines signalling that a bilateral Status of Visiting Forces Agreement should be ratified shortly
- Australia announcing a contribution of $100 million over 5 years to improve roads in Mindanao and the Visayas, as well as $13 million for a Muslim and Indigenous People’s Education Facility
Both countries agreeing to strengthen cooperation in education and technical and vocational training. Both countries agreed to invigorate efforts to strengthen commercial links, including in the mining sector, drawing on the world-class reputation of Australian mining companies. Mr Smith and Mr Crean also held a very productive meeting with President Arroyo.
The next PAMM will be held in Australia in 2010.
Malaysia-Australia Free Trade Agreement.
Mr Crean and the Malaysian Minister for Industry and Trade, Mr Muhyiddin Yassin, have agreed to resume the Malaysia-Australia FTA (MAFTA) negotiations.
Mr Crean attended the 14th Australia Malaysia Joint Trade Committee meeting held in Kuala Lumpur on 7 October, where he and his Malaysian counterpart, Mr Muhyiddin, agreed to resume negotiations on the Malaysia-Australia FTA (MAFTA) they instructed officials to undertake preparatory official talks in November 2008.
MAFTA negotiations were launched in April 2005. Australia and Malaysia agreed to put MAFTA negotiations on hold in 2007 to focus on concluding the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) negotiations.
AANZFTA negotiations were concluded on 28 August 2008.
Both Ministers agreed that both countries should work expeditiously towards the conclusion of MAFTA, which will have mutually beneficial outcomes
they agreed that MAFTA should be AANZFTA-plus, building on AANZFTA outcomes to further improve market access.
Malaysia is Australia’s eleventh largest trading partner and third largest ASEAN trading partner, with two-way trade in goods and services worth $12.8 billion. Australian investment in Malaysia was valued at $3 billion at the end of 2007
News Stories – 10 October 2008
eVisitor visa to strengthen Australia-EU relations
The new eVisitor online short-stay visa service for EU nationals will be launched on October 27 making it much easier for nationals of all EU member states to enter Australia.
The implementation of eVisitor is part of the EU partnership framework launched by the Foreign Minister.
The eVisitor online service will be introduced on 27 October 2008.
This service is the culmination of Australia’s reforms to deliver reciprocal short-term entry arrangements for European Union (EU) nationals visiting Australia as tourists or for business purposes.
The eVisitor service will further enhance the convenience and speed of online applications to visit Australia.
There has been a steady growth in applications from the EU since the 2007 abolition of tourist visa application charges for EU nationals.
eVisitor is free of charge and gives travellers the benefit of a simple online application process with the majority of applications being auto-granted. It offers multiple entry to Australia for a 12 month period, for stays of up to three months on each occasion.
It uses technological advances to enhance security and immigration risk screening.
Simplifying entry arrangements for the more than a million people from the EU visiting Australia each year enhances cultural links, encourages tourism growth and facilitates business relationships with Australia’s largest trade partner.
All EU member states currently provide Australian citizens with visa-free access.
The EU countries that will be included in the eVisitor system will be; Austria, Belgium, Bulgaria, Cyrpus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, UK.
eVisitor will also be available to citizens from: Andorra, Iceland, Liechtenstein, Monaco, Norway, San Marino, Switzerland and the Vatican City (Holy See).
The eVisitor service will be available through the Department of Immigration and Citizenship (DIAC) website at www.immi.gov.au/e_visa/visitors.htm
Implementing the eVisitor is an action item for Australia under the EU Partnership Framework launched by the Foreign Minister.
Australia will upgrade its involvement in multilateral efforts to enhance the interfaith dialogue.
Our full participation in the Ministerial Meeting on Interfaith Dialogue and Cooperation for Peace (MMIDCP) will further strengthen Australia’s contribution in this important promotion of tolerance and understanding of different cultures and religions.
During his visit to the opening of the 63rd Session of the United Nations General Assembly in New York (21 to 26 September), the Minister for Foreign Affairs attended the Third Ministerial Meeting on Interfaith Dialogue and Cooperation for Peace, chaired by the Foreign Minister of the Philippines.
Australia is currently an observer in this process.
At the meeting, Mr Smith announced that Australia proposed to upgrade its participation in the Dialogue to full member status. Our full participation will further strengthen Australia’s contribution in this important promotion of tolerance and understanding of different cultures and religions.
Australia hopes to attend the next meeting, to be held in the margins of UNGA64 next year, as a fully participating member.
Australia is already an active member of other multilateral and regional efforts to promote tolerance and understanding, including its membership of the Alliance of Civilizations, and co-sponsorship of the Regional Interfaith Dialogue with Indonesia, New Zealand and the Philippines.
News Stories – 3 October 2008
Australia’s engagement with Africa
The Australian Government is committed to broadening and deepening our engagement with Africa.
Africa was a particular focus of Mr Smith’s visit to New York for the opening of the 63rd session of the United Nations General Assembly (UNGA)
Mr Smith represented Australia at the High-Level Meeting on African Development Needs and also met with a number of African counterparts.
The Australian Government is committed to broadening and deepening our engagement with Africa. We want to partner with Africa to make a contribution to development and security, and to tackle global challenges such as food security and climate change.
Although Africa still faces many enormous challenges in meeting its development goals, Australia is encouraged by the recent progress so many countries across Africa have made towards their development objectives
with improved internal stability and governance in many African nations
and average annual economic growth rates exceeding five per cent in recent years.
Australia wants to be part of the drive to accelerate progress towards the Millennium Developments Goals in Africa, playing a role concentrating on our areas of comparative advantage.
Focussing on such areas as food security, maternal and child health, water and sanitation, scholarships, training and technical assistance.
The Government increased development assistance to Africa by 23 per cent in this year’s budget, with the program set to grow as we progress towards the goal of overseas aid reaching 0.5 per cent of GDP by 2015.
We are helping in practical ways through the provision of over $115 million in development assistance to Africa this financial year.
Humanitarian assistance has always been an important part of our aid to Africa
on 22 September 2008, Mr Smith announced that Australia will provide $10 million in assistance to Ethiopia to provide emergency food supplies and also to build longer term, community level resistance to the impacts of drought and climate change.
Australia is enhancing our support to strengthen peace and security on the continent, including the UN-African Union mission in Darfur, and support for UN initiatives to build conflict prevention capacity in the African Union.
Australia’s commercial relationships in Africa are growing bilateral trade has steadily increases over the past decade.
Australian companies are playing a leading role in the development of the continent’s natural resources, particularly in mining.
Australian mining companies have investments in Africa estimated at around $15 billion, with many significant projects in the pipeline.
Australia also wants to work with African states to achieve a more liberalised international trading system and national capacities to benefit from it.
We are building on a platform of existing people-to-people links, including significant numbers of African students in Australia, and African families who have found a welcoming home in Australia as refugees.
Australia is determined to play its part in tackling Africa’s problems and helping to unlock its enormous potential.
Australia’s possible participation in a Trans-Pacific Free Trade Agreement
Australia is considering participating in an expanded P4 Free Trade Agreement that could strengthen regional economic integration. The Government will first consult with stakeholders in assessing the costs and benefits for Australia.
Australia’s preliminary view is that the existing P4 Agreement (Brunei, New Zealand, Singapore, Chile) could provide a comprehensive building block for an expanded Trans-Pacific FTA.
The P4’s 20 chapters and relevant Annexes could make it a viable option for facilitating further trade development in the Asia-Pacific.
The current negotiations between P4 countries and the United States on financial services and investment could result in the Agreement having even wider coverage.
The recent announcement of the United States’ involvement is a welcome indication to Australia that the P4 Agreement could provide a basis for future regional economic integration, as are the early indications that Vietnam and Peru are considering possible participation.
Australia will make a decision on whether to participate in the first round of negotiations in March 2009 only after consulting with interested stakeholders through a public consultation process that will involve meetings with key stakeholders and a call for public submissions.
Australia’s participation in a Trans-Pacific Free Trade Agreement has already been recommended by The Review of Export Policies and Programs (the Mortimer Review) commissioned by the Government and released on 22 September 2008.
The Review recommends participation as a basis for negotiating an even broader Asia-Pacific regional trade agreement.
The Government will take into account the Review’s recommendations but is yet to formally respond to the Review. It will do so in late November.
Australia is committed to strengthening its commercial ties in the Asia Pacific region. Stronger regional economic integration could lead to improved trade liberalisation and harmonisation and assist in moving towards achieving a multilateral outcome.
The Asia Pacific region has a faster growth rate than the world average and accounts for nearly 60 per cent of world GDP.
Exports to P4 countries have grown over the past five years and now represent 9.8 per cent of our total exports.
Trade with the P4 countries and the United States amounts to more than 20 per cent of Australia’s total two-way goods and services trade.
IMF expresses confidence in Australia’s economic resilience and banking system
In its annual report on Australia’s economy, the International Monetary Fund (IMF) has expressed confidence in Australia’s ability to weather the global economic downturn and contain inflationary pressures.
The IMF released its annual Article IV Report on Australia on 23 September.
IMF directors commended the Australian authorities on their “impressive economic management in the fiscal, monetary and structural areas which had spurred a sustained and long-lasting economic expansion.”
The IMF Executive Board considered that Australia’s banking system remained resilient, with stable profits, high capitalisation and few non-performing loans. This was evident in stress tests undertaken by the IMF and presented in their report which showed that Australian banks were able to absorb ‘extreme’ shocks.
The directors also said that the “sound macroeconomic framework should permit Australia to weather the global downturn and contain inflationary pressures.”
It also welcomed the government’s ambitious reform agenda which should enhance the flexibility of the economy, lift productivity and labour force participation.
While noting that wage and price developments would require careful monitoring, the IMF welcomed the continued “inflation targeting framework” and the Reserve Bank of Australia’s recent reduction of the cash rate.
The directors welcomed the support that “prudent fiscal policy” is providing for monetary policy noting that the reduction in public spending growth in the 2008-09 Budget would help reduce inflation.