Foreign and trade policy
Australia’s foreign and trade policies promote the security and long-term prosperity of Australia in a global context.
The three pillars of Australia’s international engagement are active participation in the institutions of global governance, including the United Nations and the World Trade Organization, enhancing Australia’s alliance relationship with the United States, and diplomatic and economic engagement in the dynamic and diverse Asia-Pacific region.
Key international policy objectives include:
- reducing the threat to Australians from terrorism, the proliferation of weapons of mass destruction and transnational crime, including drug trafficking, people smuggling and money laundering;
- contributing to a comprehensive and effective international response to climate change and global poverty;
- developing market access opportunities for Australian exports of goods and services and promoting productive two-way investment flows;
- providing Australians with high-quality passport and consular services, including responses to major crises;
- projecting a positive image of Australia as a tolerant, open, just and egalitarian society and promoting Australia’s attractiveness as an international partner in education, research and innovation.
Australia has strong relations with the major states of North Asia – China, Japan and the Republic of Korea – countries which are also our major markets. Relations with India are also growing strongly. Australia also has active, long-standing and close bilateral ties with Indonesia and the other member nations of ASEAN in South-East Asia.
Australia strongly supports closer regional integration and plays a key role in regional architecture. Australia is an active member of the Asia-Pacific Economic Cooperation (APEC), the East Asia Summit (EAS), the ASEAN Regional Forum (ARF) and the Pacific Islands Forum (PIF).
Australia works closely with New Zealand and Pacific island states to promote sustainable development, good governance and regional stability in the South Pacific, including through Australia’s long-term Pacific Development Partnerships. Australia has an ongoing commitment to coordinate the Regional Assistance Mission to the Solomon Islands (RAMSI).
Beyond our region, Australia enjoys strong economic, security, political, social and cultural ties with the United States and Canada. The United States’ system of security alliances, including ANZUS, is crucial to maintaining peace and stability in the Asia-Pacific region. Australia contributes to international peace, security and development through its participation in international security forces in Afghanistan and East Timor.
Australia and Europe are building on our strong and long-standing political, cultural, trade and investment, and people-to-people links to advance our shared interests. Australia is committed to building a broad-based, creative partnership with the European Union, addressing the contemporary challenges of climate change, development, international trade, security, and building a stronger system of international governance.
Australia has significant people-to-people links and growing trade and investment interests in the strategically important Middle East. Australia supports the Middle East Peace Process.
In Africa, Australia has longstanding bilateral ties, especially with fellow Commonwealth nations, and growing trade and investment interests and people-to-people connections.
Australia cooperates with Latin American countries in a range of international fora to pursue common foreign and trade policy interests, including in the Cairns Group. Australia also has warm relations with Caribbean countries.
Australia has a strong record in providing development assistance and responding to humanitarian crises in our region and beyond. Australia partners with less developed countries to help them meet their Millennium Development Goals. We are committed to increasing Australia’s aid to 0.5 per cent of Gross National Income by 2015, reflecting our determination to play a larger role in sustainable development, reducing poverty, inequality and lack of governance that feed instability.
Australia was one of the 50 founding members of the United Nations in 1945 and has long supported the organisation’s central role in world affairs. Australia is seeking a non-permanent seat on the UN Security Council in 2013-14 so that it can contribute actively to the critical role that the UN plays in maintaining the rules-based international order that underpins global security and prosperity.
Australia is strongly committed to supporting the efforts of the United Nations and other components of the multilateral system to tackle the complex global challenges that no country can address on its own. These include climate change, the loss of biodiversity, ongoing conflicts and human rights abuses, the spread of WMD and transnational terrorism and crime.
By ratifying the Kyoto Protocol in 2007 – and committing to a target of cutting national greenhouse gas emissions by 60 per cent by 2050 – Australia has underscored its intention to contribute to international efforts to develop effective solutions to one of the greatest challenges for international society.
Regional and international cooperation is essential to counter terrorism. Australian assistance gives priority to law enforcement, intelligence cooperation, border control, transport security, legal frameworks, countering terrorist financing and preventing terrorists’ access to chemical, biological, radiological and nuclear materials. Australia is also active in promoting tolerance and countering terrorist propaganda.
One of the main threats to Australia’s security is the spread of weapons of mass destruction (WMD). Australia has responded to this challenge by working with multilateral institutions like the International Atomic Energy Agency to ensure the peaceful spread of nuclear energy is not diverted to nuclear weapons programs. Australia has also been active in promoting, particularly in the Asia-Pacific region, effective controls in international trade in sensitive materials and technology to help deny access to those seeking to develop WMD and ballistic missiles.
Australia is strongly committed to progressing nuclear disarmament and to strengthening the multilateral disarmament regime. Australia plays a constructive and active role in negotiations in multilateral disarmament fora and promotes nuclear disarmament through our bilateral relationships, including with states possessing nuclear arsenals.
Central to Australia’s trade policy approach are the twin pillars of trade reform at the border through multilateral, regional and bilateral negotiations, and economic reform behind the border to improve Australia’s international competitiveness. Achieving multilateral trade reform through an ambitious outcome to the WTO Doha Round of trade negotiations is Australia’s highest negotiating priority. Australia is a strong supporter of market access reform across the board – in agriculture and industrial goods, and in services. Australia is one of the world’s most efficient agricultural producers and works actively to promote agricultural trade reform through chairing the Cairns Group coalition at the WTO.
Australia is committed to further strengthening the APEC forum as a means of promoting regional prosperity and security, alongside other key regional fora including the EAS and the ARF. APEC’s 21 member economies account for 70 per cent of Australia’s exports and almost half of world trade. Key priorities include advancing APEC’s regional trade and investment liberalisation agenda and promoting further structural economic reform in APEC member economies.
Australia’s global trade liberalisation efforts are reinforced by regional and bilateral trade agreements. Australia has free trade agreements (FTAs) with New Zealand, Singapore, Thailand and the United States. Australia is negotiating FTAs with a number of other key trading partners; specifically Chile (where negotiations have concluded), China, Japan, Malaysia, ASEAN and the Gulf Cooperation Council.