Foreign Affairs and Trade portfolio agencies conduct Australia's foreign relations, help Australians win export business, generate inward and outward investment, and provide assistance to developing countries to reduce poverty and achieve sustainable development. The portfolio provides consular and passport services to Australians. It is committed to improving public understanding of Australia's foreign, trade and aid policy both domestically and internationally. The key principles and priorities of the Government's foreign affairs and trade policy were set out in a White Paper published in August 1997.
The agencies in the portfolio are the Department of Foreign Affairs and Trade, the Australian Trade Commission, the Australian Agency for International Development, the Australian Centre for International Agricultural Research, the Export Finance and Insurance Corporation, the Australian Secret Intelligence Service and the Australia-Japan Foundation.
Major Objectives in 1999-2000
A high priority in 1999-2000 continues to be the foreign policy and aid challenge of developments in East Timor. As part of portfolio action, the 1999-2000 Budget provided funds to open an Australian post in Dili, East Timor, including AusAID representation. Following the adoption of UN Security Council Resolution 1272, which recognises that East Timor is no longer a province of Indonesia, the post is now known as the Australian Mission to East Timor.
The portfolio's network of overseas posts is a key asset in maintaining and strengthening the bilateral relations at the core of Australia's national security and economic well-being. Part of the Additional Estimates funds will be used to further enhance the overseas network, particularly in Copenhagen, Denmark and Los Angeles, United States as well as upgrading Australia's representation in Lisbon, Portugal. East Asia remains a primary focus because of the core Australian interests involved. The portfolio also devotes particular attention to conveying Australia's point of view to the United States (US) administration and to encouraging continued US engagement in the security and economic affairs of the region. The portfolio is working to strengthen the commercial relationship and broaden Australia's political dialogue with the European Union and individual member countries.
Portfolio activity in multilateral forums is tightly focused on issues where Australia's interests are involved. Considerable effort is directed to implementing and, where necessary, strengthening international regimes covering weapons of mass destruction - nuclear, chemical and biological. The portfolio works to protect and advance important Australian interests engaged in the international environment agenda. Development assistance to multilateral agencies extends the reach of Australian aid, provides an alternative channel for policy dialogue, and is a key to improved donor coordination. Comprehensive treaty consultation processes give effect to the Government's commitment to better channels of communication with those whose interests are affected by international agreements or negotiations.
Serious challenges remain for Australia in the wake of the Asian economic crisis. Full recovery, including the alleviation of the social consequences of the downturn, will be a long-term undertaking. Keeping markets open through the vigorous pursuit of market access issues and working for further multilateral trade liberalisation in bodies such as the World Trade Organization and Asia-Pacific Economic Cooperation are key objectives, as is achieving agreement for a new comprehensive round of WTO trade negotiations to begin in 2000. The Market Development Task Force established by the Government in August 1996 is an important bilateral tool. Another key initiative taken by the Government is the annual Trade Outcomes and Objectives Statement, which outlines key market access and development priorities.
The portfolio is helping Australian exporters and investors to deal with the effect of the Asian economic crisis. In 1998-99 an Australian Embassy was opened in Abu Dhabi, United Arab Emirates and Trade Consulates were established in Bucharest, Romania and Lima, Peru to assist exporters diversify their markets. The 1999-2000 Budget provided funds to open an Embassy in Zagreb, Croatia. Economies around the world are increasingly trading electronically and the portfolio places priority on making Australian exporters aware of, and effective participants in, the digital age. Austrade is particularly focusing its resources in this area as well as making a sustained effort to serve the needs of small and medium enterprises and companies in regional and rural Australia.
Assistance provided to regional countries affected by the Asian economic crisis is helping them to respond to social needs, resume sustained growth and improve their economic and financial management. Australian aid is also playing a critical role in providing basic shelter, food and water to the people of East Timor. Longer-term assistance will focus on reconstruction and governance needs. Substantial ongoing development assistance is provided to Papua New Guinea and the nature of that assistance is evolving to improve its quality, impact and sustainability. Through its leading role in the Bougainville peace and reconstruction process the portfolio is working for a peaceful settlement. Promoting stability and economic reform in the Pacific Island countries is a continuing priority. The portfolio also plays an important role in international forums, and with multilateral and non-government agencies, in pursuing the Government's aid objectives. The principles and directions set out in the Government's 1997 policy statement, Better Aid for a Better Future, continue to shape the Australian aid program.
Against the background of a large increase in the number of Australians travelling and living abroad, the Department of Foreign Affairs and Trade concluded a Passports Output Price agreement with the Department of Finance and Administration that will maintain its delivery of high-quality passport services. Demand for these services will be heightened by the challenges presented by international Year 2000 problems.
Administered items contribute to portfolio
outcomes. The portfolio makes payments for Australia's participation
in most international organisations although such memberships
are of whole-of-government interest. Development assistance administered
by AusAID plays an important part in Australia's engagement in
the region and supports broader bilateral efforts. Financial support
provided to eligible Australian companies under the Export Market
Development Grants administered by Austrade contributes to Australia's
trade performance. A further administered item of assistance to
exporters are the loans, insurance guarantees and bonds provided
under the National Interest provisions of the Export Finance and
Insurance Corporation Act 1991.
ADDITIONAL ESTIMATES AND VARIATIONS - PORTFOLIO LEVEL
The portfolio is seeking an increase of $79.334m in appropriations (equivalent to 3.21% of the portfolio's total appropriation at Budget time), comprised of $77.001m in Bill 3 appropriations, $2.333m in Bill 4 appropriations and $(0.368) in Savings Measures. Adjustments are as follows:
Department of Foreign Affairs and Trade (DFAT) - $57.815m
Appropriation Bill No 3
Appropriation Bill No 4
Savings Measure
Australian Trade Commission (Austrade) - $2.743m
Appropriation Bill No 3
Australian Agency for International Development (AusAID) - $15.630m
Appropriation Bill No 3
Appropriation Bill No 4
Australian Centre for International Agricultural Research (ACIAR) - $0.067m
Appropriation Bill No 3
Australian Secret Intelligence Service (ASIS) - $2.777m
Appropriation Bill No 3
Australia-Japan Foundation (AJF) - $0.302m
Appropriation Bill No 3
Appropriation Bill No 4
Map 1 - Structure of Portfolio Outcomes - Foreign Affairs and Trade Portfolio
