Minister's foreword
2002 was a landmark year in Australia's trade policy. Australia and the United States agreed to begin negotiations on a free trade agreement (FTA) to remove or reduce market access barriers faced by Australian businesses in the world's biggest economy. The Government finalised an FTA with Singapore, delivering gains to a range of Australia's legal, financial and education exporters. And significant progress was made in deepening Australia's trade and investment partnerships with Thailand, China and Japan.
Australia remained at the forefront of global efforts to promote trade, hosting an informal meeting of ministers in Sydney in November which highlighted development and market access issues in the Doha Round of World Trade Organization (WTO) negotiations. At the regional level, Australia continued to drive APEC's trade facilitation work, which is cutting business costs in the Asia Pacific. Australia and New Zealand signed a Closer Economic Partnership framework agreement with ASEAN governments which aims to remove and reduce impediments to trade and investment in our region.
The breadth of this agenda confirms the Government's commitment to advancing Australia's trade and economic interests. This commitment to 'competitive liberalisation' sees multilateral, regional and bilateral trade policy approaches as complementary and mutually reinforcing. Liberalisation through bilateral and regional avenues can compete with and stimulate multilateral liberalisation.
The Doha Round negotiations are very important to Australia and achieving good outcomes from the Round remains the Government's foremost trade policy objective. Through the FTA negotiations with the United States and its other bilateral and regional efforts the Government aims to secure practical results for Australian businesses and to establish a high benchmark for the multilateral system.
It was a challenging year for Australia's exporting community, which faced global economic weakness and an international outlook clouded by the threat of terrorism. Over the past five years, Australia's export growth has averaged almost 8 per cent, well above the world average of less than 3 per cent. Stronger world growth and a return to normal seasonal conditions in Australia can be expected to lead to a rebound in Australia's exports in 2003.
Despite the challenges, we increased our exports during the year to key markets, including China, the Republic of Korea, the United Kingdom, France, New Zealand, Thailand and India. And recent export success stories, such as wine, continued their strong growth. Under a $25 billion contract signed in October Australia will supply liquefied natural gas to China, the biggest single export deal in Australia's history.
Due to the Government's continuing economic reform program, Australia remains one of the fastest-growing economies in the OECD. Trade is an important part of that. Our export community is diversifying as well as growing. We are reaching more markets – the Middle East is our fastest growing major regional market over the past 5 years – and expanding the range of goods and services we are supplying to the world.
The Government is committed to consistent improvements in its trade-related services to Australians, whether they are considering moving into export or simply wish to understand better the evolving international economic environment.
Sound macro-economic policy settings are allowing exporting companies to generate jobs and income, and to develop infrastructure and production facilities. One in five jobs in Australia relies on exports – one in four jobs in regional Australia. In 2001–02, the number of exporters in Australia grew by 6,450, a 25 per cent increase since 2000–01. This demonstrates that the Government's ambitious program to double the number of Australian exporters by 2006 is on track.
Towards the doubling goal, the Government in 2002 expanded its assistance to prospective and existing exporters by increasing the number of TradeStart offices across Australia, and through the creation of the New Exporter Development Program and targeted public information about the benefits of trade and Australia's place in the global economy.
Trade 2003 reviews Australia's trade outcomes during 2002 and sets out the Government's trade policy framework. The recently published White Paper, Advancing the National Interest, articulates the Government's longer-term strategies for advancing our national interests.
This online research tool contains links to information and advice on the complete range of services available from the Department of Foreign Affairs and Trade, Austrade and the Export Finance and Insurance Corporation (EFIC).
The Government's wide-ranging economic reforms and sound domestic policy settings have placed Australia in a strong position to pursue its international interests. Through its ambitious and pragmatic trade policy and practical assistance to exporters the Government will continue to help Australians to compete successfully in the global economy.
Mark Vaile