ASEAN-Australia-NZ trade talks to start Monday
ASEAN-Australia-NZ trade talks to start Monday
Dow Jones, Canberra
Amid a welter of negotiations for free trade agreements in the
region, Australia, New Zealand and the 10 members of the
Association of Southeast Asian Nations begin their talks on
Monday in Melbourne.
The aim, with the Asean-ANZ talks as with others, broadly is
to eliminate as far as possible barriers to trade in goods and
services and to investment.
Economic modeling by the Canberra-based Centre for
International Economics suggests the FTA could generate gains
over 20 years for Australia of around US$19.1 billion and for
Asean of $25.6 billion, and underpin a modest expansion of
economies.
Australian Trade Minister Mark Vaile will formally start the
negotiations, which will then be taken forward by officials for
conclusion in about two years.
Canberra is viewing the FTA as a historic development in
relations with Southeast Asia, which will help consolidate its
economic integration with the region.
As with other FTAs, Australia will focus considerable
attention on greater access for farm, mineral and energy
products, an Australian official familiar with the talks said
Friday.
On average, Asean import tariffs are low, but there are
significant peaks for some farm goods that Australia wants to
cut, said the official, who requested anonymity.
"There are certainly issues on agriculture," he told reporters
at a briefing. "That's a key area for us."
Particular areas cited by Australia include lowering market
access barriers for autos into Malaysia and Indonesia, farm goods
into the Philippines and alcoholic beverages into several
countries.
There is also a range of non-tariff barriers, such as import
licenses and border access arrangements, that need to be looked
at, he said.
A big area of negotiation for Australia will also be on trade
in services, with liberalization of this not nearly as advanced
as it is merchandise trade, he said.
The official said the meeting of officials in Melbourne will
focus on institutional, procedural and timing issues and create
the structures that will carry the negotiations forward.
Australia mostly exports a range of raw or lightly processed
farm, mineral and energy products, and increasingly some complex
manufactures.
It relies to a lesser extent on export earnings from
manufactured products and services such as tourism, education and
professional services.
Asean as a bloc and some individual members -- such as
Singapore, Indonesia, Malaysia and Thailand -- along with New
Zealand, are major trading partners with Australia.
These four Asean nations account for 85 percent of Australia's
trade with Asean.
Broadly, Australia imports manufactured goods, though crude
oil is a major import from Asean.
Two-way trade between Australia and Asean members totaled
A$32.82 billion last fiscal year ended June 30, 2004, while two-
way Australia-New Zealand trade totaled A$13.14 billion.
Two-way direct investment between Australia and Asean is
small.
The negotiations take place against a backdrop of protracted
difficult multilateral talks under the auspices of the World
Trade Organization (WTO) and a plethora of FTAs in operation or
under negotiations.
Australia, for instance has existing FTAs with Singapore, New
Zealand, Thailand and the U.S., and is studying possible
agreements with China and Malaysia.
Asean has its Asean Free Trade Area, of AFTA, which aims to
remove barriers and facilitate trade and investment among
members.
Asean is also negotiating FTAs with China, Japan, South Korea
and India, while individual nations have a range of FTAs, such as
Singapore has with the U.S. and Japan.
One of Australia's priorities in the Asean-ANZ talks will be
to preserve and if possible expand the market access gains
secured under its FTAs with Singapore and Thailand.
ASEAN has a combined gross domestic product (GDP) of almost
$700 billion.