Australia plays down trade friction with Indonesia
Australia plays down trade friction with Indonesia
SYDNEY (AFP): Trade Minister Mark Vaile Wednesday played down concerns that Australian imports to Indonesia could be cut back over the government's stance on East Timor.
Indonesian wheat, textile, sugar, and pulp and paper importers have reportedly warned they will find alternatives to Australian imports, but Vaile said no action had been taken.
In fact, two shipments of wheat were on their way to Indonesia and he knew of only one small miller that had threatened to look at alternative sources.
Vaile said Jakarta had been concerned its exports could be disrupted because of union blockades in Australia, but they were lifted when Indonesia agreed to allow United Nations peacekeepers into East Timor.
"That in turn means that there won't be any threat to the security of supply of those important foodstuffs to Indonesia," he told reporters.
Indonesia's prime responsibility was to feed its population of 211 million, he added.
"Australia being close is one of the principal and most economic suppliers of quality food for their population and it is very, very important that we maintain that."
Two-way trade between Australia and Indonesia is worth about A$5.5 billion (US$3.52 billion) annually but the Indonesians enjoy a $1.4 billion trade surplus, largely due to Australian imports of crude oil and petroleum products.
Vaile dismissed suggestions that Indonesian Trade Minister Rahardi Ramelan had scuppered a meeting arranged between them at this week's ASEAN Free Trade Area (AFTA) ministerial meeting in Singapore.
Ramelan is expected in Singapore Thursday but has to return to Jakarta on Friday for a special parliamentary meeting.
"I don't take it as a rebuff, I accept that the domestic political circumstance in Indonesia is in a very delicate and sensitive state at the moment," Vaile said.
Prime Minister John Howard also hosed down trade friction between the two countries, instead talking up the importance of economic ties.
"It would be too alarmist and absolutely premature to be talking about millions or billions of dollars of trade being at risk," he told CNN.
"I believe there are people in both countries who see the wisdom of retaining economic links."