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."