29 January 2009
Interview - ABC News Radio
Subject: World Economic Forum in Davos
GLEN BARTHOLOMEW: Let's continue with our financial theme now, our economic theme. World business and political leaders are gathering as we speak at the Swiss ski resort of Davos for their annual talkfest on the state of the world. And the exclusive gathering is more sombre than in previous years with the building global economic storm dominating everyone's thinking as Michael Rowland was just pointing out to us.
Among Australia's representatives at the talks is the Trade Minister Simon Crean and he spoke to Marius Benson from Zurich on his way to Davos.
REPORTER: Simon Crean, it seems like a different sort of Davos you are flying into at the moment. There are world leaders gathering but there's a different mood. There are no celebrities, not even Bono this year.
SIMON CREAN: [Laughs] Yes, well it's a different mood all right because we're all affected by the global financial crisis. It requires a global solution, so as sombre as the mood might be, I also sense that there's a very strong determination to try and develop a much more effective co-ordinated approach to redressing it.
REPORTER: People are also finding the opposite there that there's some concern that there's a new protectionism in the air, that people are - some nations are feeling like pulling up the drawbridge in the face of this global downturn.
SIMON CREAN: Well that's one of the big problems, of course, that people think in these times that the best thing to do is to resort to looking after your own. In other words, protectionism, or resorting to trying to protect jobs at home.
But the truth of it is that the path forward has got to be built around opening up markets.
REPORTER: Do you see evidence of a new protectionism there? People are pointing to some straws in the wind, perhaps the decision last week by the European Union to reintroduce export subsidies on dairy products, people are seeing that as a distortion of the trade.
SIMON CREAN: Yes, well that's a very worrying development and of course if Doha were [indistinct] export subsidies would be outlawed, and that's another reason why it's so important to get this. They just wouldn't be able to do it, the disciplines of the world trade organisation system would prevent it.
But look, there are straws in the wind, there hasn't been a mass approach if you like, or a widespread use of it, but if we don't get the breakthrough and if countries start looking inwards, then I think we'll see more of it. And that's why it's very timely that we use this opportunity, not just to say no to protectionism, but more importantly how do we give the multiplier effect for the fiscal stimulus?
And one of the most effective ways in which you can do that is to liberalise trade and get the multiplier of trade going to enhance the fiscal stimulus.
REPORTER: Mr Crean, the other difference that some people are seeing as the world leaders gather for Doha is evidence of a new world economic order with a new prominence for what are called the brick countries, these - Brazil, Russia, India, China. These are the countries that can look around the world now and say at least we're growing our economies.
SIMON CREAN: Well that's true, but I think that we saw the evidence of that with the emergence of the G20, moving away from the geopolitical framework that was the G8 and just the developed countries, to having to embrace the fundamental significance of developing countries.
This is something within the World Trade Organization we've understood. Last July we worked very closely with Brazil, with China, with India. Unfortunately we weren't able to get the final breakthrough, but the fact that we've got an agreement 80 per cent included, the fact that we've been able to find the right sort of balance between disciplines on developed and developing countries as part of the Doha outcome, I think augurs well for dealing with that problem.
Now yes, it's true we haven't yet solved the problem, but I think we have made a huge important start to it. So I don't think the emergence of them is the problem, there's the realisation of it. It adds complexity, but it's doable.
REPORTER: Simon Crean, thank you very much.
SIMON CREAN: My pleasure.
GLEN BARTHOLOMEW: That's Australia's Trade Minister Simon Crean on his way to the World Economic Forum in Switzerland speaking to ABC NewsRadio's Marius Benson.
ENDS
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