Transcript
18 May 2009
Doorstop with Korean Trade Minister Kim Jong-hoon
Subjects: Australia-Korea Free Trade
MR CREAN: Well, I've just had some very constructive talks with my good friend and counterpart, Minister Kim, from South Korea. When his President visited the country in March, the President and the Prime Minister indicated that was the intention of both countries, to commence the free trade negotiations between our two countries.
That process took place today.
We've had a very constructive meeting. Importantly, we've been upfront about some of the issues and sensitivities between our two countries. But we don't see that as a barrier to proceeding expeditiously to conclude these negotiations.
It's the desire for both of us to see the negotiations as comprehensive, covering all sectors - the goods market, agriculture, services, and investment. To move constructively forward, and to try and conclude this in as expeditious a time frame as is possible.
We don't want to put that time frame on things. But we have committed today to not just see the negotiations proceed at the official level, but for both of us to remain actively engaged. If any log jams occur, then the ability to pick up the phone and try and deal with those as quickly as possible.
And I also took the opportunity of taking Mr Kim to an Australian Rules Football game yesterday. It's a big crowd, and at the MCG, and he stood on the hallowed turf. But disappointing the result might have been if you're a Collingwood fan.
And I'm not.
But it was a great experience, and I think that it demonstrates the growing comfort between our two countries.
Korea is our fourth-largest trading partner, it's had big increase in two-way trade over the last few years.
We want to maintain and build on that momentum. And finalising a free trade agreement between our two countries will be the framework against which we can sustain and build that momentum.
Mr Kim - you might like to say a few words as well.
KIM JONG-HOON: Why, thank you very much. First of all, I want to thank Simon for his hospitality, and organising this important meeting.
And as Simon said, the meeting was very constructive, and fruitful. Both of us are trade minister, and trade is a very important part of our life and our relationship. But once - but trade is really gets expanded, you know, as the outcome of our free trade agreement. Then certainly, it goes beyond the trade, because once trade is expanded, then that means the distance between the two markets get, you know, to escalate shortly, even though the physical distance stays there.
But you know, once the market distance is shortened, then that means the distance between people gets shortened, too, and that can be the strongest of possible base for the strongest of possible relationship.
And now that you are sharing the same value of a democracy, a market economy, I think we have a whole lot of thing, you know, to work together - not only on the bilateral level, but also for many global issues like climate change and human right, and even expending or promoting a more freer movement of persons.
Thank you very much.
SIMON CREAN: Okay. Any questions?
QUESTION: Mr Kim, did you raise any concerns with Mr Crean about the Chinese investment in iron ore mines in Australia?
KIM JONG-HOON: Well I'm not worrying about Chinese. We are looking for our own chance, and Australia looking for their own chance in Korean market, so this is rather bilateral. And certainly there's many rooms that, you know, we can work together to provide more chances each other.
So while in that sense it's rather on bilateral cooperation, you know, not really worrying about any further countries involved in that, or whatever. But the competition should be clear enough. Once the competition is clear, no problem.
QUESTION: Mr Kim, in the past there've been problems in Korea with agricultural deals - most notoriously with the FTA with the United States.
You've talked about - no, Mr Crean talked about comp… having a comprehensive agreement. Are you confident that you would be able to secure the support of your agriculture sector for such an agreement with Australia.
KIM JONG-HOON: Yeah. Well let me begin, you know, by… my answer by saying no economy on the earth is perfect. So certain countries have a certain sensitivity in certain areas. And in case of Korea, Korea has a certain sensitivity in agricultural area, that's true, but that does not mean that we would like to carve out totally agricultural area from our agreement. Agriculture will be included in our agreement, but with a certain consideration reflecting the sensitivities.
That's the way we negotiate for every free trade. Free trade is free trade, but, you know, sensitivities are there. Why agriculture always a sensitivity for Korean economy… Usually, you know, farmers are regarded - what can I say? - kind of vulnerable class, you know. So there is a certain, you know, political dynamics in dealing with those vulnerable class, like many other countries should do in dealing with their own sensitive, you know, areas.
So that does not mean, you know, once we say sensitive, we are - we don't mean to carve it out totally because of the sensitivity, but, you know, we will do something reflecting that kind of sensitivities during all negotiations.
QUESTION: Can I ask you a quick question about the EU? Will South Korea be ready to sign a free trade agreement with the EU when the delegation arrives in Seoul?
KIM JONG-HOON: Well, that's my wish. We are working very hard for that and we are very close, that's true. But still there are, well, one or two remaining issues. But I think I can find out a good landing zone.
QUESTION: Sorry, say again.
KIM JONG-HOON: Landing zone. Not crash landing, soft landing. [Laughter]
SIMON CREAN: That's right. Perfect landing.
QUESTION: Mr Crean, you're indefatigable in trying to improve our situation internationally in trade in many ways. The climate's very difficult around the world. People are naturally looking to protectionism could come, have a comeback, you're pushing on. Do you feel confident that this deal, like others you're talking about, Doha and so on, is fighting a losing battle for now? Would it be better just to bide your time rather than push forward with all these deals in the current climate?
SIMON CREAN: It's not fighting a losing battle; it's strengthening the hand of the winners, the progressives, the people that understand the importance of trade to the economic future of a country and to global economic development.
The truth is trade is an economic stimulus. Trade grows faster than world output. Any country that wants to sustain and build its economic future has to engage in trade. The task for us is to try and identify the framework not just bilaterally to liberalise markets and not just product markets but services markets, investment opportunities, but to work together to advance that in the multilateral and the regional fora. And that's indeed part of the discussions that we will continue to have over lunch.
Korea has been a very strong supporter of concluding the Doha Round. It has been very strong in that agenda at the G20 dialogue, and in arguing very strongly against the spread of protectionism.
One of the most effective ways that we can reinforce that message is to lead by example. And this FTA will, if concluded and concluded expeditiously, send a very strong signal into a region that is still growing fast.
China, Korea itself, parts of the ASEAN group, Australia, whatever the immediacy of the impact of the global financial crisis is now in the world recession, we all see ourselves well positioned to weather the storm and prepare ourselves better once global recovery occurs.
This is the opportunity to also grab some market share, but it's also the realisation that both of our economies are heavily interdependent - them in terms of the source of energy particularly; us in terms of the interaction in terms of our product and service markets.
What we want to do is to reinforce that interdependency to get the beneficials of the two-way trade but to reinforce the message at the multilateral level.
QUESTION: You mentioned China. Have those trade talks lost some momentum?
SIMON CREAN: No, they haven't lost momentum. We've tried to revive those over the last 12 months. I've made five visits up there and I think that some progress has been made.
But we will persist with that agenda. I think the political will exists. What they've got to do, the Chinese have to do, I think, is to have more time to integrate the competing differences within their agencies, some of the sensitivities that have been referred to before.
That'll only happen if the political will exists. There's a limit to how far the technicians in negotiations can go if the political direction isn't there. I think we can get that political will with the Chinese. The fact that we've been having the discussions today with Korea is no indication that we're going soft or softening in our position with China. We will, I think the resolve today is to strengthen the hand and show that where the political will exists, progress can be made, and I hope that that sends something of a signal as well.
KIM JONG-HOON: May I make a comment?
SIMON CREAN: Yes, please. [Indistinct]
KIM JONG-HOON: Well, I do believe, you know, like Simon does, that bigger trade can churn out bigger value addition. Nobody can deny that, particularly the trade officials I have - that's my firm conclusions. And particularly at this, you know, times of economic difficulties, trade should not be a part of the problem. It's not a part of the problem. There should be the part of the solutions, and that's the directions we are working together. Thank you.
SIMON CREAN: Thank you very much.
ENDS
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