Transcript
17 June 2009
Media conference following the completion of the Forum Trade Ministers' Meeting, Apia, Samoa
Subjects: Cairns Group Ministerial Meeting; Special Safeguard Mechanism; Export Subsidies; Doha Round; G20; Australia-Indonesia FTA; Beef Exports
Participants:
The Hon Mr Simon Crean MP, Minister for Trade of Australia
The Hon Mr Misa Telefoni, Deputy Prime Minister of Samoa
The Hon Mr Samuel T. Abal, Minister for Foreign Affairs Papua New Guinea
The Hon Mr William Haomae, Minister for Foreign Affairs and External Trade Solomon Islands
Mr Telefoni:Introduction in Samoan
Mr Crean: Thank you Misa it was a very important meeting of Trade Ministers today and I think the key message out of this is that there has been agreement following extensive consultations not just involving today but in fact over the past 12 months - a commitment from the Trade Ministers meeting here today to recommend to our leaders when they meet in Cairns that we commence the PACER Plus negotiations. There is also a commitment to move immediately to establish the position of the Chief Trade Advisor in preparation for the establishment of the Office of the Chief Trade Advisor. This is going to be a fundamental component of moving forward because it will be the mechanism that provides advice and facilitation in the negotiation process going forward.
We have resolved to meet, before November but after the (August) Cairns meeting and with the Trade Advisor established, as Ministers again to sit down and work out the roadmap forward, the structure of negotiations, the length of time associated with it (negotiations) the role of the Chief Trade Advisor, all of these issues are contained in the resolution. I think the important thing though is the dynamic that has evolved.
This resolution has been very important in moving us forward. There were a lot of concerns and misunderstandings and some mischievous suggestions as to what these negotiations could involve.
The only way you can resolve these is to be frank with people and meet the issues head on and develop a trust through dialogue. We will only advance this if everyone agrees it should be advanced. And the advancing of the negotiations is fundamentally about how we are going to improve the economic development, the job opportunities and the economic security of the region.
SPARTECA taught us that trade liberalisation, while important to opening up trade economic opportunities, of itself is not enough. There has to be a critical focus on capacity building so nations can truly take advantage of market liberalisation which is the multiplier of economic growth.
PACER Plus is very much about putting the substance into the 'Plus'. It is about capacity building and another important part of the agenda today was to receive a report on the, if you like, capacity building deficit in the region. This is a very comprehensive document, it obviously needs a lot of assessment in determining the way forward, but it is a valuable tool in highlighting the sorts of issues that do have to be addressed if we are to give effect to the job opportunities and economic development of the region.
Hand in hand with that has to be the preparedness to talk about issues that are common to the region that are going to enhance its progress forward, as well as the issues specific to countries. That's in the nature will be a complex set of negotiations but we won't get negotiations concluded unless people believe it's in their interests and unless there is the political will to drive it forward. Today's meeting was an important statement of the political will and a very strong message to all of our officials that we do want to try and achieve a constructive outcome here.
We as ministers remain committed to that process. I think we have given a strong message to our officials. They have done a fantastic job in the preparation for this meeting, as well as the detailed work that has gone on over the past two years in terms of developing the framework and the basis for advancing the PACER Plus negotiations.
I think it is a significant day Misa. I want to thank you for your excellent chairing of the meeting and particularly your preparedness to host this important meeting.
What it does demonstrate is that with commitment, goodwill, trust and understanding we can take steps in the interest of development within the region. That's what we want to be partners in, that's what we remain committed to do and I'm delighted with the outcome of the meeting today.
Mr Telefoni: I would like to thank the Hon Simon Crean for speaking to the resolutions that were reached today. I believe they were milestone resolutions. I believe they were very significant and far-reaching decisions that allowed the process to proceed but we still recognise we have a long way to go. But at least now the process is in place and perhaps I could invite my colleagues (to speak). Firstly, I'd like to invite my colleague, the Minister from Papua New Guinea.
Mr Abal: Thank you. Firstly I'd like to thank you for hosting this meeting. Thank you to the people of Samoa for having us here for the last two or three days. The meeting that we had today are very important for us and I am happy that at least we were able to agree on coming to the (negotiating) table. It's important that we come to the table, that's when we will find out what exactly is there. It's not enough to hope that something falls out from the skies, so to speak. I think it's important that we have all come together and agreed with the determination of your Deputy Prime Minister. Some of the things we have decided today are very important for the future of our region.
As Simon (Mr Crean) has mentioned already, the biggest worry for the island countries has been how to have the capacity to trade. As soon as the boundaries open up, are we able to open up and be able to trade? What are we able to trade? All these big worries are there and island countries trying to take advantage of what would be an open market. But I think that the approach we have done today augurs well for the future as Australia and New Zealand have today, despite some initial thoughts or thinking that we might come to an impasse, they came good on the initial things like the solution that will help us build up our capacity to negotiation the Office of the Chief Trade Advisor. Coming good on those areas it looks very good so that we can also work on it with the island countries, the ability to negotiate, what is best.
Australia and New Zealand are developed countries but they are within the region and they are coming to us to facilitate what are difficult areas for island countries, it's a good thing.
As we venture forward of course we will have difficulties or differences within PACER Plus but, as Simon (Mr Crean) has mentioned, we look forward to that 'Plus' side of the PACER Plus negotiations. For countries that do not have the ability to bring in the revenue for their countries, I think it's important for us to try and make them sustainable for the future.
It's an exciting thing, it's a new thing, it's something that the world is opening up to and it is not good if we are faced with it and we don't have the structure that is able to be much more receptive to the sensitivities of the island countries. The Australian and New Zealand Governments have the interests of the island countries in mind and we are ready to negotiate with them. We want to thank them for their openness and for coming forward instead of making it too difficult for us.
That is an area where we need help, the capacity of island countries. It is something that we want to do, to part from aid and move into being able to pay for our way in the future. At least it will help us to make island countries viable and able to sustain themselves. This is a good start and because we have ended up with agreeing on many points I think it augurs well for the future and we are ready to recommend to the Forum to start negotiations.
Mr Haomae: I also wish to join my colleagues in commending how the chairman has ably chaired this important meeting and I would like to, on behalf of Solomon Islands delegation, express my gratitude for the welcome and the gracious hosting of this meeting by Samoa. It has also given us the opportunity to experience the serene surround of Apia and the warm and generous hearts of the Samoan people in the finest traditions of the Samoan way.
In addition to what the Chairman (Mr Telefoni), Simon (Mr Crean) and Sam (Mr Abal) have said about the issue of the Office of the Chief Trade Advisor, which has been decided upon today, let me move on. In the process of the PACER Plus roadmap, there will be chances for national consultations and research and hence each country will undertake that process and all the stakeholders in each country will be consulted - the NGOs, all ministries within governments, the private sector - all will be consulted in the process of national consultation and research, so if anyone in the Pacific has views to express then I think they have the opportunity to do so during the process of the national consultations and research. Thank you Mr Chairman.
Mr Telefoni: I think that last point is very important. We know that there are other meetings taking place right now, some of them are questioning the motives of Australia and New Zealand and I have defended those motives and I think I have made the point very clearly that the purchase of goods from Australia and New Zealand is a matter that is totally left to our private sector. They will determine who they want their goods from and why.
The situation that there will also be a loss of revenue, I think that was already touched upon in our press conference yesterday, that is really not a trade issue. The bringing down of tariffs is incumbent on us or any country that is negotiating to join the World Trade Organization so it is really a question of coming under the umbrella and what we have to recognise is that our consumers benefit greatly if we bring our tariffs down because it will bring down the cost of living. The revenue implications are serious and I know that some of the private NGOs and civil society groups have made comments that there will be so much loss of revenue. Well let me put it this way, if you charge $10 million in import duties and you waive those import duties, that $10 million is paid directly by our consumers. Import duty is not paid by merchants, it is paid by the people that are the ultimate consumers of those goods because no merchant is going to suffer that on his own and not pass it on. As you know in the case of Samoa, we have gone in the way of VAGST (value-added goods and services tax) and because we have gone that way we have been able to drastically reduce our tariffs, which we may need to do if we continue with the WTO process. As you know, I signed the agreement with Mr Crean during his last visit, so we have a short way to go with full membership. But I think the important thing is that the restructuring of duties is also a restructuring of our tariff revenue basis.
The important matter that was raised by Mr Haomae is very, very significant. There will be wide consultations within our own national consultations so that we know what our stakeholders want before we actually take it to the drawing board. As you know, we had private sector submissions given to both meetings, both today's meetings and the meeting we had over the past two days. We had the Vice Chairman of the Pacific Islands Private Sector Organisation come and speak to us and we believe that we are now going to make sure that the private sector play a very important role in these meetings in the future and be also fully represented.
Question and answer in Samoan
I'm basically just saying Simon (Mr Crean) that the PACER Plus, the 'plus' means that we can talk about the market access of Yazaki products to Australia.
Mr Crean: I picked up Yazaki and I picked up wire harnessing and I have been out to the factory.
Mr Telefoni: Also apple pickers in New Zealand, and hopefully you might even allow some apple pickers to come to Australia but I think all these issues are not strictly trade issues but they are definitely in the framework of PACER Plus. And of course tourism, a very significant part of our infrastructure is tourism. But I think one thing that we did get into is that we need to be very proactive, not just about the global economic crisis but also the swine flu pandemic. We have been very firm. There was a move that we might not allow cruise liners to come in but say if we worldwide cruises stopped completely, that is going to have a major impact on all of us. There will be other impacts of the swine flu, you may have heard that there was a school group that came from Melbourne.
Mr Crean: They flew out last night I believe.
Mr Telefoni: Yeah, they flew out last night but they are some of the problems that have arisen that may impact on tourism flows and these need to be also evaluated.
Neroni Slade: Thank you very much Deputy Prime Minister and Ministers. The economic growth and the sustainable development of Forum island countries is in an essential part of the vision that Forum leaders have established for the Pacific. Trade and the development of trade opportunities is a key step towards that process for the development of systems of capacities for our people and our Forum island governments, and for the better prospects for economic growth and prosperity. That is why Forum leaders have set a very high priority on this matter of trade and trade relations among Forum island countries and beyond.
What Trade Ministers of the region have done today is historical in its proportions if you consider it in the light of the very high priorities that our leaders have placed on this matter. That gives it a very special significance. Part of the achievement here is, because of the immensely complex and interrelated issues, it has taken time to come to this point. But Ministers, with a great deal of determination and application, with a great deal of good will and give and take on both sides have come to his point. But it's a milestone that has been reached in what is a very, very long road. I think the complexities of these issues should not be underestimated in any way.
It seems to me, honourable Ministers, that what you have done is a first step towards a very intense process of negotiations. These negotiations, as you've heard from Ministers, are likely to be very technical, extremely important in terms of country positions and significant economic aspects for each country to weigh up. Given that the issue of capacities is a major concern for the smaller countries and Forum island countries, all 14 of them. That is why there is a lot of emphasis on capacity building they need that now and that is the special importance given to the Office of the Chief Trade Advisor - they need this training and capacity building tomorrow and for the long term so this will be an ongoing process. I think it's important not only for PACER Plus process but, as you know, the region is engaged with other important trade negotiations with other countries so it's capacity that will provide a great deal of utility to the citizens of the region and I think will build their skills in a very significant very practical and a very important way. Thank you very much Mr Chairman for giving me this opportunity.
ENDS
Media Inquiries Departmental Media Liaison 02 6261 1555