Bruce Baird (Cook, Liberal Party) Share this | Hansard source

On behalf of the Joint Standing Committee on Foreign Affairs, Defence and Trade, I present the committee’s report entitled Expanding Australia’s trade and investment relations with North Africa.

Ordered that the report be made a parliamentary paper.

On behalf of the Trade Subcommittee of the Joint Standing Committee on Foreign Affairs, Defence and Trade, I wish to make some brief comments on the committee’s report Expanding Australia’s trade and investment relations with North Africa. The countries of North Africa represent a market nearly eight times that of Australia. Australia has yet to fully engage with the 155 million people living in Algeria, Egypt, Libya, Morocco and Tunisia. In May 2005, the Minister for Trade asked the committee to examine our trade and investment relations with North Africa and the likely future trends in these relations. The committee was also charged with assessing the role of the government and its agencies in maximising opportunities as they emerge in the region.

In addition to holding public hearings and receiving submissions, the committee visited Algeria, Egypt, Libya and Morocco to review trade and investment opportunities for Australia in person. Two members of the committee also visited Tunisia to attend the World Summit on the Information Society. During visits to Algeria, Egypt, Libya and Morocco the committee met with senior government figures, the parliaments, government agencies and departments, and importers. The contacts made included meetings with the Prime Minister of Morocco and several senior ministers in each of the cities visited. In Morocco, Algeria and Libya there was considerable television and media coverage of our visit. The response to the committee’s visit was positive and very encouraging.

We looked to see if there were any impediments to trade in this region and what could be done to capitalise on the opportunities. Although the countries are different, they share some common characteristics which are relevant to Australia’s commercial interests. GDP growth is strong in all five nations. In the resource-rich countries of Libya and Algeria, further strong growth based on escalating oil prices can be expected. Each of the countries is going through some degree of market liberalisation and reduction in taxes and tariffs. The privatisation of companies could be seen across the board.

In the region, major infrastructure projects for roads, ports, electricity, water supply, airports and agriculture represent opportunities for Australian companies. Increased consumer demand also means further opportunities in the market for Australia. Currently, the most promising are:

• wheat and agricultural products;
• livestock and meat products, particularly lamb;
• mining and agricultural equipment;
• consultancy in a wide range of areas;
• tourism training; and
• education, particularly for postgraduate students.

Of course, the biggest potential remains in the oil and gas fields, especially those of Algeria and Libya. Australia’s biggest oil explorers continue to bid for major projects in these countries, with BHP Billiton being successful in Algeria and Woodside being successful in Libya. Iron ore production as well as aluminium smelting is also possible in Libya, with BHP Billiton interests. An Australian manganese smelter is being assessed for its possibilities in Egypt.

In summary, the potential for Australia in North Africa is significant because of the opportunities in resource development, because of the GDP growth rates of the big countries and because there is export potential to Europe through the countries where trade conventions with the EU exist. In the light of its on-the-spot reconnaissance of the region, the numerous submissions it received and the evidence from public hearings, the committee concluded that Australia should ensure that appropriate resources are allocated to these markets to encourage Australia’s access and export growth.

To pursue these aims, the committee has recommended that, at the government-to-government level, the Australian government should seek to improve access for Australian exports through negotiating lower tariffs on a bilateral basis, particularly in agribusiness. It should also initiate or continue ministerial discussions with North African trading partners to address technical access issues, particularly harmonising customs and standards requirements.

Following discussions in North Africa about visa arrangements for entry to Australia, the committee recommends that there should also be closer focus on expediting visa-processing requirements. Specifically, the Department of Immigration and Multicultural Affairs should review its visa-processing arrangements for North Africa as a priority and also consider reviewing the assessment processes for North African students sponsored by these governments.

I would like to particularly thank those people from the Department of Foreign Affairs and Trade who assisted this visit and especially Dr Stephen Dyer, who has recently announced his intention to retire from his role as secretary of this committee. He has done an outstanding job, particularly as he did not go on the visit but took up the reins in assisting to write the whole report and the inquiry report when the formal part was done by somebody else. So particular thanks go to him for his outstanding assistance and his great role with the committee, and I wish him all the best for his future. (Time expired)

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