House debates

Wednesday, 24 June 2009

Committees

Foreign Affairs, Defence and Trade; Report

12:04 pm

Photo of Melissa ParkeMelissa Parke (Fremantle, Australian Labor 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 Australia’s relationship with ASEAN.

Ordered that the report be made a parliamentary paper.

by leave—ASEAN has become an important trading partner for Australia. ASEAN is now the sixth most important export destination for Australian goods and services and Australia is the eighth most important source of imports for ASEAN. This relationship has been recognised by the recent signing of the ASEAN-Australia-New Zealand Free Trade Agreement. The countries of ASEAN are also of strategic importance to Australia. Political stability in the region and good international relations with ASEAN countries are therefore integral to Australia’s security and prosperity.

Over the years, ASEAN has expanded its engagement with the region through its dialogue partners and by the creation of the ASEAN Regional Forum and the East Asia Summit. This trend culminated in the 2003 Bali Concord II and the 2008 ASEAN charter, which formalised ASEAN as a legal entity and intergovernmental organisation. Australia’s relationship with ASEAN is multifaceted and operates on different levels. The report discusses the nature of interactions that occur at government and non-government levels, with ASEAN as a discrete entity and with individual member countries. Often, that relationship proceeds through different avenues and levels simultaneously.

In reviewing the outcomes of Australia’s current FTAs with Singapore and Thailand, the committee has concluded that the policy of applying a greater focus on tariff barriers in trade negotiations and leaving a tail of negotiation for non-tariff barriers has not always appeared to work to Australia’s immediate advantage. Better information about the cost of non-tariff barriers would greatly assist Australia’s trade negotiators. To this end, the committee has recommended that the Department of Foreign Affairs and Trade develop a single method of costing non-tariff barriers to assist Australian FTA negotiators to identify, evaluate and target barriers to trade. As well, there should be annual reports to the parliament on the impact of individual trade agreements.

The committee is convinced that telecommunications should be an important component of FTAs being negotiated with other countries and has recommended that DFAT ensure future FTAs contain effective telecommunications chapters.

The committee further notes that the recognition of professional qualifications is an important aspect of Australia’s ability to trade with ASEAN member countries. The more widely Australian professional qualifications are recognised, the better Australia’s position to cater to emergent demand in the region. The committee has therefore made recommendations concerning the recognition of professional qualifications and that FTAs should include a professional services working group to assist in creating professional linkages, including mutual recognition agreements.

The committee has reviewed various aspects of Australia’s cooperation with ASEAN in the security arena, including: the defence relationship; combating insurgency, terrorism and transnational crime; enhancing biosecurity and health; and securing radioactive materials.

The committee recognises the wide-ranging and comprehensive contribution of various Australian agencies to the security of the ASEAN region. The security status is bound to fluctuate, but the committee is confident that the level of cooperation will ensure long-term success.

The committee welcomes the development of the ASEAN charter and the creation of an ASEAN human rights body. The new body will raise the profile of human rights and will create an opportunity to bring human rights issues before ASEAN ministers.

In addition, the committee believes there is an opportunity for Australia to progress human rights through its relationship with the Asian Development Bank by using its influence to ensure that adherence to core labour standards becomes a precondition for loans from that bank.

Regarding human rights issues, I note that the committee’s Human Rights Subcommittee is currently reviewing international and regional human rights mechanisms to identify possible models that may be suitable for the Asia-Pacific region.

The committee is satisfied with the provision of aid to Burma and the AFP’s explanation of its involvement with the Burmese police force. Nevertheless, there needs to be constant awareness of the possibility that the current Burmese regime will misuse the Australian assistance provided, and a willingness to withdraw this assistance should such evidence come to light.

The continuing detention of the Burmese opposition leader Aung San Suu Kyi continues to be of concern. The committee endorses the recent statement on the issue by the Minister for Foreign Affairs and calls for Aung San Suu Kyi’s immediate and unconditional release.

Turning to the challenges created by climate change, the committee believes there are significant opportunities for Australia to offer leadership and technical assistance to ASEAN member countries. In the committee’s view, Australia’s present climate change engagements in the region, both government and non-government, are a good basis for meeting these challenges. They contribute to positive relationships in the region and, by enhancing capacity within ASEAN member states, build a foundation upon which future collaborations can occur.

Arising from its review of human rights and environment issues, the committee considers that human rights, core labour standards and the environment should be pursued in future FTAs. Australia should also take the opportunity to introduce such issues, if they are not already included, when current FTAs are reviewed.

In closing, I would like to thank all those who provided submissions and gave evidence at the public hearings. Finally, I thank my colleagues on the Foreign Affairs Subcommittee, and the secretariat.

I commend the report to the House.

12:10 pm

Photo of David HawkerDavid Hawker (Wannon, Liberal Party) Share this | | Hansard source

by leave—I join with the member for Fremantle in speaking on this report on behalf of the opposition members of the committee. The Joint Standing Committee on Foreign Affairs, Defence and Trade regularly reviews Australia’s relationships with other countries and in recent years the committee has focused on Australia’s relationship with its northern neighbours. This has included major reports on relations with Indonesia and with Malaysia. This report extends this focus by reviewing Australia’s relationship with ASEAN, an organisation comprising 10 countries to Australia’s north. To illustrate the importance of ASEAN as a major trading partner, Australia has free trade agreements with two countries in ASEAN—Singapore and Thailand—and treaties with Indonesia and Malaysia are being contemplated.

During the course of the inquiry, Australia and New Zealand concluded an FTA with ASEAN. The agreement was the first multicountry FTA Australia had negotiated and was the most comprehensive treaty ASEAN had entered into. This FTA is regarded as a platform for further trade liberalisation both between Australia, New Zealand and ASEAN and as a way of assisting ASEAN’s plans to establish an ASEAN economic community by 2015.

The committee considers that FTAs—bilateral and multilateral—will become an increasing part of the trade environment in which Australia operates. This will be ensured by the continued growth of Asia and the trend towards trade and other forms of integration between countries. Because of this, it is important that FTA negotiators ‘get it right’ when striking agreements with Australia’s trading partners. The committee has made several recommendations concerning FTAs which pertain to existing agreements when they are reviewed and FTAs being contemplated.

Australia has had equivocal outcomes with respect to the FTAs with Singapore and Thailand. In particular, the gains made by the Australian automotive industry in the Australia-Thailand FTA, known as TAFTA, have been countered by the emergence of non-tariff barriers. The outcomes arising from TAFTA underscores the importance of quantifying the benefits or costs of such agreements once they are concluded and, to this end, the committee has recommended that the Department of Foreign Affairs and Trade report annually to the parliament on the impact of individual trade agreements.

Trade in services provides significant opportunities for Australia, and the telecommunications sector has been identified as a high priority for expansion of Australia’s export trade. Further development in telecommunications, and knowledge-economy activities in general, would allow Australia to build on and go beyond the reliance on education and tourism, enhancing efforts to achieve a more favourable balance of trade.

Integral to facilitating trade in services is the mutual recognition of qualifications. The committee received evidence that this is an area which should be addressed and has recommended that when future bilateral free trade agreements are negotiated, or when existing agreements are reviewed, the government should take steps to assist in the creation of professional linkages, including mutual recognition agreements.

Security to Australia’s north has always been a concern and the committee has reviewed various aspects of security in the region. The interaction of Australian agencies with counterparts in the ASEAN region is widespread, but it is important that Australian agencies remember to use the various forums provided by ASEAN, and the focal point of Australia’s diplomatic missions, to maintain agency-to-agency links and communications.

The committee also notes the work being undertaken in the areas of biosecurity and health by Australia in collaboration with ASEAN member countries. The enhancement of biosecurity in ASEAN can expand outwards Australia’s quarantine border and provide early warning and improved response to emerging threats. As well, work in the health area not only improves the wellbeing of ASEAN member countries and thereby its security but also protects Australians travelling overseas.

The committee considers that it is in Australia’s interests to assist ASEAN member countries in securing their nascent nuclear infrastructure and their radioactive sources. ANSTO, through its ongoing engagement with the region, is well placed to provide that assistance and in the long term may be able to assist, should ASEAN members introduce nuclear power. The committee believes that there is merit in ANSTO attempting to seek a commercial return from its experience and goodwill in the region by engaging suppliers of nuclear and radioactive materials to the ASEAN region with a view to ANSTO providing safety and security advice to ASEAN member countries.

Turning to human rights, the committee received criticism of the Australian Federal Police’s involvement with the Burmese police force. The committee sought justification from the AFP as well as the guidelines governing that relationship. The AFP was able to provide evidence of the outcomes of the relationship. These have included the arrest of drug traffickers and the destruction of heroin production laboratories in Burma. Nevertheless, as the AFP has acknowledged, there are connections between the ruling junta, the military and the Burmese police force. Australia must be careful that assistance to Burma is not abused. Concerning the continuing detention of the Burmese opposition leader, Aung San Suu Kyi, I would like to add my support to the comments made by the honourable member for Fremantle and the call for her immediate and unconditional release.

In conclusion, the committee has found Australia’s relationship with ASEAN to be deep and comprehensive. The relationship will continue to mature and change. Doubtless there will be challenges, but I share the committee’s confidence that the goodwill exists to overcome them. I too would like to thank all members of the committee for their involvement. Also, I particularly thank the committee secretariat for their support. I commend the report to the House.

12:17 pm

Photo of Peter SlipperPeter Slipper (Fisher, Liberal Party) Share this | | Hansard source

I move:

That the House take note of the report.

In accordance with standing order 39, the debate is adjourned. The resumption of the debate will be made an order of the day for the next sitting.