Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

Australia's international trading and investment relationship with the 10 member nations of the Association of Southeast Asian Nations continues to grow. A 19.8 per cent annual growth in trade was recorded with Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. In 2018, total merchandise trade, including imports and exports, amounted to $90.5 billion, representing 13.7 per cent of Australia's trade. Major Australian exports to ASEAN countries included crude petroleum, coal, natural gas and gold. In turn, major Australian imports included refined petroleum, heavy goods vehicles and passenger motor cars.

The ASEAN bloc is ranked as Australia's eighth-largest trading partner. In the area of services, there was an annual growth of 9.2 per cent recorded in 2018, with education related travel, personal travel and transport accounting for the major categories. Collectively, ASEAN nations recorded real GDP growth of 4.8 per cent in the 2019 year, with inflation running at 2.6 per cent. Australia's foreign investment in ASEAN countries is a healthy $106 billion, while ASEAN investment in Australia amounts to $118 billion.

It is important to continue building Australia's relationship with ASEAN member nations, for a number of strategic reasons. Firstly, there is Australia's geographic proximity to South-East Asia, with similar time zones. Secondly, diversification of our trading relationships makes our economy less susceptible to international economic cycles. Thirdly, the member nations of ASEAN are emerging democracies with similar shared values and relatively low sovereign risk, allowing cooperation on regional defence and national security issues. Lastly, in our multicultural society we have close ties with many of the countries of the ASEAN region through immigration and international education schemes such as the New Colombo Plan.

Last year I participated in the ASEAN parliamentary delegation to three countries—Vietnam, Thailand and Brunei—to foster diplomatic and trade relations. Australia has recently invested in new embassies in Jakarta, Indonesia, and Bangkok, Thailand, to strengthen our strategic diplomatic presence and foster greater cooperation in the region. Through diplomatic assistance and Australian aid, we can assist developing nations in our region along the path to economic development, making them future trading partners. We were pleased to host a visiting ASEAN delegation to Canberra last week.

Organisations such as WA Singapore Business Connect assist businesses to navigate the boundaries and challenges of international trade by connecting participants from the public and private sectors, facilitating trade and business related knowledge exchanges and identifying and exploring cross-border inbound and outbound opportunities.

Greater cooperation with ASEAN countries on issues such as visas and work permits, and mutual recognition of qualifications of technical standards, will serve to break down the barriers and streamline business dealings between countries. Synergies exist when nations are permitted to specialise in areas of competitive advantage, to trade globally in those goods and services. Our vision must be towards open markets with free trade.

Australian businesses must be incentivised to develop export markets in the ASEAN region, tapping into increasing consumer demand in these emerging economies. Market development opportunities exist in the mining and minerals sector, energy, agriculture and fisheries. The scope for increasing the exchange in financial, legal, medical and professional services must also be explored. Greater diversification of Australia's export markets and international trading relationships spreads the risk and shields our domestic economy from fluctuations in global economic cycles.

The federal government has prioritised international trade and investment by finalising free trade agreements and strategic economic partnership agreements with a number of nations in our region in order to promote economic development. The Australian domestic market is relatively small, with a population of 25 million. Our industry will benefit by accessing demand from larger consumer markets overseas.