Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is to the Minister for Innovation, Industry, Science and Research, Senator Carr. Does the minister stand by his statement made just prior to the ratification of the Australia-US Free Trade Agreement:

... Australian manufacturers will not be able to get ... benefits out of this arrangement.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Thank you, Senator Abetz, for the question. What I think we need to analyse is the effect of the free trade agreement on manufacturing in recent times. There have been mixed results. The Holden ute, which, it was announced last weekend, is to be exported to the United States, may well be regarded in some people’s view as being an example of the strength of such arrangements. I will point out, however, that there were examples of products—the Monaro and others—exported to the United States for some time that were made prior to any such agreements being signed.

The fact remains that on the manufacturing question, with regard to the US free trade agreement, the results have been mixed. Access to government procurement programs—such as the Joint Strike Fighter, and there might well be others—are examples of where we have seen Australian companies adapt and enjoy access to programs that they otherwise might not have. I know that through the Global Opportunities program in the Department of Innovation, Industry, Science and Research, for instance, some companies have had the opportunity to transform themselves to be able to compete. There have been occasions in recent times when Australian companies were not able to provide the wherewithal to participate in tender arrangements.

The Australian government’s attitude to trade policy, as reflected by Minister Crean, is that we are pursuing trade agreements around the world in a range of different forms. We are very concerned to ensure that market access issues are not an impediment to the development of Australian manufacturing. It has been a matter of some considerable concern to me that there are a number of areas in which Australian manufacturers are not able to enjoy proper market access as a result of a range of non-tariff barriers outside of any agreements and irrespective of agreements. They remain questions that I wish to pursue and I know that Australian manufacturers are most anxious to pursue, and I trust that the opposition will join with the government in ensuring that Australian manufacturers are able to enjoy proper access to markets, whether they be in the United States, Thailand, China, India or anywhere else where we are able to ensure that the makers of high-quality Australian goods are able to enjoy the arrangements that one would expect.

What we do know is that, in terms of our general trading arrangements, Australia’s exports to the United States have grown by only 2.7 per cent in 2006-07. One would hope that these exports will continue to grow even higher than that, and I trust that Australian manufacturers will be able to be very much part of that. I am concerned to ensure that all the barriers are reduced to ensure that there is proper access by Australian manufacturers to these markets.

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Is it not a fact that the removal of the 25 per cent import tariff on utes under the Australia-US Free Trade Agreement is the primary reason—as expressed by Mr Kevin Foley, the South Australian Treasurer—that Holden is now able to export the iconic Australian ute to the United States? Why did the minister studiously avoid mentioning the US free trade agreement in his dixer yesterday about Holden’s impending ute exports? Is it because the minister remains fundamentally opposed to free trade? How can the minister be both opposed to free trade and an economic conservative, as he so laughably claims?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

What I can say is this: the two-way goods and services trade has grown by eight per cent to over $48 billion. Australian exports—

Opposition Senators:

Opposition senators interjecting—

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Would you like to listen? If you do not, perhaps we can move on to something else.

Alan Ferguson (President) Share this | Link to this | Hansard source

Order! Ignore the interjections, Senator Carr, and address the chair.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

I just advise you, Mr President, that clearly the opposition is not interested in the answer. Australian exports grew by 2.7 per cent to $15 billion and those from the US to Australia accounted for 14.6 per cent of the total. What we have seen is that the Holden ute has been able to be developed by a range of factors, including the extraordinary ability of Australian workers, the research and development capacity of Holden and the capacity to enjoy— (Time expired)