Ursula Stephens (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Foreign Affairs, Senator Bob Carr. Can the minister please update the Senate on the main outcomes from the APEC leaders meeting that concluded in Vladivostok yesterday?

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

A major outcome from the APEC leaders meeting was the agreement to a list of 54 environmental goods that will attract a tariff of no more than five per cent by the end of 2015. As my colleague Dr Craig Emerson has said, this has been one of the most important trade liberalisation outcomes since the 1995 WTO Uruguay round of tariff cuts. It is also a significant outcome for APEC's effort to transition towards a low carbon future. It demonstrates that despite the global economic downturn, a group of economies can work together to open up trade.

Australia has been a leading advocate of the environmental goods initiative since it was first proposed two years ago. The Vladivostok outcome will allow the market for environmental goods to grow more rapidly by lowering costs faced by consumers. Australian officials, it should be noted, played an important role in ensuring that there was a large number of goods on the reduced tariff list.

APEC leaders also agreed to a major new work stream on higher education. This will enhance cooperation between APEC members and facilitate trade in education services within the region, a critical market for Australia.

Leaders also agreed on a number of measures to enhance food security—to foster innovation and to reduce the cost of doing business. We cannot overlook the size of this market. APEC's economies account for 56 per cent of the world's GDP and more than 70 per cent of Australia's trade in goods and services. By some measures the economies of APEC are our most important trading customers.

Ursula Stephens (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister outline to the Senate how the outcome on environmental goods will actually benefit Australia?

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The products covered by the commitment on environmental goods include solar water heaters, components to reduce the release of pollutants and machinery to process water and waste water. Australia's export of environmental products on the list of 54 goods was valued at $1.2 billion in 2011. As Dr Emerson has pointed out, the total value of the environmental goods market in the APEC region is estimated at around $432 billion. In other words, there is a significant potential for Australian businesses in these sectors.

The outcome will provide Australian companies with more opportunities to trade with the region in crucial technologies such as solar cells, water treatment and environmental-monitoring equipment. As economies have a greater uptake of these products it will also provide Australian environmental services companies with further export opportunities. (Time expired)

Ursula Stephens (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister also outline how the outcomes on higher education will benefit Australia?

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The Asia-Pacific contains some of world's largest exporters and consumers of education services. Australia is already a major player in higher education in the region with $10 billion in exports in 2011. The new APEC program has the potential to take this further by making it easier for our universities to establish campuses in the region through improving the consistency and transparency of regulations. It will help young people get access to a wider range of quality education services and thereby improve skills throughout the region.

It will help Australian universities integrate further with the region. Many developing economies in the Asia-Pacific are moving into higher-value-added manufacturing and knowledge-intensive industries. Access to a wide range of quality education services is crucial for this type of economic growth, and it is crucial for Australia's engagement in the Asia-Pacific more broadly. (Time expired)