Korean trade minister emnphasises shared values with Australia

Updated May 18, 2009 19:43:13

Australian frustration over stalled free trade talks with China has been openly on show for some time now, but at a meeting in the Australian city of Melbourne, between the Australian and Korean trade ministers, the latter has stressed the "shared values" of democracy and a market economy between Canberra and Seoul.

It could be the basis for the "strongest possible relationship" the Korean minister, Kim Hong-joon has said.

Australia's trade minister Simon Crean denied the focus on Korea meant Canberra was going cold on China .. nearly four years after they began free trade talks with the previous Howard government. But if an Australia-Korea deal could be done quickly, it should send a signal, Mr Crean said.

Presenter: Linda Mottram
Speakers: Kim Hong-joon, Korean trade minister; Simon Crean, Australia's trade minister



MOTTRAM: The Australia-Korea talks won't be trouble free. Mr Kim was forthright about a key area .. agriculture.

KIM: No economy on the earth is perfect, so certain countries have certain sensitivities in certain areas. In case of Korea, Korea has a certain sensitivity in agrictural area, that's true, but that does not mean that we would like to carve out totally agricultural area from our agreement. Agriculture will be included in our agreement but with certain consideration eflecting the sensitivities.

MOTTRAM: There is jostling for trade access across the region and Australia's government -- presiding over a declining economy in the global recession -- believes it cannot afford to abandon opportunities, no matter how difficult or complex. It will continue to press China for a trade deal. But Korea, already Australia's fourth largest trading partner, holds out hope for major uranium sales to the reactors that supply more than a third of Korea's power, beef .. which is a race to get in ahead of the United States return to Korea's market, and an array of other products and services .. all under the umbrella of, as Mr Kim called it, shared values.

MOTTRAM: It began as Simon Crean and Kim Hong-joon chatted jovially over the meeting table in Melbourne, in full view of the media, about their optimism for a quick free trade deal between their countries.

KIM: Well you've been talking with China almost two years now?

CREAN: Well we've been talking a year but the previous government for three years (laughter).

MOTTRAM: It was a reference to Australia's stalled free trade talks with China, something that's caused frustration for the Australian government. Mr Crean had been equally frank on the question just days earlier at a small gathering for journalists in Canberra.

CREAN: China ain't exactly your benchmark for speed. (laughs)

MOTTRAM: Still Mr Crean is known for his commitment to the cause of free trade and his determination and he says work on the China deal will continue .. as will work on a deal with Japan, which is also proving elusive for domestic political reasons .. and on multilateral free trade efforts in the deeply troubled Doha Round.

After this visit to Australia by Kim Hong-joon, Korea must appear as a beacon of hope to Mr Crean.

It was just two months ago that the two sides announced they intended to negotiate a free trade agreement. At these first ministerial negotiations, the mood was very optimistic, with talk of picking up the phone to each other if there were any problems at officials level, and the relationship was openly warm. Mr Crean had hosted Mr Kim at one of the Australian rules football season's great spectacles during the weekend.

After their talks, Mr Kim's vision of where a free trade agreement could lead was particularly expansive, and in evident contrast to what might grow from any Australia-China deal.

KIM: Once the market distance is shortened then that means the distance between people gets shortened too and that can be the strongest possible base for the strongest possible relationship. And now that we are sharing the same values of a democracy and market economy, I think we have a whole lot of things to work together not only on the bilateral level but also for many global issues, like climate change, and human rights and even promoting freer movement of persons.

MOTTRAM: Mr Crean, keen to stress that after his five visits as minister to China, progress had been made, nonetheless saw the possibility of sending a signal as a result of a positive outcome with Korea.

CREAN: The fact that we've been having the discussions today with Korea is no indication that we've been going soft, por softening in our position with China. I think the resolve today is to strengthen the hand and show that where the political will exists, progress can be made and to hope that that sends something of a signal as well.

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