AUST: No concessions to restart China FTA talks
Updated
Australia is not making concessions to China to encourage the Asian giant into an earlier free trade agreement. Trade Minister Simon Crean says media reports that investment barriers are being lowered are simply wrong. The two nations have been in negotiations for three years with little progress, while New Zealand signed an agreement with China two weeks ago.
Talent: Australia's Trade Minister Simon Crean.
SNOWDON: There's a new administration in Canberra, a new Chinese Commerce Minister and a new hope for a free trade agreement.
Simon Crean says the visit by Prime Minister Kevin Rudd last week and talks at the top level have unlocked the negotiations.
There's been a bit of plain speaking to.
CREAN: We've indicated there is no point pretending we can have a bilateral relationship built round the framework of an FTA, when that framework has been stalled for three years.
Now if you don't want an agreement, let's call it off. But if you do want an agreement, let's get down to serious negotiations. You ask me what the difference is.
SNOWDON: So, you've had to make a threat?
CREAN: No, I would say the difference is that we've got a government now in office that is genuine about improving our economic relationship with China.
SNOWDON: He says Australia has not made special concessions, such as reducing foreign investment guidelines for Chinese companies keen to gain resource assets, in return for a government commitment to the FTA talks.
CREAN: No, it hasn't. What we've done is to re-engage them and to ascertain whether the political will is there to conclude a free trade agreement, but no concessions, no commitments have been made.
SNOWDON: It's been a topic of speculation, because in February, Canberra boosted its foreign investment guidelines for government sovereign wealth funds or government linked corporations. That was in direct response to the 14 Billion dollar stake a Chinese Government linked company took in mining giant, Rio Tinto. That raid was in itself a response to the takeover offer for Rio by the world's biggest miner, Australia's BHP Billiton. Both companies are Australian listed and major suppliers of essential commodities like iron ore to China, which is keen to expand in Australia's resources sector to secure supplies for its industries.
Simon Crean met with both companies prior to his trip to Beijing.
CREAN: Well, I think it's important if you representing Australian business interests in China or anywhere in the world for that matter, you have discussions with them about what their concerns are.
Now it's important for us to understand the issues that are important to Rio, to BHP, when it comes to resources.
SNOWDON: Were the companies keen for you to unravel any problems their having with sales at the moment, say for iron ore?
CREAN: They did not ask us to get involved in the commercial end of the business. We've made it clear that to China, that wants long term energy supply, Australia can be a reliable supplier for the long term, provided it's done on market principles.
Now I think China accepts that, but the question of investment flows, the question of long term reliability of supply, what is the government doing to ensure that there will be sufficient infrastructure, all of those sorts of issues come up for discussion.
SNOWDON: Australia has made the opening of China's services sector, including financial services to Australian companies a priority in the free trade talks. It's achieved a special ministerial level round table for the purpose, to be co-chaired by Simon Crean and his Chinese counterpart, Commerce Minister, Chen Deming.
Simon Crean again.
CREAN: I'm absolutely committed to ensuring that services plays a key part in these negotiations. We're asking for services, their asking for investment.
SNOWDON: And in your meeting with the Commerce Minister in China, did he want to discuss Australia's new foreign investment guidelines as it affects China's foreign direct investment here in Australia?
CREAN: Now, these issues were raised, because as you know there are applications that the Chinese have made for investment into Australia and we made that clear to the Chinese. It will be considered through the appropriate processes.
