THE collapse of the negotiations to conclude the World Trade Organization’s Doha Development Round is bad news for Australian industry and bad news for the future of world trade, Australian Industry Group Chief Executive Heather Ridout said today.
“After the bulk of a workable package had been agreed, it is a real pity that negotiations foundered on a relatively minor issue.
“Although the potential gains of the draft agreement were modest, the failure to clinch a deal represents a body blow to multilateral negotiations and a victory for protectionism,” she said.
“Negotiations on the Round will in all likelihood not resume for some time and the focus will move towards bilateral and regional liberalisation efforts to reduce trade barriers.
“The signing in Canberra today of the Australia-Chile FTA highlights how such agreements can provide early and effective market access gains for business. The new FTA will provide a solid foundation on which to expand and accelerate our business and trading activities with Chile.
“Not only is Chile a growing market in itself but the FTA will also provide a beachhead for increased Australian involvement in the wider Latin American market.
The signing of the FTA by Ministers was followed by the inaugural meeting of the Australia-Chile Bilateral Business Committee chaired by Ai Group in Canberra.
The Chilean Minister for Foreign Affairs and Trade, Alejandro Foxley, and the Australian Minister for Resources and Energy, Martin Ferguson, took part in the meeting.
“The Committee considered ways of maximising the opportunities provided by the FTA in areas such as trade in services, and considered other aspects of the commercial relationship such as cooperation on minerals and energy, taxation arrangements and transport links.
“The principles embodied in the Australia-Chile FTA underline Ai Group’s longstanding policy that it is critical that we vigorously pursue trade liberalisation through multilateral mechanisms as well as bilaterally and regionally. The latter is particularly important given the collapse of the current round of WTO negotiations.
“We are strong supporters of bilateral and regional initiatives that deliver early gains for participating countries, provided that they are consistent with and supportive of the multilateral effort guided by the WTO,” Mrs Ridout said.