House of Representatives

Monday, 3 June 2013 HOUSE OF REPRESENTATIVES 5
petitioners to think not only of the problem but of what
they would like changed, introduced or resolved.
I thank the House.
Foreign Affairs, Defence and Trade Joint
Committee
Report
Ms SAFFIN (Page) (10:09): On behalf of the Joint
Standing Committee on Foreign Affairs, Defence and
Trade I present the trade subcommittee's report,
entitled Australia's trade and investment relationship
with Japan and the Republic of Korea. The committee
welcomed the opportunity to examine Australia's
relationship with two of our most important trading
partners. I will first turn to Japan.
The importance of the Australia-Japan relationship
should not be obscured by the rise of other countries.
Japan was Australia's number one trading partner for
over 40 years, and today remains second only to China.
In that time Japan has made a significant contribution
to Australia's prosperity, originating with its
investment in the resources and energy sector in the
1960s.
Today Japan is Australia's third-largest source of
foreign investment, totalling $123.4 billion in 2011. It
is also Australia's second-largest market for food and
agricultural products, with safe, high-quality food and
reliable supply from Australia making a significant
contribution to Japan's food security. On the other side
of the ledger Japan is Australia's third-largest source of
imports, with products such as cars and manufactured
goods in high demand by Australian consumers.
Today Japan is moving toward trade liberalisation
and agricultural reform, including negotiating a freetrade
agreement with Australia. This agreement is a
significant milestone: Japan's first with one of its top
six trading partners, and first with a major developed
economy.
The committee strongly supports the FTA, or freetrade
agreement, negotiations. The services sector is
one area expected to benefit from the FTA. Education
and tourism are two of Australia's most important
services exports. The committee supports efforts to
attract more visitors and international students to
Australia. The committee heard that Australia's
particular expertise in financial services is being
increasingly recognised in Japan, a country with the
world's second-largest pool of investable wealth. Both
countries' expertise is also being capitalised upon in
investment projects, and in particular through joint
ventures in third countries.
The committee has recommended that the
government showcase the marketing of Meat and
Livestock Australia in its export facilitation activities.
In the committee's view, approaches like that of MLA's
'Aussie Beef' promotion can reduce competition
CHAMBER
between individual Australian brands, improve
customer awareness and tap into Japanese perceptions
of Australian food as safe, high-quality products.
I turn now to the Republic of Korea. Korea is
Australia's fourth-largest trading partner, and a country
with which Australia shares a longstanding and
complementary relationship. After the Korean War,
Australian exports of raw materials supported Korea's
industrial development from the 1960s onwards.
Indeed, energy, minerals and metals exports continue
to be the bedrock of the ongoing relationship.
The committee heard about significant growth in
Korean investment to secure Korea's ongoing energy
needs. Korean companies are taking increasingly large
stakes in a number of Australian resources projects.
With 70 per cent of its food needs met from imports,
Australia also has an important role to play in Korea's
food security—providing safe, high-quality food to our
fifth-largest agricultural export market. In turn,
Australia continues to demand Korea's consumer
products, including cars, electronics and refined fuels.
Korea's active free-trade agreement schedule,
including negotiations with Australia, occupied a
central role in our inquiry. With Korea's FTAs in force
with the United States and European Union, the
committee was concerned about the implications of
ongoing delays in concluding our own agreement.
Considerable attention has been given to the
implications for Australia's beef exports to Korea, our
third-largest beef export market, as well as other
outstanding issues, such as investor-state dispute
settlement. I thank the trade subcommittee, and
particularly my deputy chair, the honourable member
for Maranoa—can I get an extension, Speaker?
The SPEAKER: No.
Ms SAFFIN: That is a shame.
The SPEAKER: That is a shame. I am terribly
sorry.
Mr Bruce Scott: I want to give her an extension of
time; she is saying something nice about me.
In accordance with standing order 39(f) the report
was made a parliamentary paper.
Mr BRUCE SCOTT (Maranoa—Deputy Speaker)
(10:15): I rise with pleasure to support the tabling of
our report from the Joint Standing Committee on
Foreign Affairs, Defence and Trade on the trade and
investment relationship with Japan and Korea. I say to
the chair, the member for Page, that I think one of the
great things we had on the committee was that we all
looked in all our hearings to get the right outcome
without looking at politics. It was about what is the
right thing for Australia. There was wonderful
camaraderie throughout what had been a very long
process. It underpins the importance that the committee