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``Chapter Two: Strategic Outlook
2.1 Australia’s security, and the future challenges we must be prepared
for, are intimately tied to developments in both our regional and the
global environment. This chapter describes Australia’s strategic outlook
for the next two decades based on a comprehensive analysis of the
security challenges most likely to affect defence planning and capability
decisions in the coming years. Chapter Three outlines the Government’s
strategic defence policy in response to these challenges.
SECTION ONE STRATEGY
2.2 Our nearer region, which encompasses Australia’s borders and offshore
territories, Papua New Guinea, Timor-Leste and Pacific Island Countries
and maritime South East Asia, is of most immediate importance for
Australia’s security. The wider Indo-Pacific region, from the Indian
Ocean to the Pacific Ocean connected by South East Asia, through and
within which most of Australia’s trade activity occurs, will be central
to our national security and economic prosperity. Beyond our region,
Australia’s security and prosperity depends on a stable rules-based
global order and the flow of goods, services and finance free from
threats such as terrorism.
Australia’s security environment
2.3 Australia is well placed to benefit greatly from the economic growth
in the Indo-Pacific region. We are a major advanced economy with
strong bilateral and regional ties, and we are building those ties to
provide more economic opportunities for Australia. Three Free Trade
Agreements, with Korea, Japan and China, have entered into force since
December 2015. The Trans Pacific Partnership between 12 regional
nations, which account for 40 per cent of global trade, including the
United States, Japan and Australia, has great potential to further drive
opportunities for growth in Australia. Beyond the Indo-Pacific the global
2016 DEFENCE WHITE PAPER