Australia Yearbook - 2001

Chapter 3—International relations 93
Introduction
Australia’s international relations are driven
by its core national interests—the security
of the Australian nation and the economic
wellbeing of the Australian people.
Important elements of Australia’s international
relations are the priority accorded to the Asia
Pacific, and especially to the countries of East
Asia, the strengthening of bilateral relationships
with the United States, Japan, Indonesia and
China, the commitment to further international
trade liberalisation, and strong support for the
World Trade Organization (WTO) and Asia Pacific
Economic Cooperation (APEC). Australia has
global interests which require broad international
engagement, and the priority Australia attaches to
its relationships with the countries of the Asia
Pacific does not diminish the important interests
Australia pursues in the Americas, Europe and
elsewhere.
In addition to maintaining and developing strong
bilateral relationships, Australia’s international
interests are advanced through participation in
regional or global institutions and forums. For
example, the negotiation of multilateral trade
agreements enhances access to foreign markets
for Australian exports. Australia also has a strong
national interest in helping to guard against the
spread of nuclear weapons, especially in the
Asia-Pacific region. It has therefore been active
globally and regionally in support of the
development of, and adherence to, international
non-proliferation and disarmament regimes.
Our international relations are also shaped by
economic globalisation and the revolution in
international communications. Globalisation
offers opportunities for internationally
competitive economies, but also brings
challenges for political and economic
management. It has profound implications for
trade and economic policy. It blurs the division
between foreign and domestic policy, increases
competitive pressures in markets, and makes
globally based trade rules and disciplines even
more important. But while globalisation reduces
the effective room for manoeuvre of national
governments in some policy areas, law-making is
still the prerogative of national governments and
the nation state remains the primary force in
international relations.
Relations with Asia have a profound influence on
Australian foreign and trade policy. Australia’s
engagement with the countries of Asia is
extensive and has been built over many decades,
despite the more recent economic downturn in
the region. We engage with our region for a
number of reasons. What happens in our own
region will affect us more deeply and more
quickly than events that occur in most other areas
of the world. Australia has substantial trade and
economic interests at stake in the region. Even
with the effects of the East Asian economic crisis,
East Asia takes more than 50% of all our exports,
and even more is transported through the region
to markets elsewhere in the world. Australia
continues to seek closer engagement with Asia
because of the profound benefits that flow from
our relations with countries of the region and the
realisation of our mutual interests.
Australia’s credentials and
place in the international
system
In its international relations, Australia uses its
assets—economic, strategic and cultural—as well
as an international reputation as a responsible,
constructive and practical country. The values
which Australia brings to its international
relations are the values of a liberal democracy.
These have been shaped by national experience
and given vigour through cultural diversity. They
include the rule of law, freedom of the press, the
accountability of the government to an elected
parliament, and a commitment to a ‘fair go’.
In terms of Gross Domestic Product, Australia
ranks fourteenth in the world. We have a modern
industrial economy with a sophisticated
manufacturing and services base. And the
Australian economy has been performing
strongly, especially through the challenge of the
East Asian financial crisis. Over the past decade,
Australia has had the fifth fastest growing
economy in the Organisation for Economic
Cooperation and Development (OECD),
outperforming the United States, Canada and
most of the European Union.
Australia has a strong skills base, high quality
education and training institutions, advanced
physical infrastructure, and adoption and usage
rates for information technology which are
among the highest in the world. Our strong civil
institutions underpin a free society and
encourage free enterprise. Australia’s cultural
diversity gives Australian society a vigour and
capacity to adapt rapidly to new opportunities.
It is also a rich source of language and other skills
which help us do business in a global economy.