Australia Yearbook - 2001

96 Year Book Australia 2001
mistakes, and the global pressures which bear
especially heavily on small, isolated states. They
are problems which will not be solved easily or
quickly. Australia currently provides over $500m
annually to the independent countries of the
region in development assistance—more than
any other donor—and, along with New Zealand,
maintains an extensive diplomatic network in
island capitals.
A shared background and experience, and a
multi-faceted relationship, incline Australia
naturally towards a unique partnership with
New Zealand, which is Australia’s third-largest
export market.
Australia has a long-standing, close relationship
with Papua New Guinea (PNG), whose location
makes it of strategic importance to Australia.
Pursuing a constructive and productive bilateral
relationship is a high priority for Australia and we
will continue to support a process of sustainable
economic development in PNG, aimed at
enhancing its self-reliance.
Australia’s engagement in the South Pacific will
remain both broad and deep, and Australia will
continue to support local efforts both to advance
development and, where necessary, restore
stability, in cooperation with those other
countries and institutions which have their own
long-term relationships with the region.
India
India has growing strategic and economic
importance in global and regional affairs and is an
important dialogue partner for Australia in a
range of international forums. Prime Ministerial
and Ministerial visits to India in 2000 have
strengthened our bilateral ties, which are already
rich in cultural and sporting areas. Australia’s
future focus will be on expanding further the
bilateral trade and economic relationship.
Europe
Australia has close ties with many of the countries
of Europe. We share important social, cultural,
historical and political experiences. Europe is a
leading participant in key forums such as the
Group of Eight (G8), the OECD and the WTO.
As one of the key economic centres of the world,
Europe is important to Australia’s trading
interests. Europe as a single market is the largest
foreign investor in Australia. The United Kingdom
is the second largest single country investor in
Australia and is Australia’s second largest
destination for outward investment.
The key central and south-eastern European
markets for Australia are Poland, Hungary, the
Czech Republic and Romania, while the smaller
transition economies—Slovenia, the Slovak
Republic and Bulgaria—also offer some trade
opportunities for Australia. Membership of
European institutions—the EU and the North
Atlantic Treaty Organisation (NATO)—by these
central and eastern European countries would
lead to them becoming more important bilateral
partners for Australia.
Canada and Latin America
The close historical and cultural ties Australia has
with Canada will continue to be the basis for an
active trade and investment relationship, and
close cooperation on international issues. In Latin
America, our efforts are focused on expanding
Australia’s trade and investment relations. The
size and diversity of the markets in the region
offer significant opportunities for Australian
exporters and investors. As well as supporting the
efforts of individual Australian businesses in Latin
America, Australia pursues a productive
relationship with Latin American countries on a
range of international political issues.
The Middle East and Africa
Australia has growing commercial interests in the
Middle East, a significant destination for
Australian agriculture, services and manufactures
exports. Australia’s most significant relationship
in Africa is with South Africa, which is a growing
market for Australia’s commercial interests and
provides a base for trade with all the countries of
the Southern African Development Community.
Australia’s security interests
Australia’s national security and its economic
interests are inextricably linked to the security
and stability of a broad region which
encompasses South-East Asia, the South-West
Pacific and Eastern Indian Ocean. It also includes
North-East Asia, because the security of South
East Asia cannot be separated from the rest of
East Asia and because of the direct consequences
of instability in North-East Asia for Australia’s
wellbeing. Any threat to the security of East
Asia—from tensions to the extreme of
war—would have immediate and adverse effects
on Australia’s national security and our major
export markets. The potential for developments
in the Asia Pacific to affect Australia’s security and
economic interests is the basis for the high
priority that Australia places on ensuring regional
stability.