Australia Yearbook - 2001

Chapter 3—International relations 97
The key components of Australia’s security
strategy are maintaining a strong national defence
capability, the security alliance with the United
States, developing bilateral defence and security
relationships with the countries throughout the
Asia Pacific, and strengthening multilateral
security links in the region, especially the ASEAN
Regional Forum (ARF).
Regular bilateral security dialogues with countries
in the Asia Pacific, and with key partners beyond
the region, provide an opportunity to share views
on a wide range of regional and global security
issues, promote transparency and reinforce
Australia’s commitment to working cooperatively
with regional countries on security issues.
Australia has increased the number of countries
with which it has such dialogues, as part of its
long-term strategy of promoting shared security
perceptions in the Asia Pacific region.
The ARF is an important means of encouraging a
sense of strategic community in a region where
there is little history of inclusive multilateral
approaches to security or defence. It
complements the central role of bilateral links in
dealing with global and regional security issues,
and has an important role in encouraging
regional support for international regimes against
the proliferation of weapons of mass destruction
and their missile delivery systems. One of the
features of the ARF in 2000 was the participation
for the first time of the Democratic People’s
Republic of Korea (DPRK). Australia has been
very much part of the process of seeking to
engage the DPRK more constructively with the
regional and international community. Australia
announced the re-establishment of diplomatic
relations with the DPRK in May 2000.
Australia is working in the ARF to develop norms
of regional behaviour aimed at avoiding conflict
and settling disputes. Australia is encouraging the
ARF to take a more central role in discussing and
managing issues that threaten stability or
confidence, and is taking an active role in
expanding the ARF’s confidence-building agenda
and moves to develop its capacity for preventive
diplomacy.
Global issues can also have significant security
implications for Australia. The risk of global
conflict diminished considerably with the end
of the Cold War, but other potential threats
remain. Developments in Europe, the Middle East
and South Asia have the potential to disrupt
global security. Serious instability in other parts of
Asia, such as continuing tensions between India
and Pakistan, could have implications for the
security of the Asia Pacific.
Australia has made a major contribution to the
significant progress in establishing international
regimes to prevent the proliferation of nuclear,
chemical and biological weapons and of missiles.
Australia’s future efforts will be concentrated on
ensuring that these regimes are implemented and
remain effective and, where necessary, are
strengthened. Considerable effort is being
devoted to initiatives to bolster the international
legal regime against biological weapons. Australia
will continue to encourage adherence to the
international regime banning the use, stockpiling,
production and transfer of anti-personnel
landmines. These efforts will continue to be
complemented by Australia’s commitment to
practical measures such as landmine clearance,
victim assistance and mine clearance technology
programs.
Australia’s economic
interests
Australia’s economic wellbeing and growth
depend on a competitive domestic economy and
access to foreign markets. Trade policy, industry
policy and microeconomic reform go hand in
hand to provide Australian business with the
competitive foundations and opportunities to
thrive in an increasingly globalised marketplace.
As with Australia’s security interests, Australia’s
economic interests are most closely engaged in
the Asia-Pacific region. In 1999–2000, 53% of
Australia’s merchandise exports went to East
Asian countries and 73% to APEC members, the
destination also for over half of Australia’s foreign
direct investment. East Asian markets are, and will
remain, important for Australia.
Australian trade policy combines an integrated set
of bilateral, regional and multilateral efforts aimed
at achieving the best possible market access
outcomes for Australian business and advancing
Australia’s commercial interests. To this extent,
Australia’s trade strategies focus on reducing
barriers to Australian goods, services and
investment in foreign markets, developing those
markets, and promoting Australia as a supplier
of goods, services and investment.
The main regional and multilateral forums are
APEC and the WTO. Other practical steps, such
as developing closer links between Australia’s