Japan and China key priorities for NSW: Carr

Business Asia, Nov, 2003

In this exclusive interview with Business Asia, New South Wales Premier Bob Carr outlines his views on trade with the Asian region and where his State will find success in the future.

Q: Which countries in the Asia Pacific has the New South Wales (NSW) Government earmarked to form closer ties with?

NSW aspires to ever closer ties with all the countries of Asia and the Pacific. While the focus of some has shifted from the region since the economic crisis in 1997, we must never lose sight of the geographical destiny that makes Asia central to our fortunes over the next century.

There are two great pillars to Australia's relationship with Asia China and Japan. The careful cultivation of these relationships must remain among our very highest priority.

Our oldest regional relationship is with Japan, our largest trading part nor in the Asia Pacific, accounting for more than 22 per cent of NSW total merchandise exports in 2002-03. Sydney has a sister-city relationship with Tokyo, and the Department of State and Regional Development has one of its two overseas offices located there. Bilateral trade and economic arrangements currently underway with Japan will further strengthen our most important trading relationship.

The other pillar, China, is a relationship of extraordinary long-term significance now coming into its maturity after 31 years of diplomatic relations between Australia and The People's Republic.

NSW has its oldest sister state relationship with the most prosperous Chinese province, Guangdong, a relationship we treasure and foster

China is NSW's third largest international trading partner and the fastest growing economy in the Asian region. Growth this year is expected to be around 7.5 per cent, a stunning vindication of China's adoption of "socialism with Chinese characteristics" under the late Deng Xiaoping.

Beijing's successful bid to host the 2008 Olympic Games has also opened up even greater opportunities for NSW to deepen its ties with China.

If I could mention two other Asian partners from among all our other valued relationships in the region, they are Singapore and Thailand.

That is because the inauguration of Free Trade Agreements with these two countries opens up extraordinary new scope for trade and commerce on an equal and accessible footing.

Q: How have world events like the continuing threat of terrorism and the outbreak of SARS earlier this year impacted on NSW's trade with the region?

Of course, trade with Asia has suffered from these phenomena, but we have learnt a very strong lesson from successive crises in the past six years--the lesson of Asia's extraordinary resilience.

We should be extremely heartened by the strong regional and international response to both SARS and terrorism The handling of SARS, especially in China, has been outstanding. Regional cooperation has been smooth and professional That SARS was contained within months reflects well on the entire region, its capabilities, its institutions and its relationships.

I would make the same observation about the region's handling of terrorism issues, which is growing more confident and capable by the day,

In view of these strong responses, I venture to predict that current problems will pose no barrier to sustained growth in the medium to longer term, and NSW firms should reel entirely confident in doing business in Asia

Q: What direct role does your Government play in boosting trade with Asia?

In its third term, my Government remains committed to creating a sound business environment that nurtures internationally Competitive companies. NSW has a world-class, open economy and a Government prepared to assist export capable companies

We also have one of the most diverse, multi-cultural communities in the world, These communities include many successful businesspeople with strong links to our trading partners in Asia They are a very significant economic asset for NSW. This is why my Government is working with these communities to promote trade and create more jobs for the people of NSW.

The Department or State and Regional Development also has a number of programs to help NSW firms identify new market opportunities to export. The Department has Regional Export Advisers who work with local businesses to develop their export plans. Since 1997, they have helped more than 1200 SMEs in regional NSW. The Government operates an extensive program of trade missions and market visits to a range of overseas markets and industry sectors.

In 2002-03, 99 companies took part in trade missions and market visits, During 2003-04, trade missions and market visits are planned to Vietnam, China, Malaysia, Singapore, Japan and Hong Kong,

We have also developed a NSW Exporters Network, which uses an interactive website to allow companies to share their export knowledge, skills and experiences There are now more than 360 NSW companies registered on the Network. The NSW Government also pursues bilateral business opportunities through a network of international sister state relationships and memorandums of understanding with foreign governments in Asia. In addition to Guangdong and Tokyo, we have these special relations with Seoul, Jakarta, and Kelantan (Malaysia).