Two years ago, China and Australia launched negotiations to sign
a free trade agreement (FTA) to expand their economic
cooperation.
Today, although there isn't a copy of any agreement in his
drawer or somewhere on his office desk, the Australian ambassador
to China Geoff Raby has not lost his patience nor any hope of a
deal breakthrough.
Actually, he is expecting an even better result because of the
negotiations so far.
In an exclusive interview with China Daily, Raby said
negotiations were proceeding slowly because both China and
Australia wished to secure a comprehensive win-win agreement.
His comments echo those of Australian Trade Minister Warren
Truss, who met with members of the Australian business community in
Beijing last month to bring them up to date with discussions,
following eight rounds of negotiations. Truss said progress so far
was "mixed" and emphasized the need for patience.
"Despite the two countries' differences on issues such as
agriculture, textiles and automobile products, it won't stop us
from finding a lot of more common ground," Raby said.
"We must rise above those sensitive issues because the overall
benefit of signing a free trade agreement is enormous.
"The current state of cooperation between China and Australia is
excellent, but it has not reached its full potential.
"The maximization of full potential only comes as a result of
removing all sorts of barriers not only at the border but also
behind the border."
Australia is economically the biggest country that China has
negotiated an FTA with, and also one of the few countries in the
world that has a free trade agreement with the United States.
Australia is also in negotiations with Japan.
China already has FTAs with Chile, Pakistan, Jordan and
Thailand.
"Over 50 percent Australia's trade is with East Asia, so you can
see immediately we have extremely deep interests in the region,"
Raby said, adding that this has a very big impact on Australia's
foreign policy.
Figures released early this month from the Australian Bureau of
Statistics show that China, including Hong Kong and Macao, had
overtaken Japan as Australia's biggest trading partner.
Exports and imports between the two countries reached about
US$43.2 billion in the 12 months to March, compared with trade with
Japan of US$41.5 billion.
Trade complementarities will guarantee the rapid growth of
bilateral trade, Raby said.
Australia also has a big capacity to supply China with some big
necessities including natural resources, energy and food.
Most goods in Australia are made in China, but Raby also noted
the rapid growth in services.
Educational exchange is one of the shining examples of how
cooperation benefits both sides.
Last year, more than 100,000 Chinese students were studying in
Australian educational institutions, with about 70,000 in Australia
and another 30,000 in its institutions operating in China.
"The large number suggests that there are few obstacles in our
educational exchanges," Raby said.
"The only thing for us to do is to increase our capacity to meet
your demand, which is very high."
He added that an FTA will definitely enable more Australian
institutions to supply the education market in China.
That works very much to the advantage of Chinese students
because some of them cannot afford to study in Australia, Raby
said.
"So we bring educational institutions to you here in China,
rather than the high cost for them to fly to Australia," he
said.
Environment is another area where China and Australia have a
huge potential to cooperate.
"China is dealing with tremendous environmental challenges. And
Australia wants to be seen as a partner to help China come to grips
with China's environment management issues," Raby said.
Australia has the world's largest deposit of uranium, about 40
percent of the world's total. It is also rich in liquefied natural
gas and has significant expertise in renewable energy, notably wind
power.
"China is world's largest coal producer and consumer, and
Australia is the world's largest coal exporter. So there is a real
affinity of interest between Australia and China," he said.
"The reality is that coal will still be the basis of China's
energy for many years to come. And we are working with China on
developing new clean coal technology, so China can still use the
coal without damaging too much the environment."
Before taking the post of ambassador in November last year, Raby
traveled throughout Australia to talk to people who were dealing
with China, and found a remarkable range of interests closely
related to China.
"In business, finance, commerce, sports and arts, there are
incredible exchanges between Australian and Chinese people," he
said.
"It was amazing for me to find how much China features in
Australians' thinking and how much people are engaged with
China.
"And my role as an ambassador is to build on the momentum and
help to extend the engagement in all areas."
Raby, 53, has worked in China a very long time - on and off for
more than 20 years - and was regarded as one of Australia's most
senior trade officials.
His appointment to China reflects the significance of how
Australia values China - its new, biggest trading partner.
As the host country for the next Asia-Pacific Economic
Cooperation (APEC) forum, which will be held in Sydney in
September, Raby said Australia sees the APEC mechanism as a
principle vehicle for integrating the economy in this region.
He called for liberalized trade and investment flows in the APEC
context bringing a successful conclusion to the Doha round of WTO
negotiations, which aims to lower trade barriers around the world
and permitting free trade between countries of varying
prosperity.
"Only by removing trade barriers can you promote integration,"
Raby said.
He also said China's entry into the WTO was a very good
accession.
"The negotiation for China's entry took a long time. But like
many things it takes time to get good result," said Raby, who has
served as Ambassador and Permanent Representative to the WTO in
Geneva.
"China has been a very good member of WTO since its accession.
It has implemented its obligations. And you cannot separate the
rapid growth in China over recent years from China's accession to
the WTO."
Raby also urged China to take a more active role in the Doha
round talks.
(China Daily May 24, 2007)
