Daryl Melham (Banks, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Foreign Affairs. What is the significance to Australia’s economy of the visit to Australia by Japanese Foreign Minister, Seiji Maehara?

Kevin Rudd (Griffith, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The honourable member’s question goes to the significance of the Japanese economy to Australia’s future economic wellbeing. From Australia’s point of view, with Japan all the figures are big figures. This is our second-largest trading relationship and our second-largest export market. It delivers to Australia the largest merchandise trade export of any country. Japan is also our third-largest source of foreign direct investment, an accumulated stock of something like $102 billion. There are some 10,000 Japanese students in Australia. There are 650 sister school relationships. And Australia hosts 355,000 Japanese tourists each year. These are big figures for Australia’s economic future.

We welcome Japan’s recent expression of interest in joining the Trans-Pacific Partnership. We also look forward to being able to develop with Japan a comprehensive bilateral free trade agreement in the future to further underpin economic growth. That is why the government has today welcomed the visit to Australia by the Japanese Foreign Minister. The Minister for Trade, Craig Emerson, spent the better part of the morning with Minister Maehara on the details of our FTA negotiations. The minister advises me that these were very good and substantive negotiations. From Australia’s point of view, their successful conclusion is important. The minister will also be calling on the Prime Minister later in the day and I will be continuing my own discussions with him as well.

When it comes to the future of the Japanese economy, we have a big interest in the economy of Japan continuing a program of fundamental economic reform. The current government of Japan, of which Minister Maehara is a leading member, has in recent days adopted new and significant reforms to underpin long-term productivity growth in Japan, including a new basic policy on agricultural reform and a new basic FTA policy as well. These are unprecedented and we believe that they point in a very positive direction in terms of this country’s interests in Japan.

Beyond the economic, investment and trade relationship, our partnership with Japan also enters into the political and security space. Australia and Japan share a strong commitment to nuclear nonproliferation, arms control and disarmament. Minister Maehara and I have recently formed a cross-regional grouping within the United Nations committed to implementing the recommendations of the nuclear nonproliferation review conference convened earlier this year. Furthermore, this work builds on excellent work done by two former Japanese and Australian foreign ministers, including foreign minister Evans, in the International Commission on Nuclear Non-proliferation and Disarmament, which concluded its work at the end of last year. This represents the best available global blueprint on the future of the arms control, disarmament and nonproliferation agendas.

Minister Maehara and I have also discussed the recent troubling developments on the Korean Peninsula. Australia and Japan share a profound concern about the new evidence concerning North Korea’s uranium enrichment program. Australia and Japan are continuing to work closely with the United States and the ROK to develop appropriate responses to these latest revelations. Australia and Japan enjoy a close and cooperative relationship. From the point of view of Australia’s long-term security and economic wellbeing and interests, this is a first-class relationship of deep significance.