Australia-European Commission
Ministerial Consultations

Canberra, 19 April 2001

Joint Communique

The seventeenth Ministerial Consultations between Australia and the European Commission were held in Canberra on 19 April.  The Consultations were hosted by the Minister for Foreign Affairs, the Hon. Alexander Downer and the Minister for Trade, the Hon. Mark Vaile.  The European Commissioner for External Relations, the Right Hon. Chris Patten, led the European Commission delegation.

In opening the consultations, Australian Ministers recognised the establishment of the permanent Delegation of the Commission of the European Community in Canberra, twenty years to the month, in April 1981.  In reviewing the evolution of the bilateral relationship over this period, Australia and the EC agreed that they were working together successfully to meet global challenges and had wide ranging common interests which reflected longstanding economic, political and cultural links.  Both sides expressed their ambition to develop the partnership further to ensure a vibrant, growing and constructive relationship.

Both sides noted with satisfaction that bilateral economic relations continue to grow even stronger.  In 2000, Australian exports to the EU increased by 16 per cent in value, and EU exports to Australia increased by 10 per cent in value.  EU-Australia bilateral capital flows are also strong and growing.  The level of EU foreign investment in Australia was A$206 billion to June 1999, while the level of Australian foreign investment in the EU was A$71 billion.  The EU is Australia's largest merchandise trading partner, its largest source of foreign investment and Australia's second largest investment destination.  It is also Australia's largest market for services exports.  For the EU, Australia is an important export market accounting for over 15 billion euros in merchandise exports in 2000.

With signs of a slowing global economy, the continued push for global trade reform takes on even more importance.  Both sides expressed their commitment to working for the launch of a new round of multilateral trade negotiations under the auspices of the World Trade Organization (WTO) and to demonstrating the value of an open rules-based international trade system. Both sides agreed on the need to make developing countries stakeholders in the process and noted their respective initiatives in this area.

Australia and the European Commission underlined the positive contribution that open trade and investment make to employment and growth in the global economy.  Both sides recognised that contemporary economic reform and globalisation are having a fundamental effect on our societies and that this has caused apprehension on the part of those who feel adversely affected by the changes.  Both sides acknowledged that these legitimate concerns needed to be taken carefully into account by governments.  Nevertheless, both Australia and the European Commission emphasised the benefits that open trade and investment produced as the source of new jobs and of global economic growth.  They agreed on the importance of working hard to address community concerns and to upgrade their efforts to explain the benefits of open trade and investment for the welfare of their citizens.

Outcome of the consultations

Bilateral relations and cooperation

Both sides agreed to continue their efforts to develop practical initiatives in order to strengthen the bilateral relationship further and give it tangible expression. They reviewed and endorsed the progress that had been made on the cooperation agenda and discussed ways of broadening the scope for cooperation and achieving further progress in existing areas.

Australian Ministers welcomed the establishment this year of a specific EC budget line to fund activities with Australia as an important basis for enhancing the cooperation between Australia and the European Union.

Australian Ministers warmly welcomed the announcement by Commissioner Patten of EU funding to the Australian National University in Canberra to establish a National Europe Centre.  The Centre can be expected to play an important role in further enhancing the links between Australia and the European Union.  They agreed to explore the scope for other education cooperation projects including developing a credit transfer system to facilitate student mobility.

Australia and the European Commission are close to adopting a formal arrangement for bilateral cooperation in consumer policy.  The arrangement will enhance the protection of consumers through communication and information exchanges as well as seek to remedy inconsistencies between Australia and EU consumer laws, standards and guidelines.

To promote the development of the information economy, Australia and the European Commission adopted a joint statement declaring their shared vision for an internationally responsive environment which supports the growth of electronic commerce through providing safe and efficient frameworks for interactions, both business and social, and maximises the potential of the new information economy.  The joint statement outlines the key areas where the two sides will work together to promote confidence and growth in the electronic arena and harmonisation of international standards to facilitate electronic trade.

Both sides recognised the scope for closer collaboration between Australia and the EU in science, engineering and technology research. They noted that the annual Australia-EC Joint Science and Technology Cooperation Committee will meet on 31 May 2001 to review the Agreement's operation and how to improve it.

Against this background, Australia and the EU welcomed the development through combined funding of FEAST (Forum for European-Australian Science and Technology Cooperation).  This initiative will promote opportunities to develop ideas for improving science, engineering and technology between Australia and Europe in the areas of human capabilities, applied research, and emerging research opportunities.  The first FEAST forum will take place on 31 May 2001 in Canberra.

The two sides agreed that Australia and the EU have strong common interests in migration and asylum issues, including irregular migration.  This global phenomenon - facilitated by the advent of highly organised people smuggling - has serious implications for national asylum systems and for the international refugee protection system as a whole.  The two sides agreed that the situation requires a concerted international response.  They agreed to consider establishing a regular senior officials dialogue to identify practical areas for cooperation on immigration and asylum issues.

On development cooperation, both sides reaffirmed their common objectives to help developing countries alleviate poverty and achieve sustainable development.  They welcomed the forthcoming High Level bilateral consultations in Brussels between development cooperation experts.  Australia and the EU agreed that they would continue to work closely together in the Asia Pacific region, particularly in those countries where they are key donors.

Trade issues

Both sides reaffirmed their strong support for the multilateral trading system, as embodied in the World Trade Organization (WTO).  They expressed their strong commitment to efforts to build consensus for the launch of a new round of multilateral trade negotiations at the WTO Ministerial Conference in Doha, Qatar, in November 2001.  Australia and the European Commission will continue to cooperate closely in the lead up to the Ministerial Conference.  Both sides noted that leadership and flexibility, particularly from the major countries and addressing the concerns of developing countries, would be critical in launching a new round.

Both sides expressed their satisfaction with the work that is going on in the mandated agriculture and services negotiations.  They referred positively to the agreement reached to move to a more detailed phase of the negotiations on agriculture and services over the coming months.

With respect to the EC-Australia Wine Agreement, both sides expressed confidence that outstanding issues in the negotiations could be resolved, and expressed their wish to work together in an effort to achieve this as expeditiously as possible.

EU issues

As regards developments in Europe, the discussions focused on the EU economic outlook, EU enlargement and recent developments in the EU's common foreign and security policy (CFSP) and European security and defence policy (ESDP).  The EC highlighted that significant economic growth is continuing in the EU notwithstanding a slowing global economy.

Australia stated its particular interest in the development of the European Rapid Reaction Force, outlined by the European Commission. It was noted that the future enlargement of the EU would be an important factor for stability and prosperity in the region and in potentially generating new trade and investment opportunities.

International issues

On climate change, discussion focused on the recent developments in US policy and the implications for the EU and Australia. Both sides noted the work done to date on the Kyoto Protocol.  They confirmed their commitment to addressing climate change and underlined the importance of US participation in an effective global framework to that end.

The European Commission and Australia exchanged views on developments in the Balkans, particularly in the Former Yugoslav Republic of Macedonia.  The European Commission outlined the efforts which the European Union was making to resolve the situation.

Both sides exchanged views on the situation in the Asia Pacific.  Australia reaffirmed the crucial importance of the Asia Pacific in its international relations.  The European Commission emphasised the EU's continuing interests in the Asia Pacific. It reaffirmed the EU's commitment to the region through strong bilateral relations with states in the region, trade and investment ties, and participation in regional fora and through significant development assistance.

The European Commission outlined the new Asia strategy that the EU is developing, for release later in the year. Australia outlined priorities in APEC this year as well as other regional trade initiatives including AFTA-CER and its bilateral FTA negotiations with Singapore.

Both sides exchanged views on key issues for Australian and the European Union arising from the change of United States Administration.  Economic developments in the United States, Japan and East Asia were discussed by both sides and Australia provided an assessment of the implications for the Asia Pacific region.

Conclusions

The two sides agreed to maintain the recent renewed momentum of high-level ministerial and senior officials contacts and agreed to meet again in Brussels for a further round of Ministerial Consultations in 2002.