Mr SOMLYAY (2:07 PM) —My question is addressed to the Minister for Trade. Would the minister inform the House how this government's trade policy is working to strengthen economic relations with our regional neighbours? How do initiatives within the region fit our overall trade agenda?

Mr VAILE (Minister for Trade) —I thank the honourable member for Fairfax for his question. Obviously the member for Fairfax takes a great deal of interest in these matters given the number of small to medium size enterprises that are operating out of his electorate and exporting particularly within our region and into South-East Asia and the markets in North Asia.

The government's trade policy is working extremely well in strengthening our economic relations within the region. In fact, I had a meeting over lunch today with representatives from the ASEAN countries with whom we have a very strong trading relationship. They were the first organisation that we negotiated an economic relationship with in the current form of trade policy where we have a very strong focus on the WTO and the multilateral system. We believe that meaningful reform in the global trade negotiations is very important for Australian jobs and the Australian economy. We are in the middle of that exercise at the moment and pursuing that in the WTO, and of course the meeting in Cancun in Mexico in a couple of weeks time is going to be crucial to that.

We have also been negotiating and pursuing bilateral agreements with a number of countries, the first of which was the CEP agreement—the closer economic partnership agreement—that we negotiated, signed off and put into place with the 10 ASEAN countries in their AFTA grouping. As I said, I had lunch with representatives of those countries today, and we are having a meeting in a couple of weeks time—the annual dialogue between Australia, New Zealand and the 10 ASEAN countries—which will take place in Cambodia.

A part of that policy pursuit has been to negotiate free trade agreements with other countries that are willing to move at the same pace as Australia, where opportunities are going to be provided faster—better opportunities, deeper opportunities—for Australian exporters. It is no secret that we have now concluded the free trade agreement with Singapore. We are on track with the free trade agreement negotiations with Thailand, to be concluded in October this year. Of course, there are also the all-important negotiations with the United States of America, which we are targeting to conclude by the end of this year. Those negotiations are the first that we have embarked upon for 20 years in this country—since we concluded the CER agreement in 1983. That has been recognised as the best and purest free trade agreement in existence in the world.

But this policy pursuit has been criticised by some commentators. Obviously the government has refuted those arguments and has continued to point to the advantages and the benefits that will flow from these negotiations. A couple of former Hawke advisers—namely, Ross Garnaut and Craig Emerson—have been very vocal in their opposition to the bilateral negotiations that we have been engaged in. They have been saying that these negotiations with the United States will cause our North Asian trading partners to pull away from the relationship with Australia. Those arguments that they have been putting forward are plainly wrong.

Following Singapore and Thailand, China is now seriously considering an FTA study with Australia. Following the Prime Minister's visit to Beijing yesterday it was announced that we wanted to pursue this, and the Chinese have agreed, as part of the economic framework agreement that we are currently negotiating. It should be recognised that China is one of our fastest growing markets, particularly in North Asia. I have been saying for at least the last couple of years that Australia has an enormous opportunity to take advantage of the opportunities presented in terms of resourcing the industrialisation of China, and we have to continue to refine that relationship.

As I say, we are focusing on the multilateral agenda and at the same time expanding the bilateral negotiations within our region and outside our region.

The SPEAKER —Order! The member for Wills!

Mr VAILE —And it is not damaging our relationships within our region within East Asia.

The SPEAKER —Is the member for Wills aware of the fact that this is the second time I have drawn his attention to his obligations?

Mr VAILE —As I laid down the challenge yesterday, I lay down the challenge again today to the Leader of the Opposition to get the whole labour movement—the Australian Labor Party and the union movement—behind these moves in relation to both the current negotiations and those in prospect because they are in the national interest.