Dealing with the 'Near North': Australia-Asia Relations in Politics, Trade and Investment

Abstract:

Australian governments from all ideological backgrounds have given high priority to relations with Asia. Trade is one indicators of Asia’s importance to Australia: in 2006, 67% of its merchandise exports went to Asia. This paper examines how ties with Asia have been developed, looking in particular at policies and initiatives of the current Howard government. The emphasis is on the economic and trade relationships with Asia, but it is impossible to see how this more business-oriented aspect has developed without first looking at the dynamics of the political and diplomatic relationships that have emerged since this government came to power in 1996. This aspect of Australia-Asia interactions has changed quite a lot over this period, and in order to understand the economic linkages it is essential to first understand this political and strategic aspect. The Howard government inherited from its predecessors a set of structures designed to support Australian companies and other organisations in the development of stronger relations with their potential markets and sources of investment, and most of these arrangements have been preserved. Indeed, in some areas the government has gone out of its way to support business ties with all regions including Asia. The paper also examines the structure of various government departments, and in particular the Department of Foreign Affairs and Trade, in order to understand how they have sought to support business moves into Asia. The aim is to identify some key lessons and policy initiatives that might be useful to a range of other nations, such as Canada, as they also seek to strengthen their relationships with Asia.