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Panel
to Identify Snags
& Report by
Aug
Australia
to Review Trade
Policy
to Boost Exports
Australia's Minister
for Trade Simon
Crean has recently
announced a comprehensive
review of the
country's export
policies and programs.
Expressing concern
over a lower than
expected performance
of Australian
exports, Crean
said the review
will examine Australia's
trade performance
over the past
two decades and
identify factors
that impact on
export growth.
Following is the
text of Crean's
review of Australia's
overall trade
policy.
Despite rapid
economic growth
in our region
driving high demand
for energy and
mineral resources,
Australian exports
have underperformed
in recent years.
Across all major
export categories,
growth of export
volumes in the
past six years
has been below
the historical
average since
the floating of
the Australian
dollar in 1983.
Under the previous
Government, net
exports made a
positive contribution
to growth in just
2 out of 11½
years. Under the
last Labor Government,
net exports made
a positive contribution
to growth in 10
out of 13 years.
Against that backdrop,
the review will
examine Australia's
trade performance
over the past
two decades and
identify factors
that impact on
export growth.
It represents
the Government's
determination
to develop an
integrated approach
to trade policy
and ensure it
is part of the
broader economic
policy settings.
All arms of policy
must work together
to drive productivity
growth, enhance
our level of international
competitiveness
and improve our
export performance.
This is vital
to ensure our
trade performance
once again becomes
a strong contributor
to Australia's
economic performance
to sustain us
beyond the resources
boom.
The Government
wants to assess
the challenges
and develop a
strategic, whole-of-government
approach to advancing
Australia's international
economic and commercial
interests.
The review will
be chaired by
David Mortimer
AO, Chair of Leighton
Holdings and Australia
Post. Mortimer
has a strong record
of achievement
in business and
is ideally suited
to lead this review.
Mortimer will
be supported by
John Edwards,
Chief Economist
of HSBC Australia.
Under legislation,
the Government
is required to
initiate a review
of the Export
Market Development
Grants (EMDG)
scheme by 2010.
Given the integral
role of EMDG in
the current mix
of export policies
and programs the
EMDG review will
be brought forward
and undertaken
as part of this
review.
The review will
consult widely
with stakeholders
and will be calling
for public submissions.
The review will
be completed by
31 August 2008.
Terms of Reference
for the review
are attached.
A separate research
project on Australia's
approach to free
trade agreements
will be undertaken
in parallel with
the export policies
and programs review,
and its results
will be incorporated
in the review's
final report.
This research
will analyse Australia's
most recent free
trade agreements
(FTAs) with the
United States,
Singapore and
Thailand to assess
their net benefits
and include a
comparative analysis
of Australia's
FTAs with those
concluded by other
countries. It
will examine options
for ensuring that
FTAs strengthen
the WTO multilateral
trade system,
including benchmarks
for any future
agreements Australia
may negotiate.
The research on
FTAs will be conducted
under the leadership
of a reference
group of experts;
specifically:
• Professor
Kym Anderson,
Professor of Economics
at the University
of Adelaide;
• Andrew
Stoler, Executive
Director of the
Institute for
International
Trade;
• Peter
Gallagher, Managing
Director of Inquit,
and formerly CEO
of the Australian
Dairy Council;
and
• Nicholas
Gruen, CEO of
Lateral Economics.
Biographical Details
Review of export
policies and programs
panel
David
Mortimer AO
is Chairman of
Leighton Holdings
Ltd, Australia
Post, Crescent
Capital Partners
and the Defence
Procurement Advisory
Board. He is a
Director of Macquarie
Infrastructure
Investment Management
Limited and Petsec
Energy Limited
and a Governor
of the Australia
Israel Chamber
of Commerce. In
1996-1997, Mortimer
led a major review
for the Federal
Government of
Business Programs
that resulted
in “The
Mortimer Report”.
He was previously
Managing Director
of TNT Limited.
Following the
merger of TNT
Ltd with the KPN
Group in 1996
he remained as
Chairman and CEO
of the Asian Pacific
Region until 1997.
From 1992-1996
he was Deputy
Chairman of Ansett
Australia Holdings
Limited. He was
also a Director
of Ascham from
1989 to 1997 and
of Adsteam Marine
Limited from 1997
to 2007. He was
Chairman of Sydney
Airports Corporation
from 1998 until
2002 and a Director
of the Australian
Tourist Commission
from 1997 to 2004.
He was formerly
a director of
the Australian
Graduate School
of Management
and is presently
on the AGSM Advisory
Council. He is
also a member
of the Board of
Governors of the
Committee for
Economic Development
of Australia (CEDA).
He was appointed
as an Officer
of the Order of
Australia in 2005.
John Edwards
has been
chief economist
for HSBC in Australia
since 1997. Between
1991 and 1994
he was Senior
Adviser (Economic)
to Treasurer and
then Prime Minister
Paul Keating.
He has worked
in other banking
roles, first as
an adviser at
Macquarie Bank
and then as chief
economist for
Societe Generale.
Edwards was Washington
correspondent
for the Sydney
Morning Herald.
Edwards' role
at HSBC includes
the provision
of economic views
and advice to
the commercial
bank and the treasury
and capital markets
group.
FTA reference
panel
Professor
Kym Anderson is
the George Gollin
Professor of Economics
and formerly foundation
Executive Director
of the Centre
for International
Economic Studies
at the University
of Adelaide, where
he has been affiliated
since 1984. Previously
he was a Research
Fellow in Economics
at ANU's Research
School of Pacific
and Asian Studies
(1977-83), following
undergraduate
studies at the
University of
New England in
Armidale (1967-70).
He has worked
at the GATT Secretariat
and has been a
regular participant
in WTO dispute
settlement cases
as an expert panellist.
He has been Lead
Economist (Trade
Policy) in the
Research Group
of the World Bank
in Washington
DC for the past
several years.
Andrew
Stoler
is the Executive
Director of the
University of
Adelaide-based
Institute for
International
Trade. He served
as Deputy Director-General
of the World Trade
Organization (WTO)
from November
1999 to October
2002. Prior to
this, he spent
slightly more
than 10 years
as the Deputy
Permanent Representative
of the United
States to the
WTO and its predecessor,
the GATT.
Peter
Gallagher is
Managing Director
of Inquit. He
was formerly the
CEO of the Australian
Dairy Industry
Council and was
a senior officer
for 20 years in
the Department
of Foreign Affairs
and Trade. In
1996, he was appointed
to the faculty
of the Business
School of the
University of
Melbourne - where
he helped establish
a program on international
trade for MBA
students.
Nicholas
Gruen
is CEO of Lateral
Economics. He
is an economist
with an impressive
record of achievement
and experience
in the public
sector, business
groups and academia.
He was previously
an economic policy
adviser to two
Federal Government
Ministers, Director
of the Business
Council of Australia's
innovative New
Directions economic
reform project
and influential
participant in
economic and industry
policy formulation,
notably in the
automotive sector.
Terms of Reference
for the Review
of Export Policies
and Programs
• Despite
the rapid economic
growth of China
and India generating
unprecedented
global demands
for energy and
mineral resources,
Australian exports
have underperformed
in recent years.
Across all major
export categories,
the growth of
export volumes
in the past six
years has been
below the historical
average since
the floating of
the Australian
dollar in 1983.
While export revenues
for resources
have grown in
the past six years,
there has been
a slowdown in
resource export
volumes over that
period.
• In the
last Labor Government,
net exports made
a positive contribution
to economic growth
in 10 of 13 years.
Under the previous
Government, net
exports made a
positive contribution
to growth in just
2 out of 11½
years. The export
slowdown over
the past decade
reflected a failure
to develop an
integrated approach
to trade policy
and a failure
to achieve the
necessary productivity
gains to drive
Australia's international
competitiveness.
• In this
context, the Australian
Government has
commissioned David
Mortimer AO and
John Edwards to
conduct a comprehensive
review of export
policies and programs,
in consultation
with a broad range
of industry stakeholders.
The review will
examine export
policy and programs
across all Government
portfolios and
agencies and their
linkages to State/Territory
programs. It will
cover goods, services
and investment.
This review is
to take place
in parallel with
an analysis of
Australia's recent
bilateral free
trade agreements
to assess their
net benefits and
to develop new
benchmarks for
Australia's future
bilateral and
regional trade
agreements.
• The review
will examine Australia's
trade performance
over the past
two decades including
factors impacting
on export growth.
It will identify
measures to maximise
Australia's export
competitiveness
potential. The
review will contribute
to the formulation
of a more strategic
whole-of-government
approach to advancing
Australia's international
economic and commercial
interests.
• The review
will bear in mind
the Government's
desire to optimise
the overall economic
performance of
the Australian
economy through
productivity gains
and deeper integration
of the Australian
economy and business
with the global
economy. It will
also take into
account the Government's
commitment to
the rules-based
multilateral trading
system and in
particular the
World Trade Organisation
(WTO) Doha negotiations.
• The review
will make an assessment
of the challenges
and opportunities
currently facing
Australian exporters
and international
business. In making
this assessment,
the review should
examine:
a) Australia's
export performance
over the past
two decades, identifying
factors that are
inhibiting export
performance, domestic
productivity,
productive investment
flows and international
competitiveness;
b) the extent
to which Australia's
trade policies
adequately reflect
Australia's interests
in the contemporary
global economy;
and
c) the coverage,
coherence and
effectiveness
of current trade
development services
and programs,
and the extent
to which they
adequately address
the needs of exporters,
importers and
investors.
• The review
will make recommendations
on any of the
issues identified,
including:
a) measures required
to improve export
performance, including
the relationship
with domestic
policy settings
and productivity-enhancing
policies;
b) measures which
will improve the
capacity of new
and existing exporters
to expand their
export base and
take optimal advantage
of the expansion
and evolution
in international
trade and investment;
c) measures to
encourage more
small businesses
to begin exporting
or to expand their
export operations;
d) measures to
promote an improved
services export
performance, including
financial services;
e) policies and
programs that
will promote high
value added exports,
enhanced levels
of productivity
and improved international
competitiveness;
f) measures to
expand market
access opportunities
for Australian
exporters of goods
and services;
and
g) measures to
promote a more
concerted and
coordinated national
approach to lifting
export performance.
• In its
recommendations,
the review will
be mindful of
the Government's
overall approach
to budget policy,
Australia's international
commitments, the
Government's support
for the multilateral
trade system and
the initiatives
the Government
is in the process
of implementing.
• The review
will include specific
recommendations
about the continuation
of the Export
Market Development
Grants scheme
(EMDG), pursuant
to section 106A
of the EMDG Act
1997.
• The review
is to release
a scoping paper
for stakeholder
consultations
by April. The
final report will
be provided to
the Minister for
Trade by 31 August
2008.
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