Canberra, 2 July 1971
Australia’s Changing Patterns of Trade
On his arrival in Sydney tonight the Deputy Prime Minister and Minister for Trade and Industry, Mr Anthony, issued the following statement:
I return from my first visit as Minister for Trade and Industry to four areas of major importance in world trade and of special significance to Australia—Japan, Europe, Britain and the United States.
The world trade scene is never static. But in the near future it will be subject to some momentous changes the full extent of which cannot yet be foreseen. Neither can all the implications for Australia be fully appreciated .
But from this historic point we as a nation of some real significance must ‘think Australian’ more than ever before.
Australia has already in the last 10 years faced substantial changes in the direction and composition of her trade. As the world trade scene continues to change so our own patterns of trade and indeed to a degree the shape of our economy must continue to change also.
If Britain and the other applicants join the European Economic Community we will see a major turning point in the history of world trade. The creation of an EEC bloc of huge dimensions sharpens the possibility of increased trade tensions around the world. In the absence at this stage of any prospect of immediate and real moves towards liberalisation of trade, Australia must judge the implications for her own industrial and trade patterns and react accordingly.
One encouraging development is the decision by the Organisation for Economic Co-operation and Development—at the Paris meeting at which I led the Australian delegation into full membership—to establish a study group to examine the possibilities for future liberalisation of world trade. For Australia one clear message from the world trade situation is that we must continue and intensify the efforts we have been making for some years to develop and diversify our economy.
We must become even more aggressive in our efforts to secure new and expanded markets. This means more export promotion, the development of new products and the adaptation of our existing trade to the new circumstances.
We must strengthen even further our links with other trading partners outside Europe.
In Japan and the United States I found a very warm welcome and spirit of friendliness and a desire to work together in our mutual interests. We must continue to support international commodity arrangements as a means of developing orderly international marketing of our agricultural commodities.
And if need be, in particular industries, we must look to structural adjustment—a task which requires the joint effort of Governments and the industries concerned.
I am acutely conscious that adjustment involves people—families and communities which have contributed their share to Australia’s prosperity and well being for many years.
During my visit to Japan there was agreement with the Japanese Government on the establishment of a joint consultative committee to deal with our trade relationships. I believe that this will continue to develop the healthy trade relations between Japan and Australia—relations whose importance both countries have long appreciated and which will take on much greater significance especially in the light of the disturbing attitudes towards Australian agricultural trade which I encountered in London.
Of my talks in Britain and the EEC capitals I can only repeat the words I used in London. I came away disillusioned by the way in which Britain has handled, or rather failed to press, our repeated but modest requests for reasonable transitional arrangements. Nor am I satisfied with the lack of consultation when Britain changed its policy in accepting a safeguard clause as the means of protecting Australia’s and other third countries’ interests during the period in which Britain is aligning its agricultural policies with those of the EEC.
No Australian rural industry can feel any real confidence in a safeguard clause which would require the European countries to hold their own farm products back from the European market to allow Australian producers access to the market in times of over supply.
I am most disappointed at the British Government’s unwillingness to take this matter up again for commodities which might face abrupt exclusion from the market, such as butter immediately on British entry and sugar after the Commonwealth Sugar Agreement expires at the end of 1974.
Although the future for some of our trade is uncertain there can be no doubt that the Australian economy as a whole is strongly based, with great potential.
As a nation we can face the future with confidence. It is this rapidly growing economic strength which will help us to cope with the problems which will arise for particular industries.
The next few years will be the proving of Australia as an international trading nation making its way in the world.
We must and will stand squarely on our own feet and make our own way. I am confident that Australia can do it.
[NAA: Al838, 727/4/2 PART 14]