Asean Economic Relations

CHAPTER FIVE AUSTRALIA - ASEAN ECONOMIC RELATIONS

5.1 As a region, and as part of the broader Asia Pacific, ASEAN has become increasingly important to Australia's economic and trade interests over the past decade and a half. The rapid economic growth and development of the South East Asian economies during this period, coupled with Australia's own shift to a more 'outward looking' economy has given impetus to a broadening and deepening of trade and investment relations between Australia and the region. Closer economic engagement in turn has resulted in greater opportunities for Australia to share in the dynamism of an increasingly integrated ASEAN market. To some extent, closer engagement also means that Australia's economic interests are more dependent on the fortunes of the ASEAN economies than at any time previously. 5.2 As a non-member of ASEAN, Australia has traditionally placed emphasis on developing bilateral trade and investment links with ASEAN member states, an approach that has been reinforced, and in many respects sharpened, under the current Federal Government. This approach reflects the Government's view of bilateral relationships as the 'building block of Australia's foreign and trade policy'.1 Accordingly, Australia's bilateral links with each of the ASEAN member countries, apart from Burma, are strong and wide ranging. 5.3 With the implementation of the ASEAN Free Trade Area (AFTA), and the subsequent formal dialogue between AFTA and the Australia New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER for short), as well as the ASEAN-related sub-regional growth triangle initiatives, Australia's approach to ASEAN economic relations has also adopted a substantial regional focus. At the multilateral level, Australia continues to build on its relations with ASEAN members through the World Trade Organisation, and at a trans-regional level through the Asia Pacific Economic Cooperation (APEC) initiative. 5.4 It is important to note that...