STEEL NEWS

Australia, China proud of strong economic relationship: Trade Minister

Australia's Minister for Trade Simon Crean says on Monday Australia and China can be justly proud of the strong economic relationship they have built over many years.

"Even in the face of the global economic crisis, our two way trade was worth 76.3 billion dollars (65.8 billion US dollars) in financial year 2008-09, up by nearly a third over the previous year," Crean told Xinhua in an interview on Monday.  

"The dramatic expansion in the economic ties reflects our fundamental economic complementarity as Australia's resources and energy trade underpins China's economic growth prospects." 

"I look forward to this trade continuing to expand in years to come, including through the 50-billion-dollar (43.1-billion-US-dollar) Gorgon gas supply agreement," Crean said.

As an advanced economy, the Australian services sector can supply the Chinese consumer world-class financial and other services, including in clean energy and innovative green technology, he said.

"The challenge for me as Australian Trade Minister, and for my counterpart in China, is to ensure that our two Governments can facilitate the transformation in our trading relationship to meet these new emerging demands, just as we have done in the resources and energy sector."

When talking about the Free Trade Agreement (FTA) negotiations between Australia and China which has last for years with the first round starting in May, 2005, Crean said, "The negotiations between Australia and China for a free trade agreement have been challenging, especially on market access for goods and services and also for investment."

"There is sufficient political will on both sides to conclude a FTA, but this will need to be translated into policy flexibility at officials' level." 

The current moment marks one year anniversary of Global Financial Crisis which Australia has successfully beat against. 

Crean told Xinhua he believes that Australia has acted decisively and comprehensively to address the financial and economic crisis in line with commitments by G20 Leaders.

"We have taken action to stabilize our domestic financial system, and have supported growth and jobs through fiscal and monetary stimulus. The success of these policies has been reflected in Australia's economic growth figures."

And now "Australia is the only advanced economy to show positive growth in the past 12 months. This month a report by the Organization for Economic Co-Operation and Development (OECD) praised the stimulus package of the Australian Government saying it had a strong effect in cushioning the decline in unemployment."

Australian Bureau of Statistics announced earlier September that the economy grew stronger than expected 0.6 percent in June quarter. The result beat expectations of sluggish growth of 0.2 percent. The expansion during the June quarter extends the 0.4 percent growth in the March quarter of this year. The positive result now means Australia's economy has recorded two quarters of positive growth, after a contraction in the December quarter of 
2008.