Introduction
Thank you very much for thatintroduction Peter.
I'd like to start today by thankingPrime Minister O'Neill for his comments this morning.
Ladies and gentlemen,distinguished guests – good morning, and what a pleasure it is to be here todayat the 34th Australia-Papua New Guinea Business Forum and TradeExpo.
I'll start with a confession:this is my first time at this event, hosted by the Australia-Papua New GuineaBusiness Council.
In my new role as the AssistantMinister for Trade, Tourism and Investment, this is the first time I've had theopportunity to work on the Australia-PNG business relationship.
That said, I'm very conscious ofhow unique and important this relationship is.
Bilateralrelationship
In much of Australia, I thinkit's fair to say that many people don't often think about just how close ourrelationship is with our closest neighbour.
In some ways, our countries andcultures are very different.
But the fact is: at the nearestpoint, there are around six kilometres separating Papua New Guinea fromAustralia.1
Where I'm from in country NewSouth Wales, there are houses which sit further apart than that!
We are neighbours, broughttogether at the outset by our geography and our history.
Right now, we have hit the75-year landmark celebrated by veterans in both our nations.
We have just commemorated, or aresoon approaching, the 75th anniversary of some of the big battles ofthe Pacific War – some of those extraordinary moments that brought our twocountries together.
The Battle of Buna-Gona, theBattle of Milne Bay – and of course, who could forget the Kokoda Trackcampaign?
Over the decades since 1945, ofcourse, we've added to our common history with links in education, mining andresources, and so many other areas.
For many years, at thegovernment level, a lot of what we did together focused on our aid relationship– PNG has long been, and remains, our largest development partner.
But the nature of the work we dotogether has changed.
Increasingly, recognising that wehave common interests in both regional security and prosperity, we are workingmore closely together as partners on a range of issues.
One example of where we aregreat collaborators, in 2018, is in telecommunications.
Australia has been a strongsupporter of developing PNG's infrastructure over many years, including itstelecommunications infrastructure.
Now, with the undersea cableproject and our work on cyber security, we are working together to strengthenthis critical infrastructure for the decades ahead.
Obviously, that work fits verywell with your theme for APEC – Harnessing Inclusive Opportunities, Embracingthe Digital Future – but there are many other places in which we do work, andcan work together, more closely.
Our economic relationship todayhas taken some pretty deep roots.
Australian companies currentlyhave around AU$18 billion invested in Papua New Guinea.2
There is over AU$6 billion inannual goods and services trade between our two countries.3
More than 4,600 Australian companiesexport goods into PNG,4 and others have found their own ties across the Strait.
It's not just mining they'redoing – it's also banking, finance, agriculture; it's pretty much any industrythat you can find across the spectrum of the PNG economy.
Many of these companies are heretoday – it's one of the reasons why this Forum, over 34 years, has grown tobecome the key venue for dialogue and connection.
Our two countries have workedvery closely, together with Business Councils, to address key issues and moveforward for a stronger economic partnership.
I know, for example, that manyof you here from the Australian business sector are particularly keen to keepthe focus on transparency and governance issues.
I'm pleased to note that we hada good conversation yesterday at the Business and Development Roundtable,focused on cooperation across public-private partnerships.
It's a key piece of the puzzle,this continued engagement between government and business.
I'd like to acknowledge theimportant work of our hosts, the Australia-Papua New Guinea Business Forum, indriving increased trade, investment and economic development opportunitiesbetween Australia and Papua New Guinea.
Nurturing stable policyenvironments, ensuring open consultation on proposed changes, observing treatycommitments on trade and investment, continuing dialogue on a whole host ofpolicy issues – this is what makes for any healthy bilateral economicrelationship, and this is what we strive to achieve each day between Australiaand PNG.
From the perspective of theAustralian Government, we see strength and opportunity in where our twocountries are heading.
That's why last year, mycolleague, Foreign Minister Julie Bishop, opened our AustralianConsulate-General in Lae.
Lae will be familiar to many ofyou here from the business world; perhaps less so to wider Australia.
It is a major transportation hub– the largest cargo port in Papua New Guinea – and home to agricultural,manufacturing, services and resources industries.
It is somewhere where we knew wehad to have our boots on the ground if we were going to be really serious aboutthe future of our economic ties.
One more sign that ourrelationship continues to mature, year after year – and this year will be nodifferent.
It's shaping up to be a year ofmany firsts.
The first Australia-PNG EconomicCooperation Dialogue, to see that this push forward continues to have supportfrom the highest levels of both governments.
The first Trade and InvestmentWorking Group [in March 2018], to see that we continue to address market accessissues and build deeper ties where it counts.
And of course, with APEC, thefirst time that a Pacific country stands in the spotlight of global economicattention.
Globaland regional context
We are both countries in theIndo-Pacific: the vast region from the far side of the Indian Ocean to the westcoast of the United States.
As the Government made clear inthe Foreign Policy White Paper, released in November, the Indo-Pacific is aregion that has emerged as perhaps the most dynamic engine of the globaleconomy.
In this context, Papua NewGuinea is uniquely significant to Australia.
Building on this economic andstrategic partnership is a priority for me and for the Australian Government.
Front and centre of all of thisis, of course, the 2018 APEC Summit.
PNG's decision to host APEC thisyear is a highly significant development, one which shows the leadership beingdriven by Prime Minister O'Neill, and one which Australia is very keen to support.
I am pleased to know that Australiahas been able to provide useful policy development and security assistance.
APEC has the potential to be atransformational opportunity for Papua New Guinea.
It is important for a number ofreasons.
First and foremost, it is a signof how far PNG has come.
It is an opportunity to showcasethe business potential of PNG to the world – a stable, reliable democracy andan attractive commercial environment.
It is an opportunity to cementPNG's place as a growing leader in our region.
The decision to focus this APECsummit on the digital economy is a theme that I know will resonate with manycountries, and tie in with a number of development opportunities.
The opportunities that arecreated through technology and through a changing global environment will bethe same opportunities that can underwrite the future economic success of our twocountries and of our region.
Harnessing the digital economyallows our region to evolve and to become resilient to future economic volatility.
For so many individuals andcommunities in Australia and in PNG, this is a game changer.
Secondly, and importantly, APECthis year will be a major opportunity for our two countries to continue to makethe case about the importance of free and open trade and investment.
In 2018, we're all consciousthat there are strongly protectionist headwinds around in many parts of theworld.
In tough economic times – andfrankly, the global economy has struggled, in many ways, for a decade now – itis quite understandable for local communities to focus on jobs under threat.
But as two countries thatbenefit greatly from trade – our respective minerals export industries aregreat examples of that – it is incumbent on us, during tough times, to keepmaking the case about the growth and competitiveness that comes from openingmarkets to trade and investment.
APEC will be a great opportunityto do just that.
I am pleased with news that thisyear has inspired PNG to revise some of their own domestic economic policies,and to look out to the possibilities in the region.
In doing so, it is importantthat PNG as host of APEC is able to demonstrate strong regional leadership onfree and open markets and investment.
Last year, the AustralianGovernment welcomed the news that PNG would be reconsidering its position onthe Pacific-wide PACER Plus free trade agreement – a strong signal of thisregion's commitment to trade liberalisation.
Australia is pleased to besupporting an independent study into the potential benefits for PNG of deepertrade engagement, including through agreements such as PACER Plus.
It's great to know we're continuingthis very important conversation.
The Australian Governmentwelcomed news that PNG continues to invest in our New Colombo Plan scholarshipprogram – particularly in providing practical hands-on experience in theprivate sector.
I know, for example, our 2018China scholar Nick McLean is looking at an internship with Newcrest Mining inPNG.
We also welcome PNG increasingtheir participation in the Seasonal Worker Programme.
These are great steps inbuilding a broader economic partnership – and with so much potential to buildeven further in the coming months and years.
Conclusion
For host governments, largesummits such as APEC can be a logistical nightmare – and I must congratulatePrime Minister O'Neill for hosting a number of very successful initial meetingsalready.
With the main APEC Leader's Weekjust around the corner, I look forward to seeing some great outcomes.
This is, as I said earlier, myvery first Aus tralia-PNG Business Forum and Trade Expo.
When this event first started backin 1980, the organisers were clearly ahead of their time – foreseeing aneconomic relationship that in 2018 stands in strength, cooperation, and resilience.
This year is in so many ways thenext step – and APEC is just the start.
I encourage each of you to makethe most of what this event has to offer, and what this relationship has tooffer.
Enjoy yourselves – I lookforward to the coming months, and I look forward to seeing you all again forthe wrap up of APEC, and at the Forum next year.
Thank you.
1 Torres Strait Regional Councilwebsite (based on distance from Boigu Island)
2 ABS catalogue 5352.0 (end of 2016);DFAT, Papua New Guinea Branch
3 ABScatalogue 5368.0
4 ABScatalogue 5368.0.55.006 (2016-17)