Speech to British Chambers of Commerce International Trade Summit 2019
17 October 2019
Hilton Hotel, Suffolk Street, Bankside.
HE the Hon George Brandis QC, Australian High Commissioner
It is a great pleasure to address this Summit, and I want to begin by congratulating you on your choice, as the theme of this conference, of the important subject “Trading in a time of uncertainty”. My message, as the diplomatic representative of Australia, one of the world’s great trading nations, whose modern prosperity is the largely the result of international trade, is that, if the times are indeed uncertain, then the arguments for greater global trade – which are always strong – are even stronger still. And I would go further: much – although by no means all - of the uncertainty of the times is the direct result of the loss of confidence in the capacity of free trade to generate economic growth, to bring peoples together, and, by creating ever-greater prosperity, reinforcing the incentives for peace and stability.
Of course, not all is uncertain. It is a certainty that Australia and the United Kingdom have a strong – indeed, unique relationship. It is a certainty that both of our governments are committed to the future of this enduring relationship. It is as certain as anything can be that, as liberal democracies which respect both the rule of law at home and the international rules-based order abroad, we will continue to share both common values and common interests, and to work together to prosecute those values and interests. And, as Britain’s long and sometimes agonising exit from the European Union finally comes about in the days and weeks to come, it is also, I think, about as close to a certainty as anything can be that our two nations – united not just by common values and interests, but by a shared history, a common language, a common legal system and business practices, the closest of cultural affinities and the deepest people-to-people links – will find greater opportunities to expand their trade with one another, as our respective governments’ commitment to a post-Brexit Free Trade Agreement demonstrates.
Australia’s political inheritance – parliamentary democracy, the rule of law, the separation of powers, the equality of all citizens, the freedom to believe, to speak and to worship as we see fit – these precious gifts all have their roots in this country.
And of course, Australia’s spirit of enterprise and free trade is something we originally drew from the United Kingdom; the recovery by the United Kingdom of its independence in trade policy will in the years to come, broaden and enhance our economic partnership too.
Britain was, indeed, Australia’s first trading partner. Wool, the first of the great Australian export commodities, was first shipped to Britain in commercial quantities before the end of the Napoleonic wars and by 1831, almost two and a half million pounds of wool was exported from Australian colonies to the British market. That burgeoning trade suffered something of a setback in 1825, when the Government of Lord Liverpool imposed import duties on wool, which favoured the woolgrowers of Saxony and Prussia over the graziers of New South Wales and Van Diemen’s Land- perhaps a portent of things to come a century and a half later. But after that brief hiccup, the trade between our two nations burgeoned as the variety of goods increased; in particular after the adoption of free trade by the United Kingdom with the repeal of the Corn Laws in 1846.
Today, as then, Australia is still an importer of people and capital, and an exporter of commodities – along with much else. But it is now the twelfth largest economy in the world; the second largest in the southern hemisphere; and, after China and Japan, the third largest in East Asia. Earlier this year, Australia recorded its 28th year of consecutive economic growth, a record since such statistics were first kept. Last the Australian population passed 25 million, who enjoy one of the highest per capita incomes in the world.
There are many reasons for the prosperity of modern Australia. Not least among them is trade. While Australia adopted protectionist policies for much of its history, in the late part of the twentieth century, parties on both sides of politics undertook a fundamental rethinking of that earlier outlook. The decision was an undoubted success: it is no coincidence that our economy has continued to grow for the last 28 years. In most recent years, Australia’s accession to preferential trade and free trade agreements has accelerated. Six years ago when the conservative government of Tony Abbott was elected some 26% of Australia’s exports went to countries with which Australia had free trade agreements or preferential trade agreements. Today, that figure is 70%. Australia stands firm in its commitment to free trade and its opposition to protectionism – not for ideological reasons, but because our own experience of the last quarter of a century has taught us the benefits free trade brings. And, as we consider the opportunities for the relationship between Australia and the United Kingdom after Britain withdraws from the European Union and redefines its place in the world, first and foremost in our minds are the opportunities which the renewal and expansion of the trade between our two nations will bring to both.
Prior to the United Kingdom first applying to join the European Economic Community, Britain was still Australia’s most significant trading partner, accounting for 23.5% of all Australian exports in 1963-4 and 27.8% of its imports. Australia was also a significant destination for British trade – in 1960, 7% of the United Kingdom’s exports went to Australia.
And although our trade has fallen significantly since the United Kingdom joined the European Union, our trade links remain significant.
You are our eighth largest trading partner in terms of two way trade and at the end of 2018 the UK came second only to the US as an investment partner to Australia.
You are our fourth-largest tourism market, our fourth-largest market for services exports, our second largest source for services imports and our largest wine export market. One in five bottles of wine purchased in the UK is Australian wine.
Opportunities for business
With such extensive links come immense opportunities – let me mention a few highlights.
Our defence industry relationship is an area of growing opportunity for both countries.
Australia is investing in shared platforms and capabilities, which means we can work together seamlessly on global security challenges.
In 2018 the Government decided to partner with BAE Systems to build nine Hunter-class frigates for our Navy.
They will be built in Australia using great British design and know-how.
The RAF is committed to acquiring the Australian designed Wedgetail reconnaissance aircraft and there are other military platforms in which our respective defence industries are heavily engaged.
Those projects point to scope for future collaboration between Australian and UK defence industries, including for SME suppliers and firms in adjacent civilian fields.
We are working to build these kinds of deep connections in the space industry as well.
The Australian and UK governments signed a letter of intent toward the completion of a Space Bridge Framework Agreement on 24 September 2019.
The Space Bridge will facilitate access in the global space sector, bringing significant benefits to the many SMEs and start-ups that are forging their way in this field.
Infrastructure is another example, where firms from Australia and the UK are revolutionising the physical landscape and economic prospects in both countries.
Whether it be Lendlease’s projects to rebuild Euston Station and develop neighbourhoods across London, or Bechtel UK’s selection as Delivery Partner and Project Manager for the Western Sydney Airport, the results will soon be there for all to see.
The future: an Australia-UK Free Trade Agreement
There are others I could mention, but I would be here all day.
But my key message is that in the future there will be even more opportunities. We are working through this time of uncertainty to open new opportunities for businesses and consumers in both countries.
Although Brexit is a matter for the UK Government to resolve, it is as our Trade Minister, Simon Birmingham has stated “an opportunity for our two countries to reinvigorate the bilateral relationship to ensure great cooperation and trade links.” This is an opportunity that Australia wants to seize and seize quickly.
Just last month, I accompanied the International Trade Secretary, Liz Truss, to her meetings in Canberra with our Prime Minister, Foreign Minister, Trade Minister, Agriculture Minister and other senior politicians and officials. Both governments reaffirmed their commitment to begin trade negotiations as soon as possible after the United Kingdom leaves the European Union. Ms Truss reiterated that Australia was one of the United Kingdom’s highest priorities for a post-Brexit trade deal, which she described as being a matter of months, not years, away.
And while we cannot yet commence formal negotiations, we have already taken practical steps with a bilateral trade working group engaging in constant dialogue and scoping discussions. Indeed, Ms Truss has stated she is pleased that Australia is “going to be quick off the mark” – and says this will be mirrored by the United Kingdom.
Ultimately, our message has not changed since the since the referendum result was announced. The moment Britain is ready, Australia stands ready to shift into formal negotiations towards an Australia-UK Free Trade Agreement.
It should be an ambitious and comprehensive free trade agreement, covering goods, services and investment. An exemplar for open liberalised markets.
We want to show the world how quickly yet effectively it can be negotiated, seeking to conclude and sign as rapidly as we can after the UK leaves the EU, and entry into force as soon as possible thereafter.
A bilateral FTA is of course also an opportunity for the UK to seal its commitment to the liberal rules-based trading system and recover the UK’s centuries-long tradition as a force for openness in global trade, as well it is a stepping stone to the UK to become a party to other plurilateral trade agreements, most notably the CPTPP.
Conclusion
Those trade opportunities are built upon the very important relationship that we already share. Because we know that Australians don’t just visit the UK - they study, they work and build lives here. As do Britons in Australia. I must say, I have found that, as the Australian High Commissioner, there is never any difficulty breaking the ice with people whom I meet, because as soon as I tell them what I do, 9 times out of 10 the immediate response will be something like: “I’ve got a sister living in Sydney.” Or “My daughter married an Australian and they live in Brisbane.” Or “My son’s on his gap year in the outback.” There are in fact more Britons living in Australia than in the entire area of the EU 27. As your former Prime Minister David Cameron said when he addressed the Australian Parliament some years ago: “There is no country in the world to which, when I travel, it feels more like visiting family.”
Those ties of kinship matter a great deal, not just because people to people links are good in themselves but because they are the foundation of a shared state of mind, a common understanding, a real affection which is only ever really suspended on the cricket and rugby fields. A recent public opinion poll commissioned by an Australian foreign policy think-tank, The Lowy Institute, asked about the reputation of other nations in the eyes of Australians. It found that, by a very wide margin, Britain was the nation Australians trusted more than any other.
We Australians are a confident people. We are defined by our optimism. And I am confident that after Brexit, the Australia-UK relationship will continue to deepen and strengthen even further, in particular as we open up the opportunities for greater trade that Britain’s membership of the European Union so limited.
And so, my answer to the question posed by this Conference is – in times of uncertainty, we should turn to our friends, our traditional partners, those who see the world through similar eyes to our own. As Britain re-embraces a global vision of its role in the 21st century and resumes its historic role as a great global trading nation, Australia will be there as an ally, a partner and a friend.