A free trade agreement with the United States would be a springboard for the creation of a single Asia-Pacific rim finance zone with almost 70 per cent of global market capitalisation, the Parliamentary Secretary to the Treasurer, Senator Ian Campbell, said in Sydney today.
A market comprising Australia, New Zealand, Indonesia, Singapore, Vietnam, Thailand, Hong Kong, China, Taiwan, Japan, South Korea and the United States would be the most dynamic on the globe.
"We need political commitment to achieve this and a free trade agreement with the United States gives us the unique opportunity to establish and commit to processes that will integrate our markets," he said.
"Significant work has already been done through bilateral and multilateral agreements with countries in the region that will help to pave the way for establishing a single market.
"These co-operative arrangements have been brought about by the Government and institutions such as the Reserve Bank, the Stock Exchange, Australian Securities and Investments Commission, Financial Reporting Council, Australian Accounting Standards Board and the Australian Prudential Regulation Authority.
"Now is the time to build on that work."
Senator Campbell told a meeting of the Australian Services Roundtable, the peak industry body for service industries, that a high standard of regulation would be necessary to provide consumer protection and market integrity across borders.
"I do not underestimate the work that remains to be done, but I am confident it can be achieved and a free trade agreement would give that work enormous added impetus. The benefits flowing from an integrated market would be a strong incentive to other countries to improve their regulatory systems.
"Australia is very well credentialled to take a lead role in building a single market which lowers costs and builds efficiencies - it has a world-class regulatory regime and is recognised for the quality of its financial services sector.
"We also rank second in market capitalisation in our region behind Japan and account for around one-third of the region's investment funds under management."
SYDNEY
25 July 2003 Contact: Wayne Grant 08 9421 1755 or 0407 845280