PERFORMANCE REPORTING by MikeJenny

VIEWS: 6 PAGES: 142

									performanCe
reporting
section 2

Outcome 1

Outcome 2

Outcome 3

Outcome 4
Minister for Trade, Mr Warren
Truss, welcoming Iraqi Minister
of Oil, Dr Hussain al-Shahristani,
to Australia. This was the first
visit to Australia by a Minister
of Iraq’s Government of
National Unity.
Photo: David Foote, Auspic



Minister for Foreign Affairs,
Mr Alexander Downer, is
welcomed to the inauguration
ceremony of Nural Huda
boarding school in Bekasi,
West Java on 6 March 2007.
The school is one of 2000
junior secondary schools to be
built or renovated in Indonesia
over the next three years under
the Australian Government’s
$355 million Basic Education
Program, managed by AusAID.
Outcome 1
Australia’s national interests protected and advanced through contributions
to international security, national economic and trade performance and
global cooperation




                                                                                           S ECT I O N 2
 O U T P U T 1 .1

EFFECTIVENESS
North Asia
South-East Asia
Americas
Europe
South and West Asia, Middle East and Africa
Pacific
Bilateral, regional and multilateral trade negotiations
Trade development/policy coordination and Asia-Pacific Economic Cooperation
International organisations, legal and environment
Security, nuclear, disarmament and non-proliferation
QUALITY AND QUANTITY


 OUTPUT 1.2

EFFECTIVENESS
QUALITY AND QUANTITY


 OUTPUT 1.3

EFFECTIVENESS
Parliament in Australia
Services to attached agencies
Services to business
Services to state governments and other agencies overseas and in Australia
QUALITY AND QUANTITY


 O U T P U T 1 .4

EFFECTIVENESS
Services to diplomatic and consular corps
Provision of protection advice through liaison with the Protective Security Coordination
Centre
QUALITY AND QUANTITY


 A D M I N I ST E R E D I T E M S FO R O U TCO ME 1

QUALITY AND QUANTITY
Dr Robert Bowker (right),
Ambassador to Egypt, in
Rumbek, southern Sudan on
30 May 2007 with Mr George
Forbes. The Ambassador’s
assistance was critical in
having Mr Forbes’ wrongful
conviction for murder annulled
the following week and in
ensuring he received essential
medical attention.
Photo: Jennifer Fletcher



Ambassador to Indonesia
Mr Bill Farmer AO talking
with students of Al Munajah
Islamic School in Central Java
on 4 June 2007, during a visit
to mark the first anniversary
of the 2006 earthquake in
Central Java.
P E R FO R M A N C E I N FO R MATION
FO R O U TCO M E 1
Effectiveness indicators—overall achievement
of the outcome
Indicators to assist in assessing the success of the department’s contribution to the
achievement of this outcome are:

• Enhancement of Australia’s security
   — Contribution to national, regional and international efforts to promote a more
     stable regional and global security environment
   — Strengthened and/or well-maintained security links with our allies; strengthened
     and/or well-maintained security-related dialogue and cooperation with other
     countries both bilaterally and in regional forums
   — Contribution to combating international terrorism and to the development and
     implementation of international arms control agreements to counter the spread of
     weapons of mass destruction

• Contribution to national prosperity
   — Improved access to overseas markets for Australian exports and investment
     pursued through bilateral, regional and multilateral means
   — Contribution to efforts to maintain and strengthen the multilateral trading system
     and effective use of the WTO to protect and pursue Australia’s trade interests
   — Effective participation in APEC and other regional forums to build support for freer
     trade, make practical improvements in the business environment and encourage
     economic reform in the Asia-Pacific region

• Contribution to strengthening global cooperation in ways that advance
  Australia’s interests
   — Effective participation in multilateral organisations such as the United Nations
     and the Organisation for Economic Co-operation and Development and in related
     multilateral and regional cooperation mechanisms
   — Promotion of outcomes to international deliberations on global environmental
     issues consistent with Australian policy positions
   — Contribution to the development of a strong international legal framework
   — Encouragement of wider international application of universal human rights
     standards, democratic principles and good governance.




28        D FAT  ANNUAL  REPORT   2006   –   2007
  TABLE 4. FINANCIAL AND STAFFING RESOURCES SUMMARY FOR OUTCOME 1


Australia’s national interests protected and advanced through contributions to
international security, national economic and trade performance and global cooperation

                                                         2006–07
                                                       Budget and                 Variation




                                                                                                           S ECT I O N 2
                                                        Additional      Actual (actual less       Budget
                                                        Estimates     2006–07      budget)      2007–08
                                                          ($’000)      ($’000)     ($’000)       ($’000)
Administered expenses
Contributions to international organisations             195 393      201 090          5 697    208 620
Export Finance and Insurance Corporation                  15 673       28 793         13 120       8 200
Compensation for detriment caused by
defective administration                                       54            21          (33)        54
Rates for foreign government missions                         370            139        (231)       370
Pension schemes                                             4 050        4 750           700       2 200
Suppliers                                                     577            552         (25)       585
Total administered expenses                              216 117      235 345         19 228    220 029
Price of departmental outputs
Output 1.1—Protection and advocacy of
Australia’s international interests through the
provision of policy advice to ministers and
overseas diplomatic activity                             369 520      403 998         34 478    357 604
Output 1.2—Secure government
communications and security of
overseas missions                                        129 435      138 029          8 594    125 723
Output 1.3—Services to other agencies in
Australia and overseas (including Parliament,
state representatives, business and
other organisations)                                     103 178      103 135            (43)   101 132
Output 1.4—Services to diplomatic and
consular representatives in Australia                       4 343        4 817           474       4 195
Total price of departmental outputs                      606 476      649 978         43 502    588 654
Appropriation from government for
departmental outputs                                     564 630      595 803         31 173    542 854
Revenue from other sources                                41 846       54 175         12 329     45 800
Total resourcing for Outcome 1
(Price of departmental outputs plus
administered expenses)                                   822 593      885 323         62 730    808 683


                                                                  2006–07
                                                               Budget and          2006–07      2007–08
                                                      Additional Estimates           Actual     Estimate
Average staffing level (number)*                                     2 325           2 317         2 313
* Includes overseas locally engaged staff.




                                             P ERFOR mANc E  iNFOR mATiON  FOR  OUTcO mE  1        29 
 O U T P U T 1 .1 :

 Protection and advocacy of Australia’s international interests through the
 provision of policy advice to ministers and overseas diplomatic activity



1.1.1 NORTH ASIA

Overview


   The department strengthened cooperation and dialogue with North Asian countries
   and promoted Australia’s economic, political and strategic objectives in the region.
   As North Asia is the destination for approximately half of Australia’s exports,
   developments there have a direct impact on our national interest.
   The department strengthened economic ties with Australia’s three largest
   merchandise export markets—Japan, China and the Republic of Korea (ROK).
   Following intensive high-level advocacy and successful completion of a joint free
   trade agreement (FTA) feasibility study, we secured Japan’s agreement to commence
   formal negotiations on a comprehensive bilateral FTA, with the first round of
   negotiations held in April 2007. The department used high-level dialogues with
   China’s two key economic agencies to strengthen further Australia’s economic
   engagement with China. We held four rounds of negotiations on the proposed
   bilateral FTA in an effort to improve market access for Australian goods, services
   and investment in China. Our outreach activities to the ROK business community
   saw our FTA aspirations endorsed by the peak ROK industry association, while work
   commenced on a non-government FTA study.
   Australia’s strong economic interests in North Asia and close ties with countries
   in the region give us a direct interest in strengthening security and stability in the
   region. The department strengthened Australia’s political and strategic relationships
   with Japan, China and the ROK, which contributed to regional stability. We played a
   key role in securing Japan’s agreement to the Australia–Japan Joint Declaration on
   Security Cooperation signed by Prime Minister Howard and Japanese Prime Minister
   Shinzo Abe in March 2007. The Joint Declaration represents an unprecedented
   deepening of our strategic partnership with Japan, and sets the ground for even
   closer relations.
   The department also facilitated a successful first meeting of the Japan–Australia
   ‘2+2’ Joint Foreign and Defence Ministerial Consultations (JAUSMIN) in June 2007.
   JAUSMIN is the ministerial-level forum that will direct and review the further growth
   of Australia’s bilateral defence and security cooperation with Japan.
   The DPRK’s nuclear weapons and ballistic missile programs remained a source of
   considerable tension in North Asia. We liaised closely with key allies and partners
   on Australia’s robust response to the DPRK nuclear test of 9 October 2006,
   including full implementation of United Nations Security Council Resolution 1718.




30        D FAT  ANNUAL   REPORT   2006   –   2007
   We coordinated implementation of bilateral sanctions against the DPRK with Japan
   and the United States. We welcomed the Six-Party statement of 13 February 2007
   on denuclearisation of the DPRK, and we continued to urge the DPRK, through
   its ambassador in Canberra and senior DPRK representatives in Pyongyang, to
   implement its commitments to abandon its nuclear program.




                                                                                                                          S ECT I O N 2
Japan

The strengthening of the Australia–Japan relationship over the past year has been
unparalleled. The department made a significant contribution to a number of landmark
commitments with Japan that reflect our shared values, complementary economic ties
and increasing convergence of strategic interests.

Prime Minister Howard and Japanese Prime Minister Shinzo Abe jointly signed the
Australia–Japan Joint Declaration on Security Cooperation in Tokyo in March 2007
(see box below). The Joint Declaration is the most significant security arrangement
undertaken by Japan apart from the Japan–United States alliance. As part of the Joint
Declaration, the department secured Japan’s agreement to develop an action plan to take
forward specific areas of security cooperation, and to establish annual joint foreign and
defence ministers’ talks to enable better coordination in these areas.




The establishment of the Australia–Japan Joint Foreign and Defence Ministerial Consultations (JAUSMIN) in 2007 reflects
the growing strength of our relationship with Japan. (From left to right) Then Japanese Foreign Minister, Mr Taro Aso,
Minister for Foreign Affairs, Mr Alexander Downer, Minister for Defence, Dr Brendan Nelson and then Japanese Defense
Minister, Mr Fumio Kyuma, celebrate the successful conclusion of the inaugural JAUSMIN meeting in Tokyo on 6 June 2007.




                                                                             OUTPUT  1.1   North asia           31 
The department helped ensure the success of the inaugural Australia–Japan ‘2+2’ Joint
Foreign and Defence Ministerial Consultations (JAUSMIN) held in Tokyo in June 2007.
Mr Downer and the Minister for Defence, Dr Nelson, held frank, constructive discussions
with their Japanese counterparts—Mr Aso, Minister for Foreign Affairs, and Mr Kyuma,
Minister for Defense—on issues of common strategic interest. These included cooperation
on disaster relief, peacekeeping and peace-building activities, counter-terrorism and
counter-proliferation and greater coordination to enhance the effectiveness of our
respective approaches to the Pacific region. Australia and Japan agreed to collaborate
more in these areas, including through joint exercises and training, and to step up
cooperation and information sharing. The meeting was a historic event that reflects the
growing strength of Australia’s relationship with Japan. Australia has such meetings only
with the United States and the United Kingdom, and Japan only with the United States.
We will host the next JAUSMIN meeting in Australia in 2008.

The department, with Japan’s Ministry of Foreign Affairs, chaired and concluded a joint
Australian–Japanese study into the feasibility of an FTA between the two countries. The
study found that a comprehensive WTO-consistent agreement would bring considerable
benefits for both countries and provided the basis for the agreement by Prime Minister
John Howard and Japanese Prime Minister Shinzo Abe in December 2006 to begin FTA
negotiations. To build support in Japan for the commencement of negotiations on an FTA,
the department hosted visits to Australia by a key Japanese industry body, a Japanese
academic and Japanese journalists and, through the Tokyo embassy, organised seminars
on meat and dairy trade involving Australian and Japanese industry representatives. The
decision to commence negotiations coincided with the 50th anniversary of the Agreement
on Commerce between Australia and Japan. The 1957 Commerce Agreement laid the
foundation for our most successful trading partnership over the past 40 years.

        FIGURE 5. AUSTRALIA’S TRADE IN GOODS AND SERVICES WITH JAPAN(a)

                                                Balance                               Exports          Imports
            40 000

            35 000

            30 000

            25 000
$ MILLION




            20 000

            15 000

            10 000

             5 000

                0
                             2001               2002               2003               2004      2005   2006
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
Source: DFAT STARS database and ABS Catalogue 5368.0.




32        D FAT  ANNUAL   REPORT   2006   –   2007
In 2006, Japan remained Australia’s largest export market. Australia’s total exports
(goods and services) to Japan reached $35.6 billion, an increase of 12 per cent on 2005.
Japan was Australia’s top market for exports of primary products (as a whole), agricultural
products (as a whole) and, by item, for coal, liquefied natural gas (LNG), beef, aluminium,
copper ores, woodchips, dairy products and horticulture.




                                                                                                  S ECT I O N 2
The department played a significant role in promoting Australia as an ongoing, stable
source of LNG for Japan, with Australia increasing its market share to become Japan’s
second largest LNG supplier in 2006. We also played a key role in ensuring Australia
maintained its dominance of Japan’s beef import market, supplying almost 90 per cent
of Japan’s beef imports in 2006. We worked closely with the Department of Agriculture,
Fisheries and Forestry to secure further flexibility in Japan’s implementation of its beef
‘snapback’ tariff measure.

The department conducted the first annual high-level bilateral dialogue at secretary/
administrative vice-minister level with Japan in October 2006 and the first bilateral
senior officials’ talks on East Asia in August 2006. We also supported the extensive
new trilateral dialogue (the United States, Australia and Japan), which arose out
of the first ministerial level Trilateral Strategic Dialogue meeting in March 2006
(see sub-output 1.1.10 for more information).

At the 59th meeting of the International Whaling Commission, held in Anchorage in
May 2007, we worked successfully, in cooperation with the Department of Environment
and Water Resources, to restore a majority for countries opposed to Japan’s ‘scientific’
whaling program (see sub-output 1.1.9 for more information).

The department, together with the Department of Families, Community Services and
Indigenous Affairs, helped conclude negotiations on the Australia–Japan Social Security
Agreement. The agreement was signed on 27 February 2007 and is expected to come
into effect on 1 January 2009. It will help provide better access to age pension benefits
for Australians who have worked in Japan.

Following the implementation of the Government’s response to the Review of the
Corporate Governance of Statutory Authorities and Office Holders conducted by Mr John
Uhrig, the Australia–Japan Foundation was re-formed as a bilateral foundation within
the department. The Foundation now operates on the same footing as the department’s
other foundations, councils and institutes in supporting Australian foreign and trade policy
interests and developing the Australia–Japan relationship.

The 2006 Australia–Japan Year of Exchange—a joint prime ministerial initiative to mark
the 30th anniversary of the signing of the Basic Treaty of Friendship and Cooperation
between the two countries—succeeded in raising awareness in Australia and Japan about
the strength and diversity of the bilateral relationship, and enhanced the community
and institutional linkages. As part of the official close of the Australian program, the
department coordinated an Australian Festival in Tokyo from 27 September to 9 October
2006. We also worked closely with the Department of the Prime Minister and Cabinet
and Tourism Australia on arrangements for a rugby match between the Prime Minister’s




                                                           OUTPUT  1.1   North asia         33 
Invitational XV and the Japanese national team in Tokyo in November 2006. The Year of
Exchange was a valuable means of reaffirming the goodwill and friendship between our
two countries.

High-level visits

In addition to the visits by the Prime Minister in March 2007, and the Minister for Foreign
Affairs and the Minister for Defence in June 2007, the department supported a number
of high-level visits to strengthen bilateral engagement with Japan. Mr Downer visited Tokyo
in August 2006 to advance the Government’s key objectives for the bilateral relationship,
including strengthening cooperation on defence and strategic issues, expediting the
finalisation of the Joint FTA Feasibility Study, and developing common approaches to the
evolution of regional architecture in East Asia. Mr Truss visited Tokyo in November 2006
to intensify Australia’s FTA advocacy efforts in Japan.

Other high-level visits included visits to Australia by a delegation from Japan’s House
of Councillors (Upper House) in August 2006, by the Japan Economic Federation,
Japan’s peak industry body in January 2007 and by Japan’s peak agricultural industry
body, JA Zenchu, in February 2007. These visits allowed the department to press our
case for an FTA, and to outline our views on the future development of APEC and the
East Asia Summit.




The Australia–Japan security relationship has advanced markedly in recent years underpinned by our shared values,
common strategic outlook and our respective alliances with the United States. A key achievement was the conclusion of the
Joint Declaration on Security Cooperation in March 2007. Prime Minister John Howard (left) and Japanese Prime Minister
Shinzo Abe exchange copies of the Declaration during the official signing ceremony in Tokyo on 13 March 2007.
Photo: David Foote, Auspic




3 4        D FAT  ANNUAL   REPORT   2006   –   2007
  Australia–Japan Joint Declaration on Security Cooperation

  Prime Minister Howard and Japanese Prime Minister Shinzo Abe signed
  the Australia–Japan Joint Declaration on Security Cooperation in Tokyo on
  13 March 2007.




                                                                                                  S ECT I O N 2
  The Joint Declaration is a positive and forward-looking document that paves the way
  for even closer security cooperation between Australia and Japan. It reflects our
  shared values and builds on our substantial history of working together to promote
  peace and prosperity in the Asia-Pacific region and beyond.

  The Joint Declaration commits both countries to strengthen practical cooperation
  between their respective defence forces and other security-related agencies,
  including through exchange of personnel and joint exercises and training.

  The scope of security cooperation will include, but is not limited to, the following:

  • law enforcement on combating transnational crime, including trafficking in
    illegal narcotics and precursors, people smuggling and trafficking, counterfeiting
    currency and arms smuggling

  • border security

  • counter-terrorism

  • disarmament and counter-proliferation of weapons of mass destruction and their
    means of delivery

  • peace operations

  • exchange of strategic assessments and related information

  • maritime and aviation security

  • humanitarian relief operations, including disaster relief

  • contingency planning, including for pandemics.

  The Joint Declaration also established joint foreign and defence ministers’ talks to
  enable better coordination in the above areas. The inaugural Australia–Japan Joint
  Foreign and Defence Ministerial Consultations—JAUSMIN—was held in Tokyo on
  6 June 2007, less than three months after signature of the Declaration.



China

The department played a key role in strengthening Australia’s relations with China.
Two-way trade in goods and services reached $50 billion in 2006, with China cementing
its place as our second-largest trading partner and second-fastest growing export market.




                                                           OUTPUT  1.1   North asia         35 
On current rates of growth, China is expected to become Australia’s largest trading
partner by the end of 2007.

In early 2007 Australia implemented agreements on legal mutual assistance, the supply
of Australian uranium to China’s nuclear power program, and nuclear cooperation that
were signed during Premier Wen Jiabao’s visit in April 2006. The steering committee
established under the Coal Mine Safety MOU is considering mine site project proposals.
As well, reciprocal visits by young Chinese and Australian scientists occurred under the
bilateral arrangement for exchange of young scientists, and three projects were awarded
funding under the Agricultural Technical Cooperation Program.

High-level visits

The department supported a number of high-level visits in both directions that
strengthened our bilateral engagement. We supported separate visits to China by
Mr Downer and Mr Truss in April 2007, and by the Deputy Prime Minister and Minister for
Transport and Regional Services, Mark Vaile, in December 2006.

In April 2007, Mr Downer visited Beijing and Shanghai and met senior Chinese
Government representatives, including the Secretary General of the State Council,
Hua Jianmin, and Foreign Minister Li Zhaoxing, to discuss a range of political and regional
strategic issues. These discussions covered China’s role in resolving the North Korean
nuclear issue, advancing the agenda of Asia-Pacific Economic Cooperation (APEC), and
Australian cooperation with China to address its significant environmental challenges.

Mr Truss met the Minister for Commerce, Bo Xilai, in April 2007 to further Australia’s
trade and economic interests with China, including discussions on advancing the
negotiations on the proposed FTA. Mr Truss co-chaired the second ministerial meeting
of the High-level Economic Cooperation Dialogue in Beijing with Chairman Ma Kai of
the National Development and Reform Commission, China’s key economic planning
agency. The meeting promoted a greater understanding of the investment regimes of
each country and identified potential areas for increased trade in energy and resources.
China reaffirmed its commitment to work with Australia on environmental issues
in the Asia-Pacific Partnership on Clean Development and Climate and through the
Joint Coordination Group on Clean Coal Technology and the Australia–China Climate
Change Partnership.

The department supported a visit to Australia by Commerce Minister Bo Xilai in
October 2006 to co-chair the eleventh meeting of the Australia–China Joint Ministerial
Economic Commission (JMEC) which aims to advance the bilateral economic and trade
relationship. The JMEC meeting provided a forum to review developments in the economic
and trade relationship with the Chinese Ministry of Commerce, which has responsibility
for key aspects of bilateral trade and investment, to address specific trade concerns and
promote new areas of cooperation. The department also supported a visit to Australia by
Vice Premier Zeng Peiyan in March 2007 to promote bilateral cooperation on resources
and environmental issues, including water security and clean coal technology. During the
visit Vice Premier Zeng signed a declaration of intent to cooperate with Australia on water




36        D FAT  ANNUAL   REPORT   2006   –   2007
scarcity, building upon the MOU between Australia and China on water management. He
also witnessed the signing of MOUs between Australia and China on aviation security and
product standards, as well as four commercial deals involving renewable energy and clean
coal technology.

Commercial interests




                                                                                                                                 S ECT I O N 2
The department supported a wide range of Australian commercial interests in China.
Following the meeting of the Joint Ministerial Economic Commission in October 2006,
the department facilitated a business forum for 13 Australian representatives of business
and industry groups with interests in China to discuss economic and trade issues with the
Chinese Minister for Commerce.

The department facilitated a visit to China in October 2006 by the then Parliamentary
Secretary to the Minister for Foreign Affairs, Teresa Gambaro, to promote industry-to-
industry links between the two countries. The Parliamentary Secretary led a 50-strong
Australian industry delegation to Beijing, Shanghai, Hong Kong and Macau to attend the
second biennial Australia–China Business Forum. The forum, organised in cooperation
with the Australia–China Business Council and the Australian Chambers of Commerce
in Beijing, Shanghai and Hong Kong, brought together experts from the public and
private sectors to discuss developments in the Chinese economy and opportunities for
future growth.

In November 2006, the department facilitated the Australia–China Business Council
Networking Day in Canberra. The event provided 67 industry representatives from the
Australian finance, services, manufacturing, mining and education sectors with an
opportunity to engage with four Australian ministers, a shadow minister and senior
government officials on China trade and business issues.

        FIGURE 6. AUSTRALIA’S TRADE IN GOODS AND SERVICES WITH CHINA(a)

                                                Balance                               Exports                    Imports
            30 000

            25 000                                                                                                                    Bala

            20 000                                                                                                                    Impo

            15 000
                                                                                                                                      Expo
$ MILLION




            10 000

              5 000

                 0

             –5 000

            –10 000
                             2001               2002               2003               2004          2005         2006
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
Source: DFAT STARS database and ABS Catalogue 5368.0.




                                                                                          OUTPUT  1.1   North asia         37 
The department supported the efforts of Australian energy companies to market LNG
in China. We assisted with the implementation of the Guangdong Phase I LNG supply
contract, which was signed in 2002 and is still Australia’s largest single export contract.
We facilitated the participation of nine Chinese academic and industry representatives in
the second annual LNG training program under the Australia–China Natural Gas Technology
Partnership Fund. The sixth-month course, jointly conducted in Perth by the University of
Western Australia and Curtin University of Technology, provided specialist training on the
gas industry and has assisted the operation of the Guangdong Phase One LNG terminal
and associated facilities.

The department worked closely with Invest Australia, Geoscience Australia and state
governments to host the first Australia–China Mining Seminar in Beijing in November
2006 to promote Australia’s mining sector to 170 key Chinese Government officials and
business representatives. The seminar helped identify Chinese interest in specific mineral
sectors in Australia, and provided information to the Chinese Government about the
approvals process for mineral exploration and development in Australia.




The Prime Minister, Mr John Howard, and the Premier of the State Council, China, Mr Wen Jiabao, holding bilateral talks.
Photo: David Foote, Auspic




Institutional links

The department supported a number of bilateral talks and other high-level meetings
to engage China on matters affecting the regional and international community. We
supported secretary-level senior officials’ talks in October 2006 and June 2007 that
strengthened Australia’s engagement with China on key strategic issues, including
climate change, regional links and the Korean Peninsula.




38        D FAT  ANNUAL   REPORT   2006   –   2007
The bilateral Australia–China agreements on nuclear cooperation and the sale of uranium
entered into force on 3 February 2007, following intensive departmental negotiations with
Chinese authorities.

The department assisted the Department of the Prime Minister and Cabinet and the
Department of Industry, Tourism and Resources to establish the Australia–China Joint




                                                                                                                                 S ECT I O N 2
Coordination Group on Clean Coal Technology, a joint proposal of Prime Minister
Howard and Chinese Premier Wen Jiabao. The Joint Coordination Group brings together
leaders from industry, the coal research community and the Australian and Chinese
governments to identify and implement joint clean coal technology projects. We assisted
the Department of Industry, Tourism and Resources to hold the first meeting of the Joint
Coordination Group in Brisbane in March 2007, which agreed on the terms of reference
and work program. The co-chairs also agreed to undertake a stocktake of clean coal
activities in their respective countries.

Taiwan

The department helped Australian business increase trade and investment with Taiwan.
Australian merchandise exports grew 14 per cent in 2006 to $6.3 billion.

We facilitated Taiwanese investment in Australia in the resources and other sectors and
helped Australian investors with regulatory issues in Taiwan. We achieved some progress
on agricultural market access and promoted trade opportunities in the energy, electronics,
education, biotech and food and beverage sectors through officials’ talks and other
advocacy for Australian businesses. The department supported a visit to Taiwan in August
2006 by the Parliamentary Secretary for Agriculture, Fisheries and Forestry, Sussan
Ley, which made progress towards resolution of a number of difficult agriculture-related
quarantine issues.

        FIGURE 7. AUSTRALIA’S TRADE IN GOODS AND SERVICES WITH TAIWAN(a)

                                                Balance                              Exports                     Imports
            7000
                                                                                                                                      Bala
            6000

                                                                                                                                      Impo
            5000

                                                                                                                                      Expo
            4000
$ MILLION




            3000

            2000

            1000

               0
                             2001               2002               2003               2004          2005          2006
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
Source: DFAT STARS database and ABS Catalogue 5368.0.




                                                                                          OUTPUT  1.1   North asia         39 
Hong Kong

The department helped Australian companies identify and win business opportunities
that have opened as a result of Hong Kong’s strong economic growth and increasing
integration with mainland China. Australian merchandise exports to Hong Kong rose
18 per cent to $3.1 billion in 2006. Our advocacy contributed to a Hong Kong Government
decision to reduce the excise on imported wine and beer, creating a valuable market
opportunity for Australian exporters.

The department supported a visit to Hong Kong by Mr Downer in August 2006 which
reinforced close government-level links, advanced economic objectives and underlined
Australia’s support for universal suffrage as soon as practicable under the Basic Law.
We also facilitated a visit to Hong Kong in October 2006 by the then Parliamentary
Secretary for Foreign Affairs, Ms Gambaro, which reinforced our bilateral and regional
economic interests.

Macau

We helped Australian companies win lucrative business arising from Macau’s economic
boom in a diverse range of sectors, including civil engineering, design and construction,
aviation, food and beverages, legal and financial services, gaming and education.
Through our advocacy to Macau authorities we also assisted Australian businesses
resolve a number of regulatory issues. In October 2006, we facilitated a visit by the
then Parliamentary Secretary for Foreign Affairs, Ms Gambaro, which reinforced positive
perceptions of Australia by the Macau Government and senior Macau business people.
We increased our consular services to the rapidly growing resident Australian population
in Macau through community briefings and more frequent consular visits.


Republic of Korea (ROK)

The department continued its active support for Australian business in the ROK market to
expand bilateral trade and investment. The ROK is Australia’s third-largest merchandise
export market, with Australian exports increasing by more than 12 per cent in 2006 to
reach $12.3 billion. The increase was underpinned by continuing strong performance by
resources and energy exports and increased beef exports. Our role in successful efforts
to extend a major LNG supply contract was acknowledged by industry. In September
2006, we facilitated a visit to the ROK by the Minister for Agriculture, Fisheries and
Forestry, Peter McGauran, which included an effective and widely publicised promotion of
Australian beef.

We worked closely with other Australian agencies and state and territory governments to
defend and promote Australia’s commercial interests in the ROK. In close cooperation
with the Department of Agriculture, Fisheries and Forestry, we secured the early release
of a shipment of live cattle from post-arrival quarantine in the ROK.

The department continued to advocate to ROK ministers and senior officials the mutual
benefits of a comprehensive bilateral free trade agreement (FTA). We agreed with the




4 0        D FAT  ANNUAL   REPORT   2006   –   2007
ROK to sponsor a joint non-government FTA study, which commenced in April 2007
and the outcomes of which will be reported to the Government in December 2007. The
results of the joint study will inform discussions by senior officials, who will then make
recommendations on next steps to both governments. Given both countries’ active FTA
agendas, we highlighted the growing importance of a comprehensive bilateral FTA to
defend and promote our respective interests in each other’s market. We continued our FTA




                                                                                                                                 S ECT I O N 2
outreach activity with the business communities, and gained strong endorsement for an
FTA from the peak industry body in the ROK, the Federation of Korean Industry.

        FIGURE 8. AUSTRALIA’S TRADE IN GOODS AND SERVICES WITH KOREA(a)

                                                Balance                              Exports                    Imports
            15 000
                                                                                                                                      Bala
            12 500
                                                                                                                                      Impo
            10 000
                                                                                                                                      Expo
$ MILLION




             7 500


             5 000


             2 500


                0
                             2001               2002               2003               2004         2005          2006
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
Source: DFAT STARS database and ABS Catalogue 5368.0.




High-level visits

The department facilitated a visit to Australia in December 2006 by ROK President Roh
Moo-hyun, the first visit by a ROK head of state since 1999. We used the President’s visit
to lift the profile and expand the substance of the bilateral relationship. Visit outcomes
included agreement to conduct the FTA study, and the signing of bilateral social security
and migratory birds agreements. The President met Prime Minister Howard and Cabinet
ministers during his visit. Mr Downer hosted a visit by the then ROK Foreign Minister Ban
Ki-moon in August 2006 for the annual Foreign Ministers’ Meeting, and met with Mr Ban’s
successor, Song Min-soon, during President Roh’s visit.


Democratic People’s Republic of Korea (DPRK)

The department continued to work closely with like-minded countries to urge the DRPK
to abandon its nuclear and other weapons of mass destruction (WMD) programs.
Following its ballistic missile tests in July 2006, the DPRK conducted a nuclear test on
9 October 2006. Australia, in close cooperation and consultation with like-minded allies,
played an active role in urging a strong international response to these provocative acts.




                                                                                          OUTPUT  1.1   North asia         41 
The department worked closely with other agencies to implement fully the measures
contained in the United Nations Security Council (UNSC) Resolution 1718 adopted in
response to the nuclear test.

In addition to the measures under UNSC Resolution1718, Australia also implemented a
number of bilateral actions. Mr Downer announced a further tightening of visa issue for
DPRK citizens and, jointly with Mr Vaile, Minister for Transport and Regional Services, a
port ban on DPRK-flagged ships. In September 2006, in cooperation with Japan and the
United States, Mr Downer announced the implementation of financial sanctions against a
number of companies and one individual connected with financing the DPRK’s continuing
efforts to develop its nuclear and other WMD programs.

Australia welcomed the agreement reached by the members of the Six-Party Talks on
13 February 2007 on steps towards the resolution of the nuclear issue. In March 2007,
Mr Downer dispatched a delegation, led by a senior departmental officer, to urge
the DPRK to implement its Six-Party commitments without delay. During the visit, the
Australian delegation emphasised to senior DPRK representatives that development of
the bilateral relationship would remain suspended pending progress by the DPRK towards
the abandonment of its nuclear program, and raised Australia’s serious concerns over
human rights issues. The delegation also emphasised Australia’s willingness to provide
assistance to the DPRK should it implement its commitments under the Six-Party Talks
and take concrete steps towards abandoning its nuclear programs. Other Six-Party
members welcomed our delegation’s visit, which emphasised to the DPRK the wider
international community’s interest in resolving the nuclear issue. These messages have
been regularly reinforced in meetings with the DPRK Ambassador in Canberra.

Despite the suspension of bilateral relations with the DPRK and independent of nuclear
and WMD issues, Australia continued to provide humanitarian assistance to relieve the
suffering of the DPRK people. Mr Downer announced in April that Australia would provide
nearly $4 million to support multilateral programs run by the United Nations and other
agencies to improve health, hygiene and nutrition in the DPRK.


Mongolia

The department provided support for the first visit to Mongolia by Mr Downer in
April 2007. During the visit Mr Downer signed a joint statement with his Mongolian
counterpart, Mr Nyamaa Enkhbold, in which the two agreed to establish a joint working
group on mining and energy cooperation and to undertake regular senior officials’ talks on
bilateral and other issues of mutual interest. Both sides acknowledged that Australia was
one of Mongolia’s ‘Third Neighbours’ (an honour bestowed by the Mongolian Government
to emphasise a close cooperative relationship with another country), and Mr Downer
announced that Australia would open an honorary consulate in Mongolia.

Australia’s ambassador to China led a delegation, including 30 Australian business
representatives, to Mongolia in June 2007, to develop further bilateral economic relations.




42        D FAT  ANNUAL  REPORT   2006   –   2007
  TABLE 5. AUSTRALIA’S TRADE IN GOODS AND SERVICES WITH NORTH ASIAN ECONOMIES


                                          Exports         Exports                            Imports     Imports
                                                                             Trend                                      Trend
                                                                            growth                                     growth
Goods and services (a)                       2005            2006       2001–2006               2005       2006    2001–2006




                                                                                                                                  SECT I O N 2
                                               $m              $m                %                $m         $m             %
Japan                                     31,825          35,570                    6.0       19,192     19,388             2.5
China                                     19,156          23,705                  22.6        22,570     26,598            19.0
Republic of Korea                         12,378          13,963                    5.4        5,514      7,324             6.4
Taiwan                                      5,995           6,743                   3.7        3,860      4,381             5.9
Hong Kong, China                            4,228           4,749                  –4.5        2,941      3,320             0.4
        (b)
Other                                            51              68                 7.3           28          26           15.4
Total North Asia                          73,633          84,798                    8.1       54,106     61,038             8.7

(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
(b) Goods data only. Services data is not published by the ABS for these countries.
Source: DFAT STARS database and ABS Catalogue 5368.0.




Outlook

The department will continue to work with North Asian partners to promote regional
stability and Australia’s economic interests. The high-level visits by North Asian leaders
from APEC economies during Australia’s year as APEC host in 2007 will provide a unique
opportunity to further our engagement on economic, political and strategic issues.

The department will continue to strengthen Australia’s economic relationship with
Japan, including by seeking to achieve a successful conclusion to FTA negotiations. We
will pursue implementation of the activities agreed under the Action Plan provided for
in the Joint Declaration on Security Cooperation and other mechanisms to reflect our
shared strategic interests with Japan, including cooperation on peacekeeping and peace-
building, counter-terrorism and counter-proliferation. We will strengthen cooperation
with Japan on regional and international issues including through the annual meeting of
foreign ministers, the annual joint foreign and defence ministers’ meeting and a range of
dialogues at senior officials’ level.

The Australia–China relationship rests on a firm basis of economic complementarity,
growing people-to-people links and a history of high-level political engagement. A high point
of this 35th anniversary year of the establishment of diplomatic relations will be President
Hu Jintao’s bilateral visit associated with APEC. The visit provides an opportunity to
register clearly with the Chinese leadership key Australian goals and objectives across
a range of bilateral and international issues, including the finalisation of an FTA, climate
change cooperation and the denuclearisation of the DPRK. The visit will also see key
law enforcement treaties and other agreements signed. The department will work with




                                                                                          OUTPUT  1.1   North asia         43 
other Australian agencies to implement these and existing agreements. We will promote
Australian interests in consular matters, human rights, non-proliferation and disarmament,
through established institutional mechanisms. The bilateral trade relationship continues
to surge and, based on current rates of growth, China is expected to become Australia’s
largest trading partner by the end of 2007 (although Japan will remain our largest export
market). We will seek to improve market access opportunities for Australian goods and
services through the FTA negotiations and by addressing specific impediments.

We will continue to lift the tempo of our existing strong and friendly relations with the ROK
to realise more fully the potential of our shared democratic values, strategic perceptions
and economic complementarity. A key priority will be the successful conclusion of the
non-government FTA study, and the department is consulting closely with industry to
ensure business views are taken into account. The department will continue to work
closely and actively with allies, particularly the United States and Japan, and the broader
international community to urge the DPRK to honour its commitments to dismantle its
nuclear programs. We will remain ready to support the Six-Party Talks providing the DPRK
demonstrates its willingness to abandon its nuclear weapons programs.




4 4        D FAT  ANNUAL   REPORT   2006   –   2007
1.1.2 SOUTH-EAST ASIA


Overview




                                                                                                SECT I O N 2
  The department’s active engagement, both bilaterally and through regional
  mechanisms, helped strengthen Australia’s security and economic interests and key
  bilateral relationships with countries in the South-East Asian region.

  The department successfully negotiated the Australia–Indonesia Agreement on the
  Framework for Security Cooperation to deepen and expand bilateral cooperation with
  an important regional partner on matters affecting our common security interests.

  The department pursued extensive bilateral and regional cooperation with South-East
  Asian countries on counter-terrorism and other security and transnational issues of
  direct relevance to Australian interests. A significant highlight of counter-terrorism
  cooperation was the Sub-Regional Ministerial Meeting on Counter-Terrorism, which
  Australia co-hosted with Indonesia in March 2007.

  In close cooperation with other government agencies, we worked to ensure
  Australia was at the forefront of the international response to help restore and
  maintain security in East Timor after the unrest in April–May 2006. This included
  an Australia-led international stabilisation force to help the UN Police restore and
  maintain security in East Timor.

  The department sought to protect Australian interests in Thailand by coordinating
  the Government’s response to the 19 September 2006 military coup, including by
  advocating an early return to democracy.

  We sought to protect Australia’s regional strategic and economic interests by
  influencing the evolution of East Asian regional architecture, including by contributing
  to a concrete program of activity for the East Asia Summit. We also supported the
  Third Regional Interfaith Dialogue and a range of faith-based exchange visits with
  countries in the region.

  The department continued to advocate Australia’s bilateral commercial interests,
  as well as Australia’s position on regional and international trade and economic
  issues, through high-level dialogue with key regional trading partners. This included
  supporting ministerial participation in the Joint Trade Committee meeting with
  Malaysia and the Australia–Indonesia Trade Ministers’ Meeting in Jakarta, as well
  as continued efforts to build on existing bilateral free trade agreements (FTAs) with
  Singapore and Thailand.




                                                    OUTPUT  1.1   south-east asia         45 
Indonesia

The department enhanced bilateral cooperation with Indonesia across a number of shared
security, political and trade interests.

The department successfully negotiated the Australia–Indonesia Agreement on the
Framework for Security Cooperation, signed by Mr Downer and his Indonesian counterpart,
Dr Hassan Wirajuda, on 13 November 2006. The agreement reflects a confident and
maturing bilateral relationship. It aims to deepen and expand bilateral cooperation
on matters affecting our common security. It provides a strong legal framework for
encouraging intensive dialogue, exchanges and implementation of cooperative activities on
such issues as counter-terrorism, maritime and aviation security, emergency management
and response, defence and police cooperation and combating the proliferation of weapons
of mass destruction.




Minister for Foreign Affairs, Mr Alexander Downer, (left) and Minister of Foreign Affairs of Indonesia, Dr Hassan Wirajuda,
signing the Australia–Indonesia Agreement on the Framework for Security Cooperation in Lombok, Indonesia on
13 November 2006.
Photo: Rasto, Indonesian Department of Foreign Affairs



We continued to strengthen our already extensive bilateral cooperation with Indonesia on
counter-terrorism. Australia and Indonesia co-hosted a Sub-Regional Ministerial Meeting
on Counter-Terrorism in Jakarta in March 2007, which highlighted several areas for further
cooperation. We provided continuing support, including presenters, course facilitation and
funding, to the Jakarta Centre for Law Enforcement Cooperation (JCLEC). JCLEC has now
trained more than 2000 law enforcement officers from across the region, including more
than 700 in 2006–07. Our joint efforts with Indonesia have seen marked results, with
Indonesian police capturing key members of the Jema’ah Islamiyah terrorist network in
June 2007.




4 6        D FAT   ANNUAL   REPORT   2006   –   2007
The department helped implement measures to combat illegal fishing in Australia’s
northern waters, and implemented joint measures with Indonesia to tackle the problem
at its source. These included a public information campaign and co-hosting a regional
meeting of fisheries ministers in May 2007, which endorsed a regional plan of action to
promote responsible fishing practices and combat illegal fishing.




                                                                                                 SECT I O N 2
The department continued to take forward implementation of the bilateral Trade and
Investment Framework (TIF) agreed in 2005. It convened the TIF Policy Dialogue and the
TIF Experts Group to explore opportunities to strengthen the commercial relationship,
including the recommendation that the Governments of Australia and Indonesia consider
pursuing a bilateral FTA. We continued to advance Australia’s market access interests,
strongly advocating the need for improved conditions for meat and horticultural products
and ensuring the interests of Australian exporters were represented in processes to
reform Indonesia’s tariff system. Our representations secured a continuation of our trade
in wheat flour and the lifting of restrictions on most offal products.

As in the past, the experience of shared tragedy brought Australia and Indonesia closer
together. The Garuda plane crash in Yogyakarta in March 2007 resulted in tragic losses
and necessitated a close and cooperative response with the Indonesian authorities.

We facilitated visits by a large number of Australian ministers and officials to Indonesia,
including two visits by Mr Downer and a visit by Mr Truss to attend the Seventh
Australia–Indonesia Trade Ministers’ Meeting and lead a high-level business mission.
We supported visits to Indonesia by the Minister for Health and Ageing, Tony Abbott,
the Attorney-General, Philip Ruddock, the Minister for Immigration and Citizenship,
Kevin Andrews, the Minister for Environment and Water Resources, Malcolm Turnbull,
the Minister for Agriculture, Fisheries and Forestry, Peter McGauran, and the Minister
for Fisheries, Forestry and Conservation, Eric Abetz. This diverse political contact
demonstrated the depth and range of our shared interests with Indonesia.


Thailand

The department coordinated the Government’s response to the 19 September 2006
military coup in Thailand, including registering with coup leaders and the interim
government the importance of an early return to democracy. Australia has significant
interests in Thailand, spanning trade and investment, law enforcement, counter-terrorism,
education, defence, migration and tourism. Since the military coup, the department has
worked closely with other agencies to ensure that bilateral interaction with the interim
government and Thai security forces is appropriate.

The department’s efforts to advance the Thailand–Australia Free Trade Agreement’s
(TAFTA) forward agenda, covering commitments by both parties to commence negotiations
on services, investment, government procurement, competition and business mobility,
were affected by the coup and the caretaker conventions in place before the coup. We
continued to support Australian businesses to capitalise on TAFTA, with approximately
300 companies registering as exporters to Thailand and 6000 individual TAFTA certificates




                                                     OUTPUT  1.1   south-east asia         47 
of origin being issued in 2006–07. This represents continued strong interest by Australian
businesses in the opportunities provided by TAFTA.


Singapore

Singapore is a major defence and trade partner in ASEAN, and the department continued
to support close dialogue with the Singapore Government on bilateral and regional
security and economic policy settings and approaches. The Secretary led discussions in
October 2006 with his counterpart, providing for a productive exchange of views on key
bilateral, regional and international issues. The department supported a range of visits
to Singapore to further our bilateral cooperation on counter-terrorism and move towards
effective implementation of measures to control the illegal spread of Man-Portable Air
Defence Systems (MANPADS).

The department continued preparations throughout the year for the next ministerial review
of the Singapore–Australia Free Trade Agreement, leading an interdepartmental process
to encourage Singapore to respond to Australia’s key interests. The department’s priority
remains ensuring that a second review results in a balanced package of outcomes with
commercially meaningful results for Australian business.

The department also provided briefing and logistical assistance to help ensure the
success of key high-level visits, such as those by the Governor-General to Singapore in
September 2006, and by former Singapore Prime Minister and now Minister Mentor Lee
Kuan Yew to Australia in March–April 2007.


Malaysia

The department’s activities capitalised on the closer level of political engagement with
Malaysia over recent years. We helped facilitate the Prime Minister’s official visit to
Malaysia in November–December 2006. We provided submissions to an Australian
Parliamentary Inquiry into relations with Malaysia which, in its report in March 2007,
concluded that the level of interaction between Australia and Malaysia underpinned a
sound bilateral relationship. The department organised the Secretary’s discussions with
his Malaysian counterpart in October 2006, with the talks underlining the closer level of
political dialogue.

The department organised the 13th Joint Trade Committee meeting with Malaysia
in Adelaide in August 2006 with a view to furthering our bilateral and regional trade
interests. The then Minister for Trade, Mr Vaile, and his Malaysian counterpart, Rafidah
Aziz, reviewed progress in the Malaysia–Australia Free Trade Agreement (MAFTA)
negotiations. Mr Vaile pressed Malaysia on Australia’s halal meat export interests and
advocated Australian views on regional economic integration.

The department provided secretariat support for the Australia–Malaysia Institute
(see output 3.1 on page 220).




48        D FAT  ANNUAL  REPORT   2006   –   2007
The Philippines

The department increased its programs and visits, particularly in counter-terrorism and
security cooperation, defence and development assistance. This focus was reflected in
the visit to Australia in May 2007 by Philippine President Gloria Arroyo, when agreements
relating to the Status of Visiting Forces and bilateral development assistance for 2007–11




                                                                                                SECT I O N 2
were signed. The department played a significant role in developing and implementing
the program announced by Mr Downer during President Arroyo’s visit to provide further
practical assistance to Philippine institutions dealing with human rights matters.

The department continued to support Australian commercial interests in the Philippines.
Close coordination with other relevant agencies was required to ensure agriculture-related
irritants in the relationship were managed effectively.


East Timor

The department worked closely with the Department of Defence and the Australian Federal
Police to ensure Australia was at the forefront of the international response to help
restore and maintain security in East Timor after the unrest of April–May 2006. Following a
request for assistance by the East Timorese Government, the United Nations agreed that
Australia should lead an international stabilisation force to support United Nations Police.
While our primary focus is helping to maintain security, we also worked towards achieving
our other goals of supporting good governance and sustainable economic development.

The department coordinated Australian parliamentary and government delegations to
observe the presidential and parliamentary elections in East Timor in April–May and
June 2007 respectively (see box below).

The department also concluded two landmark agreements on arrangements in the
Timor Sea in February 2007 (see sub-output 1.1.9 for more information).




                                                    OUTPUT  1.1   south-east asia         49 
   East Timor’s presidential elections

   East Timor held presidential elections—the first organised by the East Timorese
   themselves—in April and May 2007. Despite the challenging security environment
   and difficult access to some regions, the elections took place peacefully and
   reflected the will of the people. The success of the elections was a welcome sign for
   East Timor’s young democracy.

   The department (including through Australia’s embassy in East Timor) coordinated
   and supported official Australian observer delegations at both rounds of the
   presidential elections, on 9 April and 9 May. The delegation to the first round was
   led by Mr David Tollner MP, and included Senator Claire Moore and officials from
   the department and the Australian Electoral Commission. The delegation observed
   polling and counting in Dili and the district of Liquica, and reported that the voting
   and counting processes it observed were in line with international standards for
   democratic elections. The delegation was impressed with the professional work of
   electoral officials at polling centres it observed.

   The delegation to the second round comprised officials from the department and
   the Australian Electoral Commission, and again observed polling and counting in
   Dili and Liquica. The delegation reported that the voting and counting processes it
   observed were conducted in a professional manner and that it saw no evidence of
   interference, violence, intimidation or fear.

   The department also arranged for a delegation of officials representing the
   department, Australian Electoral Commission and AusAID to visit East Timor to
   observe the 30 June parliamentary elections.




   Ambassador Ms Margaret Twomey (left) observing the vote in East Timor’s presidential elections at a polling centre
   at Tasi Tolu on 9 April 2007.




5 0        D FAT   ANNUAL   REPORT   2006   –   2007
Vietnam

The department’s close cooperation with Vietnam as host of APEC in 2006 made a
positive contribution to the bilateral relationship. The department supported visits by
the Prime Minister to Vietnam for APEC and a bilateral program, and by Mr Downer and
Mr Truss for the APEC meetings in November 2006. This was in addition to support for




                                                                                                                                SECT I O N 2
APEC-related visits by the Treasurer, Mr Costello, and the Minister for Small Business and
Tourism, Ms Bailey. High-level visits to Australia during this period included that by the
Vice President of Vietnam, Madame Hoa.

The department supported the fifth bilateral human rights dialogue with Vietnam, leading
a delegation to the talks in Hanoi. The department also supported the process to locate
and later repatriate the remains of two Australian servicemen killed in the Vietnam War.

  TABLE 6. AUSTRALIA’S TRADE IN GOODS AND SERVICES WITH SOUTH–EAST ASIA


                                          Exports         Exports                              Imports   Imports
                                                                             Trend                                      Trend
                                                                            growth                                     growth
Goods and services (a)                       2005            2006       2001–2006                2005      2006    2001–2006
                                               $m              $m                %                 $m        $m             %
Indonesia                                   4,436           5,247                   3.9         4,540     5,107          –0.2
Malaysia                                    3,729           4,035                   3.5         6,883     7,589          11.6
Philippines                                 1,020           1,186                  –5.3         1,011     1,035           5.6
Singapore                                   6,472           7,407                  –1.5        12,179    14,838          20.0
Thailand                                    4,770           4,972                 13.2          5,726     7,496          15.8
Vietnam                                        931          1,884                 18.9          3,770     5,355          16.7
Other                                          235             235                  5.3           846     1,326          17.3
Total ASEAN                               21,593          24,966                    3.7        34,954    42,746          13.3
East Timor (b)                                   18              30                       ..        1         1            ..
Total South-East Asia                     21,611          24,996                    3.7        34,955    42,747          13.3

(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
(b) Goods data only. Services data is not published by the ABS for East Timor.
Source: DFAT STARS database and ABS Catalogue 5368.0.




The department continued its dialogue and cooperation with Brunei on counter-terrorism,
and facilitated officials’-level visits in both directions for this purpose. The department
also continued to lobby the Brunei Government in support of a number of Australian
companies considering investments there.

Australia’s relationship with Cambodia was enhanced by the visit to Australia of
Prime Minister Hun Sen in October 2006. The department supported the visit, which
saw the signature of a prisoner transfer agreement and a bilateral MOU on investment
cooperation. We strongly supported international efforts to establish a tribunal in




                                                                                   OUTPUT  1.1   south-east asia         51 
Cambodia to try those suspected of atrocities during the Pol Pot era. We assisted
Cambodia’s development of its counter-terrorism capacity. Support for the democratic
process in Cambodia continued through our participation in an international observer
mission for the commune elections in May 2007.

The department continued to develop Australia’s relations with Laos in the areas of
human rights, combating transnational crime and pandemic preparedness, and by leading
the Australian delegation to the inaugural bilateral human rights dialogue. We cooperated
closely with Australian business interests on investment in the mining sector.

Australia’s relations with Burma continued to be limited by the lack of democratic
reform and human rights observance in that country. The department made regular
representations to regime leaders calling for democratic reform, genuine national
reconciliation and respect for human rights. We strongly protested against the death
in detention of political prisoner Thet Win Aung and the extension of the detention of
Aung San Suu Kyi. Australian delegations used their participation in UN bodies and
other international forums to urge reform in Burma. Consistent with our regional security
interests, the department worked closely with other departments and agencies in support
of focused humanitarian assistance to the people of Burma and to ensure interaction with
the regime remained limited to our key national priorities such as transnational crime and
public health, including HIV/AIDS and avian influenza.


ASEAN and regional issues

The department continued to influence evolving East Asian regional architecture by
encouraging, and contributing to, a concrete program of activity for the East Asia Summit
(EAS). We provided support to visits by the Prime Minister and ministers to the EAS
and related meetings in the region. At the EAS Leaders’ Summit in the Philippines
in January 2007, Prime Minister Howard and representatives from the 15 other EAS
member countries agreed on a forward work program, including in Australia’s priority
area of regional financial integration and cooperation. The department continued to
lead negotiations on behalf of Australia, with New Zealand, towards an FTA with ASEAN
(see output 1.1.7).

In recognition of the important role that religious and civil society leaders can play in
facilitating regional security and increasing understanding, the department managed
Australia’s involvement in the Third Regional Interfaith Dialogue, which took place in
New Zealand in May 2007. The dialogue, co-sponsored by Australia (as well as Indonesia,
the Philippines and New Zealand), produced an action plan focused on promoting
understanding, and the important role that the education system and media can play
in this regard. The department also supported the establishment of a joint Australia–
European Union youth interfaith forum focusing on the region to be held in the second half
of 2007.




52        D FAT   ANNUAL   REPORT   2006   –   2007
        FIGURE 9. AUSTRALIA’S TRADE IN GOODS AND SERVICES WITH ASEAN(a)

                                                Balance                               Exports                 Imports
            50 000
                                                                                                                                  Bala
            40 000

                                                                                                                                  Impo




                                                                                                                             SECT I O N 2
            30 000

                                                                                                                                  Expo
            20 000
$ MILLION




            10 000

                 0

            –10 000

            –20 000
                             2001               2002               2003               2004       2005         2006
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
Source: DFAT STARS database and ABS Catalogue 5368.0.




Outlook

The department will advance Australia’s political, strategic and economic objectives in
South-East Asia, focusing in particular on counter-terrorism, combating transnational crime
and market access issues.

We expect practical cooperation with Indonesia to expand further in priority areas,
particularly in countering terrorism, efforts to combat illegal fishing and people smuggling,
implementation of the TIF Expert Groups’ recommendations, and measures to address
climate change and deforestation. As in the past, differences of approach may arise on
some issues and effective management of these differences will be important.

The department will strongly advocate a return to democracy in Thailand, and will look for
opportunities to further strengthen bilateral links with a new post-coup government.

We will offer support and encouragement to East Timor for the development of a stable
and secure environment in which to develop good governance and a sustainable economy,
including by engaging closely with the new government.

The department will pressure Burma’s regime to address political reforms and the needs
of its community, and will support the work of the international community to improve the
situation of Burma and its people.

The department will take opportunities to advance Australia’s commercial interests
in South-East Asian countries, including by pressing for further enhancements to
existing FTAs.




                                                                                 OUTPUT  1.1   south-east asia         53 
1.1.3 AMERICAS


Overview


   The formation of a separate Americas Division in July 2006 enhanced the
   department’s capacity to pursue Australia’s substantial and wide-ranging interests
   in the Americas. The creation of a branch dedicated to our relationship with the
   United States brought greater strategic capacity to the management of this mature
   and critical relationship. A separate Canada and Latin America branch (as part of
   Americas Division) allowed a greater focus on expanding Australia’s relationship with
   this dynamic part of the world.
   The department worked to strengthen Australia’s fundamentally important and
   multifaceted relationship with the United States. A wide range of high-level visits
   and exchanges, including successful Australia–United States Ministerial (AUSMIN)
   consultations, maintained considerable momentum in Australia’s alliance with the
   United States. The department took forward implementation of the Australia–United
   States Free Trade Agreement (AUSFTA) as a framework to enhance closer interaction
   between the two economies and advocated reform of US agricultural policies in the
   debate over the 2007 Farm Bill.
   We substantially increased bilateral interaction with Canada, affirming our close
   relationship with this natural partner and our cooperation in a range of multilateral
   forums. As part of our focus on improving Australia’s trade and investment
   relationship with Latin America, we laid the foundations for a comprehensive and
   ambitious free trade agreement (FTA) with Chile and inaugurated the Australia–
   Mexico Joint Experts Group on Strengthening Bilateral Relations (JEG).



United States
The department advanced Australia’s security, economic and people-to-people links
with the United States. We supported ministers’ involvement in AUSMIN 2006,
held in Washington on 12 December 2006. The talks, hosted by Secretary of State
Dr Condoleezza Rice and Deputy Secretary of Defense Gordon England, were characterised
by a strong commitment on both sides to maintain and further develop the critically
important purposes of the alliance. A memorandum of understanding on Production,
Sustainment and Follow-on Development of the Joint Strike Fighter aircraft was signed.
There was also agreement to build support for the Global Initiative to Combat Nuclear
Terrorism through outreach activities in South-East Asia, and a joint commitment to work
together to help counter the proliferation of Man-Portable Air Defence Systems (MANPADS).

Cooperation at the policy and operational level on Iraq and Afghanistan highlighted the
relevance and adaptability of the alliance. The department facilitated close coordination
on counter-terrorism and on our response to the common challenge of dealing with
nuclear-proliferating states such as Iran and the Democratic People’s Republic of Korea




5 4        D FAT   ANNUAL   REPORT   2006   –   2007
(DPRK) (see sub-output 1.1.10 for more information). We used policy planning talks in
August 2006 to influence US thinking on governance issues, Asia-Pacific regionalism,
Islamism and our APEC goals.

Apart from AUSMIN, the department supported a series of high-level bilateral visits that
added further momentum and depth to the relationship. Mr Downer visited California, at




                                                                                                                               SECT I O N 2
the invitation of Dr Rice, as well as Hawaii in May 2007 for discussions on key strategic
and political issues. In January 2007, Mr Truss paid his first visit to Washington as
Minister for Trade to advance Australian interests in the Doha Round and reform of
US agricultural support in the context of the 2007 Farm Bill debate. The department
supported visits to the United States by five other federal ministers.

In January 2007, the ‘Australia Week’ program initiated in 2004 expanded from
G’Day LA to G’Day USA, encompassing Los Angeles and New York. Mr Downer visited the
United States during the promotion, which showcased Australian trade and investment
opportunities and provided a vehicle to advocate our policy positions on energy, climate
change and APEC. Mr Downer delivered a series of speeches and participated in events
drawing influential US business and political audiences. Through the consulate-general in
Los Angeles, the department supported the promotion of Australia as a safe and reliable
supplier of LNG in California.

We helped facilitate the establishment of the United States Studies Centre at the
University of Sydney. The Centre, co-founded with the Australian American Association and
supported with a federal government grant of $25 million in 2006, will deepen Australian
knowledge and understanding of the United States, strengthening the underlying links
between people and institutions in the two countries. From 2008, the Centre will offer a
comprehensive postgraduate program in United States studies.




The annual Australia–United States Ministerial (AUSMIN) consultations are a highlight of the bilateral calendar. In December
2006, the United States hosted the talks in Washington. From left to right: Minister for Defence Dr Brendan Nelson,
Minister for Foreign Affairs Mr Alexander Downer, US Secretary of State Dr Condoleezza Rice, and US Deputy Secretary of
Defense Mr Gordon England at the AUSMIN joint press conference.




                                                                                 OUTPUT  1.1   a mericas            55 
The department continued to attach a high priority to implementation of the Australia–
United States Free Trade Agreement (AUSFTA), now in its third year of operation. Working
in close cooperation with other agencies, we negotiated a scheme to implement Australia’s
commitments under the AUSFTA on the technological protection of copyright material. The
AUSFTA-mandated review of Australian plasma fractionation arrangements (the process
used to extract and purify proteins drawn from human plasma) was completed on schedule.
The government procurement provisions of the AUSFTA were reviewed and efforts to have
remaining US states sign on to the provisions continued. A professional services working
group delegation visited the United States in May 2007 and the department worked in
conjunction with representatives of the legal, accounting and engineering professions to
secure access for Australian professionals to the United States market.

Jointly with the Department of Agriculture, Fisheries and Forestry, the department pursued
expanded market access for Australian agricultural products. The department also built
momentum for the second ministerial-level AUSFTA Joint Committee in early July 2007
to drive the AUSFTA implementation processes.

        FIGURE 10. AUSTRALIA’S TRADE IN GOODS AND SERVICES WITH THE UNITED STATES(a)

                                                Balance                               Exports          Imports
            40 000
                                                                                                                 Bala
            30 000
                                                                                                                 Impo
            20 000
                                                                                                                 Expo
$ MILLION




            10 000


                 0


            –10 000


            –20 000
                             2001               2002               2003               2004      2005   2006
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
Source: DFAT STARS database and ABS Catalogue 5368.0.




We provided an AUSFTA email and telephone hotline service and participated in a series
of well-attended business seminars with Austrade that focused on making the most of
commercial opportunities in the US market and the advantages available under AUSFTA.

The department advocated Australian positions on reform of US agricultural subsidies
in the 2007 Farm Bill debate through a DFAT-chaired government–industry joint working
group. A paper commissioned by the department from a well-respected Washington-
based think tank on the Farm Bill highlighted the benefits of US agricultural reform. The
paper was circulated widely among key US opinion makers, farm organisations and policy
institutes following its launch in Washington in March 2007 and was referred to positively
by the US Secretary of Agriculture, Mike Johanns, in public comments on the Farm Bill.




5 6        D FAT  ANNUAL   REPORT   2006   –   2007
Canada

The department’s efforts contributed to a resurgence in Australia’s traditionally close
relationship with Canada. There was substantially increased bilateral interaction covering
multilateral, social, defence, tourism and business interests. The heightened activity
involved all sectors and levels of government in both countries. The department facilitated




                                                                                                                          SECT I O N 2
high-level visits to Canada, including by Mr Downer, the Minister for Defence, the Attorney-
General and the Secretary, underscoring the value we place on close cooperation and
consultation with Canada across a broad agenda, including in relation to security and
intelligence, energy and resources, the environment (where Australia is supporting
Canada’s bid for membership of the Asia-Pacific Partnership on Clean Development and
Climate—the AP6), and uranium supply and nuclear energy. On Afghanistan, defence and
foreign policy cooperation assumed greater prominence as Australian and Canadian forces
were once again engaged in a common cause, as we were in both world wars and the
Korean War. The enhanced levels of collaboration in these areas added to our traditional
consultation with Canada within the United Nations, APEC and other forums, and to our
close consular relationship.




The then Canadian Minister of Foreign Affairs, Mr Peter MacKay, hosted a visit by Mr Downer to Halifax, Nova Scotia, in
September 2006. Mr Downer and Mr MacKay are pictured in the Speaker’s Library at Province House, Halifax.




                                                                                 OUTPUT  1.1   a mericas           57 
Latin America and the Caribbean

The department enhanced Australia’s relations with Latin America through the negotiation
of new bilateral agreements to promote trade and investment, by advocating Australian
interests in trade liberalisation and supporting high-level visits. Our trade and investment
links have continued to deepen, with a 12 per cent increase in total merchandise trade
in 2006.

On 8 December 2006, the Australian Government announced that it would commence
a bilateral negotiation process with Chile, with a view to developing a comprehensive
FTA. The department led preparatory meetings in Santiago to discuss the timeframe for
negotiations and the scope of the agreement. We also continued to work with Chile on
a wide range of multilateral issues—Chile shares Australia’s interest in achieving an
ambitious result on agriculture in the Doha Round and works closely with Australia as
a member of the Cairns Group and within APEC. The department facilitated a number
of high-level visits to Chile during the year, and also supported visits to Australia by the
Chilean Ministers for Foreign Affairs (Mr Foxley), Mining and Energy (Ms Poniachik) and
Agriculture (Mr Rojas). A parliamentary delegation led by the Speaker of the Australian
Parliament visited Chile and Peru.

The department maintained the momentum of Australia’s growing relationship with
Mexico. The inauguration of the Australia–Mexico Joint Experts Group on Strengthening
Bilateral Relations (JEG)—and its two meetings in April and June 2007—provided
impetus and direction to our bilateral economic relationship, including the possibility of
a comprehensive free trade agreement in the future. The department facilitated a visit
by a delegation of Mexican members of Congress, and supported the inquiry by the
Trade Sub-Committee of the Joint Standing Committee on Foreign Affairs, Defence and
Trade into trade with Mexico and its region, including a visit to Mexico and Cuba. Our
trade relationship with Mexico has continued to strengthen, particularly in the energy and
education sectors.

The department continued to lead the development of a more dynamic relationship with
Brazil. Our trade and economic relationship with Brazil is the largest in Latin America.
Over 10 000 Brazilian students now study in Australia, making Brazil the tenth largest
source of foreign students. The two countries held a senior officials’ meeting in Brasilia in
March 2007, which highlighted our shared aim of liberalising trade in agriculture through
the World Trade Organization. The department identified Brazil’s world-leading ethanol
production expertise as a potential area for future bilateral cooperation. The first meeting
of our Bilateral Trade and Investment Commission is due to be held in 2008.

In August 2006, the department supported a successful visit to Australia by the Minister
for Foreign Affairs of Argentina, Mr Jorge Taiana, accompanied by a business delegation.
The opening of the new Argentine-built nuclear reactor at Lucas Heights in April 2007
highlighted the potential for further cooperation on nuclear energy. We continued our
cooperation with Argentina on trade policy issues, including in the Cairns Group.




58        D FAT  ANNUAL   REPORT   2006   –   2007
The department continued to foster relations with other South American countries. We
hosted a visit by the Deputy Minister for Foreign Affairs of Paraguay in March 2007,
who was in Australia to open the Paraguayan consulate-general in Melbourne. We also
maintained our good cooperation with Peru on APEC, and supported its successful bid
for membership of the Cairns Group. We welcomed the announcement in June 2007 that
Colombia would re-establish its embassy in Australia in the second half of 2007, which




                                                                                                                                SECT I O N 2
will enhance both countries’ capacity to further develop the bilateral relationship.


  TABLE 7. AUSTRALIA’S TRADE IN GOODS AND SERVICES WITH THE AMERICAS


                                          Exports         Exports                          Imports    Imports
                                                                             Trend                                    Trend
                                                                            growth                                   growth
Goods and services (a)                       2005            2006       2001–2006            2005        2006    2001–2006
                                               $m              $m                %             $m          $m             %
United States                             14,277          15,624                   –2.6    28,190      32,023             1.6
Canada                                      2,327           2,366                   0.9      2,503      2,815             4.7
Mexico                                         875             889                17.3         871      1,078            13.2
Total NAFTA                               17,479          18,880                   –1.5    31,563      35,915             2.1
Central America &
Caribbean (c)                                  235             214                 –3.0        591        698             8.0
Brazil (b)                                     861             892                17.5         730        838            11.6
Chile                                          213             303                13.1         213        270            10.7
             (b)
Argentina                                      155             181                20.3         207        168             2.2
                            (b)
Total South America                         1,332           1,493                 13.5       1,184      1,287             8.9
Total Americas                            19,384          21,081                   –0.6    33,591      38,239             2.5

(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
(b) Goods data only. Services data is not published by the ABS for these countries.
(c) Excluding Mexico.
Source: DFAT STARS database and ABS Catalogue 5368.0.




Our relations with the Caribbean were marked by the region’s hosting of the Cricket
World Cup. The department deployed additional consular staff to the region to support
the Australian cricket team and supporters, and coordinated the provision of a security
advisory team from the Australian Defence Force, the Australian Federal Police and the
Attorney-General’s Department. During a visit to Trinidad and Tobago in December 2006,
Mr Downer opened formally the Australian high commission and witnessed Australia’s
growing trade and investment interests in this small but energy-rich country.

The department continued to support the work of the Council on Australia Latin America
Relations (COALAR). Throughout the year, COALAR sponsored a range of initiatives in
the fields of business, tourism, education and culture, which added depth to Australia’s
relationships with Latin American countries. COALAR produces a separate annual report.




                                                                                          OUTPUT  1.1   americas         59 
Outlook

The department will continue to strengthen Australia’s alliance with the United States,
including through the next AUSMIN consultations, which Australia will host. We expect the
visit to Australia by President Bush and Secretary of State Dr Rice for the APEC Leaders’
meeting in September 2007 will provide an opportunity for a substantial bilateral program.
With the race for US Presidential nominations gathering momentum into 2008, the
department will monitor the evolving policy positions of key candidates and their potential
impact on Australian interests. We will seek to build understanding and awareness of
Australia among the new members of Congress elected in the 2006 mid-term elections.
The department will continue to work closely on the implementation and forward agenda
of AUSFTA with businesses, state and territory governments and other interested
parties. In consultation with the embassy in Washington, the department will continue its
efforts to counter specific US Farm Bill measures that impact negatively on Australia’s
trade interests.

We will seek to consolidate Australia’s relations with Canada and Latin America, including
during the APEC Leaders’ Meeting in Sydney in September 2007, which will bring, inter
alia, the leaders of Canada, Mexico, Peru and Chile to Australia. The dynamic relationship
with Canada will benefit from the official visit of Prime Minister Harper, as well as from our
hosting of the Canada–Australia Dialogue in August 2007. The department will increase
its presence in Peru, the host of APEC 2008. We expect to complete the FTA negotiation
process with Chile over the coming year and to move to the next phase of the Joint
Experts Group process with Mexico. The inaugural meeting of the Australia–Brazil Bilateral
Trade and Investment Commission will underscore the growth of our economic relations
with Brazil.




6 0        D FAT   ANNUAL   REPORT   2006   –   2007
1.1.4 EUROPE


Overview




                                                                                                    S ECT I O N 2
  The department worked to promote cooperation and to strengthen Australia’s
  extensive economic, strategic and people-to-people links with Europe. We created
  Europe Division as a stand-alone entity to improve our delivery of key policy and
  advocacy functions. We also established a dedicated European Trade section to
  further develop Australia’s trading relationship with Europe. We secured agreement
  with the European Commission (EC) to launch a revised framework for Australia’s
  bilateral relationship with the European Union (EU).

  The department supported numerous high-level visits in both directions and
  negotiated a number of agreements with European countries in support of
  Australia’s broader economic and policy interests. We continued to expand our
  dialogue with new EU member states in support of Australian foreign policy and
  trade objectives on counter-terrorism, non-proliferation, agricultural reform and our
  shared interests in Iraq and Afghanistan. We maintained momentum in Australia’s
  growing trade relationship with Russia, including by progressing negotiations on
  bilateral agreements on agricultural cooperation and investment and commencing
  negotiations on a nuclear cooperation agreement.

  The department deepened Australia’s security links with Europe, with cooperation
  focused on meeting the security challenges facing the Asia-Pacific region. Mr Downer
  signed a memorandum of understanding with German Minister for Development,
  Heidemarie Wieczorek-Zeul, establishing a framework for Australia and Germany
  to cooperate on a range of environmental and development initiatives in the
  Asia-Pacific. We received increased support from a number of European countries
  for the Jakarta Centre for Law Enforcement Cooperation (JCLEC), a regional training
  facility to combat terrorism and other transnational crimes.

  The department played a key role in enhancing Australia’s relationship with
  NATO—particularly through its work on Australia’s deployment to Afghanistan as
  part of the NATO-led International Security Assistance Force (ISAF). We shaped
  positive outcomes for Australia at NATO’s Riga Summit in November 2006, during
  which NATO invited Australia to develop a framework for enhanced cooperation
  and training.

  We have supported efforts to repatriate Australian Indigenous remains from a
  number of European institutions, which resulted in returns from the United Kingdom
  and Sweden and significant progress elsewhere.




                                                                OUTPUT  1.1   e urope         61 
European Union

The department supported the work of ministers in strengthening Australia’s relationship
with the European Union (EU). Mr Downer hosted the twenty-first Australia–European
Commission Ministerial Consultations in Canberra on 25 June 2007 with the EU External
Relations Commissioner Benita Ferrero-Waldner. The meeting resulted in a Joint Ministerial
Statement announcing agreement to launch a new framework for the bilateral relationship,
to be concluded by mid-2008, which will revise and update the 1997 Australia–EU Joint
Declaration and the subsequent 2003–08 Agenda for Cooperation.




Minister for Foreign Affairs, Mr Alexander Downer, and European Commissioner for External Relations, Dr Benita
Ferrero-Waldner, launching the development of a new partnership framework on future cooperation between Australia and
the European Union, in Canberra on 25 June 2007.
Photo: Michael Jensen



Mr Downer and Commissioner Ferrero-Waldner launched a jointly-sponsored Youth
Interfaith Forum (to be hosted by Australia in the second half of 2007), designed to bring
together young leaders of the diverse religious communities in South-East Asia, Australia
and Europe. They agreed to establish a regular forum at officials’ level on energy security
and climate change, building on existing links in these areas.

The department advanced, under the Australia–EU Agenda for Cooperation, a number
of key bilateral initiatives. Of particular note was the signature in February 2007 of the
Australia–Europol Agreement on Operational and Strategic Co-operation. The Agreement
will enhance Australia’s capacity to combat serious transnational crime and terrorism
through the sharing of information between the Australian Federal Police and Europol.
Reflecting increasing collaboration between Australia and the EU on development
cooperation matters in the Pacific, the department supported the conclusion in May 2007




62        D FAT  ANNUAL   REPORT   2006   –   2007
of an Australia–European Investment Bank Host-Country Arrangement memorandum of
understanding, establishing the Bank’s Pacific regional headquarters in Sydney.

The department supported a Guest-of-Government visit to Australia by EU Education
Commissioner Ján Figel in April 2007, during which he and the Minister for Education,
Science and Training, Julie Bishop, signed a Joint Declaration to reinforce bilateral




                                                                                                                                   S ECT I O N 2
education cooperation.

The EU remains Australia’s largest overall trade and investment partner. We continued
to work to encourage stronger Australian business engagement in the EU. We supported
a visit by the European Australian Business Council to Brussels from 29–30 June 2007
during which members met senior European Commission officials, including EU Energy
Commissioner Andris Piebalgs. The visit highlighted potential new trade and investment
opportunities. Our advocacy efforts were instrumental in reducing the impact on Australian
interests of some EU regulatory initiatives. In particular, we collaborated successfully
with Australian business to introduce a number of changes to the EU’s new Registration
Evaluation and Authorisation of Chemicals (REACH) legislation, ahead of its December
2006 approval by the EU Council.

We continued to advocate the need for further reform of the EU’s Common Agricultural
Policy (CAP), including through an Australian Government Submission to the UK House of
Lords European Union Committee inquiry on the future of the CAP.

The department, in cooperation with the Department of Agriculture, Fisheries and Forestry
(DAFF) and the Australian Quarantine and Inspection Service, was involved in negotiations
with the EU which led to progress towards resolving a number of technical trade
issues impeding Australian exports to Europe, including meat certification, wild-caught
sea prawns and bovine semen.

            FIGURE 11. AUSTRALIA’S TRADE IN GOODS AND SERVICES WITH THE EUROPEAN UNION(a)

                                                Balance                               Exports                      Imports
              50 000

              40 000                                                                                                                    Bala

              30 000                                                                                                                    Impo

              20 000
                                                                                                                                        Expo
$ MILLION




              10 000

                   0

             –10 000

             –20 000

             –30 000
                               2001             2002               2003               2004            2005          2006
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
Source: DFAT STARS database and ABS Catalogue 5368.0.




                                                                                                OUTPUT  1.1   europe         63 
We worked closely with DAFF to achieve the finalisation of the text of the revised
Australia–EU Wine Agreement, which was initialled on 5 June 2007. The revised
agreement will provide benefits for both Australian and European wine producers,
including recognition by the EU of Australian wine-making practices, and simplified labelling
provisions. Australian annual wine exports to the EU are currently worth $1.3 billion.


North Atlantic Treaty Organisation (NATO)

The department worked closely with the Department of Defence to advance practical
cooperation with NATO, building upon our force contribution to Afghanistan as part of
the NATO International Security Assistance Force (ISAF). In September 2006, Mr Downer
addressed the North Atlantic Council in Brussels, NATO’s peak decision-making body, and
met the NATO Secretary General, Jaap de Hoop Scheffer. Mr Downer’s address reaffirmed
the strength of Australia–NATO relations and our shared role in promoting a more stable
global security environment.

In cooperation with a range of Australian agencies, the department led the third round of
the Australia–NATO Strategic Dialogue held in October 2006 which focused on developing
closer cooperation on global security issues, including in relation to Australia’s deployment
in Afghanistan. The Australian delegation advocated Australia’s interest in focusing any
expanded cooperation with NATO on practical areas of mutual benefit. This contributed
to the NATO Riga Summit’s decision to open NATO Partnership for Peace (PfP) activities
to Australia as a NATO Contact Country. Mr Downer’s address to the Munich Security
Conference in February 2007 welcomed NATO’s Riga Summit decision and outlined
Australia’s agreement to participate in NATO activities. The decision provides a framework
for greater coordination and cooperation with NATO on training and knowledge exchange.


Europe—bilateral relationships

The department advanced Australia’s security and economic links with the United
Kingdom. In London in December 2006, we supported the inaugural meeting of the
Australia–United Kingdom Ministerial Dialogue (AUKMIN) between Mr Downer and
Dr Nelson and their British counterparts, the then Secretary of State for Foreign
and Commonwealth Affairs, Margaret Beckett, and Secretary of State for Defence,
Des Browne, and senior officials from both countries. AUKMIN, and other officials’-
level talks throughout the year, provide an opportunity to share perspectives on a
range of strategic issues and to strengthen our collaboration in responding to global
security challenges.

The department, working with agencies such as Austrade and Invest Australia,
successfully assisted new exporters in the UK market, promoted investment in Australia
and advanced Australia’s broader economic interests in the United Kingdom. We
supported the UK–Australia Energy Seminar in February 2007 which provided a valuable
opportunity for the two countries to develop a collaborative approach to global energy
issues and technology development.




6 4        D FAT   ANNUAL   REPORT   2006   –   2007
We supported other visits to the United Kingdom by Mr Downer, the Treasurer, Peter
Costello, the Minister for Communications, Information Technology and the Arts, Helen
Coonan, the Minister for Industry, Tourism and Resources, Ian Macfarlane, and the
Minister for Fisheries, Forestry and Conservation, Eric Abetz. These, and a large number
of other high-level visits in both directions, reflected the depth of our engagement with the
United Kingdom across the social and economic policy agendas.




                                                                                                                           S ECT I O N 2
The department worked to increase the diversity and depth of links between Australia
and France. We supported Mr Truss’s visit to France in May 2007 to advance Australia’s
bilateral and multilateral trade interests, including his meeting with the Australian
Business in Europe Chairman’s Club and attendance at the 2007 OECD Ministerial
Council Meeting (MCM). In conjunction with the Department of Defence we also supported
a visit by Dr Nelson in December 2006, during which he signed a new agreement on
defence cooperation, which provides a framework for increased collaboration, including on
material and capacity planning.

The department supported visits by then French Minister of Trade, Christine Lagarde
and then Minister of Agriculture, Dominique Bussereau, which focused on new areas
of collaboration, including in the sheep industry. We signed a Cooperative Fisheries
Enforcement Treaty in January 2007 to promote greater practical cooperation in the
Southern Ocean. The practical value of Australia and France’s close cooperation in the
Pacific was demonstrated through coordinated action to provide relief to Solomon Islands
following the tsunami in January 2007.




The then French Trade Minister, Ms Christine Lagarde (centre), and Australian Ambassador Ms Penny Wensley AO
accompanied by business leaders at the launch in Paris of a new bilateral business group, the Chairman’s Club—within the
Australian Business in Europe (ABIE) network, February 2007.
Photo: Alastair Miller




                                                                                  OUTPUT  1.1   e urope         65 
The department worked to increase bilateral commercial links through the establishment
of the Australian Business in Europe (ABIE) Chairman’s Club in Paris. The Chairman’s
Club, composed of senior executives from major Australian and French multinationals,
provides valuable opportunities to promote closer trade and investment opportunities
between the two countries.

We supported a visit to Germany by Mr Downer in February 2007 during the German
Presidency of the EU and G8 Chairmanship. He held formal discussions with German
Foreign Minister Frank-Walter Steinmeier, Defence Minister Franz Josef Jung and
Development Minister Heidemarie Wieczorek-Zeul on ways to advance bilateral cooperation
on global and regional issues. Mr Downer signed a memorandum of understanding on
development with the German Development Minister that provides for closer cooperation
with Germany on projects in the Asia-Pacific. Suggested initiatives include measures on
combating HIV/AIDS in the region and reforestation in Indonesia. Mr Downer also signed
a revised social security agreement and an enhanced working holiday maker arrangement
and delivered a speech entitled ‘NATO in the Age of Global Challenges’ at the Munich
Security Policy Conference.

The department also supported the visit to Melbourne by German Finance Minister Peer
Steinbrück for the G20 Conference in November 2006. We secured strengthened German
commitment for our regional counter-terrorism objectives, including increased support for
the Jakarta Centre for Law Enforcement Cooperation.

Our relations with the Netherlands continued to deepen. The department supported the
Australian Defence Force’s deployment to Afghanistan as part of the Dutch-led Provincial
Reconstruction Team in Oruzgan province. Cooperation in Afghanistan was also the focus
of visits by the Minister for Defence, Chief of the Defence Force and Secretary of the
Department of Defence to the Netherlands in December 2006, and a major theme of the
Governor-General’s visit in September 2006.

The department supported greater cooperation on higher education and the signing of
a major research partnership between the Australian National University and Leiden
University focusing on South-East Asia. We also assisted in major visits to Australia from
the Netherlands, including by the Crown Prince and Princess, marking the successful
conclusion of celebrations for the 400th anniversary of Dutch–Australian contact.

The department built on the successful visit to Ireland of the Prime Minister Mr Howard
in May 2006 in which he met his Irish counterpart, Mr Bertie Ahern, the Irish President,
Mrs Mary McAleese, and addressed the Irish Parliament. The visit provided a valuable
opportunity to build on the historically close and increasingly dynamic relationship between
Australia and Ireland, and to further pursue our mutual interests in expanding trade and
investment, people to people links and practical cooperation in areas such as research
and development, information technology and education. We signed a memorandum of
understanding on social security with Switzerland during the visit of the Swiss Minister of
Home Affairs, Pascal Couchepin, in October 2006. We supported negotiations that led to
the signing of a reciprocal health care agreement with Belgium.




6 6        D FAT  ANNUAL  REPORT   2006   –   2007
The department supported Mr Downer’s visit to Italy in September 2006. The visit
strengthened high-level political dialogue, including in relation to our joint commitment
in Afghanistan and our common interests in the Asia-Pacific region. We facilitated a
memorandum of understanding on sports cooperation between the Australian Sports
Commission and the Italian Government. The department worked with other agencies
to lift Australia’s profile in Italy—we secured Australian participation at the Venice




                                                                                                                               S ECT I O N 2
Architecture Biennale, after a long absence, and supported the ‘Melbourne in Milan’ week
of activities in Milan showcasing Australian talent and design capabilities. The department
supported visits to Italian regions by several state premiers, in line with our interest in
developing state-to-region links.

  TABLE 8. AUSTRALIA’S TRADE IN GOODS AND SERVICES WITH EUROPE


                                          Exports         Exports                         Imports    Imports
                                                                             Trend                                  Trend
                                                                            growth                                 growth
Goods and services (a)                       2005            2006       2001–2006           2005       2006    2001–2006
                                               $m              $m                %            $m         $m             %
United Kingdom                              9,291         12,694                    3.9   10,474     10,105              1.0
Germany                                     2,309           2,294                  –1.4    9,976     10,284              5.2
Italy                                       1,758           2,103                  –4.8    4,882      5,114              5.6
France                                      1,563           1,765                   0.2    5,685      4,753             11.6
Netherlands                                 2,682           3,228                 12.3     1,858      1,919              3.9
Total European Union                      22,939          28,711                    4.4   45,477     46,420              6.7
Russian Federation                             387             721                23.4       156        134              2.5
Other Europe                                1,839           2,290                   4.7    4,556      4,369              6.3
Total Europe                              25,165          31,722                    4.7   50,189     50,923              6.7

(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
Source: DFAT STARS database and ABS Catalogue 5368.0.




Australian parliamentary delegations visited Spain and Malta in April 2007 with
departmental support. We continued our regular officials’-level dialogue by holding ad hoc
senior officials’ talks with Spain in November 2006. The talks resulted in agreement
to strengthen cooperation on combating illegal fishing activities in Australia’s southern
exclusive economic zone and to consider negotiating a working holiday arrangement. We
also persuaded Spanish authorities to agree to fast-track visa processing for Australian
defence personnel engaged in defence projects in Spain.

We supported Mr Downer’s visit to Turkey in February 2007 which contributed strongly
to the bilateral relationship and enhanced cooperation on Anzac Cove issues. During the
visit, Australia and Turkey signed a memorandum of understanding on counter-terrorism
and organised crime. The document provides a framework for cooperation between
Australian and Turkish agencies in areas such as law enforcement, mutual legal
assistance, anti-terrorist financing, border and transport security, defence, intelligence and




                                                                                           OUTPUT  1.1   europe         67 
countering chemical, biological, radiological and nuclear terrorism. Working with Turkish
authorities, the department provided extensive support for the evacuation of Australian
nationals from Lebanon via Turkey during the Lebanon crisis in July and August 2006. In
partnership with the Department of Agriculture, Fisheries and Forestry, we secured Turkish
Government agreement to a new veterinary health certificate, which has paved the way for
a resumption of trade in live cattle after eleven years.

The department’s close cooperation with the Department of Veterans’ Affairs and the
Turkish and New Zealand governments again resulted in a highly successful Anzac Day
commemoration on the Gallipoli peninsula. Careful contingency planning and preparations
well ahead of the event resulted in a secure and safe environment for Australians
attending the commemorations. In 2007, about 8000 Australians, including Defence
Minister Brendan Nelson, attended the services at Anzac Cove and Lone Pine.

Together with the Department of the Prime Minister and Cabinet, we supported the visit of
the Prime Minister of Greece, Kostas Karamanlis, and Foreign Minister Dora Bakoyannis
in May 2007. A key outcome of the visit was the signature of a social security agreement
between Australia and Greece, which represents an important step forward in the bilateral
relationship. The agreement will improve access to age and retirement benefits for an
estimated 50 000 people in both countries.

We continued to support constructive efforts aimed at resolving the Cyprus dispute, in
particular through the efforts of Australia’s Special Envoy on Cyprus matters, the Hon
Jim Short, and our support for the United Nations’ peacekeeping operations on the
divided island.

The fourth round of senior officials’ talks with Poland in October 2006 progressed a
number of bilateral issues, including in relation to work and holiday maker visas and
identified the need for continuing cooperation on Iraq and Afghanistan. Subsequent
bilateral consultations with Poland on non-proliferation and disarmament issues were
held in March 2007, with a renewed commitment by both countries to advance the
Proliferation Security Initiative. We supported reciprocal visits by Australian and Polish
parliamentarians, which focused on commercial opportunities, particularly in the health
and health insurance sectors. We also worked with the Department of Education, Science
and Training to address a decline in the number of Polish students studying in Australia.

The department supported the visit to Hungary by a delegation attending
commemorations for the anniversary of the 1956 Uprising, which was led by the
Minister for Veterans’ Affairs. We worked closely with the Department of Immigration and
Citizenship to advance a working holiday maker arrangement with the Czech Republic and
to resolve successfully Czech and Polish concerns over Australia’s short-term visitor visa
system. The department facilitated visits to Poland, the Czech Republic and the Slovak
Republic by the Department of Families, Community Services and Indigenous Affairs in
April 2007 to commence negotiations on bilateral social security agreements.

The department facilitated Mr Downer’s visit to Finland in September 2006 for EU
Presidency consultations. A visit to Australia by Finnish President Tarja Halonen in
February 2007 developed a framework for closer cooperation between Australian and




6 8        D FAT   ANNUAL   REPORT   2006   –   2007
Finnish scientists in the areas of innovation, biotechnology and geological surveying. The
department also supported a visit to Australia by a Latvian parliamentary delegation in
August 2006. Senior officials’ talks with Sweden, Denmark and Norway highlighted the
broad level of cooperation between Australia and Scandinavian countries, particularly
on education exchanges, global security, NATO–Australia relations and Afghanistan. We
advocated strongly Australia’s positions on the Doha Round, agricultural reform, climate




                                                                                                  S ECT I O N 2
change, European engagement in the Asia-Pacific and, in the case of Norway, whaling. The
department supported successful negotiations of double taxation agreements with Norway
and Finland and advocated the reopening of a Danish embassy in Canberra (scheduled
for September 2007). The department supported a visit to Sweden by the Parliamentary
Secretary to the Minister for Foreign Affairs, Greg Hunt, to attend the Midnight Sun
Conference on Climate Change.

The department’s bilateral engagement with Russia focused on building cooperation in
advance of President Vladimir Putin’s September 2007 visit. The department intensified
government-to-government dialogue with Russia, holding a senior officials’ meeting
focusing on international strategic and security issues in Canberra in April 2007. The
meeting also enabled both sides to progress a number of issues related to President
Putin’s scheduled visit. We commenced negotiations on a bilateral nuclear cooperation
agreement to allow Australian uranium producers to supply Russia’s nuclear power
industry. We contributed to continuing negotiations on bilateral agreements covering
investment protection and promotion, and veterinary cooperation. Political and trade
linkages were strengthened through an exchange of visits by Australian and Russian
parliamentary delegations in January and May 2007 respectively.


Outlook

In the year ahead, the department will seek to redefine the future direction of Australia’s
bilateral relationship with the European Union, following the June 2007 Joint Ministerial
Statement announcing that both sides will launch a new key partnership framework
document for bilateral cooperation in 2008. Key areas of focus will be: a comprehensive
approach to promoting global security; a commitment to the multilateral trading system;
expanded bilateral trade and investment; strengthened coordination in the Asia-Pacific
region; recognition of the increased global focus on the environment and energy; and an
expansion of our cooperation in science, technology, education and training.

The next AUKMIN is scheduled to be held in Australia in 2008. We will seek further
collaboration with the United Kingdom on counter-proliferation and information sharing on
counter-terrorism, as well as coordination of our respective military deployments in Iraq
and Afghanistan.

We will continue to consolidate Australia’s cooperation with NATO through Australia’s
engagement in Afghanistan and within the framework of NATO Partnership for
Peace activities.

The department will work to strengthen Australia’s extensive economic links with Europe,
providing assistance for Australian companies operating there and supporting specific




                                                               OUTPUT  1.1   europe         69 
events, such as the planned Australian German Business Conference, the Australia–
United Kingdom Leadership Forum and joint trade and economic talks with Turkey and
Russia. We will continue to support the activities of Austrade, Invest Australia and other
Australian agencies seeking to advance our broader economic interests in Europe. We
will look to capitalise on the award of two major defence contracts worth $11 billion to
Spanish company Navantia by identifying new opportunities for increasing Australian trade
and investment in Spain.

In close cooperation with the Department of Veterans’ Affairs, the department will
support a number of major activities commemorating the 90th Anniversary of Australia’s
involvement in significant Western Front battles that brought World War I to an end. The
activities are expected to attract large numbers of Australian visitors.

The department is working with Australian government agencies and the Catholic
Church’s organisers for World Youth Day which will take place in Sydney in July 2008.
The event coincides with a visit by Pope Benedict XVI and is expected to involve up to
500 000 participants.

Relations with Russia will command greater focus following President Putin’s visit in
September 2007 and ahead of Duma (parliamentary) elections in December 2007 and
Presidential elections in March 2008. We will continue to work closely with other agencies
to conclude negotiations on a range of bilateral agreements.

The department will continue to advocate Australian approaches to Europe on energy and
environment issues, particularly climate change and energy security. We will also seek
opportunities to cooperate on energy and energy efficient technologies.




70        D FAT  ANNUAL  REPORT   2006   –   2007
1.1.5 SOUTH AND WEST ASIA, MIDDLE EAST AND AFRICA


Overview




                                                                                                S ECT I O N 2
  The formation of a separate division in July 2006 enhanced the department’s
  capacity to advance Australia’s diverse political, strategic and economic interests in
  South and West Asia, the Middle East and Africa.

  India is an increasingly important regional partner for Australia. The department
  worked to make the most of the substantial potential Australia’s relationship with
  India represents, both in terms of expanding commercial links and growing common
  strategic interests.

  The department played a leading role in coordinating Australia’s contribution to
  international efforts to assist democratisation and national recovery in Afghanistan
  and to support our increased military deployment there.

  We also continued to coordinate policy advice on Iraq and to engage with the Iraqi
  Government and key coalition partners to advance our political, strategic and
  security objectives.

  In the Middle East, the department continued to work on the bilateral architecture
  underpinning our growing trade interests. The department achieved agreement by
  Gulf Cooperation Council (GCC) countries to negotiate a free trade agreement and
  commenced preliminary discussions to lay the groundwork for formal negotiations.
  A meeting of the Joint Ministerial Commission with Saudi Arabia underlined the
  strength of the trade relationship and potential for further growth in our largest
  Middle East market.

  We emphasised to Iran the international community’s strong concern about its
  nuclear program and coordinated the domestic implementation of UN Security
  Council Resolutions 1737 and 1747 relating to Iran’s uranium enrichment and
  reprocessing activities. We continued to support the Middle East peace process,
  including by the provision of further humanitarian support to the Palestinian
  Territories. The Israel–Hezbollah conflict demanded significant attention, particularly
  to the consular and humanitarian consequences.

  The department worked successfully to strengthen relations with South Africa
  through a successful visit by the Deputy President and a Joint Ministerial
  Commission hosted by Mr Truss. We maintained pressure on Zimbabwe to respect
  democracy, human rights and the rule of law. We further tightened Australian
  sanctions and took action to prevent the Australian cricket team touring Zimbabwe.
  At the same time, we continued to provide humanitarian assistance to the people
  of Zimbabwe.




                    O UTPUT  1.1   south aN d W est asia, middle east a Nd a frica        71 
India

The department upgraded its effort to take forward the growing range of Australian
interests in India, including through an organisational change to create a new South
and West Asia branch. Supporting Australia’s expanding trade and investment links with
India was a particular focus. India continues to be one of Australia’s fastest growing
major export destinations—with year-on-year growth of more than 25 per cent—and a
major tourism market. In 2006–07, it was the largest source of new overseas students
in Australia. The department’s sharper focus on building Australia’s business success
in India’s rapidly growing regions included facilitating two visits to India by Mr Truss
in February and April 2007 (to attend a ministerial meeting of the G6 to discuss the
WTO Doha Round). In the February visit, focused on bilateral issues, Mr Truss opened the
new Australian consulate-general in Chennai and promoted Australian commercial interests
in Chennai, Hyderabad, Delhi and Mumbai. The department also arranged annual bilateral
trade discussions, co-chaired by Mr Truss, to pursue market access for key exports and
help secure agreement with India for a joint study to identify opportunities for Australian
companies in India’s food processing industry. Our facilitation of a large business
delegation that accompanied Mr Truss highlighted the department’s efforts to assist the
growing number of Australian companies finding opportunity in the Indian market.




Minister for Trade, Mr Warren Truss, signing a memorandum of understanding with India’s Minister for Commerce and
Industry, Mr Kamal Nath, at the 10th Joint Ministerial Commission meeting in New Delhi in March 2007.
Photo: Adarsh Minocha, Foto Fare



Cooperation with India, as a partner in the Asia-Pacific Partnership for Clean Development
and Climate, was another major theme of the department’s dialogue with India over
the year. Building on momentum generated by Prime Minister Howard’s 2006 visit, the
department continued to strengthen bilateral links on counter-terrorism and to support
enhanced cooperation between our defence and police forces and on legal issues.




72        D FAT  ANNUAL   REPORT   2006   –   2007
Indian Ocean Rim Association for Regional Cooperation
In March 2007 the department led Australia’s participation in the seventh Indian Ocean
Rim Association for Regional Cooperation (IOR-ARC) Council of Ministers and associated
officials’ meetings in Tehran. In consultation with the Department of Agriculture, Fisheries
and Forestry, the department presented Australia’s views on the potential for cooperation




                                                                                                         S ECT I O N 2
on fisheries management projects through IOR-ARC.


Afghanistan
Australia’s effort to help stabilise Afghanistan and advance its democratic transition was a
major focus of the department’s work. We took the lead in coordinating Australia’s whole
of government approach and facilitated visits to Afghanistan by Prime Minister Howard and
Mr Downer. Both visits underscored a message of ongoing Australian commitment to the
country and to fighting international terrorism.




Trainees in the Australian funded trade training school in Tarin Kowt, Afghanistan.



Our participation in a number of major international meetings on Afghanistan ensured
Australian views continued to be factored into broader international consideration of
Afghanistan’s needs. The department was also active in encouraging the greatest possible
coordination of international effort in Afghanistan and worked in key capitals to underline
the need for sustained commitment by the broader international community to help the
country meet the multiple challenges it faces. We supported increased Australian Defence
Force deployments in the NATO-led International Security Assistance Force. We also
advanced negotiations on a memorandum of understanding on privileges and immunities
covering members of the Australian Federal Police, to make possible their forthcoming
deployment to Afghanistan. They will help Afghanistan’s own security forces develop the
capability to provide for the country’s security.

The department opened a new embassy in Kabul in September 2006, and continued to
focus on the security of our staff there. We also advanced preparations for the co-location
of a permanent Australian embassy chancery with that of the Netherlands in Kabul.




                            O UTPUT  1.1   south a Nd West asia, m iddle e ast a Nd africa         73 
   P E R SO N Al P RO F IlE :
   Brett Hackett
   Ambassador to Afghanistan
   As a major troop contributor and aid donor, Australia is working closely with the
   Government of Afghanistan and the international community to ensure the country
   returns to stability and democracy after the upheaval of the Taliban era.

   Brett Hackett has been Australia’s first Ambassador to Afghanistan since our
   Embassy in Kabul opened in September 2007. Before then, Australian interests in
   Afghanistan were the responsibility of the Australian High Commission in Islamabad.
   The Embassy is based in the Hotel Serena, in central Kabul, but will move to a
   purpose-built facility in 2008.

   The Embassy’s most critical tasks are to lead and coordinate Australia’s whole of
   government effort in Afghanistan, including support for Australia’s troop deployment
   to Oruzgan in southern Afghanistan where Australia is part of a Provincial
   Reconstruction Team led by the Netherlands. Australia has also deployed a Special
   Forces Task Group to Afghanistan as well as an RAAF radar team. The total number
   of Australian troops in Afghanistan will be about 1000 by mid-2008.

   Brett describes working life in Kabul as full of challenges but not without its rewards.
   ‘It’s a very dynamic working environment. Issues can come out of nowhere and need
   to be resolved quickly. Sometimes it’s frustrating but at other times it’s great to
   get a sense that life for ordinary Afghans is improving.’ Brett is based in Kabul but
   regularly travels to Oruzgan to liaise with the Provincial Reconstruction Team and
   other Australian deployments.

                                                     Brett joined the public service in
                                                     1990. He has served overseas at
                                                     Australia’s missions in Islamabad and
                                                     Ottawa. In Canberra, he has worked
                                                     on a range of bilateral issues, most
                                                     recently on East Timor.




                                                     Ambassador to Afghanistan Mr Brett Hackett.




74        D FAT  ANNUAL   REPORT   2006   –   2007
Pakistan, Bangladesh, Sri Lanka

The department advanced Australia’s relationship with Pakistan, facilitating the visit of the
Attorney-General to take forward discussions on counter-terrorism, which remained a key
priority in our bilateral dialogue. We supported Australia’s modest commercial interests,
including helping to facilitate the first shipment of Australian dairy cattle to Pakistan.




                                                                                                 S ECT I O N 2
We also provided extensive support to Pakistan as host of the April 2007 Cairns Group
Ministerial Meeting and hosted the first bilateral Joint Trade Commission meeting in
Cairns in September 2006.

The department continued to engage Bangladesh and Sri Lanka on counter-terrorism. We
played a coordinating role in Australian cooperation with Sri Lanka on irregular migration
and people-smuggling and supported the establishment of an Australian Federal Police
liaison office in Bangladesh to enable closer practical cooperation on law enforcement
matters. Sri Lanka’s deteriorating security outlook is increasingly a cause for concern
and the department worked to protect Australians through careful attention to the
implications of the return to conflict there for our consular and other interests. As a period
of substantial political instability culminated in the assumption of power by a caretaker
government in Bangladesh, the department acted quickly to emphasise Australia’s
expectation that a clear roadmap be announced for a return to democracy, the holding of
free and fair elections and the full protection of civil liberties.


Middle East

The department advanced Australia’s trade and investment interests in the Middle East,
organising a successful meeting of the Joint Ministerial Commission with Saudi Arabia—
our largest Middle Eastern market—in Riyadh in November 2006, co-chaired by Mr Truss.
We built support among Gulf Cooperation Council (GCC) countries (Saudi Arabia, United
Arab Emirates, Qatar, Kuwait, Bahrain and Oman) for a free trade agreement (FTA). We
held preliminary discussions with the GCC on the FTA to lay the basis for the first formal
negotiating round scheduled for July 2007. We continued consultations with Egypt on
a Trade and Economic Framework to underpin the trade relationship. Working with the
Department of Agriculture, Fisheries and Forestry (DAFF), the department concluded a
memorandum of understanding with Egypt on trade in live animals and on the slaughtering
and handling of Australian live animals, in order to address animal welfare concerns. (See
also output 1.1.7.) With DAFF and Austrade, we helped conclude an MOU on trade in live
animals with Libya, signed in May 2007.

The department assisted relevant Australian agencies (the Attorney-General’s Department
and the Department of Defence) in concluding negotiations with the United Arab
Emirates on separate agreements on extradition and mutual assistance in criminal
matters, and a defence cooperation agreement, which further strengthens one of our
key bilateral relationships in the Middle East. Agreements with Lebanon on child welfare
and investment protection and promotion could not be finalised due to ongoing political
tensions in Lebanon.




                    O UTPUT  1.1   south aN d West asia, middle east a Nd a frica        75 
The Israeli–Hezbollah conflict of 2006 demanded significant attention by the department
as part of a major whole of government exercise, in particular to ensure the safe
evacuation of over 5000 Australian citizens, permanent residents and their immediate
families from Lebanon (see output 2.1).

Australia registered strong messages with Iran in support of international efforts to
address Iran’s nuclear program and in respect of our broader bilateral interests. The
department coordinated the necessary action to ensure the domestic implementation of
UN Security Council Resolutions 1737 and 1747 (see also outputs 1.1.9 and 1.1.10)
relating to Iran’s uranium enrichment and reprocessing activities.

The department continued its efforts in support of the Middle East peace process and
coordinated Australia’s policy towards Hamas (listed under the Charter of the United
Nations Act 1945 as an entity associated with terrorism). Following the Hamas takeover
of Gaza and the appointment of the emergency Palestinian government in June 2007,
the department, in consultation with AusAID, responded quickly to provide Australian
support for the new government and humanitarian assistance to the Palestinian people,
announced during Mr Downer’s visit to Ramallah in June 2007.

The department provided support for a series of high-level visits to the Middle East
in support of Australia’s strategic and commercial interests, including Mr Downer’s
visit to the Middle East (Israel, Palestinian Territories, UAE, Jordan and Iraq) in June
2007; Mr Truss’s visit to Saudi Arabia for the Joint Ministerial Commission and the
UAE in November 2006; visits by the Minister for Communications and the Minister for
Defence to the region, and the President of the Senate’s visit to Kuwait in April 2007.
The department also provided support for an official parliamentary delegation visit to
Saudi Arabia and many business-focused visits by state premiers and ministers.




Minister for Trade, Mr Warren Truss, with Saudi Arabian Minister for Commerce
and Industry, Dr Hashim bin Abdullah Yamani.




76        D FAT  ANNUAL   REPORT   2006   –   2007
Iraq

The department advanced Australia’s political, strategic and security objectives in Iraq.
Australia’s continuing support for democracy and stability contributed to the work of Iraq’s
elected government. We actively encouraged the Iraqi Government to take control of their
own security, which has occurred in the two provinces to which Australian troops have




                                                                                                      S ECT I O N 2
been deployed. There are encouraging signs of progress and the department continues
to prioritise measures in support of security, rehabilitation and the consolidation of
democracy in Iraq.

Through a dedicated Iraq Task Force, the department has maintained its role of
coordinating regular meetings with key departments and agencies, and providing policy
advice on Iraq to ministers. The Iraq Task Force, together with International Organisations
and Legal Division, managed the department’s cooperation with the Inquiry into certain
Australian companies in relation to the UN Oil-for-Food Programme (the Cole Inquiry).

Australia continues to build strong links with Iraq, not only through contact between our
respective embassies, but also through high-level meetings. The department supported
visits by the Prime Minister Mr Howard, Mr Downer and the Minister for Defence Dr Nelson
to Iraq to meet their counterparts, Iraqi leaders and senior coalition representatives.
These visits and Guest-of-Government visits to Australia by the Iraqi Ministers of Oil and
Foreign Affairs greatly strengthened the bilateral relationship. Departmental officials met
key Iraqi ministers, advisers and decision-makers to convey Australia’s firm commitment
to security, the rule of law, human rights and economic recovery in Iraq.




Minister for Foreign Affairs, Mr Alexander Downer, meeting with Prime Minister of Iraq,
Mr Nouri al-Maliki, in Baghdad.



The department continued to foster close and high-level relations with key coalition
partners on developments in Iraq. Our efforts have reinforced these relationships,
and advanced Australia’s strategic interests more broadly. Australia’s role in training,




                           O UTPUT  1.1   south aN d West asia, middle east a Nd a frica        77 
mentoring and security oversight in two southern Iraqi provinces has further strengthened
strategic cooperation.

The department worked with AusAID, the Department of Defence and other agencies to
develop and deliver Australia’s strategy for rehabilitation and reconstruction assistance.
Australia took part in meetings with donors, including to the International Compact of
Iraq (Egypt, 3 May) and the International Reconstruction Fund Facility for Iraq (Istanbul,
20 March). Australian officials attended the United Nations High Commissioner for
Refugees (UNHCR) conference on ‘Addressing the Humanitarian Needs of Refugees
and Internally Displaced Persons inside Iraq and in Neighbouring Countries’ (Geneva,
17–18 April). The focus of our work remains the efficient and targeted delivery
of assistance.

In a challenging security environment, our embassy in Baghdad has advocated Australia’s
political, security and commercial interests to Iraqi leaders, international organisations,
community groups and core alliance partners (the United States and United Kingdom).
The department reaffirmed our close trading partnership and worked to retain Australia’s
access to the Iraqi wheat market. Together with Austrade, the department guided
Australian companies on the security environment in Iraq, and facilitated contact with Iraqi
government officials and members of the private sector.

Security of Australians in Iraq

The security environment in Iraq remains extremely dangerous and poses a particular
challenge for embassy staff. The department kept the Australian public informed about
the security situation through regular updates to the Iraq travel advice, which specifically
warns that our ability to provide consular services is limited, particularly outside Baghdad.
Embassy staff provided consular assistance to a number of Australian contractors injured
in roadside attacks and, with transport and security assistance from the Australian
Defence Force, travelled to northern Iraq to successfully negotiate the release of an
Australian detained for over two years.

The embassy performed strongly despite several security incidents. The welfare of staff is
an ongoing priority for the department, and security measures are under constant review.


Africa

The department continued to strengthen relations with South Africa, Australia’s largest
trading partner in Africa. A Joint Ministerial Commission meeting held in Canberra
in October 2006 and co-chaired by Mr Truss highlighted the growing importance of
the bilateral trade relationship to both countries. A concurrent visit to Australia by
South African Deputy President Mlambo-Ngcuka further strengthened high-level links.
The department also hosted senior officials’ talks with South Africa, deepening
dialogue on key regional and strategic issues relating to Africa, counter-terrorism and
counter-proliferation.




78        D FAT  ANNUAL   REPORT   2006   –   2007
                                                                                                                              S ECT I O N 2
Fourth Australia–South Africa Joint Ministerial Commission. Minister for Trade, Mr Warren Truss, and Minister for Trade and
Industry of South Africa, Mr Mandisi Mpahlwa, signing the joint communiqué, 18 October 2006.
Photo: Michael Jensen



The department continued to press for meaningful political and economic reform in
Zimbabwe. Australia strongly condemned the violent attacks on opposition leaders by
Zimbabwean security forces in March 2007, and we provided practical assistance to the
victims of the violence through our post in Harare. We developed with AusAID additional
means of assisting the people of Zimbabwe, and in May 2007 Mr Downer announced the
establishment of the Australian Fund for Zimbabwe to provide humanitarian assistance
and support to civil society in Zimbabwe. We maintained pressure on the Zimbabwean
Government to undertake meaningful political and economic reform through targeted
sanctions, updating Australia’s bilateral sanctions list to ensure that it fully reflected
recent developments. The department provided advice and support to ministers on the
Government’s decision to prevent the Australian cricket team from touring Zimbabwe.

The department coordinated Australia’s responses to the humanitarian crises in Sudan,
in particular Darfur. We made representations to key African and Arab countries to
encourage them to persuade the Sudanese Government to support a better peacekeeping
force in Darfur. We worked closely with the Department of Defence to support the
continued deployment of personnel from the Australian Defence Force and the Australian
Federal Police to the UN Mission in Sudan. Australia also continued to provide extensive
humanitarian assistance in response to the crises in Sudan.




                           O UTPUT  1.1   south a Nd West asia, m iddle e ast a Nd africa                           79 
The department continued to support Australian commercial interests across Africa.
In February 2007, our African posts jointly hosted with Austrade a major promotion
of Australian mining expertise at the annual African Mining Indaba in Cape Town. The
promotion centrepiece, a business lounge, became a major networking centre at the
4000-delegate conference. Our missions in Africa also worked to promote Australian
education services to African students, as well as resource-related investments.


Outlook

Taking advantage of the potential offered by India’s rise, the department will seek to build
momentum in our relations with India. We will seek to capitalise on India’s interest in
Australia as a major player in global energy and resources sectors and through deepening
our interaction on shared strategic interests. Afghanistan will remain a primary front in
the battle against international terrorism, and the department will continue to play a
leading role in coordinating Australia’s whole of government contribution to the essential
tasks of stabilisation and reconstruction. We will work closely with Pakistan to encourage
and assist it to improve governance and security in its border region with Afghanistan
and will remain focused on improving counter-terrorism cooperation with both Pakistan
and Bangladesh.

The political and strategic outlook for the Middle East remains challenging. The situation
in Lebanon, ongoing instability in the Palestinian Territories, Iran’s defiance of UN Security
Council Resolutions, and the threat of terrorism throughout the region will continue to
impact negatively on a range of Australian interests. At the same time, prospects for
further growth and diversification of Australian exports and commercial interests more
broadly are likely to remain strong, particularly in GCC states. The department anticipates
making substantial progress on the GCC FTA negotiations in 2007–08.

The department will pursue opportunities to strengthen further the bilateral relationship
and promote Australia’s strategic and commercial interests in Iraq.

The crisis in Zimbabwe is deepening, and we will continue to search for ways in which
we can promote reform and provide support to the ordinary people of that country.
Strengthening Australia’s relationship with South Africa will remain a priority, and we will
pursue opportunities that further our bilateral political and economic engagement.




8 0        D FAT  ANNUAL   REPORT   2006   –   2007
  TABLE 9. AUSTRALIA’S TRADE IN GOODS AND SERVICES WITH COUNTRIES IN SOUTH ASIA AND THE GCC


                                          Exports         Exports                         Imports   Imports
                                                                             Trend                                 Trend
                                                                            growth                                growth
Goods and services (a)                       2005            2006       2001–2006           2005      2006    2001–2006




                                                                                                                           S ECT I O N 2
                                               $m              $m                %            $m        $m             %
India                                       8,219         10,343                  32.2     1,530     1,654          10.7
                       (b)
Other South Asia                               915             711                 –7.3      274       287          –3.5
Total South Asia                            9,134         11,054                  25.0     1,804     1,941           7.8


Bahrain (b) (c)                                115             126                  4.5      116       121          19.8
          (b)
Kuwait                                         472             524                  0.0      235       212          10.9
        (b)
Oman                                           231             262                  6.4        2         3          11.7
        (b)
Qatar                                          130             192                11.1       311       309           1.3
Saudi Arabia (b)                            1,925           2,198                  –4.0    1,330     1,214           0.5
United Arab Emirates (b)                    1,234           1,955                   6.4      388     1,316           5.1
                (b)
Total GCC                                   4,107           5,257                   0.6    2,382     3,174           3.6

(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
(b) Goods data only. Services data is not published by the ABS for these countries.
(c) Excludes exports of alumina (aluminium oxide).
Source: DFAT STARS database and ABS Catalogue 5368.0.




                                O UTPUT  1.1   south a Nd West asia, middle e ast a N d a frica                    81 
1.1.6 PACIFIC


Overview


   The department continued its efforts to maintain and enhance security and good
   governance in the South Pacific and to strengthen further our relationship with
   New Zealand.

   We coordinated the Government’s responses to the fourth coup in Fiji and worked
   with the international community to press Fiji to return to democratic rule as soon as
   possible. We successfully managed Australia’s whole of government contribution to
   the Regional Assistance Mission to Solomon Islands (RAMSI) and actively supported
   a review of RAMSI by the Pacific Islands Forum. In Papua New Guinea (PNG), the
   department coordinated the Enhanced Cooperation Program (ECP). The department
   also helped implement measures taken in response to the escape from PNG,
   of an Australian who was the subject of a formal extradition request. Elsewhere
   in the region, the department played a major role in responding to the riots that
   destroyed much of Tonga’s capital and successfully concluded a fifth memorandum
   of understanding with Nauru.

   Regionally, the department helped to consolidate firm regional responses to the
   challenges of weak governance and to ensure that concrete actions were taken to
   implement the Pacific Plan vision of a more prosperous and stable region.



New Zealand

The department maintained its efforts to strengthen our important and diverse
relationship with New Zealand. Our support for Mr Downer’s biannual talks with the
New Zealand Foreign Minister and for Mr Vaile’s hosting of the annual Closer Economic
Relations (CER) Ministerial meeting (attended by three ministers from each country)
helped drive a broad agenda of shared foreign and trade policy objectives. Foreign
Ministers’ talks continued to provide strategic direction to trans-Tasman coordination on
key Pacific issues, including events in Fiji and Tonga and RAMSI.

As chair of the interdepartmental New Zealand Policy Group, the department provided
support and coordination for new initiatives to deepen bilateral collaboration. On trade
and economic issues, we collaborated closely with the Department of Industry, Technology
and Resources, the Department of Agriculture, Fisheries and Forestry, and the Australian
Customs Service to implement new rules of origin under the Australia New Zealand Closer
Economic Relations Trade Agreement (ANZCERTA). The new change of tariff classification
rules entered into force on 1 January 2007 following ANZCERTA amendments and
passage of domestic legislation, and will promote trans-Tasman trade by simplifying
administration and reducing business compliance costs.




82        D FAT  ANNUAL  REPORT   2006   –   2007
Working with the co-chairs of the Australia New Zealand Leadership Forum, James Strong
AO (Chairman, IAG Ltd and Woolworths Ltd) and John Allen (CEO, New Zealand Post),
the department helped deliver a fourth annual Forum in Sydney (22 to 23 April), which
participants considered highly successful. Bringing together senior government, business
and community leaders, the Forum has become an effective private sector-led mechanism
for strengthening trans-Tasman ties.




                                                                                                                                  S ECT I O N 2
        FIGURE 12. AUSTRALIA’S TRADE IN GOODS AND SERVICES WITH NEW ZEALAND(a)

                                                Balance                              Exports                      Imports
            15 000
                                                                                                                                       Bala
            12 500
                                                                                                                                       Impo
            10 000
                                                                                                                                       Expo
$ MILLION




             7 500


             5 000


             2 500


                0
                             2001               2002               2003               2004           2005          2006
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
Source: DFAT STARS database and ABS Catalogue 5368.0.




Following the 27 March 2007 determination by the Australian Director of Animal and
Plant Quarantine that imports of New Zealand apples should be allowed into Australia
under strict quarantine conditions, the department worked closely with the Department of
Agriculture, Fisheries and Forestry to manage the impact of this sensitive market access
issue on bilateral relations.


Fiji

Fiji experienced its fourth military coup in 20 years on 5 December 2006. In the months
leading up to the coup, the department worked with other countries to convey to the
Fiji military the international community’s strong opposition to its efforts to destabilise
the country. We put in place extensive consular preparations to evacuate Australians
from Fiji in the event of an emergency and led inter-departmental consideration of the
Government’s response to the coup. We encouraged regional and international responses,
including by the Pacific Islands Forum, aimed at pressing Fiji’s military regime to restore
democratic rule as soon as possible.

With the Department of Immigration and Citizenship (DIAC), the department coordinated
the imposition of travel sanctions against coup perpetrators and their supporters. We
continue to work closely with DIAC to implement those sanctions.




                                                                                               OUTPUT  1.1   pacific        83 
The department continued to coordinate Australian participation in the Pacific Islands
Forum’s Joint Working Group (JWG) with Fiji that helped secure ‘in principle’ agreement by
the military regime to a timetable for an election in the first quarter of 2009. In addition,
we have taken up in the JWG our strong concerns over the abuse of human rights by
the military regime. In United Nations forums we have ensured continued international
attention on human rights in Fiji.

Before the coup, negotiations between Australia and Fiji over proposed amendments to
the textiles, clothing and footwear (TCF) component of the South Pacific Regional Trade
and Economic Cooperation Agreement (SPARTECA) continued. In close consultation
with the Australian and Fiji TCF industries, relevant government agencies and the Fiji
Government, the department secured agreement on the details of amendments to
SPARTECA-TCF and the related package of assistance. In the aftermath of the coup
and in partnership with other government agencies, the department has progressively
implemented the reform package which aims to improve the productivity of Fiji’s
TCF industry.


Solomon Islands

The department continued to coordinate Australia’s whole of government contribution to
the Regional Assistance Mission to Solomon Islands (RAMSI). Other agencies participating
in the RAMSI Inter-departmental Committee are Attorney-General’s, AusAID, Australian
Federal Police, Australian Customs Service, Defence, Finance, Prime Minister and Cabinet,
and Treasury. Other agencies that contribute in-country deployees are National Archives,
AusAID, Australian Electoral Commission, Australian Federal Police, Australian Customs
Service, Defence, Finance, Australian Office of Financial Management, and Treasury.

The Australian National Audit Office undertook a performance audit of the coordination
of Australian Government Assistance to Solomon Islands (Audit Report No.47 2006–07).
The report noted that the department, along with AusAID, had put in place arrangements
that enabled effective and sound coordination of Australia’s participation in RAMSI.

The department worked closely with the Pacific Islands Forum to enhance regional
support for RAMSI. The mission continued to assist the Solomon Islands Government to
maintain law and order, strengthen institutions and local capacity, reduce corruption and
reinvigorate the economy. All sixteen members of the Pacific Islands Forum, including
Solomon Islands itself, are partners in RAMSI. We continued to explore ways to expand
regional participation in RAMSI, including through targeted recruitment of an increased
number of Pacific islanders. The department actively supported a review of RAMSI by the
Pacific Islands Forum, as mandated by Forum Leaders in October 2006.

The department carefully considered and provided advice on Australia’s response
to bilateral tensions following the expulsion of Australia’s high commissioner to
Solomon Islands in September 2006.




8 4        D FAT   ANNUAL   REPORT   2006   –   2007
P E R SO N Al P RO F IlE :
Estelle Parker
Policy Adviser, Regional Assistance Mission to
Solomon Islands (RAMSI)




                                                                                                     S ECT I O N 2
Estelle Parker has worked as a policy adviser to the Special Coordinator of RAMSI
since September 2006. ‘The whole of government aspect of the work is particularly
enjoyable’, Estelle says. ‘RAMSI involves personnel from a number of Australian
federal and state government departments including Treasury, Finance, Customs
and police, all working to develop the skills of Solomon Islanders in their respective
areas. DFAT and AusAID work closely with these agencies on the ground.’ Estelle
chairs a working group of RAMSI and Solomon Islands Government personnel that is
tasked with measuring RAMSI’s performance across all areas.

RAMSI arrived in Solomon Islands in July 2003 following years of civil unrest. The
mission is led by Australia and made up of hundreds of police, military and civilian
advisers from 15 Pacific island countries. Its key focus is developing the capacity
of the Solomon Islands Government in the areas of law and justice, economic
governance and machinery of government.

The past year has also seen greater involvement in RAMSI by the Pacific Islands
Forum, which promises a constructive way ahead through close regional partnership.
Estelle notes that ‘another very rewarding part of this job is working with RAMSI’s
Pacific personnel’. RAMSI includes civilian advisers from countries such as Fiji,
Samoa, Tonga and PNG, who are working with Solomon Islands institutions including
the courts and Auditor General’s Office.

Estelle regularly travels to provincial areas to discuss RAMSI’s work directly with
communities. ‘It is rewarding to receive the overwhelmingly positive feedback from
Solomon Islanders about the tangible improvements RAMSI is making to their lives.
The challenge will be to ensure these achievements are sustainable in the long term.’

                                               Estelle joined DFAT as a Graduate
                                               Trainee in 2001 and has since worked
                                               in the Victoria State Office, European
                                               Union Section and as a Civilian Peace
                                               Monitor in Bougainville, PNG.




                                               Ms Estelle Parker (centre), a departmental officer
                                               working for the Office of the Special Coordinator,
                                               and members of RAMSI undertaking a community
                                               outreach in Solomon Islands, April 2007.
                                               Photo courtesy of RAMSI




                                                                OUTPUT  1.1   pacific          85 
We worked closely with RAMSI and the Australian high commission to develop an
effective public diplomacy strategy for Solomon Islands, and engaged proactively with
Australian media to improve understanding of Australian policy towards Solomon Islands,
including our leadership role in RAMSI. The department supported RAMSI’s enhanced
outreach activities at all levels throughout Solomon Islands, which has helped maintain
strong public support for RAMSI among Solomon Islanders. A recent survey in Solomon
Islands found that 90 per cent of all respondents supported RAMSI’s presence in
Solomon Islands.




Ms Jacqui Rabel (second from left), a departmental officer attached to the Office of the Special Coordinator, and members
of RAMSI undertaking community outreach in Solomon Islands, April 2007.
Photo courtesy of RAMSI



The department worked closely with AusAID to coordinate a whole of government
response to the devastating tsunami that struck Solomon Islands on 2 April 2007.
Significant resources despatched by Australian Government agencies and RAMSI provided
valuable immediate short-term relief. We also assisted with coordination of longer-term
reconstruction and rehabilitation assistance to help those in affected areas to recover.


Papua New Guinea

In Papua New Guinea (PNG), the department continued to coordinate the Enhanced
Cooperation Program (ECP) under which Australian officials are helping improve
governance and build capacity in PNG Government agencies. Around 45 officials from
a range of Australian Government agencies assisted PNG in economic and financial
management, measures against corruption, law and justice, and border management and
transport security. The officials made significant contributions on a number of issues,
particularly budget planning and financial controls.




8 6        D FAT   ANNUAL   REPORT   2006   –   2007
The department made preparations for the involvement of a number of Australian
ministers in the annual Australia–PNG Ministerial Forum, scheduled for November 2006 in
PNG. This event was cancelled by Australia following the escape from PNG of an Australian
citizen who was the subject of a formal extradition request for serious alleged offences.
The department coordinated the implementation of measures that reflected strong
Australian Government concern at this occurrence.




                                                                                                                      S ECT I O N 2
High Commissioner to Papua New Guinea, Mr Chris Moraitis, meets local stallholders at
the opening on 12 September 2006 of the new 7.5 million PNG Kina Mount Hagen
markets funded by the Australian Government.




Tonga

The department played a central role in coordinating Australia’s response to riots in
Nuku’alofa, Tonga, on 16 November 2006, which destroyed most of the central business
district and resulted in a number of deaths. At the request of the Government of Tonga,
we helped manage the joint deployment by Australia and New Zealand of approximately
150 defence and police personnel, who made a major contribution to the rapid restoration
of law and order in the Tongan capital. The whole of government response coordinated
by the department included development assistance that has contributed to business
recovery and reconstruction. We helped coordinate the work of AusAID and the Australian




                                                                                  OUTPUT  1.1   pacific         87 
Federal Police following the riots in assessing the needs of the Tongan police force and
developing an appropriate package of assistance to enhance the ability of the police force
to respond to civil unrest.


Nauru

The department coordinated a coherent whole of government approach to assistance
to Nauru, under our bilateral memorandum of understanding (MOU), which led to
improvements in economic management, transparency and accountability. We led
successful negotiations to conclude a fifth MOU, scheduled to come into force in
January 2008, committing the Government of Nauru to continued reform in exchange for
Australian assistance.


Other Pacific island countries

The department maintained and deepened our bilateral relationships with a number of
other Pacific island countries, leading to strong cooperation from many on important
regional issues such as the coup in Fiji. We facilitated successful visits to Australia by the
Prime Ministers of Fiji, Vanuatu and Tonga (on two occasions) and a number of high-level
visits to the region, including by the Australian Governor-General to Samoa for the funeral
of the Samoan Head of State. These visits reaffirmed the value both sides attach to
these relationships.


Pacific Islands Forum

Australia actively engages the Pacific region’s institutions, which are central to our efforts
to promote regional stability and prosperity. The department continued to work closely with
Australia’s Pacific neighbours to support Pacific Islands Forum (PIF) and Forum Foreign
Ministers’ action to agree on firm steps to tackle governance challenges in Solomon
Islands and Fiji. In particular, the department played a leading role in shaping the
October 2006 Forum Leaders’ Meeting statement of support for RAMSI and in developing
a unified Forum position against the coup in Fiji, which called for a return to democracy
and the rule of law.

The department’s work ensured that the April 2007 Pacific Energy Ministers’ Meeting
agreed on an action plan to implement regional bulk fuel arrangements, a key Pacific
Plan deliverable for island states critically affected by rising fuel prices. (The Plan was
adopted by PIF Leaders at their meeting in October 2005 and revised in October 2006.)
In collaboration with other agencies, the department launched important regional
consultations on more robust arrangements for fisheries enforcement and sharing of
law enforcement information. We contributed significantly to successful finalisation of
a practical framework for regional cooperation in counter-terrorism assistance at the
2007 Forum Regional Security Committee meeting.




8 8        D FAT  ANNUAL  REPORT   2006   –   2007
Close collaboration with AusAID ensured timely establishment of the Australia–Pacific
Technical College, with student intakes commencing from mid-2007. The department has
also advanced Australia’s interests in liberalised regional trade by initiating discussions
with Forum Island Countries (FICs) on the negotiation of a comprehensive ‘PACER Plus’
free trade agreement with Pacific island countries and New Zealand (‘PACER’ is the
Pacific Agreement on Closer Economic Relations). Our strong support for Forum efforts to




                                                                                                   S ECT I O N 2
rationalise institutional arrangements helped enhance understanding and acceptance of
the initiative.


Outlook

In the coming year, the department will support a further deepening of Australia–
New Zealand economic integration, including through continued progress on the single
economic market agenda and negotiations on an investment protocol to ANZCERTA.

The situation in Fiji will remain a significant challenge. Persistent and effective advocacy of
Australia’s position and cooperation with other countries within the region and beyond will
be needed to ensure pressure is maintained for an early return to democracy and the rule
of law.

The department will continue to work with Forum countries, the Solomon Islands
Government and partner agencies to respond to the challenges faced by RAMSI. In line
with Australia’s long-term commitment to the future of Solomon Islands, we will seek to
ensure our efforts benefit the security and livelihood of Solomon Islanders.

The department will maintain coordination of Australian Government relations with
Papua New Guinea, including advancing Australia’s interests with the incoming PNG
government and coordinating the involvement of Australian agencies in the Enhanced
Cooperation Program.

The department will continue to encourage the Government of Tonga to pursue political
reform to avoid a resurgence of civil unrest. We will work with all Pacific island countries
to encourage good governance and increased transparency.

The department will seek to bolster Forum mechanisms to strengthen regional governance,
including in the areas of regional fisheries enforcement, exchange of information on law
enforcement and transnational crime, and counter-terrorism cooperation.

Consistent with the Pacific Plan’s recognition of the regional benefits of trade
liberalisation, the department will advance ‘PACER Plus’ FTA negotiations to protect
Australian trade interests and promote improved FIC access to Australian, New Zealand
and global markets.




                                                                OUTPUT  1.1   pacific        89 
1.1.7 BILATERAL, REGIONAL AND MULTILATERAL TRADE NEGOTIATIONS


Overview


   The department pursued vigorously the reduction of trade barriers and expansion of
   Australia’s markets through multilateral, regional and bilateral trade negotiations.

   Our top trade priority in 2006–07 remained the successful conclusion of the
   World Trade Organization (WTO) Doha Round negotiations across the core
   areas of agriculture, industrial products and services in a manner that delivers
   commercially meaningful new trade opportunities. A successful Doha Round would
   stimulate global economic growth and create substantial new opportunities for
   Australian businesses.

   Following the suspension of the Doha Round in July 2006, the department was
   at the forefront of attempts to revive the negotiations, including by supporting
   the efforts of Mr Truss and his predecessor Mr Vaile to bring WTO ministers back
   to the negotiating table. Once negotiations resumed in February 2007, Australia
   was actively engaged, including through our leadership of the Cairns Group of
   agricultural exporters. In June 2007, an attempt by the United States, European
   Union (EU), Brazil and India (known as the G4) to bridge the key gaps on agriculture
   and industrial products broke down. While this was a disappointing setback,
   WTO members remain committed to concluding the Round as soon as possible.

   The department led Australia’s participation in a number of WTO disputes in
   2006–07, advancing our commercial and systemic legal interests. We agreed
   with the EU on a bilateral solution to its challenge to Australia’s quarantine
   regime. We coordinated Australia’s involvement as a third party in important WTO
   disputes, including Brazil’s challenge to US cotton subsidies and challenges to
   the EU’s import regime for biotech products and China’s for automotive parts.
   The department also advanced Australia’s trade interests in a wide range of WTO
   committees, including those on Agriculture and on Regional Trade Agreements.

   The department oversaw the implementation of the Government’s expanded bilateral
   and regional trade liberalisation agenda, including the commencement of free trade
   agreement negotiations with Japan, the Gulf Cooperation Council and Chile.

   The department continued to engage with key stakeholders on the Government’s
   trade policy agenda. Departmental officials met frequently with Australian state and
   territory governments, industry, academics and non-government organisations. The
   department published regular electronic bulletins on the Doha Round, the Doha
   services negotiations, the WTO dispute settlement system and FTA negotiations.

   The department, through Australia’s OECD delegation in Paris, influenced the
   OECD’s deliberations on enlargement of its membership and its decision to enhance
   engagement with South-East Asia, particularly Indonesia.




9 0        D FAT   ANNUAL   REPORT   2006   –   2007
WTO Doha Round negotiations

The department’s key objective in the Doha Round negotiations is to maximise market
access outcomes for Australia on agriculture, industrial products and services, as well as
to reduce agricultural subsidies and further strengthen WTO rules.




                                                                                                                            S ECT I O N 2
Following the resumption of negotiations in February 2007, Australia continued to be a
major contributor to the effort to secure worthwhile outcomes, particularly as Chair of the
Cairns Group. In support of Mr Truss’s efforts, the department worked closely with the
major trading powers, including the G4 countries, to find a way forward. Although the G4
were not able to reach agreement, they did make some important progress on key issues
under negotiation. The department facilitated Mr Truss’s participation in the G6 (G4
members plus Australia and Japan), which met at ministerial level in April and May 2007
in New Delhi and Paris respectively.

WTO members are working hard to take the negotiations forward, including by focusing on
draft texts on agriculture and industrial products. While some progress has been made,
significant divergences remain. The department will continue to give the highest priority to
concluding the Doha Round in a way that delivers a commercially worthwhile outcome.

Agriculture

The department maintained pressure for an ambitious Doha Round outcome on
agriculture, which is still the most distorted sector of global trade in goods and remains
at centre stage in the negotiations. We continued to press WTO members to deliver real
improvements in market access for Australian producers, as well as substantial reductions
in trade-distorting subsidies. We worked closely with key agricultural industry groups,
including the National Farmers’ Federation, to refine Australia’s positions and strategies
on agricultural negotiating issues.




The former Minister for Trade, Mr Mark Vaile (sixth from right), with his Cairns Group colleagues at the 20th Anniversary
Cairns Group Ministerial Meeting in Cairns on 20–22 September 2006. At the meeting, ministers reaffirmed the Group’s
commitment to achieving ambitious outcomes on agricultural trade liberalisation in the Doha Round of WTO negotiations.




                                                                   OUTPUT  1.1   trade Negotiatio N s                9 1 
   P E R SO N Al P RO F IlE :
   George Mina
   Counsellor, Australian Permanent Mission
   to the WTO
   With much of the Cairns Group’s work in Geneva, the home of the WTO, George
   Mina’s main responsibility has been to coordinate the Group’s agriculture attachés,
   a role he describes as ‘part technician, part campaign organiser’. Leadership of the
   Cairns Group of 19 agricultural exporting countries is central to Australia’s strategy
   for achieving agricultural trade reform in the WTO Doha Round negotiations.

   ‘Brokering a common Group stance is often the most interesting challenge,
   and it involves road-testing ideas before lobbying for support within the broader
   WTO Membership’, says George. ‘Coalitions are effective only if they are cohesive,
   and it’s been a real privilege to work with such a dedicated group of people.’
   During his posting in Geneva, George has helped develop nine new Cairns Group
   negotiating proposals. These have maintained the Group’s influence at a time when
   negotiating coalitions in the WTO have burgeoned.

   In the last few years, George has seen the Cairns Group’s membership grow to 19,
   with Pakistan and Peru joining in 2005 and 2007 respectively. Most members are
   developing countries. ‘As any rice farmer in Thailand or cattle producer in Uruguay
   will tell you, trade reform in agriculture has a real impact on the rural communities
   in developing countries,’ George says. ‘It has been very satisfying to work to
   promote not only Australia’s trade interests, but also tangible improvements in the
   lives of the world’s poorest people.’

                                               George joined the department in 1994.
                                               He has served as Deputy Head of
                                               Mission in Cairo, and has specialised in
                                               international trade policy in Canberra.




                                              Mr George Mina.




92        D FAT  ANNUAL   REPORT   2006   –   2007
The Cairns Group of 19 agricultural exporting countries, led by Australia, remained
active in the negotiations and a strong voice for agricultural trade reform throughout
the year. Cairns Group ministers met for the 20th Anniversary of the Group in Cairns in
September 2006 and again in Lahore, Pakistan, in April 2007, reaffirming their strong
commitment to a successful conclusion to the Doha Round. The Group welcomed Peru
as its nineteenth member. It produced a number of influential proposals in key areas of




                                                                                                        S ECT I O N 2
the negotiations, including on sensitive products, tropical products, food aid and export
credits, and the special agricultural safeguard.

The department worked closely with the wine industry to conclude negotiations with the
United States, Chile, Argentina, New Zealand and Canada on the World Wine Trade Group
Agreement on Wine Labelling. The Agreement was signed by Mr Truss in January 2007
and will allow producers to develop a common label acceptable in all major wine markets,
reducing production costs. Wine is Australia’s third-largest agricultural export, worth about
$3 billion annually and employing 30 000 people in Australia.

  FIGURE 13. DIRECTION OF AUSTRALIA’S ExPORTS 2006



                       Other (15%)                                   Japan (17%)




   New Zealand (6%)


                                                                                   China (11%)
United States (8%)


                                                                               Taiwan (3%)

                                                                              Hong Kong (2%)
  European Union (14%)
                                                                         Republic of Korea (7%)


                              India (5%)                       ASEAN (12%)

Source: DFAT STARS database and ABS Catalogue 5368.0.




Industrials

Departmental officials continued to work in the Doha Round negotiations for commercially
meaningful improvements in market access for industrial products (including manufactured
goods, minerals, energy, forestry and fisheries). We consulted closely with industry to
ensure the department focused on products of most interest to Australian exporters.

Although broad agreement was reached about the formula for cutting tariffs on industrial
products, significant differences of view remain on the size of tariff cuts. This reflected the
reluctance of key developing countries to cut industrial tariffs without more progress on
agriculture, as well as the fact that the industrial sector remains sensitive for a number




                                                        OUTPUT  1.1   trade Negotiatio N s        93 
of countries. Some limited progress was made on a number of other issues, including
the treatment of non-tariff barriers and in developing proposals for the liberalisation of
specific sectors.

Services

Given the importance of services in the Australian economy, the department continued to
place a high priority on improving access through the Doha Round to overseas markets for
services exports. The department’s main objectives are to make it easier for Australian
services providers to set up operations overseas, for professionals to work temporarily
overseas, and to ensure regulations do not act as unnecessary barriers to trade. We
worked closely with domestic agencies, industry and like-minded WTO members, focusing
on the financial, telecommunications, education, mining-related, environmental and
professional services sectors.

Progress on services market access was hampered by the lack of agreement on
agriculture and industrial products. Until progress is made on those issues, developing
countries are likely to continue to resist tabling improved services offers. Nevertheless,
some progress was made in key markets of interest to Australia, including in Asia, and by
focusing more on specific sectors such as education and professional services.

The department participated in negotiations regarding possible rules on the domestic
regulation of services. Without compromising the rights of governments to regulate or
creating unnecessary administrative burdens, strong disciplines on domestic regulation
(covering qualifications requirements and procedures, licensing and technical standards)
would benefit Australian services exporters by tackling protectionism disguised
as regulation.

Apart from the Doha Round negotiations, the department led efforts in the WTO’s
review of air transport services to lock in liberalisation of ancillary air transport services,
including ground handling and airport operation services. We successfully negotiated
improved services access as compensation for changes made by the EU and the
United States to their scheduled WTO commitments.

Intellectual property

The department was active in advocating Australia’s intellectual property (IP) interests
internationally, reflecting a growing bilateral, regional and multilateral IP agenda.

In the WTO, the department played an active role on a range of commercially sensitive
IP issues, including geographical indications, patent disclosure requirements and the
effective enforcement of IP rights. We protected and promoted Australia’s IP interests
in other multilateral forums, including the World Intellectual Property Organization and
the World Health Organization. We managed the treaty-making process for Australia’s
accession to the Protocol on Amending the WTO Agreement on Trade-Related Aspects
of Intellectual Property Rights, which will allow developing countries greater access to
affordable medicines.




94        D FAT  ANNUAL   REPORT   2006   –   2007
The department worked in the APEC Intellectual Property Experts Group to promote
Australia’s IP interests, including by encouraging the effective enforcement of IP rights and
by assisting APEC members to implement their IP commitments. We also contributed to
the Government’s response to industry reviews designed to enhance Australia’s domestic
IP regime, including the Advisory Council on Intellectual Property’s report on patents and
experimental use, and the Australian Law Reform Commission’s report on gene patenting




                                                                                                 S ECT I O N 2
and human health.

WTO rules, including trade facilitation

The department led Australia’s participation in negotiations on WTO rules (anti-dumping,
subsidies and fisheries subsidies). Australia tabled proposals on prohibited export
subsidies, which seek to provide increased fairness and certainty for Australian exporters.
We helped advance negotiations on strengthening WTO rules to discipline fisheries
subsidies, which would reduce overfishing and overcapacity.

The department continued to play a leading role in negotiations to build on WTO rules
on free trade agreements (FTAs). In December 2006, the WTO adopted a transparency
mechanism providing increased scrutiny of FTAs to ensure they are trade liberalising and
WTO consistent. The Thailand–Australia FTA (TAFTA) was the first FTA to be reviewed under
the mechanism. TAFTA was well received by WTO members who commented positively on
the standard and coverage of the FTA. The Australia–United States FTA is scheduled to be
reviewed in the near future. The department will continue to pursue stronger WTO rules
on FTAs.

The Doha negotiations on trade facilitation intensified. The outcomes have the potential
to reduce the costs and time associated with the import, export and transit of goods
across borders. The department’s work focused on developing rules that would reduce
business costs by simplifying customs procedures and making them more predictable
and transparent.

WTO development agenda

Australia believes that a successful Doha Round is a key means for advancing
development and helping to alleviate global poverty.

The department continued to advocate the need for trade reform in core negotiating
areas, particularly agriculture, in order to deliver on the Doha Round’s development
mandate. Agriculture is marked by high levels of trade distortion and is the sector from
which the majority of developing country populations derive their livelihood. Australia
worked closely with developing country agricultural exporters in the Cairns Group to
press for agricultural trade reform. The department also contributed constructively to the
negotiations on a wide range of other issues of particular interest to developing countries.
We encouraged other countries to follow Australia’s leadership in providing tariff-free,
quota-free access for all products from least-developed countries.




                                                 OUTPUT  1.1   trade Negotiatio N s        95 
Minister for Trade, Mr Warren Truss (right), meets WTO Director-General,
Mr Pascal Lamy, at the WTO Secretariat in Geneva in November 2006
to discuss the Doha Round of negotiations.



Australia continued to help developing countries integrate into the world trading system
through the provision of trade-related technical assistance. Through AusAID, Australia
contributed $500 000 to the WTO Global Trust Fund in 2007 to support developing
country participation in the Doha Round negotiations, bringing the Government’s total
contribution to the Fund to $2.96 million.

WTO trade and environment

The department led Australia’s participation in the Doha negotiations on trade and
environment. We tabled a proposal that underlines the importance of countries taking
steps to enhance the mutual supportiveness of their national trade and environment
policies. Our proposal also encourages further sharing of national experiences
between WTO members. We will continue to work with other members towards a
constructive outcome that does not allow countries to use environmental measures for
protectionist purposes.




96        D FAT  ANNUAL   REPORT   2006   –   2007
Supporting trade liberalisation in other international trade bodies

In meetings of other international bodies, including the Asia-Pacific Economic Cooperation
(APEC) forum and the Organisation for Economic Co-operation and Development (OECD),
the department underlined the importance of a successful outcome to the Doha
negotiations. We helped negotiate strong statements of support for the Round by APEC




                                                                                                 S ECT I O N 2
leaders and ministers at their meetings in Vietnam in 2006. Australia will be working to
use the APEC meetings in Australia in 2007 to help move the Doha Round forward.

The department organised a gathering of 18 key WTO ministers hosted by Mr Truss during
the May 2007 OECD Ministerial Council Meeting in Paris, at which the Minister pressed
for a breakthrough in the Doha negotiations.

Australia’s permanent delegation to the OECD was actively involved in deliberations
on enlargement of membership and engagement with non-member economies.
OECD ministers agreed to commence the accession process for a group of countries—
Chile, Estonia, Israel, Russia and Slovenia—which maintained a geographical balance and
did not overload the organisation. Through Australia’s OECD delegation, the department
helped ensure that the OECD expanded its reach in Australia’s region by including
Indonesia in the list of significant developing economies with which the OECD will enhance
its engagement, together with Brazil, China, India and South Africa.


WTO compliance and dispute settlement

The department continued to lead Australia’s involvement in a number of WTO disputes to
advance Australia’s commercial and legal interests.

The department reached an agreed resolution with the EU on its WTO challenge to
Australia’s quarantine regime, bringing this case to an end. We continued to work with
relevant domestic agencies to manage the Philippines’ challenges to our quarantine
regime. We worked with the Department of Agriculture, Fisheries and Forestry (DAFF) to
improve the transparency and timeliness of Australia’s import risk assessment regime.
Changes to the regime were announced by the Government in October 2006.

Australia’s successful WTO challenge, with Brazil and Thailand, to the EU’s sugar export
subsidies required the EU to introduce reforms in 2006. These reforms are likely to
change the EU’s status from the world’s largest sugar exporter to a net sugar importer.
The department continued to monitor the EU’s implementation of the WTO ruling on sugar.
We also worked closely with Australian industry in lobbying other countries to remove
export subsidies for agricultural and industrial products where these seem incompatible
with WTO rules.

The department coordinated Australia’s involvement as a third party in a number of
important WTO disputes with implications for our commercial interests and for WTO legal
issues. These included challenges to various import regimes such as those for biotech
products in the EU, wine and spirits in India, automotive parts in China and rice in Turkey.




                                                 OUTPUT  1.1   trade Negotiatio N s        97 
We participated as a third party in Brazil’s challenge to US cotton subsidies and in the
disputes on EU and US large civil aircraft subsidies (the Boeing-Airbus case).

The department continued to support work in the WTO to improve the dispute settlement
procedures and launched a publication titled Ten Years of WTO Dispute Settlement:
Australian Perspectives to commemorate the tenth anniversary of the system. Australia’s
ambassador to the WTO was appointed Chair of the Dispute Settlement Body.

We liaised extensively with other agencies and state and territory governments to ensure
Australia’s industry assistance measures, including investment incentives, complied with
our WTO obligations.


WTO accessions

The department continued to engage in WTO accession negotiations to ensure the
commercial interests of Australian exporters were advanced and WTO rules met. We
worked closely with Vietnam in developing the commitments it undertook to secure
membership. Vietnam became a WTO member in January 2007. This will improve market
access for Australian exports of dairy, sugar, confectionery and fruit, as well as banking,
education, environment and mining services. We also worked to advance negotiations with
Russia, Ukraine and a number of other countries on the terms under which they would join
the WTO.


New free trade agreement negotiations

The department increased resources to secure commercially meaningful results through
FTA negotiations, in the context of an expanding FTA agenda. Australia’s FTAs—with
New Zealand, the United States, Singapore and Thailand—already cover 24 per cent of
our 2006 two-way trade in goods and services. The Government aims to increase this
coverage through current negotiations with Japan, China, Malaysia, ASEAN (with New
Zealand), and the Gulf Cooperation Council. The countries involved in these negotiations
represent a further 35 per cent of Australia’s two-way trade.

The Government also worked towards establishing FTA negotiations with Chile and Pacific
island countries. In addition, work has progressed on FTA feasibility studies with the
Republic of Korea and Mexico. The conclusion of all these negotiations would mean that
Australia’s FTAs could eventually cover more than 60 per cent of current trade.

The department continued to engage key stakeholders in developing the Government’s
FTA program and strategies through consultations with industry, state and territory
governments and public interest groups. These consultations helped identify impediments
to increasing Australia’s exports to and investment in target markets. The department
held detailed consultations on sector-specific issues: agriculture; manufactures including
automotives, and textiles, clothing and footwear; services; rules of origin; intellectual
property; and government procurement.




98        D FAT  ANNUAL   REPORT   2006   –   2007
Japan Free Trade Agreement

Following the successful conclusion of the joint feasibility study on an Australia–Japan FTA,
and the agreement by Prime Minister Howard and Japanese Prime Minister Shinzo Abe in
December 2006 to begin FTA negotiations, the department secured a good start to the
negotiations at the first meeting in April 2007. At this, Australia and Japan agreed on an




                                                                                                 S ECT I O N 2
overall approach to the negotiations, including that negotiating rounds will be held every
two to three months. They also agreed on a comprehensive list of trade issues to be
discussed, including goods (agriculture and industrials), services and investment as well
as government procurement, electronic commerce and competition.

The FTA negotiations are an important opportunity to build on the excellent economic
relationship. With exports of $36 billion in 2006, Japan is Australia’s largest export
market, accounting for 17 per cent of Australia’s global exports. Japan is also
Australia’s third-largest source of investment. A comprehensive FTA will help create new
opportunities, such as in the services sector, which accounts for over two-thirds of our
respective economies but is a relatively small part of total trade. Econometric modelling
undertaken jointly by the department and the Japanese Government found that the
immediate removal of all barriers to trade and investment would boost Australia’s GDP by
at least $39 billion over 20 years.

Although Australia’s and Japan’s ambitions are similar in most respects, reaching
agreement on agriculture will be difficult. In light of this, the department is pursuing a
focused advocacy program to build support in Japan for a comprehensive FTA and address
Japanese concerns about agricultural liberalisation. The department hosted visits to
Australia by Japan’s consumer organisations and, through the Tokyo embassy, undertook
a series of regional visits in Japan.

In Australia, the department conducted over 200 consultations concerning the
negotiations with state and territory governments, business and interest groups.

China Free Trade Agreement

The department led Australia’s participation in nine negotiating rounds since the launch
of negotiations in April 2005 (four rounds in 2006–07) involving whole of government
teams representing 12 Australian agencies. Progress has been incremental. Market
access negotiations for goods and services began at the seventh round of negotiations
in December 2006 with both sides tabling their requests and offers on goods (including
agriculture) and lists of barriers affecting market access requests on a range of services
(followed by investment barriers in March 2007). At the ninth round of talks held in Beijing
in June 2007 work continued on the full range of issues, including the development
of a draft text. Substantial differences remain on market access and a range of other
technical issues.

Difficulties reflected the different approaches of both countries to major issues, and
that this was China’s first FTA negotiation with a major developed economy. Both
countries already share a strong and significant trade relationship—China is Australia’s
second-largest export market with exports of $24 billion in 2006. The FTA negotiations




                                                 OUTPUT  1.1   trade Negotiatio N s        99 
aim to build on this and deliver substantial gains for both countries. Australia is seeking
removal of barriers facing: Australian exporters of agricultural, mineral, energy and
manufacturing products; Australian services providers in sectors such as education,
telecommunications, professional and business services, financial services, logistics,
and construction; and Australian investors, particularly in mining; and Australian holders
of intellectual property rights. It will be important that the negotiations cover increased
market access for goods, services and investment, and measures such as intellectual
property rights, transparency and government procurement.

The negotiations continued to enjoy high-level political support. Vice-Premier Zeng Peiyan
visited Australia in March 2007 and signalled China’s desire to identify breakthroughs in
the negotiations in advance of President Hu Jintao’s visit to Australia in September 2007
for APEC. The leaders of both countries have confirmed their commitment to a
comprehensive and high-quality FTA.

The department continued to pursue a targeted advocacy program in China to focus key
Chinese decision-makers on the positive contribution a high-quality FTA could make to
China’s economic development. In 2006–07, the department hosted or facilitated three
visits to Australia by over 20 Chinese officials from the mining, telecommunications and
agriculture sectors, as well as a media delegation focused on agriculture. The Australian
embassy in Beijing held five high-level sectoral seminars for Chinese officials and industry
figures on sugar, accountancy, insurance, legal services and competition policy—along
with three capacity-building courses to help Chinese officials participate effectively in FTA
negotiations. The department organised a ministerial-level agriculture conference in Xian,
China, and led Australian industry visits to China representing our sugar industry and in
relation to rules of origin matters.

In Australia, the department conducted 380 consultations concerning the negotiations
with state and territory governments, business and interest groups.

Malaysia Free Trade Agreement

In the FTA negotiations with Malaysia that began in May 2005, the department has
focused on narrowing differences, especially in relation to services and the coverage
of government procurement. The Prime Minister’s visit to Malaysia in November 2006
provided an opportunity to advocate the benefits of a comprehensive, high-quality FTA to
a wide Malaysian audience and MAFTA negotiations intensified towards the end of 2006.

In the first half of 2007, there was significant slippage in the negotiations as Malaysia
sought to manage a heavy trade agenda and changes to its key negotiating personnel.
We agreed with Malaysia to hold a number of inter-sessional meetings to advance
negotiations in goods, services and investment before convening a full session later
in 2007. Some areas of the negotiations, such as goods and rules of origin, are
well advanced and agreement has been reached to provide request lists at the next
full session.

The department held about 60 MAFTA-specific stakeholder consultations with state and
territory governments, business and other interested stakeholders over the past year.




1 0 0        D FAT  ANNUAL   REPORT   2006   –   2007
Australia–ASEAN–New Zealand Free Trade Agreement (AANZFTA)

ASEAN, as a group, is a larger trading partner for Australia than any single country.
Australia’s trade with ASEAN has grown faster than with any of our other major trading
partners over the past five years, except China and India. By contrast, Australia’s
investment links are small with ASEAN, attracting only 3 per cent of Australia’s foreign




                                                                                                  S ECT I O N 2
direct investment.

The AANZFTA negotiations are the first time ASEAN has agreed to negotiate a
comprehensive FTA and to engage in simultaneous negotiations on trade in goods,
services and investment. The negotiations are aimed at producing an FTA that
consolidates Australia’s links with the ASEAN region and contributes to a strengthening of
the trade and investment relationship.

Australia aims through AANZFTA to maintain its competitiveness in ASEAN markets and
secure improved market access. In goods, Australia’s priorities include passenger motor
vehicles and automotive parts, metals and a range of agricultural products. In services,
Australia is seeking outcomes that improve substantially on most ASEAN countries’ WTO
commitments. Sectors of specific interest include professional and financial services,
telecommunications and education.

In 2006–07 the department led a whole of government negotiating team to four full
negotiating rounds and a number of inter-sessional meetings. In line with the negotiating
timetable set by leaders, the department has been working to conclude substantive
negotiations by May 2008. Guided by the principles and objectives set by leaders from
Australia, New Zealand and the ten ASEAN countries at the launch of FTA negotiations in
November 2004, the negotiations resulted in agreement that the FTA would be considered
as a package, covering goods, services, investment, economic cooperation, dispute
settlement and other institutional issues. By the end of June 2007, however, agreement
had yet to be reached on the inclusion of other trade-related issues, such as intellectual
property and government procurement.

In 2006–07, the department continued to provide technical assistance to build ASEAN’s
negotiating capacity. The department led workshops on issues such as tariff and trade
data analysis and scheduling of investment commitments.

In Australia, the department held around 140 stakeholder consultations on the AANZFTA
processes with state and territory governments, business and interest groups.

Gulf Cooperation Council (GCC) Free Trade Agreement

In December 2006, the Government decided to commence FTA negotiations with the Gulf
Cooperation Council (GCC)—a regional customs union and regulatory body comprising
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). This
followed the cessation of bilateral negotiations with the UAE in June 2006 at the GCC’s
request. The GCC is Australia’s largest market for passenger motor vehicle exports,
accounting for 69 per cent of Australia’s total vehicle exports by value, and is Australia’s
tenth-largest export market overall (exports of $5.9 billion in 2006).




                                                OUTPUT  1.1   t rade Negotiatio Ns         101 
The department sought a quick start to and early progress in the negotiations. Building on
meetings between Mr Truss and GCC leaders, Australian and GCC FTA chief negotiators
met in February 2007, and negotiating teams met in Riyadh (Saudi Arabia) on 2 May 2007
for preparatory talks. This resulted in agreement on comprehensive negotiations to be
concluded as a single undertaking, and the tabling of offers by both sides on goods,
services and investment at the first negotiating round (30 July – 1 August 2007 in
Canberra). A second round is planned before the end of 2007.

In Australia, the department conducted over 130 consultations with domestic
stakeholders in 2006–07 on the GCC FTA.

Chile Free Trade Agreement

On 8 December 2006, the Government agreed in principle to commence a bilateral
negotiation process with Chile with a view to developing a comprehensive FTA. As well
as its potential to deliver significant commercial benefits to Australian exporters and
investors, an FTA could strengthen Australia’s efforts to promote economic integration and
trade liberalisation in the Asia-Pacific region and could help project Australia’s interests in
Latin America more widely.

Australia is the fourth-largest foreign direct investor in Chile with investments—
concentrated mainly in the mining sector—amounting to approximately US$2.78 billion in
2006 according to Chilean Government statistics. Bilateral trade in goods and services
was A$574 million in 2006.

The initial stage of the negotiation process was undertaken in the first half of 2007.
The department called for public submissions and undertook consultations with
stakeholders throughout Australia, including state and territory governments, industry
groups, businesses and federal government agencies. Domestic consultations were held
in parallel with preliminary meetings with Chile’s FTA team in Santiago, on 22 February
and 25–29 April 2007, where good progress was made in establishing the feasibility of a
comprehensive agreement. The Government announced the formal commencement of FTA
negotiations with Chile in mid-July 2007.

The department held 76 consultations with domestic stakeholders in 2007, as well as
with some Australian companies operating in Chile.

Potential FTA partners

In 2006, Australia and the Republic of Korea agreed to undertake a joint non-government
FTA study, with the study outcome to serve as the basis for recommendations to both
governments on next steps. The Australia–Mexico Joint Experts’ Group on Strengthening
Bilateral Relations (JEG), established in 2006, is developing a report for both governments
outlining practical ways to enhance the economic relationship, including the feasibility of a
possible FTA in the future.




1 02        D FAT  ANNUAL   REPORT   2006   –   2007
                                                                                                                           S ECT I O N 2
Minister for Trade, Mr Warren Truss, and Indonesia’s Minister for Trade, Dr Mari Pangestu (right), meeting in Jakarta on
25 June 2007 for the Seventh Bilateral Trade Ministers’ Meeting.




    Australia’s FTA agenda

    • The free trade agreements (FTAs) concluded by the Government and those being
      pursued aim to secure improved access to markets accounting for more than
      60 per cent of Australia’s total trade.

    • The Government aims to achieve FTAs that are comprehensive, providing
      liberalisation across all sectors.

    • FTAs can offer the prospect of quicker and more extensive gains with selected
      countries, or groups of countries, than can be achieved through the WTO.

    • The proliferation of FTAs around the world means that we also need to negotiate
      FTAs to secure Australia’s competitiveness in our key export markets.


In June 2007, Mr Truss announced Australia’s interest in Indonesia and the Pacific
islands as potential FTA partners in the region. The Australia–Indonesia Trade Ministers’
Meeting held in Jakarta on 25 June recommended the preparation of a joint feasibility
study for a bilateral FTA. Pacific island countries are obliged under the 2001 Pacific
Agreement on Closer Economic Relations (PACER) to negotiate trade arrangements with
Australia (and New Zealand) if they enter into such discussions with another developed
country (currently the EU).




                                                               OUTPUT  1.1   t rade Negotiatio N s               103 
Implementation of existing free trade agreements

The Australia–United States Free Trade Agreement (AUSFTA) is now in its third year.
The department worked with representatives of the legal, accounting and engineering
professions to secure access for Australian professionals to the United States market.
Delaware, an important centre for corporate law in the US, agreed to adopt rules allowing
Australian lawyers to practise there for the first time. Also, all but two US states now
provide access for Australian accountants. Jointly with DAFF, the department sought to
expand market access for Australian agricultural products. The government procurement
provisions of the AUSFTA were reviewed and efforts made to sign on remaining US
states. In close cooperation with other agencies, we continued negotiations on improved
information sharing arrangements on competition matters (see sub-output 1.1.3 for more
information on AUSFTA).

The Singapore–Australia Free Trade Agreement (SAFTA) continued to deliver benefits to
Australian businesses. In February 2007, a second set of amendments involving further
trade liberalisation came into force. Preparations for the second review of SAFTA are
ongoing (see sub-output 1.1.2).

On 1 January 2007, new rules of origin came into force under the Australia New Zealand
Closer Economic Relations Trade Agreement (ANZCERTA), based on a change of tariff
classification approach similar to that adopted by Australia in other recent FTAs such
as AUSFTA and TAFTA. The new rules of origin will facilitate bilateral trade by simplifying
administration and reducing business compliance costs. In addition, negotiations
commenced in 2006 on an ANZCERTA Investment Protocol (see sub-output 1.1.6).

The department’s efforts to advance the Thailand–Australia Free Trade Agreement
(TAFTA’s) in-built agenda (regarding services, investment, government procurement,
competition and business mobility) were affected by Thailand’s political situation.
We continue to press Thailand to commence negotiations in these areas
(see sub-output 1.1 2).


Outlook

Australia has a major stake in maintaining a healthy and open multilateral trading
system. To maximise economic opportunities for Australian businesses and investors, the
department will continue to work hard for genuine trade liberalisation, through multilateral
outcomes, as well as regional and bilateral initiatives.

A successful outcome from the Doha negotiations would be the most effective way to
open up world markets and address the significant distortions remaining in the global
trading system. Concluding the Doha Round and maintaining a strong multilateral trading
system will remain the department’s highest trade priority. We will continue to strive for
a Doha outcome that delivers commercially meaningful results on agriculture, industrial
products and services.




1 0 4        D FAT  ANNUAL  REPORT   2006   –   2007
Should the Doha negotiations fail or be put on hold in the coming year, the department will
work closely with like-minded WTO Members to minimise the damage to the multilateral
trading system and to develop options for advancing our trade interests. We will continue
to use the WTO dispute settlement system to pursue and defend Australian trade and
economic interests.




                                                                                                S ECT I O N 2
The department, through its permanent delegation to the OECD in Paris, will continue
to promote Australia’s core interests across the OECD’s program of work, particularly
providing input on trade issues and key governance issues such as enlargement and
enhanced engagement.

Japan and Australia have agreed to progress FTA negotiations as quickly as feasible.
However, there will be some difficult market access issues to resolve, in particular
Japan’s sensitivities on agriculture.

The China FTA negotiations involve a range of difficult issues and will have to address
sensitivities on both sides. The department will focus on obtaining an improved tariff offer
from China (while protecting Australia’s automotive and textiles, clothing and footwear
industry plans), and on obtaining concessions from China on services and investment.
The Prime Minister has said Australia will continue to negotiate for as long as it takes to
agree to an FTA that delivers commercially meaningful outcomes for Australia.

We will be seeking to progress FTA negotiations with Malaysia through inter-sessional
meetings before convening a full negotiating round in late 2007.

Much work remains to be done to secure a comprehensive ASEAN–Australia–New
Zealand FTA. Negotiations at the first round for 2007–08 will focus on principles to guide
the preparation of tariff offers and the exchange of services offers, with work to be
progressed on investment, economic cooperation and other issues. We will be seeking to
provide for meaningful coverage of intellectual property, competition policy and government
procurement. Mr Truss will meet his ASEAN and New Zealand counterparts in late August
to assess progress and prospects for concluding negotiations by the end of 2007.

We plan to engage the GCC in an ambitious negotiating schedule over the course of
2007–08. Both sides have agreed in principle to hold three rounds in 2008 and aim to
conclude negotiations by the end of that year. An ambitious negotiating schedule is also
being developed for Chile with a first round taking place in August 2007.




                                              OUTPUT  1.1   t rade Negotiatio N s        105 
1.1.8 TRADE DEVELOPMENT/POLICY COORDINATION AND
ASIA-PACIFIC ECONOMIC COOPERATION


Overview


   The department laid the groundwork for the hosting by Australia of the Asia-Pacific
   Economic Cooperation (APEC) forum in 2007. We worked towards substantial policy
   outcomes in APEC’s trade, economic and human security agendas and commenced
   negotiations for a major declaration by APEC Leaders on climate change, supporting
   global efforts to address this challenge. We pursued policy outcomes that reinforced
   APEC’s role as the pre-eminent regional forum.

   The department provided assistance to the 2006 review of the Export Finance and
   Insurance Corporation (EFIC), a statutory corporation that provides financial and
   insurance services to Australian exporters where they cannot be sourced through
   commercial channels. We also facilitated an expansion of support from EFIC to small
   to medium-sized exporters. We encouraged input from the states and territories to
   Government trade policy development, particularly on free trade agreements (FTAs),
   and ensured better understanding of Government policy through consultation forums
   such as the National Trade Consultations and Senior Trade Officials’ Group. We
   managed the formation of the Trade Minister’s new Trade Advisory Council (TAC).
   We produced Trade 2007, the first trade statement to be launched by Mr Truss as
   Minister for Trade.



APEC

Australia’s hosting of the APEC forum in 2007 will be its first since APEC’s inception in
Canberra in 1989. This involves some 30 APEC meetings in all states and territories
involving leaders, ministers and official, business and academic delegates over the course
of 2007.




APEC Senior Officials’ Meeting in the R G Casey Building, Canberra, 15 January 2007.




1 0 6        D FAT  ANNUAL   REPORT   2006   –   2007
The department managed an effective whole of government process to coordinate the
development of APEC policy outcomes and provided advice to a wide range of Government
agencies hosting APEC sectoral ministerial and officials’ meetings. Specifically, we
provided support for the Prime Minister’s Special Envoys on APEC, and for Australia’s
Ambassador for APEC and Chair of the APEC Senior Officials’ Meeting process. In addition,
the department coordinated preparations for the APEC Ministerial Meeting (of foreign and




                                                                                              S ECT I O N 2
trade ministers), the Meeting of APEC Ministers Responsible for Trade, four APEC Senior
Officials’ Meetings and, with the Department of the Prime Minister and Cabinet, the APEC
Economic Leaders’ Meeting.

Building on our work in previous years, we laid the groundwork for major outcomes in
2007 in eight key policy areas.

1. Climate change, energy security and clean development

The department played a central role in developing a major declaration by APEC Leaders
articulating a regional view on the challenge of climate change, building on a call by APEC
Leaders in 2006 for further activity on clean development and energy security.

2. World Trade Organization

The department led the Government’s efforts in APEC to reinvigorate the momentum of
the Doha Round of World Trade Organization trade negotiations. We played a key role in
negotiating ministers’ statements in 2006 and 2007 and the leaders’ statement in 2006,
and laid the basis for a similar statement in 2007, emphasising that an open, rules-based
and non-discriminatory multilateral trading system is a prerequisite for maintaining the
region’s growth and prosperity.

3. Regional economic integration

The department helped secure agreement by leaders in 2006 to examine ways to
strengthen regional economic integration, including the possibility of a Free Trade Area of
the Asia-Pacific (FTAAP) as a long-term prospect. We coordinated work in APEC in 2007
to develop a comprehensive range of recommendations covering trade and investment
liberalisation, structural reform, strengthening financial markets and strategic capacity-
building, as well as further work on the implications and prospects for an FTAAP.

The department coordinated APEC’s work on model measures for regional trade
agreements and/or free trade agreements that led to the completion of six chapters for the
2006 Leaders’ Meeting and the development of further work in 2007—the chapters cover
trade in goods, government procurement, standards, transparency, dispute settlement and
cooperation. These model measures will promote consistency and coherence in free trade
agreements negotiated by APEC members. The department also conducted trade policy
training for APEC economies in Jakarta from 5 to 7 December 2006.




            O UTPUT  1.1   trade deV elopme Nt/ policY coordiN atioN aNd apec        107 
4. Trade facilitation

The department helped draft APEC’s second Trade Facilitation Action Plan (TFAPII),
designed to reduce trade facilitation costs by another 5 per cent over 2007–2010.
This was endorsed by ministers responsible for trade in Cairns in early July 2007. The
department focused on trade facilitation measures that would deliver practical benefits to
business. These included:

• work to establish import/export ‘single windows’ by APEC member economies,
  including using internationally endorsed standards (this will ensure that business
  need only input data once electronically to cover all government import/export
  data requirements)

• extension of the APEC Business Travel Card Scheme to promote adoption by
  non-participating economies

• development of a framework to strengthen cooperation in food safety activities and to
  harmonise food safety regulatory frameworks with existing international food standards

• protection of data privacy by developing a common approach to protection of
  consumer/private information passing across borders as a contribution to maintaining
  consumer confidence in e-commerce.

5. Structural reform

The department helped obtain recognition by leaders in 2006 of the importance of
structural reform within APEC economies. In partnership with the Treasury and in
consultation with the APEC Business Advisory Council (ABAC), we provided further
impetus to APEC’s work on structural reform in 2007 by elevating it on the Senior
Officials’ agenda, promoting new analysis of the issues and driving the APEC Economic
Committee’s work program. This responds to business concerns about the impact of
behind-the-border impediments to their activities such as inadequate or overly burdensome
regulatory systems, lack of transparency, measures that inhibit competition and poor
governance. This work highlighted the useful role APEC plays in helping economies tackle
common challenges through analytical work, policy dialogue and targeted capacity building
for developing economies.

6. Secure trade and human security

The department made a substantial contribution to APEC’s secure trade and human
security agenda. We hosted and managed the APEC Secure Trade in the APEC Region
(STAR V) Conference in June 2007, which brought together business and government
representatives to explore cost-effective solutions to enhance the safe and secure
movement of people and trade in Australia’s region. The conference highlighted the
need for greater harmonisation of security measures, which will be developed further
through APEC.




1 0 8        D FAT  ANNUAL  REPORT   2006   –   20 07
In collaboration with Singapore, the department contributed to the development of
voluntary principles on cooperative activities that economies can undertake to ensure the
swift recovery of trade in the aftermath of a terrorist attack. We worked closely with the
United States to develop voluntary principles on protecting food supply against terrorist
attack. Together with AUSTRAC, we supported the implementation of two APEC workshops
on countering terrorist financing. Separately, following agreement by APEC Health




                                                                                              S ECT I O N 2
Ministers, the department supported the development of practical measures to guide
APEC economies on regional response procedures in the event of a pandemic or vector-
borne disease. We contributed to APEC’s work on emergency preparedness, including by
designing and facilitating a successful regional communications simulation exercise on
avian influenza.

7. APEC institutional reform

The department successfully instituted a program of further institutional reform of APEC to
give it greater capacity to respond to the needs of its members. We achieved agreement
in 2006 to a comprehensive review and rationalisation of APEC forums and working
groups. We worked towards the establishment of a new APEC Policy Support Unit to
strengthen APEC’s research and analytical capacity on trade and structural reform issues.
We pursued other reforms to APEC, including fixed terms for its Executive Director and an
increase in membership contributions. These initiatives will be put to APEC ministers when
they meet in September 2007.

8. Public diplomacy, business and youth outreach

The department managed a significant public diplomacy campaign on Australia’s hosting
of APEC to meet widespread media and public interest. We conducted numerous media
briefings throughout the year. Working closely with the APEC Business Advisory Council,
we sought to engage business in APEC’s agenda through briefings and consultations.
This included hosting the APEC Australia Business Forum in November 2006 in Parliament
House, attended by over 150 senior business representatives. The Prime Minister
delivered the keynote address and launched Australia’s APEC year. The department also
supported the Prime Minister’s high-level Business Consultation Group and in August
2006 hosted an informal symposium on APEC 2007 to engage business and academia in
Australia’s developing policy agenda.

The department delivered a youth outreach program based on the development of a
comprehensive APEC education resource that was distributed to 3000 secondary schools
in Australia. This program also included a national essay competition in association
with National Youth Week, State Youth Parliaments debating APEC issues, and youth
involvement during APEC Leaders Week.




           OU TPUT  1.1   trade deVelopme N t/ policY coordi N atio N aNd apec         109 
Launch of the APEC 2007 curriculum resource—APEC: Strengthening our Community, Building a Sustainable Future, at the
State Library of NSW, 18 April 2007. Left to right: Ms Sandra Henderson (DFAT); Mr Robert Baker (Consultant); Ms Kathy
Kirby (Asia Education Foundation); Minister for Foreign Affairs Mr Alexander Downer; Ms Gabrielle England (Curriculum
Corporation); Ms Jane Weston (Consultant); and Ms Thuy Van Nguyen (NSW Ambassador to the National Youth Roundtable).




Trade finance

During the second half of 2006, the department completed its Government-mandated
review of the Export Finance and Insurance Corporation (EFIC). EFIC is a statutory
corporation that provides finance and insurance services to support Australian exporters
and overseas investors where private sector financiers or insurers lack the capacity or
willingness to do so. In this way, EFIC fills a market gap.

EFIC is periodically reviewed to ensure its operations remain relevant and competitive
in a changing global financial and trading environment. A review conducted in 2006
found that EFIC was servicing the market gap appropriately and recommended that the
Corporation continue to operate in its current form. In May 2007, in a separate initiative
the Government granted EFIC an expansion of its powers to enable it to support small to
medium-size exporters seeking to establish global supply and distribution chains.


Trade policy coordination and business liaison

Trade 2007 statement

The department produced the Minister for Trade’s annual trade statement, Trade 2007,
which was launched in June 2007, and used it to build community understanding of
Australia’s trade environment. The statement reviewed Australia’s trade performance for




1 1 0        D FAT  ANNUAL   REPORT   2006   –   2007
2006 and outlined future priorities and strategies. The Minister’s address at the launch
was televised nationally and the statement was distributed widely, along with a pocket
booklet Trade at a Glance and fact sheets on key trade issues. The statement and audio
of the Minister’s address were made available online.

National trade consultations




                                                                                               S ECT I O N 2
The department worked actively to ensure that business and state and territory
governments were informed of and provided with opportunities to contribute to the
development of the Government’s trade policy and trade negotiating positions. We
organised the June 2007 National Trade Consultations, a ministerial-level meeting
between the Government and state and territory governments, which discussed progress
in the Government’s trade agenda and strategies for cooperation on trade issues. The
ministerial consultations were supplemented during the year by a number of meetings of
the Senior Trade Officials’ Group, comprising representatives from each state and territory
and chaired by the department. Close consultation with the states and territories was
particularly important in developing negotiating positions both for the WTO Doha Round
and for FTA negotiations.

Trade Advisory Council

The department facilitated the formation of the Trade Minister’s new Trade Advisory
Council (TAC), and organised its inaugural meeting in June 2007. The TAC will be the
Trade Minister’s key source of advice from the business sector on trade and investment
issues. The new Council replaces three existing advisory groups—the Trade Policy
Advisory Council, the WTO Advisory Group and the FTA Advisory Panel. Membership of the
TAC has been drawn from across Australia and includes private sector representatives
from the agriculture, resources, food, financial services, manufacturing, education,
defence and other industries. The minister will look to the TAC to provide business
feedback on the Government’s trade negotiations and trade promotion activities.


  State and territory ministers meet to discuss trade

  The department manages the National Trade Consultations (NTC), the consultative
  forum for the Government and state and territory governments on trade issues.
  The Minister for Trade, Mr Truss, met with his ministerial counterparts from the
  states and territories on 15 June 2007. Ministers discussed a broad range of
  trade-related issues, including progress in the WTO Doha Round of negotiations
  and Australia’s FTA negotiating agenda. Ministers also discussed opportunities for
  further cooperation between the Government and state and territory governments
  to build on Australia’s recent record trade performance and assist Australian
  businesses expand their operations internationally.




              O UTPUT  1.1   trade deV elopme Nt/policY coordiN atio N a Nd apec        111 
Live animal exports

The department continued to work actively with the Department of Agriculture, Fisheries
and Forestry to secure memorandums of understanding (MOUs) on the live animal
trade with trading partners in the Middle East, specifying the animal health and
welfare conditions under which trade can be undertaken. In October 2006, MOUs were
successfully concluded with Egypt on trade in live animals and on the slaughtering and
handling of live animals. MOUs on trade in live animals were concluded with Libya (in May
2007) and negotiated with Qatar (signed in July 2007). These will add to agreements
currently in place with the United Arab Emirates, Eritrea, Kuwait, Saudi Arabia and Jordan.

Conflict diamonds

The department coordinated Australia’s involvement in the UN-sanctioned Kimberley
Process Certification Scheme for rough or conflict diamonds, introduced on 1 January
2003. The scheme aims to ensure that the rough diamond trade is free from conflict
diamonds, which have been used to finance wars and civil conflict in Africa. As a
result, Australia’s diamond export trade of around $630 million benefits from a secure
trading regime, which involves over 70 countries including the world’s major producers,
traders and polishers of rough diamonds. With the Department of Industry, Tourism
and Resources and the Australian Customs Service, the department facilitated a peer
review visit, comprising Canadian and Indian officials, in May 2007, to assess Australia’s
diamond import and export processes. This report is expected to be finalised in
early 2007–08.


Outlook

Australia’s year as host of APEC will culminate in the annual APEC Economic Leaders’
Meeting in early September 2007. Our expectation is that leaders and ministers will
endorse a substantial work program and outcomes across APEC’s diverse agenda. We
expect that these decisions will leave APEC a stronger forum and set the course of APEC’s
policy agenda for the medium term.

The department aims to organise regular meetings of the Trade Advisory Council so that
the Trade Minister can use it effectively to seek members’ views on opportunities and
challenges for Australian business in the current trade environment. We will continue to
work with the Department of Agriculture, Fisheries and Forestry to negotiate agreements
on trade in live animals with trading partners in the Middle East region.




1 1 2        D FAT   ANNUAL   REPORT   2006   –   2007
1.1.9 INTERNATIONAL ORGANISATIONS, LEGAL AND ENVIRONMENT


Overview




                                                                                                  S ECT I O N 2
  The department continued supporting the Government’s efforts to advance
  Australia’s multilateral interests in the United Nations and the Commonwealth,
  promote human rights internationally, combat people smuggling and ensure
  Australia’s preparedness for a possible outbreak of human pandemic influenza.
  The department worked though our New York and Geneva missions to advance
  Australia’s core interests across the UN system. Our work included high-level
  advocacy of reforms to improve the UN’s effectiveness and efforts to ensure UN
  support and engagement on our priorities. We continued to advance Australia’s
  interests through support for Commonwealth activities on democratisation, good
  governance and the rule of law.
  In September 2006, in response to a rapidly growing legal agenda both domestically
  and internationally, the department split the Legal Branch into a Domestic Legal
  Branch and an International Legal Branch. The two-branch structure has enabled us
  to service more effectively the domestic and international needs of the department
  and Government.
  We made a significant contribution to the development of the International Trade
  Integrity Bill, introduced into Parliament on 14 June 2007, to implement the
  Government’s response to the Inquiry into Certain Australian Companies in relation
  to the UN Oil-For-Food Programme (the Cole Inquiry). We implemented UN sanctions
  against Iran and the Democratic People’s Republic of Korea (DPRK). In response to
  our enhanced responsibilities in this field under the new legislation, we created a
  new Sanctions and Transnational Crime section in the International Legal Branch.
  The department facilitated the entry into force of the treaty on Certain Maritime
  Arrangements in the Timor Sea and the International Unitisation Agreement for
  Greater Sunrise on 23 February 2007. These treaties provide the legal framework
  for mutually beneficial commercial exploitation of oil and gas fields in the Timor Sea.
  We provided policy and administrative support to the Secretary’s membership of
  the Prime Minister’s Task Force on Emissions Trading. The recommendations of
  the Task Force have been accepted by the Government. In addition, there has been
  significant work to carry forward the agenda of the Asia-Pacific Partnership on Clean
  Development and Climate.
  Together with the Department of the Environment and Water Resources and AusAID,
  the department helped establish Australia’s Global Initiative on Forests and Climate.
  In efforts to advance the cause of human rights internationally, we worked towards
  enabling the new UN Human Rights Council to become a more effective and
  responsive body than its predecessor, the Commission on Human Rights. The
  department led the Australian delegation to bilateral human rights dialogues with
  China, Laos and Vietnam.




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   The Ambassador for People Smuggling Issues continued to lead Australian
   Government engagement with the Bali Process on People Smuggling, Trafficking
   in Persons and Related Transnational Crime, a key pillar of Australia’s strategy to
   combat people smuggling and trafficking in the Asia-Pacific region. As Australian
   co-chair of the Bali Process, the Ambassador worked closely with his Indonesian
   counterpart to build strong regional networks, improve national agency capacity
   and strengthen operational contacts on the crimes of people smuggling and
   human trafficking.
   The department remained closely involved in the government-wide response to the
   possibility of an outbreak of human pandemic influenza. We maintained links with
   key international organisations and a broad range of governments in the global fight
   to minimise the spread of avian influenza.



United Nations

The department, working with other agencies, continued to advance and safeguard
key Australian interests in the UN system—including on international security,
non-proliferation, human rights and reform of the UN’s operations. We were proactive in
securing a continued, strong UN presence in East Timor to support security, stability and
development and worked to ensure a substantial role for UN missions in reconstruction
efforts in Afghanistan and Iraq. We liaised closely with UN agencies on the Lebanon
conflict and our ongoing interests in the Middle East.




Ambassador to the United Nations, the Hon. Robert Hill (right), congratulating Mr Ban Ki-moon on his confirmation as
Secretary-General Designate of the United Nations, 13 October 2006.




1 1 4        D FAT  ANNUAL   REPORT   2006   –   2007
The department continued to pursue Australia’s interests in reform of the UN’s structures
and working methods, including high-level advocacy for changes to the UN’s management
of peacekeeping and disarmament issues. We continued to promote the need for budget
discipline, transparency and accountability across the organisation.

The department worked to support the successful candidacy of Mr Andrew Hughes for




                                                                                                    S ECT I O N 2
the position of Police Adviser to the UN Department of Peacekeeping Operations. As the
UN’s most senior police position, this success reflects Australia’s ongoing and important
contribution to both UN and regional peacekeeping efforts.

We secured Australia’s re-election to the Commission on the Limits of the Continental
Shelf (CLCS) for a further five-year term from 2007–12. Re-election will critically assist
Australia’s interests in CLCS consideration of our 2.8 million square kilometre continental
shelf claim. We secured Australia’s election to the International Telecommunication Union
(ITU) and the election of Australian representatives on the boards of the International
Hydrographic Organization (IHO) and the World Meteorological Organization (WMO). Our
presence on these boards ensures we are well placed to advance our interests in issues
relating to information and communications technology, maritime navigation and climate.

The department led Australia’s engagement in the work of the United Nations Educational,
Scientific and Cultural Organization (UNESCO), including by providing secretariat support
for the Australian National Commission for UNESCO. We hosted a celebratory event
marking the 60th anniversary of the National Commission and promoting Australia’s
successful bid for World Heritage Listing of the Sydney Opera House.


Environment

The department has contributed to strong outcomes on climate change across a
wide range of international forums. In June 2007, the Prime Minister appointed the
Secretary, Michael L’Estrange and Mark Johnson, former Vice Chairman of Macquarie
Bank, as Special Envoys for APEC Australia 2007 to work with APEC economies to
promote clean development and climate as a key focus of the APEC Leaders’ Summit in
September 2007. The department took forward the ground-breaking and practical work
of the Asia-Pacific Partnership on Clean Development and Climate. The partnership
brings together key developed and developing country emitters and industry to promote
technological efforts on climate change that are environmentally sound and cost effective
and recognises the priority of partner countries for continued economic growth and access
to secure energy resources. Australia has announced financial support for 63 of the
partnership projects already developed.

The Secretary was a member of the Prime Minister’s Task Group on Emissions Trading,
the recommendations of which have been accepted by the Government. We played a key
role in the Australia–China Coordination Group on Clean Coal Technology, established by
the Prime Minister and Chinese President Hu Jintao to intensify bilateral cooperation on
the development and deployment of clean coal technologies. The Group complements the
work of the Asia-Pacific Partnership and APEC.




         OU T PUT  1.1   i NterNatio Nal orgaN isatio N s, legal aN d eNV iroN me Nt         115 
Parliamentary Secretary to the Minister for Foreign Affairs, Mr Greg Hunt (left), presenting a Wollemi pine to Bergius Botanic
Gardens in Stockholm. Accepted by Swedish Minister for the Environment Mr Andreas Carlgren (right) and Curator of the
Berguis Botanic Gardens, Ms Henni Wanntorp (centre).
Photo: Mia Åkermark, Orasis Photo



In multilateral negotiations, the department continued to promote a more comprehensive
and inclusive international response to climate change. In May 2007, the Minister for
Foreign Affairs called for new negotiations for a truly global agreement that includes all
major emitters to be launched at the UN Framework Convention on Climate Change
(UNFCCC) meeting in Bali in December 2007. The department made a constructive
contribution at the Twelfth Conference of the Parties to the UNFCCC in Nairobi in
November 2006 and the Twenty-Fifth Session of the Subsidiary Bodies to the UNFCCC
in Bonn in May 2007. We retained Australia’s prominent leadership role as chair of the
Umbrella Group of countries (Australia, Canada, Iceland, Japan, New Zealand, Norway,
Russia, Ukraine and the United States), an influential bloc in international climate
change negotiations.

In conjunction with the Department of the Environment and Water Resources (DEW) and
AusAID, we helped establish Australia’s Global Initiative on Forests and Climate, which
aims to address deforestation—responsible for some 20 per cent of global greenhouse
gas emissions—through a multi-faceted approach that delivers climate, economic and
social benefits to developing countries. The department successfully led international
efforts to amend the Protocol to the London Convention on the Prevention of Marine
Pollution to allow for the capture and storage of carbon dioxide under the sub-seabed, a
key technology for reducing carbon dioxide emissions. The amendment entered into force
in February 2007.




1 1 6        D FAT   ANNUAL   REPORT   2006   –   2007
We worked actively in the International Civil Aviation Organization and International
Maritime Organization to promote the development of balanced and strategic approaches
to addressing greenhouse gas emissions from international aviation and shipping.
We continue to support Australia’s national interests in these forums by encouraging
practical, voluntary mitigation action that is effective and non-discriminatory and that does
not distort markets. We contributed actively to awareness and encouraged future action by




                                                                                                    S ECT I O N 2
APEC to address greenhouse gas emissions from international aviation.

The department participated in international negotiations on the Fourth Assessment
Report of the Intergovernmental Panel on Climate Change. In conjunction with the
Department of the Environment and Water Resources, we ensured accurate articulation
of key Panel findings, including the report’s emphasis on low emissions technologies to
address climate change.

The department worked closely with other agencies to advance a range of bilateral
climate change partnerships and engaged in broader initiatives to promote the
development and deployment of cleaner energy technologies. We maintained close
working relationships with Pacific countries, including in the context of the Pacific
Islands Framework for Action on Climate Change 2005–2015, with a particular focus on
adaptation to climate change-related impacts.

Whales

With DEW we coordinated a major diplomatic effort, including through Australia’s overseas
missions, to promote the Government’s pro-conservation stance before and during
the 59th meeting of the International Whaling Commission (IWC), held in Anchorage,
Alaska in May 2007. We provided support to the Minister for the Environment and Water
Resources to help ensure whale conservation objectives were resoundingly endorsed at
IWC59, reflecting growing international opposition to commercial and ‘scientific’ whaling.
The IWC reaffirmed the importance of the moratorium on commercial whaling and
the Commission again called on Japan to cease its ‘scientific’ whaling program in the
Antarctic. Along with DEW, we also worked to ensure the protected status of whales under
the Convention on International Trade in Endangered Species of Wild Fauna and Flora
(CITES) would not be subject to review while the IWC moratorium remains in place.

Tsunami warning systems

In close cooperation with Geoscience Australia, the Bureau of Meteorology, Emergency
Management Australia and AusAID, the department coordinated implementation of the
Australian Tsunami Warning System. We played a lead role in strengthening international
institutional frameworks, including the Intergovernmental Oceanographic Commission’s
Indian Ocean Tsunami Warning System. Australian missions around the Pacific have been
active in encouraging Pacific island governments to sign memorandums of understanding
(MOUs) on tsunami early warning to permit the installation of tsunami warning equipment
across the Pacific. These systems provide benefits to Australia and the Pacific region as a
whole in terms of improved data for identifying and responding to tsunami. The first such
MOU was signed with Niue in October 2006.




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Negotiations on genetic resources

The department undertook significant advocacy efforts to influence the direction
of negotiations on trade in genetic resources under the Convention on Biological
Diversity. We argued for international support for more effective and pragmatic national
implementation of the Convention that would support scientific research and commercial
use of genetic resources, and we pointed out the dangers of proposals to create heavy
regulatory systems for science and industry. Following consultations with Australian
industry and research bodies, we prepared several policy submissions for these
negotiations. The first—on certificates of compliance—was substantially endorsed at
an expert meeting in January 2007. Departmental officials also undertook visits to key
countries to explain our proposals, which helped build a firm basis for formal negotiations
which resume in 2007–08.

The department also led Australia’s efforts on marine genetic resources in the United
Nations Informal Consultative Process on Oceans and Law of the Sea. Using Australia’s
experience, we showed how regulation of marine genetic resources within national
jurisdictions could support scientific research, lead to commercial benefits, and reinforce
the conservation and management of marine ecosystems. Our efforts helped ensure the
meeting laid solid foundations for future negotiations on regulation of genetic resources
beyond national jurisdictions in 2007–08.


Law of the sea and Antarctica

The Treaty on Certain Maritime Arrangements in the Timor Sea (CMATS) and the
International Unitisation Agreement for Greater Sunrise entered into force on 23 February
2007 following an exchange of notes in Dili. CMATS sets aside maritime boundary claims
in the Timor Sea for a substantial period, with Australia and East Timor equally splitting
government revenues derived from the exploitation of the Greater Sunrise reservoirs.
Current projects within the Joint Petroleum Development Area, as well as the Greater
Sunrise field once it is developed, will provide East Timor with significant revenue and
an opportunity for sound economic development. These treaties provide a basis for
strengthened bilateral relations with one of our closest neighbours.

We continued to work closely with the Department of Agriculture, Fisheries and Forestry
(DAFF) and the Department of Environment and Water Resources to advance Australia’s
interests in combating illegal, unreported and unregulated (IUU) fishing. We played a
key role in negotiating with other members of the Commission for the Conservation of
Southern Bluefin Tuna a conservation package that will contribute to the protection and
sustainable use of fish stocks.

The department successfully led efforts in the United Nations General Assembly
to regulate destructive fishing practices to minimise impacts on vulnerable marine
ecosystems, including seamounts and cold water corals, in areas beyond national
jurisdictions. We helped DAFF negotiate the implementation of the General Assembly
resolution as an interim measure in the South Pacific Regional Fisheries Management
Organisation (SPRFMO). In late 2006, Australia successfully hosted the second round of




1 1 8        D FAT  ANNUAL   REPORT   2006   –   2007
negotiations in Hobart for the treaty establishing SPRFMO. The Australian Government
also signed the Southern Indian Ocean Fisheries Agreement in December 2006, a
new treaty that will conserve and manage many of the marine resources of the region,
including those of the deep sea.

The department has assisted with establishing closer cooperation with key strategic




                                                                                                     S ECT I O N 2
partners in the southern ocean to combat IUU fishing. The Australia–France Cooperative
Fisheries Enforcement Treaty was signed in January 2007. The treaty applies in the
exclusive economic zones (EEZs) of Australian and French subantarctic territories in the
Southern Ocean and formalises cooperative enforcement during patrols in the region
against IUU fishing vessels. Australia has also exchanged a Letter of Intent with South
Africa on the future of cooperative surveillance and enforcement in fisheries of our
respective EEZs in the Southern Ocean.

On 28 March 2007, the Sub-commission of the Commission on the Limits of the
Continental Shelf (CLCS) made its recommendations to the full Commission on
Australia’s submission to extend our continental shelf beyond 200 nautical miles. The
full Commission deferred adoption of final recommendations until its next session in
August and September 2007. Australia’s significant contribution to the CLCS has been
maintained with the re-election of Phil Symonds, Australia’s candidate to the CLCS, on
14 June 2007 for another five-year period.

At the thirtieth Antarctic Treaty Consultative Meeting in April–May 2007, the Australian
delegation, led by the department, achieved important improvements in the management
of growing tourism, including rules on ships that may land passengers on the continent.
The meeting also decided to discourage any tourism activities that may substantially
contribute to the long-term degradation of the fragile Antarctic environment, such as the
building of permanent infrastructure in support of tourism.


International law and transnational crime

The department made a significant contribution to whole of government efforts to address
legal issues relevant to deployments of Australian personnel to a range of countries,
including Afghanistan, East Timor and Iraq. Following the breakdown of law and order in
Tonga in November 2006, and the subsequent request by the Government of Tonga for
Australian assistance, the department led negotiations with Tonga that resulted in the
implementation of effective arrangements for the immediate deployment of Australian
defence and police personnel. We also provided legal advice in support of RAMSI in
Solomon Islands.

We worked closely with the Department of Defence and Attorney-General’s Department to
ensure Australia maintained its record of strict adherence to international humanitarian
law in all theatres in which Australian forces are deployed. The department led whole
of government engagement in multilateral negotiations on a possible new instrument
constraining the use of cluster munitions, and supported the prohibition of those
munitions that cause unacceptable harm to civilians. We facilitated signature of the
Protocol to the Convention on the Safety of UN and Associated Personnel by the Minister




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for Foreign Affairs on 19 September 2006, emphasising Australia’s support for the
strengthening of the legal framework of protections for UN and humanitarian personnel in
the field.

The department worked closely with the Australian Safeguards and Non-Proliferation
Office (ASNO) during ongoing negotiations on a nuclear safeguards agreement with
Russia (see sub-output 1.1.4 for more information). We facilitated Australia’s ratification
of the Nuclear Transfer Agreement and the Nuclear Cooperation Agreement with China on
3 February 2007.

We led Australia’s support for the International Criminal Court, including through our
chairing of the Court’s Committee on Budget and Finance, by securing clarification
on the issue of budgetary contributions that facilitated Japan’s decision to accede
to the ICC Statute, and by engaging in negotiations that produced a definition of the
crime of aggression. The department worked closely with other states to support the
establishment of the Extraordinary Chamber of the Cambodian Courts to try former
Khmer Rouge leaders.

The department ensured that Australia’s economic and investment interests were
furthered by pursuing negotiation of a range of bilateral economic treaties. We facilitated
the signature of an Agreement on Scientific and Technological Cooperation with South
Africa on 18 October 2006, and ensured Australia’s bilateral Agreement with Sri Lanka for
the Promotion and Protection of Investments entered into force on 14 March 2007. We
facilitated the signature by both Australia and Greece of the Agreement between Australia
and the Hellenic Republic on Social Security on 23 May 2007 during the visit to Australia
by the Greek Prime Minister, Kostas Karamanlis.

The department assisted the Attorney-General’s Department in negotiations on a number
of bilateral extradition, mutual legal assistance and prisoner transfer agreements. Ten of
these were either concluded or entered into force during the year, including with Malaysia,
Thailand, Cambodia and the United Arab Emirates.

Sanctions and transnational crime

The department coordinated whole of government implementation of binding United
Nations Security Council decisions imposing new or modifying existing sanctions regimes.
In particular, we contributed to Australia meeting its international obligations to counter
the financing of terrorism under UN Security Council resolutions 1267 and 1373 and
successor resolutions by maintaining Australia’s terrorist asset freezing regime under the
Charter of the United Nations Act 1945 and related regulations. We also coordinated the
implementation into Australian law of United Nations Security Council counter-proliferation
sanctions regimes against the nuclear and missile programs of the governments of
Iran and the DPRK (see sub-output 1.1.10 on page 129 for our role in promoting the
Government’s international non-proliferation objectives).

The department made a significant contribution to the development of the International
Trade Integrity Bill, introduced into Parliament on 14 June 2007. The Bill implements
the Australian Government’s response to the Inquiry into certain Australian companies




1 20        D FAT  ANNUAL   REPORT   2006   –   2007
in relation to the UN Oil-For-Food Programme (the Cole Inquiry). The Bill, will significantly
strengthen Australian implementation of UN sanctions by increasing the penalties
for breach of sanctions and conferring upon the department (and other sanctions
implementing agencies) new powers to monitor compliance with sanctions.




                                                                                                    S ECT I O N 2
Treaties and outreach

The department continued to support the Parliament’s Joint Standing Committee on
Treaties, which reviewed 32 new treaties during the year. To enhance input to the
committee, we facilitated consultation with the states and territories on treaties currently
under negotiation, prepared extensive biannual schedules (which describe the subject
matter of treaties and list treaty actions under negotiation, consideration or review at a
particular date) and helped facilitate the committee’s follow-up briefings. We instituted an
important reform to streamline the treaty tabling process by enabling minor treaty actions
to be scrutinised by Parliament in an expeditious manner.

The department provided extensive advice on treaties matters to other government
agencies (including those of the states and territories) and maintained, through the
Australasian Legal Information Institute, a free best practice internet facility enabling
access to all 2602 Australian treaty texts.


Human rights

Australia welcomed the establishment of the Human Rights Council in 2006 with
the hope and expectation it would be a more effective and responsive body than its
predecessor, the Commission on Human Rights. During the Council’s first full year of
operation, the department, especially through our UN mission in Geneva, sought to be an
active and constructive observer at the Council.

The Council’s performance has so far been mixed. On the positive side, Australia has
valued the Council’s interactive dialogue between states, human rights mandate-holders
and other key stakeholders including civil society. We have, however, been disappointed
by the continuing unbalanced attention the Council has given to Middle East issues. The
Council has already held three Special Sessions on the Middle East alone (in July, August,
and November 2006), and only one session on Sudan (in December 2006). A critical test
for the new body’s effectiveness will be its ability to respond quickly and effectively to
urgent human rights situations as they occur, but so far the Council has failed to produce
substantial outcomes on the full range of pressing human rights situations.

Bilateral human rights dialogues

The department led delegations to bilateral human rights dialogues with China, Laos and
Vietnam during the course of the year. These dialogues continue to be important forums
for constructive and frank discussions with regional governments on a broad range of
human rights issues.




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Australia raised its full range of human rights concerns at the tenth round of dialogue
held with China in July 2006. The round was held in Australia and featured a successful
meeting between the Chinese delegation and a group of Australian non-government
organisations. The inaugural dialogue with Laos was held in Vientiane during
October 2006 and saw constructive discussions on such issues as the role of the legal
sector in protecting human rights, women’s and children’s rights, and ethnic and religious
diversity. The fifth dialogue with Vietnam was held in Hanoi in April 2007 and dealt with a
range of issues, including gender equality, the situation of religious and ethnic minorities
and the role of national human rights institutions in protecting human rights. Discussions
were constructive and robust particularly in relation to key issues such as restrictions on
the freedom of religion, expression and association.

Indigenous issues

The department played an active role, with other relevant government agencies, in
advancing the consideration of Indigenous issues in the multilateral system, including on
the Australian delegation to the UN Permanent Forum on Indigenous Issues in New York
during May. The department, including through our UN mission in New York, was actively
involved in consultations, mandated by the UN General Assembly’s Third Committee in
November 2006, on the Draft Declaration on the Rights of Indigenous Peoples.

Representations and consultations on human rights

Australian overseas posts made representations on individual human rights cases and
issues of concern during 2006–07. The department conducted a round of formal human
rights consultations with Australian and international NGOs during the year. This enabled
valuable exchanges of information, insights and advice on human rights issues of
public interest.


People smuggling and trafficking

The Ambassador for People Smuggling Issues continued to lead Australian Government
engagement with the Bali Process on People Smuggling, Trafficking in Persons and
Related Transnational Crime, which Australia co-chairs with Indonesia. In this context, the
department cooperated closely with other Australian government policy and operational
agencies, such as the Department of Immigration and Citizenship, the Attorney-General’s
Department, the Australian Federal Police, the Department of Families, Community
Services and Indigenous Affairs and the Australian Customs Service. We also worked
closely with international counterparts from the Office of the United Nations High
Commissioner for Refugees and the International Organization for Migration and regional
counterparts from Thailand and New Zealand.

Australia and Indonesia made a joint presentation on the Bali Process on the sidelines
of the United Nations High Level Dialogue on International Migration and Development
in New York in September 2006. The New York side event created a global profile for
the Bali Process and the regional workshop continued to build regional awareness and




1 22        D FAT  ANNUAL  REPORT   2006   –   2007
capacity. The department co-chaired a regional workshop for victims of human trafficking
in Bali in November 2006. Further information on the Bali Process is available at
www.baliprocess.net.

The department continued to take an active role in the Government’s inter-agency People
Smuggling Task Force. Using our network of overseas posts, we worked successfully with




                                                                                                   S ECT I O N 2
other governments to disrupt people smuggling activities. In Jakarta, the embassy’s close
engagement with Indonesian authorities led to the arrest of two people suspected of
organising the unauthorised arrival of a boat carrying 83 Sri Lankans off Christmas Island
in February 2007.


Avian and pandemic influenza

The department continued to contribute strongly to the Government’s preparations for
a possible influenza pandemic in Australia, our region and beyond. We helped build
regional preparedness and response capabilities at the June 2006 Asia-Pacific Economic
Cooperation (APEC) Health Ministers’ meeting in Sydney and through other practical
activities organised through APEC (see sub-output 1.1.8 for more information). Globally,
we continued to work closely with the Department of Health and Ageing and AusAID to
support the work of the International Partnership on Avian and Pandemic Influenza and to
respond to other emerging issues affecting the international community’s response. We
were active in the Government’s ongoing preparedness planning and completed our own
pandemic influenza contingency plan for our headquarters in Canberra.


Commonwealth

The department intensified preparations for the Commonwealth Heads of Government
and Foreign Ministers Meeting to be held in November 2007 in Kampala, Uganda. We
continued close cooperation with the Commonwealth Secretariat and other members
to ensure an appropriate role for the organisation in promoting and strengthening
Commonwealth values of democracy, good governance and the rule of law. This includes
further, targeted support for a Commonwealth good offices’ role and civil society
initiatives in the Asia-Pacific and African region.


Outlook

We will continue to focus our efforts on areas of the UN that directly engage Australia’s
interests, including work to strengthen cooperation on international peace and security
issues, non-proliferation and support for UN activities on democracy, reconstruction
and institution-building. We will press for quick and effective implementation of the
new Secretary-General’s reform initiatives and advocate a broader agenda to address
UN system-wide issues, such as the coherence of agency functions and mandate,
transparency and accountability.




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We will support the Secretary as the Prime Minister’s Special Envoy for APEC Australia
2007 to ensure climate change is a central focus at the APEC Leaders Summit in
September 2007. Another major priority will be to carry forward the Global Initiative on
Forests and Climate Change.

The department will continue to provide high-quality legal advice on a range of
international law issues, including on law of the sea and extended continental
shelf issues.

We will undertake a further round of human rights dialogue with China. We will continue
to support efforts to make the Human Rights Council a more effective body, and more
generally, to advance the cause of human rights internationally.

The Ambassador for People Smuggling Issues will build on the momentum already
achieved by the Bali Process on People Smuggling, Trafficking in Persons and Related
Transnational Crime. A particular focus over the coming year will be to take stock of
achievements and identify new areas of cooperation. The department will also continue
to work closely with other Australian government agencies on the Australian Government
response to a possible human influenza pandemic.




1 24        D FAT  ANNUAL   REPORT   2006   –   2007
1.1.10 SECURITY, NUCLEAR, DISARMAMENT AND NON-PROLIFERATION


Overview




                                                                                                 S ECT I O N 2
  The department strengthened its role as the primary coordinator of the
  Government’s international counter-terrorism strategies, which have a strong focus
  on South-East Asia and the Pacific. The Ambassador for Counter-Terrorism, as the
  senior official responsible for international advocacy of Australia’s counter-terrorism
  interests, engaged with regional and international partners to advance
  those strategies.

  We implemented a range of new counter-terrorism activities in the region, particularly
  relating to countering radicalisation, keeping chemical, biological, radiological and
  nuclear (CBRN) weapons out of the hands of terrorists, and protecting civil aviation.
  Significant achievements included: strengthening counter-terrorism cooperation with
  Indonesia and the Philippines; co-hosting a Sub-Regional Ministerial Conference
  on Counter-Terrorism; hosting the third Trilateral Counter-Terrorism Consultations
  with Japan and the United States; hosting the Asia-Pacific Seminar on Combating
  Nuclear Terrorism; and advancing Australia’s Man-Portable Air Defence Systems
  (MANPADS) initiative.

  The department continued to give priority to preventing the spread of nuclear
  weapons. We worked for progress on all three pillars of the Nuclear Non-Proliferation
  Treaty (NPT): non-proliferation; nuclear disarmament; and peaceful use of nuclear
  energy. We vigorously encouraged the entry into force of the Comprehensive
  Nuclear-Test-Ban Treaty (CTBT) and continued to pursue a start to negotiation of a
  Fissile Material Cut-off Treaty.

  We helped ensure the Democratic People’s Republic of Korea (DPRK) received a
  strong message from the international community that its ballistic missile tests in
  July 2006 and nuclear test in October 2006 were unacceptable. As a member of the
  International Atomic Energy Agency (IAEA) Board of Governors, Australia put pressure
  on Iran to comply with its NPT safeguards obligations, cooperate fully with the IAEA,
  and suspend uranium enrichment. We strongly supported a more active United
  Nations Security Council role on non-proliferation issues.

  Australia continued to strengthen international barriers against the proliferation
  of weapons of mass destruction (WMD) and their means of delivery, and other
  sensitive conventional weapons, through participation in the major export control
  regimes. A program of outreach activities in the Asia-Pacific region achieved greater
  awareness of and helped build capacity on counter-proliferation issues. We achieved
  increased support for the Proliferation Security Initiative (PSI) to enhance its ability
  to impede illicit WMD-related transfers.

  Under the auspices of the Trilateral Strategic Dialogue (TSD), the department
  continued to advance practical trilateral cooperation between Australia, Japan




     OU T P U T   1.1   securit Y, Nuclear, disarmame N t a Nd NoN- proliferatio N        125 
    and the United States in areas such as counter-terrorism, counter-proliferation,
    maritime security, humanitarian assistance and disaster relief. With the Department
    of Defence, we made good progress in building momentum in trilateral defence
    cooperation. We contributed to successful efforts to strengthen Australia’s alliance
    with the United States. In the ASEAN Regional Forum (ARF), we won strong support
    for co-hosting with Indonesia a future desktop exercise on disaster relief.



Counter-terrorism

The department led the Government’s international counter-terrorism programs by
coordinating Australian agencies’ contributions, and participating extensively in a range
of bilateral and multilateral activities. Australia’s capacity-building assistance continued
to focus on practical and sustained support for regional countries, particularly Indonesia
and the Philippines, in key areas such as law enforcement, intelligence, border control,
transport and maritime security, defence, terrorist financing and counter-radicalisation.

We made strong progress in furthering our most important international partnerships
in the fight against terrorism. In March 2007, Australia co-hosted with Indonesia a
Sub-Regional Ministerial Conference on Counter-Terrorism, bringing together our key
regional partners to advance our collective capacity to counter terrorism (see box on
page 128). We also strengthened trilateral counter-terrorism cooperation with the United
States and Japan, including by hosting the third round of multi-agency talks in June 2007,
which agreed on new capacity-building projects in South-East Asia.




Sub-Regional Ministerial Conference on Counter-Terrorism: Minister for Foreign Affairs, Mr Alexander Downer (sitting
right), and Indonesian Foreign Minister, Dr Hassan Wirajuda (sitting left), discuss counter-terrorism issues with Australian
Ambassador to Indonesia, Mr Bill Farmer AO (second from right), and Dr Desra Percaya (second from left), Indonesian
Department of Foreign Affairs, in Jakarta, March 2007.




1 26        D FAT  ANNUAL  REPORT   2006   –   2007
The department worked productively in regional and multilateral forums, including the
ARF, APEC, the Pacific Islands Forum (PIF), the G8 Counter-Terrorism Action Group and the
United Nations, to build political and technical support for more effective counter-terrorism
efforts. We also contributed to whole of government efforts to implement Australia’s
international counter-terrorism obligations through UN listings of banned terrorist
groups and anti-financing sanctions, and through support for criminal code listings




                                                                                                   S ECT I O N 2
within Australia.

The Ambassador for Counter-Terrorism continued to strengthen international dialogue
and cooperation on counter-terrorism, particularly on strategies to counter terrorist
propaganda. Consultations with key regional and bilateral partners secured additional
support for initiatives such as the Jakarta Centre for Law Enforcement Cooperation,
which has held 90 courses for more than 2000 regional law enforcement officers. The
Ambassador led the International Counter-Terrorism Coordination Group, which brings
together over a dozen Australian agencies working on international counter-terrorism
issues. He also intensified the department’s engagement with Australia’s business and
academic communities on international counter-terrorism issues.

We expanded our network of bilateral counter-terrorism memorandums of understanding
(MOUs) to include Turkey. Australia now has 13 MOUs that provide a basis for practical
cooperation between Australian agencies and partner governments. Under the MOU with
Cambodia, for example, we organised a Counter-Terrorism Discussion Exercise in Phnom
Penh in 2007 aimed at improving local officials’ capacity to respond to a terrorist attack.

To help strengthen national counter-terrorism response mechanisms, the department
published the International Counter-Terrorism Handbook, which aims to help government
officials develop and implement whole of government responses to an overseas counter-
terrorism incident affecting Australia.

The department used some of the additional funding from the 2006–07 Budget
($35 million over four years) to work with regional governments, non-government
organisations and mainstream community groups to undertake a range of activities to
promote tolerance and mutual understanding among communities in our region, and to
counteract extremist ideology and propaganda.

We conducted regional research to enhance understanding of attitudes on issues such
as democracy, politically motivated violence and extremist ideology. We facilitated visits
by academics, journalists and community leaders to Australia and within the region. In
January and June 2007, we conducted media courses to promote balanced reporting on
terrorism and conflict issues. We also funded grassroots interfaith activities to strengthen
links between communities affected by conflict (see box on page 129).

Australia joined the newly established Global Initiative to Combat Nuclear Terrorism
in July 2006 as an initial partner country. In May 2007, we hosted the Asia-Pacific
Seminar on Combating Nuclear Terrorism, the first dedicated activity under the Global
Initiative’s work plan. The seminar raised awareness of the Global Initiative, identified
capacity-building opportunities, and helped build a network of regional experts.




      O U T P U T   1.1   securit Y, N uclear, disarmame Nt aN d N oN-proliferatio N        127 
The department developed and began implementing a strategy to counter international
bioterrorism. The strategy involves partners such as health and agriculture officials
in developing innovative ways to combat deliberate disease outbreaks. In May 2007,
we sponsored the participation of 12 technical experts from South-East Asia in a
bio-safety and biosecurity training workshop, which helped strengthen understanding about
the bioterrorism threat and the means to counter it.

The department led the MANPADS initiative, which seeks to improve international civilian
aviation security by encouraging regional countries to strengthen export controls and
stockpile management of MANPADS to prevent their illicit use by terrorists and other
non-state groups. We used our 2006 Chairmanship of the Vienna-based Wassenaar
Arrangement on Export Controls for Conventional Arms and Dual Use Goods and
Technologies to build support for action on MANPADS, particularly among Asia-Pacific
states. We also hosted or co-chaired several international MANPADS seminars, including
an information seminar in New York in January 2007 and an export controls seminar in
Singapore in June 2007. The department also contributed to progress in negotiations to
expand the Air Security Officer program, which helps protect flights to and from Australia.


   Sub-Regional Ministerial Conference on Counter-Terrorism

   The department coordinated Australia’s significant contribution to the Sub-Regional
   Ministerial Conference on Counter-Terrorism, co-hosted by Mr Downer and
   Indonesian Foreign Minister Wirajuda in Jakarta in March 2007.

   The Conference brought together foreign ministers, justice ministers, police chiefs
   and senior officials from the six countries most immediately affected by the threat
   from regional terrorist groups—Australia, Indonesia, the Philippines, Malaysia,
   Singapore and Thailand.

   The meeting built on the outcomes of the 2004 Bali Ministerial Meeting on
   Counter-Terrorism and focused on practical measures to further strengthen
   cooperation to counter-terrorism in the subregion.

   Outcomes included an agreement to follow up activities in the key areas of:
   • law enforcement and intelligence cooperation
   • countering extremism and radicalisation
   • responding to mass casualty terrorist incidents
   • addressing trafficking in small arms and light weapons
   • improving legal frameworks to counter terrorism.




1 28        D FAT  ANNUAL   REPORT   2006   –   2007
   Strengthening Grassroots Interfaith Dialogue and Understanding

   The Strengthening Grassroots Interfaith Dialogue and Understanding (SGIDU)
   program is a small grants scheme implemented through the Australian embassy in
   Manila to support peace-building activities by community groups and non-government




                                                                                                  S ECT I O N 2
   organisations at the grassroots level in the Philippines.

   The scheme focuses on activities that contribute directly to strengthening tolerance,
   mutual understanding and acceptance between communities of different faiths
   and promoting peace-building and anti-violence messages. It also emphasises
   practical and participatory activities, and many projects focus on mobilising women
   and youth.

   Seventeen projects are currently being implemented at a cost of approximately
   $200 000. Most of these projects are located in conflict-affected areas in
   central and western Mindanao, including the Zamboanga peninsula and the Sulu
   archipelago, with some in Metro Manila.



Addressing WMD threats: Nuclear non-proliferation and disarmament

The department worked to maintain the integrity of the nuclear non-proliferation regime
and address current proliferation challenges, particularly those posed by the nuclear
programs of the DPRK and Iran.

We contributed to the strong message sent to the DPRK following its October 2006
nuclear test, notably at the 2006 UN General Assembly where the Australian-led resolution
on the CTBT condemned the DPRK test. As a member of the IAEA Board of Governors, we
firmly supported efforts to secure Iran’s compliance with its NPT safeguards obligations.
We also supported United Nations Security Council targeted sanctions against the DPRK
in response to its missile and nuclear tests, and against Iran following its failure to
comply with Resolutions 1696, 1737 and 1747 which require the suspension of all Iran’s
uranium enrichment and reprocessing activities.

We participated constructively in the 2007 NPT Preparatory Committee meeting
for the 2010 NPT review conference. We continued to coordinate efforts to secure
further ratifications for entry into force of the CTBT, including through supporting
Mr Downer’s co-chairing of a ministerial-level meeting in New York in September 2006.
In the Conference on Disarmament, we helped identify key issues for possible future
negotiation of a fissile material cut-off treaty to ban the production of fissile material for
nuclear weapons. Differences in the Conference, however, continued to impede a start
to negotiations.

The department monitored developments in the United States–India nuclear cooperation
initiative, which the Government has welcomed as a positive step to bring India more
fully into the nuclear non-proliferation mainstream. We also participated in international




      OU T P U T   1.1   securit Y, Nuclear, disarmame N t a Nd NoN- proliferatio N        129 
dialogue on sensitive nuclear technology issues and monitored the development of various
international proposals to strengthen assurances relating to nuclear fuel supply. Australia
shares the non-proliferation goals underpinning a number of such proposals, and has
direct interests as a leading uranium supplier that requires its exports to be covered by
stringent safeguards. The department addressed these issues in its submission to the
Australian government’s Uranium Mining, Processing and Nuclear Energy Review.


Counter-proliferation and export controls

The department achieved increased awareness of and support for the PSI in the
Asia-Pacific as a practical means of stopping trafficking in WMD and related delivery
systems. We engaged non-PSI countries in the ARF, the PIF and in various seminars.
Jointly with the Department of Defence, we developed a PSI exercise training format to
improve operational capacity.

The department helped build non-proliferation capacity in the Asia-Pacific and provided
assistance on export controls through a range of seminars and workshops, including in
cooperation with Japan and the United States. We also supported implementation in the
region of United Nations Security Council Resolution 1540, which requires states to take
action to prevent WMD proliferation.

We coordinated Australia’s active role in the four major export control regimes—the
Australia Group, the Nuclear Suppliers Group, the Wassenaar Arrangement and the Missile
Technology Control Regime (MTCR). As Chair of the Australia Group (AG), we helped
ensure it remains a key forum for minimising the risk of relevant dual-use materials being
diverted to chemical or biological weapons programs. Australia co-hosted a seminar
on non-proliferation brokering controls in Seoul in March 2007, which helped catalyse
action on brokering in the AG. Outcomes from the 2007 Australia Group Plenary included
the strengthening of the Group’s Guidelines to include references to the activities
of illegitimate brokers in arms technology and intangible transfers of technology and
knowledge that might increase proliferation risks. The Plenary also welcomed Croatia as
the forty-first participant. We contributed to the 2007 Assessment Year of the Wassenaar
Arrangement by chairing the Task Force on Outreach, which acknowledged Australia’s
leading role on outreach as Plenary Chair of the Arrangement in 2006.

In the tenth year of the Chemical Weapons Convention (CWC), together with the Australian
Safeguards and Non-Proliferation Office (ASNO), we promoted the Convention in Australia
and overseas. Through seminars for Australian industry and academia, we strengthened
understanding of the requirements and prohibitions of the Convention and federal
legislation. We shared with Malaysia our experience in facilitating CWC inspections and,
with Japan and Indonesia, held a chemicals industry workshop on the critical role of
industry in implementing the Convention.

As chair of the Western Group in the sixth Review Conference of the Biological and Toxin
Weapons Convention (BWC), we helped secure measures to promote universalisation of
the treaty, enhance its management, and widen its relevance to encompass the emerging
threat of bioterrorism.




1 30        D FAT  ANNUAL   REPORT   2006   –   2007
The department worked with Australian agencies and NGOs to promote international
measures to minimise the impact on civilians of conventional weapons (see box below).
As President of the Meeting of States Parties to the Mine-Ban Convention, we helped
increase support for the Convention among Pacific states by sponsoring a workshop in
Vanuatu on issues relating to joining and implementing the Convention. We worked to
address concerns posed by cluster munitions that cause unacceptable harm to civilians in




                                                                                                  S ECT I O N 2
the Convention on Certain Conventional Weapons (CCW) forum and the Oslo Process.


   Australia’s contribution to negotiations on an Arms Trade Treaty

   Australia, along with Argentina, Costa Rica, Finland, Japan, Kenya, and the United
   Kingdom, co-authored UN General Assembly Resolution 61/86, titled ‘Towards
   an Arms Trade Treaty’. Passed by an overwhelming majority in December 2006,
   the Resolution was the first step in negotiating binding international rules for the
   responsible transfer of all conventional weapons.

   The Resolution called for all UN member states to submit views to the UN
   Secretary-General on the scope, feasibility and parameters of an Arms Trade Treaty.
   It also called for the UN Secretary-General to convene a group of experts to consider
   these issues, and to report to the General Assembly in 2008.

   Australia will continue to be active in this process. Australia considers that an
   Arms Trade Treaty should codify existing best practice, such as the Wassenaar
   Arrangement Guidelines, and include an obligation for states to deny transfers of
   conventional weapons in circumstances where the goods could breach international
   or regional embargoes, be used by criminals or terrorists, or be diverted to
   unauthorised users. An Arms Trade Treaty should also aim to prevent breaches of
   international humanitarian law, human rights abuse and a destabilising accumulation
   of arms.



Strategic policy and coordination

The department worked closely with the Department of Defence on a range of strategic
policy issues, particularly relating to the Australia–United States alliance, which is crucial
to our national security. We contributed to strengthened cooperation with the United
States in areas such as capability acquisitions, joint facilities and training, missile
defence, and peace operations capacity-building. We helped to finalise a bilateral MOU
on Production, Sustainment and Follow-on Development of the Joint Strike Fighter. The
MOU was adopted at the Australia–United States Ministerial Consultations (AUSMIN) in
Washington in December 2006.

In cooperation with the Department of Defence, we arranged for key foreign governments
to be briefed on significant defence policy announcements, including those covering major
capability acquisition and planning decisions. We provided regular input to inter-agency




       OU T P U T  1.1   securit Y, Nuclear, disarmame N t a Nd NoN- proliferatio N        131 
consideration of defence export control issues, including advice on the foreign policy
dimensions of specific export applications.


Security dialogue and cooperation

The department supported Mr Downer’s participation in the second Trilateral Strategic
Dialogue (TSD) ministerial meeting with the United States and Japan in Hanoi in November
2006. This followed a TSD senior officials’ meeting in New York in September 2006.
Through these meetings, and inter-sessionally, we took forward practical work with our
TSD partners on counter-terrorism, counter-proliferation, defence, maritime security,
humanitarian assistance and disaster relief issues. We also consulted on issues relating
to the DPRK and the Pacific.

We continued to promote Australia’s security interests through a program of bilateral
security dialogues with key partners in the Asia-Pacific region and beyond. In 2006–07,
we held such talks with China, the Republic of Korea, Japan, Singapore, the European
Union, the North Atlantic Treaty Organisation, the United Kingdom and Russia. We initiated
arrangements for the next round of talks with the United States, among others. These
talks help strengthen mutual understanding and build a platform for cooperation on
security issues of common concern.

The ASEAN Regional Forum (ARF), now in its fourteenth year, remains the region’s
primary and most inclusive forum for multilateral security dialogue and cooperation. The
department supported Mr Downer’s participation in the ARF ministerial meeting in Kuala
Lumpur in July 2006 where ministers agreed to enhance regional cooperation on disaster
management, emergency response and aspects of counter-terrorism. Consistent with the
Government’s objectives, at ARF officials’ meetings we helped sharpen the focus of ARF
work on counter-terrorism, arms control and WMD proliferation. We also ensured the ARF
maintained a firm line on the DPRK nuclear issue.

We continued to promote initiatives for the ARF to become more responsive and
practically-oriented, including through an active preventive diplomacy role. This will take
time to achieve. With the Department of Defence, we supported ARF work on civil–military
cooperation, including to deal with non-traditional security threats. To this end, Australia
co-chaired an ARF seminar in Hanoi in September 2006 on civil–military cooperation
to address pandemics and an ARF workshop in Bangkok in October 2006 on stockpile
security of MANPADS and other small arms and light weapons. We and Defence secured
strong support for Australia and Indonesia to co-host in 2008 an ARF desktop exercise on
civil–military responses to natural disasters.


National security

The department continued to make an important contribution to whole of government
approaches to domestic security issues and intelligence policy. We helped shape and
implement the national security agenda by supporting portfolio ministers’ participation
in meetings of the National Security Committee of Cabinet. We also participated in key




1 32        D FAT  ANNUAL   REPORT   2006   –   2007
strategic policy and security coordination bodies such as the Secretaries Committee on
National Security and the National Counter-Terrorism Committee. With a focus on the APEC
meeting in Sydney in September 2007, the department participated in national multi-
agency counter-terrorism exercises.

We worked closely with Australian intelligence agencies, including in monitoring terrorism




                                                                                                    S ECT I O N 2
and other threats to Australian citizens and interests overseas. We helped develop
targeted training courses for departmental staff to increase awareness of the role and
work of the Australian intelligence community. We also streamlined the internal handling
and accountability mechanisms for highly sensitive material.


Outlook

The department will look to build on the strong progress made to date with the United
States and Japan in advancing practical cooperation under TSD auspices, including in
defence areas. We will work to strengthen the security dimension of Australia’s alliance
with the United States, and our security relationships with other key partners, particularly
in the Asia-Pacific.

While there have been significant recent successes against terrorist groups within the
region, there is no room for complacency. In partnership with regional countries, our
counter-terrorism efforts must be sustained over the long term. The department will work
to strengthen further Australia’s international counter-terrorism engagement.

We will seek to implement agreements from the Sub-Regional Ministerial Conference on
Counter-Terrorism, including workshops on countering radicalisation, preventing the illicit
movement of small arms and light weapons, ratifying UN counter-terrorism conventions
and responding to mass casualty incidents.

We will build on the solid foundations established during the inaugural year of the
counter radicalisation program by continuing support for community outreach, interfaith,
and public diplomacy activities particularly in Indonesia and the Philippines. We will
continue to advance our international chemicals, biological, radiological and nuclear
counter-terrorism programs, including by increasing regional capacity to counter biological
terrorism. Our MANPADS program will focus on capacity-building in the Asia-Pacific region.

The preparatory process for the 2010 NPT review conference will remain a priority for
the department, with another Preparatory Committee Meeting in 2008. Australia will
offer to chair the MTCR Plenary in 2008 and continue to work for the strengthening of
WMD export controls. We will continue to work towards negotiation of an effective Arms
Trade Treaty.

We will continue efforts to encourage a more practically oriented ARF agenda, including
through initiatives such as the disaster relief desktop exercise that we will co-host with
Indonesia in 2008, as a prelude to the first ARF field exercise.




      O U T P U T   1.1   securit Y, N uclear, disarm ame Nt aN d N oN-proliferatio N        133 
Output 1.1 Quality and quantity information

Quality indicators


   • Satisfaction of portfolio ministers with the department’s policy advice, analysis,
     speeches and briefings, including the department’s contribution to the
     development of policies of other Australian Government agencies which have an
     international dimension

   • Satisfaction of portfolio ministers with the protection and advancement of
     Australia’s international interests, including the conduct and timeliness of
     bilateral and multilateral negotiations, effective advocacy and representations,
     post reporting and the organisation of official programs

   • Strong capacity to assess, analyse and advise on responses to
     international developments



Quantity indicators


   • Scope and composition of the DFAT-managed diplomatic network

   • Number of units of policy advice delivered, including ministerial and cabinet
     submissions, ministerial correspondence, and speeches and briefings including
     parliamentary briefings

   • Number of consultations conducted with other Australian Government agencies,
     state and territory governments, business and non-government organisations in
     the context of the department’s development of foreign and trade policy advice

   • Number of representations made to other governments and international
     organisations in support of Australia’s international interests

   • Number of international meetings or negotiations attended, including on behalf of
     other Australian Government agencies

   • Number of official programs prepared for portfolio ministers and senior officials

   • Number of official programs prepared for the Prime Minister, other Australian
     Government ministers and senior officials

   • Number of reporting cables produced by our overseas posts

   • Number of occasions on which the department has contributed to the
     development of policies by other Australian Government agencies

   • Number of Foreign Affairs Council and Trade Advisory Council meetings organised




1 3 4        D FAT  ANNUAL  REPORT   2006   –   2007
Provision of policy advice, analysis, speeches and briefings

The department received regular informal feedback on its performance through close
interaction with Portfolio Ministers and the Parliamentary Secretaries throughout the
year. Feedback was also received on: specific policy proposals submitted to Portfolio
Ministers for consideration—mainly in the form of written submissions and briefings;




                                                                                                    S ECT I O N 2
during Portfolio Ministers’ international visits; and directly from Portfolio Ministers’ offices.
The department interacted regularly with the Prime Minister and non-portfolio ministers on
foreign and trade policy issues.

In addition, the department received feedback through a number of formal consultative
mechanisms. The Senior Executive held policy discussions with Portfolio Ministers during
Parliamentary sitting weeks. Portfolio Ministers also met heads of mission at the start of,
mid-way through, and sometimes at the end of their postings.

Through these channels, Portfolio Ministers expressed satisfaction with the department’s
policy work, including our advice, analysis, speeches and briefings.

At department/agency level, we received feedback on our approach to international
issues through inter-departmental meetings in Australia and overseas. In our business
planning processes, such as the Post Evaluation Report process (see Section 3:
Corporate management and accountability, for more information), other government
agencies also provided positive feedback on the department’s role in whole of government
policy development.


Ministerial submissions and briefings

The department produced 2472 written submissions and 4040 briefings during the
reporting period. Portfolio Ministers expressed satisfaction with this policy advice
and analysis.


Ministerial correspondence

The department received and processed 10 405 items of ministerial correspondence in
2006–07. All responses were provided in the specified timeframe, which is one week for
draft replies for ministerial signature and two weeks for departmental replies.


Questions on notice

The department prepared written responses for ministers’ consideration to Questions on
Notice (QON) asked by parliamentary members and to questions taken on notice during
appearances by the department before parliamentary committees. The department
prepared responses to 324 QON during the reporting period.




                               O UTPUT  1.1   QualitY a Nd Qua Ntit Y i Nformatio N         135 
Protection and advancement of Australia’s international interests

In their regular meetings with the department’s Senior Executive and in written comments
on departmental submissions, Portfolio Ministers and the Parliamentary Secretaries
expressed satisfaction with the department’s efforts to promote the interests of Australia
and Australians internationally. Our performance reporting against Outcome 1 and the
Secretary’s Review highlight the breadth of issues against which outcomes were achieved.


Capacity to respond to international developments

The department’s performance reporting against Outcome 1 attests to our capacity to
respond quickly and effectively to significant international developments.

The department maintained flexible staffing arrangements that allowed quick responses
to priority or emerging issues. For example, we established crisis centres and emergency
call centres, as needed, to respond to overseas consular emergencies. We expanded the
number of staff trained in crisis management and/or who have worked in our crisis centre.
These staff were quickly re-deployed to line areas of the department once the surge in
activity subsided. We initiated an organisational restructure to improve the department’s
delivery of key policy, advocacy and service delivery outcomes (see Section 3: Corporate
management and accountability, for more information).




1 36        D FAT  ANNUAL   REPORT   2006   –   2007
Quantity information for output 1.1

Indicator                                                                                                   2006–07                   2005–06
Scope and composition of the DFAT-managed diplomatic network                                                See Appendix 13 (Summary
                                                                                                               of the overseas network)
Number of units of policy advice delivered:




                                                                                                                                                     S ECT I O N 2
     ministerial submissions                                                                                     2 472                     2 359
     Cabinet submissions                                                                                              19                       23
     ministerial correspondence                                                                                10 405                    11 363
     questions on notice                                                                                            324                       351
                   1
     speeches                                                                                                         77                      138
                                                 2
     briefings not under submission                                                                              4 040                     3 217
     Cabinet briefings for ministers                                                                                  65                       83
     meeting briefs                                                                                                 424                       357
Number of consultations conducted with other Australian
Government agencies, state and territory governments, business
and non-government organisations in the context of the
department’s development of foreign and trade policy advice3                                                   33 260                    33 777
Number of representations made to other governments
and international organisations in support of Australia’s
international interests4                                                                                       41 225                    40 357
Number of international meetings or negotiations attended,
including on behalf of other Australian Government agencies5                                                   11 251                    11 081
Number of official programs prepared for portfolio ministers and
senior officials6                                                                                                   682                       987
Number of official programs prepared for the Prime Minister, other
Australian Government ministers and senior officials6                                                               940                    1 077
Number of reporting cables produced by our overseas posts                                                    111 448                     99 587
Number of occasions on which the department has
contributed to the development of policies by other Australian
Government agencies                                                                                              6 853                     5 280
                                                                            7
Number of Foreign Affairs Council meetings organised                                                                    2                        2
Number of Trade Advisory Council meetings organised                                                                     1                        0
1 Includes speaking notes for both ministers, the parliamentary secretaries and the Senior Executive.
2 This figure includes daily consular briefings for ministers and senior officials.
3 This number includes semi-formal consultations such as telephone conversations and email correspondence.
4 This information was collected by all areas of the department, including overseas posts, and collated centrally. The difficulty in defining what
  constitutes a representation, given our different operating environments overseas, means that this figure is necessarily an approximate one.
5 This figure includes meetings with non-government organisations and business representatives.
6 This figure includes programs prepared for senior officials (broadband 4 level and equivalent and above).
7 Lists of members of the Foreign Affairs Council and Trade Advisory Council can be found on the department’s website at www.dfat.gov.au/fac
  and www.dfat.gov.au/trade/tac respectively.




                                                O UTPUT  1.1   Qual itY a Nd Qua Ntit Y i Nformatio N                                  137 
 OUTPUT 1.2:

 Secure government communications and security of overseas missions



Overview


   The department continued to monitor, maintain and improve security at Australia’s
   overseas missions in the face of a challenging security environment. We responded
   quickly to safeguard missions and staff in a number of potentially serious security
   situations. We implemented substantial new security measures at overseas posts.
   We completed the relocation of several chanceries and made preparations for
   relocating others. We strengthened the perimeters and buildings of a number
   of chanceries. The application of Australian standard security risk management
   methodology enabled us to better identify, prioritise and combat risks at our
   overseas missions. Our regular security assessments and inspections of overseas
   missions underpinned these measures.

   We ensured that staff involved in handling classified information were appropriately
   vetted and trained to maintain a high level of security awareness and vigilance. We
   updated the skills of our security managers and advisers. We continued to safeguard
   classified information through revised and enhanced technical and information
   security measures.

   The department significantly improved its ability to maintain communications with
   Australia’s overseas missions, beginning the rollout of major information and
   communications technology (ICT) asset replacement projects that will simplify and
   improve network operations in Australia and overseas. In addition, the development
   and progressive release over the next two years of the new Consular Assistance and
   Information System (CAIS) will significantly enhance the department’s ability to use
   ICT to support consular services in the field.



Managing security of overseas missions

The department’s employees are its most valuable resource and we continue to be
committed to ensuring the security of personnel, particularly those working in our overseas
missions. We implemented substantial new security measures at overseas posts as
part of the Government’s major security upgrade program announced in 2004–05. We
relocated our missions in Bali and Port Vila and assisted with the relocation of the
Australian Commerce and Industry Office in Taipei to new, more secure properties. We
are close to completing the fit-out of a new chancery in New Delhi. We finalised planning
for the relocation of a further 12 missions. Each new chancery has been built or fitted out
in line with the department’s blast and ballistic guidelines to afford staff and visitors the




1 38        D FAT  ANNUAL   REPORT   2006   –   2007
greatest possible protection from attack. Construction works to strengthen perimeter and
building security are under way at another six missions, including Baghdad, as part of an
ongoing program. Work commenced on our mission in Kabul, which is to be co-located
with the Netherlands embassy.

The department further improved its protection of overseas missions by installing




                                                                                                 S ECT I O N 2
anti-shatter window film at a number of chanceries and residences, and X-ray machines
in six additional missions this year, bringing to 22 the total number of X-ray screening
systems at posts. Closed-circuit television systems were upgraded at 14 missions.

Additional security measures were provided at staff residences in high-risk locations,
including Baghdad, Pretoria, Port Moresby and Jakarta. Thirty-two civilian armoured
vehicles were provided to high risk missions this year, bringing the total to 44.


Responsiveness to unexpected events

All staff, visitors and chanceries across Australia’s diplomatic network are protected by
a range of proactive security measures. The security countermeasures and procedures
we adhere to at our missions, especially at high-risk locations such as Dili, Baghdad and
Kabul, have successfully addressed and are designed to protect against a range of current
and anticipated threats.

The department attaches great importance to security contingency and scenario incident
planning. It is especially important at our missions in locations where there is potential
for events to have an adverse impact on our interests, such as in Beirut, Tel Aviv, Suva,
Colombo, Honiara and Harare. The department continued to work closely with mission
staff, commercial security providers and host government security agencies to ensure
the ongoing protection of our missions. This focus on security contingency and incident
planning helped ensure staff remained vigilant and ready to respond to security incidents
in a coordinated and measured way.

Emergency communications were upgraded at a range of posts. We provided posts with
improved bandwidth, backup capacity and alternative secure facilities to ensure the
continuity of reliable communications in case of threat.

The department also implemented revised risk management methodology that actively
involves missions and attached agencies in the assessment process. This methodology
examines all possible threats against missions, and assesses the likelihood and
consequences of those threats being realised to determine a level of residual risk. The
revised model enables us to better identify, document, prioritise and treat security risks at
our overseas missions.

A newly established Inter-Agency Overseas Security Forum for other Australian government
agencies represented at overseas missions has significantly enhanced cooperation and
coordination on security issues. The regular Forum meetings have promoted dialogue on a
range of issues, including the development of protocols for the use of armoured vehicles
and residential security standards.




                                   O UTPUT  1.2   commuN icatioN s a N d securit Y        139 
Protection of official and classified information

The department is continuing to focus on practical measures to improve communications
with partner agencies. This will enhance the Government’s ability to share classified
information. We have had significant technical involvement in the Secure Network
Gateway component of the Attorney-General’s Department’s project on government
communications, and have helped establish a pilot for secure email communication
between Attorney-General’s, ourselves and the Department of Defence.

The department handles a large amount of classified and sensitive information. We
continued to ensure that this information was protected against possible computer,
electronic and technical attacks. We revised a number of policies and procedures
concerning the protection of official information and ICT systems. The revisions
ensured our policies and procedures kept pace with evolving technological and threat
environments, were consistent with relevant government guidelines and were cost-
effective. We inspected ICT systems at five missions and carried out comprehensive
technical security inspections at 11 missions for compliance with departmental
information security standards.

We continued a program to provide high-security alarm systems at all overseas posts and
commenced a program to replace or refurbish safe speech facilities. A trial of a biometrics
access control system continued.


Security clearances

Government policy requires that staff handling classified information be vetted and
security-cleared to an appropriate level. During the year, the department granted
436 security clearances for new staff and renewed 271 security clearances for existing
staff. Overseas posts processed a further 74 initial clearances and renewals for locally
engaged staff. We recognised a further 118 security clearances issued by other agencies.


Security training

The department maintained a high level of security awareness and vigilance among staff
and continued to develop the specialist skills of security managers and advisers. A total
of 341 staff attended our regular introductory and refresher security awareness courses.
More detailed overseas security awareness training was provided to 1146 staff from
the department and 203 staff from other agencies prior to overseas postings. A total of
81 staff and their partners posted to higher-threat posts attended additional training in
defensive driving. We introduced new security courses for locally engaged staff and locally
employed security guards at overseas posts.




1 4 0        D FAT  ANNUAL  REPORT   2006   –   2007
                                                                                                                             S ECT I O N 2
Ensuring the safety of staff and visitors at our overseas posts is among our highest priorities. The guards at our embassy
in Phnom Penh are shown here on 20 March 2007 with Mr Garry McGill from HRD Consulting, and First Secretary
Ms Barbara Muzic, after graduating from the Guard Training course. The first training course was held in Singapore in
March 2007. The course will travel to a total of 63 of our overseas missions with the final course planned for May 2008.
Photo: Garry McGill




Information management and secure communications access

The department finalised the design and began the rollout of a major ICT software and
equipment upgrade. This involved a substantial redesign of elements of the Secure
Australian Telecommunications Information Network (SATIN) to meet the department’s
evolving business needs. The projects, which run over four years, will simplify and improve
network operations in Australia and overseas by standardising the user experience,
streamlining service and support and improving connectivity. The projects include an
upgrade of the department’s common applications and business systems, improvement
of the availability and reliability of the system to the user, and a reduction of the total
cost of the ICT system to the department. These benefits will enable the department to
move towards a fleet management approach, whereby its significant ICT assets will be
standardised and replaced on a cyclical basis. In turn, this will enhance transparency,
accountability and predictability in ICT budget and strategic planning.

During the year work began on: replacing routers (which give posts access to the
department’s global network); switches (which connect desktops to the SATIN network)
and telephone systems (PABX, voicemail and handsets) at nine posts; improving backup
communications at eleven posts; rolling out Windows XP to SATIN Low at 38 posts; and
replacing SATIN infrastructure at three posts.




                                                O UTPUT  1.2   commu Nicatio N s aN d securit Y                   141 
   P E R SO N Al P RO F IlE :
   Raymond Powell
   Manager, Official Diplomatic Information
   Network (ODIN) Administration Unit
   For 17 years, Ray Powell has been closely involved with the department’s formal
   messaging system. As the manager of the ODIN Administration Unit, he is
   responsible for managing the security and integrity of the Australian Government’s
   cable or message network.

   The department currently generates and receives some 15 000 cables per month
   on its SATIN Low and SATIN High networks. More than 185 000 cables were sent
   last financial year 2006–07.

   When Ray joined the department in 1990, cables had to be manually analysed and
   sent to post electronically via the IBM mainframe, a form of technology that was
   first introduced in 1973. Since then he has overseen the cable system through
   the introduction of the Australian Diplomatic Communications Network (ADCNET),
   the Secure Australian Telecommunications Information Network (SATIN) and, since
   2004, ODIN. Ray will also be part of the team responsible for the next major
   redevelopment of ODIN.

                                                        Ray joined the department in
                                                        1990 after a 21-year career in
                                                        the Royal Australian Navy.




                                                        Mr Raymond Powell, Manager Official
                                                        Diplomatic Information Network (ODIN)
                                                        Administrative Unit, in front of a display of
                                                        the department’s collection of historical
                                                        communications equipment.




1 42        D FAT  ANNUAL   REPORT   2006   –   2007
  Crisis Centre and the Consular Assistance and Information System (CAIS)

  The new Crisis Centre opened by Mr Downer in March gives the department a
  modern and sophisticated physical forum for managing consular emergencies and
  coordinating the Government’s response to overseas crises.




                                                                                                S ECT I O N 2
  The development and progressive release over the next two years of the new CAIS
  will significantly enhance the department’s ability to provide consular services
  in the field. This includes the deployment of new, portable equipment for use by
  Emergency Response Teams operating in remote locations. The new portable
  emergency response kits will range from the establishment of a ‘mini-post’ that
  can be readily transported and installed at remote sites, providing the full range
  of SATIN Low functions, to robust ‘tablet’ laptops that will allow consular staff to
  operate anywhere and have access to consular management systems through either
  local telecommunications systems or by satellite phone. It is expected that the first
  module of the CAIS application will be ready for use by February 2008.



Outlook

The international security environment is likely to remain challenging and unpredictable
in the year ahead. In conjunction with other agencies and like-minded governments, the
department’s focus will be to assure our capacity to anticipate risks posed by emerging
threats, maintain preparedness and to respond quickly and effectively to security
incidents. Our priority is to complete the program of additional security measures agreed
by the Government, and the security works associated with the significant number of
planned chancery relocations.

The department is focused on implementing major asset refresh projects, which involve
rolling out new equipment and infrastructure to improve the robustness of the global
network. We are working towards improving the alignment of the department’s ICT
capabilities with our core business requirements and continuing to enhance its capacity to
communicate with agencies operating overseas.

We will enhance the department’s client focus through the renegotiation of many
of its interagency memorandums of understanding and in further work to improve
communications with partner agencies. Building on last year’s enhancements to the
Official Diplomatic Information Network (ODIN) and in the context of the current program
of asset refresh projects, the department will redevelop the cable system to maximise
its accessibility to partner agencies and improve whole of government coordination and
service provision.




                                  O UTPUT  1.2   commu Nicatio N s aN d securit Y        143 
Output 1.2 Quality and quantity information

Quality indicators


   • Client satisfaction with the secure communications network and secure
     telecommunications infrastructure

   • Availability to clients, and reliability, of communications through the secure
     network (including cable delivery)

   • Client satisfaction with the level of physical security at overseas chanceries and
     residences, including responsiveness to unexpected events



Quantity indicators


   • Number of posts and Australian Government entities with access to the secure
     communications network and secure telecommunications infrastructure

   • Number of clients serviced, types of services provided and volume of
     traffic handled

   • Number of overseas missions for which security services are provided, including
     security review services

   • Number of security clearances and reviews processed



Client satisfaction—secure communications network and
telecommunications infrastructure

In September 2006, the department restructured its Information and Communications
Technology (ICT) branches and created the ICT Client Services Section (CSS) to strengthen
its focus on high-quality client relations. The section is responsible for managing the
provision of ICT services to all divisions, Ministers’ offices, posts, state offices and
partner agencies; and managing the ICT service desks—the Global Support Centre and
Voice Operations Unit. The CSS’s primary tasks are to be the first point of contact for
assistance with ICT faults and requests; manage the ICT memorandums of understanding
with 30 commonwealth agencies; deliver existing services, including the Secure Australian
Telecommunications Information Network (SATIN); deliver new services, such as
videoconferencing and BlackBerry devices; and manage the allocation of ICT equipment,
including laptops and mobile and satellite phones.




1 4 4        D FAT  ANNUAL  REPORT   2006   –   20 07
The growth of SATIN High

The number of staff from other government agencies using the SATIN High secure network
continues to grow. Users in Australia and overseas have increased by 20 per cent each
year since 2002. In Australia, there are now 26 partner agencies that access SATIN High
on 340 terminals at 33 destinations. At overseas missions, there are 512 non-DFAT users




                                                                                                 S ECT I O N 2
connected to SATIN High. The connectivity of SATIN High is expected to increase further
when a new gateway to other secure networks is brought online.

External feedback

Ministers and ministerial offices’ staff expressed their appreciation of our responsiveness
in dealing with ICT problems and the development of innovative solutions for remote
access communications.

Regular meetings with clients from other agencies provided constructive feedback on the
department’s level of service. A systems health check report, delivered in June 2007,
found that partner agencies were very positive about our level of service.

Internal feedback

Departmental committees, such as the Information and Communications Technology
Strategy Committee, the Technical Advisers’ Group and the Consultative Committee on
Information Management (CCIM), together with client surveys were effective mechanisms
for internal feedback. This feedback showed that ICT services effectively supported
staff in carrying out their duties in meeting the department’s objectives. It also showed
that user-friendliness had improved and the systems had facilitated more efficient work
practices. CCIM has been an effective forum for providing updates and user feedback on
the upgrade of the Min-Net program, used to provide ministerial submissions and meeting
briefs to Ministers and Cabinet.

Regional management and heads of mission meetings, post liaison visits, and divisional
and post evaluation processes all provided opportunities for staff at posts to provide
feedback on ICT systems and training.

The department’s ICT Global Support Centre help desk provides 24-hour first-level
telephone user support on issues related to the secure and non-secure ICT systems in
Australia and overseas. During the year, it provided services to 6600 departmental and
other Australian government agency users in Australia and overseas and in Ministers’
parliamentary and electoral offices. It received approximately 65 000 inquiries, mostly
relating to minor faults in hardware or software. Sixty-five per cent of inquiries were
resolved to the client’s satisfaction without the need for higher-level support. The
remaining inquiries were referred to second or third-level support teams for resolution.
The majority of problems reported to the help desk were resolved within 72 hours.




                            O UTPUT  1.2   Qualit Y aN d Qua N tit Y iN formatioN         145 
Availability and reliability of communications

The department began rolling out four major asset refresh projects during the year which
involve a substantial redesign of elements of SATIN to meet the department’s evolving
business needs and to simplify and improve network operations in Australia and at posts.
The projects include the router and switch replacement project, the server consolidation
project, the voice systems replacement project and SATIN post refresh. In addition to
completing the design of the projects, we replaced routers (which give posts access to the
department’s global network), switches (which connect desktops to the SATIN network)
and telephone systems (PABX, Voicemail and handsets) at nine posts; improved backup
communications at eleven posts; and rolled out a new SATIN Low operating system
(Windows XP) in Australia and at 38 posts. The department also developed a program of
capital funding for the next three financial years for the global rollout of the major asset
replacement projects.


Client satisfaction—security of overseas missions

Our services to posts included the provision of rapid advice on evolving security
situations, special security assessments and inspection advisory visits at short notice,
and enhancements to physical security. We ensured strict consistency between the advice
we gave to posts and to the Australian public through consular travel advisories. We kept
partner agencies informed of key developing security situations and our response to
them. Agencies expressed support for our consultative approach and implementation of
measures to mitigate security threats, including enhanced training.


Quantity information for output 1.2

Indicators                                                                                                  2006–07                   2005–06
Number of posts and Australian Government entities with
access to the secure communications network and secure
telecommunications infrastructure                                                                                   116                      134
                         1
Number of clients                                                                                                   116                      134
Types of services:
     Number of cables2                                                                                       187 690                   173 092
           cables to posts                                                                                     76 242                   73 505
           cables from posts                                                                                 111 448                    99 587
     Cable pages printed                                                                                     549 909                   839 879
Number of overseas missions for which security services are
provided, including security review services3                                                                         89                       88
Number of security clearances and reviews processed                                                                 899                    1043
1 This figure reflects the number of agencies and other external work units, including ministerial and parliamentary offices that receive paper or
  electronic copies of cables.
2 This figure reflects the total number of cables sent via the messaging system, ODIN, which automatically analyses and distributes cables
  electronically to clients.
3 This figure includes our overseas posts and other permanent overseas locations—see Appendix 13: Summary of the overseas network.




1 4 6        D FAT  ANNUAL   REPORT   2006   –   2007
 OUTPUT 1.3:

 Ser vices to other agencies in Australia and overseas (including Parliament,
 state representatives, business and other organisations)




                                                                                                S ECT I O N 2
1.3.1 PARLIAMENT IN AUSTRALIA


1.3.2 SERVICES TO ATTACHED AGENCIES


1.3.3 SERVICES TO BUSINESS


1.3.4 SERVICES TO STATE GOVERNMENTS AND OTHER AGENCIES
OVERSEAS AND IN AUSTRALIA


Overview


  The department provided high-quality and timely advice and assistance, including
  through our overseas posts, to parliamentary delegations, Australian government
  agencies overseas, Australian business and state and territory governments. These
  efforts helped advocate and advance our key foreign and trade policy goals to a
  range of important stakeholders and contributed to the achievement of whole of
  government outcomes.



Parliament in Australia

The department provided high levels of assistance to parliamentarians and ministers by
facilitating parliamentary travel, presenting information to parliamentary committees and
fulfilling our public accountability responsibilities.

Parliamentary travel

The department promoted relations between the Australian Parliament and those of
other countries by assisting with 111 overseas visit programs for individual federal
parliamentarians and parliamentary delegations. These visits fostered enhanced links
between parliamentary institutions and provided opportunities for parliamentarians to
study developments in a range of fields relevant to the Australian community.




                                    O UTPUT  1. 3   serVices to other age N cies         147 
We provided advice on in-country travel, identified and scheduled appointments with key
officials in specific fields of interest, and provided written and oral background briefings on
foreign and trade policy matters relevant to the visits.

Our work for the Parliament included facilitating the following parliamentary
delegation visits:

• Africa: Morocco and Algeria (August to September 2006)

• Asia: including visits to Indonesia (September 2006), Cambodia (April 2007) and a
  delegation to observe elections in East Timor in April 2007

• the Caribbean: Trinidad and Tobago (July 2006)

• Europe: including visits to Poland (July 2006), Portugal (October 2006), and Germany,
  Malta and Spain (April 2007)

• the Middle East: Saudi Arabia (June 2007)

• the Pacific: Fiji, the Cook Islands and New Zealand (November 2006)

• South America: Chile and Peru (November 2006)

• North America: the United States (July 2006)

• the ASEAN Inter-Parliamentary Organization (AIPO) General Assembly, Cebu, Philippines
  (September 2006)

• Inter-Parliamentary Union assemblies in Geneva, Switzerland (October 2006) and Bali,
  Indonesia (May 2007)

• the United Nations General Assembly, New York, USA (September to December 2006)

• the Asia Pacific Parliamentary Forum, Moscow, Russia (January 2007)

• Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT) Trade
  Sub-Committee visit to New Zealand (July 2006)

• Joint Standing Committee on Migration visit to New Zealand (August 2006)

• Senate Foreign Affairs, Defence and Trade Committee visit to the Republic of Korea
  and the United States (September 2006)

• JSCFADT Trade Sub-Committee visit to Mexico (April 2007).




1 48        D FAT  ANNUAL   REPORT   2006   –   2007
                                                                                                            S ECT I O N 2
Parliamentary delegation to Chile and Peru. Back row (L–R) Senator the Hon. Judith Troeth,
the Speaker the Hon. David Hawker MP, and Senator Mark Bishop, at the BHP-Billiton
majority owned Escondida mine site in Chile, 16 November 2006.



In addition to supporting visits by parliamentary delegations, the department assisted
66 federal parliamentarians undertaking study tours or attending conferences.

Incoming delegations
The department assisted with 36 visits to Australia by parliamentary delegations from
other countries. We also provided timely country briefs and talking points to the Presiding
Officers for their use in meetings with visiting parliamentarians.

Parliamentary committees

The department briefed and appeared before a range of parliamentary committees as
outlined in Appendix 5.

We answered 219 questions submitted in writing or taken on notice during Estimates
hearings, which contained 654 individual sub-questions. This represented a 26.6 per cent
increase over the number of questions answered in the previous reporting period.




                                                 O UTPUT  1. 3  s erVices to other age N cies        149 
Questions on notice

The department assisted portfolio ministers prepare accurate and timely responses to
324 written parliamentary Questions on Notice (also known as Questions in Writing).
Of these, 251 were received from the House of Representatives and 73 were received
from the Senate.

Ministerial submissions and briefing

The department strengthened its capacity to provide high-quality policy advice and
briefings for portfolio ministers through further enhancements to the Min-Net ministerial
work flow system. During the reporting period, the department produced 2472 ministerial
submissions, 424 meeting briefs, 65 cabinet briefs and 19 cabinet submissions.

Ministerial correspondence

The department received and processed 10 405 ministerial letters in 2006–07. Through
the provision of high-quality, timely and accurate responses to ministerial correspondence,
the department assisted portfolio ministers deliver key messages to the Australian
community regarding Government policy on foreign and trade related matters. All
responses were provided within the specified timeframe, unless otherwise agreed by
ministers’ offices. The department’s Senior Executive closely monitored performance in
this area by reviewing a monthly report that detailed the timeliness of responses, the
quality of drafting and identified issues of public interest.


Services to attached agencies

Under the Service Level Agreement (SLA) signed on 1 September 2004, the department
provides management services, on a user-pays basis, to 24 government departments
and agencies with overseas representation. The services include financial, personnel
and property management services for Australia-based employees and locally engaged
staff in department-managed overseas posts. In accordance with the 2007 Prime
Minister’s Directive on the Guidelines for Management of the Australian Government
Presence Overseas, the SLA facilitates the efficient administration of Government
business overseas. Feedback from our SLA clients has been positive. Under separate
memorandums of understanding we also provide information and communications
technology services to 31 agencies in Australia and overseas, and payroll services to
12 agencies overseas.


Services to business

The department manages a number of formal and informal mechanisms to enhance
opportunities for business to have input into the development of trade policy. We
undertook extensive public consultations with industry representatives, state and territory
governments, non-government organisations and community groups seeking views on the




1 5 0        D FAT  ANNUAL   REPORT   2006   –   2007
Government’s World Trade Organization and regional and bilateral free trade agreement
negotiations. The formation of the Trade Advisory Council (TAC) during the year provided a
further avenue for business to interact directly with the Trade Minister on the international
trade and investment environment.

Market information and analysis




                                                                                                  S ECT I O N 2
The department continued to offer a consultancy service providing statistical information
and advice, on a fee-for-service basis, to Australian businesses and researchers
interested in overseas markets. The service specialises in trade and economic data on
Australia’s trading and business relationships with over 220 countries, as well as wider
information on the global trade of over 100 countries (accounting for around 90 per cent
of total world trade). The department produced a wide range of statistical publications
covering the composition and direction of Australia’s international trade in goods and
services, all now available online.

Our network of state and territory offices

Through its network of offices located in all states and the Northern Territory, the
department continued to cultivate a close relationship with state and territory
governments, providing them with a direct liaison point on foreign and trade policy
issues. In 2006–07, the state and territory offices extended their close relationship
with governments in their capital cities and coordinated the department’s activities in
the states and Northern Territory. In consultation with the department in Canberra and
overseas posts, they assisted state premiers and ministers with a number of overseas
visit programs.


Services to state governments and other agencies overseas and in Australia

The department played a significant role supporting visits overseas by state and territory
ministers, parliamentarians and officials, as well as other Australian government officials
and federal ministers. By promoting business, tourism, education and people-to-people
ties, the department’s support for these visits strengthened Australia’s relationships with
key regional partners. Examples include visits to:

• China by the Northern Territory Minister for Primary Industries (November 2006); the
  Australian Capital Territory Chief Minister (May 2007); the New South Wales Minister
  for Housing and Tourism (May 2007); the Western Australian Premier (June 2007);
  the New South Wales Minister for Primary Industries, Energy, Minerals Resources and
  State Development (June 2007)

• Japan by the New South Wales Minister for Primary Industries, Energy, Minerals
  Resources and State Development (June 2007); the Queensland Deputy Premier
  (June 2007)




                                      O UTPUT  1. 3   serV ices to other age N cies        151 
• Singapore by the Northern Territory Minister for Business and Regional Development
  (December 2006); the Tasmanian Minister for Education (May 2007)

• South Korea by the Premier of Queensland (May 2007)

• Europe by the Premier of Queensland (November 2006); the Tasmanian Deputy
  Premier (May 2007); the Queensland Deputy Premier (June 2007)

• United Kingdom by the Premier of Queensland (November 2006 and March 2007);
  the South Australian Minister for Mineral Resources (February–March 2007);
  the Queensland Minister for Transport and Main Roads (March–April 2007); the
  Queensland Deputy Premier (June 2007)

• United States by the South Australian Minister for Mineral Resources (February–
  March 2007); Premier of Queensland (May 2007); the Queensland Deputy Premier
  (June 2007)

• Middle East by the Western Australian Minister for Agriculture, Food and Forestry
  (October 2006); the Premier of Queensland (November 2006); the South Australian
  Deputy Premier (November 2006)

• Russia by the Queensland Minister for Transport and Main Roads (March–April 2007)

• Chile by the South Australian Minister for Mineral Resources (February–March 2007);
  the South Australian Premier (April 2007); the Tasmanian Deputy Premier (May 2007).

Reflecting the importance of whole of government coordination and action in advancing
Australian foreign and trade policy interests, the department provided briefings, policy
advice and other support for a wide range of Australian government agencies on
international aspects of their work. The nature of the assistance provided varied greatly,
but included the department arranging visit programs for officials from other agencies,
and participating in negotiations on bilateral agreements and providing representation at
international meetings on behalf of other government agencies. We worked closely with a
range of Australian agencies in relation to:

• international security, by facilitating the inaugural joint foreign and defence ministerial
  talks with the United Kingdom in December 2006 and joint foreign and defence
  ministerial consultations with Japan in June 2007

• counter-terrorism, in preparation for the Sub-Regional Ministerial Meeting on Counter-
  Terrorism, a joint initiative of the Indonesian and Australian governments, held in
  Jakarta from 4–6 March 2007

• trade liberalisation, by negotiating free trade agreements that will open markets
  for Australian business and investment and reduce trade barriers with Japan and
  continued negotiations with China, Malaysia and ASEAN countries with New Zealand

• crisis response, by coordinating Australia’s largest-ever consular evacuation, assisting
  the departure of over 5160 citizens, permanent residents and their immediate
  dependants from Lebanon




1 52        D FAT  ANNUAL   REPORT   2006   –   2007
• climate change, by leading efforts to develop practical ways of addressing climate
  change in the region, primarily through the Asia Pacific Partnership on Clean
  Development and Climate

• the Pacific, by continuing to manage Australia’s whole of government contribution to
  the Regional Assistance Mission to Solomon Islands.




                                                                                               S ECT I O N 2
The department continued to work in partnership with Austrade in Australia and overseas
to implement the Government’s trade policy and trade development imperatives. It
assisted Austrade with its trade promotion and facilitation roles by: providing high-level
representations to governments on behalf of business; liaising closely on arrangements
for heads of mission and senior trade commissioner public consultation programs; and
joint badging of public diplomacy activities involving both agencies.

Austrade’s governance arrangements changed on 1 July 2006 in accordance with the
Review of the Corporate Governance of Statutory Authorities and Office Holders (Uhrig
Review). The department worked closely with Austrade to implement its change from a
board to an executive management governance structure. It also worked closely with the
Australian Centre for International Agricultural Research (ACIAR).


Outlook

The department will continue to provide high-level service to parliamentarians, state
governments and other government organisations in delivering whole of government
outcomes across our foreign and trade policy interests. We will manage parliamentary and
public interest in our work through efficient handling of parliamentary Questions on Notice
and ministerial correspondence.

The department will also continue to seek advice from business and provide opportunities
for industry input into Australia’s trade negotiating agenda, and in cooperation with other
agencies, including Austrade, advocate on behalf of Australian business and exporters
at the multilateral, regional and bilateral levels, and keep them abreast of relevant trade
policy developments.




                                    O UTPUT  1. 3  s erVices to other age N cies        153 
Output 1.3 Quality and quantity information

Quality indicators


   • Client satisfaction with briefing, administrative, visit facilitation, communications
     and other services provided



Quantity indicators


   • Scope and composition of administrative services provided to other
     agencies overseas

   • Number of official programs organised for members of the Australian Parliament
     (excluding the Prime Minister or ministers) and parliamentary delegations

   • Number of services provided to parliamentary committees

   • Number of overseas visits by representatives of state or territory governments,
     and by state and territory parliamentarians, supported by the department

   • Number of Australian companies supported by the department with advice
     on market conditions, access to government and private sector contacts, and
     through representations directly connected with their particular interests



Services to clients

Our annual Post Evaluation Report (PER) process is the principal means for the
department to obtain feedback on our work from other agencies. In 2006–07 the PER
process again showed a high level of satisfaction in the department’s input to achieving
whole of government objectives (see Section 3: Corporate Management and Accountability,
for more information).

Many federal and state parliamentarians commended the department for the briefings,
programs and logistics support we provided for their overseas visits. The Speaker of
the House of Representatives wrote on several occasions to Mr Downer complimenting
the department and its officers serving overseas on the quality of their facilitation of
parliamentary visits to Germany, Canada, Russia, Kenya, the United Kingdom, Chile and
Peru. The President of the Senate also commended the department for the assistance he
received for an official visit to Cambodia and Vietnam.




1 5 4        D FAT  ANNUAL   REPORT   2006   –   2007
Services to other agencies

Under the Service Level Agreement (SLA) signed on 1 September 2004, the department
provided management services to 24 Australian government agencies overseas in
2006–07 (see Appendix 8 for more information). Under separate arrangements the
department provided payroll services to 12 agencies overseas. Feedback from relevant




                                                                                                                                                   S ECT I O N 2
clients has been very positive.


Quantity information for output 1.3

Indicator                                                                                                 2006–07                   2005–06
Scope and composition of administrative services provided to other
agencies overseas1                                                                                                  24                       26
Number of official programs organised for members of the
Australian Parliament (excluding the Prime Minister or ministers)
and parliamentary delegations2                                                                                    111                      117
                                                                                3
Number of services provided to parliamentary committees                                                             91                       68
Number of overseas visits by representatives of state or territory
governments, and by state and territory parliamentarians,
supported by the department4                                                                                      532                      645
Number of Australian companies supported by the department with
advice on market conditions, access to government and private
sector contacts, and through representations directly connected
with their particular interests5                                                                                7247                     7108
1 This is the number of agencies serviced under the Service Level Agreement. The services provided under the agreement are grouped together
  in six categories: personnel services (Australia-based staff), personnel services (locally engaged staff), office services, property services,
  financial services and communications.
2 This figure is based on work undertaken by each post; that is, it reflects the number of programs organised on a country-by-country basis,
  rather than the number of Members of Parliament and Senators assisted by the department in Canberra.
3 This figure reflects the number of committee hearings before which the department appeared.
4 This figure is based on work undertaken by each post; that is, it reflects the number of programs organised on a country-by-country basis.
5 This information was collected by all areas of the department, including overseas posts, and collated centrally. It reflects the number of
  companies supported on a country-by-country basis.




                                             O UTPUT  1. 3   Qualit Y aN d Qua N tit Y iN formatioN                                 155 
 O U T P U T 1 .4:

 Ser vices to diplomatic and consular representatives in Australia



1.4.1 SERVICES TO DIPLOMATIC AND CONSULAR CORPS


1.4.2 PROVISION OF PROTECTION ADVICE THROUGH LIAISON WITH
THE PROTECTIVE SECURITY COORDINATION CENTRE


Overview


   The diplomatic and consular corps in Australia continues to grow, with the expansion
   of many existing missions and posts and the establishment of others. There are now
   more than 4500 foreign officials and their dependants in Australia. The department
   accords high priority to ensuring that Australia meets its obligations under the
   Vienna Convention on Diplomatic Relations and the Vienna Convention on Consular
   Relations, which codify international practice in relation to diplomatic privileges and
   immunities. We continued to work closely with the Protective Security Coordination
   Centre to protect the security and dignity of missions and their staff.
   The department provided timely, targeted and professional services to facilitate the
   work of diplomatic and consular representatives and to address issues of concern
   to individual missions and posts. We managed ceremonial and representational
   functions for the corps and supported other government agencies in their liaison
   with foreign missions and posts.
   At the close of the reporting year, the department provided services to
   91 diplomatic missions resident in Canberra, 29 non-resident diplomatic missions
   and 332 consular posts representing 147 countries in total, and 12 international
   organisations. We facilitated the establishment in Canberra of the new Nepalese
   embassy in March 2007, the transfer of the United Nations Information Centre
   from Sydney to Canberra and the establishment of new offices by the European
   Investment Bank and the International Development Law Organization.
   In consultation with law enforcement agencies, the department continued to send
   a strong message that abuses of privileges and immunities were unacceptable and
   that contravention of Australian law, including speeding and drink driving, would
   not be tolerated. Consistent with international conventions, the department took
   effective action against the small number of breaches that occurred, and managed
   several sensitive cases relating to incidents involving diplomatic and consular
   officials and members of their families. As a result of the department’s intervention,
   a large portion of accumulated unpaid fines resulting from traffic and parking
   infringements by foreign officials were paid.




1 5 6        D FAT  ANNUAL   REPORT   2006   –   2007
Engagement with the diplomatic and consular corps

The department organised a successful visit by the diplomatic corps to South Australia
in May 2007. The visit was led by Mr Downer and showcased the state’s booming mining
sector and specialist defence industries and provided opportunities for interaction with
local political, academic and business figures.




                                                                                                S ECT I O N 2
The ministers’ 2006 mid-year function for the diplomatic corps was marked by the
inaugural Sir Alan Westerman lecture on Australian trade policy, delivered by the then
Minister for Trade, Mr Vaile. The Secretary hosted the traditional Christmas function in
honour of the corps. He also held a reception for the Canberra Diplomatic Club, a group
that encourages contact between junior and middle ranking diplomats and officers of
the department.


Protection of diplomatic and consular missions

The department continued to accord a very high priority to protecting the security and
dignity of foreign diplomatic and consular representatives in Australia, consistent with
international law and practice. The protocol duty officer provided a 24-hour service to
assist missions with issues that arose outside normal working hours.

Demands from diplomatic and consular missions for additional security continued to
increase during the year, reflecting ongoing concerns about the international security
environment. The department worked with agencies with primary responsibility for
protecting foreign missions and their staff to provide high-quality and timely assistance
with these issues. We played a central role in ensuring that foreign heads of state or
heads of government and other senior official visitors were provided with appropriate
security. In preparation for the increased visitor numbers associated with APEC 2007
meetings, the department, in conjunction with other agencies, developed and implemented
an improved visitor assessment ratings scheme to assist in determining security and
protection resource requirements.


Services to the diplomatic and consular corps

The department’s protocol services continued to receive positive feedback from the corps.
The efficiency of visa and accreditation processing and arrangements for new heads of
mission were particularly appreciated (see box on page 159).

The department’s protocol guidelines, available online, provided a ready reference for
the corps on Australian protocol policies and practice. We organised several briefings
for the diplomatic corps on procedural and policy matters. A presentation for spouses
on community issues, including children’s education, opportunities for volunteer work in
Canberra and health and safety risks associated with the Australian environment, was
very well received. Briefings were also held for the consular corps in Sydney, Melbourne
and Hobart.




      O U T P U T  1.4   serV ices to diplomatic a Nd coN sular represe NtatiV es        157 
The department maintained dialogue with a range of federal and state government
agencies on issues affecting the corps. In addition to the Protective Security Coordination
Centre within the Attorney-General’s Department, the Australian Federal Police and
other police forces, these included the Department of Immigration and Citizenship, the
National Capital Authority, the Australian Customs Service, the Australian Quarantine and
Inspection Service, the Department of Transport and Regional Services, airport managers
and motor vehicle registries.

The size of the diplomatic corps continues to grow, reflecting Australia’s increased
presence and profile in world affairs. The department worked with the National
Capital Authority to develop options for possible land sites to be made available for
diplomatic missions.




Ambassador of the Republic of Mali, Her Excellency Madame Maimouna Dial Guisse (seated third from left), after presenting
her Letter of Credence to the Governor-General, His Excellency Major General Michael Jeffery AC, CVO, MC (seated third
from right), 23 August 2006. Also pictured are the Secretary, Mr Michael L’Estrange AO (seated far right), and the Chief of
Protocol, Ms Lyndall McLean AM (seated far left).
Photo: Michael Jensen




1 58        D FAT  ANNUAL   REPORT   2006   –   2007
   Arrival of new heads of mission in Australia

   Twenty-six heads of mission were accredited to Australia in 2006–07. Of these,
   24 presented credentials to the Governor-General in nine ceremonies held
   throughout the year. Presentation of credentials occurs in the order in which a new




                                                                                                S ECT I O N 2
   head of mission arrives in Canberra.

   A minority of heads of mission who represent countries where the Queen is the
   head of state present letters of introduction to the Prime Minister rather than letters
   of credence to the Governor-General, and take up their functions and assume
   precedence from the date of their first arrival in Canberra. In 2006–07, the high
   commissioners for New Zealand and Solomon Islands were accredited in this way.

   Seven of the 26 new heads of mission reside in cities outside Australia, including
   Tokyo, Beijing, Jakarta and London. Typically, non-resident heads of mission spend
   several days in Australia when they come to present credentials. The department
   organises introductory programs to enable them to meet senior officials as well as
   business, academic and community representatives.

   The heads of mission accredited in the course of the year represented all regions
   of the world, including ambassadors from Greece and Ireland, the United States,
   China and the Democratic People’s Republic of Korea, Kuwait, Qatar and Iran,
   Mali, Rwanda and Eritrea, Brazil and Colombia and high commissioners from Malta,
   Brunei, Bangladesh and Pakistan.


The department continued to work on arrangements for tax concessions and permission
for dependants to work, with bilateral reciprocity being a key principle in all negotiations.
New dependants’ working arrangements with Germany and Belgium came into effect and
signature of an agreement with Croatia is imminent.




      O U T P U T  1.4   serV ices to diplomatic a Nd coN sular represe NtatiV es        159 
Visit by the Minister for Foreign Affairs, Mr Alexander Downer, and heads of missions from the diplomatic corps to the
Defence Science and Technology Organisation, South Australia, May 2007.
Photo: Peter Hoare




Outlook

In accordance with Australia’s obligations under the Vienna Conventions on Diplomatic and
Consular Relations, the department will continue to provide high-quality and timely service
to the diplomatic corps and protect the security and dignity of foreign missions and their
staff in Australia. We will seek to further enhance current processes and procedures
to enable us to improve delivery of our services, expand outreach to members of the
corps and their dependants, and to strengthen protections afforded to high-level visitors,
especially in the lead-up to and during Australia’s hosting of APEC 2007. We will continue
to expand the network of bilateral arrangements for the employment of dependants
of diplomats.




1 6 0        D FAT  ANNUAL   REPORT   2006   –   2007
Output 1.4 Quality and quantity information

Quality indicators




                                                                                                  S ECT I O N 2
  • Client satisfaction with the provision of services to diplomatic and
    consular representatives



Quantity indicators


  • Number of diplomatic and consular representatives for whom the department
    provides services

  • Number and category of services provided



Provision of services

The efficiency and professionalism of protocol services provided by the department
continued to attract positive feedback from the diplomatic and consular corps. Our prompt
handling of visa and accreditation matters, responsiveness to posts’ security concerns,
and implementation of tax concession and vehicle purchase and registration arrangements
were particularly appreciated. Support and assistance in post opening procedures were
welcomed by officials charged with establishing new embassies or consular posts. New
heads of mission, both Canberra-based and non-resident, expressed satisfaction with
the arrangements made by the department for their presentation of credentials and
introductory calls. The volume and range of inquiries received from foreign missions
and posts reflected the corps’ confidence in the department’s capacities. The 2007
familiarisation visit to South Australia drew much favourable comment from participating
heads of mission and spouses. Briefings and other functions organised for the corps,
particularly those in state capitals, were also well attended and received.




                             O UTPUT  1.4  Qualit Y a N d Qua Ntit Y i Nformatio N         161 
Quantity information for output 1.4

Indicator                                                                                                2006–07                  2005–06
Number of diplomatic representatives for whom the department
provides services                                                                                                906                         917
Number of consular representatives for whom the department
provides services1                                                                                               853                         854
Number and category of services provided:
     visas issued to corps members                                                                             2082                     2095
     visas issued to corps domestic employees                                                                    109                         113
     arrivals and departures processed                                                                         1536                     1567
     identity cards issued                                                                                     1109                     1153
     presentations of credentials                                                                                 26                         38
     exequaturs issued                                                                                            32                         22
     facilitation of purchase, registration and disposal of cars by
     privileged personnel                                                                                      1423                     1573
     requests processed for dependants seeking permission to work                                                 88                         91
     requests processed for foreign awards to Australian citizens                                                 82                         65
     approvals for new foreign missions in Australia (includes
     diplomatic missions, consular posts and offices of
     international organisations)                                                                                 13                          9
     approvals for defence advisers/attaches                                                                      14                         11
1 If representatives’ dependants are added to this figure and the figure above, the total number of people to whom we provided services in
  2006–07 was 4556.




1 62        D FAT  ANNUAL   REPORT   2006   –   2007
Administered items for Outcome 1

Contributions to international organisations




                                                                                             S ECT I O N 2
Quality indicator


  • Efficiency and timeliness of administration of contributions paid in accordance
    with the requirements of relevant organisations



Quantity indicator


  • Number of international organisations to which Australia contributes


The department made payments totalling $201 090 000. The payments consisted
of $98 282 000 to 27 international organisations, including the United Nations, and
$102 808 000 to 14 United Nations peacekeeping operations.


Quantity information

In 2006–07, the department paid Australia’s contributions to 27 international
organisations and 14 individual United Nations peacekeeping operations. A complete
listing of these international organisations is at Appendix 10.


Export Finance and Insurance Corporation (EFIC)
National Interest Account


Quality indicator


  • National interest payments and receipts managed in accordance with the
    national interest provisions of the Export Finance and Insurance Corporation
    Act 1991




                                             OUTcOmE  1  a dmi Nistered items         163 
Quantity indicator


   • Value of exports supported on EFIC’s National Interest Account; value of claims
     paid on National Interest Account business


The department managed, in accordance with the national interest provisions of the
Export Finance and Insurance Corporation Act 1991, whole of government coordination
of National Interest Account transactions. This process involves assessing the risks
and benefits of proposed transactions in consultation with other departments and EFIC.
The value of exports supported on the National Interest Account in 2006–07 increased
compared with the previous year, primarily due to an increase in the volume of signings
on the National Interest Account. Further information may be obtained from EFIC’s own
annual report. The department managed efficiently national interest payments and
receipts involving EFIC and the Commonwealth.


Quantity information

Value of exports supported on EFIC’s National Interest Account                 $46 200 000
Value of claims paid on National Interest Account business                     $14 900 000



Compensation for detriment caused by defective administration


Quality indicator


   • Efficiency and timeliness of case management, where necessary



Quantity indicator


   • Where necessary, number of cases successfully managed


Four cases were lodged under the compensation scheme for detriment caused by
defective administration. Two cases, one from the previous financial year, were resolved,
resulting in two payments made from administered funds. Four cases, one from the
previous financial year, remained in progress at the end of the financial year. See also
Section 3: Corporate Management and Accountability on page 263.




1 6 4        D FAT  ANNUAL   REPORT   2006   –   2007
                                                S ECT I O N 2




OUTcOmE  1  a dmi Nistered items         165 

								
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