Excellency, German Foreign Minister Maas has spoken of Australia as a likeminded partner in the alliance of multilateralists. What are key aspects of the bilateral relationship you would like to highlight?
The bilateral relationship has grown substantially stronger ever since Chancellor Merkel visited Australia for the G20 Summit in 2014. During her visit, she and the Australian Prime Minister set up an Australia-Germany Advisory Group (AGAG), which reported back to leaders in 2015 with a wide range of practical and strategic recommendations to deepen the bilateral relationship. The recommendations spanned five key areas: trade and investment; strategic dialogue and collaboration; science and education; exchange on diversity, migration, integration and refugees; and cultural and sporting links.
You asked me about some key aspects of the bilateral relationship, here are a few highlights of recent projects: On strategic dialogue, we held our first “2+2 Australia Germany Foreign and Defence Ministers” meeting in September 2016 and are looking forward to holding the next one early next year. In November 2018, I launched the “Australia-Germany Research Network” at our embassy here in Berlin to build on the many strong connections between Australian and German universities and research institutions.
Last year we had a year-long cultural promotion called “Australia Now”, which modernised German perceptions of Australian culture through film, dance, music, and the graphic arts.
On trade and investment, at the Asia Pacific Conference of German Business in Jakarta in November 2018, Australia’s Finance Minister signed a MoU with German Economics Minister Peter Altmaier to establish a Joint Economic Commission. Germany is already Australia’s 10th largest trading partner: this will make our business relations even stronger.
We have also established a bilateral Energy Working Group. German companies have recently won two major contracts for offshore patrol vessels and light armoured vehicles for the Australian Defence Forces. And I’m really proud of the Australian Government Landing Pad in Berlin which supports start ups expanding into the German market.
In foreign policy, Australia’s strategic orientation is focused in the Indo-Pacific region, but Australia is also diversifying and strengthening global partnerships. Which are your most important relationships?
The Australian Government released its most recent Foreign Policy White Paper in November 2017. It made clear that Australia will work actively with likeminded partners in the Indo-Pacific and around the world, including in Europe, to strengthen the rules-based liberal democratic world order.
The Indo-Pacific is Australia’s neighbourhood. Our major trading partners – apart from the European Union which is our second largest trading partner – are in our region: China, South Korea, and Japan. We recently signed a trilateral MoU with Japan and the United States that further solidifies our infrastructure investment in the Pacific region. We have FTAs with most nations in the Indo-Pacific. We belong to the ASEAN East Asia Summit, APEC and the Pacific Islands Forum. Australia was ASEAN’s very first dialogue partner, and hosted an ASEAN-Australia Summit in Sydney earlier this year. We are truly integrated in our part of the world.
But at the same time, we have an alliance with the United States, and deep ties to Europe. Our historical ties with the United Kingdom are well known, but we have long-standing links with other European countries as well. For example, the German migration story in Australia is a strong one, and it’s a little-known fact that Germans were the third largest migrant community in Australia in the early to mid-20th century.
We are an active supporter of global multilateral institutions including the United Nations, of which we were a founding member. When we participated in the negotiation of the UN Charter, our foreign policy was, and continues to be, underpinned by principles of peace and security. In the contemporary context, our Foreign Policy White Paper makes clear that these values remain a core underpinning of our international relationships.
What is the Australian government doing to diversify the economy?
Many people are surprised to hear that the Australian economy is already very diverse. Our economy is now overwhelmingly based on services, which make up over 70 per cent of our economy. Last year, tourism and international students contributed a combined 150 billion Australian Dollars ($) to our economy. Our traditional trade in resources is now only 10 per cent of the Australian economy.
We are conscious that mining exports will moderate in future years, so our longer-term policies are designed to prepare us for this shift. This year and next, we expect service exports to grow by 4 per cent, which demonstrates the ongoing diversification of the Australian economy.
Another area of the economy that continues to grow strongly is digital trade. Our digital exports, for example, now make up Australia’s fourth largest export sector. They are estimated to be worth $6 billion a year. A report launched by our Trade and Investment Minister Simon Birmingham in October 2018 noted that growth of Australia’s digital exports is projected at 210 per cent to $19 billion by 2030. Such new areas of trade – enabled by digitalisation – will require new and innovative policy approaches.
Following the difficult negotiations between the EU and the US over a possible free trade agreement, the EU is now exploring new trade partnerships. In May this year, the EU agreed on the mandate for negotiations on a free trade agreement with Australia. What are the realistic prospects for its implementation?
We were delighted to see the EU and Australia formally launch FTA negotiations in July this year. The first round of negotiations went very well and laid the groundwork for future progress.
The EU and Australia are strong, like-minded partners and the FTA negotiations will lead to substantial benefits on both sides and better access to each other’s markets. The FTA demonstrated our shared commitment to the rules-based international trading system. The EU and Australia already have a close trading relationship with €47.7 billion in two-way goods, and another €27.1 billion in services trade in 2017.
A high quality FTA would be mutually beneficial and demonstrates our shared commitment to the rule of law, global institutions and free and open markets.
The Australian economy has been growing continuously for more than 27 consecutive years, holding the world record for more than 100 quarters of growth without a technical recession. The Australian government has proposed reducing corporate tax to promote jobs and wage growth. What is the current status?
We are proud of our strong record of economic growth. The Australian economy grew 3.4 per cent through the year to June 2018, slightly faster than its 27-year annual average growth rate of 3.2 per cent.
Over the last financial year, almost 350,000 jobs have been created, the largest number in any financial year since 2004. A report by the IMF released on 20 November noted that Australia’s strong economic growth is expected to continue and that our strong economic momentum has resulted in further improvements in labour market conditions. Unemployment is down to 5.0 per cent, and there are now more than one million additional people in work than was the case five years ago.
Our economy and finances are more resilient than they have been since the Global Financial Crisis. Characterised by an array of dynamic, modern industries and an innovative spirit, our economy is the world’s 13th largest, despite making up only 0.3 per cent of the global population.
Recognising the particular economic challenges in the vast rural areas outside of Australia’s major cities, the Government this year invested $220 million in a Regional Jobs and Investment Package to support a robust and productive regional workforce.
On tax, the Australian government recently introduced tax cuts for Australia’s 3.3 million small-to-medium-sized enterprises (SMEs) with an annual turnover of less than $50 million. This was significant because SMEs are the backbone of the Australian economy. They employ over two thirds of the Australian workforce, making up 57 per cent of our GDP.
Australia has long been known as an immigration country in favour of an open immigration policy. However, the current government has taken a tough stance on illegal boat people for some years now. What are Australia's immigration priorities?
Australia is one of the most diverse and inclusive countries in the world. Around a quarter of Australians were born overseas and almost half the population has a parent born overseas. So immigration is a central part of our national story.
We continue to build on our successful multicultural society by building community resilience and engendering respect for Australia's shared values and institutions, our way of life and the rule of law.
Australia actively promotes lawful migration. We are strongly committed to stopping people smuggling and trafficking. Our strong border protection policies have helped to prevent the loss of life at sea as they act as a disincentive for people who may otherwise risk their lives making the dangerous voyage to Australia.
Australia continues to re-settle around 18,000 refugees per year through our Humanitarian program. This makes us one of the most generous re-settlement nations in the world on a per capita basis.
Ten years ago, your government, under then Prime Minister Kevin Rudd, officially apologised to the First Australians, the Aborigines and Torres Strait Islanders, for the wrongdoing committed in the 20th century. What has happened since then?
The apology was a very important juncture for Australia. It represented a significant step forward for reconciliation between our Aboriginal and Torres Strait Islander communities and other Australians as a recognition of past injustice.
The Australian Government has recognised that more needs to be done to close the gap between Indigenous and non-Indigenous Australians, in particular, to enable and empower Aboriginal and Torres Strait Islander people to live healthy and prosperous lives.
Our key policy framework, called ‘Closing the Gap’, contains important targets surrounding early childhood, schooling, health, economic participation, healthy homes, safe communities and governance and leadership.
As of this year, Australia is on track to meet three of its seven specific targets. There is still a long way to go. But we think it is also important to recognise the success and achievements of Aboriginal and Torres Strait Islander people, demonstrating that disadvantage can be overcome when equal opportunities are provided. Our government and communities across the country are working hard to improve the lives of Indigenous Australians, and walk the journey ahead together.
Australia is one of the 20 largest CO2 emitters in the world. Australia signed up to the 2015 Paris Agreement on Climate Change. Can you tell us about Australia’s efforts to meet its Paris commitments and the challenges associated with climate change?
Australia is committed to the Paris Agreement and we will continue to work toward achieving our targets. Our 2030 target of reducing emissions by 26-28 per cent below 2005 levels is achievable, reasonable and responsible. Our targets are in step with the efforts of other developed countries and take into account our national circumstances.
Beyond government, there is widespread global support for the Paris Agreement, and we intend to continue being a part of the solution to address climate change challenges. So, we are looking to our innovators and technology sector for new ways to reduce emissions while we drive job creation and economic growth.
International students account for 38 percent of Australia’s 1.3 million students, which is an OECD record. These foreign students, mostly from China and India, are a major source of income for Australian universities. Why are Australian universities so popular?
Education is Australia’s third largest export, so its importance cannot be understated. In 2017, education earnings in Australia increased by 22 per cent to AUS$32.2 billion. Our universities are important employers, too, with over 120,000 full time staff.
We are immensely proud that Australian universities and higher education institutions attract world-renowned researchers and professors, as well as a growing number of international students. The teaching standard is high, and our strong academic reputation drives enrolments by international students in Australian higher educational institutions. Six Australian universities are in the top 100 universities in the world.
For a nation of just 24 million people, we have the third highest number of international students in the world behind the UK and the US. The fact we are located in the Asia-Pacific also makes us an attractive destination for students from our region. Anecdotally, we know too that Australia is seen as welcoming to international students and provides an international experience that goes beyond the classroom.
Australia is a multicultural country with a diverse range of peoples and languages, and vibrant cultural life and museums. What does ‘Down Under’ culture mean to you?
Australian culture means so many things to so many different people. Our cultural diversity – both in regional and urban centres – is astounding, with more than 300 languages spoken in homes across Australia, more than 100 religions practised and more than 300 different ancestries. Because of this, we can include countless traditions of art, dance, literature, food, religion, sport, celebration and more into the summary of ‘Australian culture’. The many languages and cultural traditions of our Aboriginal and Torres Strait Islander peoples form a significant foundational fabric for Australian society.
Over 80 per cent of the Australian population lives within one hour of the coast, so beaches, harbours, rivers and lakes are an important part of daily cultural life for many Australians. The landscape, which many people know from photos and films about Australia, is incredibly unique and precious. Interaction with this landscape is integral to being Australian, but there is a cultural sophistication found in Australia’s cities and regional hubs that is mature and draws visitors from across the globe.
Australia is a popular work-and-travel destination that especially attracts adventurers and backpackers. Its world-famous attractions include the Great Barrier Reef, the Uluru in the outback and the Sydney Opera House. Which highlights can you personally recommend?
Indeed, Australia is a very attractive destination for around 9 million international visitors annually. This includes some 150,000 Working Holiday Maker visa holders in Australia, including 25,000 German working holiday visitors each year. We know there are a number of sights that are usually top of the ‘bucket list’ for travellers to Australia. The Sydney Opera House is one such landmark and the Great Ocean Road in Victoria is a particularly popular destination for overseas visitors. For many visitors, Australia’s beaches are a huge attraction. Of course, Bondi Beach is the most famous of these, but there are many more!
Outside of the cities there are some very special destinations, such as the wilderness of Tasmania, the pink lakes in South Australia and the spectacular Kimberley region, spreading across Australia's north-western corner. And of course, many international visitors are deeply impressed by the red centre of Australia and the majestic Uluru. It is full of unique, striking attractions – I would like to recommend exploring all of Australia.
INTERVIEW Markus Feller