By Gemma Daley
Jan. 13 (Bloomberg) -- Australia will back a 16-nation trade bloc to boost exports to its Asian neighbors at the East Asia Summit in Cebu, the Philippines.
Australian Prime Minister John Howard and Trade Minister Warren Truss will attend the second East Asia meeting on Jan. 15. along with leaders from the 10-member Association of South East Asian Nations plus Japan, China, India, South Korea and New Zealand. Australia will also push its application for permanent membership in Asean, analysts said.
``Asean is a gold mine for Australian traders if we can secure some agreements on tariffs and subsidies,'' said Hal Hill, a professor in Asian studies and Asean at the Canberra-based Australian National University. ``It also has some significant benefits on the security front.''
Australia wants to join Asean, which has a population of 558 million and combined gross domestic product of 3 billion, to boost trade and security. Fifteen percent of Australian exports are shipped to Asean, government figures show.
Trade among Asean nations exceeds trillion. Members are Indonesia, Thailand, Malaysia, Singapore, Brunei, the Philippines, Cambodia, Laos, Myanmar and Vietnam.
Howard, 67, was initially banned from the 2005 inaugural meeting of the East Asia Summit after he said he would be prepared to order a pre-emptive strike on another country to stop a terrorist attack at home.
Asean ministers said Howard could not attend until Australia signed a non-aggression treaty.
`Strategic Journey'
Howard refused in 2004, although Foreign Minister Alexander Downer reversed that decision last year, guaranteeing Australia a seat at the first summit in Kuala Lumpur.
``This is an important strategic journey for Australia's identity in Asia,'' said Clive Hamilton, executive director of the Australia Institute, a research group based in Canberra. ``Howard had to mend fences to get there, now he desperately wants Australia to be a permanent member of Asean and his relationship with the U.S. is on their mind.''
U.S. President George W. Bush in October 2003, dubbed Howard his ``deputy sheriff'' in Asia. Australia has 1,400 service personnel in and around Iraq and 540 troops in Afghanistan to help reconstruction.
Australia wants Southeast Asian nations to form a joint anti-terrorism task force. Australia and Indonesia have worked together investigating terrorist attacks in Indonesian that have killed more than 240 people. Bombings on the tourist island of Bali killed 202, including 88 Australians, in 2002.
Free-Trade Zone
``In terms of security, this is the top priority for Australia, building bridges in the region and forming stronger ties for stability,'' said Hugh White, a professor of strategic studies at the Sydney-based think tank the Lowy Institute. ``Howard wants to be at the forefront in Asia, because he wants stability in the neighborhood.''
The first East Asia Summit ended in Malaysia on Dec. 14, 2005, without an agreement on a proposed trade alliance similar to the European Union.
Still, Asean economic ministers agreed on Aug. 24 to study a Japanese proposal for a 16-nation free-trade area, covering 3 billion people and economic output of trillion. The Japanese- backed study rivaled a separate review chaired by a Chinese academic for an economic bloc of only Asean, China, Japan and South Korea.
Export Boost
``Our trade in Asia would increase if we were able to get some relief on tariffs,'' Richard Rains, chief executive officer of Sydney-based Sanger Australia Pty Ltd, which exports A0 million (6 million) of beef. ``It would open a window for Australian exports.''
Australia is the world's biggest shipper of coal, iron ore and wool. It exported A4.4 billion worth of goods and services in the year ended June 30, with Japan and China the nation's two biggest trading partners.
Trade makes up about one-fifth of Australia's A8 billion economy, which is entering its 16th year of expansion. It has free-trade agreements with the U.S., Singapore, Thailand and New Zealand. Howard is seeking similar accords with China, Japan and Malaysia.
Asean and China have started cutting tariffs under a free- trade pact, while similar agreements are being negotiated with Japan and South Korea.
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