JAPAN
25 March 2014
Japan -- Australia's best friend!
"As far as I'm concerned, Japan is Australia's best friend in Asia and we want to keep it a very strong friendship," Australia's Tony Abbott told Japan's Shinzo Abe.
"As far as I'm concerned, Japan is Australia's best friend in Asia and we want to keep it a very strong friendship," Australia's Tony Abbott told Japan's Shinzo Abe, when these two prime ministers met at the recent East Asia Summit in Brunei.
During their meeting, the pair discussed progress towards the holy grail of a free-trade agreement between the two countries. For six years, negotiators from both sides have been digging through the detail of a potential FTA.
"Six years is long enough. It's time to seal the deal," Australian Minister for Foreign Affairs, Julie Bishop, later announced. She wants to conclude the FTA within 12 months. Experience shows that setting such a specific deadline might just encourage even more stone-walling by protectionist Japanese trade bureaucrats. No-one has ever managed to make a big crack in Japan's highly protected agricultural sector.
Abbott's declaration of friendship follows the sentiment of the former Australian government's Asian Century Country Strategy for Japan, even though Abbott's government has officially distanced itself from the White Paper. According to this White Paper, "Australia’s partnership with Japan is our closest and most mature in the region, and is a model for Australia’s wider engagement with Asia".
Julie Bishop expanded on the choice of Japan as Australia's best friend in a recent speech at the Australian National University. She noted the "relationship ... has not had sufficient recognition in recent years, as Australia and much of the rest of the world shifted focus to China ... However, Australia's friendship with a rising China does not come at the expense of close and longstanding
friendships ...".
She insisted that her "recent visit to Japan was about reaffirming Japan's place at the forefront of Australia's regional engagement".
Bishop is right to highlight the importance of Australia’s partnership with Japan. It is Australia's second-largest trading partner, accounting for just under one in four of all export dollars Australia earns, with total goods and services trade amounting to $71 billion in 2012. Australia is Japan’s number one source of coal, iron ore, liquefied natural gas (LNG), uranium, beef and dairy products.
Japanese investment has also been key to Australia’s past economic development, and has continued to grow apace in recent years – almost doubling since 2007 to reach $126.4 billion in 2012. Japan is currently Australia's third-largest source of foreign investment after the United States and the United Kingdom.
Further, Japan is a key partner for Australia in the Asian region and globally, including through its shared alliance partner the United States. And despite wide differences in geography and demography, Australia’s comprehensive partnership with Japan is based on the shared values of democracy, human rights and the rule of law.
It is sometimes forgotten that despite the rise of China, Japan remains the largest developed economy in the Asian region and the world’s fourth-largest economy in terms of purchasing power parity (PPP). It is one 20 of the world’s largest investors in science, technology and innovation, consistently ranking as one of the 10 top two countries in lodging patent applications.
Deeply integrated into the world economy through trade, investment and value chains, Japan will remain a key global and regional economic player well into the future.
Perhaps most interestingly, Bishop went on to speak of the Australian Government's "New Colombo Plan". This aims to lift knowledge of the Asia Pacific in Australia and strengthen our people-to-people and institutional relationships, through study and internships undertaken by Australian undergraduate students in the Asian region.
"It's a reversal of the original Colombo Plan that brought so many of the best and brightest from young people around the region to study in Australia from the 1950s to the 1980s", Bishop said. "We want to see a generation of young Australians emerge who are Asia-literate".
"Despite our long and close relationship, a diminishing number of young Australians are learning to speak Japanese ... As a result, the deep understanding of the country that so often comes with learning its language is lacking."
The New Colombo Plan is intended to deepen relationships with Asia, both at the individual level and through expanding university, business and other stakeholder links. Over time, the Australian Government wants to see study in the Asia Pacific region become a “rite of passage” for Australian undergraduate students, and as an endeavour that is highly valued across the Australian community.
The Australian Government has announced $100 million over five years of new funding for the New Colombo Plan. The Plan will commence in 2015, after a pilot phase in 2014 in which Japan, Indonesia, Singapore and Hong Kong are participating.
The timing of the New Colombo Plan is excellent when it comes to Japan. Japanese Prime Minister Abe aims to double the number of foreign students studying in Japan by 2020, and Australian students can play a part in helping Japan achieve that goal.
Bishop concluded that "like many long-time relationships, our economic relationship with Japan needs a fresh spark". She hopes that her initiatives "will breathe new life into those aspects of our bilateral relationship".
Australia's new government is right to invest more in its relationship with Japan. As a middle-ranking power, Australia should not be putting too many eggs in the China basket.
Indeed, Australia should try to be friends with everyone. This includes Indonesia, with which the relationship is perhaps the most problematic and delicate. It also includes India, Singapore and so on and so on.
I recently attended the Beijing Forum, where Singapore's former trade minister George Yeo took a vulgar swipe at Australia's treatment of aborigines, without mentioning his own country's often terrible treatment of many migrants from elsewhere in Asia. He also did not mention that increasing numbers of Singapore's skilled youth are fleeing the stifling atmosphere of the authoritarian city-state and are now choosing Australia as their home.
Ruling elites from Asia's non- or barely-democratic countries believe that attack is the best form of defence and will seize any pretext to have a shot at any apparent chinks they might notice in the moral fibre of the West.
In conclusion, we believe that making public declarations of best friendship is not a sophisticated form of relationship management. Because, in the vast continent of Asia, with its immense diversity of incomprehensible cultures, you can never be sure who your friends really are.
Executive Director
Asian Century Institute
www.asiancenturyinstitute.com
During their meeting, the pair discussed progress towards the holy grail of a free-trade agreement between the two countries. For six years, negotiators from both sides have been digging through the detail of a potential FTA.
"Six years is long enough. It's time to seal the deal," Australian Minister for Foreign Affairs, Julie Bishop, later announced. She wants to conclude the FTA within 12 months. Experience shows that setting such a specific deadline might just encourage even more stone-walling by protectionist Japanese trade bureaucrats. No-one has ever managed to make a big crack in Japan's highly protected agricultural sector.
Abbott's declaration of friendship follows the sentiment of the former Australian government's Asian Century Country Strategy for Japan, even though Abbott's government has officially distanced itself from the White Paper. According to this White Paper, "Australia’s partnership with Japan is our closest and most mature in the region, and is a model for Australia’s wider engagement with Asia".
Julie Bishop expanded on the choice of Japan as Australia's best friend in a recent speech at the Australian National University. She noted the "relationship ... has not had sufficient recognition in recent years, as Australia and much of the rest of the world shifted focus to China ... However, Australia's friendship with a rising China does not come at the expense of close and longstanding
friendships ...".
She insisted that her "recent visit to Japan was about reaffirming Japan's place at the forefront of Australia's regional engagement".
Bishop is right to highlight the importance of Australia’s partnership with Japan. It is Australia's second-largest trading partner, accounting for just under one in four of all export dollars Australia earns, with total goods and services trade amounting to $71 billion in 2012. Australia is Japan’s number one source of coal, iron ore, liquefied natural gas (LNG), uranium, beef and dairy products.
Japanese investment has also been key to Australia’s past economic development, and has continued to grow apace in recent years – almost doubling since 2007 to reach $126.4 billion in 2012. Japan is currently Australia's third-largest source of foreign investment after the United States and the United Kingdom.
Further, Japan is a key partner for Australia in the Asian region and globally, including through its shared alliance partner the United States. And despite wide differences in geography and demography, Australia’s comprehensive partnership with Japan is based on the shared values of democracy, human rights and the rule of law.
It is sometimes forgotten that despite the rise of China, Japan remains the largest developed economy in the Asian region and the world’s fourth-largest economy in terms of purchasing power parity (PPP). It is one 20 of the world’s largest investors in science, technology and innovation, consistently ranking as one of the 10 top two countries in lodging patent applications.
Deeply integrated into the world economy through trade, investment and value chains, Japan will remain a key global and regional economic player well into the future.
Perhaps most interestingly, Bishop went on to speak of the Australian Government's "New Colombo Plan". This aims to lift knowledge of the Asia Pacific in Australia and strengthen our people-to-people and institutional relationships, through study and internships undertaken by Australian undergraduate students in the Asian region.
"It's a reversal of the original Colombo Plan that brought so many of the best and brightest from young people around the region to study in Australia from the 1950s to the 1980s", Bishop said. "We want to see a generation of young Australians emerge who are Asia-literate".
"Despite our long and close relationship, a diminishing number of young Australians are learning to speak Japanese ... As a result, the deep understanding of the country that so often comes with learning its language is lacking."
The New Colombo Plan is intended to deepen relationships with Asia, both at the individual level and through expanding university, business and other stakeholder links. Over time, the Australian Government wants to see study in the Asia Pacific region become a “rite of passage” for Australian undergraduate students, and as an endeavour that is highly valued across the Australian community.
The Australian Government has announced $100 million over five years of new funding for the New Colombo Plan. The Plan will commence in 2015, after a pilot phase in 2014 in which Japan, Indonesia, Singapore and Hong Kong are participating.
The timing of the New Colombo Plan is excellent when it comes to Japan. Japanese Prime Minister Abe aims to double the number of foreign students studying in Japan by 2020, and Australian students can play a part in helping Japan achieve that goal.
Bishop concluded that "like many long-time relationships, our economic relationship with Japan needs a fresh spark". She hopes that her initiatives "will breathe new life into those aspects of our bilateral relationship".
Australia's new government is right to invest more in its relationship with Japan. As a middle-ranking power, Australia should not be putting too many eggs in the China basket.
Indeed, Australia should try to be friends with everyone. This includes Indonesia, with which the relationship is perhaps the most problematic and delicate. It also includes India, Singapore and so on and so on.
I recently attended the Beijing Forum, where Singapore's former trade minister George Yeo took a vulgar swipe at Australia's treatment of aborigines, without mentioning his own country's often terrible treatment of many migrants from elsewhere in Asia. He also did not mention that increasing numbers of Singapore's skilled youth are fleeing the stifling atmosphere of the authoritarian city-state and are now choosing Australia as their home.
Ruling elites from Asia's non- or barely-democratic countries believe that attack is the best form of defence and will seize any pretext to have a shot at any apparent chinks they might notice in the moral fibre of the West.
In conclusion, we believe that making public declarations of best friendship is not a sophisticated form of relationship management. Because, in the vast continent of Asia, with its immense diversity of incomprehensible cultures, you can never be sure who your friends really are.
Author
John WestExecutive Director
Asian Century Institute
www.asiancenturyinstitute.com
REFERENCES:
- ABC News. Australian Prime Minister Tony Abbott holds first formal meeting with Japanese Prime Minister Shinzo Abe- 2013 Japan update. Julie Bishop, Minister for Foreign Affairs, Australia. Speech, Australian National University, Canberra. 5 November 2013.
- Japan Country Strategy, Asian Century Country Strategies. Department of Foreign Affairs and Trade. Australia.