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Australia Essay Research Paper Australia Trade and

Australia Essay, Research Paper


Australia- Trade and Immigration Background As Joycelyn


has mentioned Australia’s having greater and greater


interaction with its Asian neighbours, through the areas of


trade and its active role in the regional trade organization -


APEC. Despite its location, Australia can hardly be thought


of being an Asian country. Not so long ago, Asian were


looked down upon, with a mixture of fear because of the


communist aggression, pity because of their poverty, and


contempt, as they dumped cheap and poorly made products


to do Australian workers out of job. For decades, high


prohibitive tariffs blocked the imports of Asian goods, and a


‘White Australia’ policy fenced off Asian migrants. However,


the situation is reversed in the past 2 decades. With East


Asia being the fastest growing economy, and the


development of regional trade blocs in their traditional


trading partners such as the EC and NAFTA that tend to


emphasize internal trade, Asia becomes Australia’s single


most promising opportunity. And now, Australia is eager to


be Asian. Trade (See overhead – Exports) In 1994, some


60% of Australia’s total exports equivalent to more than 60


B A$ went to Asia. While Japan remains to be their largest


trading partner, S Korea replaced US to take the second


place. But at the same time, Australia’s share of Asia’s total


imports is declining, down from 3% in 1985 to 2% in 95.


The main reason is that Asian countries are trading more


among themselves, and importing more hi-er value-added


products, rather than the common Australian exported


commodities. However, steering towards value-adding


industries is not easy. Besides infrastructure and labor


reform, Australian manufacturers will become head on with


some of Asia’s most efficient operations. Anyway, Australia


has shown its committment to free trading. The former Labor


government has committed to cutting the average tariff for


most imports to 5% by 2000, compared to 20% in 1983.


And the trend towards a more open economy will be


continued by the new Liberal-National gov’t. Most domestic


business will not survive under such open competition, but


Australia sees this as an opportunity to reshape its


manufacturing base to become narrower and deeper, and


more competitive. They see an ideal picture of Australia


importing cheap manufactured goods from Asia instead of


making expensive ones at home behind tariff, and Asia


buying mineral and food from them. Yet the Asia’s


super-achievers have never been the faithful worshipper of


free-trade. And Australia has found it hard to dismantle the


barriers to processed minerals and food in the Asian


markets, and this impedes their development of value-adding


industries and job creation. But from the Asia’s pt of view,


Australia’s tiny population of 17 M means little to the Asian


giants, for example when compared to Indonesia’s 180 M.


A qoute from the Malaysian Info minister, ‘Australia depends


on Asia and not the other way around.’ may reflects


Australia’s position, at least this is the way the Asians see it.


Immigration (See Overhead – Immigration) Another sign of


Australia’s willingness to open is its generous immigration


policy. The # admitted stayed over 100,000 in the 80s, but


was cut back to 80,000 in 92. Most of them were from


Asia. Besides the categories of family reunion and refugee,


Australia, like Canada, also attracted hundred of thousands


of skilled or business immigrants from Hong Kong where


people fled as the Chinese takeover approaches. These


people brought in an enormous amt of capital, and also


initiated a boom in the real estate market. The proportion of


Australian with Asian origins are expected to increase to 7%


in 2000, as compared to 4%

now. Most Australians feel


uneasy about this sudden change in the ethnic mixtures of


their countries, and opposing voices are high. The


unemployment figure is double digit already, and most of the


immigrants are unskilled since they were admitted for having


relations in Australia. New policies call for lower # admitted,


and more quotas given to people with skills and higher


education background. Australians are apprehensive about


the pace of Asian immigration, and tension is rising. Many


complain that the new comers keep themselves separate


rather than integrating into community life. But this requires


committment from both sides, and it’s not easy to be done


right the way. Most of new comers have language problems,


esp those came for family reunion. Australians on the other


hand, have little knowledge of other Asian cultures, and


conflicts can occur easily due to misunderstanding. On the


extreme side, fringe groups such as the neo-Nazi Australian


Nationalist Movement and the League of Rights explicitly


claimed that immigration was bad if it meant more Asians.


And the cases of racist violence is increasing. The last PM


Paul Keating actually started some initiatives to narrow the


gap between the local people and immigrants, such as


introducing Asian culture in the school curriculum. An


interesting pt to note, the current PM Mr Howard publicly


opposed the multi-cultural policies, such as hiring


interpreters. His attitude can be constrasted to Canada


which take pride in its multiculturalism, and we’ll discuss it


further later. Challenges So far it seems that Australia is


heading in the right direction, but its successful integration


into Asia won’t be easy. Opposing forecs come both


externally and internally. At home, few Australians see


themselves as Asian. They already felt hostile about the


Japanese investment in their real estate and tourism, and


more interaction with Asian countries is uneasy esp to many


old Australians. On the other side, after all these years of


isolation and avoidance of its Asian neighbours, Australia


can hardly convince its neighbours that it’s Asian. Instead


they try to be an odd man among its neighbours, that is to


integrate fully into the economic life of the region, while


preserving its western values. But from the Asian side, they


may not easily accept Australia’s western practices. The


main issue lies in the difference in their attitude towards


individual freedom and respect of human rights. Take some


examples. Dr Mohammad resented that Australia refuse to


censor a tv program ‘Embassy’ which he claimed was


mocking Malaysia. Australia also got into diplomatic


problems with certain authoritarian regimes for critizing their


behaviors. Its relationship with Indonesia is always tense for


its criticisms of Indonesia over human rights, corruption, and


the status of East Timor. Even Singapore didn’t like


Australia’s comment on its harrassment of the Asian Wall St


Journal and other newspaper. As other Asian countries all


share similar culture and values, Australia with its western


nature would easily be labelled as intruder. And they all


understand that Australia’s friendliness towards Asia is


economically driven, it comes out of the mind, not the heart.


Moreover, some of them even suspect it of acting as a


stalking horse for western interests. Malaysia proposed a


regional East Asia Econ Caucus which will exclude the US


and Australia, and this is clashing over with APEC in which


Australia and US are active participant. So, how can


Australia manage its odd man role in the Asian region?


Should it go for Multiculturalism or a melting pot policy like


the US? How can it balance its relationship with its


neighbours while preserving its western values?

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