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29 May 1986
Page: 4325
ANSWERS TO QUESTIONS
Lima Declaration
(Question No. 3650)
Mr Conquest asked the Minister representing the Minister for Industry, Technology and Commerce, upon notice, on 20 March 1986.
(1) Is it a fact that Australia (a) voted in favour of the Lima Declaration on 27 March 1975, (b) is a signatory to it and (c) has subsequently ratified the declaration.
(2) Do points numbered 59(c) and 61(d) of the Declaration militate against the interests of Australian manufacturers by suggesting that certain productive capacities be redeployed to developing countries.
(3) If so, why has the agreement been signed.
(4) Will the Government implement the points contained in the Declaration; (b) if so, what is the time-frame for this to be achieved.
Mr Barry Jones - TheMinister for Industry, Technology and Commerce has provided the following answer to the honourable member’s question:
(1) (a) Yes.
(b) and (c) The so called ‘Lima Declaration’ is a declaration agreed to by the Second General Conference of the United Nations Industrial Development Organisation at Lima, Peru, in March 1975. It is not an international instrument requiring either signature or ratification.
(2) (3) and (4) As explained above, Australia has not signed the Lima Declaration.
In supporting the Declaration in 1975 the leader of the Australian delegation presented a statement of reservation and interpretation in which the Australian Government’s position was effectively explained. In that statement the delegation leader said, inter alia: ‘The Australian delegation has supported the Declaration and Plan of Action because of the aspirations it embodies for a fairer, more co-operative and more progressive world order. We have done so notwithstanding reservations on a number of matters.’ Reference was then made to Australian reservations made on the program of Action on the Establishment of a New International Economic Order (NIEO) and on the Charter of Economic Rights and Duties of States (CERDS). The delegation leader then expressed specific reservations or interpretations on a number of paragraphs in the Declaration, including paragraphs 17, 19, 28, 40, 42, 43, 44, 47, 59(c) (d) and (e) and 60(e) and (f).
Around the time that statement was made and subsequently, a more difficult economic environment and increasing competition, particularly from developing countries in the region, was revealing major deficiencies in Australian manufacturing industry. This resulted in a significant change in the Government’s approach to manufacturing industry policy.
That policy is now aimed at making the manufacturing sector more internationally competitive, export-oriented, flexible and innovative, and capable of operating in the longer-term with minimal levels of government assistance and regulatory intervention.
A recognised consequence of this approach is the need for a gradual restructuring of industry.
The Government also continues to be actively involved as appropriate in assisting the process of industrialisation in developing countries. Means by which Australia pursues this objective include the Australian System of Tariff Preferences, the foreign aid program, and involvement in a range of activities under the auspices of the United Nations Industrial Development Organisation (UNIDO) and the Commonwealth Heads of Government Regional Meeting (CHOGRM) Working Group on Industry.
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It was only in 1993 that Australia actually changed
its stance on the Lima agreement - some seven years later.
In the mean time the economies of Singapore and Hong Kong. amongst others, were able to use this loophole to flood Australia with goods at a 5% tariff discount.