Deepening regional economic integration

We have seen that Australia must reinvigorate its commitments towards development assistance.

At the same time, our broader vision as an economic partner must be more ambitious than simply ending poverty.

Ultimately, we want to see the region flourish, not just keep its head above water. Our security is anchored, and economy buoyed, by the strength of neighbours to our north. It is therefore in our national interest that the region maintains high growth-rates on an inclusive and sustainable basis.

To support and share in the region's growth, integration is key. Our opportunities to grow together—from trade, investment, and mobility—are multiplied when the region is open and interconnected. Australia must therefore make every effort to extend and deepen the economic links that enable our shared prosperity.

To that end, Australia will work with our neighbours to:

Deepen two-way trade with the Asia-Pacific. Australia and Asia-Pacific economies already enjoy significant, two-way market access thanks to RCEP and the CPTPP. To better seize new trading opportunities, Australia will increase funding to Austrade and Export Finance Australia, with the aim of boosting the availability of advice and financial support to Australian businesses trying to enter new, regional markets. To ensure trade expands on a win-win basis, we will also work to see Austrade play a larger role in helping Australian producers identify new supply opportunities regionally.

Pursue closer economic ties with India. In recognition of India's growing significance as an economic partner, Australia will aim to accelerate negotiations towards a full and mutually agreeable Comprehensive Economic Cooperation Agreement (AI-CECA). Alongside this, Australia will redouble efforts to implement the Government-commissioned India Economic Strategy, including its recommendation for a Strategic Economic Dialogue.

Promote Australian renewable energy exports. The scaling-up of hydrogen and electricity exports will underpin Australia's efforts to enhance its regional trade profile. We will leverage them as a driver of sustainable growth, helping power regional economies with clean, affordable, and reliable energy.

Pursue more equitable terms of trade with the Pacific. As it stands, we export significantly more to Pacific countries than we import. This imbalance has become a handbrake on Pacific economies, undermining our broader contributions as a development partner. To redress the imbalance, we will promote Pacific exports to Australia through long-term, aid-for-trade initiatives that build up the Pacific's supply-side capacity with the help of Australian ODA. Improving biosecurity standards and trade-related infrastructure will be key focus areas.

Harness greater private investment in the region. Among other measures, Australia will work with our Trilateral Infrastructure Partners to accelerate the roll-out of the Blue Dot Network. In offering a transparent certification system for regional infrastructure projects, the BDN will equip Australian investors with the information they need to invest more actively across Southeast Asia and the Pacific.

Promote labour mobility. Economically, at least, borders often serve as barriers to efficiency, blocking people both from escaping unemployment and filling skills shortages elsewhere. Economies grow fastest when people are free to pursue the employment opportunities that suit them best, wherever they may be. Australia will therefore increase immigration rates, helping both address skills gaps here and alleviate labour pressures abroad. We will also look to expand the Pacific Labour Mobility Scheme, noting the significant win-win benefits gained from filling seasonal shortages here and seeing remittances flow to Pacific communities in return.

Expand opportunities for international study. Education is a key driver of innovation, productivity, and economic mobility—all vital ingredients of inclusive growth. Australia will therefore continue to expand two-way opportunities for international study, including through an expanded New Colombo Plan.

Foster business-to-business links. Australia's economic ties, particularly with Southeast Asia, have often progressed at the government level without a commensurate fleshing-out in a business-to-business sense. As part of our efforts to redress this, Australia will seek to increase two-way trade missions across the region. We will also aim to strengthen the presence of business-led Chambers of Commerce regionally.

Enhance logistics and infrastructure connectivity. Infrastructure is an essential enabler of trade, particularly when it comes to novel exports such as green hydrogen. Australia will therefore work with partners across the region to ensure enabling infrastructure rolls out at the scale and in the timeframe needed to unlock new trading opportunities. Priorities include grid interconnectedness, hydrogen receiving terminals, and recharging stations for electric freight vehicles.