PM Speech To Launch Latin America Strategy
Prime Minister Helen Clark
Speech To Launch Latin America
Strategy
Thank you for responding to our invitation to attend this launch of the government's strategy for the development of relations with Latin America.
I wish to acknowledge especially the presence of the Ambassadors of Argentina, Brazil, Chile, Mexico and Peru and of business leaders, academic, science and education providers, and representatives of key agencies with a Latin America interest.
Thank you also to the Latin America Business Council, the Exporters' Institute and Auckland University for assisting so willingly with arrangements for the launch today.
I also thank the many people from the private sector and from government agencies who willingly gave their time during the consultation process on this strategy.
Earlier this year I received an invitation to attend the inauguration ceremony for President Lagos in Chile. I pondered it carefully. Travelling to Chile and back for a three day visit is backbreaking. But it seemed to me that the invitation opened up major opportunities to meet with Latin American leaders early on in the term of our new government, and to begin a new and more active phase in New Zealand's relations with the region.
Needless to say I was also keen to show support for the smooth transition to a new government in Chile and to support the consolidation of Chile's democracy. The significance of the installation of Chile's first centre left President since the assassination of President Allende was not lost on me either !
Latin America has long held a fascination for me personally. Its southern tip has geographical similarities with our South Island fjords, alps, and plains. Its literature and its films are compelling, and its cultural life is lively. Its history has large elements of tragedy, in both colonial and more modern times. From all that has emerged a strong region with a sense of purpose and identity which makes a huge impact internationally. There is every reason in the world why New Zealand should want to interact more with this vast region.
Democratic progress over the past few years in Latin America has been impressive. The recent election in Mexico, ending 71 years in government by the ruling party, was further evidence of power changing hands by democratic means. The vast majority of countries in Latin America now enjoy democratic governance.
In Santiago I was able to meet with Latin American leaders and to seek a response from them to the idea of an active programme to rejuvenate and expand New Zealand's relations with Latin America. The Presidents of Chile, Argentina, Brazil, and Uruguay, and the Mexican Foreign Minister all responded very positively to my proposal that New Zealand put in place a new strategy.
The economic outlook of Latin American countries has changed markedly since the 1970s. Their economies, like ours, have been opened up to the rigours of international trade and competition: inflation has largely been brought under control: and the economic outlook for the region is encouraging.
Our interest in the region is based on the enormous opportunities that it holds for New Zealanders in many fields and on the many interests we have in common.
Clearly the size of the Latin American economy
alone offers huge opportunities to
New Zealand. Mexico,
Argentina, Brazil, Chile, and Peru together spend more than
NZ$480 billion a year on imports. The Mercosur group of
countries alone has a GDP in excess of NZ$2 trillion and a
population of 200 million people.
The Latin economies have
become more competitive in the global marketplace. In turn
their sustainable level of consumption has risen, providing
significant economic opportunities for traders and service
providers like New Zealand.
Most Latin American
countries, and particularly Argentina, Brazil, Chile, Mexico
and Peru, are looking west to the Asia Pacific for new
opportunities. That presents us with an opportunity. We
have already found that we have a lot in common in the way
we view the big international issues. We could be
characterised as 'New World' partners.
This new strategy
is premised on the assumption that quality foreign
relationships have to be multi-dimensional. It is difficult
to have a good economic and trade relationship, for example,
if other elements of our interaction are not active and
healthy. Critical to our new strategy towards Latin America
is our desire to broaden and deepen our relationships to
include cultural, arts, music and sports activities, as well
as academic and scientific co-operation, other
people-to-people links, and a reinforcement of our
wide-ranging diplomatic relationships.
Anyone visiting
Latin America cannot help but be impressed by the vitality
of the cultures found there. More links between our peoples
will serve both to strengthen New Zealand's sense of
identity, and to promote greater understanding with Latin
America.
New Zealand's businesspeople,
educationalists, scientists, artists, students, travellers,
musicians, and sportspeople all have a great deal to gain
from increased contact between our country and Latin
America.
We also have a great deal to offer Latin
America in terms of business investment, technology,
education, culture and the arts, and in sharing ideas about
indigenous people's issues. We believe Latin America needs
to know more about us.
Coming to the conclusion,
therefore, that New Zealand needed a fresh approach to
relations with Latin America was not difficult. The
surprise is that it has taken so long for government to give
this relationship the priority it deserves. Neither we nor
our Latin American colleagues have yet maximised the
collective potential of working more closely together. Now
that we are determined to do that, our governmental efforts
can reinforce the already considerable efforts being made by
our traders, education institutions, scientists, and
others.
The Strategy
The strategy we are promoting for
the development of New Zealand’s relations with Latin
America aims to strengthen and broaden relations across
three broad areas: international and regional co-operation:
the economic and trade links, and people to people
contact.
The underlying assumption is that New Zealand
must project itself to the world in a more rounded way.
While trade is vital to us, the development of our
relationships with others needs to be more broadly based
than it has normally been. We want and need to relate to
the people and the institutions of Latin America in a way
which reflects the people we are. So we have broadened the
agenda, as indeed we must do with other regions in
future.
To do this New Zealand must act together as New
Zealand Incorporated with business, government, educators,
scientists, travellers, students, OE seekers, the private
sector, and the arts, culture, and sports aiding and
abetting each other. That is why this announcement today
was preceded by lengthy and detailed consultation with the
community and government agencies.
Our trade and economic
objectives for the relationship will be promoted alongside
the development of additional, mutually supporting linkages.
Among those linkages will be those between indigenous
peoples. There are unique connections to be made.
In
developing the strategy we are taking a long term view.
Building relationships takes time. The strategy must be
sustainable in the long term, and it can only be so if all
sectors are prepared to dedicate time, energy and resources
to it.
International and Regional Co-operation
In line
with the strategy we will be stepping up our co-operation
with Latin American nations on international and regional
issues. On disarmament we value our dialogue with Brazil
and Mexico. Both are partners with us in the New Agenda
Coalition on disarmament issues. On environmental
initiatives we will work to advance our shared interests in
the Southern Ocean and on issues concerning the conservation
of whales and albatrosses, the protection of the toothfish,
the ozone, and the reaching of climate change
objectives.
We will step up dialogue on these issues in
our capital cities, and seek to increase the level of
ministerial and official dialogue and visits. While in
Santiago in March, I invited a number of leaders to visit
New Zealand and we hope they will be able to come in due
course. We have also invited Argentina's Minister of
Agriculture, and I understand he plans to be here in
November. We hope also to see the Brazilian Agriculture
Minister here before long too.
A key element in being
able to keep in close touch is to ensure that our
representation in the region reflects our interests. As one
of the first steps in increasing our foreign policy
engagement, the government has approved the establishment of
a New Zealand Embassy in Brasilia from next year. A
Ministry of Foreign Affairs team departs on Saturday for
Brasilia to begin the process of setting up the embassy, and
we will have people on the ground there before the middle of
next year. I expect to open the embassy officially in the
second half of next year and to lead a trade mission to
Latin America at that time.
Diplomatic activity in a
number of Latin American countries where we do not have
embassies, but where embassies are accredited, will be
stepped up. We will also be reviewing accreditations to
other emerging economies, especially in Central America, and
possibly including Cuba, El Salvador, and Panama.
Trade and Economic Issues
We aim to lift the current level of
engagement and progress with Latin America on trade and
economic issues. On bilateral issues we will continue to
protect and enhance access to Latin American markets. We
want to build strong reciprocal relationships which will
able us to resolve quickly any difficulties which arise
about access for particular products, or on quarantine
matters.
We have tagged $100,000 of the Trade Access
Support Programme to help improve access to Latin American
markets. And we want more reciprocal investment. The value
of more outward missions to Latin America for export trade
promotion, tourism and education will be explored.
In
the budget this year we have funded through TradeNZ a
special programme of $3.8m to promote New Zealand education
overseas. A good proportion of that will be spent in Latin
America.
We will seek to strengthen the framework of
agreements under which economic activity takes place, such
as on double taxation, visa waivers, and quarantine, in
order to facilitate investment, trade and tourism. Other
activities will help put New Zealand business people in
direct contact with their Latin American
counterparts.
Our trade promotion effort in Latin America
will be enhanced through closer co-operation between
government agencies in projecting New Zealand’s interests
overseas. The first place to get a New Zealand Incorporated
approach working is within government itself !
There will
also be enhanced co-operation in regional and multilateral
trade organisations. We will continue to work with Latin
American countries in the World Trade Organisation,
especially through the Cairns Group, and with Mexico, Peru,
and Chile within APEC.
We will also continue to seek to engage Chile in discussion on a Closer Economic Partnership with New Zealand and Singapore.
People-to-People Links
We are very keen to build up people-to-people links.
Our aim here is to increase understanding and awareness at
the individual and institutional levels and to build up
interest in areas including science, the arts, culture,
academia, and education. I acknowledge here the efforts our
universities have gone to to build such links.
The
government recently increased the overall number of places
under the Working Holiday Scheme from 10,000 to 20,000 per
annum. Latin America is being allocated a significant part
of the increase, to interest their young people in
travelling to and finding out more about New Zealand. In
return we would like to see reciprocal agreements which open
up temporary work opportunities for young New Zealanders in
Latin America
Expanding our network of Visa Waiver
Agreements in the region will also facilitate tourism,
business, and other contacts.
The strategy is being
supported by a $150,000 fund to increase people to people
links. The fund will be used to boost New Zealand’s profile
by assisting with visits and exchanges of people in the
media, arts and culture, science and education, and
sports.
As part of the strategy we will increase the
funding available for scholarships this year to $1.3m. That
money is available to bring students from Latin America to
our universities and polytechnics. The amount will be
sharply increased again to a planned $3 million in
2002/03.
The money available for Short Term Training, and
for the small project funds managed by our heads of mission
overseas, will also be increased.
A Latin America
Technical Co-operation Fund will be established with $80,000
budgeted for this year, rising to $330,000 in 2002/03.
A Latin America Development Assistance Facility will
also be established with $300,000 this year, rising to $1.3m
in 2002/03. This will enable the New Zealand private sector
to work closely with the Government to support capacity
building, project development and investment, and to help
partners, organisations and communities in Latin America
achieve sustainable economic and social progress.
Conclusion
This initial three year strategic effort aims
to consolidate and expand on the relationship New Zealand
and key Latin American countries have established in the
past. We are doing more spadework to get the foundations
right.
Government agencies are now taking account of the
priority the government is placing on relations with Latin
America. We believe that education, business, scientific
and other sectors will also want to leverage new
relationships from the government's determination to raise
New Zealand's profile in Latin America.
We will work very
closely with our Latin American colleagues, to identify
where our joint efforts can be co-ordinated.
We can
anticipate over time an increase in trade, tourism,
investment, in students studying Spanish, and Portuguese, in
Latin American students in our schools and tertiary
institutions, in scientific and academic collaboration, and
in international and regional co-ordination and
co-operation.
This is a new and exciting chapter in New
Zealand/Latin American relations for which I hope you will
share our
enthusiasm.