Turnbull trumpets trade at ASEAN meeting

Increasing Australian business ties to Southeast Asia will be the focus of day one of a special leaders' summit in Sydney hosted by the prime minister.

Australian Prime Minister Malcolm Turnbull addresses delegates for an Emerging Leaders roundtable at ASEAN.

Australian Prime Minister Malcolm Turnbull addresses delegates for an Emerging Leaders roundtable at ASEAN. Source: AAP

Prime Minister Malcolm Turnbull has stressed the need for Australia and its neighbours to pursue open trade during a meeting of southeast Asian leaders in Sydney.

Mr Turnbull on Friday opened a special leaders' summit at a business forum attended by the 10 Association of Southeast Asian Nations (ASEAN) member countries.

He talked up the emergence of "digital disruption" and stressed the need for open markets in light of US President Donald Trump's march towards protectionism.



"Australia will continue to work with our closest neighbours in the region. You don't grow stronger by closing the door to other markets," he told regional leaders.

"Protectionism is a dead end. It is not a ladder to get you out of the low growth trap, it is a shovel to dig it much deeper.

"We must face the world, not turn from it. Embrace free trade, not retreat from it, and do so on the basis of strong and transparent rules, fair and open competition, and non-discriminatory legislation."

Mr Turnbull is particularly keen to see Australian small businesses get a piece of the action amid Asia's rapidly expanding middle class.

By 2030, there will be an estimated 161 million middle-class households in the region, which is expected to grow by at least 5.4 per cent for the next decade, significantly higher than the global average.

Earlier, Indonesia's President Joko Widodo indicated his support for Australia joining ASEAN.




"I think it's a good idea," he told Fairfax Media in an interview published on Friday.

The president said it would be better for "stability, economic stability, and also political stability. Sure, it will be better" for the region.

Prime Minister Malcolm Turnbull responded to the interview by saying he looked "forward to discussing that with President Jokowi if he raises it with me".

As a bloc, the 10 ASEAN member countries make up Australia's third-largest trading partner, worth almost $100 billion in 2016/17.




Australia is not a formal member of ASEAN, but maintains a role as a strategic partner and takes part in the biennial leaders' summit first instituted in 2016.

Mr Turnbull's schedule includes bilateral talks with Singapore Prime Minister Lee Hsien Loong after the pair dined together on Thursday night.

Mr Widodo arrives in Sydney on Friday and is expected to have dinner with Mr Turnbull at his harbourside home in the evening.

The two countries hope to sign a free trade deal on the sidelines of the summit after failing to meet a deadline late last year, although negotiations are ongoing.

AAP understands 95 per cent of the deal has been finalised.

 


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