Enhancing our international engagement

The Government is committed to promoting economic development, good governance and security in our region and beyond. This reflects Australia’s interest in a stable, secure and well-governed world.

Bilateral assistance

Australia has increased substantially its direct development assistance to Australia’s neighbours.

Australia responded to the recent tsunami disaster by providing to Indonesia the largest single aid contribution it has ever made. The $1 billion package will provide valuable support to Indonesia’s reconstruction and development efforts.

The Government remains active in the Pacific. The Regional Assistance Mission to the Solomon Islands has made great progress in restoring law and order and stabilising government finances, and a further $841 million over four years will continue this work. The Government also will maintain its substantial commitments of personnel in Papua New Guinea and Nauru.

Australia has a strong interest in a stable, democratic and developing Iraq.

This budget provides $466 million over four years to continue the Australian Defence Force’s contribution to stabilisation activities, and $45 million over two years to support Iraq’s development and democratic transition.

Trade liberalisation

Closer economic links contribute to prosperity. The Government is working to reduce trade barriers through the multilateral Doha round negotiations and through free trade agreement negotiations with China, Malaysia, ASEAN and the United Arab Emirates.