Australia's international focus has shifted from Europe and the USA toward Asia. Geopolitically it is in an ambiguous position. Having lost it's place as a major trading partner for the UK when the latter joined the EEC, Australia has found that it is still regarded as a European outsider by the Asian nations with which it wishes to foster closer links. Australia has taken practical steps to redefine its role. It was the main backer of the 1989 Asia Pacific Economic Co-operation forum (APEC), an attempt to create a multilateral regional trading bloc, similar to the EU and NAFTA. After a faltering start, APEC began to get results. It was the first group to have China, Taiwan and Hong Kong sitting around the same table. The USA was a strong supporter, seeing APEC as a means of promoting free-market economics in Asia. Japan gave APEC its backing and now sees no conflict in belonging to APEC and leading ASEAN, the other key economic grouping. Australia's ambition is for APEC to become the leading association in the region.
Relations with the USA are tense on questions of trade. Australia objects to subsidized US wheat undercutting its own in Asia, particularly in the key Chinese market. It now sees the EU and the USA as its main competitors in booming Southeast Asian economies.
However, Australia still supports the West on security issues. Against much public opposition, it sent troops to the 1991 Gulf War. Its commitment to the Pacific region also remains strong. The end of the Cold War, however, has meant that this is now expressed in terms of development aid rather than defense arrangements.
Within the Pacific region, fishing is a major issue. There have been a number of minor skirmishes with Indonesian and Japanese long-line fishing boats. Australia objects to this form of fishing as it kills large numbers of dolphins, and employs anti-submarine patrols to regulate the industry.
