Bhat or buck, Asian union could end Oz dollar

By Jane Metlikovec
June 06, 2008 02:46am
Asian union would mean free trade, says expert
Unified currency could follow
Opposition divided on idea
A UNIFIED currency and open borders could follow any union between Australia and Asia, an expert says. Prime Minister Kevin Rudd yesterday announced his plan to create a broad Asia-Pacific Community by 2020. Asian legal expert Prof Tim Lindsey of Melbourne University said it was too early to speculate about a unified euro-style currency, but it could follow any international pact. "With a union you have the idea of free trade, and once you have that everything else follows," he said. "Australia is uniquely positioned as the only Western society in Asia and we have never capitalised on that, despite most of our commodities going to Asia." He said Australia was still suffering from a "colonial hangover" by setting itself apart from Asia. "This perception of ourselves as a European nation has to change. Our government-to-government relations have improved with Asia so much that we do need to capitalise on it now." Opposition MPs are divided on Mr Rudd's plan, which he put forward in a speech to the Asia Society AustralAsia Centre on Tuesday, ahead of a week-long visit to Japan and Indonesia. Opposition foreign affairs spokesman Andrew Robb said Mr Rudd's plan was presumptuous: "His first job is not to be telling China, Indonesia, Japan and India how they will be organised by Australia." But Opposition trade spokesman Ian Macfarlane said he wanted to see more details before making a judgment. "At face value, it's a step in the right direction," he said.