AUSTRALIA'S trade with Asia will rise significantly under the federal government's new Asian century policy blueprint.
The government's long-awaited white paper sets the goal of increasing the value of Australia's trade with Asia to one third of national Gross Domestic Product (GDP) by 2025, up from about one quarter currently.
Trade Minister Craig Emerson says the government will also position Australia as a "connecting rod" between Asia and Latin America as part of its long-term goal of securing an Asia-Pacific free trade deal.
Dr Emerson says Australia has been in talks with Mexico, Colombia, Peru and Chile about the possibility of a trade deal with these countries that could extend to others in the Asian region.
"These nations are like-minded with Australia as open traders and are interested in Australia connecting them to dynamic Asian economies through our familiarity with countries of the region," he said.
The white paper says Australia should aim to make its economy more open and integrated to ensure the easier flow of goods, services, capital, ideas and people.
The government says it will continue to push for tariff reductions and improved access for Australian investment across the region.
It will continue to advocate in favour of further market-based reforms in Asia and work towards the establishment of direct trading between the Australian dollar and the Chinese renminbi in mainland China.
Dr Emerson also announced a $6 million grants scheme - called the Asian Century Business Engagement Plan - to boost business links in Asia.
Prime Minister Julia Gillard has appointed Dr Emerson to assist her in delivering the white paper's objectives.
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