Australia is the victim of a protectionist European Union system which is leading to trade deficits with most of the major European nations including Ireland, the Australian Minister for Financial Services and Regulation, Mr Joe Hockey, said yesterday.

Speaking at a press briefing at the Australian Embassy in Dublin, Mr Hockey highlighted the trade deficits with Britain, Germany, Italy and Ireland which he said arose as a result of of protection.

He said the sooner the EU got rid of its protectionist policies the sooner this trade balance would equal out. Ireland runs a significant trade surplus with Australia.

In 1998 Ireland exported more than £350 million (€445 million) of goods and services to Australia while it imported only £36 million of Australian products.

Mr Hockey was in Dublin yesterday to promote Australia as a "safe" and "well regulated" hub for financial services in Asia and to study some of the basics of Ireland's successful economic model.

Australia is aiming to provide world capital with access to the Asian market in much the same way Ireland facilitates international capital entering the European Union.

Mr Hockey said Australia was well placed because it was essentially a liquid market with a robust and highly competitive banking system, the largest futures exchange in Asia, the sixth largest funds under equity in the world and the most sophisticated stock market in Asia.

He said Australia's distance from mainland Asia was less of a barrier than it used to be because of modern technology and he pointed to an well educated multi-lingual workforce as a big advantage.

In addition, there was still no underlying concept of transparency in Asia and pointed to Australia's financial regulatory model as a possible role model for the region, he added.

On the subject of the Republic's recent economic success, Mr Hockey singled out the partnership between the public and private sectors, excellent marketing by the IDA and the advocacy of Ireland by overseas institutions as models Australia may wish to emulate.

However, he said Australia did not want to be in the position where it built a financial centre and then had a shortfall of labour to work in it.

He said Australia would emphasis education in the area of financial services.

On his trip to Dublin, Mr Hockey met representatives from several international banks, financial houses and the IDA.

He is at the end of a European tour during which he visited Frankfurt, Paris, Amsterdam, London and Dublin. Tomorrow he will travel to Edinburgh.