MEDIA RELEASE

DEPUTY PRIME MINISTER AND
MINISTER FOR TRADE

TIM FISCHER

19 March 1999

WTO Rice Tariffication Response

Deputy Prime Minister and Minister for Trade, Tim Fischer, has announced in Leeton today that Australia will be lodging an objection with the World Trade Organization in Geneva regarding proposed modifications to Japan's tariff schedule on rice.

Mr Fischer said the decision had been finalised following a meeting with Ricegrowers' Cooperative Limited at their headquarters in Leeton today.

"The rice industry has been fully consulted and agrees with the steps that the Government is taking", Mr Fischer said. "I also emphasise that the actions we are taking will not affect the existing rice trade under the minimum access arrangements between Australia and Japan. This currently equates to some 606,400 tonnes of rice and under existing WTO commitments will grow to 644,300 tonnes from the first of April and 682,000 tonnes from next year".

Mr Fischer said the decision to lodge an objection in Geneva follows Japan's decision last December to abolish its previous quota arrangements for rice imports and to instead apply a new tariff-based regime to take effect from 1 April 1999.

"While supporting Japan's move to tariffy its rice market, we are far from satisfied with the level of the out of quota tariff which amounts to about 390 per cent for prime rice at current prices", Mr Fischer said.

"I want to make clear that our objection is not against the tariffication process as Australia strongly supports moves in the WTO to convert non-tariff barriers into tariffs. However, we do object to the methodology used by Japan to determine its out of quota tariff".

Mr Fischer applauded the promotional efforts of the Australian rice industry which last year exported around $70 million of rice to Japan. Australian rice growers recently released a new type of rice (OPUS) designed for Japanese tastes which will be important to the marketing of Australian rice in the Japanese market.

Mr Fischer said he would also be discussing the rice tariffication issue with Japanese Minister for International Trade and Industry, Mr Kaoru Yosano, who will be in Canberra on Monday. This will include emphasising the importance that the Australian rice industry attaches to continuing improved access to the Japanese market.

"Japan is a key player in international trade and Australia will we using Minister Yosano's visit to discuss a range of key trade priorities this year, including both countries support for a new round of WTO negotiations. Further agricultural trade reform will be a key priority for Australia and the Cairns Group of countries", Mr Fischer said.

Leeton