Media release

Australian Minister for Trade, Mark Vaile

September 01, 1999

Vaile Talks Sugar with Brazil

Trade Minister, Mark Vaile, today said Australia and Brazil share a special interest in seeking freer international trade in sugar.

Mr Vaile was speaking on the first day of his working visit to Brazil following discussions on international sugar trade issues with the Brazilian Minister for External Relations, Felipe Lampreia and Agriculture Minister, Pratini de Moraes.

"Establishing a close dialogue with Brazil, the world's largest sugar producer, is vital to the wider interests Australia has in genuine reform of the international sugar trade. Unfair tariffs and quotas mean that sugar users in countries like the US and the EU were not receiving the benefits of lower world prices because their inefficient domestic industries are shielded by massive protectionist measures," Mr Vaile said.

Mr Vaile said Australia and Brazil had agreed to cooperate closely in the lead up to the WTO Seattle Ministerial meeting to ensure that such barriers were fully on the table as part of the upcoming agriculture negotiations.

"I was able to brief Brazilian Ministers on the work being carried out jointly by the Federal Government and the Queensland Sugar Corporation on the positive impact that breaking down international trade barriers would have for sugar exporting countries like Australia and Brazil. The Brazilians liked what they heard and agreed we needed to stay in close touch."

Mr Vaile said a joint Australian government/industry study was currently being prepared as part of Australia's strategy in the lead up to Seattle to build a coalition of sugar producers and users to achieve freer sugar trade. He said he had also briefed the Cairns Group of agricultural fair trading nations about the sugar study at the Ministerial meeting in Buenos Aires, Argentina, last weekend.

Mr Vaile said he also spoke with Ministers on the current state of the Brazilian sugar industry.

"Agriculture Minister de Moraes told me they were anticipating a significant drop in sugar production next year. The Brazilian government is also currently examining the possibility of using a greater share of ethanol derived from sugar in petrol and diesel.

"I will be continuing to watch developments in Brazil given the significance of sugar production in Brazil to international prices," Mr Vaile said.