Media release

Australian Minister for Trade, Mark Vaile

Wednesday, July 12, 2000
MVT72b/2000

Welcome Decision on EU Pork Export Subsidies

Trade Minister, Mark Vaile, this morning welcomed confirmation that the EU had moved to stop subsidising exports of fresh pork.

Mr Vaile said the move was great news for Australia's pork industry that had been facing competition from heavily subsidised Danish pork in the domestic market.

"Despite this competition from Danish pork, farmgate returns for our pork producers have remained firm thanks to our strong export performance into key Asian markets such as Singapore and Japan," Mr Vaile said.

"The decision by the European Commission should reinforce the recent downward trend in Danish pork imports, already reduced by more than a third from their peak in March.

"Pork subsidies were one of the key concerns that I raised with EU Agriculture Commissioner, Franz Fischler, during our meeting in Brussels on June 29. I stressed that these type of subsidies distorted trade and unfairly damaged domestic markets."

Mr Vaile said the decision showed that the World Trade Organisation was working for Australian farmers.

"A significant portion of the subsidies that has been removed is directly related to the EU's subsidy reduction commitments in the WTO.

"The decision demonstrates that WTO commitments on agriculture are having a beneficial impact on the trade environment facing Australian farm producers and underlines the importance of the Cairns Group's recent WTO negotiating proposal to eliminate export subsidies."

Mr Vaile said Australian pork producers' export efforts were particularly impressive.

In the 12 months to May, pork exports topped 40,000 tonnes, worth $162.5 million - more than double the previous year's figures.