Speech by the Australian Deputy Prime Minister and Minister for Trade, The Hon Tim Fischer to open the 1998 Australian Agribusiness Conference

21 July 1998

Introduction

Thank you Neil Inall; ladies and gentlemen.

I'm very sorry that I can't be with you in Albury for this important conference, but happy that, through modern technology, I can play a part in your discussions over the next two days.

I'm pleased to speak to you as a primary producer myself - familiar with the challenges, and the tremendous sense of achievement and satisfaction, that work in this sector can bring. But I'm also here wearing my Trade Minister's Akubra, for agribusiness plays a major role in Australia's export efforts, and is a significant source of our national wealth.

In 1996-97, agricultural and food exports made up almost 30 per cent of total Australian merchandise exports and were valued at over $23 billion. That's an increase of around 7.5% on the previous year, and compares favourably with growth in total merchandise exports over the same period of 3.8%. To those figures, of course, can be added benefits that flow from agricultural inputs into manufactures.

The Government has, since coming to office in 1996, made the development of Australian export markets one of its top priorities. We are doing all we can to support Australian exporters through an integrated market opening strategy employing bilateral, regional and multilateral negotiations.

In particular we have pursued access bilaterally through the Market Development Task Force established by the Coalition Government. This initiative is contributing to a whole-of-government strategic effort to secure the best trade and investment outcomes possible for Australia. In its first eighteen months, the Market Development Task Force has pursued 112 priority objectives, achieving positive outcomes or measurable progress in 95 cases.

Let me give you just a few examples of gains we've won in the field of agribusiness:

• New quarantine arrangements with China for slaughter cattle from Northern Australia will open up a potential market of up to $85 million annually
• Better access conditions for UHT milk to South Korea will provide potential growth in exports of almost $100 million
• Increased market access to India through WTO negotiations has opened the way for growth in citrus, pear and peach exports by up to $20 million
• Dramatic increases in beef exports to Eastern Europe through subsidy reductions Australia negotiated in the WTO - for example exports to Russia have jumped from 9,558 tonnes for the whole of 1997 to 13,835 tonnes for the five months to march 1998 alone
• An extension of the 15 day quarantine rule to 45 days in Syria opens that market - potential sales of $40 million - to Australian fish, dairy and animal products

The Government is standing beside our exporters in overseas markets right now, ensuring Australia will win from any further freeing up of world trade. We are putting our greatest efforts into resurfacing the trade playing field, so that it tilts less towards economic giants that subsidise their industries, particularly agriculture.

And the reality at home for Australia is that increased trade means increased jobs and economic growth. If we close the door to these opportunities, such as through calls for increased protection, we are going to create enormous damage to our own future. And the agribusiness sector, with its long and proud history of export achievements, would suffer like everyone else. Let's not forget that over seventy-five per cent of our agricultural production is now exported overseas.

Trade Safeguards

But the Government is also sensitive to problems that can suddenly arise in domestic industries, particularly if they are seriously disrupted by increased imports. After all, there is no such thing as a level playing field. That is one of the reasons why the Government has just put a trade safeguard mechanism in place. In certain circumstances the Government will be able to ask the Productivity Commission to make recommendations on whether temporary trade relief measures can be put in place if there has been a significant surge in imports.

It is not clear to me why the previous Labor Government failed to put this mechanism in place, particularly when it is fully permissible under World Trade Organisation (WTO) rules. We need to play by these rules to maximise the benefits for Australian exporters - to help level that playing field. We have now rectified the situation so that Australia, like the majority of other WTO members and including nearly all OECD countries, can respond effectively when faced with a surge in unforeseen import competition.

Conclusion

As you can see, our efforts to win markets have given many benefits to Australian exporters. The Government has also taken concrete steps to improve industry's scope for seeking remedies from injurious imports through the new anti-dumping and countervailing legislation and the new procedures for safeguards investigations.

The actual sales, of course, depend on you, the business men and women of Australia. I am confident that you will continue to do Australia proud, and sustain the export growth that has made Australia the great country it is. For our part, the Government will continue its efforts to ensure that Australia's world-class producers can compete fairly in global markets.

May I close, then, by taking my hat off to all the delegates in Albury. I am sure you will enjoy the program - the line-up of speakers is excellent and their topics very important. All the best for an enjoyable, interesting and productive conference.