Pulses - An Industry for Australia's Future

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

Royal Pines, Gold Coast, 30 July 1998

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Introduction

Alan Hunter (Chairman, Pulse Australia), Alan Winney (Deputy Chairman, Pulse Australia), ladies and gentlemen.

It is always a great pleasure to be on the Gold Coast - I don't need too much inducement to enjoy Queensland's hospitality, particularly when the weather further south is decidedly inhospitable. As a lupin farmer over the years, I am especially pleased to address this conference.

Australia's push for expanded trade

As Minister for Trade, I would like to start with some words of praise for Australian exporters. Yesterday I announced Australia's export figures for the 1997-98 financial year - total exports stood at $114 billion, up 8.2% over the previous year. A terrific result from our exporters.

While there has seen some downturn in trade with our immediate region in the wake of the Asian financial crisis, rises in some regional countries like Japan, and a substantial jump in exports to Europe and the United States - up 55% and 50% respectively - have kept total exports increasing. Australian exporters are sticking with markets in Asia despite the downturn, but are also gaining through diversification.

Grain exports have followed this broad trend - down in some Asian countries, but with total exports maintained through diversification into new markets and increased sales to markets outside Asia. This is important, because some Asian markets are likely to remain subdued for some time.

The significance of exports cannot be overstated. Australia exports more than 20% of what it produces, and a much higher percentage of its agricultural produce. And exporters of pulses have put in an outstanding export performance - in 1997-98, 60% of field peas, 70% of lupins and 77% of chickpeas produced in Australia were exported. What's truly remarkable is that in the last 30 years Australia has gone from being a non-player, to being the world's second largest exporter of pulses. By 2005 we will probably be the biggest, supplying 2.6 million tonnes to world markets.

Those figures show why Australia needs to keep engaged in world markets. But the need for a healthy export orientation is not clearly understood by all parts of the rural sector.

When people argue simplistically for the resurrection of long-gone barriers to imports to solve challenges faced by Australian industries - in particular our agricultural industries - they ignore the statistics I've just quoted. And they ignore the fact that those numbers mean new markets for exporters, and real jobs for Australians. It is true that some industries have been hit by the forces unleashed by globalisation, but it would be wrong to react by seeking to return to the protectionism of the past.

The reality is that if we locked out imports, we'd see tit-for-tat retaliation against our exports. In those circumstances nations like Australia that are heavily reliant on trade, and sectors like agriculture that are proportionally more reliant on trade, would suffer most.

Pulses - an agricultural industry for our future

Your industry makes a major contribution to Australia's economic growth, employment and regional development. And you are also an innovation leader - for example, in gene technology, an area where scientific advances are now reaching into the commercial world. Gene technology in pulses is, of course, already highly advanced, reflecting the fact that your export success is based on combining vigorous research with far-sightedness and unswerving commitment to quality.

I also congratulate the industry on its leading role with quality assurance. With the international market's increasing sophistication and intensifying competition, Australia's farmers and growers can expect an even stronger focus by importing countries on quality control. It is particularly timely, therefore, that your industry has cooperated in the establishment of the Quality Farms Australia organisation, which will coordinate and encourage the development of a practical and consistent quality assurance system for the Australian farming industry. This is typical of the great gains your industry has made to date, and I urge you to continue to meet the international challenges.

Commitment to Regional and Rural Australia

The Government recognises the difficulties faced by many in rural and regional Australia, and is working actively to secure a strong, vibrant future for rural industries. Tonight I'd like to mention two recent announcements of particular relevance to rural communities.

The first is the Government's Action Plan for Australian Agriculture launched last week by my colleague John Anderson, Minister for Primary Industries and Energy. The Plan provides a framework for industry, government and communities to work together in the best interests of Australian agriculture. The vision behind the Action Plan is that within ten years Australian agriculture will be based on profitable, competitive and sustainable family farm businesses that are recognised as world leaders in their production efficiency, product quality, innovation and ability to meet market needs.

The second matter I'd like to mention is the Government's commitment to an inclusive approach to on-line and electronic commerce opportunities for regional Australia. Yesterday my colleague Richard Alston, Minister for Communications and the Information Economy, announced the Government's draft strategy for the information economy. It clearly provides for regional Australia to gain first-hand experience of the challenges and opportunities offered by the information economy, to be facilitated through a series of high-level Regional Summits to be held over the coming months.

Trade safeguards for our industries

Australia plays by the rules of the WTO to maximise the benefits for Australian exporters - they deliver predictability, stability and fairness to the world trading system, and we'd undoubtedly be worse off without them. But we can also use existing rules to ensure the interests of competitive Australian businesses are not jeopardised by unfair practices. There is no such thing as a truly level playing field, and until one is developed the Government will guard against sharp practice by foreign producers.

Recently the Government has also established a trade safeguard mechanism. Under this new procedure, if there has been a significant surge in imports we can ask the Productivity Commission for recommendations on whether temporary trade barriers can be set up.

The importance of commitment to open markets

Australia's prosperity depends on increased market access. To ensure the best possible access for our farmers and other exporters the Government pursues an integrated trade strategy - in the multilateral processes of the WTO where we are pushing for new trade negotiating round to being next year, in regional mechanisms like APEC, and through our very important bilateral trade effort which this Government has reinvigorated through initiatives such as the establishment of the Market Development Task Force.

Through our bilateral approach on trade the Government has also delivered important wins on pulses. For example, in Bangladesh we have secured lowered tariffs on dunpeas - from 42.5% down to 30% - and on other pulses from 15% down to 7.5%. Bangladesh had been taking action to stop tariff fraud, but in the process threatened Australian exports which in 1996-97 alone exceeded $61 million. As a result of our action we have helped to secure those very valuable pulse exports.

There are other, important trade wins, all bringing extra dollars to Australian exporters, or maintaining existing trade levels. Some successes are the result of practical initiatives I have introduced to help Australian exporters. For example, the Department of Foreign Affairs and Trade now has a specialist team that works with food and beverage exporters on the barriers they face.

Projects under the Prime Minister's Supermarket to Asia Council will also improve business for farmers and other exporters. For example, beef and dairy exporters can now submit a single electronic form for all Customs and AQIS requirements - one form instead of the many previously required, and lodged by computer. This saves time and money for exporters, and will be extended to other sectors over time.

Conclusion - Government needs industry advice

A final word now, about future directions. We expect the 1999 WTO Ministerial Conference to launch the new round of negotiations on agriculture. This is a major opportunity for Australia, but we will need to work hard to extract the reforms we need as an exporter of food and agricultural products.

That leads me to the role industry can play. During the Uruguay Round, the Government's partnership with industry was crucial in ensuring the best possible outcome for Australia. Close cooperation will be equally important in the next round of multilateral negotiations. We are tapping into this through extensive consultations with industry. Discussions on broad strategic and tactical questions are already taking place in the Agricultural Trade Consultative Group which I chair with John Anderson, complemented by consultations with individual sectors.

I can assure you that the Government will continue to put in the 'hard yards' at all levels - bilateral, regional and multilateral - in the months ahead. The rewards to Australia's farmers from further removal of barriers to trade and greater market access, and the benefits that will flow through to the community in more jobs and greater prosperity, will be immense.

Grain Legume Awards of Excellence

Now, to the business end of the evening - the presentation of the Elders and CLIMA (Centre for Legumes in Mediterranean Agriculture) Grain Legume Awards of Excellence. Before the names are announced, I'd like to add my own congratulations to tonight's award winners - you are the leaders in an industry which itself is at the forefront of innovation in Australian agriculture. Well done!