Winning in international markets

Because expanded trade access to global markets is crucial to the future of Australia’s agriculture and food sector, the Australian Government must:

a) maintain an ambitious approach to agricultural negotiations in the World Trade Organization, placing particular emphasis on removing market access barriers
b) strengthen and, where necessary, realign its strategic alliances, to advance the national interest in future multilateral negotiations on agriculture
c) continue to pursue bilateral and regional free trade agreements, provided they complement and are not a substitute for multilateral trade reform
d) do more to tackle technical barriers to trade, including in new and emerging markets
e) continue unilateral reform across all sectors of the domestic economy and remain at the forefront of international advocacy for agricultural trade liberalisation
f) in partnership with representative organisations, work to create a better understanding among farmers and the broader community of the benefits of international trade reform.

Government response

Recommendation 1(a)
Agree.

The Doha Round, despite its recent suspension, remains the Australian Government’s highest priority in international trade negotiations. The Government will work toward re-engagement in negotiations. It will pursue vigorously substantial reductions in trade distorting domestic support, expansion of market access and the elimination of export subsidies through the World Trade Organization’s agriculture negotiations. Australia accords extremely high priority to delivering new commercial opportunities to Australian farmers through the Doha negotiations. 

Recommendation 1(b)
Agree. 

The Australian Government has built and maintained strong alliances in multilateral agricultural trade negations, particularly through Australia’s chairing of the Cairns Group and membership of the G6 (comprising the United States, the European Union, Japan, India, Brazil and Australia). Regular cooperation through other like-minded groups, such as the G20, has been valuable in advancing Australia’s position in trade negotiations. Australia has been a key participant in trade negotiations and will continue to advocate the importance of small group processes working to raise the level of ambition in the negotiations. Industry will also need to remain active in building and maintaining strategic links with other agricultural groups to advance Australia’s interests, such as through the Cairns Group Farm Leaders, Global Sugar Alliance, Global Dairy Alliance, and other trade reform oriented industry alliances.

Recommendation 1(c)
Agree. 

The Government’s pursuit of free trade agreements (FTAs) is part of its comprehensive strategy for expanding markets for Australian goods and services through multilateral, regional and bilateral negotiations. 

In addition to bilateral FTAs that have come into effect with New Zealand (from 1983), Singapore (2003), Thailand (2005), and the United States (2005), Australia is negotiating further bilateral or regional FTAs with China, Malaysia, and ASEAN New Zealand, as well as conducting an FTA feasibility study with Japan. The Government is also giving consideration to an FTA with the Gulf Cooperation Council (GCC).

Australia remains a strong and committed member of the Asia-Pacific Economic Cooperation (APEC) forum, which plays a valuable role in promoting economic openness and reform in the region.

Recommendation 1(d)
Agree. 

The Government considers that resolution of technical barriers to trade can be as important as tariff liberalisation in accessing specific markets and can enable gains from liberalisation to be realised.

The Government works to identify and resolve these impediments for both existing and emerging markets. Additional resources have been devoted to resolving technical barriers to trade for agricultural products, including new agriculture counsellor positions in China, India, Indonesia and Thailand. These positions are in addition to existing technical agricultural positions in other key markets such as Japan, Korea, the United States, Europe and the Middle East.

Significant effort is also invested in developing and influencing international standards, through organisations such as the Codex Alimentarius Commission, the World Organisation for Animal Health (OIE), the International Plant Protection Convention (IPPC) and the Organisation for Economic Co-operation and Development (OECD), as a way of ensuring that technical standards are applied consistently and do not become barriers to trade.

The Government will continue to work closely with industry stakeholders to identify technical barriers to trade in agricultural products and to advance strategies that will maintain or improve access to important markets.

Recommendation 1(e)
Agree.

From the floating of the Australian dollar in 1983 to banking deregulation and tariff liberalisation, Australia has been an international leader in domestic reform. The Australian Government remains committed to reform across all sectors of the domestic economy. The National Competition Policy (NCP) reforms are designed to enable and encourage competition to improve the wellbeing of Australians. NCP is helping to create an Australian economy that is efficient, dynamic and innovative, delivering competitive goods and services, and economic and employment growth.

On 10 February 2006, the Council of Australian Governments (COAG) agreed that Australian governments will work together to deliver a new National Reform Agenda (NRA), comprising human capital, competition and regulatory reform streams.

• COAG agreed under the competition and regulatory streams to progress reforms in the key areas of energy, transport and infrastructure regulation and best practice regulation. COAG noted that the NRA has the potential to deliver over the next decade benefits of the same, or even greater, magnitude as those achieved in the last decade from the implementation of NCP and related reforms.
• The Productivity Commission estimates that the observed productivity and price changes in key infrastructure sectors in the 1990s — to which NCP and related reforms have directly contributed — have increased Australia’s GDP by 2.5 per cent, or $20 billion.
• More information on the NRA can be found at http://www.coag.gov.au/.

The Government will remain at the forefront of international advocacy for agricultural trade liberalisation which it pursues in multilateral, regional and bilateral forums.

Recommendation 1(f)
Agree. 

The Government will continue to consult regularly and widely with Australian farming industry bodies and industry sectors in determining trade negotiation priorities and approaches. The Government will also continue its regular public information efforts aimed at creating a better understanding among farmers, business and the general community about the benefits to all Australians from domestic and international trade reform. The Government will also work with key industry organisations such as the National Farmers’ Federation to advance understanding of Australia’s key trade policy objectives and strategies.