Background
Australian grain farmers produce an average of 45 million tonnes of grain per annum, and with 65% of all grain production (and up to 90% in Western Australia and South Australia) exported, the prosperity of all Australian grain farmers depends on competitiveness in the international market place.
While the Australian grains industry is a leader in productivity and quality, accounting for 10-15% of world grain trade, it faces increasingly strong competition on the global market. In addition to Australia’s traditional grain supply rivals such as the USA and Canada, increasing exports from Black Sea nations such as Ukraine are proving to be more and more competitive with Australian grain especially in some of Australia’s important near markets.
Australia’s competitors have varying degrees of competitive advantage over Australian grain production including lower costs of production, faster rates of productivity growth, more efficient infrastructure, higher rates of government subsidies and support and in market promotion advantages. Increasing domestic support for grain production in the large grain producing nations of China and India, is amplifying competitive dynamics in international grain trade.
For Australian grain to remain competitive in the global marketplace must address all these competitive elements but in relation to market access it is imperative that Australia continue to pursue and support efforts to achieve a level playing field in trade. This includes pursuing preferential trade agreements with our major trading partner nations (similar to recent deals signed with China, Korea and Japan), support for an ongoing and strong WTO and development and promotion of measures that harmonise and introduce transparency to technical trade requirements.
Our Position
Liberalising markets and removing trade distortions in the global trade system is of crucial importance to both Australian grain farmers and the Australian economy as a whole. GrainGrowers is committed to the development and implementation of positive international trade and market access outcomes for the Australian grains industry and its customers.
Lowering tariff barriers, minimising non-tariff barriers, an ability to renew and review trade agreements and removing distorting domestic policy measures like subsidies are important to ensuring a free and fair trading export market for Australia.
Equally important is that government continues to play a role after agreements are signed. This includes supporting a strong biosecurity system, strong government to government relations to underpin technical access and the capacity and resources to ensure agreements are respected and adhered to over time.