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Tuesday, 02 December 2008

Trade talks collapse bad news for Australian farmers

30/07/2008 12:49:00 PM.  | 
Australian farmers will be the losers from the failure of world trade talks in Geneva overnight, the National Farmers Federation says.

The World Trade Organisation talks, which aimed to salvage a global free trade pact, collapsed after the United States, China and India failed to agree on when poor countries could raise import tariffs on farm products.

NFF president David Crombie said the breakdown would prevent Australian farmers from selling into new and expanded markets.

"The breakdown of negotiations in the Doha Round of WTO trade talks is another dismal result for Australia's farmers and agricultural exporters," Mr Crombie said.

The collapse of the talks meant countries such as the US, India and European Union countries could maintain their export subsidies.

Agricultural domestic support limits among OECD countries would not be reduced and market access would not be improved.

"The collapse, caused by hardline demands for unacceptable flexibilities in ... market access by countries such as India, has cost Australian farmers the opportunity to export to new and expanded markets," Mr Crombie said.

With the world food shortage biting hard, Mr Crombie warned developing countries would be the "biggest long-term losers" from the world trade impasse.

This was because a greater degree of free trade would assist the world to produce the right amount, and right type, of food.

Australian farmers remained committed to the WTO negotiations, which were ongoing, Mr Crombie said.

He also thanked Australian trade minister Simon Crean for his efforts during the trade talks.

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