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Tuesday, 3 August 2004
Page: 25351


Senator BRANDIS (2:17 PM) —My question is to the Minister representing the Minister for Agriculture, Fisheries and Forestry, Senator Ian Macdonald. Will the minister outline to the Senate how the policies of the Howard government are winning greater access to world markets for our farmers? Is the minister aware of any alternative policy approaches?


Senator IAN MACDONALD (Minister for Fisheries, Forestry and Conservation) —I thank Senator Brandis for that question. In passing, I congratulate him on the work he has done on the Select Committee on the Free Trade Agreement between Australia and the United States of America. Having been able to convince the Labor Party to see sense on that agreement is a great achievement.

The Howard government has negotiated this free trade agreement with the United States and that will mean big dollars and a huge boost for our primary industries. The agreement offers enormous opportunities for closer integration with the world's greatest and largest economy. Indeed, CIE says that primary production will benefit by upwards of $600 million annually. Two-thirds of all agricultural tariffs will go immediately. Lamb, sheepmeat and horticultural products tariffs will be eliminated straightaway. A further nine per cent of tariffs will be cut to zero within four years. The beef quota, currently 378,000 tonnes, will be substantially increased by something like 19 per cent over 18 years. Our exports of dairy, currently worth about $40 million, will increase to around $55 million. For the wool industry, there will be zero tariff for greasy wool immediately. There will be immediate tariff treatment for horticultural products—oranges, mangoes. The citrus industry will be saving nearly $700,000 alone in duties. Senator Brandis would be very familiar with the citrus industry, having visited Emerald during the break, looking at the difficult citrus canker problem up there.

Australia will have immediate access to the US market for up to 4,000 tonnes of avocados. We will get immediate zero tariffs for wheat and cereal flour—and so the statistics go on. Seafood, which relates to my portfolio responsibilities, currently worth around $140 million, will enter the market absolutely tariff free from day one. The immediate removal of the 35 per cent tariff on canned tuna will provide duty-free access to the $650 million US market. That could be worth something like $20 million to the tuna farmers in South Australia. Indeed, the CEO of the Tuna Boat Owners Association of South Australia, Mr Brian Jefferies, was quoted as saying that this is an opportunity that comes along probably once in a lifetime. Tuna boat owners are absolutely delighted with the free trade agreement.

I am asked whether I am aware of alternative policies. I know that all of the Labor premiers in Australia support the free trade agreement. I am still not quite sure what the Labor Party understand about the free trade agreement. I heard Senator Sue Mackay this morning say that she was totally opposed to it. I heard Senator George Campbell on the radio this morning. I also heard Senator McLucas, who is from up my way, disagreeing with the Queensland Labor Premier and saying that she was totally opposed to it. I do not know where the Labor Party are. Apparently they have agreed to it subject to conditions, but who knows where they are?

It is such a good deal for Australia. It would have seemed a first-rate opportunity for the Labor Party to get on board and support something that will mean big money for Australian primary producers. I am delighted that the Howard government has been able to initiate this. I urge the Labor Party to get on board unconditionally.