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BAE study confirms government trade stand

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2 September 1985


The ^Minister for~ Pr imafy ~"Industry Mr 'Johh Ker irP’ and the Minister for Trade, Mr John Dawkins today applauded the release of the BAE Study on the EC's agricultural policy.

The Ministers said that the study clearly quantifies the problems that the Common Agricultural Policy is causing to the international economy and provides hard evidence in support of the position adopted by Australia in its negotiations with the European Commission.

Mr Kerin and Mr Dawkins said noted the study's conclusion that the CAP cost Australian farmers $1 billion a year. -They said that this reinforced the fact that the CAP was the number one problem faced by Australian farmers in their attempts to obtain reasonaole returns for their products on the

international market.

"The CAP is also the number one problem facing agricultural trading nations in general and is having devastating affects on the economies of third world nations," the Ministers said.

"Given that the policy and the effects it is having on the international economy is also hurting the EC's internal economies, CAP is a misdirected luxury that international trading can no longer afford," they said.

The Ministers agreed that there was little direct action that Australia could take without causing harm to itself.

"We have always said that retaliatory trade action would be ineffective in bringing change in the EC's Policy but this study provides us with solid objective data on the broad ramifications of the CAP," they said. -

"The Government will use this information to have agricultural trade included in the next round of Multilateral Trade Negotiations and in our bilateral discussions with the EC," they said.

Tne Ministers said that it was opportune that the study has been released now with the vistit to Australia of the Deputy President of the European Commission, Mr Frans Andreissen, next week.

"Clearly the CAP is a juggernaut out of control and this needs to be emphasised in our talks with Mr Andreissen," they said.

"The Government is confident that the release of the report in Europe next month will stimulate considerable debate within the EC on alternative policies," the Ministers stated.

CONTACT: Walter Pearson (062) 72 6649 85/48