TL: 3. Sep. 92 8: 59 No. 00? P. 01/ 02,
STATEMENT BY THE PRIME MINISTER, THE NON P J KEATING,
EXPANSION OF UNITED STATES EXPORT ENHANCEMENT PROGRAM
The Australian Government strongly objects to the increased
allocation of subsidised wheat under the US Export
Enhancement Program ( EEP) 7id the extension of the program
to new markets, as announced by the US Administration early
this morning ( Australian time).
With US wheat exports in 1992-93 expected to be around
32 million tonnes, the announcement of a 29.1 Million tonne
allocation of subsidised wheat means that export subsidies
will now be available to cover almost all US exports in this
commodity. We deeply regret that domestic political pressures have
overridden a US commitment to the pursuit of a less
corrupted international trading environment for farm
products. The latest measures are hard to square with
assurances by the US Administration that the EEP will be
implemented in a way that minfimises the effects on
Australia's interests. They also threaten to escalate
further the trade-subsidy war between the United States and
A major concern to Australia Is the inclusion of new markets
within the scope of the EEP. Australia has frequently
argued to the United States that it should not extend the
EEP to new markets or new products. The extension of the
EEP to South Africa and Pakistan is particularly
regrettable. In Australia's view an expansion in the quantity and
coverage of the EEP sends a very negative signal regarding
the US commitment to the key Uruguay Round objective of
securing an4 effective rollback on the use of export
subsidies. TEL
TEL 2
Australia and the United States both recogrnise the critical
importance of the Uruguay Round to the liberalisation of
international trade, including agriculture, and Australia
urges the United States to recommuit its very considerable
political strength to the conclusion of the Round.
The Australian Government will register its concerns about
this announcement most strongly and at high levels with the
US Administration. The Minister for Trade and Overseas
Development, Mr Kerin, will take up these issues during a
visit to Washington later this month. The EEP will be a
major item on the agenda of the Australia-US bilateral
agricultural trade consultations which are scheduled to be
held in Canberra on 15 September.
Australia will use every available opportunity including
action in the GATT to pursue vigorously with the Units&
States and the European Community its longstanding concerns
about the use of export subsidies in agricultural trade.
CANBERRA 3 September 1992 T3E. L: 5 ep. 92 r. uz'uz