11, AUSTRA, L[ IA&
PRIME MINISTER
FOR PRESS 29 MAY 1979
AUSTRAIJIA/ E . E BILATERAL
TRADE NEGOTIATIONS
I am pleased to announce to the House that today, a settlement
has been reached on bilateral trade negotiations between
Australia and the European Economic Community, held under the
umbrella of the GATT round of MTN.
Honourable Members will recall that Mr Anthony recently
concluded trade agreements with United States of America and
Japan and that these were signed last month.
The negotiations with the E. E. C. now complete the MTN operations
in relation to our three major trading partners. This agreement
follows several months of intensive negotiations in Europe
and meetings inCanberra over the-past two.
days between the Minister for Special Trade Representations,
Mr Garland, and the Vice President of the E. E. C. Commission,
Mr F. 0. Gundelach.
These discussions have resolved all of the outstanding issues
related to a bilateral settlement between Australia and the E. E. C.
in the context of the Multilateral Trade Negotiations. The
final agreement however, will be subject to confirmation by the
Australian Government and the E. E. C. Council of Ministers.
This agreement will provide Australian exporters of agricultural
commodities, especially beef and cheese, and industrial products,
with improved marketing opportunities in the opportunities
of a more favourable nature than we have enjoyed to date.
In return, Australia has offered a number of concessions on
agricultural and industrial items of interest to the Community.
Mr Garland will shortly be making a statement on the broad outlines
of this agreement and full details will be announced once the
package has been endorsed by the Government and the E. E. C. Council
of Ministers. 2/
-2-
I recall with some satisfaction that it was during my visit
to Europe in mid 1977 that agreement was reached with the
President of the EEC Commission, Mr. Roy Jenkins, to open
high level trade discussions between Australia and the
Community. This had followed personal representations I made to
Mr. Jenkins and the heads of key EEC member governments
regarding the serious and growing imbalance in the EEC's
favour of trading opportunities with Australia, and the
effects which EEC export subsidies on agricultural products
were having on Australia's trade in markets outside the
Community. Australia's trading opportunities in the EEC and particularly
for agricultural products had diminished dramatically since
the formation of the Community.
It was the objective of this Government firstly to arrest that
decline and secondly to gain assured, increased access for our
primary products.
Australian Ministers and particularly Mr. Howard and
Mr. Garland in addition to Mr. Anthony and myself, pointed
repeatedly to the justice of the Australian case.
I believe as a result of the informed debate which this
occasioned there has been increasing acceptance in Europe of
the basic correctness of the Australian position.
We did not seek to overthrow the Common Agricultural Policy.
It is a corner-stone of the European Economic Community. But
we did argue quite successfully that the Common Agricultural
Policy could and should be amended to take account of the
legitimate trading interests of countries such as Australia.
I note as a matter of record that it was this Government that
first presented the Australian case in these terms. This is in
stark contrast to the ineffective attitude of the Opposition
when it was in government. That attitude unfortunately has
persisted in equally ineffective denigration of the now
successful efforts of this Government on behalf of Australian
producers. / 3
I said earlier that we did not seek to overthrow the basis
of the Common Agricultural Policy. As a result our requests were
moderate and in quantative terms the gains may fairly be
described as modest in relation to the total world trade in
the commodities concerned. But this is the first step forward
that we have taken in this area for many, many years. I look
forward to further such steps. I regard this as a beginning and
certainly not an end of a process of continuing change to the
advantage of Australian primary producers and indeed all
Australians. The first stage of our efforts with the EEC has been brought to
a successful conclusion and I have agreed with Mr. Gundelach
this afternoon that the dialogue between Australia and the
Community will remain open at the highest level and that
problems will continue to be dealt with as and when they arise.
It is significant that Vice-President Gundelach, who is also
the Commissioner responsible for Agriculture, and had been so
closely involved in the negotiations with Australia has come
to Canberra to see to their finalisation.
Mr. Gundelach is the most senior Commission representative to
have visited Australia.
The achievement of a satisfactory outcome to the long and
difficult negotiations has been aided by the close working
relationship which has developed between Mr. Garland and
Mr. Gundelach.
I would also like to pay tribute to the active role played by
Mr. Garland in working to secure the final result.
These are all signs that Australia and the EEC are on the
threshold of a new and better trading relationship.
Both sides can I hope look forward to a relationship which is
marked less by difficulty and confrontation and which builds
further upon the undeniable scope for significant increased
trade and economic co-operation. oo000oo