PRIMEUSMINISTER
FOR MEDIA 17 June 1985
The US Government's recent announcement of a
program of export assistance for US agricultural exports
has wide-ranging implications for international trade in
agriculture. The US export enhancement program is
intended to increase US agricultural exports and challenge
unfair marketing practices.
As this program has evolved, the Australian Government has
brought to the attention of United States' authorities our
concerns about the program and identified legitimate
Australian interests which could be affected by it.
On 6 June I wrote to President Reagan, drawing attention to
these interests and recalling discussions on this subject
which I had in Washington in February.
Last week, John Kerin discussed the matter with US Secretary
of Agriculture, John Block, as a follow-up to a letter which
Mr Kerin had sent to his US counterpart on 22 May.
In these various representations there are three points that
we have sought to stress:
We appreciate the frustrations with unfair agricultural
practices, particularly those of the European Community,
which have in part led to the United States' program.
our own agricultural sector has for a number of years
been severely affected by the use of EC export subsidies.
We would hope, and expect, however, that the program
would be targeted, both in terms of products and regions,
in such a way as to minimise the damage to countries,
such as Australia, that are efficient and competitive
suppliers.
We wo'ild have preferred that the problems to which this
program is directed were dealt with in a broader
negotiating framework.
This last point is crucial. Indeed, any success the US
export enhancement program might achieve will rest on its
ability to bring other trading countries and blocs to the
negotiating table, where the distortions in agricultural
trade can be properly addressed.
This is an ultimate goal which we share with the United
States if, as is the Administration's intention, their own
farm sector is to become more market-oriented.
In our approaches to the US Government we have received
encouraging assurances that in the implementation of the
export enhancement program the interests of countries such
as Australia will be taken into account. The process of
consultation will take tangible shape tomorrow when
Australian officials and a representative of the Australian
Wheat Board meet in Washington with representatives of key
Departments of the United States' Administration.
My Government attaches considerable importance to this
question and, should the need arise, an opportunity to discuss
it further will be presented when Secretary of State,
George Shultz, visits Australia in July.
The United States sees this new initiative as the only
alternative left if it is not to lose further its share of
the world market. Australia is not in a position to
meet subsidy with subsidy. Our markets are under a potential
threat. It is against this background that we will continue
in our constructive efforts to help bring the international
trading community to the negotiating table for the purpose of
establishing fair rules for trade in agriculture which all
nations will adhere to. This is the only effective and
equitable way of dealing with the serious problems we now
face.