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STATEMENT BY THE PRIME MINSTER. THE HON P 3 KEATING MP
URUGUAY ROUND
The Uruguay Round deal to be concluded today will deliver the largest ever world trade
deal and a much needed shot in the arm for the world economv. The OECD has estimated
that for agricultural and industrial products alone it will result in an increase in global
economic activity of up to $ 418 billion by the year 2002 when the effects will be fully felt.
Australia will benefit from enhanced market access. and more predictable market
conditions. The income gain for Australia has been estimated by the OECD at $ 2.5 billion
per year. More recent assessments by the Industry Commission suggest that there may be
as much as a $ 5 billion increase in exports and a $ 3.7 billion increase in Australian gross
domestic product. The results include:
well over $ 1I billion in increased agricuiture exports
a more than fifty per cent cut on average in tariffs across Australia's manufactured
exports. The tariff cuts on Auistralian manufactures will total at least $ 400 million.
improved conditions of trade for our mineral exports. especially coal
the biggest market access tariff cutting package ever achieved 30 times larger than
outcomes achieved from previous rounds
To these figures need to be added gains from expanded services exports and increased sales
and royalties for Australian know how.
Importantly, these increased export opportunities will translate into tens of thousands more
jobs for Australians.
Australia can justly claim credit for its role in securing these benefits. Darticuiarly in the area
of agriculture. As a leader of the Cairns Group. we have worked tirelessly with other likeminded
countries to address the distortions in world a~ zricultural markcts somethin~ z that
has eluded the world trading community for the last 45 years. The Round will see:
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a 21 per cent reduction in subsidised export volumes, an outcome that will be
particularly significant in relation to Europe and the United States, our principal
competitors in world agricultural markets
limits on the extent to which governments can artificially support inefficient domestic
industries cuts in trade barrers and improved market access for a wide range of commodities of
particular significance to Australia ( including rice. beef, dairy), and
a much more predictable and transparent trading environment through the conversion of
non-tariff measures to tariffs, together with commitments to reduce tariffs substantially.
There will be almost 50 million tonnes 1= subsidised wheat on world markets over the
period 1995-2000 than if the current level of export subsidies had continued.
The difficulties Ausukaihas experienced as a result of the US Export Enhancement
Program ( EEP) will also be reduced under the new export subsidy disciplines. Total
allocations for subsidised wheat under the EEP scheme this year were 32 million tonnes and
$ US 1 billion; by the year 2000. these will be limited to 14.5 million ronnes and $ US 364
million. Beef, rice, and other commodities will each benefit from reductions in export subsidies.
Combined with major improvements in market access, these measures open key agricultural
markets and provide for expanded production.
The Andriessen assurance protecting Asian markets from subsidised EU beef exports will
continue. We have also won a new assurance from the United Stares that FEP subsidised
rice will nor be introduced inro the newly opened Asian markets.
Once the agreement is fully implemented. Australian farmers can expect an increase in
income of around $ 1 billion per year from these reforms to world agricultural trade.
Australia is likely to receive:
an extra $ 340 million per year in beef exports with significant improvements in the US.
Japanese and Korean markets. The US Meat Import Law which has created difficulties
for Australia since 1964 will be repealed.
$ 250 million in wheaL
$ 125 million in dair-Y.
Producers of coarse grains, sugar. sheepmeat and rice are expected to benefit by up to 175
million. The decisions by Japan and the Republic of Korea to open their rice markets for the first
Lime symbolises the hiich level of commitment to achieving a positive Round outcome. I
recognise and pay tribute to the leadership displayed hy Prime Minister Hosokawa and
President Kim Young Sam on this issue. From 1995. Japan will allow in around 400. M()
tonnes of imported rice or four per cent of d6mestic production. Over the period through to
the v'ear 2000. that access will increase to 800.000 tonnes around double Australia's
current level of total rice exports. valued at around $ 230 million. 3 8 8: i
In minerals and mauatrdproducts. Australian exporters will meap major dividends
through the final across-the-board figure for tariff cuts of close to 50 per cent. And
importantly. over 75 per cent of Australia's total trade will now face ' bound" tariffs,
increasing certainty for exporters. Key outcomes include significantly improved market
access for non-ferrous metals, steel, processed foods. and a wide range of high value added
manufactured exports.
An agreement has been negotiated to improve conditions of Australia's coal trade to Europe
by eliminating trade barriers and securing reductions in subsidies on coal.
Participation, for the first time, by a wide range of developing countries in the outcomes will
bring guarantees of improved market access in some of the fastest growing world markets,
particularly those in our region.
The agreement on trade in services will provide. for the first time. international rules that
allow Australian services exports. already worth some 15 billion, to compete on an equal
footing in this fastest growing area of world trade.
The services agreement will provide important guarantees of non-discriminatory access in
telecommunications with a regional market expected to grow to over $ 110 billion.
Financial reform in regional markets should ensure continuing improvements to market
access under the GATS.
Export prospects of business services and the professions will be improved in important
markets such as legal services in Japan and insurance markets in Korea.
Australian cultural industry and intellectual iroperty innovators will receive a boost from
this outcome. Our music and film producers, writers and book publishers and computer
software industry will all benefit from intellectual property and copyright protection which
will result from the Trade in Intellectual Property ( TRIPS) agreement.
There will also be important benefits to manufacturing exporters and business from
strengthened and improved agreements on standards, anti-dumping and industrial subsidies.
On the environment, the Round is expected to result in agreement to a trade and
environment work program for the new Multilate ral Trade Organisation. The inclusion of
trade and environment in the Uruguay Round agreement reaffirms the goals set at Rio de
Janeiro last year and will facilitate the integration of trade and envirornent policies.
As I said following the Seattle Summit. I believe the GATT-and APEC will perform
complementary and mutually reinforcing functions. GATT sets the framework at the global
level, providing a set of rules to liberalise trade in goods and services, and protecting
intellectual property rights. Within this framework. APEC is there to facilitate and expand
regional trade by encouraging cooperation, a greater sense of shared interests. and working
towards harmonisation of rules and standards.
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The successful conclusion of the Uruguay Round will fundamentally strengthen the base for
Australia's economic expansion. Our export performance. one of the success stories of the
Australian economy over the last decade, can only continue to improve as industry takes
advantage of the trading opportunities presented by the finalisation of this marathon
process. The commtment of Australia, in its own right and as a leader of the Cairns Group of fair
agricultural traders, has paid off. I would like to particularly commend the efforts of our
negotiators in Geneva. ably led by Senator Cook-Their unstinting efforts in pursuing the
best possible outcome for Australia have ensured that we will benefit substantially from the
opening of trading opportunities which this historic GATT deal represents.
The Uruguay Round outcome will lead to a more open and active trading system. expansion
of economic activity, greater prosperity and employment. The multilateral trading system
has been expanded and revitalised this will serve Austr-alia well into the next century. It is
a fitting conclusion to the most ambitious multilateral trade exercise ever undertaken. We
have had 7 long years of negotiations with 100-plus countries each vying to ensure their
priorities were reflected in the final deal. It is extremely heartening that in the final days. all
participants recognised that the compromises they have made are more than made up for by
the benefits flowing from a successful overall outcome.
CANBERRA December 15,1993 3885