Fed: Bilateral trade talks needed to beat US subsidies: Kelly

AAP General News (Australia)
12-21-2001
Fed: Bilateral trade talks needed to beat US subsidies: Kelly

By Shane Wright

CANBERRA, Dec 21 AAP - Australia should open bilateral trade talks to beat heavily
subsidised American sugar exports, a federal National Party MP said today.

De-Anne Kelly, who heads the government's sugar task force, said it was obvious the
United States would maintain its high levels of assistance to its own farmers.

The Bush administration agreed last week to exclude sugar protection measures from
any free trade agreements it might struck with other nations.

A farm bill now before the US Senate would also maintain high payments to sugar producers
and other farmers.

Mrs Kelly, MP for Dawson in Queensland, said Australian sugar farmers, who received
no help, had to find new markets to beat the US and its subsidised products.

"It is clear that the US is determined to continue its protectionist stance for its
farmers whilst at the same time trying to appeal to lead a push for free trade," she said
in a statement.

"To exclude sugar from any free trade agreement is a further demonstration of the US
determination to further protect their already feather-bedded sugar producers."

Mrs Kelly said an American sugar producer received assistance worth $A900 per tonne.

The MP has written to Trade Minister Mark Vaile, asking him to create a sugar export
working party.

The working party would determine a strategy to deal with the ramifications of the
US farm bill, and to find new markets.

Mrs Kelly said that had to include bilateral trade agreements.

Meanwhile, Grains Council of Australia president Keith Perrett said delays in the passage
of the farm bill was good news for Australian farmers.

He said the bill, which US farmers had hoped would be passed this week, may not be
approved until March.

Under the bill, US farmers would receive at least $A340 billion over the next 10 years.

"The hope is that with a deteriorating US budget position the final US farm bill will
not be as generous to one of the leading agricultural producers of the world as it might
have been," he said in a statement.

"The delay also provides Australia the opportunity to address the US policy makers
on the inequities of their proposal and to seek a less distorting outcome."

AAP sw/daw/hu/br

KEYWORD: US TRADE AUST

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