Transcript of opening comments to the Joint Standing Committee on Trade and Investment Growth by Chris Young, NFF General Manager, Trade & Economics.
Good morning committee. On behalf of the ³Ô¹ÏÍøÕ¾ Farmers Federation, thank you for the opportunity to appear today. As mentioned just then, I’m Christopher Young. I’m the NFF General Manager of Economics and Trade, and the NFF is the peak body representing farmers and agriculture across Australia.
The success of agriculture in Australia is intrinsically linked to international trade. In 2022-23, agricultural exports reached $80 billion, with more than 70% of total produce exported, with 80% of that exported to countries that are covered by free trade agreements (FTAs).
I think in seeking to best communicate the benefits of this to the community, it’s probably worth just taking a moment to look back. Both the macro- and micro-economic reforms of the 80s were implemented in no small part on the understanding that Australian producers would be able to capture opportunities in international markets.
The removal of price supports, collective purchase and marketing arrangements was painful for many, but was predicated on the absolutely correct notion that a deregulated sector with exposure to international markets would lift our competitiveness, and it has. It’s against this backdrop that Australia’s FTAs form an incredibly important element of the sector’s success today.
As previous witnesses have outlined to you all, progress in liberalising multilateral trade via the WTO has largely stalled. Hence, multilateral arrangements now afford the most immediate avenue to improve the trading environment for Australian goods and services, very much including agricultural products.
Since 2000, we’ve signed 18 FTAs, the majority of which being in East and Southeast Asia. This was led by our world class negotiators, with industry support. From a whole of sector perspective, this interwoven web of arrangements, puts upward pressure on the farm gate prices received by our producers and improves their resilience to individual shocks in markets.
Regarding our sector’s understanding of the benefits of FTAs, it is undoubtedly very high. From producers on the ground who recognize that their spot- and forward-contract prices are so often underpinned by international market access, to industry bodies like the one I work for, who dedicate time and resources, to trade, its importance is lost on very few, nonetheless, there do exist challenges to their full utilisation.
A number of my colleagues from our commodity members have presented to you that there are deal-specific issues, such as the erosion of first signatory advantages, non-tariff barriers and technical access issues. But more broadly, the global trading framework, which these FTAs exist within, is under pressure.
The geopolitical, institutional, and monetary stability which have served our sector very well, are all being challenged. And while I outline that the understanding of the benefits of FTAs are high within our sector, it is imperative that we all, particularly against these global challenges, continue to promote their benefits to the broader community and fend off any creeping protectionist tendencies.
To this end, this inquiry. Is incredibly timely, our submission has provided you with a number of recommendations that we think will be useful, and I thank you again for inviting me today.
For a copy of the NFF’s submission to this inquiry, click here.
