The incoming Japanese Prime Minister Yukio Hatoyama’s staunch protectionist views on agriculture are likely to affect the Queensland economy and test Prime Minister Rudd’s already questionable negotiating skills at the next round of Australia-Japan Free Trade Agreement talks in September, Queensland Senator Russell Trood, the Chair of the Senate Foreign Affairs, Defence and Trade References Committee said today.
The Senator said the Rudd Government will need to work hard to secure Australia’s trade interests, and ensure the longevity of Queensland’s agriculture because the Democratic Party of Japan are strongly committed to opposing any free trade deal which could threaten Japan’s farming sector.
“It has been a major part of their election platform and it is not something they will compromise on lightly, especially given the very strong mandate the Japanese people have given them over the weekend.”
Japan is Queensland’s largest merchandise export market – sales to Japan represented 26% of the State’s total exports last year. The largest agricultural commodities are meat, dairy and wheat.
“Queensland’s agricultural exports to Japan are worth more than $9 billion dollars, but they could be worth a lot more if Japan relaxed its tariffs,” Senator Russell Trood said.
“Negotiating a Free Trade Agreement which would be conducive to Queensland’s prosperity with the new Japanese Government will be a great challenge for Minister Crean and Prime Minister Rudd, and one they should be careful not to underestimate.”
Currently, Australian beef is hit by tariffs of up to 50% entering Japan, wheat has a tariff of about 250% and is restricted in its use, and the tariff on rice is more than 700%.
Senator Trood said any free trade agreement which does not tackle agricultural trade barriers should not be acceptable to the Australian Government, but said he is worried about the ability of Prime Minister Rudd to secure Queensland’s interests.
He said the fact that the Australia-Japan Free Trade Agreement talks are now in their 28th month is indicative of the fact that Prime Minister Rudd has failed to build on the strong relationship with Japan he inherited from the Coalition Government in 2007.
“The Prime Minister’s conspicuous emphasis on China as Australia’s most important great power friend in Asia – which, as it is now clear, has yielded little diplomatically for Australia – has seriously offended the Japanese,” Senator Trood said.
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