WTO/multilateral trade policy

Background:

Australian farm gate returns are heavily influenced by international market conditions and the opportunities open to exports. However, world trade is a small component of dairy production and trade flows/access rights are heavily distorted by the trade policy positions of major countries.

The World Trade Organization (WTO) is the major international forum for addressing trade policy adjustment/reform, and holds periodic negotiating sessions on reform options and deals. The dairy industry has agreed that its commercial objectives in this forum will be addressed through collective rather than private actions.

Project objective:

Improve export market balance and opportunities for Australian dairy and, through this, raise the underlying average farm gate price paid for milk by supporting Australian government trade reform negotiations in the WTO, and securing high priority for dairy interests in negotiated outcomes.

Project scope:

DA will maintain a trade policy secretatiat that coordinates industry analysis of trade reform opportunities, develops industry agreed positions on these reforms, and provides assistance to government negotiators and broader industry groups in WTO negotiations.

Parrallel to formal negotiations, DA will coordinate the establishment and maintenance of industry alliances that foster trade reform consistent with Australian dairy priorities and provide information/ briefings to stakeholders on trade policy issues.

Outcomes/benefits:

Improved Australian company profitability, and higher average farm gate returns for milk resulting from high priority given to dairy interests by Australian trade negotiators, and improved acess rights for priority dairy products in targeted markets.

Specifically this would translate to a WTO Doha Round outcome that will deliver a permanent 3% improvement in the underlying farm gate price paid for export-exposed Australian milk production.

More information:

For more information contact Chris Phillips Group Manager Trade & Strategy.