Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Hansard source

'Hear, hear,' I hear the chamber say! Wine exports to Japan were worth an estimated $42 million last year. Australian wine is currently at a disadvantage to Chilean wine. Under their partnership agreement with Japan, Chile secured tariff elimination over 12 years. It is a great result for Australian wine producers, such as De Bortoli and Casellas, in the Riverina that the 15 per cent tariff imposed on our wine will be eliminated over seven years under this agreement. When I bring the member for Kingsford Smith some Coolamon cheese, I will have to bring him some Riverina wine as well!

Honourable members interjecting—

You can hear that the chamber is so excited about the prospects for these small Riverina farmers!

Our grains—including wheat, barley and sorghum—and their milling products are one of Australia's biggest agricultural exports to Japan, worth $770 million last year. Wheat on its own was worth $356 million, making Japan our fourth largest wheat market. Wheat is so important. It is so critical to the Riverina. Whilst we normally want rain—and lots of it—because there is money in mud, at the moment we just want dry and clear skies because our farmers are busy stripping. Riverina farmers on their headers listening to this broadcast know how valuable and good our wheat is in the Riverina—and elsewhere.

Japan's grain trade is highly regulated. While there are relatively low tariffs on grain, there are complex tendering arrangements, WTO quotas, duties and other mark-ups. Outside this quota system, wheat for food and feed faces prohibitive tariffs when quotas have been met. Under the economic partnership agreement, Australian grain growers will exclusively be able to immediately export wheat and barley for feed duty free outside of the existing quota system as well as have streamlined export arrangements for some Australian wheat varieties. This is another win for Riverina grain growers. With the rise of a bulging middle class across Asia, Australian growers have a premium product for a premium market which poses little threat to local regional growers across Asia, so crucial to economic growth in developing nations. This partnership agreement with Japan presents increased opportunities for Australian producers, who will inject high-quality products into new and existing markets.

By establishing and building upon our existing strong trade relationship with Japan, this coalition government is achieving results. Farmers, industry and regional Australia can only get stronger and better because of what we as a government are doing. We are kicking goals. We are doing what we said we would do. We are getting access to these rich Asian markets. I commend the trade minister, Minister Robb, for what he has done to forge these relationships. I can only commend these bills to the House. They are very important. They are certainly important for Australian farmers. When Australian farmers are strong, so too is our nation.

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