Andrew Leigh (Fraser, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Trade. Will the minister update the House on recent decisions in relation to the importation of apples from New Zealand? What other options have been put forward and what is the government's response?

Craig Emerson (Rankin, Australian Labor Party, Minister for Trade) Share this | Link to this | Hansard source

I thank the member for Fraser for his question and for his dedication through his entire professional career to sound economic policy, a consistency that he has demonstrated that has been sadly lacking from those opposite. Today I can report that Australia's Director of Animal and Plant Quarantine has made a policy decision to allow the importation of New Zealand apples into Australia. This decision—

Mr McCormack interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The member for Riverina is warned! And a warning is a precursor for a naming. He knows that that behaviour is out of order.

Craig Emerson (Rankin, Australian Labor Party, Minister for Trade) Share this | Link to this | Hansard source

Thank you, Mr Speaker. The decision is subject to a set of strict, science based conditions set at arms-length from government by the Director of Quarantine. New Zealand had taken a dispute against Australia to the World Trade Organisation and the World Trade Organisation ruled in November of last year that Australia's quarantine measures were not supported by science. The Gillard government is making the right decision in implementing this science based advice. Any attempt to prevent the implementation of this decision would be extremely damaging to Australian farmers. If Australia does not fully comply with the decision of the World Trade Organisation, Australian farmers will be exposed to retaliation by New Zealand. Australia exported $8 billion worth of goods to New Zealand last year. New Zealand could retaliate against any Australian products, and they would be able to raise their tariffs on Australian goods by up to 100 per cent. For example, New Zealand could choose to target the $110 million worth of sugar that we send to New Zealand every year; New Zealand could target the $10 million worth of citrus fruit we send to New Zealand; New Zealand could target the $19 million worth of pig meat we send to New Zealand; New Zealand could target the $18 million worth of beef we send to New Zealand; or New Zealand could target our exports of stone fruit, wine, grapes or vegetables. New Zealand could target the $39 million worth of chocolate that Tasmania sends to New Zealand. The World Trade Organisation rules matter—they actually matter.

I know that the Leader of the National Party does not believe World Trade Organisation rules matter, but they do—and accepted science matters. We must have a quarantine system based on science and not on the whims of politicians. Australia has actually used the WTO rules to defeat import restrictions on Australian beef and sugar. Australia is a major agricultural exporter, with more than 60 per cent of our agricultural production destined for the world export market. By refusing to comply with the global trading rules, Australia would be jeopardising its valuable export markets and the livelihoods of the farmers who depend upon them. I ask the coalition to consider that very seriously.