Arthur Sinodinos (NSW, Liberal Party, Cabinet Secretary) Share this | Hansard source

I thank Senator Williams, my colleague from New South Wales, for his question and for his longstanding interest in agricultural matters, and indeed for the expertise he has in that regard. Sadly over time there have been fewer people in this place with that direct expertise, and I look forward to him passing that expertise on in due course to other younger people in this place.

I am happy to report that as a result of the 10th World Trade Organization Ministerial Conference in Nairobi, the 163 members of the WTO have agreed to abolish all agricultural export subsidies. This is going to be very important for Australian farmers. This is a historic achievement. As anybody with an understanding of Australian politics, with an understanding of the battles in the 1970s and 1980s over tariffs and agricultural policy, will know that one of the touchstones of that battle was the removal of agricultural subsidies, because as a very efficient exporter we have been disadvantaged by the subsidies that other countries, big blocs like the European Union, have had. What that does is dilute returns to efficient producers and it floods the market with excess supply, and that is to the disadvantage of countries like Australia.

We have one of the most efficient agricultural sectors in the world. Our farmers are amongst, if not the most, efficient in the world. For us this is a red-letter day. Export subsidies are being phased out for all sorts of commodities: sugar, beef, pork, lamb, dairy, wheat, rice, wine, fruit, vegetables, processed foods and cotton. Their abolition will permanently remove a longstanding source of distortion in global agricultural markets. It is a remarkable historic agreement which will bring to an end more than $15 billion worth of agricultural subsidies in a major win for Australian farmers. (Time expired)