27 January 2009
Interview with Alexandra Kirk on the ABC Radio The World Today program
Subjects: European Commission re-introduction of dairy export subsidies
SIMON CREAN: Well we're going to try and stop it. Countries have signed off on the principle of ending export subsidies but without a Doha deal, they're still legal. Now, of course, the Europeans are doing what they're doing, they can claim, it's possible to be done under existing rules. We say, yes, but we've got to commitment in principle to not do it, and more importantly, we have taken a commitment to ensure that we don't revert to protectionist tendencies within this global economic slowdown.
ALEXANDRA KIRK: And how damaging will the increase in the export dairy subsidies be to Australia's dairy industry?
SIMON CREAN: It depends how they apply it and it's unclear at this stage how it will be applied but it's damaging for two reasons. First of all, it's breaching the signal that all countries signed up to opposing and that was no reversion to protectionist policies. Secondly, it runs the risk of reactive responses - other countries evoking it in response.
Now the last thing we need with the world economy slowing is to take steps that exacerbate that slowing. It's counter-intuitive but people think that when the economy is going bad, what you've got to do is to move back to protectionism. What you've got to do is to liberate those markets.
You've got to open them up more than ever because world trade grows faster than world output. And if you're trying to get the maximum impact from your fiscal stimuluses, and all of your activities that generate domestic activity, what you must do is to open up the trade flows, not start to close them up.
ALEXANDRA KIRK: How vehemently will you oppose this move?
SIMON CREAN: We'll oppose it very strongly. It's not just us, it's the whole of the Cairns Group that have considered this and said that this shouldn't go ahead. It's against the spirit. We have a commitment to stop this procedure and we have the G20 world leaders saying let's not revert to protectionist tendencies.
ALEXANDRA KIRK: And what do you think the chances are of overturning it?
SIMON CREAN: Well, let's see. And I think that depends on how quickly as a group of nations we can proceed to say that we are ready to conclude the Doha deal. We've got so close on a number of occasions, the opportunity presents itself again in Davos to move in that direction. If we can get the momentum, then that might have some impact in terms of addressing this specific complaint.
But this is the problem that you get to Alex if you don't conclude the deal. You get people justifying what they're doing in the name of "it's able to be done", even though all of us say, "it shouldn't be done".
[ENDS]
Media Inquiries: Mr Crean’s Office 02 6277 7420, Clinton Porteous 0403 369 588 - Departmental Media Liaison 02 6261 1555.