This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/world/2014/apr/08/tony-abbott-defends-free-trade-deal-with-japan-despite-farmers-criticism

The article has changed 4 times. There is an RSS feed of changes available.

Version 0 Version 1
Tony Abbott defends free trade deal with Japan despite farmers' criticism Tony Abbott defends free trade deal with Japan despite farmers' criticism
(35 minutes later)
Tony Abbott has moved to downplay criticism from Australia’s farming groups that his new free trade deal with Japan fails to deliver sufficient liberalisation for local food producers.Tony Abbott has moved to downplay criticism from Australia’s farming groups that his new free trade deal with Japan fails to deliver sufficient liberalisation for local food producers.
The prime minister told the ABC on Tuesday his government had not succeeded in reducing the Japanese beef tariff to zero, which was the ambition set by Australia’s peak farm groups, but he said the new bilateral agreement was the most generous Japan had yet offered to any of its trading partners. Amid complaints that the agreement offered very little for dairy, sugar and grain farmers, the prime minister admitted on Tuesday that his government had failed to secure the farm industry's main target of reducing the Japanese beef tariff to zero.
The prime minister said the new FTA had halved the existing 38.5% tariff “and there's a big drop in the first year”. But he claimed the new bilateral agreement to halve the existing 38.5% tariff was the most generous Japan had yet offered to any of its trading partners and that there was "a big drop in the first year”.
“So, this is a very significant improvement, and it's far better than many people expected, and it's far better than anything that Japan has ever been prepared to offer any other country,” Abbott said in a radio interview before leaving Tokyo for South Korea. “So, this is a very significant improvement, and it's far better than many people expected, and it's far better than anything that Japan has ever been prepared to offer any other country,” Abbott said in an ABC radio interview before leaving Tokyo for South Korea.
The new bilateral FTA – seven years in the making – will see the Japanese tariff on imported frozen beef drop over time to 19.5%, with an 8% fall in the first year of the agreement. The tariff on fresh beef will drop to 23.5% over 15 years.The new bilateral FTA – seven years in the making – will see the Japanese tariff on imported frozen beef drop over time to 19.5%, with an 8% fall in the first year of the agreement. The tariff on fresh beef will drop to 23.5% over 15 years.
The president of the National Farmers Federation, Brent Finlay, said the new trade pact with Japan had fallen short in several respects. “The ultimate objective with any trade agreement is to obtain tangible benefits to farmers. Agreements must be comprehensive. That means no sector carve-outs and elimination of tariffs,” he said.The president of the National Farmers Federation, Brent Finlay, said the new trade pact with Japan had fallen short in several respects. “The ultimate objective with any trade agreement is to obtain tangible benefits to farmers. Agreements must be comprehensive. That means no sector carve-outs and elimination of tariffs,” he said.
“The Japanese agreement falls short of the mark on a number of fronts in this regard. The agreement does not improve – or marginally improves – market access and terms of trade for a number of sectors such as dairy, sugar, grains, pork and rice.”“The Japanese agreement falls short of the mark on a number of fronts in this regard. The agreement does not improve – or marginally improves – market access and terms of trade for a number of sectors such as dairy, sugar, grains, pork and rice.”
The Cattle Council expressed similar sentiments.The Cattle Council expressed similar sentiments.
While welcoming the finalisation of the agreement and the improvements secured by the negotiators, the Cattle Council’s president, Andrew Ogilvie, expressed disappointment “that substantial tariffs will still exist on Australian beef after the phase-out period, unlike previous free trade agreements; and also that different tariffs apply to chilled and frozen beef.”While welcoming the finalisation of the agreement and the improvements secured by the negotiators, the Cattle Council’s president, Andrew Ogilvie, expressed disappointment “that substantial tariffs will still exist on Australian beef after the phase-out period, unlike previous free trade agreements; and also that different tariffs apply to chilled and frozen beef.”
United Dairy Farmers Victoria president Tyran Jones said the agreement had mainly ignored Australia's $13bn dairy sector.
"Dairy farmers currently pay $116 million a year in import tariffs on $511 million of processed dairy products going into Japan," Jones said.
"This really doesn't bode well for a meaningful trade agreement with China," Mr Jones said. "The track record's there. We didn't get much out of Korea, and we got even less out of Japan."
Speaking to reporters in Sydney, the deputy prime minister, Warren Truss, conceded the government had not delivered everything the farm sector wanted – and he suggested the deal negotiated by his cabinet colleague, the Liberal trade minister, Andrew Robb, did not deliver everything he wanted.Speaking to reporters in Sydney, the deputy prime minister, Warren Truss, conceded the government had not delivered everything the farm sector wanted – and he suggested the deal negotiated by his cabinet colleague, the Liberal trade minister, Andrew Robb, did not deliver everything he wanted.
Truss said he would like to see all artificial trade barriers removed – and he said the agreement provided options to reconsider elements of the undertakings every five years.Truss said he would like to see all artificial trade barriers removed – and he said the agreement provided options to reconsider elements of the undertakings every five years.
But he counselled it was impossible in trade negotiations to emerge with everything that you might wish. The FTA did not achieve everything, but it did deliver “substantial gains”.But he counselled it was impossible in trade negotiations to emerge with everything that you might wish. The FTA did not achieve everything, but it did deliver “substantial gains”.
The new agreement will also see Australia cut the 5% tariff it imposes on imported Japanese cars and other high-end manufactures. This should see prices drop for Australian consumers if the tariff cut is passed through.The new agreement will also see Australia cut the 5% tariff it imposes on imported Japanese cars and other high-end manufactures. This should see prices drop for Australian consumers if the tariff cut is passed through.
Australia has agreed to cut the tariff within 12 months of the agreement taking effect. The head of the Australian Automobile Association, Andrew McKellar, reasoned on Tuesday that companies would pass through the tariff cut to consumers.Australia has agreed to cut the tariff within 12 months of the agreement taking effect. The head of the Australian Automobile Association, Andrew McKellar, reasoned on Tuesday that companies would pass through the tariff cut to consumers.
“We've seen from past experience, when there has been a tariff reduction, it has been passed through in prices to consumers fully and quite quickly,” McKellar said.“We've seen from past experience, when there has been a tariff reduction, it has been passed through in prices to consumers fully and quite quickly,” McKellar said.
With the US president, Barack Obama, also due to visit Tokyo in a fortnight, the former US assistant secretary of state for East Asia, Kurt Campbell, told the ABC’s Lateline program the FTA was “a massive victory for prime minister Abbott”.With the US president, Barack Obama, also due to visit Tokyo in a fortnight, the former US assistant secretary of state for East Asia, Kurt Campbell, told the ABC’s Lateline program the FTA was “a massive victory for prime minister Abbott”.
“Countries, industrialised countries in Europe and the United States and elsewhere, have been trying to get this kind of agreement from Japan for 30 years,” Campbell said.“Countries, industrialised countries in Europe and the United States and elsewhere, have been trying to get this kind of agreement from Japan for 30 years,” Campbell said.
He reasoned the structure of the new Australia/Japan agreement could break a deadlock in a more significant trade agreement: the trans Pacific partnership. “This is a major breakthrough and I believe it will open the door for the next phase of the trans-Pacific partnership [TPP] in which the United States is dealing directly with Japan.”He reasoned the structure of the new Australia/Japan agreement could break a deadlock in a more significant trade agreement: the trans Pacific partnership. “This is a major breakthrough and I believe it will open the door for the next phase of the trans-Pacific partnership [TPP] in which the United States is dealing directly with Japan.”
Reports from the US indicate Obama hopes to announce his own bilateral economic partnership covering agriculture and manufacturing with Japan during his visit, as well as touching on the negotiations around the TPP, a regional trade pact between the US, Japan, Australia and other regional allies.Reports from the US indicate Obama hopes to announce his own bilateral economic partnership covering agriculture and manufacturing with Japan during his visit, as well as touching on the negotiations around the TPP, a regional trade pact between the US, Japan, Australia and other regional allies.
According to a statement released by Abbott, the Australian and Japanese prime ministers discussed the TPP during this week’s visit.According to a statement released by Abbott, the Australian and Japanese prime ministers discussed the TPP during this week’s visit.
A joint statement issued by Abbott and Shinzo Abe after their talks says: “[The two leaders] emphasised the significant potential benefits of a high-standard TPP agreement in cutting trade barriers and harmonising trade rules across the region, and called for redoubled efforts to conclude the TPP negotiations.”A joint statement issued by Abbott and Shinzo Abe after their talks says: “[The two leaders] emphasised the significant potential benefits of a high-standard TPP agreement in cutting trade barriers and harmonising trade rules across the region, and called for redoubled efforts to conclude the TPP negotiations.”
But a report in the Financial Times departs from the Campbell analysis. It suggests US trade officials are “downright dismissive” of the new Australia/Japan FTA.But a report in the Financial Times departs from the Campbell analysis. It suggests US trade officials are “downright dismissive” of the new Australia/Japan FTA.
US officials are pushing for the wholesale elimination of Japan’s key agricultural tariffs within the framework of the TPP. The unnamed officials in the FT report have declared the new Australian pact “significantly less ambitious than what leaders agreed to seek in the TPP”.US officials are pushing for the wholesale elimination of Japan’s key agricultural tariffs within the framework of the TPP. The unnamed officials in the FT report have declared the new Australian pact “significantly less ambitious than what leaders agreed to seek in the TPP”.