Senate Foreign Affairs, Defence and Trade Legislation Committee [Part 2], , 1:37:30 to 1:41:31
Officials provide details on the CIE economic modeling for the FTA and address concerns about EU agricultural subsidies under the Common Agricultural Policy.
Topics: EU free trade agreement, Agricultural productivity, Government spending
Speakers: Senator Matthew Canavan, George Mina, Cathy Raper, Unknown Speaker
>> Can I just quickly I want to quickly touch on the modeling. You said you're going to do some modeling on this >> um deal. Uh have you have you commissioned a modeler so to speak?
>> Um yes, we have senator.
>> Who is that?
>> Um CIE the commission the >> center for center. I know CIE well.
Okay. Do you know what model they're using? What what CG model? It's a CG modeling. What do you know what CG model they're using?
>> I do not, Senator, but we can get some more information
on >> uh have you agreed a contract value for the
>> We do. Um the contract is on on Oz tender 114,180.
>> Okay. And has it got a due date to be returned by?
>> Um we've asked for it in the first quarter of next year.
>> Okay. uh is it going to uh look at or factor in uh the subsidies that EU provides to its uh industry under the common agricultural policy?
>> It will be factoring in all of the outcomes that are contained in the agreement.
>> Okay. I'll just ask again. Does that include looking at the uh impacts of uh the common agricultural policy? Well, I
think again Senator, we have explained before, I'll explain again that the free trade agreements bilaterally are not the venue, not the forum in which to make changes to policy. So the modeling will look at changes to policy prior to and then after the agreement.
>> I understand that but but I understand that. But a key concern particularly the dairy industry is that we are removing a tariff we impose on the EU uh in part to offset the distortive impacts of their massive subsidies to their dairy industry. >> Uh is the imp is is the dairy industry's concern going to be looked at in this modeling is the concern that subsidized Can I just finish my question? >> Sure. that dairy industry is concerned quite rightly in my my view they're concerned that subsidized EU dairy production will be able to undercut Australian production uh under this agreement and force them out of business. Will that be modeled in the CIE's work?
>> Senator, you're aware these issues were not part of the negotiation. So you will be aware as I've said before that the policy changes will not be modeled unless there are policy changes. I see. >> Now, what I what I also want to say about the dairy sector is that despite what has been very high levels of producer support, you're right on that 16 to 18% producer support in dairy, uh we both fought that in the WTO and and improved where we can in the FDA context on the tariff and access outcomes. There are 87% of the lines now duty-free. They had tariffs up over 120%. They're going to zero in most cases. >> Uh so this is this is a massive leveling of the playing field. Admittedly, as you continue to point out, Senator, that does not address the subsidy issue, >> but but nobody has expected it to because this is a an FDA, not a subsidy package. We would dearly like to get to those subsidies and we're very
>> we're always free not to sign, right? We will say, "Look, if you're not going to deal with it, well, we don't have to cuz it's a non-tariff barrier. We're doing
>> we're doing something more than complaining.
>> I always say that's their sovereign right to do these things. But
>> we're doing more than complaining.
>> Okay.
>> We are indeed uh taking these issues up at the uh at the WTO with the Can Group and absolutely EU dairy subsidies are in our sight.
>> We're giving away all of our leverage now. So, I don't think we're going to have any impact on the EU, but um if we sign up to this deal, um but uh is are we locked into removing the 122 per kilogram dairy tariff under the under the deal? Is there any way we can keep the tariff?
>> It's part of the deal was to eliminate that tariff over three years.