Senate Foreign Affairs, Defence and Trade Legislation Committee [Part 2], , 2:30:33 to 2:38:26
Minister Farrell discusses the risk of new US tariffs or quotas on Australian lamb exports and the potential for Australian investment in the US supply chain to mitigate trade tensions.
Topics: Exports, Trade policy, Agricultural productivity
Speakers: Senator The Hon Don Farrell, Senator Matthew Canavan, Unknown Speaker
Uh well in fact I was um talking with two groups um about that very issue today. Um so we we um have a circumstance where the United States government has uh made a reference to its trade author authorities um to review the um Australian exports of lamb into the United States. Um [clears throat] Australia um on some occasions represents um uh something like somewhere between 50 and 70% of all lamb that's eaten in the United States. Um now I want to put lamb exports into uh perspective. Senator Canavan, for every lamb chop that an American eats, they eat 10 uh pork chops, they eat 50 beef patties, and they eat 80 um uh buffalo chicken wings. So, lamb is a very small part of the protein in in the American uh in the American diet. in discussions with um all of our major exporters to to um the United States, it became very clear to me uh that there is an opportunity uh to work with the American industry uh to try and increase the level of lamb exports into the uh into the United States. Um many companies including uh some great South Australian companies like Thomas Food are already investing in uh additional provisions into uh into the United States. Um last week um our ambassador, Ambassador Moriati, uh led the argument uh against America uh increasing restrictions on Australian lamb, whether that uh comes in the form of um a higher tariff or uh or quotas or some combination. Um, in the next 10 days or so, uh, the American Committee looking at this, six individuals, uh, will make a determination as to whether or not, um, uh, we are in breach of, um, export obligations into the United States. If that happens, then we will need to provide a response on a on a remedy um in a certain period of time. Um and it's my uh view uh that um we should have uh an all of government and all of Australia response to the American decision. um it's not beyond the realms of possibility that the United States uh applies say a 50% tariff on top of the 12% tariffs that they're applying. So in discussion with the uh with the industry uh we need to um come up with um a formal response in the in the event of an adverse uh result. I've had discussions with both my counterpart um uh Ambassador Greer and also the agriculture minister Rowland's uh about whether or not there's an opportunity to lift the level of consumption of lamb into the United States. Um I'll continue to do that in conjunction with particularly the people I met today uh [clears throat] our government representatives over there, the ambassador uh and industry generally about how we might make a positive contribution uh to increasing the appetite of Americans for uh for lamb, in particular Australian lamb, but in the process uh perhaps try and build the supply chain of of lamb into the American uh
>> Right. Okay. Um uh just can I confirm though that the Australian government's not proposing that there'd be any obligation on super funds to invest in >> no slam industry or any foreign market?
>> Nobody have ever suggested that. Um I was a member of a superanuation for fund for 15 years. So I'm well and truly aware of the fiduciary obligations of uh super funds and uh uh was never suggesting that there should be any breach of uh our fiduciary duties but I do think so currently um lamb exports um represent about a $1.5 billion export to the United States. It's not a big figure in terms of the United States, but it is a significant figure for Australian lamb exporters. Uh so I want to do everything I can uh to assist the Australian lamb exports. If the Americans were to apply the sort of tariff that is being bandied about in the United States, it would almost certainly end Australian uh lamb exports to the United States. So an immediate impact of $1.5 uh billion dollars on the Australian lamb export industry. Um, it would be as significant as whether as when under the Morrison government, China imposed 220% tariffs on Australian wine. It would have that very same impact. [clears throat] I think for the Americans to proceed with this the way they might is actually completely counterproductive to their own interests because in the absence of fantastic Australian lamb in into the US market that market itself will collapse. So I think there's the potential here of economic self harm by the American lamb producers to their own industry if um they proceed with these uh these extra tariffs. Um I want to engage and I will engage um Ambassador Greer uh on this topic as I I have already. Um, I think we should engage um, uh, Secretary Roland's and I think we have to have an an all all Australian response to this because um, [clears throat] lamb exporters don't deserve to lose this market. Uh, we have to uh, work together. lamb industry, the Australian government uh to find a solution to this problem, but a solution uh which ensures that Americans eat more more lamb and we get our wonderful product uh to continue to go into the American market.