Wall Street Journal | November 16, 2001
SYDNEY -- Australia's grain growers will stand to gain from the new round of World Trade Organization talks launched this week, wheat exports monopoly AWB Ltd. (A.AWB) said Friday.
The new round of talks will benefit Australian grain growers as it represents the first step in erasing government subsidies in the U.S. and the European Union, said AWB Chairman Trevor Flugge from the Asia-Pacific Round Table conference in Beijing.
The acceptance of China and Taiwan as WTO members will also present a great opportunity for Australia, he said in a statement.
"For too long, Australian growers have had to operate in a grossly distorted international market without proper reward for their production efficiency," said Flugge.
WTO members in Qatar on Wednesday agreed to start a new round of multilateral trade talks that could ultimately lead to greater liberalization of global farm trade.
Citing figures from the Organisation for Economic Cooperation and Development, or OECD, the AWB statement said U.S. wheat farmers receive an average of US$228 of government subsidies per hectare, while their E.U. counterparts receive US$788.
"While this round (of WTO talks) does not guarantee the removal of these high levels of government support, it is certainly a step in the right direction," Flugge said, adding that there is still a long way ahead to achieve the desired outcome for Australian farmers.
With China's accession to the WTO, Flugge said the country would now be compelled by WTO agreements to open its grain industry to international trade.
In 2000, China ranked as Australia's third-largest trading partner, with two-way trade worth A$15.08 billion.
-By Wong Chia Peck, Dow Jones Newswires; 612-8235-2957; chia-peck.wong@dowjones.comWall Street Journal:
