Russell Broadbent (McMillan, Liberal Party) Share this | Link to this | Hansard source

My question is to the Deputy Prime Minister and Minister for Trade. Would the Deputy Prime Minister and Minister for Trade inform the House how Australian companies are taking advantage of the free trade agreement with the United States. Further, how is that free trade agreement benefiting our exporters, creating jobs and keeping the economy strong, particularly in my corner of the world, the electorate of McMillan?

Mark Vaile (Lyne, National Party, Minister for Trade) Share this | Link to this | Hansard source

I thank the member for McMillan for his question. One of the classic examples of a company that has benefited from the free trade agreement with the United States comes from his electorate—the Murray Goulburn dairy manufacturer in Leongatha, which just happens to employ 400 people in Leongatha. As a result of the negotiations, we got much better access—fairer access—for dairy products. From Leongatha, Murray Goulburn is exporting butter, cheese and skim milk powder into the United States market. It is one of the dramatic increases in access that has been gained by the Australian dairy industry as a result of the free trade agreement.

The United States is the largest economy in the world. It is more than five times the size of the economy of China. The free trade agreement is bringing real benefits to our exporters and helping to create many new jobs in the Australian economy. The United States is our second largest trading partner, now worth over $41 billion each year.

The break-up across the different sectors of what we are selling to the United States is interesting. The member for McMillan will be interested in this. Twenty-two per cent is agricultural goods, 32 per cent is services and 46 per cent is non-agricultural goods—that is, manufactured goods, processed foods and the like. The United States market is currently our second largest beef market. We have been exporting record levels of lamb products and dairy products to the United States.

The manufacturing exporters are also doing extremely well in this market as a result of the FTA. In 2005-06, there was an increase of six per cent—up to about $4.6 billion worth of exports. This included medical instruments, auto exports, telecommunications and medications.

The other point I want to make is that the value-added processed food exports into the United States are also going very well. I want to instance one other Victorian company which is about to break back into the market in the United States. It is the famous Four’N Twenty pies icon from Bairnsdale in Victoria—probably from the electorate of the member for Gippsland. It has just announced that it is going to export the great Aussie pie back into the US market.

The managing director of that company said that the free trade agreement played a big part in getting into the US market. But, most importantly, this brand was owned by an American company. It has been bought back by an Australian company and now that company is going to be exporting into the American market. That says something for the strength of the Australian economy—that this business is able to be competitive, operate on the international stage and export back into the United States market.