House debates

Monday, 23 June 2008

Questions without Notice

Trade

2:58 pm

Photo of Arch BevisArch Bevis (Brisbane, Australian Labor Party) Share this | | Hansard source

My question is to the Minister for Trade. Would the minister advise the House of the steps taken by the Australian government to secure a successful conclusion to the Doha Round? Why is this important to Australia and to the global economy?

Photo of Simon CreanSimon Crean (Hotham, Australian Labor Party, Minister for Trade) Share this | | Hansard source

I thank the honourable member for his question and note that he takes a very keen interest in the opportunities for Australia to advance its economic security through trade, which is in contrast to the other side that have not in this new parliament asked one question on trade, let alone on the Doha Round. Doha is important to conclude. It is doable but it is a very difficult process. It is something that eluded the previous government for seven years. I remind the House that the last time we achieved an outcome in the WTO was under a Labor government, and we are desperately determined to ensure that we achieve an outcome under this government. Why is that important?

Photo of Luke SimpkinsLuke Simpkins (Cowan, Liberal Party) Share this | | Hansard source

Mr Simpkins interjecting

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The member for Cowan is warned.

Photo of Simon CreanSimon Crean (Hotham, Australian Labor Party, Minister for Trade) Share this | | Hansard source

It is important because trade actually matters. Over the last 50 years world trade has grown three times faster than world output. Each new round in the WTO, or previously the GATT, has produced a new impetus. This is why the previous government was so neglectful in using its position as chair of the Cairns Group to advance this interest. It has achieved nothing on this front for the past seven years.

When you think of it, if world trade is growing at three times the rate of world output, it translates to jobs, it translates to a better current account and it translates to a circumstance in which this nation secures its economic future beyond the resources boom. The other side was content to ride the resources boom rather than secure a future beyond it.

As for the steps that have been taken over recent weeks to secure this outcome, I participated in an APEC meeting in Peru followed by an informal meeting of trade ministers in Paris a couple of weeks ago. Importantly, the outcome of both of those meetings gave new impetus, new authority and a new direction to the negotiators in Geneva to move to conclude the round. And over the last fortnight there have been intensive discussions over the phone with many of my ministerial counterparts to achieve that objective.

The truth is we are at a crunch point in these negotiations. If we do not conclude the round this year, my fear is that the Doha Round will go into a long-term drift—and that is not in anyone’s interest. So every effort must be made to ensure that we take advantage of the political will and the momentum that is there, and, in using the G8 meeting that the Prime Minister will be attending, to drive home the importance of this point of concluding the round.

The truth is, with world food prices where they are, this is the best time that we have ever had to get agricultural subsidies down. If we cannot get them down at a time in which growers are receiving the best prices—

An incident having occurred in the gallery—

I notice the comment in the gallery. Let me say—

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The minister will ignore comments from the gallery.

Photo of Simon CreanSimon Crean (Hotham, Australian Labor Party, Minister for Trade) Share this | | Hansard source

that the opportunity that will present itself if we can get the subsidies dropped—

An incident having occurred in the gallery—

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

The galleries will come to order!

Photo of Simon CreanSimon Crean (Hotham, Australian Labor Party, Minister for Trade) Share this | | Hansard source

If we can reduce the subsidies in the United States that compete with the grain growers—

An incident having occurred in the gallery—

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

The attendants will deal with disorder in the galleries!

Photo of Simon CreanSimon Crean (Hotham, Australian Labor Party, Minister for Trade) Share this | | Hansard source

this will be a great outcome. This is the best opportunity ever to achieve that end.

I might say in conclusion that, as important as concluding the Doha Round is, it will not be the end of where we need to take the trade agenda. It will provide the new basis, a new platform, on which we can engage the regional architecture as well as the bilateral relationships. The commitment of this government is to do everything necessary to conclude this round because it is in the interests of securing the economic future of this nation and doing it in a way that secures it beyond simple reliance on a resources boom.