THE visit by Japanese Prime Minister Shinzo Abe and signing of the so-called free trade agreement has given the Abbott government the opportunity to trumpet its achievements on behalf of Australian industry.
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Cars and consumer goods will be cheaper and Australian beef producers will benefit to the tune of $590 million annually in tariff cuts. Most other agricultural sectors gain some spin-off.
But all the government grandstanding has been underpinned by the number one rule of spin: shout the good news, don’t mention the bad.
The bad news, in this case, was the outcome for the dairy industry. It got virtually nothing out of the deal. It was hung out to dry. This, of course, failed to get a mention.
What the industry wanted was a reduction of the 29.8 per cent tariff imposed on Australian cheese, our largest dairy export to Japan. What it got was a tiny concession on tariffs that won’t come into full effect until 2031. The industry will save just $4.7 million in the first year, rising to $11.6 million by 2031, out of a total export market of $511 million. It’s a long way short of free trade.
The dairy industry bodies made a bit of noise about this when the agreement was settled in April, but let’s face it — that was basically talking to ourselves.
Now, with Mr Abe in the country, the industry has the chance to make its feelings known. But the silence from industry bodies has been deafening. Tony Abbott has been given a free kick, allowed to spruik the good bits unopposed. The dairy industry has missed the chance to speak when it would really be heard.
All might be considered lost now that the agreement has been signed, but it has yet to be ratified by Parliament. It isn’t really over until that happens.
When quizzed, the Australian Dairy Industry Council said the outcome with Japan “was less than the industry had hoped for”, but it was now concentrated on the pending agreement with China.
So that’s it then. Lie down and cop it without so much as a whimper when the industry’s voice would really be heard. Dairy producers deserve better.