Free trade focus

There is no argument that a successful conclusion of the Doha Round would yield the greatest benefit to Australia.

However the negotiations had become gridlocked and in the absence of any reasonable prospect of a successful conclusion it would have been prudent to follow the example of the Howard government and pursue the opportunity to further liberalise trade through a series of FTAS.

Regrettably this was not the case, although Simon Crean, to his credit, took a more active interest in bilateral FTAs in the second half of his time as Trade Minister until June 2010.

Julia Gillard's post-Rudd reshuffle saw her close supporter, Craig Emerson, appointed to the role.

It was a surprising choice, given Craig Emerson has made clear on many occasions his opposition to bilateral FTAs.

Yet the Prime Minister has never explained why she appointed a person philosophically opposed to FTAs to the role of Trade Minister and the result is that very little progress has been made on a number of vitally important trade negotiations.

Two of the most important are China and South Korea.

Australia and New Zealand both began negotiating an FTA with China in 2005.

New Zealand concluded its agreement in 2008 and its exporters now enjoy reduced or zero tariffs on many products, whereas Australians are subject to relatively high tariffs on the same goods.

When Prime Minister, Kevin Rudd announced the start of negotiations for a FTA with South Korea in March 2009.

Since that time the United States has completed its agreement with South Korea, while little progress has been made on Australia’s negotiations.

This is a major issue for Australian beef producers in particular as South Korea is one of their most important markets and the US the biggest competitor.