Farmers want fair deal from Japan FTA

Written By Unknown on Kamis, 20 Maret 2014 | 19.51

Australia's peak farming body says a FTA with Japan needs to benefit the whole agriculture sector. Source: AAP

AUSTRALIA'S peak farming body is urging the federal government not to be pressured by Japan's powerful agricultural lobby as it enters the final stage of negotiations for a free trade agreement.

The federal government is rumoured to be close to finalising a broad deal to liberalise trade and boost market access to Japan, Australia's second-largest trading partner.

Prime Minister Tony Abbott has promised to sign an FTA with Japan by September, and is expected to advance talks significantly during a trip to Tokyo next month.

But the National Farmers Federation is concerned there could be carve-outs in the deal to appease influential Japanese groups determined to protect their key agricultural commodities from competition.

NFF president Brent Finlay said in his experience all meetings with Japanese trade groups - including a major delegation in Canberra this week - started the same way.

"They are very quick to reinforce the importance of their key five ag (agricultural) commodities, and that their government will not move on those ag commodities," Mr Finlay told AAP on Thursday.

Japanese agriculture groups have traditionally fought hard - and often successfully - to protect their rice, sugar, beef, diary, grain and pork sectors.

Mr Finlay said this wasn't surprising given the influence of massive agricultural lobby firms in Japan like JA Zenchu, worth an estimated $40 billion.

"That gives you an indication of the power that they wield," he said.

The NFF wasn't happy when rice was carved out of a recent FTA deal with South Korea, and expects more concessions being made to the Japanese as the Abbott government tries to wind up seven years of talks.

"We're saying to them not to pursue it at all costs," Mr Finlay said.

The federation says the tariff regime remains a "significant point of conjecture" with the Japan negotiations, and they want all Australian sectors - including rice and beef - to get improved market access.

Agriculture Minister Barnaby Joyce said he was confident gains could be made on beef, but the Japanese delegation wasn't giving anything away in meetings this week.

"The Japanese, the one thing they are is extremely astute in their commentary," he told reporters in Canberra on Thursday.

Japanese trade with Australia was worth $71.1 billion in 2012, and if successful the deal is forecast to add $39 billion to Australia's economy over 20 years.


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