Meat Industry INSIGHTS Newsletter

980644 Australia PM Warns Against Protectionism

June 16, 1998

Melbourne - Australian Prime Minister John Howard rejected populist politician Pauline Hanson's protectionist trade policies, saying they would invite international retaliation.

“The solutions to the (Asian) region's current problems lie in knowing how to use the benefits of globalization -- such as open markets and foreign investment -- to our advantage,” Howard told Asian business and political leaders.

“Trying to close off our economies from the outside world will cost us jobs and deny our populations the prospect of improved living standards,” he told the Australia Summit conference.

Hanson, whose One Nation party took nearly 25 % of the vote in last weekend's Queensland state election, opposes Asian immigration, Aboriginal welfare spending and economic rationalism.

During the Queensland campaign, she called for a ban on pig meat imports from Canada to protect local pig farmers.

Howard said that any such move would cost Australia millions of dollars in agricultural exports, particularly in the sugar and beef markets.

“If we stopped imports, the Canadians could retaliate,” Howard said. “That could cost us dearly.”

He said Australia's agricultural exports to Canada were worth about A$430 million (US$250 million) annually, including sugar exports worth A$257 million and beef worth A$75 million.

“Stopping imports is not the way to save jobs in the domestic pigmeat industry, but it would be the way to put many more jobs at risk in other vital rural industries,” he said.

“Exports bring jobs and exports need open markets. Open markets are a two-way street. We can't close ours and expect others to keep theirs open.”

Trade Minister Tim Fischer said protectionism would also endanger Australia's A$22 billion in annual agrifood products.

“There's a very noisy, concerned group out there that hates world globalization, that really wants to go back to 400 % tariff walls and fortress Australia,” Fischer told the conference.

During the Queensland election campaign, the Australian government pledged a A$9 million assistance package to the pig meat industry, in addition to a A$10 million package already announced. Hanson claimed credit for the new package.

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