Bad news for exports
‘Protection racket’ hits industry
TWO of Queensland’s most important export industries have been hit by protectionism in Asia potentially costing the state billions of dollars.
India has announced it will throw $850 million into subsidising the dumping of 5 million tonnes of sugar on to the global market.
China has also imposed restrictions on the importing of coal into the country in a bid to help local producers and will slow down the customs clearance procedures at some of its ports.
Lobby group Canegrowers said the Federal Government must now stand up and take the issue to the World Trade Organisation.
Chairman Paul Schembri said India was exporting its domestic problem of failed sugar policies which encouraged over-production.
“Australian growers must not be left to bear the costs of India’s breach of international trade rules,’’ he said.
He said in the past 10 months, the sugar price had fallen the equivalent of $156 Australian a tonne as a surplus market anticipated Indian subsidised exports.
“We don’t want subsidies or handouts,” Mr Schembri said. “We want the Australian government to roll its sleeves up, partner with the other affected countries who are members of the Global Sugar Alliance and call India to account before the World Trade Organisation.”
China’s port restrictions come amid growing international tensions over trade on the back of actions by the US Trump administration.