China FTA Signals End for Fresh Aussie Vegetables

http://www.ausveg.com.au/display.cfm?CID=1561

Peak grower body AUSVEG, has warned that a comprehensive FTA with China had the potential to destroy Australia’s fresh vegetable industry.

AUSVEG expressed its concerns in its recent submission to the China-Australia FTA feasibility study, a submission that seems to have been largely disregarded according to AUSVEG Chairman Michael Badcock.

Michael said that the Chinese vegetable industry is 100 times larger than the Australian industry and that Australian growers could find it extremely difficult to compete, unless the FTA contained significant safeguards for Australian vegetable producers.

“Australian vegetable growers must meet stringent food safety and quality regulations ensuring vegetables are free of pesticides and disease and safe to eat. These necessary requirements are important to ensure Australian consumers have access to fresh food that’s good for them,” he said.

“Chinese producers on the other hand, do not face the same Quality Assurance requirements and have access to cheap labour and are often able to land fresh vegetables in our markets at significantly cheaper prices.”

Michael Badcock stated recent examples of WA export carrots and cauliflowers which have faced up to a 30% reduction in export volume in 2003-4 due to Chinese product replacement.

An FTA with China will potentially open the door for a flood of cheap vegetables into Australia. “Growers are already under stress from a market dominated by only two major retail players, a removal of the 5% tariff on many vegetable products would be the straw that broke the back of many growers," Mike said.

“Surely our government wants to ensure Australians have access to fresh, flavoursome and wholesome fresh vegetables."

AUSVEG calls on the Australian government in its FTA negotiations to protect Australia’s $6.5 BN horticultural industry by declaring vegetables a “no go” zone.

Regional communities will be the hardest hit if a comprehensive FTA with China proceeds.