A MOVE by the European Union to subsidise agriculture to secure a deal with American nations sets a worrying precedent, the National Farmers Federation says.
European leaders voted to authorise the signature of the EU-Mercosur Partnership Agreement over the weekend, after an offer on agricultural subsidies by the European Commission.
NFF president Hamish McIntyre said while the NFF welcomed more global trade, it was understood the passing of the vote only occurred after an agreement to bring forward nearly $80 billion (AUD) in subsidies to European farmers.
“Bringing forward enormous EU subsidies to pass a trade deal with the South American Mercosur countries raises concerns for Australian farmers,” he said.
“As negotiations for our own free trade agreement with the EU continue, the NFF is worried the EU will continue to offer subpar access for Australian producers and could deploy more billion-dollar subsidies to their producers.”
Mr McIntyre said such an advancement of billions in “production-distorting subsidies” only increased the uneven playing field between producers in Australia and those in Europe.
“Australian farmers are among the least subsidised in the world and embrace free markets and trade to drive productivity, sustainability and food security outcomes,” he said.
“The EU’s decision is also worrying from an environmental standpoint—recent research by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) found subsidies, such as those provided for by the EU Common Agricultural Policy, can lead to significant negative environmental outcomes,” Mr McIntyre said.
“We are calling on the Australian government to directly raise these concerns with their European counterparts and again reject any trade deal that does not provide significantly increased access for our red meat, dairy, sugar, and rice producers.”