03/09/06 Trade rep on Australia and Doha

Farm and Ranch March 9, 2006 During the first annual review this week of the U.S. - Australia Free Trade Agreement, U.S. Trade Representative Rob Portman said Australia is living up to its commitment made in the FTA to work with the U.S. on the issue of state trading enterprises at the WTO. . Portman: "As you know there are four or five elements including export subsidies that still need to be worked out. One is food aid, one is export credits and another is state trading enterprises. I think Australia, based on our conversation today supplemented by the work we did together in Hong Kong are keeping to the commitment they made in the FTA and I think we will get to a result on this. I think we will get to a result frankly on all the export subsidy issues because I see on those issues some convergence." The Australian Wheat Board has been privatized but it is still a monopoly exporter and Australian Trade Minister Mark Vaile, who met with Portman, defended the Wheat Board saying it just allows Australian farmers to compete. Vaile: "Against enormous export subsidies that come out of the E.U. and the different programs of domestic support that are provided to farmers in the United States. Because we don't have those things." Vaile said American farmers are in no position to criticize. He said when they are prepared to hand back the money to the U.S. government they receive in subsidies every year, Australia might talk about changes in structure. U.S. Wheat Associates points out the payments U.S. farmers receive are legal, unlike the kickbacks and other schemes the AWB is accused of participating in. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.