How we can achieve more certainty in global trade

When agriculture flows as smoothly, predictably and freely around the world as possible, everyone benefits.

By upholding globally set rules and regulations for trade, countries across the world can achieve the level of certainty and consistency that supports a thriving market. 

Here’s how Australia is working with global players to strengthen this system. 

A global rules-based system benefits all

Peter Creaser is Minister Counsellor, Agriculture based in the Australian Embassy to Belgium and Luxembourg and the Mission to the European Union and NATO. He advocates for a global rules-based system for trade at multilateral forums representing Australian agriculture at World Trade Organization (WTO) meetings in Geneva and OECD meetings in Paris. He also engages directly with the European Union on bilateral trade issues.

‘As a country exporting two-thirds of our production annually and growing enough product to feed 70 million people, our agriculture sector depends on a global rules-based trading system,’ he says.

‘Such a system establishes international rules and standards to minimise trade barriers and behaviours that distort trade.’

Other Agriculture Counsellors, the Department of Agriculture, Fisheries and Forestry and Department of Foreign Affairs and Trade officials play ongoing critical roles in this advocacy work and supporting the integrity of the international system.

Achieving certainty and consistency in global trade

A global rules-based trading system supports the free movement of goods around the world by minimising restrictions.

Globally agreed rules provide a level of certainty and consistency. This enables countries to grow their GDP through the agricultural systems and commodities suited to their conditions and to be able to export globally. This goes on to support food security, including across the Asia-Pacific region.

A global system brought to life

The WTO deals with the global rules of trade between countries.

‘It operates on the premise of creating common rules for all countries to engage in free and predictable trade in the least restrictive way,’ says Creaser.

The Department of Agriculture, Fisheries and Forestry and its network of overseas Agriculture Counsellors work with Australian businesses, like-minded countries, and global organisations like the WTO to support the global trade of agriculture.

These teams are responsible for maintaining market access, opening new markets and assisting in the release of cargo held up at any borders. They also monitor and work to influence country and regional policy development that could be disruptive to Australia’s trade.

Our network on the ground abroad

The Agriculture Counsellor network plays a key role in championing the global rules-based system on the international stage.

‘Counsellors work hand in hand with Australian colleagues in Canberra, including technical and operational experts, as well as with industry stakeholders,’ says Creaser.

‘Collectively we play a critical role in keeping the communication channels open with trading partner governments, building alliances, shared values and a stronger and influential Australian voice at international forums.’

Voicing Aussie interests on a global stage

Agriculture Counsellors abroad also participate in critical meetings. This ensures Australia’s views and values are clearly communicated.

‘We provide leadership on issues important to Australia and build alliances with like-minded countries,’ says Creaser.

Agriculture Counsellors also ensure any approaches with potential to disrupt the global rules-based system don’t creep into international declarations and standards and are countered through bilateral and multilateral engagement.

Creaser says: ‘The impact of the European Union’s Deforestation Regulation (EUDR) is a recent example of a policy approach that would have significantly impacted Australia’s trade to the EU and third countries in a range of commodities. It was a major concern for Australian industry.

‘But through concerted advocacy in both Brussels and the WTO in Geneva and working closely with other countries that shared our concerns, we have secured a 12-month delay in its implementation and the opportunity to seek further changes to minimise its impact on Australia.’ 

Australian research strengthens rules-based system

Some regions are playing significant roles in strengthening and improving the global rules-based system, Creaser notes.

Australia has highlighted the trade-distortive and environmentally harmful impact of farmer subsidies applied in a number of countries by supporting research and information exchange at the OECD and the FAO. Australia is one of a few countries where farmers receive virtually no or very low subsidies unlike some countries where the support given to farmers can be up to 25% or more of their annual income. These subsidies are distortive to trade and can encourage environmentally damaging practices.

This research and awareness raising is also supported by the Cairns Group of agricultural exporting countries. It identifies alternatives to direct farmer support, such as investing in agriculture R&D and information sharing and exchange, to assist farmers with improved practices and technologies without distorting markets.

How new tech might improve the system

Discussions at the WTO also focus on the safe and effective use of new and innovative technologies like artificial intelligence and precision biotechnology.

These discussions recognise the benefits of new technologies for food safety and security, sustainability, and biosecurity. They also explore their safe, appropriate and ethical use.

A protectionist stance serves no one

Some countries take a more protectionist stance when it comes to trade. This can have a negative impact on the system for both trading partners and the country itself, says Creaser.

‘Some countries are placing conditions on trade to protect their own agriculture sector from competition,’ he says. ‘This can impact their manufacturing sector and their consumers, who may pay more for lower-quality products.’

By upholding globally agreed rules and regulations, Australia can contribute to global food security and nutrition, while minimising barriers to trade for Australian farmers and exporters.  

Facts about the DAFF Agriculture Counsellor Network:

• There is a footprint of 21 Agriculture Counsellors located around the world. 
• Agriculture Counsellors are posted at a location for 3 years.
• The Counsellor network is supported by locally employed staff who play a critical role in maintaining a longer-term presence in-country, providing language translation, collating information and data, interpreting policy, and liaising with government border officials across a range of ministries.

To learn more visit our agriculture counsellors - DAFF