1998, Volume 1, Paper 5

The Australian Dairy Industry

Mr. Philip Bruem – Deputy Chair Dairy Farmers Ltd

The dairy sector around the world is highly influenced by the agricultural policy of Governments.
Throughout the world, the industry is confronted by a series of major changes which include consumer demand, distribution and agricultural and trade policies.
Milk production is affected by price support and production quotas, while export subsidies, import tariffs and import quotas have a major impact on trade flows.
International trade agreements affect national dairy polices. In particular the GATT agreement has a significant effect on the dairy industry. The agreement deals with: Market access, international support and export subsidies.
The Uruguay Round has actually left the opportunity for most South East Asian countries to increase tariffs for dairy imports from their current levels.
The Australian Government needs to recognize how important tariff bargaining is to exporters and potential exporters.

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