End of single desk ruled by trade talks Cath Hart March 02, 2006 THE controversial single-desk wheat exporting arrangements could be dismantled by the end of the year if key trade concessions can be gained from international competitors.
Trade Minister Mark Vaile yesterday outlined the conditions and a possible schedule for the removal of Australia's single desk, a monopoly exporting scheme started in 1939 when growers pooled wheat to maximise their profits.
Speaking for the first time since returning from Iraq, Mr Vaile told the Australian Bureau of Agricultural and Resource Economics's annual Outlook conference that Australia would abandon its monopoly wheat export regime if trade liberalisation were achieved in Doha Development Round talks.
"There may come a day when we no longer need a single desk for Australian wheat growers," he said. "That day will only come if the world agrees to free up agricultural trade through the Doha round."
Australia required increased opportunities in European Union markets before it would reduce other trade barriers, Mr Vaile said.
"The Australian Government will defend the wheat single desk until that day comes when the subsidies, domestic supports and tariffs that distort the wheat market come to an end," he said.
Research presented at the ABARE conference yesterday claimed Australian wheat growers' income and exports would increase if the Doha talks secured a "market-focused outcome".
There is pressure to complete the talks by the end of this year.
Mr Vaile will resume agriculture negotiations with the US, EU, Japan, India and Brazil in London next week after the talks stalled at the Hong Kong World Trade Organisation ministerial conference last December.
"We have to reach a conclusion to the round by the end of this year or put off any hope of an agreement until 2009 at the earliest," Mr Vaile said.
US Farm and Foreign Agricultural Services Under Secretary JB Penn told The Australian yesterday Mr Vaile's speech indicated the single desk could be reviewed.
"I listened to minister Vaile quite closely this morning and he said there was a certain rationale for using the single desk and when the conditions are eliminated in the world wheat market that gave rise to that (rationale) then he could see the possibility of no longer having the single-desk seller," Mr Penn said.
"So we'll see what kind of result we might get out of the WTO. My sense is that it could well be sufficient enough to take a look at the single desk here.
"It certainly indicated to me the possibility of very carefully examining the issue (of the single desk) in light of the fact that export subsidies are to be eliminated by 2013."
Mr Penn rejected partial reforms of the single desk, such as seeking regular tenders for the monopoly wheat export licence as proposed by Liberal MP Wilson Tuckey.
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