Australia's dairy sector backs rejection of China FTA

The Australian dairy industry supports Trade Minister Simon Crean's decision to refuse to accept China's exclusion of agricultural products from a proposed Free Trade Agreement (FTA).

Negotiations for the Australia-China FTA have been ongoing since 2005 but little has been done in China's position in limiting Australian dairy imports.

But at the same time, New Zealand has concluded an agreement that allows its dairy products to have preferential access to China.

Australian Dairy Industry Council chairman Allan Burgess said that impacted Australia's trade with China and made competition with New Zealand tougher.

Concluding an agreement of a similar quality to the one New Zealand has with China is a key priority for the Australian dairy industry's trade policy objectives, Burgess said.

Creane was reported to have told China that Australia would not agree to an outcome less favourable for agricultural products than the one finalised with New Zealand.

Burgess said the Australian dairy industry does not see itself as a threat to China's dairy industry, which was now the world's third largest and more than three times the size of the Australian industry.