Cassowary Coast Regional Council

The largest industry in the Cassowary Coast is the banana industry, followed by tourism then cane.

Ninety percent of Australia’s bananas are grown in the Cassowary Coast Region, so the decision by the Federal Government to allow banana imports from the Philippines is devastating news.

This decision has been a long time coming and the banana industry is well placed to defend its position. Anything that the Cassowary Coast Regional Council can reasonably do to assist the banana industry in its hour of need will be done.

The case revolves around bio-security, on the basis that the wider arguments around free trade are not negotiable. Agricultural scientists are well able to argue the risks to the Australian banana industry from imported diseases and I am not qualified to comment on conflicting advice from scientists working for bio-security or the banana industry. However, on the basis of the precautionary principle, imported bananas should not be permitted at this time.

The wider arguments about free trade is a subject I am qualified to comment upon as an economist. There is no doubt that free trade, other things being equal, delivers enhanced economic outcomes and can be a mechanism to deliver increased prosperity to developing countries. In fact restrictive trade practices by developed countries deliver more harm to developing countries than all aid given by developed countries. Giving developing countries access to markets will bring more benefits than all overseas aid presently given.

The trouble is free trade is supported by words not actions, and Australia is one of the few countries in the world who genuinely adopt free trade principles. Europe, USA, Japan are all very protective of their domestic economies, especially of their agricultural products.

Cane growers are well aware of the unfair playing field that applies in what is regarded as the most corrupt market in the world – raw sugar.

The US President-elect has espoused the virtues of free trade and simultaneously spoken of the protection needed for the US motor vehicle industry. The Democratic Party has historically been more protectionist than the Republican Party. It is very possible that the USA will become even more protectionist in the next administration.

In the mean time Australia looks set on continuing down the free trade path. We are genuinely being misled. Free trade is only a solution if it is all embracing.

Australia in the 1970’s decimated whole sections of our domestic manufacturing base. Many will recall the clothing and footwear industries collapsing and all know the “made elsewhere” labels on most of what is worn in Australia today. Those industries were allowed to collapse before the altar of free trade. But the rest of the world did not follow.

No more of our domestic industries should be allowed to collapse without genuine success in extending free trade, especially in the agricultural sector.

We also need developing countries, as part of extended free trade and access to western markets, to agree to environmental and labour market reforms to both mprove outcomes and level the playing field.

Answers are needed to these issues before we set about destroying another industry in this country.