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Letter to the Editor, Western Producer, 14 October 2009
Dear Western Producer
The article ‘Canada calm island in global dairy turmoil’ (WP, 1 October) included a suggestion that Australian dairy farmers - - among others - - are receiving government subsidies. This is incorrect. While Australian dairy farmers, like those in many other countries, are experiencing a difficult period largely as a result of the global economic downturn, we do not believe that this should be a pretext to introduce or maintain subsidies or other trade distorting measures. In fact, at a time when the world economy is struggling to recover, Australia strongly supports the anti-protectionism position that has been advanced by the Canadian Government in the G20 and elsewhere.
In describing the Canadian dairy sector as an 'island of calm' in the international economy, it totally ignored the costs of supply management. Continuing to shelter the sector compromises broad long term Canadian interests such as the fair distribution of benefits and the efficient use of resources. It also impedes Canada's capacity to tackle market access impediments in other markets, which damages the interests of Canada's export focussed sectors. Rather than using price increases and other fixes to address pressures on the sector, a more productive approach would be to focus on preparing the sector for long term competitiveness.
Justin Brown
Australian High Commissioner to Canada