While the United States is not a major direct market for Australian grain, its role as the world’s largest economy means its trade policies influence global market dynamics.
Tariffs of 25 per cent have been placed on goods imported from Canada and Mexico and 20 per cent on imports from China, with reports suggesting tariffs will be put on imported agricultural products from April 2.
GrainGrowers policy and advocacy general manager Zach Whale said the imposition of tariffs was expected to have significant global ramifications, with predicted retaliatory measures potentially adding further uncertainty to international trade.
Mr Whale said with 65 to 75 per cent of Australian grain exported annually, the sector remains heavily exposed to external shocks beyond its control.
“Recent experiences have shown how vulnerable we are to shifts in global trade policy,” he said.
“The lesson learnt is that we need to diversify and expand into new markets to enhance the long-term resilience of the grain industry, and safeguard against future disruptions.
“Given the volatility of the global trading environment, we are calling for the Federal Government to invest $100 million into initiatives that ensure the sustainable growth and market expansion of Australian export-orientated agricultural businesses including additional agricultural counsellors and funding for trade diversification grants.”
Mr Whale said these proactive initiatives play a vital role in mitigating risks and ensuring sustainable growth for Australian grain growers in an increasingly volatile global trade environment.
“Protectionist policies threaten to disrupt international trade flows and place additional pressure on Australian grain exports, which are already exposed to the impacts of global market volatility.
“Rather than waiting for a market disruption to occur, proactive investment and action by the Australian Government can help mitigate risk and deliver real long-term returns to the industry.”
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