Two of Queensland’s export industries – coal and sugar – have been hit by protectionism in Asia

TWO of Queensland’s most important export industries have been hit by protectionism in Asia potentially costing the state billions of dollars.

Canegrowers chairman Paul Schembri.

TWO of Queensland’s most important export industries have been hit by protectionism in Asia potentially costing the state billions of dollars.

India has announced it will throw $850 million into subsidising the dumping of five million tonnes of sugar on to the global market.

China has also imposed restrictions on the importing of coal into the country in a bid to help local producers and will slow down the customs clearance procedures at some of its ports.

Lobby group Canegrowers said the Federal Government must now stand up and take the issue to the World Trade Organisation.

Chairman Paul Schembri said India was exporting its domestic problem of failed sugar policies which encouraged overproduction.

“Australian growers must not be left to bear the costs of India’s breach of international trade rules,’’ Mr Schembri said.

“On the back of the news that India’s industry is getting the equivalent of a $850-million-dollar assistance package including help to export its subsidised sugar, the global price plunged below US10 cents a pound.

“The price was already below our costs of production, so this further drop is another hit to Australian cane growers and their rural communities.”

He said in the past 10 months, the sugar price had fallen the equivalent of $156 Australian a tonne as a surplus market anticipated Indian subsidised exports.

“With the Indian government confirming the exports will take place, the market fell by a further $14 per tonne overnight to be just on $300 per tonne.

“We don’t want subsidies or handouts,” Mr Schembri said.

“We want the Australian Government to roll its sleeves up, partner with the other affected countries who are members of the Global Sugar Alliance and call India to account before the World Trade Organisation.

“We’ve done some preliminary analysis which clearly indicates that India is in breach of WTO rules.’’

China’s port restrictions come amid growing international tensions over trade on the back of actions by the US Trump administration.

A long queue of coal vessels are waiting off some Chinese ports and many had been turned away in recent months.

The restrictions are understood to relate to thermal coal.

Several ports in southern and eastern China are affected, including the Chuanshon anchorage at Ningbo port.