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As Albanese plans Trump talks, Jim is worried about his farm

By Mike Foley and Paul Sakkal
Updated

Farmers fear Australia will open its borders to beef from Mexico and Canada, as the Albanese government seeks an exemption from Donald Trump’s tariffs without buckling to US complaints over its teen social media ban and big tech crackdown.

Prime Minister Anthony Albanese is expected to meet Trump later this month, sparking warnings from farmers that there must be no compromise on biosecurity to appease the White House, after this masthead revealed on Friday that a biosecurity review could let North American beef into Australia.

Jim Walker with his cattle on his property at Rawsonville just outside Dubbo.

Jim Walker with his cattle on his property at Rawsonville just outside Dubbo.Credit: Belinda Soole.

While US farmers have been permitted to export locally grown beef to Australia since 2019, none has been sent. Instead, the US industry wants access for all the beef in its supply chain, including from stock raised in Mexico and Canada but slaughtered in the US.

Biosecurity officials have not approved imports from these countries, and Albanese said on Friday that Australia would not compromise its biosecurity status even as he opened the door to restarting beef exports.

“We’ll never loosen any rules regarding our biosecurity,” he told ABC Melbourne. “If things can be sorted out in a way that protects our biosecurity – of course, we don’t just say no.”

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Agriculture sector representatives were briefed on Friday by government officials. They did not reveal details of how Australia could change its rules to accommodate the US beef supply chain, but said the review would be finalised soon.

Industry sources speaking on the condition of anonymity said the only way Albanese could appease the Trump administration, without changing Australia’s biosecurity rules, would be if the current review paved the way for all the beef in their supply chain to be sent to Australia.

National Farmers Federation president David Jochinke said Australia’s disease-free status was crucial for the red meat sector, which depends on its clean reputation to export around 75 per cent of its product overseas.

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“Let’s be abundantly clear, our biosecurity isn’t a bargaining chip. We have the world’s best standards, backed by science, and that’s how it needs to stay,” Jochinke said.

Australia is seeking exemptions on all of its exports under the US’s sweeping tariff regime, but officials believe it is unlikely the 10 per cent baseline will be dropped. The Trump administration has imposed 50 per cent tariffs on Australian steel and aluminium imports, which Australian ministers are hopeful can be reduced in line with the UK.

On top of beef, the government also plans to use Australia’s abundant supply of critical minerals, which are key to making advanced electronics, as a bargaining chip with the US.

Trump administration officials have also expressed frustration about Australia’s sweeping tech agenda that includes a scheme to force firms such as Meta to pay for local news, and a social media ban on under-16s.

But a government spokesperson said Australia would not back away from these policies: “The Albanese government is progressing the electoral mandate to implement the social media minimum age and news bargaining reforms.”

US beef was banned from Australia in 2003, following an outbreak in cattle of mad cow disease – an illness that can cause a fatal brain disorder in humans.

The ban was lifted in 2019, as the mad cow outbreak subsided. But the risk of disease overseas remains a key sticking point for the Australian red meat sector, which generated $80 billion in turnover last year.

The federal government has estimated that a foot-and-mouth disease outbreak, for example, could cost the economy $80 billion.

Jim Walker, a beef producer at Rawsonville near Dubbo, said farmers would bear the brunt of an outbreak, which could force farmers to destroy their cattle to stop the disease.

“We don’t need any outside meat. The giant risk is disease coming in,” Walker said.

“I’d shudder to think what would happen to the business if we got foot and mouth here.”

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One industry representative told this masthead that for the government to maintain credibility for its negotiating skills must get a quid pro quo from the US government with improved access for Australian beef to the US.

Australia’s beef exports to the US were worth $3.3 billion last financial year, with about 6 billion American hamburgers made from Australian beef each year.

Aluminium and steel exports to the US are worth $1 billion a year.

Agriculture sector consultant Patrick Hutchison, of Gibraltar Strategic Advisory said if US exports to Australia restarted, they would be modest.

“US exports would only play a very niche role in the market here, like in food service or potentially, US-aligned supermarket chains,” Hutchinson said.

Nationals leader David Littleproud said the government must not compromise biosecurity in trade negotiations.

“Rather than jeopardise our beef industry, Australia should be leveraging off our strong historical ties and areas such as critical minerals and AUKUS, using real leadership to obtain a fair deal,” he said.

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Original URL: https://www.smh.com.au/link/follow-20170101-p5m5eq