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Objective: To identify important impediments to the development of a globally competitive Australian agricultural sector and support research that will lead to options and strategies that will remove these impediments.
 

RIRDC Global Competitiveness Research Results:
Research publications for sale	Research publications catalogue
Free downloadable research reports	Free Short Reports (research sumaries)
Handbook of New Industries entries
Completed Projects in 2007-2008 & Research in Progress as at June 2008
About the Global Competitiveness  Research Program:
Strategies for 2007-2008	Key longterm strategies
Some Key Performance Indicators	Background
Strategies for 2007-2008	Expected key outputs in 2007-2008
Expected key outcomes in 2007-2008	New Projects funded in 2007-2008
Total program budget 2007-2008
Industry related links:
Department of Foreign Affairs and Trade Dept. Agriculture, Fisheries and Forestry Global Supermarket magazine

• Support analyses identifying new opportunities in the marketplace
• Develop a research program supporting the development of a more globally focused competitive food sector
• Support analyses focusing on domestic impediments to industry performance, thereby air all enhancing export performance and an export culture, particularly in those industries which have previously been focusing domestically
• Develop options and strategies improving global competitiveness of the agricultural sector by improving the current set of trade policies and therefore removing existing trade barriers
• Develop a better understanding of domestic and international markets for agricultural products when there is a clearly established market failure in the provision of such information
• Support analyses of the linkages between various stages in the producer to consumer chain and identify areas — regionally, domestically and internationally — where these linkages can be better integrated and their efficiency improved
• Evaluate other existing and alternative policies and institutions affecting the development of a globally competitive agricultural sector

However Australian farmers face many impediments to their exports. Global markets for many agricultural products are distorted by protectionist policies, especially in the European Union, Japan and the United States. Average tariffs applying to agricultural commodities are more than three times those for non-agricultural goods, and some individual tariffs are as high as 800 per cent. There is also growing competition in export markets as other low cost producers such as Brazil and China expand their agricultural output.

The Uruguay Round of multilateral trade negotiations led to some important gains in reforming world agriculture. Progress in the World Trade Organisation (WTO) however remains slow and major agricultural subsidisers continue to be driven by protectionist interests in their farm sectors. Further agricultural reform is central to the current Doha Round of multilateral trade negotiations which commenced in 2001. In July 2006 these negotiations stalled, principally over differences on agriculture and currently efforts are being made to revive them in time to conclude the round by the end of 2007. Australia’s negotiating strategy has been to form a strategic alliance with like-minded countries through the Cairns Group which now has 18 members and has been influential in both the Uruguay and Doha rounds.

Another important feature of the international trading environment is the proliferation of bilateral and regional trade agreements. The World Bank estimates that these free trade agreements (FTAs) now cover one-third of global trade. Such agreements may not always be beneficial because they are by definition preferential, but they are increasingly being resorted to because of the slow pace of liberalisation through the WTO, the fear of being left behind by other countries entering FTAs and a reduced commitment to the principles of free trade.

Some Key Performance Indicators

• Extent of improvement in export activities by the agricultural sector and associated enterprises
• Change in national and international policies influencing the competitiveness of the agricultural sector
• Utilisation of Program’s R&D output by stakeholders

The focus of proposed new investment in 2007–08 will be on enhancing the effectiveness of value chains in improving Australia’s global competitiveness, investigating the impact of rapidly emerging economies such as India and China and further research on the EU’s Common Agricultural Policy.

Expected key outputs for 2007–08

Research Budget:  $471,000