Trading North: Agriculture Committee Report

27 November 2024

On behalf of the Standing Committee on Agriculture, I present the committee's report entitled Trading north: inquiry into the role of Australian agriculture in Southeast Asian markets, together with the minutes of proceedings.

I present today the report of the inquiry into the role of Australian agriculture in South-East Asian markets: Trading north.

In September 2023, the Australian government released a report produced under the leadership of Mr Nicholas Moore AO, the Special Envoy for Southeast Asia, titled Invested: Australia's Southeast Asia economic strategy to 2040, otherwise known as the Moore report. This seminal work highlighted the importance of Australia's relationship to South-East Asia across a whole range of economic activities and made a series of recommendations to improve Australia's engagement with the region. The Moore report also stressed the need to look beyond trade to broader and more closely integrated relationships with South-East Asia.

With trade in agriculture and food being one of the cornerstones of Australia's relationship with the region, the committee was asked to inquire into the role of Australian agriculture in South-East Asian markets, in the context of the Moore report and those recommendations. In particular, the committee was asked to focus on how the Australian government could support the agriculture sector to leverage opportunities in the region, build and strengthen partnerships, and support South-East Asia's food security.

Australia has an important role to play in the food security of South-East Asia, through food exports and by building the capability of the agriculture and food production sectors of the region. Australian technology and production systems also have much to offer. Long-term investment in regional relationships will be vital to progressing trade and regional collaboration and cooperation with our South-East Asian neighbours.

The committee has made 13 recommendations in this report. These recommendations fall within three broad themes: opportunities and challenges, building relationships and enhancing food security while building capability. Most of the committee's recommendations focus on ensuring the government activities around trade, regional engagement, food security, biosecurity and capability building are adequately resourced, in terms of funding and personnel.

There is already extensive trade in food and agriculture between Australia and South-East Asia, underpinned by bilateral and multilateral trade agreements. The growth in populations and incomes within South-East Asia present enormous opportunities for Australia's agricultural industries. A key example of this is the Indonesian government's commitment to provide free lunches and milk to students across Indonesia. That's something that is an idea worth noting, both for the Indonesians and for us. Australia's agricultural industries are well-placed to contribute to this program if the Australian government and industry can successfully engage with their Indonesian counterparts.

Despite the development of bilateral and multilateral trade agreements with the region, market access does remain an issue. Non-tariff barriers are significant and they are a growing problem, requiring constant attention and adequate resourcing by government. Australia's ability to remain vigilant in identifying non-trade barriers and persistence in addressing them will be vital to ensuring continued growth of trade with the region. Efforts to streamline trade through the harmonisation of regulations and standards will also be needed.

This inquiry highlighted the importance of developing relationships over the long term and promoting collaboration in sustained ways. Key objectives include collaboration between government and industry in Australia and closer collaboration with Australia's trading partners in the region. It is essential that government and business operate in ways that accommodate cultural expectations as well as economic considerations. Trade missions, joint ventures and promoting South-East Asian literacy will be fundamental to developing and maintaining these relationships.

Australian agricultural counsellors play a crucial role in developing trade and relationships. The committee has recommended that the Australian government provide more funding to maintain and enhance the agricultural counsellor network in South-East Asia and technical staff required to undertake negotiation and trade cooperation activities.

Collaboration with regional partners is vital to the food security of South-East Asia, especially in the areas of biosecurity, sustainability and climate change. A range of Australian agencies and organisations already contribute to capability building in the agriculture sector of South-East Asia, across projects addressing multiple issues. This effort should be sustained and expanded. Central to this is the Australian Centre for International Agricultural Research, both as a facilitator of capability building and as an agent of Australia's influence within the region. The committee has recommended additional funding for its work in South-East Asia. I would like to conclude with some words of thanks to those who contributed to the inquiry, including the ambassadors of the Republic of Indonesia and the Kingdom of Thailand. The evidence presented allowed the committee to fulfil its task of furthering the work of the Moore report.

I also want to extend my thanks to my committee colleagues, including the deputy chair, Mr Rick Wilson, member for O'Connor, the member for Spence, the member for Macarthur, the member for Lyons, the member for Gilmore, the member for Dawson and the member for Casey. I note the member for Dawson, the member for Spence and the member for O'Connor are present in the chamber for the presentation of this important work, and I do sincerely thank them for their work. We have been a dynamic committee, producing three very important reports throughout the body of this parliament, and I think that work has really been done in a good spirit and most wholeheartedly, and I thank them for that. I would also like to thank the secretary for the committee, Fran Denny, and the inquiry secretary, Dr Bill Pender, ably assisted by Emily Meggs. This has been a great committee to work with and chair, and I sincerely thank those who have made our work possible. Thank you.