Perhaps the French, with all their ways, are clinging to something we long ago prostituted in our 'national interest' i.e. small holdings and personal dignity.

Behind Mr Vailes vail of national interest, is actually the VESTED interest of the farm lobby, and his willingness to kiss the rear end of China, by not punishing their unfair trade practices of artificially low labor rates of workers in the sweat shops/concentration camps of labour.

So it might not be too much of a stretch to suggest that our government, in its zeal to progress the agricultural and commodity sectors of our economy at the expense of the value adding which we could be doing ourselves, (and that they are always telling us to DO)is embarking on a mildly indirect course of economic and social genocide of segments of the economy which don't fit the agri/commodity model they are persuing.

They may as well line up the producers of goods and services who could compete under FAIR circumstances against a wall and bring out the firing squad.

The problem is, its not JUST the high volume low cost manufactured goods which are all being made in China, we are ALSO losing vital jobs from:

SALES
CUSTOMER SUPPORT
BACK OFFICE WORK/INVOICING ACCOUNTS/CLERICAL

etc .. To India, Malaysia, Philippines and Indonesia.

So, if we lose manufacturing, AND the other non manufacturing jobs to other 'globalized' countries...what do we have left ?

I suppose we have the likes of me, who have a few acres close to the city, and if worse comes to worse can grow their own food.

CONCLUSION.

1/ The cry for 'reduction of trade barriers' is not a cry for even handed reductions and is biased. "Reduce barriers to AGRICULTURAL but not MANUFACTURED goods".

2/ Agricultural Subsidies by France and the EU and USA protect industries against Australian agribusinesses which themselves could not give a damn about the industries they are willing to sacrifice just to sell more of their goods.

3/ When Mark Vaile speaks of 'national interest' we know what he really means.

BOAZ_david

Basically what you're saying is it's all to hard, instead of championing free trade in agriculture, we should instead protect agriculture (more so than we already do) in the name of personal dignity and a farmers right to farm uneconomic, small holdings (lets not even get into an argument about the dignity possessed by a farmer who unable to farm his small holding and support his family is forced to rely on government welfare payments to exist), and while we're at it, throw up barriers to protect every other industry that might possibly be 'threatened' by lower cost overseas producers? While we're at it, lets change our name to the democratic republic of Australia and form an alliance with China against the capitalist west.
What makes you think there is no value adding in this country? There are plenty of industrious folk out there doing just fine, including farmers, by value adding, diversifying and subsequently competing internationally. They dont want, or need trade protection to survive. Australian small business people arent quite as dumb and helpless as you seem to think.

As for your conclusions, politics is politics. You dont go out and argue for change everywhere now. You argue for changes at the edge and you compromise. Especially if you are a country as small and economically insignificant as Australia. And as for your rant against uncaring agribusiness? Which industries are they sacrificing for their own benefit?

The most offensive tariff that we tolerate is home grown. It is the tariff on trade between Australian households. It alters the terms of trade between households and leaves us all poorer as a result. This tariff comes by many names but it is much the same in its effect. I am speaking of course about income taxes, payroll taxes and GST.

If this government wanted to increase trade it could start at home and lower the tax burden that impinges on domestic trade between Australians.

It is amazing that a federal government that was originally formed to lower tariffs now administers the most offensive array of tariffs that inhib the self reliance and prospertity of Australians.

I for one would be happy for Victoria to impose a 45% tariff on wigs made in NSW if we could get rid of the federal government and the roughly 80 to 100% tariff it imposes on most trade between Australian households. It would be a massive improvement towards free trade.

The obsessive focus on lowering tariffs on trade between regions whilst tolerating massive tariffs on trade within regions is myopic and futile. We are wasting our diplomatic and political energies on the wrong causes.

Poverty in truely impoverished nations like Niger and Ethiopia has far more to do with their domestic tax systems than European trade policy. Ethiopia taxes its farmers at nearly 80% and Niger taxes even the poorest people at 50%. Any trade barriers imposed by Europe is merely a minor irritant in comparison.

Free trade matters. It is an ideal worth moving towards. However domestic taxes are the biggest barriers to trade, not cross border duties and tariffs.

Weapon, your response as always is appreciated.

No, its not all 'too hard'. I'm not advocating US to give more protection to Agriculture, we already have far too much of it in the form of not taking the chinese to task for their aritificially low labor rates/sweat shops, abuse of human rights etc in order to destroy manufacturing in other countries for their own benefit.

If China was a democracy, you would not hear a peep out of me. But it isn't and that single factor is what is destroying the jobs of thousands of Australians who on a fair go playing field would otherwise have jobs and happy families.

I say let our agriculture stand on its own merits and don't suck up to the Chinese by NOT punishing them for outrageous human exploitation through selective (and conditional) tariffs. i.e. tarrifs will be reduced in direct proportion to the just wage outcomes of Chinese workers in manufacturing.

Did you notice the OTHER industry sectors being outsourced ? I can understand the desire to profit by reducing labor costs, but my goodness look at how much of our workforce will be redundant as the practice becomes full blown !

Then ask, 'what' will all those unemployed Aussies 'do' ? should we cull them as useless burdens on society ? I'm sure they won't take kindly to that.

What would happen (and has already, which is part of our problem) is that left wing unionists who don't give a damn about actual wage levels, will adopt a messianic demeniore and promise the 'promised land' of milk and honey, just to get power. They will just look for any issue of discontent to exploit politically.

Why are our wage levels so high relative to many places ? THAT is the reason. So the left has stuffed up our competitiveness, and now the right is saying 'forget them, we'll just outsource to India' in order to stay competitive.

If you feel I'm in error, please show in detail why.
cheers

QUOTE: "Why are our wage levels so high relative to many places?"

The answer is that the capital to labour ratio is high. When labour is scarce relative to capital then wages are high. Which is why I think capital gains tax is so stupid. The more plentiful capital becomes in our society the better it is for wages