The new TPP trade agreement is out in public view and it really shows the stamp of the minor coalition party the Nationals.

Our zero tariffs commitment on manufacturing goods has allowed unprecedented access for our farmers, even potentially shifting aside concerns about some of our adulterated foodstuffs into some once reticent markets.

One of the beneficiaries has been the dairy industry with headlines like these everywhere;

“China free trade agreement expected to tip billions into Australian farms, dairy industry to be popular with investors”

But along with it comes some pretty hefty rules on free trade quite dramatically limiting the ability of governments to intervene in trade related matters.

The recent baby formula shortages begs the question, when push comes to show and the needs of the huge number of affluent households in China start to constantly impact the stocks of the Australian product how long will it be before the less affluent here are forced to buy an imported Chinese product? The reason of course for the demand of the Australian formula from Chinese buyers is the understandable concerns over adulteration of the Chinese product.

When this happens, and it will, how will the government manage the inevitable unrest? Will it be Hockeyesque, calling for people to work harder to afford the Australian made formula? Or will it be to highlight the other benefits to Australians of the free trade agreements and tell them to live with it?

Will it wash?

Interesting times.

SteeleRedux. the other potential huge problem could be our fresh meat.

Just imagine the knock on effect if we see increased prices for fresh food, and the GST is increased by 50% and placed on fresh foods.

We already sell our resources to the highest bidder while paying high prices ourselves, so why not food i guess.

Dear rehctub,

You wrote;

“We already sell our resources to the highest bidder while paying high prices ourselves, so why not food i guess.”

There are already far more millionaire households in China than there are Australian citizens.

There will come a time, and I suspect within the next few years, that Chinese produced baby formula will go on sale on Australian shelves to service the needs and budgets of our less well off. The 'premium' Australian product will mainly go to service the rapidly growing Asian market and to locals with the wherewithal to pay the high, demand driven prices.

All this in the so called 'lucky country'.

Is your response going to be a shrug of the shoulders and a tip of the hat to the Gods of laissez faire capitalism? We most certainly have had our disagreements in the past but I wouldn't have thought you were one for taking this on the chin.

Steel

You appear to be under the impression that government is a corrupt protection racket. While it certainly has explaining power, I don't think you should be shamelssly promoting that view.

Steel, i've always had a beef about farmers, on the one hand chasing the almighty export dollar, while on the other, sticking their hand up for tax payer support when the chips are down.

Perhaps this is an opportunity to say to Aussie farmers, "if you chase the export dollar through the FTA", then you will be ineligible for tax payer funding should you fall on tough times. Then, the dollars that would have gone towards relief funding could perhaps be used to subsidize local formula and other foods for the not so well off Aussies.

The Chinese are buying products from us at multiples of the cost of production.

Somehow this is a bad thing.

Given this price signal, I'd be surprised if manufacturers weren't already planning how to produce more of this high yielding product. More sales for farmers, more jobs in manufacture, transport, the export sector.

Somehow this is a bad thing.