Kevin Rudd should stop his Government's doublespeak on free trade. In his recent address to the US Chamber of Commerce in Washington DC, he tried to convince his audience and the media that he was committed to free trade, but considering his Government's actions at home, his audience should be wary.
Rudd advocated for free trade, arguing his Government would make ''no retreat into protectionism''. Embracing free trade means more than just not increasing tariffs. It means eliminating tariffs -- subsidies and industry assistance packages that still exist.
Rudd clearly understands the contribution a successful conclusion to the Doha Round of World Trade Organisation negotiations would deliver for Australia and, more importantly, the world's poor. He has spruiked the need for a successful outcome on his visits to Washington and Brussels, and is right to say that a successful conclusion would give the global economy a ''psychological shot in the arm''.
Most of the media focus on the Doha Round has focused on reducing agricultural production and export subsidies by the US and Europe and increasing market access for developing countries' agriculture products. As a unilateral liberaliser, Australia can play a sanctimonious, honest broker in negotiations on agriculture. But industrial products and manufacturing liberalisation is also important to global prosperity. Since taking office, Innovation Minister Kim Carr has established three reviews that are likely to recommend anti-free trade measures -- an Innovation Review, a Review of the Australian Textile, Clothing and Footwear Industry and a Review of Australia's Automotive Industry.
The tragedy of the Government's doublespeak should not be lost on Finance Minister Lindsay Tanner. In a speech to the Melbourne Institute last week, he attacked "producerism". According to him, "producerism exists wherever the state implements regulatory and ownership arrangements that favour or protect particular producer groups at the expense of society as a whole", such as "tariffs, monopolies and other distorting regulatory regimes". He is spot on.
Since taking office, the Government has appointed reviews that are likely to increase public subsidies through research and development funds, industry assistance and freezing tariffs. The cost will come at the expense of Australian consumers, a competitive Australia and helping the world's poor.
Perhaps the Prime Minister would do well to stop listening to Carr and start listening to Tanner.
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