Fed: Aust export monopolies face US action: Labor warns

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Fed: Aust export monopolies face US action: Labor warns

CANBERRA, Dec 19 AAP - Australian export monopolies would be targeted by the UnitedStates in the World Trade Organisation (WTO), Labor said today.

Opposition trade spokesman Craig Emerson and Labor's primary industries spokesman KerryO'Brien said a move by the US against the Canadian Wheat Board was just the first of Americaninitiatives against single desk sellers.

The US yesterday signalled it would take WTO action against the board, arguing it artificiallyprotected the Canadian market.

Trade Minister Mark Vaile has said the government will watch the proceedings carefully,and may join it on the Canadian side.

Australia has a number of single desk sellers, such as AWB Ltd (formerly the AustralianWheat Board) and in sugar and rice.

Dr Emerson and Senator O'Brien said the US action was a clear indication it would takeon all single desk sellers, including those in Australia.

"A successful challenge to Canada's single desk for wheat exports will have a disastrousimpact on Australia's export marketing arrangements for wheat, sugar and rice," they saidin a statement.

"It is clear the US intends to challenge all single desk arrangements, including thosethat serve the interests of Australian farmers."

Dr Emerson and Senator O'Brien said the government had to do more than just say itwas watching the case.

"Now is the time for the Howard government to join the action in the WTO and defendthose very arrangements," they said.

"Mr Vaile must act in the interests of Australian grain and sugar growers in this case.

"The minister's promise that he'll watch the case very closely is not nearly good enough."

Dr Emerson and Senator O'Brien said the US action also proved a free trade agreementbetween America and Australia would not end trade disputes.

Canada is a member of the North American Free Trade Agreement with the US and Mexico.

AAP sw/kjp/mg/sb

KEYWORD: US TRADE