Australia Says No to Green Trade Barriers

Comments by Australian Trade Minister Craig Emerson received considerable coverage over the weekend, with several pundits weighing in on the debate.

In an interview with Sky News, Dr Emerson attacked European trade restrictions as protectionism under a “green coat of respectability”. Emerson took a rare step for a politician, and called a spade a spade.

Europe has recently threatened to restrict trade with countries who are yet to put a price on Carbon. The Minister assured Australia would not bow to such pressure.

"What it actually is is all those old protectionist instincts coming out and we will use whatever trading rules through the WTO (World Trade Organisation) to fight against the use of these devices to protect industries in Europe or anywhere else from against competition."

Emerson’s comments were well covered in the Australian press. An editorial in The Australian referred to European protectionism as a “euroscam…in a fashionable shade of green”

According to the editorial piece, these developments have “nothing to do with saving the planet, but everything to do with trying to save the EU, which is struggling to rebuild its financial system and its credibility.”

The Minister should be commended for his (verbal) commitment to free trade. However, some commentators noted a hint of hypocrisy in the Australian Government’s message.

During the recent Australian election, Australia’s Agriculture Fisheries and Forestry Minister announced that if re-elected the Government would implement reforms to restrict the sale of illegally logged wood.

The announcement came despite findings from a Government commissioned report showing that trade restrictions would be both ineffective and unjustifiably costly (given the low quantities of ‘illegal’ timber assumed to enter Australia).

Ultimately such a policy would do little to reduce illegal logging imports. The policy was designed to appease the Greens and Unions in a pre-election climate. This is the very type of ‘green protectionism’ that Emerson is now rallying against.