In the wake of today’s historical U.S.Presidential Election, we can be sure that an Obama-Democratic win has implications for trade in Australia.

“It is essential for Australia to understand that the rules of this game have changed with confirmation of the new President-Elect Obama and his impending trade policies. Attention should be paid to President-Elect Obama’s desire to protect American jobs. President-Elect Obama must now deliver on his election promises and he will do this by promoting a more protectionist American policy.

For Australia, the question is how Mr Rudd and Labor will mitigate the effects of President-Elect Obama’s proposals and how they will affect our Australian economy,” Senator Joyce said.

“The exposure of Australian trade, particularly in our agricultural industry, will be imminent and prominent. Also, our manufacturing industry will face a more parochial U.S. agenda, brought into clear focus by the current financial crisis.”

“As Australia contemplates removing interest subsidies for our farmers, effectively increasing their vulnerability to impending changes in trade policies, America will be reciprocating by granting their farmers further protections.”

“Australia was built on its agricultural strength. This loss of Australian export competitiveness by American domestic policy will bring a reduction in the volume and profitability of the Australian farm sector. Ultimately the reduction in Australian farm volume will lead to domestic inflationary pressures on the price of food in the longer term. Australia was built on its agricultural strength but the exposure of our nation to what I believe will be new U.S. protectionist policies will, if we do not provide domestic mitigating policies, move our nation towards a loss of Australian food sovereignty. This will be by reason that not only will there be the loss of profitability in our domestic industry, but subsidised imported goods will take the place of Australian goods on Australian supermarket shelves.” Senator Joyce said.

Ends