Australian farmers to be hit hard by US tariff subsidies

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A major US farmer-aid package will hurt Australia's agriculture industry, said the National Farmer's Federation (NFF).

The administration of US President Donald Trump earlier this week announced that it would provide up to 12 billion US dollars in emergency relief for farmers hurt by tariff increases.

Tony Mahar, chief executive of the NFF, said that it was bad news for Australian farmers already struggling with "one of the worst droughts in decades."

"Australian farmers are amongst the least subsidized in the world, which means our agriculture exports are particularly vulnerable to increased government assistance in competitor nations," Mahar said in a media release on Wednesday night.

"Our fear is that this is deepening the potential for a global trade war that will hurt producers and consumers alike."

The NFF called on the Julie Bishop, Australia's minister for foreign affairs, to "register its disapproval in the 'strongest possible terms' with the United States Administration" in response to the relief package.

"It appears the US has ignored the hard-learned lessons taught by the damage caused by trade protectionism," Mahar said.

Source(s): Xinhua News Agency