Australia 'remains strong' despite Russia blocking trade

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Australia 'remains strong' despite Russia blocking trade

The Australian Government has said it is disappointed by the action taken by Russia in blocking agricultural imports, and has questioned the legality of such a bold move. lemons_78126631 small

The Trade and Investment Minister Andrew Robb and Agriculture Minister Barnaby Joyce issued a joint statement saying that Australian still 'remains strong' even with one market fewer than before.

"Our priority is to ensure the ongoing success of Australian agricultural producers and exporters. The government is already working to ensure Australian producers have access to a wide range of alternative markets," the statement read.

"Australia stands with others in the international community in taking direct and deliberate action regarding sanctions in relation to Russia's deplorable conduct in Ukraine, including Russia's purported annexation of Crimea.

"The loss of any market is always of concern, and we will work closely with affected producers to minimise the impact on their business."

Australia's trade with Russia represents just over 0.4% of its total, and one percent of agricultural exports.

Agricultural exports to Russia in 2013 were valued at about AUD$405 million (US$376 million), of which fruit and nuts made up AUD$9 million (US$8.4 million).

Russia also ranks as 28th on Australia's list of export destinations.

"The excellent reputation of our agriculture sees it in strong demand in many other major markets including China, Japan and Korea," the statement continued.

"Our immediate focus is to manage those exports that are currently at sea or in transit to Russian markets and to assist exporters in redirecting them, wherever possible, to alternative destinations."

More opportunities have been opened up by free trade agreements with major markets like Japan and South Korea, and the industry hopes China will soon be added to that list.

The ministers went on to say they were concerned that Russia's ban did not comply with World Trade Organisation (WTO) rules.

"We are considering all options in relation to these new restrictions, and will be consulting with other affected trading partners."

"The people who will be affected most by Russia's actions are ordinary Russian people. There are no winners in what Russia has done."

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