Wheat Export Marketing Arrangements

In 2008, the Australian Government deregulated the marketing of bulk wheat exports by removing the ‘single desk’ operated by AWB (International) Limited. Wheat Exports Australia (WEA) was established under the Wheat Export Marketing Act 2008 (WEMA) to administer an accreditation scheme for bulk wheat exporters. The Wheat Export Accreditation Scheme 2008 (Scheme) also came into effect on 1 July 2008, making it possible for any trader, once accredited, to export bulk wheat from that date. Port terminal operators wishing to export were required to satisfy an additional ‘access test’ to gain accreditation. The legislation also required the Productivity Commission to conduct a review of the arrangements, commencing no later than 1 January 2010 and reporting to the Australian Government by 1 July 2010. Among other key messages, the Commission has found the transition to competition in the exporting of bulk wheat has progressed relatively smoothly, particularly given difficult international trading conditions; the regulatory arrangements for marketing bulk wheat exports have been beneficial during the transitional phase since deregulation; the accreditation scheme, Wheat Exports Australia and the Wheat Export Charge should be abolished on 30 September 2011; the port terminal access test has provided greater certainty for traders and made access easier, more timely and less costly than it could have been by relying on potential declaration under Part IIIA of the Trade Practices Act; however, there are still some transitional issues associated with port access and contestability in the logistics supply chain.