East Timor troubles raise trade fears

By Boyd Champness

AUSTRALIAS condemnation of the Indonesian Government over the East Timor crisis and its desire to head the peacekeeping force into the troubled region has exporters concerned over the degree of backlash from Indonesia.

With a third of Australias cotton exports sent to Indonesia, a further A$700 million (£280m) a year in wheat trade, and live cattle exports enjoying a renaissance, any repercussions would be damaging to Australias agricultural sector.

“The cotton industry is worried, but weve just got to take a wait-and-see attitude at this point,” cotton shippers association chairman Gordon Sherry told The Weekly Times.

“The real pressure will happen next April, when contracts come up for negotiation.”

To make matters worse, the Indonesian Rupiah has plunged, placing further strain on the countrys ability to manage its economy.

However, the country has so far managed to avoid international sanctions.

A spokesman for the Australian Wheat Board told the newspaper that he was not prepared to speculate on particular concerns, saying there were broader national impact issues and human rights issues to worry about before concerning himself with “what if” scenarios.