Global trade reform probably isn't occupying much of Barack Obama's thoughts on his inauguration day, but it should be his first priority if he is serious about leading the world out of a recession, the National Farmers' Federation says.
America's 44th President was sworn in early this morning (Australian time) and already the world is demanding action from the charismatic figure who has captured the the public's imagination by becoming the United States' first leader of African American descent.
Mr Obama has in recent days tried to soften public expectations for his presidency, as the global financial crisis continues to deliver bleak news for the world economy.
But NFF president David Crombie believes President Obama should focus on breaking the impasse at the World Trade Organisation talks in order to provide an immediate and long-lasting boost to global trade and to farmers' hip-pockets.
"With world economies in freefall and the international food crisis ever-present, leading the charge in trade reform to open up markets could be a key element to solve many of his biggest Presidential headaches," Mr Crombie said.
"The Doha Round of trade reform has repeatedly broken down due to a lack of political will of key players, including the European Union, the United States and big developing countries such as India."
Mr Crombie said this inaction has opened the way for the EU to this week re-instate export subsidies for its dairy producers.
"It's a retrograde, knee-jerk move that makes a mockery of their G20 rhetoric late last year to fast-track trade liberalisation, and only compounds the garbled economic signals besetting world markets as countries attempt to correct the economic downturn," Mr Crombie said.
"President Obama has a unique opportunity to do what no other US leader has ever done… lead the way on trade reform.
"In doing so, drag delinquent nations back to the World Trade Organisation to wrap up Doha and eliminate trade distorting barriers once-and-for-all.
"Breaking down the artificial barriers of tariffs, subsidies and quotas would be a fillip to economies the world over – including the floundering US economy – giving new impetus to world markets.
"At the same time, it would enable farmers across the world to appropriately respond to, and meet, the global food shortage."
Mr Crombie said the current global trade rules were preventing farmers from producing more food.
Meanwhile, during her last news conference in the post of the Bush Administration's United States Trade Representative, Susan Schwab said "significant progress" had been made in the WTO talks, but "obviously it is a disappointment to me that we have not been able to meet the promise of the Doha Round and were not able to close it".
Ms Schwab said it is her hope that the Obama Administration would invest the time and energy necessary to reach a successful, balanced and ambitious outcome to the round which has been going on since 2001.
Despite the desire to conclude these talks and get a deal done, Ms Schwab cautioned that signing a deal for the sake of signing a deal is not the way to go and no deal is better than a bad deal.
"Shutting our doors would encourage reciprocal protectionist action on the part of other nations and really risk a downward spiral," she said.
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