The wool export industry and the Australian government have been unable to come to an agreement about wool export credit insurance.
Credit insurance is needed when exporters sell goods overseas - mainly into Europe - in case customers do not pay. Without credit insurance, companies can not forward sell as there is no guarantee payment will be made.
Members of the wool industry met with the Federal Trade Minister and the Federal Agriculture Minister this week to try and convince them to provide the industry with a solution. It is understood the discussions between the industry and government are ongoing.
As global financial conditions improve, it is hoped that commercial companies will step in to provide insurance, negating the need for government assistance.
Reprinted from ABC Rural Australia