Australian horticulturalists have branded a proposed free trade agreement (FTA) with Chile “absolutely ridiculous” and insisted they will refuse to export produce to the South American country.

The Australian federal government has voted in favour of a move to allow free trade - however, growers fear that Chilean produce will significantly undercut their own.

"It's not going to help Australia, it will be a hell of a detriment," said Dom Cutri of the Stonefruit Export Committee and Horticulture Australia. He said the agreement was “absolutely ridiculous” and the possible price war with Chilean produce could be a “disaster”.

Cutri said the agreement also meant supermarkets could drive prices paid to growers down by threatening to import fruit from Chile, where he understands labour costs are about A$20 (£8.50) a day.

"We've been betrayed because they [federal government] know how we feel - we've been fighting this for a long time and we're struggling badly as it is to make ends meet," he said.

A spokesman for trade minister Simon Crean has previously said the move is "unlikely to impact greatly on horticultural trade, partly because Chile had other export markets”.

Summerfruit Australia president Ian McAlister complained that the FTA had been “fast-tracked”, as under normal circumstances FTAs took four years to negotiate, but the Australia-Chile agreement was completed within 11 months.

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