The Australian | By Christine Wallace, Robert Lusetich, Roy Eccleston | March 4, 2004
THE free trade deal between Australia and the US gives Australian farmers fewer benefits than publicly claimed, according to a secret public service document.
A paper summarising the farm side of the FTA, obtained by The Australian, shows US farmers can call on price safeguards for a far wider range of goods than realised to limit Australian exports should market conditions turn against them.
Thirty-three horticultural products will be subject to price-based "safeguards" limiting market access under the FTA during the 18-year tariff elimination period.
Documents released when the deal was announced last month included brief mentions that Australian cattle and dairy farmers' access could be affected by market fluctuations facing US ranchers and dairy farmers.
But the briefing paper discloses that a large number of horticultural products will face similar "safeguards" protecting US farmers.
Government sources confirmed this last night but said horticulture industry groups were aware of the safeguards.
"There is a price-based safeguard that can be applied in the transition period to a pre-agreed list of 33 'sensitive' products," the document says.
It also reveals worse conditions for the dairy industry than previously stated, pointing out that the FTA only allows for 5 per cent growth in the quota and no reduction in tariffs above that level.
In contrast, President George W. Bush's report to Congress on the US trade program, released on Tuesday, announces that the FTA will "provide US firms free access in all goods".
"All US agricultural exports to Australia ... will receive immediate duty-free access," Mr Bush said.
The 1000-page FTA text has still not been released but US sources yesterday cautioned against "reading anything" into the delay.
"We are working hard to make the text available as soon as possible," Richard Mills, a spokesman for US Trade Representative Robert Zoellick, said yesterday.
Mr Mills sought to downplay accusations Australia got a raw deal in the ability to bid for state government contracts under the FTA.
He said the row over the state procurement markets could have been averted if Australia were a signatory to the WTO government procurement agreement.The Australian:
