Associated Press | By Mike Corder | Feb. 9, 2004
The ink was barely dry on a multibillion dollar U.S.-Australian free-trade deal Monday before opposition parties and farmers began condemning it, saying it was a sellout that ignored the interests of Australian agriculture.
The Labor Party promised tough vetting of the deal and vowed to torpedo the accord if it turns out not to be in Australia's national interest.
"If we were asked to vote on it today or in the parliament tomorrow we would be opposing it," said Labor leader Mark Latham. "It is not a free-trade agreement at all, it's a partial trade agreement that from our assessment this morning is not in Australia's interest."
The pact, reached Sunday after months of negotiations, will eliminate duties from more than 99 percent of American manufacturing exports to Australia and 97 percent of manufactured goods that Australia sells to the United States, trade officials said.
The nations agreed on the deal following a phone call between Prime Minister John Howard and President Bush, who are close allies in the war on terror and the Iraq campaign.
U.S. Ambassador Tom Schieffer said the two leaders' involvement was crucial.
"Had it not been for the president's commitment to get it done, we wouldn't be here today," Schieffer said.
U.S. Trade Representative Robert Zoellick hailed the deal, which requires approval from the U.S. Congress, as "the most significant immediate cut in industrial tariffs ever achieved in a U.S. free-trade agreement."
It left out concessions to Australian sugar farmers that would have enabled them to sell more sugar to the United States. Also, increased access to U.S. markets for beef producers will only be phased in over 18 years.
"Australian sugar producers will be justifiably frustrated by this outcome. It's extremely hypocritical," said Peter Corish, president of the National Farmers' Federation. "The U.S. is a huge agricultural exporter and demands access to overseas markets, but continues to hide behind a veil of protection in its own market."
Howard defended the pact.
"It will add enormous long-term benefits to the Australian economy," he said. "It recognizes that Australia's economic partnership with the United States is as much about the future as it is about past and current traditional patterns of trade."
Howard said sugar was sacrificed in the interest of sealing a wide-ranging deal.
"I came to the conclusion that it would have been against the national interest to give up a deal that is going to be of enormous benefit to the rest of the economy because we couldn't get something on sugar," the prime minister said.
A statement from Zoellick's office said the agreement could increase American manufacturing exports to Australia by $2 billion a year. It would include aircraft, automobiles and auto parts, machinery, computers, chemicals and wood and paper products.
Howard said it could boost the Australian economy by up to $3 billion a year
Australia buys more goods from the United States than from any other country. Total trade amounted to $28 billion in 2002.
Howard's government now faces a battle to get legislation clearing the way for the deal through the senate, which has blocked a string of government bills in recent years.Associated Press:
