By Ralph Wragg ... RWE Publisher
Sydney - Friday - July 4: While the Americans are hard at work
espousing a free trade agreement with Australia as a reward for becoming
an ally of the coalition, it isn't quite working out that way.
The goal posts on the level playing field have apparently been
moved towards the American end of the paddock.
Take the case of Australia's long-held wheat trade with Iraq
operating even while Saddam Hussein was in power although there were
threats to cut us off.
After the war, the Americans have been on the doorstep trying to
muscle in on the business.
Now the US has hit on another ploy.
When US subsidies, known as ETI, were banned by the World Trade
Organisation, Congress drew up a replacement bill called the Jobs
Protection Act, which in reality is a 3.5 per cent tax break to offset
the lifting of subsidies that will save the US Government about $50
billion over the next 10 years.
The Bill is expected to pass through Congress this month under
the guise of protecting US jobs.
All American exporters will participate in this new handout.
But the Administration is still facing lobbying from steel
producers, cattlemen and the grain industries seeking protection.
The Australian Government has so far ignored this latest move of
the goal posts in its forthcoming free trade talks in Hawaii.
The Europeans are already frothing at the mouth over this little
bit of artful dodging.
They will retaliate and levy tariffs on US exporters starting
next January.
On top of all this, Australia's domestic motor vehicle industry
will suffer, according to a Citigroup survey.
An AAP story quoting Citigroup claims production from Australian
car makers would fall as they were exposed to tougher US competition.
Citigroup admitted that the Free Trade Agreement was unlikely to
cut all American farm protection despite claims of full liberalisation.
According to the AAP story, there was likely to be pressure on
Australia to change its quarantine system and do away with a number of
its export monopolies, including wheat.
About the only concession we might have a chance of gaining from
the FTA talks is access to US markets, which are still highly
competitive.
ENDS
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- who needs a free trade agreement with the us!!
who needs a free trade agreement with the us!!
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