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Us Australia Trade Agreement

The chapter also sets out definitions that will be used throughout the agreement to ensure consistency. In this section, it was agreed on the conditions of fair trade between telecommunications industries in different countries. In particular, the rules exclude measures relating to the transmission or cable distribution of radio or television programmes. Latham reacted unexpectedly by subordinating laboratory support to the free trade agreement to an amendment that would protect PBS. [9] This effectively turned the situation around to Howard: if the government rejected the amendment as unnecessary, it opened up to assertions that it does not protect Australian interests; while he supported the amendment, he tacitly acknowledged that the initial terms of the agreement were insufficient. The bill was eventually amended and passed. Article 19.2 states that “the parties recognize that it is inappropriate to promote trade or investment by weakening or reducing the protection of their respective environmental laws.” The United States and Australia will work to remove health and plant health barriers to agricultural trade, particularly for swine meat, citrus fruits, apples and stone-based fruit For the United States, the free trade agreement improved the overall trade balance and generated a trade surplus with Australia, which increased by 31.7% in the first quarter of 2005 compared to the same period in 2004. U.S. exports to Australia increased by 11.7% in the first quarter of 2005 to nearly $3.7 billion.

Agricultural exports to Australia increased by 20%. [Citation required] In the year following the agreement, Australian exports to the United States declined,[10] while U.S. exports to Australia increased. This was followed by the International Monetary Fund`s prediction that the Australia-U.S. free trade agreement would slightly reduce the Australian economy due to the loss of trade with other countries. The IMF has estimated $US an additional US$5.25 billion a year to Australia under the free trade agreement, but only $US 2.97 billion in additional Australian exports to the United States each year. [11] It is not clear, however, that the deterioration of Australia`s trade deficit with the United States can be attributed solely to the free trade agreement. This could be a deferred effect of the appreciation of the Australian dollar against the U.S. dollar between 2000 and 2003. In addition, this section describes customs cooperation to ensure the implementation of the rules of the agreement and outlines possible measures that can be taken when the exporting country appears to be acting in bad faith. The Agriculture section of the agreement describes the system of removing most tariffs on agricultural products traded between the two countries. It also agrees to eliminate export subsidies if the quantity of goods in question is exported to one of the two countries of the party.

The objective of the “Safeguard measures” section of the agreement is to define an agreed structure for the protection of serious negative effects on each country`s domestic industries during the transition period following the abolition of tariffs. Countries also agree to consider excluding the application of WTO safeguards on a global scale with respect to imports from the other country where such imports are not the source of the harm to domestic industry. The Australia-U.S. Free Trade Agreement is a preferential agreement between Australia and the United States, modelled on the North American Free Trade Agreement (NAFTA). AUSFTA was signed on May 18, 2004 and officially came into force on January 1, 2005. · This is the largest immediate reduction in industrial tariffs ever achieved in the case of a U.S. free trade agreement, and will bring immediate benefits to U.S. workers and businesses in the manufacturing industry.

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