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Free Trade Agreement Australia And Usa



Australia presented trade initiatives or trade agreements with countries or groups of countries in the table below. 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. The agreement became an important political issue in the run-up to the 2004 elections. After a long period of negotiations under the leadership of Mark Vaile, Howard`s trade minister, the agreement was strongly supported by the Howard administration as a huge potential benefit to the Australian economy and essential to the continuation of the U.S.-Australia alliance. Chapter 4 deals with the trade in textiles and clothing between the two countries.

Most of this section includes rules of origin for textile products and protection of the internal markets of both countries. The agreement provides for an emergency mechanism if the sudden increase in imports due to the reduction in tariffs has negative effects on the domestic industry of the importing country. Australia as a whole is heavily dependent on the primary sector and the main benefits of a free trade agreement between the two countries were seen as better access to the large U.S. market, but heavily subsidized and protected by Australian producers. In particular, the national party in the countryside and in the region is firmly committed to extending the agreement to the export of sugar. The possible provisions of the agreement did not go as far as expected and, as a result, some sugar industry lobbyists, particularly independent Bob Katter, insisted that the free trade agreement be rejected. However, many, like Peter Beattie, then Premier of Queensland, still saw the agreement as a net benefit to Australian agriculture and supported ratification on that basis. The section also provides for the establishment of an agriculture committee that “provides Australia and the United States with a formal opportunity to discuss a wide range of agricultural issues, including trade promotion measures; Barriers to trade And to consult the export competition.¬†Article 21.1 of the U.S.-Australia Free Trade Agreement (AUSFTA) provides for a joint committee to monitor the implementation of the agreement and to review trade relations between the parties. The committee is made up of government representatives, co-chaired by the U.S. Trade Representative and the Australian Trade Minister or their representative.

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