5 November 1995
Senator McMullan said the United States has a generally open market which provides substantial opportunities for Australian companies with the right products and services and a professional commercial approach to the market.
"But, in a number of areas of key importance to Australia, the United States maintains a range of trade barriers and practices which distort our trade relationship," Senator McMullan said.
"Because many of these trade barriers are concentrated in areas where Australia has the greatest competitive strengths, they dramatically curb the effectiveness of Australian exporters seeking entry to US markets.
"This is particularly the case in the agricultural sector, where we have a number of long-standing complaints in areas such as sugar and dairy products."
The survey shows that the US sugar regime has cut Australia's exports to the US to less than one-third of their pre-1982 levels, with the price-depressing effect of the program resulting in a net loss to Australian exporters of more than US$270 million a year.
US agricultural export subsidy programs such as the Export Enhancement Program (EEP) and the Dairy Export Incentive Program (DEIP) - a major source of tension in the bilateral relationship in recent years - are highlighted in the survey.
"The Government is continuing to press the US Administration to think seriously about a permanent suspension of these programs as a signal of their commitment to further liberalisation of international agricultural trade," Senator McMullan said.
"But there are also significant barriers to Australian exports of manufactured products and services.
"One of the more quirky barriers to Australian exports is the so-called Jones Act of 1886 which effectively prohibits importation of foreign-built ships into the US.
"As a result, Australian high speed ferries - among the best in the world - cannot be sold directly into one of the most affluent markets in the world.
"Overall, US barriers to Australian manufactures cost around A$600 million a year in lost export opportunities."
Senator McMullan said all the US barriers covered in the survey take on added significance considering Australia currently has a bilateral trade deficit with the US of more than A$11 billion.
"It is important, however, that we do not single out the US, as there are many countries which maintain barriers that disadvantage Australia.
"The Government is working hard to address trade barriers across the board.
"For instance, we are working bilaterally to seek improved access to the US market through the Australia/US Trade and Investment Framework Arrangement (TIFA), with both sides looking to make progress on the basis of a 'market access' checklist.
"On the multilateral level, trade barriers continue to be addressed as countries meet their Uruguay Round obligations, and further progress will be made through the APEC process."
Senator McMullan said the Government recently introduced an Export Barriers Reporting Scheme which will develop and maintain a database of barriers to Australian exports.
"The Scheme allows Government and industry to work together to create greater market access for Australian products and services," Senator McMullan said.
The DFAT survey, now in its third year, provides a detailed study of US tariff and non-tariff barriers for goods and services, agricultural export subsidy practices, access restrictions in the government procurement market, and shortcomings in areas such as intellectual property protection.
Further information:
Senator McMullan's office: John Flannery, (06) 277 7420, 0411 414 691
DFAT: Justin Brown, (06) 261 2711