Joint Media Release
20 June 2003
The Minister for Trade Mark VAile and Acting Minister for Industry, Tourism and Resources Joe Hockey
Government Rejects Labor Scaremongering on FTA
The Federal Government strongly rejects repeated scaremongering by trade unions and the Labor Party that a proposed Free Trade Agreement with the United States threatens the Australian auto industry and the jobs of workers in that industry.
The Government has held intensive consultations with the car manufacturers as part of its continuing dialogue with Australian industry over the US FTA.
The industry has expressed its support for the FTA and recognised the gains on offer to the Australian economy of a deeper economic relationship with the US.
The greatest threat to Australia’s auto industry is not the FTA but militant trade unionism. If Simon Crean wants to prove his leadership credentials he should pull his union mates and his trade and industry spokesman Craig Emerson into line.
The auto industry in 2001 suffered from industrial action that was six times the national average –costing the industry millions of dollars.
Craig Emerson’s claim today that the entire Australian auto industry was under threat is a further demonstration of his lack of credibility within Australian manufacturing.
Toyota Australia has reaffirmed today the commitment of the company to its Australian production. Holden, which will begin exports of its Monaro model to the US later this year, has expressed support for an FTA with the US on a number of occasions. The Federal Chamber of Automotive Industries has stated “it is important that Australia explores the opportunities to develop FTAs with major trading partners.”
The auto industry sees strong commercial opportunities in the FTA negotiations. In particular, it recognises that Australian car and component makers would benefit greatly from the removal of the 25 per cent tariff that restricts Australia’s potentitial exports of utility vehicles to the US.
The Government will continue to work closely with the auto industry as the negotiations with the US proceed.
Contacts: Matthew Doman (Trade minister’s office) 02 6277 7420 - Kirsty Boazman (Industry minister’s office) 02 6277 7580