Another State Signs Up to the FTA

Trade Minister Mark Vaile today welcomed news that the US state of Michigan had agreed to give Australian bidders access to government business under the Australia United States Free Trade Agreement.

"The government procurement chapter is one of the major gains for Australia under the FTA and the extension of non-discriminatory access to government business in the State of Michigan is an added benefit," Mr Vaile said.

"This will bring to 28 the number of US states that have offered non-discriminatory access to Australian bidders for government business.

"I encourage state governments in the US to join the FTA and hope that more will do so before the FTA comes into effect."

Michigan is one of the larger procuring States in the US. It will join California, New York, Texas, Pennsylvania, and Florida who have already agreed to join the FTA. These States represent six of the eight largest procuring states in the US that are party to the World Trade Organisation agreement on procurement.

"The Michigan government procurement market adds to the hundreds of billions of dollars worth of government procurement opportunities for Australian companies in the US as a result of the FTA," Mr Vaile said.

The FTA will put Australian bidders on a level footing with US bidders for the first time for procurement by the listed agencies and above the contract thresholds in the Agreement. It will remove discrimination in the market preventing Australian bids being considered for US federal contracts and will provide a waiver from the Buy America Act.

Contact: Ursula Carolyn (Ministerial) 02 6277 7420 or Nicole Guihot (Departmental) 02 6261 1555