Media release

22 July 2004 - MVT62/2004

The Australia-US FTA Driving our Future Automotive Products

 

Australia's automotive parts exporters will be a key beneficiary of the Australia - United States Free Trade Agreement (AUSFTA), Mark Vaile said today at the National Convention of the Federation of Automotive Products Manufacturers (FAPM).

Reaffirming the Howard Government's commitment to pursuing market openings for our automotive exports through bilateral trade agreements, Mr Vaile forecast continued strong export growth for the sector as a result of the Australia-United States FTA.

"The potential opportunities to increase our $750 million worth of automotive exports to this market are huge. After all, more cars are sold in the US in a week than are manufactured in Australia each year.

"The US has agreed to remove, from day one, all tariffs on automotive products.

"This means the elimination of the 25 per cent tariff on light commercial vehicles, which will provide a significant opportunity for Australian ute manufacturers.

"I acknowledge and welcome FAPM's consistent support for the Australia-US FTA.

Independent economic analysis suggests the FTA will result in a boost to the Australian economy of over $6 billion a year, one decade after coming into force, and create more than 30,000 additional Australian jobs.

"The Agreement is undoubtedly in Australia's national interest and it beggars belief that Mark Latham will not immediately indicate his strong support for it."

 

Media contact: Matthew Doman (Canberra) +612 6277 7420. Nicole Guihot (departmental) 02 6261 1555