Australia-United States Free Trade Agreement to Commence on 1 January

Australia's Trade Minister Mark Vaile and the US Trade Representative Bob Zoellick announced today that the final arrangements are complete to allow the Australia-United States Free Trade Agreement to enter into force, on schedule, on 1 January 2005.

Speaking from Santiago, Chile, where both are attending the APEC Ministerial meeting, Mr Vaile expressed his delight that both economies can begin to benefit from this historic agreement without delay.

"This is the most important bilateral deal that Australia has ever concluded," Mr Vaile said. "It will deliver real benefits to all sectors, across all states and territories."

Independent economic analysis suggests the FTA with the US will generate an annual $6 billion economic benefit and see the creation of over 30,000 jobs.

"We have entered into a closer economic partnership with the most dynamic economy in the world," Mr Vaile said. "The United States is the largest importer in the world, the largest consumer of goods and services and the largest investor. This will create tremendous opportunities for Australian business."

Mr Vaile pointed out that over 97 percent of Australian exports to the United States, worth $5.84 billion last year, will be duty free from the date the agreement enters into force.

"Business communities in our two countries are anxious to get on and exploit this new environment. They want to take advantage of the opportunities we have created for them and produce economic benefits and new jobs."

"I am delighted to confirm that this historic agreement will enter into force on schedule on 1 January 2005."

The Australian and US Governments have exchanged diplomatic notes certifying that each has made the necessary domestic arrangements to allow the agreement to be implemented on 1 January.

"We have had intensive discussions about the nature of our commitments to each other and about the way Australia's implementing legislation implements those commitments," Mr Vaile said. "It was a very useful process and will contribute to the smooth operation of this agreement."

Contact: Matthew Doman (Canberra) 02 6277 7420 or 0418 273 475 - Carissa Buckland (Santiago) +61 418 255 981