Australia – United States FTA Benefits both Economies

Deputy Prime Minister and Minister for Trade Mark Vaile said today that the Australia-United States Free Trade Agreement (AUSFTA) is already succeeding in integrating both countries’ economies and will benefit both sides for decades to come.

Speaking from Washington following the inaugural meeting of the Australia-United States FTA Joint Committee Mr Vaile said, “My meeting with US Trade Representative Rob Portman was extremely constructive and highlighted the gains both countries have achieved in the first year of operation of the Agreement”.

Mr Vaile pointed to real gains in 2005. Sheep meat and lamb exports increased by 20% to $A350 million, dairy exports up 35% to $165 million and Australian services exports to the US increased by 4.1% to $4.5 billion.

“This is a dynamic Agreement that will strengthen our long term relationship with the world’s largest economy. US GDP is $16 trillion. Our discussions today focussed on the way forward in implementing the AUSFTA.

“I raised the important issue of improved access to the US market for Australian sugar producers and reinforced Australia’s ability to supply sugar to meet additional allocations in the future. I welcomed the 52,000 tonne increase in sugar access to the United States from Australia in the past year.

“While we have had strong increases in sheep meat and lamb exports we also agreed to look at ways of addressing the remaining barriers, particularly in the valued added sector,” Mr Vaile said.

Both Ministers agreed to work on mutual recognition issues for professional accreditation, especially in law, engineering and accounting. This will enable more Australian professionals to service the US market.

Mr Vaile also encouraged USTR Portman to consider further integration of financial services.

Mr Vaile said that the positive tone of the first Joint Committee meeting reflected the already close trading relationship between Australia and the United States, bilaterally and in the World Trade Organization.

“We had a focused discussion on how best to progress the Doha Round, which is at a critical phase. USTR Portman and I are travelling to London this weekend for a meeting of G6 ministers to see if we can make progress on key issues, particularly market access.

“I am committed to working with the US to achieve our high ambitions for the Doha Round, including a good outcome on agriculture,” Mr Vaile said.

Contact: Mr Vaile's Office 02 6277 7420, Departmental 02 6261 1555