Australia–United States Free Trade Agreement
The Australia – United States Free Trade Agreement (AUSFTA) is a preferential trade agreement between Australia and the United States modelled on the North American Free Trade Agreement (NAFTA). The AUSFTA was signed on 18 May 2004 and came into effect on 1 January 2005.
- United States–Australia Free Trade Agreement (AUFTA) (American English)
- Australia–United States Free Trade Agreement (AUSFTA) (Australian English)
- United States–Australia Free Trade Agreement (AUFTA) (American English)
- Australia–United States Free Trade Agreement (AUSFTA) (Australian English)
18 May 2004
18 May 2004
1 January 2005
2 months after notification of each state that all internal procedures have been completed
Mark Vaile
(Minister for Trade)
Robert Zoellick
(U.S. Trade Representative)
To implement the United States-Australia Free Trade Agreement
24 June 2004
13 August 2004
16 August 2004
U.S. attitudes to the FTA[edit]
After the FTA was signed, there were initially concerns that the American agricultural sector would lobby against the agreement, due to a fear that it could interfere with the government's farm subsidies program. However, the agreement, with time limits on importation of Australian agricultural products such as beef and sugar cane managed to allay the concerns of the American agricultural market (while greatly frustrating many Australian producers).
A coalition of trade unions and other groups did speak out against the agreement on the basis that it would cause similar problems to those experienced by NAFTA.
More substantial lobbying was undertaken by American pharmaceutical companies, who were concerned about the Australian Pharmaceutical Benefits Scheme. See below.
American manufacturing lobbies strongly supported the FTA.[5]
On 15 July, both houses of the United States Congress gave strong support to the FTA. The agreement was also supported by Democratic Party Presidential nominee John Kerry.
Additionally, labour groups expressed concern regarding the agreement. In a report to the USTR office, the Labor Advisory Committee (LAC) recommended that Congress reject the U.S.-Australia FTA because they believed the agreement failed to meet congressional negotiating objectives.[6]
Australian attitudes to the FTA[edit]
Support[edit]
The agreement became a major political issue leading up to the 2004 Elections. After a protracted period of negotiation under Howard government Trade Minister Mark Vaile, the agreement was strongly supported by the Howard government as an enormous potential gain to the Australian economy and as essential to the continuation of the U.S.-Australia alliance.
The government relied on estimates of the economic benefits of the FTA computed by the Centre for International Economics, a consultancy group. The leading group supporting the FTA was called Austa. Austa's arguments focused on the dynamic benefits of integration with the U.S. economy.
Opposition[edit]
Criticisms of the FTA appeared from a number of sources and on a number of grounds:
Australian free trade agreements: