Trade agreement with Australia disliked by some ag groups

From Staff Reports

Feb. 19, 2004 -- Some U.S. agricultural groups have expressed concern with the agricultural trade agreement reached Feb. 8 between the United States and Australia.

"We still do not have assurance that American farmers will see any future returns from opening the border to Australian agricultural products," said National Farmers Union (NFU) President Dave Frederickson. "While it appears our trade negotiators have attempted to limit the potential damage to our beef and dairy markets, the future implications of this agreement on these sensitive markets are ominous."

Besides the U.S. beef and dairy markets, America's sugar market was also protected in the trade deal.

Western Organization of Resource Councils (WORC) stated the agreement "threatens the livelihoods of family farmers and ranchers" specifically because it immediately ends, or phases out, tariffs for many agricultural products including beef, lamb, sheep, wool, wheat, and dairy products.

Beyond the realm of agriculture, the agreement could increase American manufacturing exports to Australia by $2 billion a year, cited U.S. Trade Representative Robert Zoellick. It would include aircraft, automobiles and auto parts, machinery, computers, chemicals; and in the realm of agriculture - wood and paper products.

According to a WORC spokesperson, Gilles Stockton, a rancher from Grass Range, Mont., the agreement tries to mollify U.S. beef producers by phasing in more beef imports from Australia over the next 18 years.

Although cattle ranching is one on the most affected industries in the trade agreement with Australia, the U.S. trade negotiators never consulted with the American cattle producers, Stockton added. "The U.S. Trade Representative negotiated away the future of American agriculture without any input from family farmers and ranchers like me," he said. "That's blatantly undemocratic."

NFU's Frederickson added he expects Australian beef exports into the United States to increase dramatically in the second year of the agreement and will expand more than 70,000 tons within the first two decades.

Frederickson and other industry experts also anticipate increased imports of dairy products, including certain products previously excluded from the U.S. market, at a time "when dairy imports are at record levels and dairy prices have been at record lows." Import competition of U.S. domestic seafood, peanuts and citrus markets is also expected to increase in the next several years. The agreement immediately lifts tariffs on most lamb meat and wool and phases out other restrictions over four years. It also immediately ends tariffs on wheat and cereal flour mixes.

The U.S.-Australian free trade agreement requires approval by the U.S. Congress, and is part of a larger agenda of free trade agreements, such as the Central America FTA with Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, which will also be presented to Congress this year.

Reports from Australian news sources said the agreement gives Australian agriculture a significant boost in the U.S. market, yet early reports said Australian farmers feel the agreement is a "sellout that ignored the interests of Australian agriculture."

The agreement eliminates duties from more than 99 percent of American manufacturing exports to Australia and 97 percent of manufactured goods that Australia sells to the United States, trade officials said.