Howard, Vaile in all-out push
for "free trade" agreement with US

by Bob Briton

The Howard Government is redoubling its efforts to get an 
Australia US Free Trade Agreement (FTA) signed, sealed and 
delivered as quickly as possible. Negotiations between the two 
governments resumed last week with Trade Minister Mark Vaile 
doing his best to promote a pact during his lengthy US visit.

The PM and his Cabinet hope to present a secretly negotiated deal 
as a fait accompli to parliament and use it to steamroller the 
necessary legislation through both Houses.

The numerous eloquent contributions to the debate over local 
content at the Australian Film Industry (AFI) awards landed heavy 
blows against the government's sell-out position.

The Prime Minister responded using ambiguous language. He said 
that Australia would not undo longstanding policies such as the 
local rules on existing media. He would, however, be prepared to 
be "fairly flexible" about new media forms. In other words, local 
content rules may lapse when digital TV services take over.

Howard knows there is little support for the abolition of media 
ownership rules, the import of genetically modified food without 
labelling, or for water privatisation, just to take a few 
examples of likely outcomes.

The Government feels vulnerable over the weakness of its 
commitment to the highly popular Pharmaceutical Benefits Scheme -
- a target of the powerful US pharmaceuticals industry.

Ron Pollack, Executive Director of Families USA; a pro-regulation 
lobby group in the US, told the ABC that we should hold on to our 
wallets if the PBS is watered down as a result of negotiations. 
"This is going to be a slippery slope and if the drug industry 
gets some concessions this year, they'll come back next year for 
the next set of concessions."

Howard chooses his words carefully. "I want to make it clear that 
we are not going to trade that wonderful facility away in the 
free-trade negotiations, we're not. The PBS in its essential 
character is just not on the list and is not up for grabs or not 
up for negotiation." [Emphasis added]

The PM makes much of the need to offer concessions in return for 
permission for Australian agricultural produce to compete on US 
markets. We should take note of what happens when smaller nations 
negotiate "free trade" agreements with what the Howard Government 
delights in calling the biggest and most dynamic economy in the 
world.

Chile signed an FTA with the US that takes effect in January. To 
get the US to set aside 15 barriers to trade, Chile had to drop 
52. Among other impacts, cheap US wheat is set to wipe out local 
production. Chilean Christian Democrat Senator Jorge Lavandero 
now protests, "this is not free trade, this is a political 
imposition. We are practically giving up our sovereignty."

The sacrifices made in the name of agriculture could prove 
worthless. NSW Greens Senator Kerry Nettle pointed out the flaw 
in the government's line to The Guardian in a recent interview: 
"Travelling in rural communities I've heard farmers say that what 
stops them being able to export their produce into the US are the 
agricultural subsidies that the US Government pays to its 
farmers. Agricultural subsidies cannot be on the table in a 
bilateral trade negotiation. They can only be negotiated on in 
multi-lateral negotiations."

The US is in no mood for such multi-lateral talks and has already 
rejected requests for an end to the subsidies in its negotiations 
for an FTA with Brazil. This did not stop the US demanding 
changes affecting investment, intellectual property rights, 
government procurement guidelines and other aspects of Brazil's 
independence.

The movement opposed to the changes being floated to local media 
content, the PBS, our quarantine regulations and a host of other 
vital safeguards must keep up their resistance to the FTA threat 
to our national sovereignty. We must not let the government trade 
significant gains made by the people over decades in a few weeks 
of this final round of "free trade" negotiations.

Write now to PM Howard, Mark Vaile and your Senators calling for 
a halt to negotiations and the public release of Australia's and 
the US's negotiating stances.