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USWA opposes U.S.-Australia FTA
By Alan Lee
Chairman, U.S. Wheat Associates
We are very disappointed that the US-Australia FTA did not address the inequities inherent in the Australian Wheat Board (AWB) monopoly. Negotiators made the same mistake when the U.S. signed the original free trade agreement with Canada, and American Wheat producers are still subject to the unfair trading practices of the monopoly up north. Again, U.S. negotiators missed the opportunity to correct the trade distortions as practiced by export monopolies.
While our negotiators were unsuccessful in their attack on the monopoly control of Wheat sales from Australia, they did gain a commitment that reverses Australia's opposition to the reform of State Trading Entities in the World Trade Organization negotiations on agriculture. Although we haven't seen the exact language, the USTR fact sheet indicates that "in response to U.S. concerns about Australia's agricultural state trading enterprises, Australia committed to working with the U.S. in the ongoing WTO negotiations on agriculture to develop export competition disciplines that eliminate restrictions on the right of entities to export." The question remains: If our issue was shunted aside for the "bigger picture" in this FTA, what does that realistically mean for the WTO, where even bigger issues are on the table?
Regretfully, USW has no choice but to oppose this FTA. If we cannot solve trade issues in a free trade agreement, and if the FTA partner continues with unfair trade practices, harming the financial wellbeing of Wheat producers, then the FTA should be defeated and negotiators should go back to the table.
Date: 2/26/04
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