The following article was published by The Guardian, newspaper of the Communist Party of Australia, in its issue of February 10th, 2004.
Reproduction of articles, together with acknowledgement if appropriate, is welcome. The Guardian, 65 Campbell Street, Surry Hills, Sydney 2010 Australia. Editor: Anna Pha Communist Party of Australia, 65 Campbell Street, Surry Hills. Sydney. 10 Australia. General Secretary: Peter Symon Phone (02) 9212 6855 Fax: (02) 9281 5795 Email CPA [EMAIL PROTECTED] The Guardian [EMAIL PROTECTED] Subscription rates are available on requests. Free Trade Agreement -Corporate take-over Jules Andrews The Free Trade Agreement announced by the Australian and US Governments on February 8 in Washington amounts to a total capitulation by the Australian Government. It will be a huge disaster for all Australians, in all sectors of the economy, if it goes into operation. This is not, as the US and Australian Governments would have us believe, a mutually beneficial economic alliance between strategic and equal partners. It amounts to a take-over by US corporations in the interests of US corporations at the expense of the Australian people. The New York Times bills the deal as "a rare trade victory for the Bush administration". It signs away Australia's sovereignty and economic independence. It concedes economic, social and cultural sovereignty to the US corporate sector. Howard and other Liberal Government Ministers declare that Australia's small gains will bring "enormous long-term benefits to the Australian economy". They are lying, yet again. Australia's enormous losses are hidden in the detail. Despite the initial bravado and jubilation coming from the Federal Government, Mr Howard has now conceded that "This is not a perfect agreement but it was the best we could get in the current circumstances". The "circumstances" he is referring to are his complete subservience to US interests. Howard has made a political decision which sacrifices Australia's interests and sovereignty. The nature of its imperfections can be gleaned from the Office of the United States Trade Representative: "More than 99 percent of US exports of manufactured goods to Australia will become duty-free immediately upon entry into force of the Agreement". Manufactured goods currently account for 93 percent of total US exports to Australia. According to the US's official estimates, this could result in a US$2 billion (A$2.6b) increase in imports of manufactured goods from the US. "This is the most significant immediate reduction of industrial tariffs ever achieved in a US free trade agreement", declares the US Trade Office. The FTA is a political victory for the Bush administration in an election year - many gains without the strongly opposed concessions that US farmers feared, such as in sugar. Prime Minister John Howard and Trade Minister Mark Vaile, who appeared completely out of their depth, could hardly have done more to please President Bush or to sell out Australian interests. Despite the reassurances Howard may give, agriculture, manufactured goods, financial services, intellectual property, investment, health, pharmaceutical benefits, education, entertainment, media, automotive, telecommunications, e-commerce, quarantine, technical regulations and standards, environment and labour are all up for grabs under this agreement. The agreement goes far beyond a trade agreement. It covers other areas such as foreign investment, competition policy, government procurement, bringing domestic regulations into line with those of the US and the loss of other sovereign powers. Conflicting assessments of the deal abound: US foreign investment Australia says: "The Agreement preserves Australia's foreign investment policy, but with a range of changes that maintain our ability to screen all investment of major significance." The US says: "US investors enjoy in most circumstances the right to establish, acquire and operate investments in Australia on an equal footing with local investors, ." Pharmaceutical Benefits Scheme Australia says: "Access by Australians to affordable medicines under the PBS will be maintained under the AUSFTA." "The Government has delivered on its commitment that the price of prescription medicines will not increase as a result of this Agreement." The USA says: "Australia will make a number of improvements in its Pharmaceuticals Benefits Scheme (PBS) . including establishment of an independent process to review determinations of product listings". [emphasis added] This in effect will remove control from government bodies of listings of pharmaceuticals on the PBS and pricing. "The FTA establishes a Medicines Working Group to further promote the agreement's public health principles through an ongoing dialogue between the United States and Australia." Clearly the gate is being left open for a future full-scale assault on the PBS by US Pharmaceutical companies Local content rules Australia says: "The Govern-ment has protected our right to ensure local content on Australian media, and retains the capacity to regulate new and emerging media, including digital and interactive TV". The USA says: "Australia will accord substantial market access across its entire services regime, offering access in sectors such as . audio/visual and entertainment." "In broadcasting and audiovisual services, the FTA contains important and unprecedented provisions to improve market access for US films and television programs over a variety of media including cable, satellite, and the Internet." Quarantine control Australia says: "The integrity of Australia's quarantine regime and our right to protect animal, plant, and human health and life are preserved". "A framework for discussions on specific products has been established". Which products? And what will be the outcome of the discussions? The USA says: "Food inspection procedures that have posed barriers in the past will be addressed, benefiting sectors such as pork, citrus, apples and stone fruit". Agriculture For the USA: "All US agricultural exports to Australia, totaling more than $400 million, will receive immediate duty-free access." But for Australia: "Two thirds of all agricultural tariffs . will be eliminated immediately." Just last week a spokesperson for Trade Minister Mark Vaile confirmed that "Australia would not sign a deal that excluded sugar". However, there have been no gains for sugar producers, as was always expected. There have been only fractional gains for dairy and beef producers - and even those will be phased in over 18 years. Mr Howard has since offered his condolences: "They are the victims of a corrupted world trading system and I feel sorry for them". US Trade Representative Mr Zoellick, on the other hand, proudly outlined to US farmers - under the heading "Sensitive to Agricultural Concerns" - the extensive tariffs and quotas that would remain in place protecting US farm interests. The National Farmers' Federation (NFF), the peak body of corporate agriculture and died-in-the-wool Coalition supporters, tried to put on a brave face. The NFF press release begins with ". market access gains had been achieved for Australia's dairy, beef, horticulture, sheep meat and wool sectors", among a number of other "positive outcomes". However, the veneer is thin, and by the end of the release NFF President Peter Corish is saying, "Australian sugar producers will be justifiably frustrated by this outcome. "It's extremely hypocritical. The US is a huge agricultural exporter and demands access to overseas markets, but continues to hide behind a veil of protection in its own market." Where to now? The two governments hope to have the agreement in operation by July 04, which gives little time to mount a campaign and defeat it. Even more so because the full details of the actual agreement are not going to be released for some time. In Australia, the process involves approval by Cabinet of the final terms of the FTA and the signing of the Agreement. Only after the Agreement is signed, will it be published! It will be tabled in both Houses of Parliament for 20 sitting days while a Joint Standing Committee reviews it. Parliament (and likewise US Congress) will then be expected to pass implementing legislation to ensure Australia's laws are in conformity with it. At this point it comes into force. The ALP and Democrats have expressed major reservations with the FTA in its present form. The Communist Party of Australia and the Greens reject it outright. The FTA in its present form is a crass betrayal of Australia's economic interests and of Australia's sovereignty. As the truth becomes known many sectors of Australian society will be outraged and will want to fight. It is a fight that must be fought and won - now! Out with the Howard Government! -- Visit the proposed Leftlink web site at http://www.leftlink.net/ -- Leftlink - Australia's Broad Left Mailing List mailto:[EMAIL PROTECTED] Archived at http://www.cat.org.au/lists/leftlink/ Sponsored by Melbourne's New International Bookshop Sub: mailto:[EMAIL PROTECTED] Unsub: mailto:[EMAIL PROTECTED]
