U.S. backs free trade plan with Australia

Australian Foreign Minister Alexander Downer with U.S. Secretary of State Colin Powell

In this story: "Substantial discussions" Other trade deals sought RELATED SITES

WASHINGTON -- U.S. Secretary of State Colin Powell has welcomed in principle an Australian proposal for a free trade agreement between the two countries.

But Powell said it would take time to put an agreement together.

Australian Foreign Minister Alexander Downer brought up the proposal at a meeting with Powell on Thursday.

"I think it's a good idea and, of course, it takes quite a while to put such an agreement together and then to present it to our respective legislatures," said Powell, speaking at a joint new conference with Downer.

"We're looking forward to the ideas associated with that agreement and, when the Prime Minister (John Howard) visits later this year, I'm sure it'll be one of the top items on the agenda. We are very open to that," he said.

"Substantial discussions"

Downer said he and Powell had "quite substantial discussions" about the free trade proposal and looked forward to progress in the discussions later.

He also said Australia welcomed the Bush administration's commitment to free trade and hoped the World Trade Organization could start a new round of trade liberalization negotiations during the course of this year.

Howard raised the idea of a free trade agreement in a phone call with President George W. Bush in late February. Australian Embassy officials have begun sounding out the idea with members of the U.S. Congress.

Australia and the United States are major agricultural exporters and share many common trade goals. But free trade talks could be complicated by Australia's desire for more access to the protected U.S. sugar market.

Other trade deals sought

The United States also currently restricts imports of lamb meat from Australia and New Zealand.

On March 1 Downer told the Australian National Press Club that the Government supported the principles of free trade at multilateral and bilateral levels.

"Our experience shows that open markets and a strong, transparent and rules-based multilateral trading system delivers strong economic growth, more jobs and better living standards for all," he said, "but we are not blind to gains that might be made outside the multilateral system."

Currently Australia is pursuing free trade agreements with Singapore, the United States, and Chile.

Reuters contributed to this report.

US State Department
World Trade Organization
Australian Foreign Affairs and Trade

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