Finish trade deal, says U.S. lobby
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Trade negotiators have missed a deadline set by Australian PM John Howard (above) and U.S. President Bush.
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WASHINGTON (Reuters) -- U.S. manufacturers and other business groups have urged the Bush administration to finish free-trade talks with Australia quickly despite strong opposition from American sugar and dairy farmers.
Myron Brilliant, vice president for Asia at the U.S. Chamber of Commerce, said Wednesday it would be a mistake for the White House to put off an agreement until after the November presidential and congressional elections, when it might be easier to resolve controversial farm trade issues.
"We're so close now, why wait?" Brilliant said. "If the United States and Australia, which share a common platform on trade liberalization, can't reach an agreement, I think it sends the wrong message globally."
Bill Lane, Washington lobbyist for Caterpillar, said the agreement would help U.S. manufacturers by immediately eliminating tariffs on most Australian goods.
"We want this agreement and we're willing to fight for it," Lane said, predicting Congress would approve the pact.
U.S. and Australian trade negotiators have been working behind closed doors on the free-trade agreement since early last week.
The two countries missed a deadline set by President Bush and Australian Prime Minister John Howard for concluding the pact by the end of 2003 and are rushing now to finish their work in the next several days.
U.S. sugar and dairy producers have warned that increased imports from Australia would have a devastating effect on their industries, which currently benefit from substantial import protection.
Last week, U.S. Trade Representative Robert Zoellick acknowledged the political clout of sugar farmers when he told a North Dakota radio station the Bush administration opposed any increased access for Australian sugar.
That has raised concern Australia, a major agricultural exporter, could walk away from the talks if United States does not provide significant new market access in politically sensitive farm sectors such as sugar, dairy and beef.
Rep. Cal Dooley, a California Democrat, singled out U.S. sugar producers in particular as standing in the way of a deal and urged the Bush administration to "face up to them".
"We cannot allow one commodity that is unwilling to compete internationally to deny hundreds of manufacturers ... from an opportunity to gain new market share," he said.
Dooley also accused dairy farmers of making "outlandish statements" exaggerating the negative impacts of the pact.
Jack Roney, economist for the American Sugar Alliance, said U.S. sugar producers were encouraged by Zoellick's comments last week, but were closely watching the negotiations for any last minute concessions he might make to strike a deal.
He denied farm issues were the only ones blocking a pact.
Negotiators also have to resolve tough differences in the areas of pharmaceuticals, investment, and entertainment, he said.
Copyright 2004
Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.