U.S. and Australia Sign Free Trade Agreement (Congressional Approval, Etc. Still Required)

Next Step in Implementing U.S.-Australia FTA is Congressional Approval of Implementing Legislation

According to U.S. government sources, since the U.S. and Australia have signed the U.S.-Australia FTA, the next step is for the President to formally submit to Congress the U.S.-Australia FTA, the implementing legislation for the FTA, and a statement of administrative action. According to sources, there is no deadline for the Administration to submit these documents to Congress.

Sources have also stated that Congress will have 90 legislative days to consider the implementing legislation for this FTA, which cannot be amended and would be subject to a straight "up or down" vote by the House and Senate.

If the FTA implementing legislation is passed by the House and Senate, it could then be signed into law by the President, who would subsequently issue a proclamation implementing the U.S.-Australia FTA.

Administration's "Goal" of Implementing FTA on January 1, 2005 Could be Impacted by Congress' Schedule, Fall Elections, Etc.

Although Administration sources state that their "goal" is to complete the above steps in 2004 so that the U.S.-Australia FTA could take effect as early as January 1, 2005, other U.S. government sources note that Congress' schedule, the fall 2004 elections, and other factors could impact the achievement of this goal.

Final Text U.S.-Australia FTA Available on USTR Web Site

The final text of the U.S.-Australia FTA is now available on the USTR's Web site at http://www.ustr.gov/new/fta/Australia/final/final.pdf.

(See ITT's Online Archives or 03/05/04 news, 04030515, for BP summary on the USTR's release of the draft text of the U.S.-Australia FTA.)

Highlights of U.S.-Australia FTA

According to a USTR fact sheet, highlights of the U.S.-Australia FTA include (partial list):

More than 99% of U.S. manufactured exports to Australia to be duty-free. The USTR states that more than 99% of U.S. manufactured exports to Australia will become duty-free immediately upon entry into force of the U.S.-Australia FTA. The USTR states that this represents the most significant immediate reduction of industrial tariffs ever achieved in a U.S. FTA, with U.S. manufacturers estimating that the elimination of tariffs could result in $2 billion per year in increased U.S. exports of manufactured goods.

All U.S. agricultural exports to Australia to be duty-free. The USTR states that all U.S. agricultural exports to Australia, totaling more than $400 million, will receive immediate duty-free access.

Sensitive agricultural products (beef, dairy, sugar). The USTR notes that the FTA is sensitive to concerns that have been expressed by Congress and U.S. beef and dairy farmers, and the FTA uses tariff-rate quotas (TRQs) to respond to these concerns while increasing trade.

Australia will accord substantial market access in its services sector. Australia will accord substantial market access across its entire services regime, offering acces in sectors such as telecommunications, express delivery, computer and related services, etc.

Protections for intellectual property rights. The USTR states that among other things, the U.S.-Australia FTA calls for each government to adopt state-of-the-art protection for digital products such as software, music, text, and videos, and encourages adoption of measures to promote trade through electronic commerce.

Australia to make improvements to its Pharmaceuticals Benefits Scheme. With regard to pharmaceuticals, the USTR states that Australia will make a number of improvements in its Pharmaceuticals Benefits Scheme (PBS) procedures that will enhance transparency and accountability in the operation of that program, including establishment of an independent process to review determinations of product listings.

Information on the U.S.-Australia FTA, including press releases, fact sheets, etc., is available at http://www.ustr.gov/new/fta/australia.htm.