USTR Announces U.S.-Australia FTA to Enter into Force On January 1, 2005
The Office of the U.S. Trade Representative (USTR) has issued a press release announcing that on November 17, 2004, the U.S. and Australia exchanged diplomatic notes certifying that each country has completed its internal requirements to allow the U.S.-Australia Free Trade Agreement (FTA) to enter into force on January 1, 2005.
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The USTR press release states that the U.S. had raised concerns with Australia that its FTA implementing legislation, which its Parliament passed in August 2004, did not fully implement a number of the FTA commitments it made on intellectual property. However, the press release states that Australia has committed to take steps, including legislative and regulatory changes, to address these issues. (See ITT's Online Archives or 08/16/04 news, 04081699 2, for BP summary regarding this issue.)
Next Step is for President to Issue Proclamation
U.S. government sources have previously stated that after the U.S. and Australia exchange notes, President Bush can issue a proclamation implementing the U.S.-Australia FTA.
Highlights of U.S.-Australia FTA
According to a previously issued 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.
The USTR notes that for duties on textiles and apparel to be eliminated, the goods must meet the FTA's yarn-forward rule of origin.
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 access 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.
(See ITT's Online Archives or 08/05/04 news, 04080505, for BP summary on the August 3, 2004 signing of the "U.S.-Australia Free Trade Agreement Implementation Act" by President Bush.)
USTR press release (No. 2004-82, dated 11/17/04) available at
Additional details on the U.S.-Australia FTA, including the final text of the U.S.-Australia FTA, available at http://www.ustr.gov/Trade_Agreements/Bilateral/Australia_FTA/Section_Index.html.