Why are the secret negotiations for the Australia-US Free Trade Agreement (AUSFTA) being pushed through in a frenzy, aimed at signing this agreement this month? Why will Parliament not get to debate or vote on the agreement? Does the government want to avoid fighting an election with the FTA as a major issue?
The US already has a huge trade surplus with Australia - almost US$7billion in 2002. Not satisfied, US trade negotiators want to dismantle Australia's producer-controlled Wheat Board, force the removal of health standards that are said to restrict US agricultural exports, open our markets to Genetically Modified Organisms, weaken the Pharmaceutical Benefits Scheme, eliminate investment restrictions in financial services, telecommunications, and postal service sectors, and gain access to our government procurement markets.
Our market is one of the world's freest, while America’s is protected by massive tariffs, quotas, and rising subsidies. America’s recent Farm Bill will increase - not reduce - agricultural subsidies for US farmers over the next 10 years. So no joy for Australian farmers there.
Australia’s quarantine policies ensure the protection of human, animal and plant health from exotic pests and disease that may be introduced by agricultural products. The USA has specifically stated that it considers Australia’s stringent quarantine barriers to be a ‘technical trade barrier’ and wants them relaxed. Any changes would endanger the Australian environment, native wildlife, the farming sector and possibly our tourism industry.
"Investor-State" provisions are on the table in the AUSFTA negotiations. This will allow foreign investors to sue our government over state, local or federal legislation which may limit their profits. This puts foreign investors on a level above local investors who have no such rights. Foreign corporations can appeal for compensation to international tribunals that operate outside national laws. These tribunals meet in secret, are under no obligation to allow public scrutiny, and there is no appealing their decision. For example, under the North American Free Trade Agreement, the US corporation Sun Belt Inc. has brought an action against the Canadian government seeking US$10.5 billion for loss of expected profits following British Columbia’s decision to ban the bulk export of water. Even though Sun Belt has never actually exported water from Canada, it claims that the ban has reduced its future profits
This will effectively freeze government regulation of all services and resources unless they are specifically excluded from AUSFTA. Unless water is excluded from the agreement, the AUSFTA would threaten Australia's ability to manage its scarce water resources, and jeopardise the success of the National Water Initiative which will be finalised after the signing of AUSFTA.
The AUSFTA will have profound and far-reaching effects on all our lives, the Australian economy and environment and our ability to control our own resources. It is irresponsible of our government to rush this deal through without due consultation and examination of all the consequences.