U.S. – Australia Relations
Trade and economic ties with the United States growing strongly
Sydney — 2 July 2007
Media release
2 July, 2007
Australia’s trade and economic relationship with the United States continued to strengthen in 2006 with overall two-way trade rising by 12 percent to $47.5 billion. Two-way investment exceeds $600 billion, the Australian Government Minister for Trade, Warren Truss, said today.
Mr Truss was speaking in Sydney after hosting the second ministerial-level Joint Committee meeting with his US counterpart, Ambassador Susan Schwab, the United States Trade Representative.
The Joint Committee meets annually to review the Australia-United States Free Trade Agreement and explore ways to further boost the bilateral trade and investment relationship.
“The nine percent growth in Australian exports of goods and services to the US in 2006 is good news considering our exports have suffered from the effects of the strong Australian dollar,” Mr Truss said.
More than 80 percent of tariffs on Australian goods entering the US market were bound at zero from day one of the AUSFTA. Remaining tariffs will continue to fall as duty free quotas increase, including on key agricultural exports such as beef, dairy and lamb.
“At the same time, the 13.6 percent growth in US exports to Australia in 2006 reflects our strong demand for the capital goods and equipment needed to help sustain our robust economic growth.
“Ambassador Schwab and I welcomed the commercial opportunities now being created by the FTA. These include the growing number of Australian companies successfully doing business in the enormous US Government procurement market.”
The AUSFTA opened the US federal procurement market to Australian companies, and at present 31 US states have signed on (including the 10 largest procurement states). Austrade has assisted Australian companies win more than $110 million worth of procurement business in these markets.
“During the meeting, I underlined the importance of pressing on with priority work in the FTA. This work includes improving access for our agricultural exports and for Australian professionals who wish to enter the US market and further integration of our financial services markets. Service exports now make up a third of our exports to the United States.”
Mr Truss said the meeting with Ambassador Schwab also provided an opportunity for the two ministers to review the state of world trade talks since the breakdown of the G4 Potsdam meeting on 22 June.
“I raised Australia’s very real concerns about the direction of the debate in US Congress on farm subsidies in the 2007 Farm Bill. Substantial cuts in US farm subsidies will be important in the context of an overall outcome to the Doha Round.
“We agreed that the APEC meeting of trade ministers in Cairns later this week will be a crucial opportunity to send a strong signal of the Asia-Pacific region’s determination to achieve an ambitious package on agriculture, industrials and services in the Doha Round,” Mr Truss said.
Original document from www.trademinister.gov.au.
Last update: Monday, 19 November 2007 GMT+1000
