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Member LoginAustralia/US Free Trade Agreement
18 May 2004
On 18 May, 2004, Australia's Trade Minister Mark Vaile and United States Trade Representative Robert Zoellick signed the Australia United States Free Trade Agreement in Washington.
Negotiations on the AUSFTA were finalised in February after 11 months of talks between the two countries. Signature by Mr Vaile and Mr Zoellick will allow the US Congress to consider the agreement by July.
The Australian parliament has to pass five or six pieces of enabling legislation, although the agreement itself will not be voted upon directly
Mr Vaile said he hoped to have those pieces of legislation passed during the July and August sittings of parliament.
Both countries hope to have the deal operating from January 1 next year.
Background
The purpose of this letter is to provide information on the potential impact of the looming free trade agreement between Australia and the US on the Australian film, television and other moving image industries. There has been great concern in the industry about this agreement. In February this year, ASDA, AWG, MEAA AND SPAA issued a joint
press release saying: "The free trade agreement with the US threatens significant losses to Australian culture." (http://www.asdafilm.org.au/)
At the recent ACS Federal Executive Meeting (May 16 Gold Coast) it was agreed that the ACS should also put their support behind denouncing the FTA, citing the affects it will have on our already struggling industry
The Australian Senate Select Committee on the Free Trade Agreement received written submissions at the end of April, 2004 and are currently considering presentations from the industry. ASDA, AWG and other industry members have urged their members to write individual letters to the Senate and also, to politicians (they say that an individually constructed, non-template letter is worth a lot more than other kinds of letters and hard copy is recommended over email). For members wanting an overview of the most up to date industry arguments and details of what actions can be taken see 'Australia - US Free Trade Agreement- Updated on Apr 21, 2004, 11:04am' on the AWG web site at: http://www.awg.com.au/artman/uploads/fta.pdf
ASDA and the AWG have indicated that: "this is the first time that Australia has so comprehensively given away its sovereign ability to regulate in the cultural sphere." The industry has argued that culture should not be negotiated as part of a trade agreement. If the free trade agreement proceeds as currently constructed (without exemptions to culture), there are a number of concerns to the future and viability of the Australian industry; these include:
- a trading away for perpetuity which cannot be renegotiated unless the Americans allow a renegotiation- something that is unlikely given the agreement gives them unprecedented market access;
- the agreement institutionalizes lower Australian content and gives the US a consultation right in regard to future content regulations (in addition, if Australian content levels are reduced, they can never be reinstated and this is likely to lead to progressive liberalization as well as a reduction in Australian stories);
- the potential for Australians to benefit from future markets and technologies will be restricted by the agreement- for example only 2 channels our of ten per network can ever be regulated on digital television in the future and, we can only regulate new technologies that have yet to be invented if we establish 'unacceptably' low levels of Australian content- and consult with the US;
- investment by government (e.g. the AFC and the FFC) might be compromised given that these organizations require demonstrated 'significant Australian content test'- and this may no longer be allowed.
Final Text of the Agreement
http://www.dfat.gov.au/trade/negotiations/us_fta/final-text/index.html
Australia - US Free Trade Agreement home page http://www.dfat.gov.au/trade/negotiations/us.html
SENATE SELECT COMMITTEE ON THE FREE TRADE AGREEMENTBETWEEN AUSTRALIA ANDTHE UNITED STATES OF AMERICA
Members: Senator Cook (Chair), Senator Brandis (Deputy Chair), Senators Boswell, Conroy, Ferris, Harris, O’Brien and Ridgeway
Senators in attendance: Senators Brandis, Conroy, Cook, Ferris and O’Brien
Terms of reference for the inquiry:
To inquire into and report on:
1. The Free Trade Agreement between Australia and the United States of America to ensure it is in Australia’s national interest; and
2. The impacts of the agreement on Australia’s economic, trade, investment and social environment policies, including, but not limited to, agriculture, health, education and the media.
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