United States – Australia Free Trade Agreement

Doorstop Interview

Transcript - Parliament House, Canberra - 14 November 2002

E & OE – PROOF ONLY

Emerson: Labor, of course, notes the decision today of the US Administration to notify the Congress that it wishes to begin negotiating on a trade deal between the United States and Australia. We will await the final details of any trade agreement between Australia and the United States before making a judgement on its merits. We do want to say, though, that the deal must be in Australia's national interest. It must be a good deal for farmers and it must not do anything other than safeguard the Foreign Investment Review Board, it must safeguard our agricultural interests. It also must safeguard Australian local content for television, radio and film. And, finally, it must safeguard the Pharmaceutical Benefits Scheme. So we'll await the final details of any agreement before making such a judgement on its merits. We also want to see that these negotiations are supportive of, and not any detraction from, the Doha Round of multilateral trade negotiations, because it has always been Labor's position to put Doha first. We want to see the Doha Round of multilateral trade negotiations proceed and a lot of effort going into that round. We're reassured by the comments of US Trade Representative, Bob Zoellick, that he too is committed to the Doha Round and that the Administration would not want to do anything that detracts from the Doha Round of multilateral trade negotiations. That is reassuring for us.

Journalist: It sounds like you're concerned that Australia might have to give too much away in order to reach a deal.

Emerson: We certainly want to ensure that Australia's national interest is protected. That means a good deal for Australian farmers and safeguarding the Foreign Investment Review Board, the Pharmaceutical Benefits Scheme, and local content for Australian television, film and radio.

Journalist: So those are the areas where you believe Washington will be pursuing more liberal trade arrangements or, indeed, trying to scrap things like FIRB?

Emerson: We have had indications from relevant parts of the community to that effect and there are indications from the Administration that those are among the areas that it will be looking to negotiate changes in Australia's system.

Journalist: Do you see any link between the timing of the US announcement and US policies in Iraq?

Emerson: No, I don't. The timing of the US announcement is related to the fact that Bob Zoellick is here in Australia for the Ministerial Meeting, which is designed to give impetus to the Doha Round. That's why the announcement is being made now. Also, we know that the mid-term Congressional elections have recently been completed and I understand the reluctance of the Administration before those elections to proceed with giving that authorisation. It did give authorisation to a number of other countries, but was reluctant to do that in relation to Australia because of sensitive agricultural products. We do want to see any trade deal between the United States and Australia constitute a good deal for Australian farmers.

Journalist: Are you concerned that maybe Australia might backslide on its quarantine protection measures?

Emerson: Well, we have said that it must be a good deal for Australian farmers and I especially am concerned that the biggest value of any trade deal between the United States and Australia from our perspective does lie in America liberalising its access to Australian agricultural products and our access to those markets. That's very important. In the work that's been commissioned by the Government, and you might have seen references to $4 billion, we're not sure about the exact preciseness of those figures because they're based on a series of assumptions. One of the assumptions is the United States will open up its markets to Australian agricultural exports. That's why it's so important, on the Government's own figuring, that it be a good deal for Australian farmers.

Journalist: Does it concern you how long it might take to get this deal up and running? At least eighteen months?

Emerson: No, the timeframe itself doesn't concern me. The Uruguay Round of multilateral trade negotiations was scheduled for five years and ran for seven. It wouldn't be, therefore, surprising that the Doha Round of multilateral trade negotiations goes longer than anticipated. I hope it doesn't, but that's possible. In relation to the proposed trade deal between Australia and the United States, if it could be completed within that time frame, it's a bit ambitious, but I don't think it's too short. It might be a bit ambitious, but let's wait and see.

Journalist: Do you still believe that an FTA with the US act as a disincentive to trade with East Asian economies?

Emerson: My real concern today is that we safeguard the particular areas that are of concern, and legitimately of concern, to Australians, such as local content for our television, radio and film, such as the Pharmaceutical Benefits Scheme, and such as the Foreign Investment Review Board.

Journalist: A couple of weeks ago you were very strong on the fact that an FTA may hurt our trade with East Asia.

Emerson: The reason that I've been talking in those sorts of terms is that we do believe in the Doha Round of multilateral trade negotiations because that would mean reducing trade barriers globally. That's what I think we all want to see. I believe that's what Bob Zoellick wants to achieve. It's what the Trade Act of 2002 that was passed by the Congress, known as the ‘fast track' or ‘trade promotion authority', gives real impetus to. It says when the Administration moves to begin the negotiations on the Doha Round, it really has a green light from the Congress and the Administration reports back at the end of the process. So even the US Congress' view of the world is ‘we have to put a big effort into Doha', because that means that everyone can benefit from reductions in trade barriers.

Journalist: You've identified areas where Labor doesn't want to concede concessions, are there any areas where legitimate concessions might be granted in return for access to agriculture?

Emerson: What let's see what requests the Administration puts to Australia. That's why I say, and I know no one's actually suggesting it, but you wouldn't sign an agreement without reading it. Anyone here wouldn't sign an agreement without reading it and we'd need to see what is in the Agreement before we made a decision on its merits.

Journalist: Mr Emerson, do you think there's any chance at all of the United States dealing seriously in agriculture with us in advance of Doha, when the people they're really interested in dealing with agriculture on are the EU?

Emerson: The leverage that the United States can exercise through the Doha Round is substantial. It could exercise leverage, and I believe it will, on the European Union, Japan and other countries to liberalise their trade barriers. That's why we say the primary emphasis should be on Doha, in getting those trade barriers down. That would be good for Australia. It wouldn't only mean increased access by Australia to United States agricultural markets but, as you point out, to Europe, Japan and other countries. That's why we do have this strong commitment to the Doha Round of multilateral trade negotiations.

Journalist: Is Labor concerned that a free trade deal with the US might ‘Americanise' Australian society even more than it is now?

Emerson: Our concern is to ensure that there is a reasonable level of Australian content in television, radio and film. That's our concern because Australia has a strong culture and we do like to see Australian movies and programs on television.

Journalist: So the wealth of our farming community isn't the only concern, surely?

Emerson: No, that's what I'm saying. These other issues are important and we'll wait to see the details of what requests are formally made of Australia and how the negotiations progress.

Journalist: Where do you expect most of the pressure to come from Washington? It'll come from Hollywood won't it, and from the areas of intellectual property?

Emerson: I would think so. I would think that there'd be a fair bit of pressure there and I think there'll be a lot of pressure, as acknowledged by the Administration, by the US farm lobby not to agree to liberalise markets for Australia outside of the Doha Round. The farm lobby has essentially said that they're interested in getting that sort of leverage through the Doha Round on the European Union. So I think there'll be forces at play for the opening up of Australia's market, obviously, including in the areas that I've already mentioned, the Foreign Investment Review Board and local content. Also, there will be pressure to reduce or eliminate our remaining tariffs on motor vehicles and textiles, clothing and footwear. On the other hand, the US farm lobby will, in the main, be arguing that the Administration should go through Doha and not do any major concessions in relation to Australia outside that Doha process. They've already done that in letters to the Administration before the Congressional elections.

Journalist: Did you see Zoellick when he was here?

Emerson: I haven't had a talk with him yet, but I plan to on the weekend.

Journalist: One of the things they have specifically raised is parallel importing, which Labor opposed in the first place. Is that something you think the Government should sacrifice?

Emerson: Well, the government itself is bringing forward a bill to liberalise parallel import arrangements, so we'll just have to see what happens in relation that.

Journalist: Dr Emerson, are you satisfied that the concerns you expressed in that e‑mail last week have been addressed?

Emerson: I don't really think I have too much more to add if you're talking about the discussion paper. That's now well and truly in the public domain and I think everyone's had a good discussion about the discussion paper.

Journalist: But do you believe that the points you have raised are being addressed by the Leader?

Emerson: Well, I've said time and time again, and it's well known, I think, by everyone in Parliament House, that I'm a very strong supporter of Simon Crean and will work to the full extent that I possibly can, use up all the energy that I've got available, to ensure that Simon Crean is the next Prime Minister of Australia and I'm confident that he will be.

Journalist: But your grievances are still on the table.

Emerson: The document's in the public domain and I'm very happy with the discussions I've had with Simon Crean and other colleagues.