Us Australia Free Trade Agreement

Annual trade in Australian goods and services in two directions is about $28 billion, and the United States has a $9 billion trade surplus with Australia. Australia is the 9th largest U.S. market for goods exports- The European Union is considered the only export destination. The objective of the “Safeguard measures” section of the agreement is to define an agreed structure for the protection of serious negative effects on each country`s domestic industries during the transition period following the abolition of tariffs. Countries also agree to consider excluding the application of WTO safeguards on a global scale with respect to imports from the other country where such imports are not the source of the harm to domestic industry. Article 19.2 states that “the parties recognize that it is inappropriate to promote trade or investment by weakening or reducing the protection of their respective environmental laws.” Following the signing of the free trade agreement, there was initial talk that the U.S. agricultural sector would put pressure on the agreement, fearing that it would interfere with the government`s agricultural subsidy program. However, the agreement with deadlines for importing Australian agricultural products, such as beef and sugar cane, has allayed concerns in the US agricultural market (while many Australian producers were very frustrated). The Rules of Origin section describes the rules for determining the origin of goods traded to determine eligibility, as well as the method of determining the value of goods traded. On November 13, 2002, the U.S.

Trade Representative informed the U.S. Congress of his intention to negotiate a free trade agreement with Australia. Negotiations began in March 2003 and were reached by agreement on 8 February 2004. On February 13, 2004, the President announced to Congress his intention to join the U.S.-Australia Free Trade Agreement. The draft agreements were presented on 3 March 2004. The U.S.-Australia Free Trade Agreement was signed on May 18, 2004. ยท supports the development of an online trademark registration and maintenance system and a database to search. Chapter 4 deals with the trade in textiles and clothing between the two countries. Most of this section includes rules of origin for textile products and protection of the internal markets of both countries. The agreement provides for an emergency mechanism if the sudden increase in imports due to the reduction in tariffs has negative effects on the domestic industry of the importing country.