Recommendations of Labor Senators
On March 7 2001, in an
appearance before the United States House of Representatives Ways and Means
Committee, US Trade Representative Robert Zoellick told Congress that 'if we
approach this [Free Trade Agreement with Australia], I want to make sure that
it's done in a fashion that has bipartisan support in Australia.'
It is unfortunate that the
Government did not listen to this advice. Instead the Government acted
unilaterally and pursued a trade deal for political purposes, with an
unrealistic negotiating time frame imposed by the US
electoral cycle.
This was a deal which Deputy
Prime Minister John Anderson
said would be un-Australian if it did not include sugar[652]. The Government repeatedly stated
that the Pharmaceutical Benefits Scheme (PBS) was 'off the table'. However the
Parliament was presented with a deal that did not include sugar and made some
changes to the administration of the PBS, yet it was expected to provide
immediate support.
In pressing for the passage through the Senate of
legislation to implement the Australia-US Free Trade Agreement (AUSFTA) the
Government is asking the Parliament, and thereby the people of Australia, to
take an enormous amount on trust. There are some outstanding issues surrounding
the Agreement that are simply not addressed by the implementing legislation,
and set out hereunder is a number of recommendations that seek to address these
many and varied shortcomings and unknowns.
It is recommended that the Senate pass the appropriate legislation
that will give effect to the Australia-US Free Trade Agreement.
In choosing this path Labor Senators contend that there
remain areas of concern which could largely have been avoided if proper process
had been followed both in the initiation of the FTA proposal and in its
subsequent negotiation and signing. This is elaborated briefly below, and in
detail in the body of the report.
In turning to the merits of the Agreement, the Labor
Senators note that Australia
will enjoy enhanced access to US markets in a number of areas. There are many
areas where both the Australian and US markets are already very open.
The gains in agriculture will assist Australia's
primary industries sector, although it is universally acknowledged that there
is disappointment over extended phasing out periods of tariffs, continued
quotas, and let-out clauses which allow for the reimposition of tariffs in the
event of strong competition (safeguards) with respect to some important
Australian export commodities.
Investment, while already a fairly open market, is further
encouraged by this Agreement, although it seems very unlikely that the gains
will be anywhere near those that have been proclaimed on the basis of the
Government's commissioned study by the Centre for International Economics
(CIE). Both the US
International Trade Commission and the Government's own impact analysis concur
that the Agreement is not likely to produce a new wave of investment in Australia
by American interests. It can only be hoped that the much-vaunted 'dynamic
gains' actually emerge from the new trading environment - an aspect of
econometric guesswork that does not have a track record.
Likewise, the burgeoning services area may enjoy greater
opportunities for trade with America,
notwithstanding some uncertainty about the willingness of many of the American
states to sign on to enhanced access in the area of government procurement.
Assistance needs to be put in place for Australian firms to take up the
government procurement opportunities provided by the Agreement.
Unfortunately, the FTA has not delivered on the matter of
mutual recognition of qualifications and the movement of business people
between the two countries. This remains a key impediment to cross-border trade
in services.
There have been several economic analyses of the costs and
benefits of the AUSFTA, and these have produced wildly divergent assessments.
Labor Senators are persuaded that the assessment of the Select Committee's
consultant Dr Philippa
Dee is the most judicious assessment. It concludes
that the Agreement is likely to be beneficial overall, but only marginally so. Dr
Dee's report, and the exchange of views that
transpired in relation to it, are included in this report.
Notwithstanding the benefits outlined above, there remain a
number of areas in the AUSFTA as it stands that require action to ameliorate
many of the downsides or threats that flow from the Agreement. These risks are
manifested most worryingly in the areas of health care, intellectual property,
cultural protection and the impact of the Agreement on Australia's
manufacturing sector. They are explored at length in the body of this report.
Again, the concerns that have arisen in relation to such
crucial and complex areas as intellectual property would probably not have emerged
if the Government, in its undue haste to secure an FTA with America, had not over-ridden the comprehensive review
processes and recommendations that had been undertaken domestically to ensure a
robust and fair intellectual property regime in Australia.
The question of due process remains one of the outstanding
failures of the whole AUSFTA business. Instead of ensuring that the Agreement
was initiated and negotiated on the basis of a thorough and independent
assessment of what was in Australia's national interest -through the
Productivity Commission, for example - the Prime Minister launched an approach
to the US government, and then committed Australian officials to an
unprecedentedly short time frame in which to negotiate the most complex trade
agreement Australia has ever pursued. It is no wonder that various assurances
and commitments given by Government ministers at the outset were eroded as the US
exerted its economic, political and negotiating muscle.
In eschewing due process, the Prime Minister failed to
provide the leadership necessary to bring the Australian community along with
him. The Select Committee has witnessed much public anger, anxiety and
disappointment as it sought to provide at least some opportunity for
Australians to have their say about an Agreement with potentially enormous
consequences. Almost none of the detail about many aspects of the
implementation of the Agreement has been made available. Legitimate concerns
were either ignored or summarily dismissed as the Government simply proclaimed
more fiercely the alleged benefits and waved about highly-contested econometric
'evidence' to support its claims.
There must be far greater involvement of the Parliament at
every stage of the Agreement-making process, and sound proposals are set out in
the Committee's report. The States and Territories - who will be significantly
impacted upon by the Agreement - had an extremely limited role during
negotiations, and none had the necessary information about what was in the deal
to enable cabinet ministers to adequately assess the implications of the AUSFTA
for their jurisdictions. The Treaties Council of Australian ministers did not
even meet to consider the matter. This is a major procedural flaw.
Another major shortcoming is that the Government has not
explained - if indeed it has any idea - how the AUSFTA fits into a broader
strategy for promoting Australia's
national interest through trade. The proliferation of preferential trade
agreements involving several of Australia's trading partners throughout the
Asia-Pacific risks the emergence of a 'spaghetti bowl' of deals, each with
their own special arrangements, which can easily turn into a red-tape nightmare
for Australian firms trying to do business in a variety of Asia Pacific
Economic Cooperation (APEC) markets.
Moreover, the proliferation of these preferential agreements
- although ostensibly promoted by the Government as encouraging 'competitive
liberalisation' which sets benchmarks and aspirations for future World Trade
Organisation (WTO) discussions - may
well have precisely the opposite effect, sucking the oxygen out of multilateral
trade negotiations when the multilateral process is universally acknowledged as
the best way to liberalise global trade.
In short the Government has attempted to harass the
Parliament and the Australian people into accepting an Agreement that has
enormous implications for our national interests. The Americans quickly adopted
the Agreement. This is no surprise - it clearly delivers Australian markets to
high-tech, highly aggressive American firms seeking a big slice of the
Australian economic action. Australians are clearly not so sure. It seems there
will be an overall economic benefit, but Australia's
national interest must always be considered in more than economic terms.
As long as many of the worst fears expressed by people
coming before the Select Committee are not realised, the AUSFTA will deliver
meaningful benefits. The recommendations made by the Labor Senators must be
implemented in order to provide a robust grounding for the acceptance of the
Agreement. A 'trust me' approach is inadequate when Australia's
national interest is at stake. Only the actions recommended here can deliver to
the Australian people the assurance that they both need and deserve.
Recommendation 1
Labor Senators recommend that the Senate agree to the
Australia-US Free Trade Agreement Implementation Bill.
Chapter 2 - Process
The main body of this report raises a number of concerns
regarding the process by which the Australia-US FTA was entered into. The
following recommendations address these concerns.
Recommendation 2
That the Prime Minister order a review of the Treaties
Council with particular consideration to ensuring that when international
agreements are being negotiated there is:
- timely consultation
with States and Territories regarding National Interest Analyses,
- a more systematic
approach to consultation and consideration of when negotiations should be
elevated to Ministerial level.
In addition, because of the significant increase in
negotiation of bilateral agreements, the review should consider mechanisms to
ensure that current legislation/regulation across all jurisdictions, conforms
and continues to conform to treaties.
Recommendation 3
Labor Senators recommend that the Government introduce
legislation to implement the following process for parliamentary scrutiny and
endorsement of proposed trade treaties:
(a)
Prior to making offers for further market
liberalisation under any WTO Agreements, or commencing negotiations for bilateral
or regional free trade agreements, the Government shall table in both Houses of
Parliament a document setting out its priorities and objectives, including
comprehensive information about the economic, regional, social, cultural,
regulatory and environmental impacts which are expected to arise.
(b)
These documents shall be referred to the Joint Standing
Committee on Foreign Affairs, Defence and Trade for examination by public
hearing and report to the Parliament within 90 days.
(c)
Both Houses of Parliament will then consider the report
of the Joint Standing Committee on Foreign Affairs, Defence and Trade, and then
vote on whether to endorse the Government’s proposal or not.
(d)
Once Parliament has endorsed the proposal, negotiations
may begin.
(e)
Once the negotiation process is complete, the Government
shall then table in Parliament a package including the proposed treaty together
with any legislation required to implement the treaty domestically.
(f)
The treaty and the implementing legislation are then
voted on as a package, in an ‘up or down’ vote, i.e. on the basis that the
package is either accepted or rejected in its entirety.
(g)
The legislation should specify the form in which the Government
should present its proposal to Parliament and require the proposal to set out
clearly the objectives of the treaty and the proposed timeline for
negotiations.
Recommendation 4
Labor Senators recommend that Australian governments - prior
to embarking on the pursuit of any bilateral trading or investment agreement -
request the Productivity Commission to examine and report upon the proposed
agreement. Such a report should deliver a detailed econometric assessment of
its impacts on Australia’s
economic well-being, identifying any structural or institutional adjustments
that might be required by such an agreement, as well as an assessment of the
social, regulatory, cultural and environmental impacts of the agreement. A
clear summary of potential costs and benefits should be included in the advice.
Recommendation 5
Labor Senators recommend that all committees and working
groups prescribed by and established under the AUSFTA report annually on their
activities and outcomes. These reports should be tabled in the Parliament by
the Minister for Trade within 15 sitting days of their receipt. Each report
shall be accompanied by a statement from the Minister setting out the Government's
views on the report received and drawing attention to any notable outcomes.
Chapter 3 - Intellectual Property
A major concern of
Labor Senators is that Australia entered into the Intellectual Property (IP)
obligations of the Agreement in a manner that cut across established processes
for copyright law reform and which did not appear to be part of a strategic
vision of intellectual property.
Labor Senators were
also concerned that it was difficult to get a comprehensive explanation from
Government officials on many of the implications of the FTA on Australia's IP regime.
These concerns and
more specific issues raised in the main report are addressed by the following
recommendations:
Recommendation 6
Labor Senators recommend that the Senate establish a Select
Committee on Intellectual Property to comprehensively investigate and make
recommendations for an appropriate IP regime for Australia
in light of the significant changes required to Australian IP law by the
AUSFTA.
Recommendation 7
Labor Senators recommend that the Commonwealth Government
enshrine in the Copyright Act 1968
the rights of universities, libraries, educational and research institutions to
readily and cost effectively access material for academic, research and related
purposes. Labor Senators further recommend that the issue of such use of
copyright material should be referred to the Senate Select Committee on
Intellectual Property to investigate whether universities, libraries,
educational and research institutions should be exempt from paying royalties
after 50 years.
Recommendation 8
Labor Senators
recommend that the Senate Select Committee on Intellectual Property investigate
options for possible amendments to the Copyright
Act 1968 to expand the fair dealing exceptions to more closely reflect the
'fair use' doctrine that exists in the United States and to address the
anomalies of 'time shifting' and 'space shifting' in Australia.
Recommendation 9
Labor Senators
recommend that the Senate Select Committee on IP review the standard of
originality applied in Australia in relation to copyright material with a
view to raising the threshold to a standard such as that in the United States.
Recommendation 10
Labor Senators
recommend that the Senate Select Committee on Intellectual Property should
investigate the possibility of establishing in Australia a similar regime to that set out in the Public Domain Enhancement Bill 2004 (US),
with a view to addressing some of the impacts of the extension of the term of
copyright, in particular the problems relating to 'orphaned' works.
Recommendation 11
Labor Senators
recommend that the Senate Select Committee on Intellectual Property investigate
amendments to Copyright Act 1968 to provide
that a contract that purports to exclude or modify exceptions to copyright
infringement such as fair dealing is not enforceable.
Recommendation 12
Labor Senators
recommend that the Commonwealth Government use the two year implementation
period applying to effective technological protection measures to ensure
exceptions will be available to provide for fair dealing including temporary
copies, research and study and the legitimate private use and application of
all legally purchased or acquired audio, video, DVD and software items on
components, equipment and hardware, regardless of the place of acquisition.
Recommendation 13
Labor Senators
recommend that the Commonwealth Government use the two year implementation
period applying to effective technological protection measures to ensure
exceptions will be available to provide for the sale and distribution of
legitimate audio, video, DVD and software items, as well as related components,
equipment and hardware, regardless of the place of acquisition.
Recommendation 14
Labor Senators
recommend that the Commonwealth Government ensure that specific exceptions will
be available in the implementation of Australia's obligations in relation to Technological
Protection Measures (TPMs) to provide for the manufacture of interoperable
software products.
Recommendation 15
Labor Senators
recommend that the Commonwealth Government implement Recommendations 15 and 16
of the Digital Agenda Review report prepared by Phillips Fox to ensure that temporary reproductions and caching are explicitly
protected under Australian law.
Recommendation 16
Labor Senators
recommend that any notice and take-down scheme introduced by regulations should
balance the interests of copyright owners while appropriately protecting the personal
information of Internet users.
Regulations should ensure that carriage service providers are not
required to disclose personal information about their customers unless
compelled to do so by a court order.
Recommendation 17
Labor Senators
recommend that the reasonable costs to internet service providers of complying
with a notice and take-down procedure should be met by the issuer of the
notice.
Recommendation 18
Labor Senators
recognise that assessing whether a copyright infringement has occurred is a
complex issue, appropriately determined by a court. Any notice and take-down
scheme should not require a carriage service provider to assess whether a
copyright infringement has occurred, or the relative seriousness of any
infringement.
Chapter 4 - Pharmaceuticals
Recommendation 19
Labor Senators
support Joint Standing Committee on Treaties (JSCOT) recommendation 5 that any
independent review must ensure the fundamental integrity of the PBS listing
processes, should not consider information that was not before the
Pharmaceutical Benefits Advisory Committee (PBAC) and should base its
recommendation on the same criteria as PBAC. The submission of the
pharmaceutical company to the independent review should be made public.
Recommendation 20
Labor Senators recommend
that an evaluation of the review process should be carried out after 12 months
of operation and every 12 months thereafter. As well as assessing the
accountability, transparency and practicality of the review process, the
evaluation should consider the impact of the review process on the rate at
which new drugs are listed on the PBS or the prices at which they are listed.
The outcomes of the review should be tabled in Parliament.
Recommendation 21
Labor Senators
recommend that the ANAO or the Productivity
Commission should be asked to carry out an independent audit of the PBS listing
process after the additional transparency mechanisms are implemented. This
audit should examine the cost and efficiency of the new procedures and whether
they benefit the Government, consumers and pharmaceutical companies. It should
assess whether the transparency requirements affect the process of negotiating
pricing agreements with pharmaceutical companies.
Recommendation 22
The Government must
ensure that increased information on PBS listing procedures is balanced. Where
the Government provides more information on PBAC decision making processes, it
must ensure it can disclose the clinical and economic data that forms the basis
of those decisions. There must be clear guidelines on determining what material
is 'commercial-in-confidence' and this should be only material that is
genuinely pertinent and sensitive to the business operations of a
pharmaceutical company.
Recommendation 23
Labor Senators
recommend that the Government should table in Parliament a statement of the
terms of reference and schedule of meetings of the Medicines Working Group
established under the Agreement as soon as they are determined. The Government
should also be required to table an annual statement in Parliament on the
operations of the Medicines Working Group. This statement should include
details of each meeting, including: who attended, what topics were discussed,
the outcomes of those discussions including any commitments made by Australia and what consultation took place with
stakeholder groups before and after the meeting.
Recommendation 24
Labor Senators
recommend that the Government monitor the impact of the new legislation on the
rate at which generic drugs enter the market following expiration of a patent
and consult with the generic pharmaceutical industry on the impact of the
changes. An independent study of the entry of generic drugs to the market and
the strategies of patent holders before and after the legislative changes
should be undertaken and the results tabled in Parliament. If the new
procedures are found to create incentives for 'evergreening' patents, the Government
must amend the legislation so as to minimise the legal obstacles to putting
generic drugs on the market once the original patent has expired, while
ensuring the integrity of the patent system.
Recommendation 25
Labor Senators
recommend the creation of an offence for the lodgement of a spurious patent
claim that delays the entry of a generic drug onto the market. The validity of
a patent claim would be determined by a court.
Recommendation 26
Labor Senators
recommend that consistent with the terms of the Free Trade Agreement that the
Commonwealth Government ensure that:
- Whenever possible all blood products to
be used in the Australian medical system must be sourced from Australian
blood plasma.
- That Australian blood plasma continue to
be collected by voluntary donation.
- If plasma fractionation is to occur
outside of Australia that Australian plasma should be processed on
separate production lines.
- If plasma fractionation occurs outside
of Australia then overseas suppliers must satisfy at least the same level
of medical standards that apply to Australian suppliers.
Chapter 5 - Sanitary and Phytosanitary Measures
Recommendation 27
Labor Senators
recommend that both the bilateral committees operate under a terms of reference
that does not provide any avenue for influence on Australia's quarantine decision-making process.
Recommendation 28
Labor Senators
recommend that a process to engage key industry and community stakeholders to
participate in committee discussions be developed.
Recommendation 29
Labor Senators
support the Joint Standing Committee on Treaties recommendation 8 for greater
stakeholder consultation.
Recommendation 30
Labor Senators
recommend that Australia's Quarantine Import Risk Assessment process
be enshrined in regulation to insulate the process from external pressures.
Chapter 6 - Local Media Content
Recommendation 31
Labor Senators
acknowledge the concern expressed by many witnesses on the 'ratchet' nature of Australia's commitments for local content. Labor
Senators therefore recommend that Australia's local content requirements for free-to-air
television, subscription television and radio be enshrined in legislation, so
that reductions in these quotas require reference to the Parliament.
Recommendation 32
Labor Senators
recognise that the Free Trade Agreement means that Australia's local content quotas cannot be increased
above their current level except in limited circumstances. However they also
recognise that over the longer term future technologies are likely to result in
these quotas becoming an ineffective mechanism for encouraging the creation of
local content. Labor Senators therefore recommend that the Government consider
new or increased direct incentives to encourage local content production, but
that local content requirements apply in emerging technological platforms,
wherever possible.
Chapter 7 - Manufacturing
The Select Committee
found that there is significant debate about the impact of certain provisions
of the AUSFTA on Australian industry and that the Government has failed to
adequately analyse the impact. As a result the Labor Senators have severe
reservations that cannot be tested.
Recommendation 33
Labor Senators
recommend that the Government refer the following to an independent commission
of inquiry as a matter of priority.
The review should
canvass but should not be limited to:
- the effect of the Agreement on the
manufacturing industry generally, and in particular the Textile Clothing
and Footwear (TCF), chemicals, plastics, pharmaceuticals and automotive
industries immediately and over the next 20 years. This would include the scale of the
threat from imports, affect on employment, investment (capital and
research and development), prices, exports, skill acquisition, knowledge
transfers, brand recognition;
- whether the agreement will lead to
closer integration between US subsidiaries in Australia and their parent
companies in the US, and the potential impact of this integration;
- the means through which manufacturing,
in particular the automotive and TCF sectors, can inoculate itself from
these threats through both their own initiative and through assistance
from Government;
- the extent to which industry development
measures will be necessary for manufacturing, in particular automotive and
TCF manufacturing, and the components and cost of such a package;
- the impact of the Agreement on
manufacturing businesses in regional Australia;
- the extent to which industry development
measures will be needed for regional Australia, the components of these measures /
packages, and the cost;
- the impact of the Rules of Origins
provisions on industry, the compliance costs, and whether there are
opportunities to achieve greater uniformity through existing agreements;
and
- legislative changes required to
facilitate industry development; and
- the impact on Australian industry of the
government procurement provisions on Commonwealth, State and Territory
government purchasing policies, and regional Australia.
Recommendation 34
Given a possible
negative impact of the agreement on the Automotive Components Sector, Labor
Senators recommend that the Government develop as a matter of urgency an
Industry Development Plan to assist the sector meet future challenges. At a minimum, this package should include:
- a new 10 year industry strategy and
vision for the sector to replace the outdated Action Agenda;
- a non-means tested labour adjustment
package to assist in education, retraining, developing English language
skills, and finding new employment;
- a program that encourages greater
linkages across the automotive supply chain and clustering;
- a Research and Development (R&D)
grants program dedicated to the industry to assist it to meet emerging
markets overseas and to build on existing niche capability, that will
assist it to compete with the US; and
- a regional component to assist
restructuring in regional towns and cities - both labour adjustment and
industry restructuring.
Recommendation 35
Given the possible negative
impact of the Agreement on the Textile Clothing and Footwear sector, Labor
Senators recommend that the Government develop as a matter of urgency an
Industry Development Plan to assist the sector meet future challenges. At a minimum, this package should include:
- a new 10 year industry strategy and
vision for the sector to replace the outdated Action Agenda;
- a more generous non-means tested labour
adjustment package to assist in education, retraining, developing English
language skills, and finding new employment;
- an R&D grants program dedicated to
the industry to assist it to meet emerging markets overseas and to build
on existing niche capability; and
- a regional component to assist
restructuring in regional towns and cities - both labour adjustment and
industry restructuring.
Recommendation 36
Given the possible negative
impact of the Agreement on the Chemicals and Plastics sector Labor Senators
recommend that the Government develop as a matter of urgency an Industry Development
Plan to assist the sector meet future challenges. At a minimum, this package should include:
- a new 10 year industry strategy and
vision for the sector to replace the outdated Action Agenda;
- a more generous non-means tested labour
adjustment package to assist in education, retraining, developing English
language skills, and finding new employment;
- an R&D grants program dedicated to
the industry to assist it to meet emerging markets overseas and to build
on existing niche capability; and
- a regional component to assist
restructuring in regional towns and cities - both labour adjustment and
industry restructuring.
Recommendation 37
Labor Senators
recommend that the Government establish a Manufacturing or Industry Council,
similar to that which was established in the late 1970s and abolished by the
Government in 1996. The Council should:
- involve industry associations,
individual businesses, unions and the research sector;
- undertake an analysis of the state of
the manufacturing industry in Australia;
- have a significant research capacity;
and
- be provided with adequate resources to
represent all industry sectors, to meet regularly, to engage experts as
required, and to undertake significant research tasks.
Recommendation 38
It is recommended by
Labor Senators that the Industry Department be provided with additional
resources to:
- undertake its own analysis of the impact
of the AUSFTA on Australian industry, in particular manufacturing
industries;
- ensure it is fulfilling its function of
providing up to date statistical information on the performance of
industry sectors including investment in research and development;
- contribute, in an informed manner, to
the development of future trade agreements with other countries; and
- contribute to analysing, at least every
5 years, the impact of existing agreements on certain industry sectors.
Chapter 8 - Investment
Labor Senators
acknowledge that there is likely to be a net benefit to Australia from the increase in the threshold for
Foreign Investment Review Board (FIRB) screening of foreign investment in
Australian companies from $50 million to $800 million. Indeed all of the
economic modelling examined by the Committee assigned the majority of projected
gains to the effects of investment liberalisation.
Labor Senators are
however concerned that the implementation of AUSFTA leads to an unusual
situation in which investment from the United States is treated more generously to investment coming
from any other country. There is also a further concern that such discriminatory
treatment may breach Australia's obligations to Japan under the Treaty of Nara and to New Zealand under the Australia-New Zealand Closer
Economic Relationship.
Recommendation 39
Labor Senators
therefore recommend that the Productivity Commission examine the economic and
other impacts of extending this measure to investment from any country. It is
further recommended that if the Productivity Commission finds that there is an
overall benefit from applying FIRB liberalisation to investment from all
countries that this should then be implemented.
Chapter 9 - Services
Recommendation 40
Labor Senators
recommend that the Professional Services Working Group address immediately the
issues of mutual recognition of qualifications and the movement of natural
persons involved in service provision, and make recommendations to the Parties
for removing as rapidly as possible any outstanding impediments to these
functions. The report of the Working
Group should be presented to the Parties within twelve months of the establishment
of the Group.
Recommendation 41
That the Australian Government
press assiduously, through all available diplomatic, official and professional
channels, for the removal of all impediments to the mutual recognition of
qualifications and the movement of people involved in cross-border service
provision.
Chapter 10 - Agriculture
Labor Senators note
that generally the Agreement has resulted in a small net benefit while
acknowledging that there will be benefits to agricultural producers in some
sectors as a result of AUSFTA coming into force. However it is the position of
Labor Senators that the best hope for significant trade liberalisation still
rests in the WTO.
Labor Senators are
also dismayed that the Agreement did not provide for the principle of most-favoured-nation
(MFN) treatment to apply to trade in agricultural goods as it did for trade in
services and investment.
Recommendation 42
Labor Senators
recommend that Australia should, as a matter of high priority,
commence negotiations with the United States to obtain a commitment, through treaty or
other process, which will ensure that both Parties to the Agreement will not
give more favourable access in agricultural products to any third country
without also providing the same access to the other Party.
Recommendation 43
Labor Senators
recommend that the Commonwealth Government should invest significant effort
into maintaining the strong relationship of the Cairns Group of countries, as
the best vehicle for achieving significant agricultural liberalisation in the
next WTO round.
Senator the Hon Peter Cook, Chair
Senator
Stephen Conroy
Senator
Kerry O'Brien