NCBA, Ag Groups Urge Caution on Australian FTA

Washington, D.C. (November 12, 2002) – The National Cattlemen’s Beef Association (NCBA) and a coalition of agriculture groups are sending a letter to U.S. Trade Ambassador Robert Zoellick today urging caution as the U.S. negotiates a free trade agreement (FTA) with Australia. 

The letter, signed by five ag groups including NCBA and the National Farmer’s Union, states, “we have strong reservations about this course of action, and ask you to proceed with caution.” 

Today’s correspondence is the latest in a long line of NCBA communications with Zoellick and U.S. trade officials bemoaning an FTA with Australia, and suggesting that more efforts be focused on the current World Trade Organization (WTO) negotiations.  U.S. cattlemen maintain that U.S.-Australian agricultural trade is highly unbalanced in favor of Australia, and a bi-lateral FTA will worsen the situation. 

“We see no net benefit for our industries in an FTA with Australia. We continue to believe that the current WTO negotiations provide the best strategy for reducing trade barriers and opening up markets to U.S. agricultural products,” the letter says. 

The letter calls for bilateral negotiations to be kept on a parallel track with the multilateral negotiations at the WTO.  “This parallel track is essential to persuade our members that this Administration’s trade strategy will ultimately provide a level playing field that gains as well as gives market access.” 

But the groups warn that WTO negotiations must continue.  “If the WTO negotiations falter and Australia FTA negotiations are not postponed, we will have no choice but to break with the rest of agriculture and work to defeat the final U.S.-Australia agreement once it is sent to Congress for an up or down vote.”

“We want to continue to stay intensely involved throughout the negotiation process to ensure that our concerns are heard.  We reserve the right to give timely input into this process and want to continue the historically strong working relationship with the Administration.”

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