[Congressional Record Volume 150, Number 97 (Wednesday, July 14, 2004)]
[Senate]
[Page S8109]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  U.S.-AUSTRALIA FREE TRADE AGREEMENT

  Mr. SMITH. Mr. President, I rise today in support of an important 
free trade agreement that was recently signed between the United States 
and Australia. Earlier today, I was pleased to join an overwhelming 
majority of my colleagues on the Senate Finance Committee to report out 
this agreement favorably, and I am hopeful that within the next day, 
the full Senate will give its consent as well. This vote not only 
reaffirms our strong relationship with a close ally but marks an 
important step forward on our path toward economic recovery.
  Since 1994, two-way trade between the United States and Australia has 
increased 53 percent to nearly $29 billion. Australia purchases more 
goods from the United States than any other country, giving the United 
States a $9 billion bilateral goods and services trade surplus. Last 
year alone, my homestate of Oregon exported more than $257 million in 
merchandise to Australia. These exports accounted for 2.5 percent of 
the State total in 2003.
  The elimination of trade barriers between the two countries promises 
to increase these figures even more. Under the agreement, duties on 
almost all manufactured goods will be eliminated. This will result in 
first-year tariff savings of about $300 million for U.S. manufactured 
goods exporters. For Western Star--a subsidiary of DaimlerChrysler--
located in Portland, OR, this translates to savings of nearly $2 
million a year in eliminated tariffs and duties that currently average 
$4,000 per truck exported to Australia. It is estimated that U.S.-
Australia Free Trade Agreement will result in approximately $2 billion 
of new U.S. exports.
  This agreement will also open new doors for U.S. farmers. U.S. 
agricultural exports to Australia, totaling more than $700 million last 
year, will receive immediate duty-free access. This means American 
farmers will be better poised to compete in a market of over 19 million 
people. Additionally, food inspection procedures that have posed 
barriers in the past have been addressed, and substantial safeguards 
have been written into the agreement to ensure a smoothe and stable 
transition for our domestic meat and dairy industries.
  As I come here today, I realize that there are those who still have 
reservations over the prospects of expanded trade. While the benefits 
of a more liberalized trade policy are vast, I know that they have not 
been spread evenly across all sectors. I am confident, however, that 
the safeguards in this agreement will ensure a stable market for 
domestic procedures while providing new market access and real consumer 
benefits. I believe this agreement is good for the United States, and I 
urge its passage.

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