US and Australia in talks for a free trade agreement

US and Australia in talks for a free trade agreement

Australian Prime Minister John Howard and US Trade Representative Robert Zoellick announced on November 14, 2002 the initiation of formal negotiations for a free trade agreement between Australia and the US by the beginning of next year. In his written statement Robert Zoellick declared that after 90 days from his declaration the negotiations will commence between Australia and the US with this regard. Being a member of Australia-United States Free Trade Agreement (AUSTA) Business Group, BHP Steel expresses that they see a potential for a free trade agreement to facilitate improved and more consistent market access for Australian steel and manufactured products into the US markets. BHP Steel officials believe that a free trade agreement would have its benefits even in cases like the US 2002 safeguard measures as the countries like Canada and Mexico who already had free trade agreements with the US, gained significant exemptions from the tariffs implemented. BHP Steel at the moment is still subject to punitive dumping duties imposed during the mid 1990s that caused an exclusion from the US markets for coated and painted steel. A free trade agreement with the US is seen as an opportunity to provide opportunities for Australia's downstream value added products. BHP Steel operates steelworks in Australia and New Zealand and has a 50% interest in the North Star BHP Steel joint venture in Ohio, USA.