U.S., Australia sign free-trade agreement

U.S., Australia sign free-trade agreement    The U.S. and Australian governments signed a free-trade agreement that promises to eliminate and reduce tariffs and other trade barriers between the countries.
   Under the agreement, more than 99 percent of U.S. manufactured exports to Australia will become duty-free immediately upon entry into force of the agreement. Manufactured goods account for 93 percent of U.S. exports to Australia.
   “This is the most significant immediate cut in industrial tariffs ever achieved in a U.S. free-trade agreement, and manufacturers are the big winners,” said U.S. trade representative Robert. B. Zoellick in a statement Sunday.
   The Bush administration began free-trade negotiations with Australia in March 2003. The U.S.-Australia Free Trade Agreement is the first agreement concluded between the United States and a developed country since the U.S.-Canada free trade agreement in 1988.
   According to the USTR, two-way annual goods and services trade is about $28 billion. Australia buys more goods from the United States than any other country, and enjoys a bilateral goods and services trade surplus of $9 billion. Australia is a key export market for U.S.-made planes, cars and auto parts, machinery, computers and electronic products, chemicals, and wood and paper products. U.S. trade protections for American beef, sugar and dairy products remain in place under the agreement.
   Congress must now approve the U.S.-Australia free trade agreement for it to take effect.