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The government must be crazy to agree to this 'free trade' agreement

By Elizabeth Thurbon and Linda Weiss - posted Tuesday, 17 February 2004


But the list of lopsided deals goes on.

Under the deal, Australia will throw open its government procurement markets to US bidders – a concession we have thus far avoided by steering clear of the WTO’s Government Procurement Agreement.

We have stayed out of this agreement because we understand the important role that government procurement has played in industry development in Australia – the government supports fledgling domestic companies by granting them procurement contracts.

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Under the proposed agreement however, not only will American firms be able to win these contracts, but Australia will be prohibited from linking any industry development initiatives to procurement at the central level.

For example, we will be unable to require US companies involved in procurement to use Australian suppliers, or to employ a certain number of Australians on their projects.

But this is not to say that Australia should shy away from freer trade in the future.

There is nothing wrong with freer trade – in fact freer trade (implemented mutually and sequenced correctly) can deliver massive opportunities for countries at all levels of development.

But this is not a free trade agreement. This is a lopsided trade and investment deal that will deliver few benefits to Australia and massive benefits to the US.

So the question must be asked – exactly whose national interest is our government advancing?

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About the Authors

Elizabeth Thurbon is a Lecturer in the School of Politics and International Relations at the University of NSW. She has published on the financial systems of East Asia and is collaborating on a large comparative project, researching government-business relations in the global economy.

Linda Weiss is Professor of Government and International Relations at the University of Sydney. Her work in the comparative and international politics of economic development has been translated into several languages. She is the author of four books, including The Myth of the Powerless State.

Other articles by these Authors

All articles by Elizabeth Thurbon
All articles by Linda Weiss
Related Links
University of Sydney
US-Australia Free Trade Agreement - Australian Perspective
US-Australia Free Trade Agreement - US Perspective
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