The Free Trade Agreement with the U.S. is simply a vehicle for further colonisation

The eminent pro-multilateralist economist, Jagdish Bhagwati, had this to say before a Congressional Committee on April 1, 2003: "The bilaterals, between us and small countries like Jordan, Singapore, Chile and Morocco, cannot be judged on the basis of trade alone. They are increasingly used to establish ‘templates’ by different lobbies."

The templates are then used as a "divide and rule" strategy against developing countries in other forums. The Jordanian FTA is used as a decoy for labour and environmental standards which are fast-tracked into other FTAs; the Chilean FTA is used as a decoy for restrictions on the host country's use of capital controls and so on.

Current negotiations with Columbia are instructive for the Australian situation. A Columbian industrialist, Emilio Sardi, has strongly criticised the process, characterised by secrecy and undue haste on the part of the Trade Ministry negotiating team, and lack of consultation with affected parties.

Sardi notes a substantial inequality in the bargaining capacity of the two teams. Australians might reflect on the capacity of the Australian bargaining team under the affable Trade Minister Mark Vaile, an ex-stock and station agent utterly out of his depth.

Sardi claims that the Columbian FTA will "impose legislation on all Columbia's economic life". He continues: "These rules could finish off the nation's food security and put at risk access to health for the majority of Colombians. If they are accepted they will have a supra-constitutional character – coercive and irreversible".

A foretaste of the future was embedded in the 1993 North American Free Trade Agreement treaty signed by Canada, the U.S. and Mexico. Chapter 11 gives companies the right to sue governments if their programs threaten the loss of potential future profits. A company suit is presided over by an unaccountable tribunal, with proceedings secret and involving no right of representation by the government concerned.

Thus, the Canadian Government has reversed an import ban, made on environmental and health grounds, on a gasoline additive made by US-based Ethyl Corporation which sued the Government under Chapter 11. The State of California has been sued by Canada-based Methanex for legislating to phase out Methanex's gasoline additive, MTBE, on similar grounds.

As of September 2001, damages claimed by foreign companies were estimated at $US13 billion, of which $US11 billion has been claimed from the Canadian Government.

Fast forward to the US Australia FTA , over which Doubting Thomases have been berated by officialdom and the media.

There has been much hand-wringing about divergent estimates of the net benefit to Australian residents of the FTA by various econometric model-builders. But this is all diversionary.

The important lessons are to be found in the 20th century history of American foreign and trade policies. The US Australian FTA is simply a vehicle for further colonisation.

The dearth of intelligence in the official pursuit and defence of the FTA is a scandal. Truly, Australia is a banana republic.