Thursday, January 05, 2006
Big surprise - US the bigger winner in US-Australia trade in the first year of the FTA.
Reports from the SMH:
Of course, it's rather difficult to gain when so many of the Australian market entry benefits are delayed (remember those provisions removing beef quota restrictions? phased in over 18 years?).'The Federal Government has blamed a stronger currency and increased competition from Asia for a disappointing first year in the new trade pact with the United States.
Figures from the Department of Foreign Affairs and Trade revealed Australia sold less to the US but bought more from the economic giant in the year after the bilateral trade agreement came into effect.
While Australia's merchandise exports to the US fell by 4.7 per cent in the 12 months to October, imports from the US rose 5.7 per cent, the data showed.'
But caution shoudl be applied here - 12 months is, as the government notes, too short a time-frame to make a judgment on whether the Agreement has had beneficial effects. It is also, I would note, too short a time frame accurately to gauge adverse effects. One can't help but wonder why the government is now touting, therefore, a twelve month review. Wouldn't it be more sensible to wait?
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