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Washington, D.C. - U.S. Senators Craig Thomas and Mike Enzi, and Rep. Barbara Cubin, all R-Wyo., announced today that U.S. negotiators have successfully reached a deal on the elimination of tariffs on U.S. soda ash exported to Australia. The Delegation said it fully supports the beneficial effects of this development on the U.S. soda ash industry.

"Eighty percent of U.S. soda ash production takes place in Wyoming and the industry employs 20,000 Wyoming workers directly and indirectly-particularly in the southwest section of the state. The immediate elimination of Australia's duty on U.S. soda ash will enhance U.S. exports to Australia by millions of dollars annually," the delegation said. "This is a positive development for the trona industry in Wyoming. We look forward to reviewing the entire agreement when it is reaches Capitol Hill, and evaluate its overall effect on the Wyoming economy, its industries and jobs."

In a January 20, 2004 letter sent to U.S. Trade Ambassador Robert Zoellick, the delegation strongly encouraged the Administration to negotiate the elimination of the Australia tariffs on U.S. trona. While the final agreement on the US-Australia FTA has not been signed, the delegation is pleased with the development on trona negotiations.

Soda ash is a basic chemical raw material used to make glass, detergents, and other chemical products. The U.S. soda ash industry exports nearly 40 percent of production, making soda ash the largest U.S. inorganic chemical export. In 2002, soda ash contributed a $500 million surplus to the U.S. trade balance. With a mature domestic soda ash market and projected flat growth, increased exports are essential to maintaining industry employment. Immediate duty-free access to the Australian market will give the U.S. industry a critical advantage over competitors such as China, whose producers benefit from a lower cost structure, direct and indirect state support, and preferential access to Australia as a "developing" country. Australia is a booming market for soda ash due to factors such as increased wine production and demand for glass bottles.

Senator Thomas is the International Trade Subcommittee Chairman on the Senate Finance Committee.

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